FEDERAL TRANSIT ADMINISTRATION

BEST PRACTICES PROCUREMENT MANUAL

TABLE OF CONTENTS

1 - Purpose and Scope

1.1 Assistance, Guidance and Requirements (5/98)

1.1.1	FTA Circular 4220.1E (11/03)

1.1.2	FTA Waivers and Approvals (6/03)

1.1.3	Master Agreement (6/03)

1.1.4	Federal Acquisition Regulation (FAR) (6/03)

1.1.5	FTA Dear Colleague Letters (6/03)

1.1.6	Locating FTA Documents (6/03)

1.1.7	FTA Procurement System Reviews (PSRs) (11/03)

1.1.8	FTA HelpLine (6/03)

1.1.9	Procurement System Self-Assessment Guide (11/03)

1.2 Identifying a Contract (5/98)

1.2.1 Offer, Acceptance, Consideration (5/98)

1.2.2 Oral v. Written (5/98)

1.2.3 Mutual and Unilateral Mistakes (5/98)

1.2.4 Procurements Often Overlooked (5/98)

1.3 Applicability of Federal Requirements (5/96)

1.3.1 Recipient and Subrecipient (5/96)

1.3.2 Federal Contractual Sphere (5/96)

1.3.3 Types of Contract Actions (5/98)

1.3.3.1 Supplies, Services, Equipment and Construction (5/98)

1.3.3.2 Legal and Associated Services (5/98)

1.3.3.3 Employment Contracts (5/98)

1.3.3.4 Real Estate Contracts (11/03)

1.3.3.5 Intergovernmental Agreements, Joint Procurements,

Piggybacking/Assignments (3/04)

1.3.3.6 Subgrants (6/03)

1.3.3.7 Equipment Leases (5/98)

1.3.3.8 Revenue Contracts (1/02)

1.3.3.9 Transit Oriented Joint Development Projects (7/02)

1.3.3.10 Disposition of Surplus (5/98)

1.3.3.11 Operating Assisrance, Preventive Maintenance, CAMQ and

JARC Projects (11/03)

1.3.3.12 E-Commerce (6/03)

2 - Procurement Planning & Organization

2.1 Organization of Procurement Functions (5/96)

2.1.1 Scope of Responsibility (5/96)

2.1.2 Autonomy (5/96)

2.2 Long Term Planning (5/96)

2.2.1 Contract Period of Performance Limitation (6/03)

2.2.2 Multi-year vs. Multiple-Year Contracting (7/02)

2.3 Annual Planning (5/96)

2.3.1 Sources and Contents (5/96)

2.3.2 Independent Grantee Cost Estimate (4/05)

2.4 Source Selection Plan (5/96)

2.4.1 File Documentation (5/96)

2.4.2 Full and Open Competition (5/96)

2.4.2.1 Full and Open Competition Principle (5/96)

2.4.2.2 Restraints on Competition (5/96)

2.4.2.2.1 Brand Names (6/03)

2.4.2.2.2 Written Standards of Conduct and Conflicts of

Interest: Personal and Organizational (6/03)

