§ 36.08 FORMAL PROCUREMENT.
   (A)   Any procurement of goods or services exceeding $100,000 shall be awarded only after a formal competitive solicitation process unless otherwise provided for in this chapter.
   (B)   Advertising. Contracts under the formal procurement procedure shall be advertised at least once in a newspaper of general circulation, on the city's website and any other forum likely to result in competitive bids from qualified respondents. The advertisement shall include at least the following information:
      (1)   A brief description of the work to be performed or the goods or services to be purchased and where and how the complete contract terms, conditions and specifications can be obtained or reviewed.
      (2)   The date by which respondents must file applications for prequalification if prequalification is a requirement, and the classes of work for which the respondent must be prequalified.
      (3)   The scheduled closing date for the acceptance of bids, which shall be not less than 5 days after the date of the last published advertisement.
      (4)   The name, title and address of the person to whom bids should be sent or delivered.
      (5)   The scheduled bid opening date, time and place.
      (6)   If applicable, whether the contract is subject to prevailing wage rates under O.R.S. 279C.800 through 279C.870 or the Davis-Bacon Act (40 U.S.C. 276(a)), and if so that all bidders shall provide a signed statement agreeing to comply with these requirements.
      (7)   That each bid must include a signed statement as to whether the bidder is a resident bidder as provided in O.R.S. 279A.120.
      (8)   That the city may reject any bid not in compliance with all prescribed public bidding procedures and requirements, and may reject for good cause all bids upon a finding that it is in the public interest to do so.
   (C)   Requirements for bids. All bids submitted and received under the formal procurement procedures shall adhere to the following requirements:
      (1)   All bids shall be in writing, filed with the person designated to receive bids for the city and shall be opened publicly by the city at the time and location stated in the bid advertisement.
      (2)   After opening, all bids shall be filed and available for public inspection.
      (3)   All bids shall include a bid security in the form of a surety bond, cashier's check, certified check or irrevocable letter of credit from the bidder, unless the contract is exempt from this requirement. The security shall not exceed 10% of the total bid amount. The bid security shall be due and payable to the city in the event the contract is awarded to the bidder and the bidder fails to execute a contract. At the discretion of the City Manager, the city may exempt a bid from this requirement for a public improvement where the contract is less than $25,000.
      (4)   All bids shall include all of the signed statements required in the preceding division or otherwise specified in the bid advertisement, including a statement that the bidder will comply with and provide all specified work and/or materials described in the specifications.
      (5)   The First-Tier Subcontractor Disclosure Form, when required by O.R.S. 279C.370 for a public improvement contract, must be submitted to the city with the bid or proposal for that public improvement contract.
   (D)   Contract award. The following shall control the city's award of a contract under the formal procurement procedures:
      (1)   The city shall open all bids at the time and place specified, and shall subsequently award the contract to the lowest responsive and responsible bidder based on the evaluation and/or selection criteria stated in the specifications. For purposes of determining the lowest responsible bidder, the city shall add a percent increase to the bid total of a nonresident bidder equal to the percent, if any, given to that bidder in the state in which the bidder resides.
      (2)   The successful bidder shall promptly execute a formal contract with the city. If the contract is for a public improvement, the successful bidder shall execute and deliver to the city a performance sufficient bond, in a form acceptable to the City Attorney, equal to the contract price for the faithful, satisfactory and complete performance of the contract. The successful bidder shall also execute and deliver to the city a material and labor payment bond in a form and amount acceptable to the City Attorney. In lieu of a surety bond, the city may permit the successful bidder to submit a cashier's check, certified check, letter of credit or similar instrument in an amount equal to the contract price. In case of emergency or where the city's interest or property could suffer material injury by delay or other causes, the requirement that the successful bidder provide a surety bond for the contract price may be waived, in whole or in part, if the Contract Review Board makes a declaration of emergency.
      (3)   At least 7 days before the award of a public contract, the city shall provide to each bidder or proposer notice of the city's intent to award a contract. Notice shall be in writing and mailed to the address provided by the bidder or proposer. This notice requirement does not apply to emergency or special procurements.
   (E)   Rejection of bids and proposals. The city may reject any bid or proposal not in compliance with all prescribed public bidding procedures and requirements or requirements for the particular bid or proposal. The city may also reject all bids or proposals upon a finding that it is in the public interest to do so or otherwise cancel the bid request or proposal solicitation. In any case where competitive bids or proposals are required and all bids or proposals are rejected, the city may revise the project or specifications and call for new bids or proposals.
(Ord. 2013-08-02, passed 8-13-2013)