9.16 – Procurement Policy for Federal Awards

Purpose

Open Door encourages competition among qualified vendors to ensure the best possible terms for all purchases made. The purpose of this policy is to ensure that goods and services purchased from a Federal Award contract are obtained in a cost‐effective manner and in compliance with applicable state and local laws and regulations, if procurements conform to applicable federal law and the standards set forth in OMB 2 CFR Chapter 1, Chapter II, Part 200, et al (OMB 2 CFR).

Scope

This policy applies to all authorized purchasers (Buyers) that initiate or approve the purchase of goods or services utilizing a Federal Award as defined in OMB 2 CFR. Buyers and approving parties shall consult OMB 2 CFR for the guidelines and requirements of costs that can be charged to federally funded grants and agreements by Not‐For‐Profit organizations.  This policy is not applicable to general purchasing of the Organization.

Responsibility

Department heads and supervisors may complete a purchase order for items needed for their departments. The CEO and Operations Director are responsible for determining whether a purchase is allowable under the terms of the specific Federal Award contract and will ensure purchases are in accordance with this policy. In addition, Operations Director is responsible for oversight of contractors to ensure performance in accordance with the terms, conditions and specifications of their contracts or purchase orders.

Once purchase is approved, each Buyer is responsible for attaching all required supporting documentation to the approved Purchase Order (P.O.). The PO is on the employee hub of the Open Door website.

Where applicable, the Finance Manager must receive purchase receipts and purchase documentation for any items purchased at a price of $500 or more. The Finance Manager is responsible for submitting all new Assets to the CPA to be added to the Open Door Asset Schedule.  The Accounting Department will retain all submitted purchase records as part of the Accounts Payable process.

Code of Ethics

All employees shall conduct themselves in accordance with the Employee Code of Ethics Policy. Specific to procurement under Federal Award contracts:

• No employee, officer, director, or agent of Open Door shall participate in the selection, award or administration of a bid or contract supported by a Federal Award if a conflict of interest is real or apparent to a reasonable person.
• Conflicts of interest may arise when any employee, officer, director, or agent of Open Door has a financial, family or any other beneficial interest in the vendor firm selected or considered for a Federal Award.
• No employee, officer, director, or agent of Open Door shall do business with or award contracts to, or show favoritism toward a member of his/her immediate family, spouse’s family or to any company, vendor, or concern who either employs or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of Federal, State, and local procurement laws and policies established to maximize a free and open competition among qualified vendors.
• No employee, officer, director, or agent of Open Door shall solicit or accept favors and/or significant gifts with a value of $25.00 or more from a vendor, potential vendor, or from the family or employees of a vendor, potential vendor, or bidder, or from any party to a sub‐contract agreement.
• Each employee, officer, director, or agent will be a responsible steward of Open Door resources.

Organizational Conflicts of Interest

Open Door and its subsidiaries will not engage in any inter‐organizational procurement transactions that negatively impact Federal Award contract requirements or the competitive vendor selection process, avoiding even the appearance of a conflict of interest. Any inter‐ organizational procurement transactions that could result in a conflict of interest will be disclosed to the awarding agency.

Procurement Overview

Open Door will maximize open and free competition for all procurement transactions regardless of method or dollar value.

To promote compliance with federal regulations, Open Door requires Buyers to perform some measure of cost/price analysis when making purchases under federal award contracts. Buyers shall avoid purchasing unnecessary or duplicative items. All vendor bids and quotations must be evaluated based on product quality, technical compliance with specifications, total cost, and the vendor’s acceptance of Open Door terms and conditions. Buyers should always make sure to obtain enough data from the vendor to determine the price is fair and reasonable.

A purchase shall not be split into multiple smaller purchases to avoid the approval/documentation process. The total anticipated amount of the purchase should be used to determine the approval and documentation process.

The vendor selection process for goods and services valued at less than $3,000 need not be documented and stored as part of the transaction record ($2,000 in the case of procurements for construction subject to the Davis Bacon Act).  The vendor selection process for goods and services of $3,000 up to $25,000 require three competitive oral or written quotes, to be attached to the authorized P.O.  The vendor selection process for goods and services in excess of $25,000 requires a Request for Proposal (RFP) be prepared and three written competitive bids obtained. 

Whenever possible, positive efforts shall be made to utilize small‐businesses, small, disadvantaged businesses, small businesses that are woman‐owned or veteran‐owned or service‐disabled veteran‐owned small business enterprises.