2.4.2.2.3 Geographic Restrictions (6/03)

2.4.2.2.4 Prequalification (5/98)

2.4.3 Fixed Price v. Cost Reimbursement (5/98)

2.4.3.1 Fixed Price Contracts (4/05)

2.4.3.2 Cost Reimbursement Contracts (6/03)

2.4.3.3 Time and Materials Contracts (5/98)

2.4.3.4 Labor Hour Contacts (5/98)

2.4.3.5 Cost Plus Percentage of Cost Contracts (6/03)

2.4.4 Payments (5/98)

2.4.4.1 Payment of the Price (5/98)

2.4.4.2 Advanced Payments (6/03)

2.4.4.3 Progress Payments (4/05)

2.4.4.4 Withholding and Final Payment (5/98)

2.4.5 Indefinite Delivery Contracts (10/99)

2.4.5.1 Definite-quantity Contracts (10/99)

2.4.5.2 Requirement Contracts (6/03)

2.4.5.3 Indefinite-quantity Contracts (6/03)

3 - Specifications

3.0 Overview (6/03)

3.1 Types Of Specifications and Risks (1/98)

3.1.1 Design Specifications (1/98)

3.1.2 Performance Specifications (1/98)

3.1.3 Brand Name or Equal (1/98)

3.2 Using Consultants to Prepare Specifications (1/98)

3.3 Specifications for Equipment and Supplies (1/98)

3.4 Specifications for Construction (1/98)

3.5 Statements of Work for Services (1/98)

4 - Methods of Solicitation and Selection

4.0 Overview (5/96)

4.1 Micro-Purchases (6/03)

4.1.1 Purchase Cards BART (6/98)

4.1.2 Consolidation of Micro-Purchases (11/03)

4.2 Small Purchases (5/96)

4.3 Competitive Procurement Methods (5/96)

4.3.1 Overview -- Sealed Bids v. Competitive Proposals (5/96)

4.3.2 Common Elements of Solicitation Process (5/96)

4.3.2.1 Advertising and Publicizing Solicitation (5/96)

4.3.2.2 Solicitation Mailing List (5/96)

4.3.2.3 Solicitation (5/96)

4.3.2.4 Pre-Bid and Pre-Proposal Conferences (11/03)

4.3.2.5 Amendment of Solicitations (5/96)

4.3.3 Common Elements of Offers (5/96)

4.3.3.1 Receipt of Offers (5/96)

4.3.3.2 Federally Required Submissions with Offers (5/96)

4.3.3.2.1	Certification Regarding Debarment, Suspension, and Other Responsibility Matters (5/96)

4.3.3.2.2 Buy America Certification (11/03)

4.3.3.2.3 Lobbying Certification (6/03)

4.3.3.3 Other Submissions (5/96)

4.3.3.3.1 Acknowledgment of Solicitation Addenda (5/96)

4.3.3.3.2 Bid Guaranty (5/96)

4.4 Sealed Bids (Invitation for Bids) (5/96)

4.4.0 Overview (5/96)

4.4.1 Solicitation (5/96)

4.4.2 Bid Opening (5/96)

4.4.3 Single Bid (3/04)

4.4.4 Responsive Bidder (5/96)

4.4.5 Bid Mistakes (5/96)

4.4.6 Bid Withdrawal (5/96)

4.5 Competitive Proposals (Request for Proposals) (5/96)

4.5.1 Solicitation & Receipt of Proposals (5/96)

4.5.2 Evaluation of Proposals (11/03)

4.5.3 Competitive Range (5/96)

4.5.4 Discussions and Clarifications (5/96)

4.5.5 Additional Submissions (5/96)

4.5.5.1 Request for Revised Proposals (5/96)

4.5.5.2 Request for Best and Final Offer (5/96)

4.5.6 Award Based on Initial Proposals (5/96)

4.5.7 Withdrawal of Proposals (5/96)

4.5.8 Debriefing Unsuccessful Offerors (5/96)

4.6 Non-Competitive (Sole Source) Proposals (5/96)

4.6.1 Justification for Use (5/96)

4.6.2 Negotiation of Contract (5/96)

4.6.3 Associated Capital Maintenance Item (5/96)

4.7 Special Procurement Methods (5/96)

4.7.1 Multi-Step Procurements (5/96)

4.7.2 Governmental Prices and Contracts (5/96)

4.7.2.1	Procurements from General Services Administration

Schedules (5/96)

4.7.2.2 State and Local Schedules (6/03)

4.7.2.3 State versus FTA Requirements (5/96)

4.7.3	E-Commerce: Reverse Auctions (6/03)

5 - Award of Contracts

5.0 Overview (1/98)

5.1 Responsibility of Contractor (5/98)

5.1.1 General Standards of Responsibility (5/98)

5.1.2 Special Standards of Responsibility (5/98)

5.1.3 Obtaining Information for Determination of Responsibility (5/98)

5.1.4 Determination and Documentation (5/98)

5.2 Cost and Price Analysis (6/03)

5.3 Award Procedures (5/98)

5.3.1 Public Announcements of Contract Awards (5/98)

5.3.2 Debriefing of Offerors (4/05)

5.4 Documentation of Procurement Action (5/98)

5.4.1 Sealed Bid Procurements (5/98)

5.4.1.1 Abstract of Bids (5/98)

5.4.1.2 Documentation of Award Decision (5/98)

5.4.2 Negotiated Procurements (5/98)

5.4.2.1 File Documentation of Selection Decision (5/98)

5.4.2.2 Pre-Negotiation Plan (5/98)

5.4.2.3 Memorandum of Negotiations (5/98)

6 - Procurement Object Types: Special Considerations

6.1 Construction (10/98)

6.1.1 The Traditional Construction Process Design/Bid/Build (10/98)

6.1.2 Construction Management ("CM") (10/98)

6.1.3 "Fast Tracking"-- Phased Design, Award and Construction (10/98)

6.1.4 "Turnkey" -- Design/Build Contracting (10/98)

6.1.5 Value Engineering (6/03)

6.1.6 Facilities Maintenance -- Job Order Contracts (10/98)

6.1.7 Partnering (4/05)

6.1 8 Competitive Proposals vs. Sealed Bids (10/98)

6.1.9 Incentives to Reduce Project Completion Time (10/98)

6.1.10 Special Contract Provisions (10/98)

6.2 Equipment and Supplies (2/00)

6.2.1 Lease/Maintenance of Vehicles (2/00)

6.2.1.1 Lease of Heavy Equipment with Operators (2/00)

6.3 Rolling Stock (10/98)

6.3.1 Buses (10/98)

6.3.1.1 Competitive Proposals vs. Sealed Bids (10/98)

6.3.1.2 APTA Standard Bus Procurement Guidelines (10/98)

6.3.2 Rail Cars (10/98)

6.3.3 Joint Procurements of Rolling Stock and "Piggybacking" (6/03)

6.3.4 Pre-Award and Post Delivery Reviews for Buy America Act

Compliance (10/00)

