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2005-780-Resolution No. 2005-051 Recorded 6/7/2005COUNTY TES FIC NANCYUBLANKENSHIP,FCOUNTY CLERKDS PEGAL VIEED COMMISSIONERS' JOURNAL 06/01/2005 03;34,41 PM COUNSEL I III III III VIIIIIIIIIIIII) 5-78 For Recording Stamp Only BEFORE THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT OF DESCHUTES COUNTY, OREGON A Resolution Adopting Class Special Procurement and Exemptions to the Public Contracting Rules for * RESOLUTION NO. 2005-051 the Sunriver Service District WHEREAS, the Sunriver Service District ("District") was created on June 12, 2002 by Order No. 2002- 085 of the Deschutes County Commissioners; and WHEREAS, the Deschutes County Commissioners, acting as the Governing Body of the District, serves as the District's Local Contract Review Board ("LCRB"); and WHEREAS, the Governing Body, on March 30, 2005, in Resolution No. 2005-039, did adopt public contracting rules and procedures for the District in accordance with the Oregon Public Contracting Code ("Code"); and WHEREAS, the adopted public contracting rules and procedures require that in order to adopt Class Special Procurements and Exemptions it is necessary for the District to publish notice and provide an opportunity for comment on the proposed findings supporting such Class Special Procurements and Exemptions; and WHEREAS, On April 27, 2005 the District published notice in the Bend Bulletin and the Daily Journal of Commerce of its intention to approve findings in support of, and adopt certain Class Special Procurements and Exemptions, which have been made available for review and comment; and WHEREAS, the Governing Body has provided an opportunity for comment and considered such comments as were received relative to the proposed findings in support of Class Special Procurements and Exemptions; and WHEREAS, the Governing Body now desires to adopt the Class Special Procurements and Exemptions; now therefore BE IT RESOLVED BY THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT, ACTING AS THE LCRB, as follows: Section 1. That the Class Special Procurements and Exemptions set forth in Exhibit A attached hereto and by this reference incorporated herein, are hereby adopted and added to the District's public contracting rules. Section 2. That the Class Special Procurements and Exemptions are supported by findings, set forth in Exhibit B, attached hereto and by this reference incorporated herein. PAGE 1 of 2 RESOLUTION NO. 2005-051 Section 3. That if any portion of this Resolution is deemed invalid by a court of competent jurisdiction, the invalid portion shall be severed from the Resolution and the rest shall remain in full force and effect. DATED this -lday o4 2005. ATTEST: Recording Secretary BOARD OF COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ACTING AS THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT TOM DEWOLF, CHAI ,Y, COWISSIONER %011 -0 -s -t -f R. LUKE, COMMISSIONER EXHIBIT A CLASS SPECIAL PROCUREMENTS AND EXEMPTIONS Class Special Procurements: A. The District may award a public contract under a Class Special Procurement pursuant to the requirements of ORS 27913.085. Such procurements allow the District to enter into one or more contracts over time without following the requirements of competitive sealed bidding, competitive sealed proposals, or small or intermediate procurements. B. The LCRB declares the following as class special procurements. Unless otherwise specified in a particular special procurement rule, such contracts may be awarded in any manner that the Chief Procurement Officer deems appropriate to the District's needs, including by direct appointment or otherwise. Except as otherwise provided, the Chief Procurement Officer shall make a record of the method of award. 1. Brand Names or Products, "or Equal," Single Seller and Sole Source. The District may enter into a public contract for the procurement of Brand Name "or Equal" Products subject to the requirements of this rule. (A) Specifications. Solicitation specifications for public contracts must not expressly or implicitly require any product of any particular manufacturer or seller except as expressly authorized in Subsections (i) and (ii) of this Rule. (i) "Or Equal" Specification. The District may specify a particular brand name, make or product suffixed by "or equal", "or approved equal", "or equivalent", "or approved equivalent", or similar language if there is no other practical method of specification. (ii) Specifying a Particular Make or Product. The District may specify a brand name, make, or product without an "or equal" or equivalent suffix if there is no other practical method of specification, after documenting the procurement file with the following information: (I) A brief description of the solicitation(s) to be covered including volume of contemplated future purchases; (II) The brand name, mark, or product to be specified; and (III) The reasons for seeking this procurement method, which must include at least one of the following findings in the procurement file: (aa) It is unlikely that Specification of the brand name, mark or product will encourage favoritism in the award of the public contracts or substantially diminish competition; or Page 1 Exhibit A to Resolution No. 2003-051 (bb) Specification of the brand name, mark or product would result in substantial cost savings to the District; or (cc) Efficient utilization of existing equipment or supplies requires the acquisition of compatible equipment or supplies. (B) Public Notice. The District will make reasonable effort to notify all known suppliers of the specified product and invite such suppliers to submit competitive bids or proposals; or document the procurement file with findings of current market research to support the determination that the product is available from only one seller. This requirement may be satisfied by electronically posting a notice for a reasonable period of time, if the LCRB determines that electronic notice is likely to be cost-effective, or by documenting direct contact with such suppliers in the Procurement file. (C) Purchasing From Sole Source, Single Seller. The District may purchase a particular product or service