(A) Procurement involving state or federal funds.
(1) All goods and services obtained through the use of state or federal funds shall be in compliance with applicable state and federal laws and regulations, and shall be in compliance with the mandatory requirements of the applicable agency.
(2) Whenever city policy is more restrictive than the applicable state or federal laws or regulations, the provisions of the city policy shall be followed.
(B) Freedom of Information Act. Procurement information shall be public record to the extent required by the South Carolina Freedom of Information Act (FOIA), S.C. Code §§ 30-4-10 et seq.
(C) Cooperative purchasing.
(1) The City Manager or his or her designee(s) may authorize the city and its departments to participate in a cooperative purchasing agreement for the purchase of goods and services with one or more governmental entities, by entering into an intergovernmental agreement with the other governmental entities. The purchasing laws, ordinances and policies of each entity will be considered in the intergovernmental agreement. Participation in state purchasing, as set forth above, does not require such an agreement.
(2) Whenever the city enters into an intergovernmental agreement for a joint project with the federal, state, or another governmental entity, including, but not limited to, a county, regional council of governments, special purpose district, special tax district, state authority, joint district, or public university, then the purchasing practices of the other public entity may be used in lieu of the city's own procedures, if the use is determined to be to the advantage of the city.
(D) Certificate of insurance.
(1) Contractors, vendors and professional service providers contracted by the city, prior to commencing any work under a contract with the city, shall be required to provide a duly executed certificate of insurance certifying to the city that the contractor, vendor or professional service provider has in effect workers compensation coverage valid in South Carolina and covering the workers who will be performing the work for the city. Certificates of general liability coverage and motor vehicle coverage may be required, as well as errors and omissions insurance or professional liability insurance, as required by the city. Certificates containing wording that would release the insurance company from liability in the event of non- notification of the city of any cancellation of the insurance policy shall not be acceptable. Policies shall be endorsed to include a waiver of subrogation against the city, its officers, officials, agents, and employees. Separate endorsements shall be required, naming the city as additional insured, for liability insurance and providing a waiver of subrogation for worker’s compensation insurance.
(2) At any time, if any insurance policy, or performance or payment bond required by the city is canceled before the completion of the contract, then all work shall cease until an insurance policy or bond acceptable to the city is once again provided, including gap coverage. The City Manager or his or her designee(s) may waive the certificate of insurance for professional services, but only when the lack of proof of the coverage will likely have no significant impact upon the city.
(3) Insurance coverage limits and requirements on contractual items shall be as set in the bid specifications, the invitation for bid or the request for proposals.
(E) Business licenses. Any company, person, contractor or vendor operating within and conducting business with, or on behalf of the city shall obtain a business license from the city.
(F) Women and minority business enterprises.
(1) It is city policy to provide minorities and women equal opportunity for participating in all aspects of the city's contracting and procurement programs, including, but not limited to, employment, construction projects, and lease agreements consistent with the laws of the State of South Carolina.
(2) It is further city policy to conduct its contracting and procurement programs so as to prevent discrimination and to resolve any and all claims of discrimination.
(G) Illegal Immigration Reform Act compliance. By submitting any formal bid or offering to provide goods and/or services to the city, contractors, bidders, proposes, companies and subcontractors certify that they will comply with the requirements of S.C. Code Title 8, Chapter 14 titled, “Unauthorized Aliens and Public Employment,” and agrees to provide to the city any documentation required to establish either:
(1) The applicability of such law to the contractors, bidders, proposers, companies and subcontractors (including sub-subcontractors; or
(2) The compliance with this law by the contractors, bidders, proposers, companies and subcontractors (including sub-subcontractors).
(H) Recycled products/sustainability. It is city policy to buy products with recycled content where fitness, quality, and price are not more than 5% over the cost of the equal non-recycled products.
(I) Local purchasing preference.
(1) It is city policy to promote the use of local businesses when possible. Local contractors and vendors with a valid business license from the city (for a period of at least one year from the date that bids are solicited) will have a 10% advantage unless otherwise authorized by the City Manager or his or her designee(s).
(2) Selected contractors must make every reasonable effort to purchase/lease all material, equipment and supplies associated with the awarded bid to a local business with a valid business license issued by the city.
(J) Levels of authority.
(1) Any purchase of supplies, materials, equipment or services not exceeding $1,000 may be made with the approval of the department head. Items over $ 1,000 must be purchased through the process of purchase orders. A purchase requisition for a purchase order must be filled out and submitted to the department head, with all applicable quotes and/or bids attached. Upon the department head's approval, the requisition must be submitted to the Assistant City Manager. Requisitions for budgeted items not exceeding $50,000 may be approved by the City manager, the Assistant City Manager or one of their designee(s). Requisitions for budgeted items greater than $50,000 require approval by the City Manager. All items over $100,000 and not included in the fiscal year budget must be approved by City Council.
