HomeMy WebLinkAboutHEARING re Bidding and Procurement - PRESENTATIONHearing on Ordinance Repealing and Replacing Chapter 3.55 JCC Bidding and Purchasing Procedures
December 15, 2025 12/15/20251
Agenda
•Judy Shepard, Finance Manager
Introduction and SAO guidance
•Amanda Christofferson, Grant Administrator
Revisions re procurement requirements for federal funding/awards
•Monte Reinders, Public Works Director
Updates to SAT threshold, small works roster & apprentice utilization requirements
Any lingering clarification 12/15/20252
Purpose for changes to code:
•Washington State Auditor’s Office has requested that chapter 3.55 JCC be amended to address procurements involving federal funds.
Staff discussed changes in 2023 but no revisions to the code were made at that time.
SAO is now requesting immediate action to be in compliance.
•SB 5268, effective July 1, 2024, repealed RCW 39.04.155, and adopted the small works procedures set out in RCW 39.04.152, expanding the use of small works rosters, increasing the previous public works threshold of $50,000 to a new threshold of $150,000, and allowing direct contracting under certain conditions to increase the utilization of small businesses, as authorized by County policy.
•HB 1050, effective July 1, 2024, expanded apprentice utilization requirements (AURs) in RCW 39.04.320 and made them applicable to municipalities, including Jefferson County.
•Ordinance will not need to be changed due to future amendments to federal and state procurement laws. 12/15/20253
Procurement Updates
Involving Federal Funding 12/15/20254
2 CFR 200 “Uniform Guidance”
•Administrative requirements and cost principles are effective for federal awards issued on or after December 26, 2014.
•If the contract is funded in whole or in part by federal funds, then the most restrictive of the local, state, or federal procurement requirements must be followed.
•Federal purchasing and bidding procedures may supersede state or local law.
•If federal funds are utilized, the County shall review and comply with current federal purchasing and bidding procedures for each contract being considered.12/15/20255
Uniform Guidance Sections
Definitions referenced
Procurement Sections: §200.317–.327 12/15/20256
Requirements to highlight
2 CFR §200.317–.327 identify the regulations and standards.Specific sections that apply are:
(a)200.318 –General procurement standards
(b)200.319 –Competition
(c)200.320 –Methods of procurement to be followed
(d)200.321 –Contracting with small and minority businesses,women’s business enterprises,and labor surplus area firms
(e)200.324 –Contract cost and price
(f)Appendix XI –Compliance Supplement 12/15/20257
Federal Procurement Procedures:Informal procurement for small purchases §200.320(a)
•Micro-purchases §200.320(a)(1)
Threshold:
$15,000 or less for purchases/services
$2,000 or less for public works
Award without soliciting competitive price or rate quotations if the price is reasonable based on research, experience, purchase history or other information.
The County must maintain documents to support its conclusion, must be distributed equally among suppliers, and purchase cards may be used ats methods of payment.
•Simplified Acquisition Threshold (SAT) §200.320(a)(2)
The recipient or subrecipient is responsible for determining an appropriate simplified acquisition threshold, which is less than or equal to the dollar value established in the Federal Acquisition Regulations (FAR) (currently $350,000), based on internal controls, an evaluation of risk, and its documented procurement procedures.
This threshold must never exceed the dollar value established in the FAR.
Recipients and subrecipients adopt small purchase procedures to expedite the purchase of items at or below the simplified acquisition threshold. 12/15/20258
Federal Procurement Procedures:Formal procurement §200.320(b)
•Applicable to procurement transactions over SAT ($350,000):
Sealed bids §200.320(b)(1): Preferred method for procuring construction services.
Competitive proposals §200.320(b)(2): When conditions are not appropriate for sealed bids.12/15/20259
Exceptions: Noncompetitive procurement §200.320(c)
Only if one of the following circumstances applies:
(1)The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold,
(2)A single source can only fulfill the procurement transaction,
(3)The public exigency or emergency for the requirement will not permit a delay from providing public notice of a competitive solicitation,
(4)A request has been made in writing to use a noncompetitive procurement method and the awarding County provides written approval, or
(5)After soliciting several sources, competition is determined to be inadequate.12/15/202510
Procurement Updates
Public Works Contracts 12/15/202511
Small Works Roster
•Pre-established list of responsible contractors interested in competing for small public works projects
•General requirements and process provided in RCW 39.04.151-.152
•The County by resolution or ordinance:(1) creates their own rosters, or(2) use a friend’s roster (MRSC, another agency)
•Advertise existence of roster once a year
•Contractors can be added to roster at any time
•Use for projects under $350,000 (project estimate does not include sales tax)
•County notifies all contractors from the appropriate roster to bid 12/15/202512
Optional Direct Contracting for Public Works Projects <$150,000
•County may direct contract through negotiation with a contractor from the appropriate roster
•County must rotate and not select the same firm repeatedly
•Small business preference: “Six or more rule”:
No small business Contract with any from the appropriate roster
6 or more small businesses Contract with small business from the appropriate roster
5 or less small businesses Contract with any from the appropriate roster
•County must notify small, minority, women, or veteran-owned businesses on the applicable roster when direct contracting is utilized
•Adoption of a County policy for use of direct contracting required. Not recommending at this time. 12/15/202513
Performance & Payment Bonds/ Retainage Exceptions >$5,000
RCW 39.04.152(5): Small works roster projects less than $5,000, the County may waive the requirement for retainage set forth in chapter 60.28 RCW and payment and performance bonds set forth in chapter 39.08 RCW, thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, material persons, suppliers, and taxes, increases, and penalties.
•Retainage RCW 60.28.011: Agencies withhold up to 5% of the value of a public improvement contract, not including sales tax, until the project is completed, and the contract is accepted.
•Performance & Payment Bonds: If contractor defaults on a project or County terminates contract, the surety company may fulfill obligations by providing financial backing to the defaulting contractor to finish the work, Hiring a new contractor, or paying the County for the costs to complete the project. 12/15/202514
Apprenticeship Utilization Requirements (AURs) RCW 39.04.320
•Requirement for apprentices to contribute a minimum of 15% of total labor hours on Public works projects done by the County estimated to cost $2 million or more.
•HB 1050-Effective July 1, 2024 made this requirement applicable to counties.
•Phased in approach:
July 1, 2024-June 30, 2026: Applies to public works contracts estimated to cost more than $2 million.
July 1, 2026-June 30, 2028: Applies to public works contracts estimated to cost more than $1.5 million.
After July 1, 2028: Applies to public works contracts estimated to cost more than $1 million.
•RCW 39.04.320 (4)(b) “Within existing resources, awarding agencies and municipalities are responsible for monitoring apprenticeship utilization hours by contractor.”12/15/202515
Questions?12/15/202516