available from only one source if the District meets the Requirements of Subsection (A) and (B) of this rule and a Sole - Source Procurement pursuant to ORS 27913.275. Prior to purchase, the District must document its findings of current market research to support the determination that the product or service is available from only one seller or source and place this information in the procurement file. The District's findings must also include: (i) A brief description of the contract or contracts to be covered including volume of contemplated future purchases; (ii) Description of the product or service to be purchased; and (iii) The reasons the District is seeking this procurement method, which must include at least the following: (I) Efficient utilization of existing Goods or Services requires the acquisition of compatible Goods or Services; or (II) The required product is data processing equipment which will be used for research where there are requirements for exchange of software and data with other research establishments; or (III) The particular product is for use in a pilot or an experimental project. (D) Single Manufacturer, Multiple Sellers. The District may specify a product or service available from only one manufacturer, but available through Page 2 Exhibit A to Resolution No. 2003-051 multiple sellers, if the Requirements of Subsection (A) and (B) and the following are met: (i) If the total purchase is $5,000 or more but does not exceed $150,000 competitive quotes must be obtained and retained in the Procurement File pursuant to the rules governing Intermediate Procurements; (ii) If the purchase exceeds $150,000, the acquisition shall be made through competitive procurement unless a contract -specific special procurement is authorized by the LCRB. (E) Single Manufacturer, Multiple Purchases. If the District intends to make several purchases of the product of a particular manufacturer or seller for a period not to exceed five (5) years, the District must so state in the Solicitation file, the Solicitation Document, if any, and the public notice described in Subsection (B) of this Rule. Such documentation and public notice constitute sufficient notice as to subsequent purchases. If the total purchase amount is estimated to exceed $150,000, this must be stated in the advertisement for Bids or Proposals. (F) Competitive Solicitations. If the District competitively solicits, it must comply with the Rules for that method of Solicitation pursuant to ORS 279B.055 through 27913.075. 2. Advertising Contracts, Purchase of. The Chief Procurement Officer, acting on behalf of the District, may purchase media advertising, regardless of dollar value, without competitive bidding. 3. Advertising Contracts, Sale of. The Chief Procurement Officer, acting on behalf of the District, may authorize the sale of advertising in district publications and for district activities, regardless of dollar value, without competitive bidding. 4. Equipment Repair and Overhaul. The Chief Procurement Officer, acting on behalf of the District, may enter into a Public Contract for equipment repair or overhaul without competitive bidding, subject to the following conditions: (a) Conditions. (A) Service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing; or (B) Service or parts required are for sophisticated equipment for which specially trained personnel are required and such personnel are available from only one source; and (C) The District purchases within the limits and pursuant to the methods in (5)(b) of this Rule. Page 3 Exhibit A to Resolution No. 2003-051 (b) Process and Criteria. The Chief Procurement Officer will use competitive methods wherever possible to achieve best value and must document in the Procurement File the reasons why a competitive process was deemed to be impractical. If the anticipated purchase is $5,000 or more but less than $150,000 competitive quotes must be obtained and retained in the Procurement File pursuant to the rules governing Intermediate Procurements. 5. Purchase of Used Personal Property. The District may directly purchase used personal property and equipment if such property is suitable for the District's needs and can be purchased for a lower cost than substantially similar new property. For the purpose of this rule, the cost of used property shall be based upon the life -cycle cost of the property over the period for which the property will be used by the District. 6. Information Technology Contracts. The Chief Procurement Officer, acting on behalf of the District, shall comply with the requirements of this rule for the Procurement of information technology Contracts. Competitive methods will be used wherever possible to achieve best value. The reasons why a competitive process was deemed to be impractical must be documented in the Procurement file. (A) If the anticipated purchase is $5,000 or more but less than $150,000 competitive quotes will be obtained and retained in the Procurement File pursuant to the rules governing Intermediate Procurements. (B) If the anticipated purchase exceeds $150,000, the District will solicit written proposals in accordance with District rules governing requests for proposals. 7. Telecommunications Systems — Hardware and Software Contracts. The Chief Procurement Officer, acting on behalf of the District, shall comply with the requirements of this rule for the procurement of telecommunications systems contracts. Competitive methods will be used wherever possible to achieve best value. The reasons why a competitive process was deemed to be impractical must be documented in the Procurement file. (A) If the anticipated purchase is $5,000 or more but less than $150,000 competitive quotes will be obtained and retained in the Procurement File pursuant to the rules governing Intermediate Procurements. (B) If the anticipated purchase exceeds $150,000, the District will solicit written proposals in accordance with District rules governing requests for proposals. 