Vendor Selection and Bidding Requirements

Buyers shall consider the following before making a vendor selection:

• Does the vendor provide the best mix of quality, service, and price for the specified need? Lowest price will have priority, unless quality, service or delivery time takes priority as to need.
• Does the vendor qualify as a small, disadvantaged, minority or women‐owned business? Qualifying vendors should be given preference to the extent practical and economically feasible.
• Does the vendor supply products and services that conserve natural resources, are energy efficient and protect the environment? Vendors should be given preference, to the extent practical and economically feasible, for such products.

Purchases Under $3,000

Formal documentation of vendor selection is not required, unless required by a specific Federal Award contract. Buyers are expected to conduct an informal cost/price analysis and select the vendor offering the best mix of quality, service, and price for the specified need. Reasonable efforts shall be made to ensure fair and competitive pricing.

Purchases from $3,000 to $25,000

A minimum of three quotes, either written or verbal, are required. Each vendor must be provided with the same precise and accurate description of the specifications and technical requirements for the item or service. Established web price lists and catalogue listings can be considered verbal bids, as can similar recent past purchases. Buyers must perform a price analysis by completing a Open Door Vendor Selection Form (Attachment A of this document). A copy of the completed form must be attached to the authorized P.O. and submit to the CEO/OD prior to purchase approval.

Purchases exceeding $25,000

A minimum of three written bids are required. Each vendor must be provided with the same precise and accurate description of the specifications and technical requirements for the item or service. Written bids may be received by mail, fax or email and should be signed/e‐mailed by an authorize representative of the vendor. See section 4.0 Obtaining Competitive Bids below. Buyers must complete a Open Door Vendor Selection Form (Attachment A of this document). A copy of the completed form and all written bids must be attached to the authorized P.O. and submit to the CEO/OD prior to purchase approval.

Documentation

All procurement source documents supporting any given transaction in accordance with this policy shall be retained in accordance with the timelines set forth in Open Door’s Record Retention and Destruction Policy. Open Door will retain records sufficient to detail the history of the procurement. These records will contain evidence of, but not limited to; bids and responses, documentation of vendor search and results, reviewed options, obtained quotes, compared prices, determined reasonableness (cost/price analysis), description of why the vendor was selected, and good/defensible reasons for using a sole/single source.

Obtaining Competitive Bids

Solicitations for goods and services as required under section 3.4 of this policy shall be publicized and should include the requirements which the vendor must fulfill and all factors to be used in evaluating the bids or proposals. Whenever possible, bid documents should provide complete descriptions of all essential and desired features of any product or service.

Solicitations should not be designed or contain features that unduly restrict competition. Any response to proposals must be considered to the maximum extent practical.

Non‐Competitive Vendor Selection

Occasionally, a Buyer is unable or chooses not to competitively bid the procurement requirements. These situations are characterized as sole or single source transactions and should be used as a last resort.

• Sole Source: No other vendor capable of fully meeting the procurement requirements
• Single Source: Alternative vendors exist in the competitive market, but the buyer chooses to solicit a bid from only one vendor because of technical requirements (precision, reliability) or past performance by other vendors (poor service, availability of parts).

Buyers must complete the necessary information on the Open Door Vendor Selection form pertaining to Sole Source Procurement and write a narrative to justify the non‐competitive procurement procedure.    All documentation must be attached to the authorized P.O. and submit to the CEO/OD.

Open Door will consider contacting the grant or contract officer to obtain prior approval of the sole/single source before finalizing acceptance of the bid except when an emergency exists. The exception shall be documented and included with the procurement records.

Sole Source Justification Guidelines

Documentation should include the following when justifying a non‐competitive bid process:

• Identification of the reason chosen that permits for other than full and open completion
• A background statement that provides information that would assist the reader in understanding the history (funding source, constraints, etc.) of the procurement
• A description of the products or services required to meet the contract needs
• A demonstration that the proposed vendor/subcontractor’s unique qualifications or the nature of the purchase requires use of the reason chosen and essential to the requirements
• A description of efforts made to ensure that offers were solicited from as many potential sources as is practicable
• A determination that the pricing/costs are fair and reasonable
• Any other facts supporting the use of a sole source procurement
• A listing of the sources, if any, that expressed in writing an interest in the acquisition

Contracts

The type of contract used must be appropriate for the procurement. The types most used by Open Door for Federal Award contracts are:

• Purchase Orders
• Blanket Purchase Agreements
• Firm‐Fixed Price Contracts
• Cost Reimbursable Contracts
• Fixed Price with Cost Reimbursable Contracts

All Open Door contracts will contain language which allows Open Door to cancel the contract and, as applicable, will meet the guidelines as set for in Appendix II to OMB 2 CFR.

Exceptions

The CEO must provide approval of any exceptions to this policy by written notice.

Last Revised: 8/25/21