Ordinance 3781-20 - Laserfiche WebLink

STANDARD PROCUREMENT POLICY & FEDERAL EMERGENCY CONTRACTING C. All solicitations must identify all requirements that the offerors must fulfill and all other factors to be used in evaluating bids or proposals. If using the procurement through request for proposals method, the solicitation should state if the City is reserving its right to award the contract to other than the lowest priced offeror. D. For procurements of Federal contracts that will be funded in whole or in part with FEMA grants, the solicitation must acknowledge the City's use of FEMA funding for the contract, in compliance with the terms of its financial assistance award from FEMA. Specifically, the document should indicate that FEMA is providing the funds, the Catalog of Federal Domestic Assistance Number, as applicable, and the amount provided. E. Solicitations should state the type of contract that will be awarded: i. Fixed Price—provides a firm price that remains irrespective of the contractor's actual cost of performing the work, putting the risk on the contractor, and may include an economic price adjustment, incentives, or both. ii. Cost Reimbursement—provides for payment of certain incurred costs and for the reimbursement of the contractor's reasonable, allocable, actual, and allowable costs, with an agreed-upon fee. Must include a limit to the costs that a contractor may incur, which the contractor may not exceed without the City's approval, except at its own risk. Examples include cost-plus-fixed-fee, cost-plus-incentive-fee, and cost-plus- award-fee contracts. iii. Time and Materials or Time and Equipment—cost to the City is the sum of the actual costs of materials and direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit. Certain condition precedents must be met by the City before this contract may be used. See Section 10.7 for conditional requirements. iv. Cost Plus a Percentage of Cost—the use of cost plus a percentage of cost and cost plus a percentage of construction costs methods of contracting are prohibited for Federal contracts. a. Differentiating Time and Materials and Cost-Plus Percentage of Cost Contracts. As described above, a time and materials contract provides for the payment of labor costs on the basis of fixed hourly billing rates which are specified in the contract. These hourly billing rates would include wages, indirect costs, general and administrative expense, and profit. No fee or profit is allowed except as part of the fixed billing rate for direct labor hours, such that materials are billed at cost. To include for the payment of labor costs on the basis of fixed hourly billing rates and allow the contractor to bill for actual costs other than labor(such as materials or travel), plus a percentage rate of those actual costs, would constitute a prohibited cost-plus-percentage-of-cost contract. A contractor, however, is allowed to recover overhead costs on its direct costs, such as materials or travel, if the contractor's accounting system clearly separates the overhead costs associated with those direct costs and those overhead costs are not included in the overhead pool that is applied to direct labor costs. In other words,there must be no duplicate billing for material handling overhead costs in the rates applied to labor hours. Page 31 of 57