8. Telecommunications Services. The Chief Procurement Officer, acting on behalf of the District, may enter into a Public Contract for telecommunications services without competitive bidding, if no competition exists within the area for the service required. To determine whether competition exists, the Chief Procurement Officer will consider the following factors: Page 4 Exhibit A to Resolution No. 2003-051 (A) Determination of alternative providers available within the geographic and service market area; (B) The extent to which alternative services offered are comparable or substitutable in technology, service provided and performance; and (C) The extent to which alternative providers can respond to the District's interest in consistency and continuity of services throughout its service area, volume discounts, equitable service for all users, centralized management and limiting District liability. (D) The District will use competitive methods wherever possible to achieve best value. If competition exists as defined above and the anticipated purchase is $5,000 or more but less than $150,000 competitive quotes will be obtained and retained in the procurement file pursuant to the rules governing Intermediate Procurements. If the anticipated purchase exceeds $150,000, the District will solicit written proposals in accordance with District rules governing requests for proposals. 9. Copyrighted and Library Materials. The District may purchase copyrighted materials where there is only one known supplier available for such goods. This includes, but is not limited to, new books, periodicals, curriculum materials, reference materials, audio and visual media, and non-mass marketed software from a particular publisher or its designated distributor. 10. Requirements Contracts. The Chief Procurement Officer, acting on behalf of the District, may establish requirements contracts for the purposes of minimizing paper work, achieving continuity of products, securing a source of supply, reducing inventory, combining District requirements for volume discounts, standardization among District departments and reducing lead time for ordering. Requirements contracts may be utilized in accordance with the following: (A) The contract must have originally been let by competitive procurement procedures; (B) District departments may purchase the goods or services from the awarded contractor without first undertaking additional competitive procurement procedures; and (C) The term of any District requirements contract, including renewals, will not exceed five years unless otherwise exempted pursuant to ORS 27913.085. 11. Purchases under Federal Contracts. When the price of goods and services has been established by a contract of the federal government pursuant to a federal contract award, the District may purchase the goods and services in accordance with the federal contract without subsequent competitive bidding. In exercising its authority under this exemption, the district shall obtain and document permission from the appropriate federal agency to purchase under the federal contract and document the cost savings to be gained for the District from the Page 5 Exhibit A to Resolution No. 2003-051 anticipated purchases under the federal contract. The District shall not contract pursuant to this rule in the absence of a cost savings to the District by using this method. 12. Hazardous Material Removal and Cleanup. The District may directly acquire services to remove or clean up hazardous material or oil from any vendor when ordered to do so by the Oregon Department of Environmental Quality pursuant to its authority under ORS Chapter 466. In doing so, the following conditions apply: (A) To the extent reasonable under the circumstances, the District will encourage competition by attempting to obtain informal price quotations or proposals from potential suppliers of goods and services. (B) The District department responsible for managing or coordinating the clean-up shall prepare a written description of the circumstances that require it and a copy of the DEQ order for the cleanup to the Chief Procurement Officer, together with a request for contract authorization; (C) The District department responsible for managing or coordinating the clean-up shall record whether there was time for competition, and, if so, the measures taken to encourage competition, the amount of the price quotations obtained, if any, and the reason for selecting the contractor to whom award is made; and (D) The timeline for cleanup does not permit use of intermediate procurement procedures. 13. Tag -on Contracts. The District may enter into a contract for the purchase of goods or services, other than public improvements or personal services, from an entity that is selling substantially identical goods or services by contract with another Oregon public agency (the "Originating Agency") if: (A) The Originating Agency selected the contractor through a competitive process that complied with the District's public contracting rules; (B) The District contract is executed not later than two years after the date of the contract with the Originating Agency; and (C) The contract allows the District to purchase the goods and services at the unit prices or rates and under the same conditions as set forth in the Originating Agency's contract, subject only to price adjustments for minor modifications to customize the goods and services to the District's specifications and modifications to conform timing and place of performance to the District's requirements. For the purposes of this rule, a modification of the primary purpose or function of the goods or services Page 6 Exhibit A to Resolution No. 2003-051 shall not result in a unit price or rate adjustment of more than five percent of the unit pricing or rates set forth in the Originating Agency's contract. 14. Insurance, Employee Benefit and Other. The District may purchase employee benefit insurance and other insurance without competitive bidding, regardless of dollar amount, subject to the terms of any collective bargaining agreement between the District and represented employee groups. 15. Disposal of Abandoned, Seized or Non -owned Property. Contracts or arrangements for the sale or other disposal of abandoned, seized or other personal property not owned by the District at the time the District obtains possession are not subject to competitive procurement procedures. The Chief Procurement Officer may select any method of disposal including, but not limited to, donation to a charitable organization. 