10.02.02 Definition of Purchasing Terms
Policy 10.02.02 -Definition of Purchasing Terms Page 1 of 7 CITY OF BOYNTON BEACH ADMINISTRATIVE POLICY MANUAL CHAPTER: 10 Purchasing POLICY NO: 10.02.02 SECTION: 02 Terms and Definitions
PAGE: Page 1 of 7 SUBJECT: 02 Definition of Purchasing Terms PURPOSE: To define words and terms used throughout these Purchasing Policies with standardized meanings set forth below unless
the context in which they are used clearly requires a different meaning or a different definition as prescribed for a particular section or portion thereof. DEFINITIONS: 1. Addenda -Written
or graphic instruments issued prior to the opening of bids or Proposals that clarify, correct or change the solicitation documents or resulting Contracts. 2. Award -The acceptance of
a Bid, offer, or Proposal by the proper authority. The City Commission must approve all non-construction awards of $25,000 or more and all construction awards of $75,000 or more with
the exception of emergency purchases. However, all formal Contracts (regardless of amount) amount) require approval of the City Commission. 3. Bid Bond -A form of Bid security executed
by the Bidder as principal and by a surety to guarantee that the Bidder will enter into, and satisfactorily complete the Contract within a specified time and furnish any required performance
bond. 4. Blanket Purchase Order -A Purchase Order that covers the purchase of repetitive type supplies of a like nature of a minor amount (less than $500) for a stipulated period of
time (12 months). 5. Brand Name or Equal Specifications -A specification limited to one or more items by manufacturers' names or catalog numbers to describe the standard of quality,
performance or other prominent characteristics needed to meet City requirements. 6. Brand Name Specification -A specification limited to one or more items by manufacturers' names or
catalogs. 7. Capital Purchases -All tangible personal property having an original acquisition cost of $750 or more per unit and a probable useful life expectancy of more than one year.
This would include the capitalized purchase of any software.
Policy 10.02.02 -Definition of Purchasing Terms Page 2 of 7 8. Change Order -A written order amending a Purchase Order to correct errors, omissions, discrepancies, acceptable overruns,
freight costs, unforeseen conditions, approved changes to the scope of work, or amendments to Contracts that entail additional cost. 9. Commodities -Include, but not limited to economic
goods, equipment, material and printing, purchased, leased or otherwise contracted for by the City. 10. Competitive Bids or Competitive Offers -The receipt of Bids or offers submitted
by responsive, responsible and qualified bidders or offerors. 11. Competitive Selection and Negotiation -A method of purchasing whereby qualified professional firms are invited to submit
Letters of Interest, Proposals or Qualifications and are short-listed by an appropriately appointed review committee for further evaluation prior to recommending an Award. 12. Construction
-The process of building, altering, repairing, improving or demolishing any public structure or building or other public improvements of any kind to any public real property. It does
not include the routine operation, routine repair or routine maintenance of existing structures, buildings or real property. 13. Construction Change Order -A written order authorized
by the proper City authority in accordance with APM 10.06.01 (Process for Change Orders), directing the Contractor to make changes that the “Change Order” clause of the construction
Contract authorizes. Finance and Procurement Services must be notified when the Construction Change Order occurs. 14. Consultant's Competitive Negotiations Act (CCNA) -The common name
for Section 287.055 of the Florida Statutes concerning the procurement of Architectural, Engineering (including testing), Landscape Architecture, and Registered Land Surveying Services.
These services will be procured by Letter of Interest or by the Request for Qualifications process and Competitive Selection and Negotiation will take place. 15. Contract -A binding
and formal bilateral agreement between the City and an outside party for the procurement of supplies or services requiring approval by the City Commission. A Purchase Order is a unilateral
Contract that does not require City Commission approval. 16. Contractor -Any person or business having a Contract with the City of Boynton Beach to perform a service or sell a product.
17. Contractual Services -The rendering of time and effort by a Contractor rather than the furnishing of specific commodities, materials, goods, equipment and other personal property.
The term applies only to those services rendered by individuals and firms who are independent Contractors. 18. Cooperative Purchasing -The procurement conducted by or on behalf of more
than one government entity.
Policy 10.02.02 -Definition of Purchasing Terms Page 3 of 7 19. Debarment -A disqualification of a business or person from receiving invitations for Bids, Requests for Proposals, or
the award of Contracts by the City, because of previous illegal or irresponsible action, for a specific period of time commensurate with the gravity of the offense or the failure or
the inadequacy of performance. 20. Declared Emergency -A declaration covering an area including the City of Boynton Beach made at the national, state, county or city level necessary
to respond in the best interest of public health, safety and welfare. 21. Designee -A duly authorized representative of a person holding a superior, higher level position. 22. Discount-From-List
Contracts -Contracts whereby price is determined by applying a percentage discount from an Established Catalog Price. This type of Contract is only to be used when Procurement Services
determines, that this contracting methodology is in the best interest of the City. 23. Emergency Emergency -A situation brought about by a sudden unexpected turn of events (i.e., Act
of God, hurricanes, riots, fires, floods, accidents, etc.) or any circumstances or causes beyond the control of the City in the normal conduct of business. Emergencies could involve
health, welfare, injury, or loss to the City and/or City citizens; which may require the immediate purchase of equipment, supplies, materials, or services. (See Declared Emergency) 24.
