Follow-Up for Bid Specification Requirements for Solicitations, November 2018

6 |  F o l l o w ‐ u p o f B i d S p e c i f i c a t i o n R e q u i r e m e n t s f o r S o l i c i t a t i o n s  N o v e m b e r 2 0 1 8  procurement is responsible for ensuring that the vendor has adequate insurance per SOP #34 –  Purchase Requisition Process [See OFI No. 5, Standard Operating Procedures related to Request  for Informal Quotes, page 10].   The sample of 51 solicitations tested included 45 that were processed under one of the five  procurement methods that require the procurement analyst to collect valid proof of insurance  from the awarded vendor (IFQ, IFB, RFP, RPS, and RFQ). Of these 45 solicitations, 39 included  requirements of proof of insurance and 6 did not require proof of insurance. Of the 39  solicitations requiring insurance, two (2) instances were observed where documentation  validating the awarded vendor’s required insurance was either not obtained, or was obtained  after the contract was executed.  Original Recommendations, Report dated January 2018: To ensure compliance with SOP's related to IFQ, IFB, RFP, RPS, and RFQ, develop and  implement quality assurance processes to ensure that valid proof of insurance is obtained prior  to executing a contract or entering into an agreement with the awarded bidder.  Management Action Plan:  The County’s Insurance Requirements template, included as Part III of the solicitation requires  that Contractor’s furnish Certificates of Insurance to the County prior to the commencement of  work, but not prior to issuing a Notice of Recommended Award.   “Standard Operating  Procedures (11, 19, 20, 21, 39) will be revised to require the awarded contractor to provide a  Certificate of Insurance prior to the execution of a contract or issuance of a Purchase Order,  rather than requiring the Certificate of Insurance be presented to the Procurement Official prior  to issuing a Notice of Recommended Award.