16. Disposal of Surplus Property. (A) Surplus property may be disposed of by any of the following methods upon a determination by the Chief Procurement Officer that the method of disposal is in the best interests of the District. Factors that may be considered by the Chief Procurement Officer include costs of sale, administrative costs, and public benefits to the District. The Chief Procurement Officer shall maintain a record of the reason for the disposal method selected, and the manner of disposal, including the name of the person to whom the surplus property was transferred. 1. Governments. Without competition, by transfer or sale to another District department or public agency. 2. Auction. By publicly advertised auction to the highest bidder. 3. Bids. By publicly advertised invitation to bid. 4. Liquidation Sale. By liquidation sale using a commercially recognized third -party liquidator selected in accordance with rules for the award of personal services contracts. 5. Fixed -Price Sale. The Chief Procurement Officer may establish a selling price based upon an independent appraisal or published schedule of values generally accepted by the insurance industry, schedule and advertise a sale date, and sell to the first buyer meeting the sales terms. 6. Trade -In. By trade-in, in conjunction with acquisition of other price -based items under a competitive solicitation. The solicitation shall require the offer to state the total value assigned to the surplus property to be traded. 7. Donation. By donation to any organization operating within or providing a service to residents in the District's geographic area which is Page 7 Exhibit A to Resolution No. 2003-051 recognized by the Internal Revenue Service as an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended. (B) Disposal of Property with Minimal Value. Surplus property which has a value of less than $500, or for which the costs of sale are likely to exceed sale proceeds may be disposed of by any means determined to be cost- effective, including by disposal as waste. The District official making the disposal shall make a record of the value of the item and the manner of disposal. (C) Restriction on Sale to District Employees. District employees shall not be restricted from competing, as members of the public, for the purchase of publicly -sold surplus property, but shall not be permitted to offer to purchase property to be sold to the first qualifying bidder until at least three days after the first date on which notice of the sale is first publicly advertised. 17. Temporary Extensions or Renewals. The District may enter into contracts for a single period of one year or less, for the temporary extension or renewal of an expiring and non-renewable, or recently expired, contract, other than a contract for public improvements, without competitive bidding. 18. Exempt Personal Services Contracts. In addition to contracts designated in the District's public contracting rules, contracts for accounting services, contracts between the District and the Sunriver Owner's Association ("SROA") to provide administrative and consulting services, and contracts for third -party review of agreements between the District and SROA are exempt from competitive procurement. The Chief Procurement Officer may award an exempt personal services contract by any method that the Chief Procurement Officer determines is in the best interests of the District, including by direct appointment. Exemptions: A. The District may award a public improvement contract under an exemption to competitive procurement pursuant to the requirements of ORS 279C.335. Such procurements allow the District to enter into one or more contracts over time without following the requirements of competitive sealed bidding, competitive sealed proposals, or small or intermediate procurements. B. The LCRB declares the following public improvement contracts to be exempt from competitive bidding. Unless otherwise specified in a particular exemption rule, such contracts may be awarded in any manner that the Chief Procurement Officer deems appropriate to the District's needs, including by direct appointment or otherwise. Except as otherwise provided, the Chief Procurement Officer shall make a record of the method of award. Page 8 Exhibit A to Resolution No. 2003-051 1. Use of Existing Contractors. When a public improvement is in need of minor alteration, repair or maintenance at or near the site of work being performed by another District contractor, the District may hire that contractor to perform the work, provided: (A) The contractor was hired through a selection process permitted by the District's public contracting rules; (B) The Chief Procurement Officer first obtains a price quotation for the additional work from the contractor that is competitive and reasonable; (C) The total cost of the proposed work and the original work will not exceed the Bureau of Labor and Industries' threshold of $25,000; and (D) The original contract is amended to reflect the new work and is approved by the Chief Procurement Officer before work begins. 2. Brand Names or Products, "or Equal," Single Seller and Sole Source. The District may enter into a public contract for the procurement of Brand Name "or Equal" Products subject to the requirements of this rule. (A) Specifications. Solicitation specifications for public contracts must not expressly or implicitly require any product of any particular manufacturer or seller except as expressly authorized in Subsections (i) and (ii) of this Rule. (i) "Or Equal" Specification. The District may specify a particular brand name, make or product suffixed by "or equal", "or approved equal", "or equivalent", "or approved equivalent", or similar language if there is no other practical method of specification. (ii) Specifying a Particular Make or Product. The District may specify a brand name, make, or product without an "or equal" or equivalent suffix if there is no other practical method of specification, after documenting the procurement file with the following information: (I) A brief description