Established Catalog Price -The price included in a catalog, price list, schedule, or other form that: a. Is regularly maintained by a manufacturer or Contractor; b. Is either published
or otherwise available for inspection by customers; and c. States prices at which sales are currently or were last made to a significant number of any categories of buyers or buyers
constituting the buying public for the supplies or services involved. 25. Firm Fixed-Price Contract -A Contract whereby the price is fixed, not variable, for the entire life of the Contract
or until a set quantity of goods or services is delivered. 26. General Services -Include support services performed by an independent Contractor requiring specialized knowledge, experience
or expertise. The service rendered does not consist primarily of acquisition of equipment or materials. Examples of general services include janitorial, pest control, and maintenance
of equipment. General Services are normally procured through Requests for Proposals or Invitations to Bid. Procurement of general services may include subjective evaluation factors of
the submitting firms.
Policy 10.02.02 -Definition of Purchasing Terms Page 4 of 7 27. Governmental Agency -Any agency of the Federal, State, or any local government. 28. GSA Contracts -Contracts entered into
by the General Services Administration of the Federal Government (also known as GSA Schedules) and are multiple award Contracts containing prices to be utilized by all Federal Government
Agencies. GSA Contracts also contain the most preferred customer clause, making the prices contained in the GSA Contracts equivalent with those that are given to the most preferred customer
of the vendor. 29. Invitation to Bid -A written solicitation for competitive sealed Bids with the title, date, and hour of the public Bid opening designated and specifically defining
the commodities or Contractual Service for which Bids are sought. The Invitation to Bid will be used when the City is capable of specifically defining the scope of work for which a Contractual
Service is required or when the City is capable of establishing precise specifications defining the actual Commodities required. The Invitation to Bid will include instructions to bidders,
plans, drawings and specifications (if any), Bid form, and other required forms and documents to be submitted with the Bid. 30. Letter of Interest (Request for) -A method of selecting
a vendor whereby all vendors are invited to submit a summary of their qualifications and state their interest in performing a specific job or service. 31. Mandatory Bid Amount -The dollar
threshold at which the formal Bid process is required. The Mandatory Bid Amount is currently $25,000 (non-construction) and $75,000 (construction). The current known requirement of any
commodity or service will not be divided to circumvent the requirement of the Mandatory Bid Amount. Special orders and warehouse-stocked items will continue to be ordered through the
Warehouse. 32. Minority Business Enterprises (MBE) is a business or person in which more than 50% of the stock is owned by a recognized minority group. Minority Businesses must be qualified
through certification. 33. Multiple-Award Contracts -Contracts that provide awards to more than one vendor for the same item. The Purchasing Agent may use these Contracts when determined
that the use of more than one vendor is in the City’s best interest. 34. Negotiations for Professional Services The act of determining terms, conditions, and prices for the performance
of professional services. An appropriately appointed negotiation committee will negotiate with the top ranked candidate from the competitive selection of professional service firms,
in an attempt to reach agreement on a Contract to provide services to the City. 35. Notice of Award -The written notice by the City to the apparent, successful Bidder or offeror stating
that upon compliance by the successful Bidder or offeror with the conditions precedent to the Contract within the time specified, the City will sign and deliver the Contract.
Policy 10.02.02 -Definition of Purchasing Terms Page 5 of 7 36. Open-end Contract -A Contract whereby an indefinite quantity of supplies, services, or construction are to be procured
over an identified time span, as and when needed. 37. Performance/Construction Bond -A bond of a Contractor/vendor in which a surety guarantees to the City that the work/services will
be performed in accordance with the Contract documents and may, at the discretion of the City, include an irrevocable letter of credit issued by a financial institution or cash. 38.
PRIDE of Florida -The Prison Rehabilitation Industries and Diversified Enterprises, (PRIDE) Inc. that is a non-profit, self-funded corporation chartered by the State of Florida in 1981
to provide meaningful training and work experience to inmates in Florida's correction institutions. PRIDE donates 1.5% of all sales to the State of Florida every year from the operation
of 49 industries in 20 prisons in the State of Florida. A catalog is available in Procurement Services Services of all products, prices, and prison inmate contacts. 39. Procurement -The
process of buying, renting, leasing or otherwise obtaining any supplies, services, construction or any other item(s), including description of requirements, selection and solicitation
of sources, preparation and award of Contracts and all phases of Contract administration. 40. Professional Services -Any services where the City is obtaining advice, instruction, or
specialized work from an individual or firm specifically qualified in a particular area. Professional services may include a report, or written advice that may be lengthy; however, the
main thrust of the service is not considered labor, but the exercise of intellectual ability. The procurement of professional services does not lend itself to normal competitive bidding
and price competition alone. These services may be procured by Letter of Interest, Request for Qualifications or Request for Proposals and selected through Competitive Selection and
Negotiation. 41. Purchasing Agent -The senior Purchasing official for the City of Boynton Beach or the person designated by the Purchasing Agent to act in behalf of the Purchasing Agent.