(2) Certain recurring budgeted maintenance contracts may be approved by department heads without requiring a purchase order. Maintenance contracts exceeding $2,000 or one year in length will require the approval of the City Manager or Assistant City Manager or his or her designee(s).
(3) Department heads may approve contracts not exceeding $2,000. Three verbal or written quotes are required for contracts between $2,001 and $4,999. For purchases or contracts requiring three quotes ($2,001 through $4,999), quotation information shall accompany the requisition for purchase. Written quotes may be obtained by internet quote, fax, or email, in addition to other means.
(4) A competitive bid process is required for contracts exceeding $4,999, unless the contract is for a recurring cost or a contract renewal.
(5) The City Manager or Assistant City Manager may reject or approve bids and purchase agreements and award contracts provided all items are included in the approved fiscal year budget.
(6) Upon approval of the requisition, a purchase order is issued in five parts and distributed as follows:
(a) White: mailed to vendor;
(b) Blue: filed in accounts payable;
(c) Pink: filed with requisition copy/check copy;
(d) Green: sent to receiving; and
(e) Yellow: returned to requesting department.
(K) Source selection; exemptions.
(l) Certain items described in this subsection (K)(l)(a)-(s) below are exempt from certain purchasing requirements, including any formal bid, request for bid, request for proposal, requests for quotation or request for qualification procedures, and the city may exempt specific supplies or services from the purchasing procedures to the extent any such supplies or services qualify as described herein below:
(a) Advertising, including but not limited to advertising time or space in newspapers, on radio or television.
(b) Medical, dental and/or psychological services.
(c) Policy, legal and utility services to include but not be limited to architects, attorneys, bond rating services, retirement consultants, insurance consultants, financial consultants, land surveying, advisors, engineers, and other professional services where the person employed is customarily employed on a qualification or fee basis rather than by competitive bidding.
(d) Staff development to include but not be limited to:
1. Training provided by consultants, certified teachers/trainers;
2. Training materials;
3. Workshops, conferences, seminar registrations, etc.; and
4. Travel.
(e) Utilities and energy expenses to include but not be limited to: fuel, gas, electricity, telephone, telecommunications (phones, internet, etc.), and water/sewer.
(f) Financial advisors and fiduciary services.
(g) Emergency repairs.
(h) Mail and delivery services.
(i) Negotiations after unsuccessful competitive sealed bidding.
(j) Contracts that are specifically approved by a city ordinance.
(k) Contracts that relate to regularly purchased supplies, equipment, chemicals, or services to be used in or for the direct benefit of the city's utilities, as they now exist or may exist in the future.
(l) Sole source procurement.
(m) Emergency procurement.
(n) Leasing of real property for governmental use;
(o) Purchasing through state purchasing;
(p) Membership fees;
(q) One of a kind items.
(r) Contracts directed by the City Manager or his or her designee for professional services or employment when the City Manager or his or her designee determines that such contracts are in the best interest of the city.
(s) Purchase or sale of property used for the purpose of economic development.
(2) At the discretion of the City Manager or his or her designee, a decision may be made to require competitive sealed bids or other solicitation methods, notwithstanding the above policy.
(3) A sole source purchase may be made without competitive bidding when the purchasing agent or employee affirms, in writing, that there is only one source for the required supplies, materials, equipment or services. Written documentation must include the determination and basis for the proposed sole source purchase. In cases of reasonable doubt that there is only one such source, competitive bidding must be solicited. Any decision by the purchaser that a purchase be restricted to one vendor must be accompanied by an explanation as to why no other vendor is suitable or acceptable to meet the needs of the city.
(4) Emergency purchases may be authorized by the City Manager or Assistant City Manager or his or designee(s) when there exists an immediate threat to public health, welfare, critical economy and efficiency, or safety under emergency conditions, without following this purchasing policy. A written determination of the basis for the emergency and for the selection of the particular contractor or vendor shall be forwarded to the Assistant City Manager within five business days for review and retention.
(L) Bid procedures.
(1) The provisions of this division (L) of the purchasing policy govern the competitive bid process and may be implemented through a request for bids, request for proposals, request for quotations request for qualifications or other solicitation procedure for formal bids.
(2) Public notice of the invitation for bid shall be given not less than 15 calendar days prior to the bid opening date. Larger non-recurring purchases or projects may require additional notice before bid opening. Such notice shall be given, at a minimum, through the city's web site and/or the local newspaper and to persons and firms who have asked to be placed on a bidder’s list for a particular commodity or service. Email or fax notifications to interested potential bidders should be used to the extent possible to minimize the notification costs to the city.