of the solicitation(s) to be covered including volume of contemplated future purchases; (II) The brand name, mark, or product to be specified; and (III) The reasons for seeking this procurement method, which must include at least one of the following findings in the procurement file: (aa) It is unlikely that Specification of the brand name, mark or product will encourage favoritism in the Page 9 Exhibit A to Resolution No. 2003-051 award of the public contracts or substantially diminish competition; or (bb) Specification of the brand name, mark or product would result in substantial cost savings to the District; or (cc) Efficient utilization of existing equipment or supplies requires the acquisition of compatible equipment or supplies. (B) Public Notice. The District will make reasonable effort to notify all known suppliers of the specified product and invite such suppliers to submit competitive bids or proposals; or document the procurement file with findings of current market research to support the determination that the product is available from only one seller. This requirement may be satisfied by electronically posting a notice for a reasonable period of time, if the LCRB determines that electronic notice is likely to be cost-effective, or by documenting direct contact with such suppliers in the Procurement file. (C) Purchasing From Sole Source, Single Seller. The District may purchase a particular product or service available from only one source if the District meets the Requirements of Subsection (A) and (B) of this rule and a Sole - Source Procurement pursuant to ORS 27913.275. Prior to purchase, the District must document its findings of current market research to support the determination that the product or service is available from only one seller or source and place this information in the procurement file. The District's findings must also include: (i) A brief description of the contract or contracts to be covered including volume of contemplated future purchases; (ii) Description of the product or service to be purchased; and (iii) The reasons the District is seeking this procurement method, which must include at least the following: (I) Efficient utilization of existing Goods or Services requires the acquisition of compatible Goods or Services; or (II) The required product is data processing equipment which will be used for research where there are requirements for exchange of software and data with other research establishments; or (III) The particular product is for use in a pilot or an experimental project. Page 10 Exhibit A to Resolution No. 2003-051 (D) Single Manufacturer, Multiple Sellers. The District may specify a product or service available from only one manufacturer, but available through multiple sellers, if the Requirements of Subsection (A) and (B) and the following are met: (i) If the total purchase is $5,000 or more but does not exceed $150,000 competitive quotes must be obtained and retained in the Procurement File pursuant to the rules governing Intermediate Procurements; (ii) If the purchase exceeds $150,000, the acquisition shall be made through competitive procurement unless a contract -specific special procurement is authorized by the LCRB. (E) Single Manufacturer, Multiple Purchases. If the District intends to make several purchases of the product of a particular manufacturer or seller for a period not to exceed five (5) years, the District must so state in the Solicitation file, the Solicitation Document, if any, and the public notice described in Subsection (B) of this Rule. Such documentation and public notice constitute sufficient notice as to subsequent purchases. If the total purchase amount is estimated to exceed $150,000, this must be stated in the advertisement for Bids or Proposals. (F) Competitive Solicitations. If the District competitively solicits, it must comply with the Rules for that method of Solicitation pursuant to ORS 279B.055 through 27913.075. Page 11 Exhibit A to Resolution No. 2003-051 EXHIBIT B FINDINGS IN SUPPORT OF RESOLUTION NO. 2005-051, ADOPTING CLASS SPECIAL PROCUREMENTS AND EXEMPTIONS AS PART OF THE DISTRICT'S PUBLIC CONTRACTING RULES ORS 27913.085 and 279C.335 authorize the LCRB, upon adoption of appropriate findings, to establish special selection, evaluation and award procedures for, or exempt from competition, the award of a specific contract or classes of contracts. Pursuant to that authority the Board, acting as LCRB has, after notice and an opportunity to comment at a regular meeting of the Board, adopted Resolution No. 2005- 051, which establishes classes of contracts and the solicitation methods for their award, together with the following specific findings in support thereof, or a determination that no findings are required. Specific Findings Class Special Procurements: The Board approves the specific findings for the establishment of special solicitation methods for the classes of public contracts described below and also finds that the establishment of each class of contracts and the methods approved for their award: A. Is unlikely to encourage favoritism in the awarding of public contracts or substantially diminish competition for public contracts; and B. The awarding of public contracts under the exemption will result in substantial cost savings to the District, or otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 27913.055, 279B.060, 27913.065 or 27913.070 or under any rules adopted thereunder. 