This position has the authority to solicit Bids and issue Purchase Orders for the City. All Purchase Orders entered into by the City will require the authorizing signature of the Purchasing
Agent. 42. Purchase Order – A Purchase Order is a unilateral Contract issued by the City to formalize a purchase transaction with a vendor, conveying acceptance of a vendor's Bid or
Proposal. The Purchase Order should contain statements as to quantity, description and price of the supplies, services, or construction ordered and applicable terms as to payment, discounts,
date of performance, transportation, insurance and other factors 43. Quotation -An informal (verbal) or formal (written) notice by a vendor to the buyer stating the prices, terms and
conditions under which they will furnish certain goods or services.
Policy 10.02.02 -Definition of Purchasing Terms Page 6 of 7 44. RESPECT of Florida -A registered service mark of the Florida Association of Rehabilitation Facilities, Inc., the central
non-profit agency of the Commission for Purchase from the blind or other severely handicapped persons. 45. Request for Proposals -All documents, whether attached or incorporated by reference,
for soliciting sealed Proposals. 46. Responsible Bidder or Responsible Offeror -The person, vendor, contractor or company who has the capability in all respects to perform fully the
Contract requirements and the tenacity, perseverance, integrity, experience, ability, reliability, capacity, facilities, equipment, financial resources and credit which will give reasonable
expectation of good faith performance. 47. Responsive Bidder or Responsive Offeror -A person, vendor, Contractor or company who has submitted a Bid which conforms in all material respects
to the Invitation to Bid or Request for Proposals. 48. Review and Negotiation Committee -A group of persons appointed by the City Manager to rank in preferential order those professional
firms or individuals interested in providing services on a particular project and to negotiate a final Contract with the highest ranked firm. 49. Services -The furnishing of labor, time,
and effort by a person, vendor, Contractor or company, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance.
This term shall not include employment agreements or collective bargaining agreements, but shall include both professional and general services. 50. SNAPS -The State Negotiated Agreement
Price Schedule (SNAPS) which is a State program created to eliminate keeping comparative pricing for purchases as long as they meet the requirements of: recycled content, conservation
factors or environmentally desirable characteristics. 51. Specifications – Any description of the physical or functional characteristics or of the nature of a supply, service or construction
item which are drafted by the requesting department. It may include a description of any requirement for inspecting, testing or preparing a supply, service or construction item for delivery.
Specifications may also contain provisions for inclusion of factors that will lead to the ultimate calculation of the lowest total cost. All specifications shall seek to promote overall
economy for the purpose intended, and encourage competition in satisfying the City's needs and shall not be unduly restrictive. 52. Sole Brand -The only known brand or only reasonable
brand capable of fulfilling the needs of the City. 53. Sole Source -The only known vendor or the only reasonable vendor capable of providing a service or commodity to the City.
Policy 10.02.02 -Definition of Purchasing Terms Page 7 of 7 54. State Contract -The contracts awarded by the State of Florida’s Department of Management Services subsequent to a formal
bidding process and award of various equipment and services Contracts extended for use by all political subdivisions (entities). 55. Supplies -All property, including but not limited
to, equipment, material, printing and leases, but specifically excluding the acquisition of leasehold interests in real property by the City. 56. Surety -An organization which, for consideration,
promises in writing to make good the debt or default of another. The surety must hold a certificate of authority as an acceptable surety on federal bonds published in the current Circular
570, United States Department for the Treasury and the Federal Register effective July 1 annually, as amended. 57. Surplus Property -Any property belonging to the City, which is capable
of being used, but is obsolete, inefficient or in excess of the normal operating requirements of the City. This property is disposed by auction, or other means that proves more beneficial
to the City as determined by all or two of the following: City Manager, Purchasing Agent and Finance Director. The City Commission will approve the disposition of the property. 58. Suspension
-The disqualification of a business or person from receiving Invitations for Bids or Request for Proposals or the award of a Contract by the City for a given period. 59. Using Department
-Any department of the City, which utilizes any supplies, services, or construction, procured under this Policy. 60. Warehouse Special Orders -Represent purchases (no capital outlay
items) processed by the Warehouse. The Warehouse has established Bid discounts for purchased commodities and the discounts are passed on to the departments. The commodities handled by
the Warehouse currently include vehicle parts, office supplies, janitorial supplies, hardware, irrigation supplies, medical supplies, safety supplies, brass fittings and accessories,
sewer pipe, electrical supplies, meters, and uniforms Although this listing of terms and definitions is comprehensive, it is not considered totally inclusive of all related terms applied
to the procurement of commodities and services provided to the City. DEVELOPED BY: Procurement Services EFFECTIVE DATE: February 1, 1998 REVISION DATE: November 15, 2008 Kurt Bressner
. Kurt Bressner City Manager