Exemptions to the Purchase Order/Contract Requirements

Document Code No.: CON 7-2-1 (AEP)
Department/Issuing Agency: Department of Finance/Procurement and Contract Services Divisions
Effective Date: November 17, 1996
Approved: /s/ Paul Tanaka
Type of Action: Supersedes CON 7-2 (AEP) (PDF, 2.22 MB)

Signed Document (PDF, 3.45 MB)

1.0 SUBJECT TITLE: Exemptions to the Purchase Order/Contract Requirements

2.0 PURPOSE:

2.1 To exempt certain categories of purchases from King County purchase order or contract.

3.0 ORGANIZATIONS AFFECTED:

All King County offices, departments, divisions, and agencies.

4.0 REFERENCES:

4.1 King County Code, Chapter 4.16, Procurement Procedures for Public Contracts.

5.0 DEFINITIONS:

5.1 "Authorized Personnel" means those employees given signature authority for certification of payments by the respective elected official, department director, agency head or division manager.

5.2 "Blanket Purchase Order" means a contract awarded by the Procurement Services Division to fill anticipated repetitive needs for non-specific quantities and/or specific quantities on a routine basis, at established prices.

5.3 "Capitalized Purchase" means inventoriable item (fixed asset) that has an expected lifetime that is longer than one year and the cost is $1,000.00, or more, including freight and sales tax.

5.4 "Contract" means a mutually binding legal relationship or any modification thereof obligating a person, firm, corporation, partnership or group to provide tangible personal property or tangible goods and services to the County, and governmental agency, which obligates the County to pay therefor.

5.5 "Direct Voucher" means direct authorization for payment of procured goods/services without a purchase order/contract issued by the Procurement or Contract Services Division.

5.6 "Directory of Certified Minority, Women's and Disadvantaged Business Enterprises" means the directory of businesses certified by the State of Washington Office of Minority and Women's Business Enterprises as minority business enterprises, women's business enterprises, or disadvantaged business enterprises. This directory is updated quarterly.

5.7 "Disqualified Vendor" means a vendor disqualified from doing business with King County by the M/WBE and Contract Compliance Division.

5.8 "Exemption" means those purchases exempt from use of County purchase order or contract.

5.9 "Grant Funds" means any money, or property in lieu of money, paid or furnished by Federal, State, or local government under programs that provide financial assistance through grant or contractual agreement.

5.10 "Minority/Women's Business Enterprise (MWBE) " means a business that has been certified by the State of Washington Office of Minority and Women's Business Enterprises as a bona fide minority business enterprise or as a bona fide women's business enterprise.

5.11 "Pre-qualified Vendor" means a vendor who has submitted to King County a Personnel Inventory Form and Affidavit of Compliance that they are an equal opportunity employer as required by KCC, Chapter 1 2.1 6.

5.12 "Purchase Order" means a form authorizing the purchase of goods/supplies/materials/non-professional services and equipment from a specified vendor or contractor.

6.0 POLICIES:

6.1 It is the County's policy to purchase goods and services in a manner that complies with State Law, King County Code, and all applicable ordinances and directives including applicable federal requirements.

6.2 It is the policy of the County to ensure the full and equitable participation by women's business enterprises, minority business enterprises, and disadvantaged business enterprises in the provision of goods and services to the County.

6.3 It is the policy of the County that recycled/recyclable products shall be procured and used by all offices, divisions, departments, and agencies wherever practicable.

6.4 The following categories of purchases are exempt from the requirement of an official King County Purchase Order/Contract and may instead be purchased by any King County employee who is currently authorized to sign the payment certification for Accounts Payable vouchers.

6.4.1 Single purchases totaling less than $2,500.00, including freight and sales tax, except that for capitalized purchases the limit is $1,000.00 including freight and sales tax.

6.4.2 Purchases where the County's liability is cited in law, County contract/agreement, court order or Council motion with either (a) terms and payee specified by same, or (b) if either or both are not specified, their determination is not subject to the control of the Procurement or Contracts Managers.

6.4.2.1 Contracts/agreements signed by the County Executive or designee, for which Record of Contract forms are processed (King County Charter Section 320.20) instead of purchase orders.

6.4.2.2 Housing and Community Development trust funds disbursed on behalf of homeowner in accordance with grant terms.

6.4.2.3 Public Safety towing and storage charges paid under the official County impoundment ordinance.

6.4.2.4 Medical services/goods covered by Worker's Compensation law (RCW 51.36), LEOFF 1 and 2 (RCW 41.26).

6.4.2.5 Witness travel and living costs for Prosecuting Attorney (RCW 2.40.010 -.030).

6.4.2.6 Court reporter service and transcription fees (RCW 2.32.210 - 240).

6.4.2.7 Payments for the Prosecuting Attorney's conduct of defense in County litigation (KCC 4.12.050 and RCW 36.27.020).

6.4.2.8 Travel and living expense of employees and non-employees per official policy and law (RCW 42.24).

6.4.3 Purchases of a nature which do not lend themselves to the competitive procurement process or issuance of a purchase order/contract.

6.4.3.1 Utility billings, such as water, electricity, telephone (only local services and SCAN).

6.4.3.2 Postage, shipping charges, permits, fees, tolls and licenses.

6.4.3.3 Foster care, training and professional services for the physical or mental care of persons in custody or care of a King County agency.