1. Brand Names or Products, "or Equal," Single Seller and Sole Source Alternate Award Process. Subject to the requirements of this special procurement, the Chief Procurement Officer shall award such contracts in the Chief Procurement Officer's discretion, including through direct solicitation. Cost Savings and Other Benefits. Avoids unnecessary expenditure when required goods or services are available from only one source. Allows District to save time and resources by using brand-name products to describe required specifications. Effect on Competition. No competitive market exists, or equivalent vendors will be identified and allowed to compete. Effect on Favoritism. Not applicable where there is only one source. Page 1 Exhibit B to Resolution No. 3005-051 2. Advertising Contracts, Purchase of Alternate Award Process. Chief Procurement Officer's discretion. Cost Savinszs and Other Benefits. Size of and frequency of average advertisement (including all notices required to be published to District by applicable statute or regulation) does not justify the cost of solicitation. Time period of recognition of need to advertise until date of advertisement is too short to issue solicitation. Effect on Competition. The potential market is limited because not all advertisers work in all markets. Choice of advertising medium is somewhat price sensitive, but is primarily driven by location and size of circulation compared to District's target audience. Effect on Favoritism. Minimal. Due to the lack of competitors and specialized contracting needs. 3. Advertising Contracts, Sale of Alternate Award Process. The Chief Procurement Officer may authorize the sale of advertising in District publications and for District activities, regardless of dollar value, without competitive bidding. Effect on Competition. The sale of advertising is not for the purpose of generating revenue for the District, but rather is utilized to offset the cost of publication. Businesses generally purchase advertising space in the spirit of good will and as a means of supporting community activities. Effect on Favoritism. Minimal. Any interested individual or business who wishes to advertise may do by contacting District staff. 4. Equipment Repair and Overhaul Alternate Award Process. Contracts may be awarded in the Chief Procurement Officer's discretion. Cost Savings and Other Benefits. The need for equipment repair cannot be planned for and often must be handled on an expedited basis to avoid additional expense and adverse impact on the public's ability to utilize the District's services. Experience with a single contractor can help improve reliability over the course of several projects. Effect on Competition. Allows contractor be selected based on ability to provide accurate, reliable and fast service. Effect on Favoritism. Requirement that Chief Procurement Officer obtain competitive quotes when practical helps ensure that favoritism will not be great than if statutory request for proposals process where used. Page 2 Exhibit B to Resolution No. 3005-051 5. Purchase of Used Personal Property Alternate Award Process. Contracts to be awarded in Chief Procurement Officer's discretion. Cost Savings and Other Benefits. The District is responsible to manage expenditures in the best interests of the public. Cost savings can be achieved through the purchase of used property and equipment. The District purchases used property and equipment when it meets the District's needs and is cost- effective. Considerations include type, quantity and estimated useful life of the used item. Effect on Competition. No impact. Allows the District to respond to unique opportunities that become available sporadically and without notice. Used equipment and property is usually sold on a first-come, first-served basis. When used equipment or property does become available, the District must be able to respond immediately in order to obtain the property or equipment. Effect on Favoritism. No impact. District is responding to unique opportunities. When a used item is available, there is often little competition available and sources for used items of the type, quality and quantity required by the District are inconsistent. 6. Information Technology Contracts Alternate Award Process. Competitive methods will be used wherever possible to achieve best value. In situations where a competitive process is deemed to be impractical, the reasons must be documented in the procurement file. Cost Savings and Other Benefits. Rapid changes in technology and technology pricing make it necessary for the District to be able to purchase needed computer equipment quickly. It is frequently possible to take advantage to lower pricing due to the frequent price changes in the market place. Effect on Competition. Generally, there is sufficient competition among vendors in the area of information technology and software for the District to secure competitive quotes. The District is required to make a good -faith effort to secure competitive quotes under this rule. Effect on Favoritism. Minimal. The District is required to obtain competitive quotes where practical. As price is the primary factor, it is unlikely that this special procurement will encourage favoritism in the awarding of public contracts. Page 3 Exhibit B to Resolution No. 3005-051 7. Telecommunications Systems — Hardware and Software Contracts Alternate Award Process. Competitive methods will be used whenever possible to achieve best value. The reasons why a competitive process was deemed to be impractical must be documented in the procurement file. Cost Savings and Other Benefits. Rapid changes in technology and technology pricing make it necessary for the District to able to purchase needed telecommunications hardware and software quickly. It is important that the District be able to take advantage of price competition in the market place. Effect on Competition. Since deregulation, there is generally sufficient competition among vendors of telecommunications hardware and software for the District to secure competitive quotes. The District is required to make a good - faith effort to secure competitive quotes under this rule. Effect on Favoritism. Minimal. The District is required to obtain competitive quotes where practical. As price is the primary factor, it is unlikely that this special procurement will encourage favoritism in the awarding of public contracts. 