6.3.5 Warranties (6/03)

6.4 Professional Services (5/96)

6.5 Architect-Engineering Services (3/04)

6.6 Insurance (11/03)

6.7 Artwork (6/03)

7 - Disadvantaged Business Enterprise

7.1 Comparison of Old vs. New DBE Rules (6/99)

7.1.1 Applicability of DBE Rules to Grantee Programs (2/00)

7.1.2 Definition of Terms (2/00)

7.2 Administrative Requirements (6/99)

7.2.1 Who Must Have a DBE Program (6/99)

7.2.2 DBE Liaison Officer (6/99)

7.2.3 Required Efforts on Behalf of DBE Financial Institutions (6/99)

7.2.4 Prompt Payment Mechanisms (6/99)

7.2.5 DBE Directory (6/99)

7.2.6 Bidders List (6/99)

7.2.7 Monitoring Contractors' Performance (2/00)

7.3 Goals for DBE Participation (6/99)

7.3.1 DOT National Goal of 10% (6/99)

7.3.2 Use of Quotas and Set-Asides (6/99)

7.3.3 Establishing Overall Goals (2/00)

7.3.4 Establishing Overall Goals for Transit Vehicle Manufacturers (6/99)

7.3.5 Means of Meeting Overall Goals (6/99)

7.3.5.1 Race-Neutral Means (6/99)

7.3.5.2 Using Contract Goals (6/99)

7.3.5.3 Evaluation of Contractor Proposals for DBE Participation (2/00)

7.3.5.4 Good Faith Efforts to Meet Contract Goals (6/99)

7.3.5.5 Counting DBE Participation toward the Goal (6/99)

7.4 Certification: Standards and Procedures (2/00)

7.5 Exemptions and Waivers (6/99)

8 - Contract Clauses

8.1 Federal Requirements (1/98)

8.1.1 Sources of Model Federal Clauses and Applicability (1/98)

8.1.2 Davis Bacon Act (1/98)

8.1.3 Cargo Preferences (1/98)

8.1.4 Buy America (6/03)

8.1.5 Fly America (1/98)

8.2 Surety Bonds (4/05)

8.2.1 Performance Bonds (4/05)

8.2.2 Options (1/98)

8.2.3 Liquidated Damages (1/98)

8.2.3.1 Relationship with Default Termination (1/98)

8.2.4 Intellectual Property Rights (1/98)

8.2.4.1 Disclosure of Trade Secrets (1/98)

8.2.4.2 Contract Work Products, Patents and Copyrights (1/98)

8.2.5 Termination (1/98)

8.2.5.1 Termination for Convenience (1/98)

8.2.5.2 Partial Terminations (1/98)

8.2.5.3 Termination for Default (1/98)

9 - Contract Administration

9.1 Documentation of Contract Administration (1/96)

9.2 Changes (2/99)

9.2.1 Contract Scope and Cardinal Changes (10/99)

9.2.2 Cost/Price Analysis of Changes (2/99)

9.2.3 Construction Changes (2/99)

9.2.3.1 Differing Site Conditions (2/99)

9.2.3.2 Field Change Orders (2/99)

9.2.3.3 Pricing of Construction Changes (2/99)

9.2.3.4 Variations in Estimated Quantities (2/99)

9.2.3.5 Delays (2/99)

9.2.3.6 Acceleration (2/99)

9.3 Improving Vendor Delivery Performance (10/00)

9.4 Approval of Subcontractors (11/03)

10 - Closeout

10.1 Closeout Procedures (7/99)

10.2 Audits (7/99)

10.3 Record Retention (4/05)

11 - Disputes

11.1 Protests (6/03)

11.2 Claims, Grievances and Other Disputes with Contractors (6/99)

Appendix A - Governing Documents

A.1 Federally Required and Other Model Contract Clauses

A.2 Dear Colleague Letters

Appendix B - Examples

B.1 Example Evaluation Process

B.2 Specification/Scope of Service Guide

B.3 Liquidated Damages Checklist

B.4 Bid Abstract Form

B.5 BART Purchase Card System

B.6 Prenegotiation Position

B.7 Offer and Acceptance Form

B.8 Award/Contract Form

B.9 Memorandum of Negotiations

B.10 Disclosure of Conflicts of Interest

B.11 Bidder's Qualification Questionnaire

B.12 Negotiation Memorandum Sample Format

B.13 Warranty & Guarantee Register

B.14 Contract Closeout Check List

B.15 Request for Proposal

B.16 Piggybacking Worksheet

B.17 Example of Statement of Qualification of Subcontractor

B.18 Hiawatha Line Public Art and Design Budget

B.19 Mandatory Procurement Standards Worksheet

B.20 Independent Cost Estimate (ICE) Form

Appendix C - Reserved

Appendix D - Annotated FTA Circular 4220.1E. For a copy of this Circular, go to www.ftahelpline.com/FTA_C4220_1E.doc.