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AGENDA ITEM: Establishment of Rates for Contracts for Services with Other Government Agencies
DEPARTMENT: Board of Commissioners
MEETING: Board of Commissioners
DATE: Thursday, April 11, 2024 6:31 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-3965
Motion to 2400.X: Establishment of Rates for Contract for Services with Other Government
Agencies
PURPOSE
To ensure transparency and accountability in the establishment of rates for contracts between
Oakland County and other government agencies.
SCOPE
This section applies to all contracts negotiated between Oakland County and other government
agencies where rates are established for goods, services, or any other contractual obligations.
PROCEDURE
Approval Process: The requesting department, in collaboration with the Corporation Counsel, shall
seek approval from the Oakland County Board of Commissioners for the establishment of any and
all rates to be included in contracts with other government agencies.
Submission of Proposal: The requesting department shall prepare a detailed proposal outlining the
proposed rates, including justification for their establishment, and submit it to the Corporation
Counsel for review and inclusion in the approval request to the Board of Commissioners.
Review by Corporation Counsel: The Corporation Counsel shall review the proposed rates to
ensure compliance with applicable laws, regulations, and County policies before submitting the
request for approval to the Board of Commissioners.
Board of Commissioners Approval: Upon receipt of the proposal from the Corporation Counsel, the
Board of Commissioners shall review and deliberate on the proposed rates. The Board of
Commissioners shall approve or reject the proposed rates based on their assessment of their
appropriateness, fairness, and alignment with County objectives.
Incorporation into Contracts: Once approved by the Board of Commissioners, the established rates
shall be incorporated into contracts between Oakland County and other government agencies.
AUTHORITY
This section is established under the authority of the Oakland County Board of Commissioners as
outlined in relevant resolutions and directives.
ITEM CATEGORY SPONSORED BY
Policy David Woodward
INTRODUCTION AND BACKGROUND
Purchasing Division Policies and Procedures adopted by the Oakland County Department of
Management and Budget, initially on May 24, 1990, and revised on May 1, 2004:
Made in the USA (2400.1): Preference is given to products manufactured in the United States for
purchases of $10,000 or more, provided they are available at competitive prices and are of equal,
superior, or similar quality.
Policy for Contractual Obligations – Notification to Corporation Counsel (2400.2): Any
negotiation with the potential to incur expenditures of $500,000 or more must include the
Department of Corporation Counsel in the negotiating team.
Procurement of Materials and Supplies - $1,500.00 or Less (2400.3): Purchase orders are not
required for procurement of materials and supplies amounting to $1,500 or less, unless contractual
agreements with vendors for commodities being procured do not exist.
Execution of Contracts for County Services and Materials (2400.4): Contracts and financing
agreements for purchasing materials and services in excess of $200 must have approval and
signature from designated individuals, including the Purchasing manager or chief of Purchasing.
Contract Language (2400.5): All contracts and legal documents used in procurement must be
approved through Corporation Counsel, and any wording changes requested must be submitted to
Corporation Counsel before inclusion.
Duration of Contracts (2400.6): Guidelines for establishing uniform time periods for all contractual
agreements, with considerations for longer terms up to five years.
Contract Administration (2400.7): Guidelines for duties and responsibilities of contract
administrators regarding compliance with contractual agreements between the County of Oakland
and vendors, including procedures for contract change orders/amendments, contract compliance,
and scope of services.
Ordering – Procurement Documents (2400.8): Guidance on different types of orders used in
procurement of goods and services, including Purchase Orders, Blanket Orders, Maintenance
Contracts, and Professional Service Contracts.
Receiving (2400.9): Establishment of a uniform method for receiving and accounting for all
materials and services delivered to the County of Oakland.
Vendor Performance (2400.10): Procedure for documenting and monitoring vendor performance,
including steps to address vendor non-conformance and measures for resolution.
Professional Services Contracts (2500.1): Requires inclusion of the entire scope of services in
Request for Proposals (RFPs). Specifies that proposals and contracts must include amounts, rates,
and maximum amounts. Requires reporting to the Personnel Committee for contracts affecting
County personnel services. Requires indication of in-kind services in proposals and contracts.
Authorizes the County's Auditing Division to perform financial audits.
Maintenance Contract Guidelines (2500.2): Sets guidelines for maintenance contracts based on
equipment value.
Contracting with Individuals (2500.3): Ensures proper classification of individuals for employment
tax treatment. Requires compliance with IRS independent contractor requirements. Requires
contacting the Oakland County Department of Human Resources for determination of independent
contractor status.
Purchasing Cards (P-Cards) - Authorization to Purchase Goods (2500.4): Establishes a
purchasing card program for goods under $1,500. Specifies cardholder responsibilities, authorized
card use, unauthorized use consequences, purchasing procedures, and record retention.
Each section provides detailed procedures and guidelines to ensure compliance and
efficient procurement processes within the Oakland County Department of Management and
Budget.
POLICY ANALYSIS
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
David Woodward, Commissioner
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 4/11/2024
AGENDA DEADLINE: 04/21/2024 6:31 PM
ATTACHMENTS
None
COMMITTEE TRACKING
2024-04-03 Finance - Recommend to Board
2024-04-11 Full Board - Adopt
Motioned by: Commissioner Michael Gingell
Seconded by: Commissioner Penny Luebs
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Kristen Nelson, Christine
Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault,
Linnie Taylor (17)
No: None (0)
Abstain: None (0)
Absent: Karen Joliat, William Miller III (2)
Passed