8. Telecommunications Services Alternate Award Process. The Chief Procurement Office may enter into a public contract for telecommunications services without competitive bidding, if no competition exists within the area for the service required. Cost Savings and Other Benefits. The Chief Procurement Officer will use competitive methods wherever possible to achieve best value. If competition exists, competitive quotes will be obtained. Effect on Competition. It is important that the District take advantage of price competition in the market plan. There may be circumstances, however, where sufficient competition does not exist in the relative geographic and service market area. In such cases, the District will follow this rule in determining whether sufficient competition exists to make a competitive procurement. Effect on Favoritism. Since deregulation, there is generally sufficient competition among vendors of telecommunications services for the District to secure competitive quotes. Because price is a primary factor, it is unlikely that this special procurement will encourage favoritism in the awarding of public contracts. . 9. Copyrighted and Library Materials Alternate Award Process. Contracts may be awarded in the Chief Procurement Officer's discretion. Page 4 Exhibit B to Resolution No. 3005-051 Cost Savings and Other Benefits. This special procurement is necessary to allow the District to acquire special needs products that are unique and for which a single copyright owner or licensee is the only source of the material. Eliminates unnecessary competitive solicitation when a competitive market does not exist. Effect on Competition. By their nature, copyrighted materials are protected for the use of a single owner and are often produced by a single supplier who may be the owner of the copyright or its licensee. Effect on Favoritism. Not applicable due to the lack of competitors and specialized contracting needs. 10. Requirements Contracts Alternate Award Process. The District initially awards requirements contracts as a result of competitive procurement or an applicable exemption. This special procurement allows such a contract to be converted into one that will allow the District to secure a constant source of supply for the contracted for goods. Cost Savings and Other Benefits. Allows the District to reduce inventory, combine District requirements for volume discounts, standardize goods among District departments and reduce lead time for ordering. Effect on Competition. It is unlikely that this exemption will diminish competition for District contracts as the District initially enters into such contracts through a competitive process or applicable exemption. 11. Purchases under Federal Contracts Alternate Award Process. This special procurement allows the Chief Procurement Officer to make purchases of goods and services when the price has been established by a contract of the federal government, which contract was awarded through a competitive procurement process. Cost Savings and Other Benefits. The District may use this special procurement method when it determines that there is a cost savings to be made in avoiding the solicitation process. Effect on Competition. The contracts are awarded through competitive processes which meet the standards of the Oregon public contracting code. Oregon companies are not excluded or disadvantaged in participating in bidding on federal contracts. Effect on Favoritism. Minimal. The contracts are awarded at the price most advantageous to the federal government. The District is required to document the cost savings it will achieve by using the contract. These facts ensure that the District purchases the desired goods or services at the best price available, rather than from a preferred contractor. Page 5 Exhibit B to Resolution No. 3005-051 12. Hazardous Material Removal and Cleanup Alternate Award Process. Contracts may be awarded in the Chief Procurement Officer's discretion. Cost Savings and Other Benefits. When the District is ordered to remove or clean up hazardous material, it must respond within a very short time period. This time period does not generally allows for the District to take the time necessary to solicit written bids or proposals for the work to be performed. Failure to comply within the allotted time period could make the District liable for delays in responding to cleanup or removal orders. Such delay might also expose the District to potential liability from third parties if the cleanup is not completed quickly. Effect on Competition. This special procurement will only be used in situations where a remedial order is in effect and therefore there is no time to employ a competitive procurement method. Routine competitive procurement methods will used where time permits. Effect on Favoritism. Minimal. The District will follow competitive procurement procedures unless precluded by time constraints. 13. Tag -on Contracts Alternate Award Process. This special procurement allows the Chief Procurement Officer to make purchases of goods and services when the price has been established by a contract of another local government within the State of Oregon or by an Oregon state agency, which contract was awarded through a competitive procurement process. Cost Savings and Other Benefits. The District may use this special procurement method when it determines that there is a cost savings to be made in avoiding the solicitation process. Effect on Competition. The contracts are awarded through competitive processes which meet the standards of the Oregon public contracting code. Effect on Favoritism. Minimal. The contracts are awarded at the price most advantageous to the State of Oregon or another local government agency. The District is required to document the cost savings it will achieve by using the contract. These facts ensure that the District purchases the desired goods or services at the best price available, rather than from a preferred contractor. 14. Insurance, Employee Benefit and Other Alternate Award Process. The District may purchase employee benefit insurance and other insurance without competitive bidding, regardless of dollar amount subject to the terms of any collective bargaining agreement. Page 6 Exhibit B to Resolution No. 3005-051 Cost Savings and Other Benefits. The nature, type, specific services to be provided and timing of employee benefit insurance are dictated by collective bargaining agreements between the District and represented labor groups. The District must fulfill its contractual obligations to represented employee groups to provide appropriate employee benefits. The District relies on its professional insurance broker or agent -of -record to solicit competitive proposals from responsible companies to furnish employee benefit coverages and other insurance coverages. Effect on Competition. Minimal. The District's agent -of -record, solicits proposals from employee benefit insurance providers and other insurance providers under conditions that foster competition among a sufficient number of potential suppliers. The District evaluates the proposals submitted to furnish employee benefit insurance for the best value to the District given the requirements specified by the employee benefits portions of the District's agreements with represented labor groups. 