(3) The invitation for bid documents shall include specifications and all other contractual terms and conditions applicable to the purchase. The invitation for bid shall set forth the evaluation criteria to be used. Each department/division shall maintain a bidder’s list for those interested in submitting bids, or who have submitted bids in the recent past, and a vendor's list for all purchases awarded.
(4) All bids received shall be kept in a secure location and shall remain unopened until the announced time of bid opening. Bids shall be opened publicly in the presence of one or more witnesses, at the time and place designated in the invitation for bids. The amount of each bid, the name of each bidder and other relevant information shall be announced and recorded by the department head or his or her designee. The record and bid tabulation shall be open for public inspection after the bids are opened, and maintained as a public record of the department in accordance with record retention policies.
(5) Contracts shall be awarded to the lowest responsible bidder. The following items shall be considered when evaluating the responsibility of the lowest responsible bidders:
(a) The ability, capacity and skill of the bidder to perform the contract or provide the service required in compliance with specifications;
(b) The ability of the bidder to perform the contract promptly or within a specified time without delay or interference;
(c) The character, integrity, reputation, judgment, experience and efficiency of the bidder;
(d) The quality of performance of previous contracts with or services provided to the city;
(e) The previous and existing compliance by the bidder with laws and ordinances relating to contracts or services;
(f) The sufficiency of the financial resources of the bidder, which may impact the ability of the bidder to perform the contract, provide the services or to meet any bonding or insurance requirements;
(g) The quality, availability and adaptability of the supplies or contractual services to the particular use required or specified;
(h) The capability of the bidder to provide future maintenance and service at a reasonable cost for the useful life of the subject of the contract;
(i) The number and scope of conditions attached to the formal bid which would vary the bid from strict compliance with the bid specifications or which would attempt to add non-conforming conditions, limitations or other provisions detrimental to the contract, as determined in the sole discretion of the city. The assertion of the conditions will likely render the formal bid nonconforming and unacceptable to the city, regardless of the bid amount;
(j) Whether the bidder has failed to fully perform prior contracts to the city's satisfaction, or is past due, delinquent or owes the city money for any reason; and
(k) The costs/price of the bidder’s services or goods.
(6) Bid payment and performance bonds or other securities may be requested for supply contracts or service contracts as the City Manager, or his or her designee(s), deems advisable to protect the city's interest. Any such bonding requirements shall be set forth in the request.
(7) For bid security, an amount equal to at least 5% of the amount of the bid shall be required for all competitive bidding for construction contracts. Bid security shall be a legitimate bid bond provided by a surety company authorized to do business in South Carolina, or the equivalent in cash, certified check, cashier’s check or money order. If a bid is initially awarded to a bidder, who subsequently fails to honor its bid for any reason, including, but not limited to, failure to timely provide required bonds or certificates of insurance coverage, or failure to proceed after receiving a notice to proceed, the bidder shall forfeit its bid bond as liquidated damges to the city and award of the bid is rescinded; thereafter, the contract for the project may be awarded to the next lowest bidder, or the project may be rebid, at the city’s sole discretion. Bidders who default in honoring a bid, or who fail to successfully complete a project in accordance with project specifications, may be prohibited from entering further bids on city projects until the bidder establishes its responsibility as a bidder to the satisfaction of the city, at its sole discretion.
(8) When a construction contract is awarded in excess of $50,000, the following bonds or security shall be delivered by the successful bidder to the city, and shall become binding on the parties upon the execution of the contract. Bid or performance bonds shall not be used in place of the determination of bidder's responsibility.
(a) A performance bond shall be in an amount equal to 100% of the contract amount; and
(b) A payment bond for the protection of all persons supplying labor and material to the contract or its subcontractors for the performance of the work shall be in an amount equal to 100% of the contract amount.
(9) Correction or withdrawal of inadvertently erroneous bids before bid opening may be authorized in the absence of the appearance of collusion among bidders, and in unusual cases, withdrawal of inadvertently erroneous bids after award or cancellation of awards of contracts based on the bid mistakes may be permitted upon approval by the City Manager or the Assistant City Manager, subject to the provisions relating to the forfeiture of bid bonds. It is the policy of the city that each bidder must bear the responsibility for the accuracy of its bid.
(10) Requests or other solicitations through the competitive bid process may be canceled when it is in the best interest of the city. This action should be supported with internal documentation sufficient to satisfy external audit and shall be made a part of the project file.
(Res. 11-003, passed 1-25-11; Am. Ord. 12-028, passed 1-22-13; Am. Ord. 2023-015, passed 6-13-23)