6.4.3.4 Registration/tuition for standardized training classes or seminars.

6.4.3.5 Memberships and contributions.

6.4.3.6 Payments to the County Fair for deposit to bank account for operating costs.

6.4.3.7 Services of "assigned counsel" for the Office of Public Defense, appointed under authority of Superior and District Courts.

6.4.3.8 Real property option payments, earnest money, purchases and related costs administered by the Property Services Division or those administered by the Department of Natural Resources for the Water Pollution Control Division or those administered by the Transit Division for itself.

6.4.3.9 Right-of-way purchases by the Department of Transportation.

6.4.3.10 Court reporter service and transcription fees (RCW 2.32.240).

6.4.3.11 Publications such as periodicals and newspapers.

6.4.3.12 Allowance or employer reimbursement payments made under on-the-job training contracts.

6.4.3.13 Parks Division payment to exhibitors/entertainers at County sponsored events.

6.4.3.14 Veterinary costs for dogs performing service work for the County.

6.4.3.15 Child care payments (e.g. clothes, rent) under Work Training Program "Support Services Purchase Approved Letter" [Private Industry Council (PIC)/Job Training Partnership Act (JTPA) Directive #4, 5].

6.4.3.16 Youth Services Department purchases for clothing and related items for persons in probation status.

7.0 PROCEDURES:

Action By: Agency/Department

Action:

7.1 Determines the need for goods, equipment, materials, supplies and services which qualify under the "Exemptions to Purchase Order Requirement".

Action By: Agency/Authorized Personnel

Action:

7.2 Check for an applicable blanket contract. The blanket contract should be used unless the blanket contract cannot provide the goods or services. Notify the Procurement or Contract Services Division of pricing discrepancies.

7.3 Determine if the provision of a good or service involves risk to the County. If so, require that the vendor provide appropriate insurance coverage. (Questions about insurance should be directed to Risk Management.)

7.4 Seek the names of Washington State certified Minority, Women and Disadvantaged Businesses. Qualified vendors are available from the State of Washington Directory of Certified Minority, Women's and Disadvantaged Business Enterprises (hard copy or on-line), King County Office of Minority/Women Business Enterprise and Contract Compliance and King County Procurement Services and Contract Division.

7.5 Select the MWBE or non-minority vendor and/or contractor; place order.

7.6 Authorize prompt payment through the following procedure:

7.6.1 Receive goods/service, packing list and invoice.

7.6.2 When the item is received immediately inspect for damage and verify that the quantity is correct.

7.6.3 Check the invoice received from the vendor against departmental records for verification of quantity and price.

7.6.4 Send completed account's payable voucher with original invoice to the Financial Management Division, Accounts Payable Section for payment.

8.0 RESPONSIBILITIES:

8.1 Each department, agency, office and division shall be responsible for assuring that adequate funds are available to cover the costs of all purchases.

8.2 The Procurement Services or Contract Services Division is responsible for maintaining and making available the following information for departments, agencies, offices and division.

8.2.1 Lists of vendors/contractors with blanket contracts for supplies/services.

8.2.2 List of vendors/contractors pre-qualified by the Minority/Women Business Enterprise and Contract Compliance Division who can perform work.

8.2.3 List of certified minority/women owned businesses who may be utilized.

8.3 The Financial Management Division is responsible for:

8.3.1 Payment of all direct vouchers.

8.3.2 Producing computer printouts of direct voucher activity by departments, offices, agencies and divisions.

8.4 Managers authorizing direct vouchers and certifying payment of those vouchers are responsible for ensuring that these procedures are followed.

8.4.1 Items may not be purchased in excess of established limits.

8.4.2 Invoices may not be split to make it appear a purchase is within established limits.

8.4.3 Items ( i.e., leases, rents, maintenance or supplies) used throughout the year may not be purchased on a weekly or monthly basis to avoid issuance of term contract/purchase order.

8.4.4 Goods and services may not be purchased from vendors/contractors who are disqualified.

8.4.5 A best effort must be made to utilize MWBE or DBE firms. This includes checking the State of Washington Directory of Certified Minority, Women's and Disadvantaged Business Enterprises for available MWBE'S, and contacting certified MWBE's to determine price and availability of the commodity in question.

8.4.6 Make sure the vendor provides appropriate insurance coverage when the provision of a good or service involves some risk to the County. Questions about insurance requirements should be directed to Risk Management.

8.4.7 Make a best effort to procure recycled/recyclable products.

8.4.8 Initiate payment process as appropriate to take advantage of prompt payment discount and to avoid late payment fee.

8.5 The Director of the Finance Department and the Internal Auditor are responsible for the yearly review of a summary report of direct voucher activity and will, along with the County Executive, determine what action will be taken should an agency, department, office or division abuse the direct voucher system.

8.6 The Department of Finance will send the following information to a particular department, office, agency or division if any preliminary audit reveals possible problems with this policy's procedures.

8.6.1 Names of vendors/contractors who should be contacted because they perform at a lesser cost.

8.6.2 Vendors not pre-qualified by Minority/Women Business Enterprise and Contract Compliance Division and who should not be utilized.

8.6.3 Minority/woman-owned businesses or disadvantaged businesses who can do the work.

8.6.4 The existence of blanket purchase orders for the same supply/service which should be used.

8.6.5 Notice to group supplies/services and submit a requisition to Procurement Services or Contract Service Division for competitive bids.

9.0 APPENDICES:

This appendix is available from the Procurement and Contract Services Division:

9.1 Voucher Form