15. Disposal of Abandoned, Seized or Non -owned Property Alternate Award Process. Abandoned, seized or non -owned property may be disposed of in the Chief Procurement Officer's discretion. Cost Savings and Other Benefits. Avoids an unnecessary solicitation expense by allowing the Chief Procurement Officer to determine whether the cost of solicitation is justified by the value of the property to be disposed. Allows the Chief Procurement Officer to establish programs for donation to charitable organizations. Effect on Competition. No impact. Responds to unique opportunities. Effect on Favoritism. No impact. Responds to unique opportunities. 16. Disposal of Surplus Property Alternate Award Process. Surplus property may be disposed of in the Chief Procurement Officer's discretion. Cost Savings and Other Benefits. Avoids an unnecessary solicitation expense by allowing the Chief Procurement Officer to determine whether the cost of solicitation is justified by the value of the property to be disposed. Allows the Chief Procurement Officer to establish programs for donation to charitable organizations. Effect on Competition. No impact. Responds to unique opportunities. Effect on Favoritism. No impact. Responds to unique opportunities. Page 7 Exhibit B to Resolution No. 3005-051 17. Temporary Extensions or Renewals Alternate Award Process. Renewal. No competitive selection required. Cost Savings and Other Benefits. Allows the District to prepare for competitive solicitation when existing contracts expire without notice due to administrative error. Effect on Competition. Delays competition by not more than one year. Effect on Favoritism. No impact. At expiration of temporary, standard competitive procedures will apply. 18. Exempt Personal Services Contracts Alternate Award Process. Contracts may be awarded in the Chief Procurement Officer's discretion, subject to approval by the LCRB. Cost Savings and Other Benefits. The District has an existing agreement with the Sunriver Owner's Association ("SROA") to provide administrative, accounting and public works services to the District. SROA previously provided the services to the District residents that the District now provides, and therefore has a unique base of experience that is not available in other potential service providers. As the predecessor organization that provided many of the services that the District now provides, SROA is able to immediately provide the administrative and other services required by the District, without the need for any training or adjustment period. Effect on Competition. Minimal. SROA is a mutual benefit, non-profit corporation. As such, it is charged with acting in the best interests of its members, which members are District residents. Specific Findings for Public Improvement Exemptions The Board approves the specific findings for the exemptions for each class of public improvement established in the provisions described below and also finds that the establishment of each class of contracts and the methods approved for their award: A. Is unlikely to encourage favoritism in the awarding of public improvements contracts or substantially diminish competition for public improvement contracts; and B. The awarding of public improvement contracts under each exemption will result in substantial cost savings to the District. Page 8 Exhibit B to Resolution No. 3005-051 1. Use of Existing Contractors Alternate Award Process. From time to time, the District needs to perform repair or maintenance functions at or near a site where a contractor, already hired by the District through a competitive selection process, is performing other work. The Chief Procurement Officer may obtain an informal price quotation from the contractor already at or near the site to perform the additional work. If the Chief Procurement Officer determines that the informal price quotation is competitive for work of that type, then the contractor may be awarded this additional work without the need for competitive bidding provided that the value of the additional work, as estimated by the contractor, does not exceed $25,000. Cost Savings and Other Benefits. The District will achieve cost savings because the cost of the additional work will be lower than if the work was competitively bid because the contractor is already mobilized at or near the site of the work and will not need to recover the cost of mobilization as a new contractor would. Effect on Competition. It is unlikely that this special procurement will encourage favoritism or substantially diminish competition in the award of District contracts, as the contractor was originally selected through a competitive bidding process. The occurrence of such additional work is haphazard and often was not foreseen and the District is not required to provide the contractor with the work if the estimated price is not competitive. 2. Brand Names or Products, "or Equal," Single Seller and Sole Source Alternate Award Process. Subject to the requirements of this special procurement, the Chief Procurement Officer shall award such contracts in the Chief Procurement Officer's discretion, including through direct solicitation. Cost Savings and Other Benefits. Avoids unnecessary expenditure when required goods or services are available from only one source. Allows District to save time and resources by using brand-name products to describe required specifications. Effect on Competition. No competitive market exists, or equivalent vendors will be identified and allowed to compete. Effect on Favoritism. Not applicable where there is only one source. Page 9 Exhibit B to Resolution No. 3005-051