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Facilities staff describe owner-direct purchase process and vendor-approval hurdles for surtax projects
Summary
Marion County facilities staff described the owner-direct purchase (ODP) process used to save sales tax on construction materials, explained a shift to a single initial deductive change order tied to a project GMP, and said vendor-approval paperwork and Sunbiz requirements slowed early implementation but are improving.
Yvonne Boomback, Marion County Public Schools facilities director, briefed the surtax oversight committee on owner-direct purchase (ODP) procedures for construction projects and steps taken to speed and simplify the process.
Boomback explained that under the ODP model the district issues purchase orders directly to approved vendors for materials and pays vendors after confirming delivery. Historically the district processed many small deductive change orders to remove material from a contractor's guaranteed maximum price (GMP); the district now typically issues a single deductive change order at the start of a project estimating the aggregate ODP value and frees that money for direct purchasing. "We do 1 deductive change order just estimating on on all those costs... and that frees up that money at that point," Boomback said.
She told the committee the main early hurdle was vendor requalification after a change in state requirements left previously approved vendors without up-to-date paperwork. "Because statutes changed and they had to fill out new paperwork, none of those vendors were approved vendors anymore," Boomback said. The district has added an expedited approval workflow and is expanding the approved-vendor list.
Committee members asked technical and liability questions: who signs vendor paperwork, whether regional or district managers can sign for national firms, how long vendor approval takes, whether materials can be stored off-site, and how custody of purchased items is transferred to contractors for installation. Boomback said vendor signatory rules are governed by the approved-vendor application and that legal can accept powers of attorney where appropriate. She said storage is commonly done on-site or in contractor warehouses and the district confirms delivery before payment. On liability and stewardship, Boomback said the contractor's contract continues to require care, protection and installation of materials even when the district pays the vendor directly.
Why this matters: the ODP process can save the district tax dollars on large capital projects funded by the surtax but requires robust vendor approval controls, timely paperwork and careful contract language to ensure materials are procured, protected and installed correctly.
