HomeMy WebLinkAboutLetter 3May 15, 2006
Taxpayer Services
Florida Department of Revenue
1379 Blountstown Highway
Tallahassee, FL 32304-2716
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VIA CERTIFIED MAIL
ARTICLE NO. 7004 1160 0004 9030 8108
JOE ARRIOLA
City Manager
RE: Request for Technical Advisement Assistance for the Direct Purchase of Materials and Supplies from Suppliers for
Hurricane Shutters, Storm Panels and Roil -Up Doors for a General Services Administration Public Facility
Dear Sir/Madam:
This letter serves as a Request for Technical Advisement Assistance for the above mentioned subject matter. Contained below.
is a general background on the facts on hand with the framed issue along with the supporting documents attached to this letter,
Background
On November 14, 2005, the City of Miami Purchasing Department issued an Invitation for Bids (Bid No. 04-05-130; See
Attachment "A") for the installation of hurricane shutters, storm panels and roll -up doors for its GSA garage facility. As part
of this bidding process, twenty-five (25) vendors were notified and only one (1) bid response was received from Hurricane
Protection Industries, LLC,
The City of Miami Procurement Code Section 18-85, (h), Award, states that "in the event only one bid is received, the City
may award to the sole bidder, negotiate for better pricing or may re -bid, whichever is in the best interest of the City." In this
case, since hurricane season is fast approaching us, the Purchasing Department determined that it was in the City's best interest
to negotiate pricing with the sole bidder. As part of the negotiation process, the sole bidder, Hurricane Protection Industries,
LLC, provided the City a best and final offer, which entailed reducing the bid price for items one thru five (See Attachment
"B") from $1,090,892 to $769,430 under the condition that the City purchase directly the materials and supplies from its
suppliers to eliminate any mark-up in pricing and avoid paying sales tax for those materials and supplies.
Question
Does the City of Miami meet the statutory requirements and qualify for the direct purchase sales tax exemption under Florida
Statute, Section 212.08 (6), even though the Invitation for Bids (Bid No. 04-05-130) for the installation of hurricane shutters,
storm panels and roll -up doors for the City of Miami General Services Administration Public Facility omitted language
indicating that the City will directly purchase materials and supplies from the lowest responsive, responsible bidder's suppliers
to avoid paying sales tax, but the City's Procurement Code allows for negotiating better pricing under the scenario when only
one bid is received; and as a result, the City and Contractor has agreed that the City will issue its own purchase orders directly
to the suppliers; provide suppliers with a copy of the City's Sales Tax Exempt Certificate; require suppliers to invoice the City
not the contractor; pay suppliers directly; take title directly for delivered materials and supplies; and, bear the risk of loss of the
materials and supplies; to incur sales tax savings?
I look forward to a favorable opinion. If you need any further information, you can reach me via phone at (305) 416-1910 or
email at gmarcos@ci.miami.fl.us.
PO, CPPB, FCPM, FCPA
nt Officer
DEPARTMENT OF PURCHASING •
Avenue, 6'hFloor Miami, FL 33130 (305) 416-1900 Fax: (305) 416-1925 / Mailing Address: P.O. Box 330708 Miami, Florida 33233-0708
E-Mail Address: purchase®ci.miami.fl.us Website: http://ci.miami.fl.us