To provide guidance and definition of the different acquisition methods and documents used by Washtenaw County in procurement of all goods and services.
After specification development, competitive bidding and bid evaluation, a Purchase Order is processed for goods and/or services. The type of Purchase Order processed is determined by the type of commodity or service required and the term or period the purchase will be made. Types of orders and necessary documents are listed below with their particular criteria for usage.
Purchase order -- Normally processed for all purchases of material, equipment or service.
Blanket orders/price agreements -- A Purchase Order normally processed where material or equipment will be used on a frequent or repetitive schedule. This order normally covers an annual period for specific items at unit prices. Often blanket orders/price agreements include more then one using department.
Maintenance contracts -- Used to obtain maintenance and repairs to County facilities and equipment and contract must be in place before a Purchase Order can be issued. These contracts are established for a period of one to three years in duration. Contracts exceeding three years require the approval of the County Administrator and/or the Board of Commissioners. Maintenance contracts require proof of insurance by the vendor for the amounts stated by the County; Workers compensation as required by the Laws for the State of Michigan ; comprehensive general liability and automotive liability in an amount as required by the County.
Service contracts Used for any services the county needs to obtain except for maintenance and repairs. Insurance is required for service contracts.
Construction contracts -- Similar to a Maintenance Contract. Construction contracts usually define a specific task or certain construction that, when completed, signal the conclusion of the contract. Insurance requirements are as noted in Maintenance Contract and often bonding and prevailing wage are required.
Professional service contracts -- Used for the acquisition of professional services such as consultants, doctors, lawyers, nurses, architects, engineers, accountants, etc. Depending on the type of service required or the liability incurred, sufficient insurance limits may be required to cover items such as malpractice, etc., before a Purchase Order can be issued. Professional Liability insurance is required.
Change Orders -- Used as supplements to any construction contract. Changes are requested by the using Divisions and specify price changes, specification changes, shipping charges, delivery charges, installation, payment term changes, etc. Only the Purchasing Division has authority to modify a Purchase Order. If a contractor complies with an agency's request to alter a contract or purchase order without formal authorization from the Purchasing Division, the contractor may not be entitled to payment for the modified performance.
All contracts should clearly define the costs to be paid to the contractor. Additionally, a total amount or expenditure, (such as a "not to exceed" amount), and a specific hourly rate should also be included. Pricing information in sufficient detail must be provided in the contract document before a Purchase Order can be issued. If applicable, a complete schedule of labor charges may be required of the contractor.