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City of Richmond
Sole Source Justification
THIS FORM MUST BE COMPLETED AND APPROVED PRIOR TO ANY PURCHASE Contact the Purchasing Division and discuss your rationale before completing this form. If Purchasing cal elp vou make this a competitive purchase, then this form will not be required Attach this completed/approved form to requisitions when competitive quotes/bids/proposals are not solicited. (Required for requisitions > $3,000)
Requested Sole Source Supplier:
Company Name: Badawi & Associates Contact Name: Ahmed Badawi Address: 2855 Telegraph Avenue, Suite 312
City: Berkeley State: CA Zip Code: 94705
Phone Number (510) 768-8224 E-Mail [email protected]
Duration of Contract: 3 Year
Estimated Cost: $ 1,005,783.00 Funding Source (Account String) 01172015-400215 Is the product/service IT related? Yes No X If Yes, please attach the approved IT Authorization Form For Product: Is the recommended company the manufacturer of the product? Yes No X For Product: Does the manufacturer sell the items) through distributors? Yes_ No X Description of Product or Service:
Describe the full scope of work or service contemplated including installation if required; items should include brand, model and part number if applicable; (if additional space is needed, include them in a separate page) Badawi & Associates is is a full service auditing, tax, accounting and business consulting firm located in Berkeley, California. The scope of service is for Badawi & Associates to (1) perform financial audit for the City of Richmond for Fiscal Year(FY) 2024-25, 2025-26, and 2026-27 and (2) perform capital grant audit for Richmond Housing Authority(RHA) for each of the eight fiscal years ending June 30, 2014 through June 30, 2021.
Sole Source Rationale: PLEASE ANSWER ALL THE FOLLOWING QUESTIONS: Explain why the recommended company is the only company that can meet the requirement. Address the following: Are there any other companies who can do this job? What condition (e.g. technological superiority, or performance risks, etc.) exists so that the recommended company has a significant advantage over any other company who can do this job? It is important to sufficiently address the key reason for awarding an order/contract without soliciting competitive bids. The rational must be clear and convincing, avoiding generalities and unsupported conclusions.
Badawi & Associates has been the City's external auditor for the past five years, consistently delivering satisfactory service. Their deep understanding of the City's financial operations and processes has allowed them to execute their audits effectively. Currently, they are under contract to perform the financial audit for the City of Richmond starting from FY 2019-20 through FY 2023-24. The scope of work under contract also includes a separate annual audit and single audit for the RHA for the same time period. Badawi & Associates has just started the RHA audit for FY 2019-20.
Introducing a new auditor at this stage presents a significant risk. In a previous instance, an auditor took over two years to complete one RHA annual audit due to reallocating resources away from our projects, which eventually required intervention by the Attorney's Office to resolve. In comparison, the annual audit for the City takes an average of seven months to complete. This example highlights the risks of transitioning auditors when they still have outstanding work under contract. There is also the potential for additional delays if an incoming auditor lacks familiarity with the City's unique requirements. To mitigate these risks, it is critical to continue with Badawi & Associates, as they are fully committed and equipped to allocate the necessary resources for the timely completion of all our audits by June 30, 2028. A transition at this time would not only delay the audit process but could also compromise the quality and reliability of the audit outcomes. Therefore, we request amending/extending the current contract with Badawi & Associates to ensure business continuity, reduce performance risk, and uphold the City's financial accountability. (if additional space is needed, include them in a separate page) Page | 1 Sole Source Form - Rev. May 12, 2016
Complete the following checklist
A specific contractor is the only source of the required item because (check all that apply):
The required items are proprietary to the Contractor, and contractor solely transacts (sells) direct to the customer. (There are no dealers or distributors for contractor).
The required items are proprietary to the Contractor, and contractor does not sell direct to the customer. Contractor solely distributes the item or service through only one dealer or distributor in the United States. (There are no dealers or distributors for contractor).
Note: If item or service is available from more than one source, the item or service may be treated as proprietary, but must be competitively solicited from multiple (two or more) sources.
A specific item is needed:
To be compatible or interchangeable with existing hardware As spare or replacement hardware For the repair or modification of existing hardware Federal or state grant names vendor as condition of funding. (Attach copy of grant that names vendor)
There is a substantial risk in contracting with any other contractor, (e.g., only one contracto has been successful to date in implementing a difficult manufacturing process or the services sought). In a brief explanation, provide supporting evidence of why other contractors are considered to be unable to overcome the substantial risk.
The substantial risk associated with switching auditors lies primarily in the transition when there is a backlog in audits for RHA. An new incoming auditor may not have the historical knowledge and established workflows necessary to conduct the audit with the same efficiency and depth as Badawi & Associates. The new auditor would require time to familiarize themselves with the City's complex financial operations, which could result in more delays and potentially compromising the quality of the audit.
Continuation of prior Work - Additional item, service or work required, but not known to have been needed when the original order was placed with vendor, and it is not feasible or practicable to contract separately for the additional need. Provide brief explanation and supporting evidence.
There is a backlog of audits for RHA due to a poor transition in the past. It is not practical to contract separately for the City's other auditing needs when Badawi & Associates have outstanding audits to be completed for the RHA.
(if additional space is needed, include them in a separate page) 2 | Page
I acknowledge the City's requirements for soliciting competitive quotes/bids for purchases over $3,000.00 and the criteria for justification for Sole Source purchases. I have gathered the required information, have made a concerted effort to review comparable/equal equipment/services (e.g., market research), and further affirm that there is no conflict of interest involved in the selection made.
Department: Finance Department
Requester Name and Title: Jerry Chak, Accounting Manager Note: Requester must be able to defend this justification.
Date: 10/9/24 Phone: (510) 620-6569
Department Director (Print) (Sign) Date:
Submit completed form to the Purchasing Division (Prior to submission to City Manager) Finance Director:
APPROVED. So ha DATE: 1011012024
NOT APPROVED: COMMENTS:
City Manager City Clerk Attesting to Council Approval
(Under $10,000.00) (Over $10,000.00) (Copy of Minutes may be substituted) Note: Richmond Municipal Code Section 2.52.326 Sole Source Procurement requires final approval by the City Manager and/or City Council. Sole Source must be approved by Finance Director, PRIOR to Council Approval.
PROCEDURE
Sole Source purchase/service are exceptions to the normal bidding process and require a detailed justification. In processing Sole Source requests for supplies, services and/or equipment, the Purchasing Division adheres to and is governed by the principles set forth in City of Richmond Municipal Code Section 2.52.326 Sole Source Procurement.
If you are requesting a particular vendor, brand or product, you must make this fact clear on your Sole Source form.
Your request will then be restrictive and non-competitive, and will fall into a sole source category. If the sole source justification is approved, the requisition can be expedited without the normal bidding requirements.
Such a request should not be made unless you are confident that your request is reasonable and appropriately justified to meet the City's requirements and withstand any possible audit. The City's requirements and the format for submitting such requests are contained herein. Sole Source form must be signed by authorized department representatives). The certification will remain on file for audit purposes.
The following factors DO NOT apply to sole source requests and should not be included in your sole source justification. They will not be considered and only tend to confuse the evaluation process.
1. Personal preference for product or vendor.
2. Cost, vendor performance, and local service (these are generally considered award factors in competitive bidding).
3. Features which exceed the minimum department requirements. 3 Page