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© 2020 CDM Smith 6706-250111 All Rights Reserved November 2020 ARTICLE 10 DIRECT PURCHASE PROCEDURES. 10.1 Administrative guidelines governing the taxability of materials purchased for public works contracts, such as the Project under these Contract Documents, are contained in Rule 12A-1.094, Florida Administrative Code. 10.2 The exemption in Florida Statutes Section 212.08(6) is a general exemption for sales made directly to the government. A determination whether a particular transaction is properly characterized as an exempt sale to a governmental entity or a taxable sale to or use by a contractor shall be based on the substance of the transaction, rather than the form in which the transaction is cast. The determination of whether the substance of a particular transaction is a taxable sale to or use by a contractor or an exempt direct sale to a governmental entity, based on all of the facts and circumstances surrounding the transaction as a whole, is ultimately made by the Florida Department ofRevenue. 10.3 The conditions that must be met to satisfy the requirements of Rule 12A-1.094, Florida Administrative Code, and establish that Indian River County SWDD as OWNER rather than the CONTRACTOR is the purchaser of materials, include: (1) Direct Purchase Order. Indian River County SWDD as OWNER must execute the purchase orders for the tangible personal property involved in the contract, which must include the County's consumer's certificate of exemption number. The CONTRACTOR may present the County's purchase orders to the vendors of the tangible personal property. (2) Passage of Title. The Indian River County SWDD as OWNER must acquire title to and assume liability for the tangible personal property at the point in time when it is delivered to the job site up until the time it is incorporated as real property. (3) Direct Invoice. Vendors must directly invoice Indian River County SWDD as OWNER for supplies. (4) Direct Pam. Indian River County SWDD as OWNER must directly pay the vendors for the tangible personal property; and direct purchase cost plus all applicable tax will be deducted from CONTRACTOR's lump sum contract amount. (5) Assumption of the Risk of Loss. Indian River County SWDD as OWNER must assume all risk of loss or damage for the tangible personal property involved in the contract, as indicated by the County's acquisition of, or inclusion as the insured party under, insurance on the building materials. 10.4 Indian River County SWDD as OWNER desires to comply with the Direct Purchase Procedures set forth in this Article 10 for allowable purchases in an amount in excess of $5,000 (Five Thousand Dollars). CONTRACTOR agrees to cooperate with OWNER to enable OWNER to comply with the Direct Purchase Procedures set forth in this Article 10 for all such purchases. Whenever the Contract Documents conflict with the direct purchase procedures set forth in this Article 10, this Article 10 shall prevail. OWNER and CONTRACTOR shall coordinate the builder's risk coverage of each party to comply with the Direct Purchase Procedures set forth herein for such purchases. 10.5 Upon delivery of OWNER direct purchase materials to the Project site, the CONTRACTOR shall, pursuant to the Contract Documents, inspect, accept delivery of, and store OWNER direct purchase materials pending incorporation into the Project. CONTRACTOR shall forward proof of delivery Class I Landfill Segment 3 Cell I Agreement Landfill Gas System Expansion 00530-7 Indian River County, FL Issued for Bid