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Third Party Procurement

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Third Party Procurement
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Purchase Cards

Frequently Asked QuestionsAre purchase cards allowed by FTA?

There is no FTA prohibition on the use of purchase cards. FTA Circular 4220.1F states that grantees shall use their own procurement procedures provided that the procurements conform to applicable Federal law, including the requirements...

Protests

Frequently Asked QuestionsIt is my understanding that an award-stage protest stops negotiations on the awarded contract. Is this correct?

That is not always the case. The grantee must follow its own written protest procedures with respect to what happens when a protest is lodged during...

Proposal Stipends

Frequently Asked QuestionsIn order to encourage prospective contractors to submit offers, may a transit agency pay a stipend to the offerors to cover their cost to develop the proposal?

Yes. It is not uncommon on large, complex acquisitions to pay a stipend to cover all or part of the cost of...

Proposal Evaluation

Frequently Asked QuestionsQ. What do I need to document when evaluating proposals?

A. The Best Practices Procurement Manual (BPPM), Section 5.4 - Documentation of Procurement Actions, contains guidance on how to meet the requirements of FTA Circular 4220.1F, which requires a written...

Prompt Payment Clause

Frequently Asked QuestionsIs a prompt payment clause required in all contracts, including A&E contracts?

Grantees are required to include a prompt payment clause in all DOT-assisted contracts, including A&E contracts. The clause requires prime contractors to pay subcontractors for...

Project Labor Agreements

Frequently Asked QuestionsAre Project Labor Agreements (PLA's) allowed on federally funded projects? We have a grant for building a bus garage. The grant is over one million dollars. We recently passed a resolution stating that if a construction project is over one million dollars we must have a...

Progress Payments

Frequently Asked QuestionsOur City is in the process of putting together a solicitation for professional services and would like to add the provision of progress payments. The payments will be tied to milestones/deliverables. FTA requires that the City take title to property for which progress...

Profit

Frequently Asked Questions

Q. Can profit be a fixed percent for construction contracts?

A. As an internal policy a transit agency may determine that for certain categories of construction projects fixed percentages of profit are appropriate. However, when writing the contract, profit...

Professional Services

Frequently Asked QuestionsIs the grantee administrator of a DOT grant allowed to pay himself or herself professional fees without first soliciting bids or proposals for those services? Does the grantee have to enter into a signed contract with the terms and conditions for professional services? Our...

Pre-Qualification of Bidders

Frequently Asked QuestionsDo owners normally prequalify bidders prior to issuance of bid documentation or is this process conducted once the bid documentation is issued after a call/invitation for bids but before closing date for evaluation of proposals? What are the best practices in this regard?...