(A) Purchase orders. All purchase orders shall be prepared and approved prior to any purchase, except in the event of an emergency, as determined by the Town Manager. Purchase orders may be issued for purchases up to $50,000, subject to approval as set forth below.
(1) Budgeted and unbudgeted items under $10,000. Purchase orders may be issued with department head authorization for budgeted items under $10,000; unbudgeted items shall be submitted to and processed by the Finance Director prior to the goods being ordered.
(2) Budgeted items over $10,000. For budgeted items over $10,000 but less than $50,000, purchase orders must be submitted to and processed by the Finance Director prior to the goods and services being ordered.
(3) Un-budgeted items over $10,000. Unbudgeted items over $10,000 but less than $50,000 must be approved by the Town Manager before the goods or services are ordered. Any request for an unbudgeted item must include verification that there are funds available in the department’s budget to absorb the unbudgeted cost.
(4) Purchases requiring Council approval. Any purchase of goods or services over $50,000 requires Council approval.
(5) Town Attorney approval. Purchase orders for goods shall be in a form approved by the Town Attorney. Purchases of services, regardless of amount, must be approved by the Town Manager or designee, on forms approved by the Town Attorney.
(6) Contingency funds. Purchases requiring the use of contingency funds may be approved by the Town Manager up to $25,000. Council approval is required for all purchases requiring the use of contingency funds totaling $25,000 or more.
(B) Oral bids. For purchases of goods or services totaling less than $2,500, any number of oral or written bids is sufficient. For purchases of goods and services totaling more than $2,500, but less than $10,000, 3 informal written bids shall be obtained whenever possible.
(C) Written bids. For purchases of $10,000 up to $50,000 for goods or services, 3 written bids shall be obtained. In some cases, it may be impossible to obtain 3 written bids, in which case, as many bids as practical shall be obtained. The bids received shall be submitted with the purchase order.
(D) Formal purchases.
(1) Purchases over $50,000. The procurement of supplies and services when the estimated total annual value will exceed $50,000 shall be made using a written invitation for bids (IFB), a request for proposals (RFP), a request for qualifications (RFQ), except as otherwise provided in this chapter or any method permitted by A.R.S. Title 34. The using department’s director, with the approval of the Town Manager or designee, shall determine which procurement method (RFP, RFQ or IFB) will be most practical and advantageous to the town for the procurement of the supplies or services.
(2) General.
(a) Notice of an IFB, RFP or RFQ shall include a description of the goods or services required, shall state where the IFB, RFP or RFQ forms and specifications may be obtained, the deadline for submitting a bid, proposal or submittal, and shall include the location for opening the bids, proposals or submittals. The notice of an IFB, RFP or RFQ shall be published pursuant to the procedures set forth in A.R.S. § 39-204.
(b) Unless specifically required by Title 34, the Town Manager or designee or using department director shall have authority to require that a bid or proposal guarantee be submitted with any and all bids or proposals, and performance bonds and payment bonds be submitted prior to execution of any contract.
(c) Late bids, proposals or submittals shall be rejected and returned unopened to the bidder or proposer.
(d) The due date and time for bids, proposals or submittals may be extended by the Town Manager or designee after the published due date if the Town Manager or designee determines it is in the town’s best interest.
(e) The IFB, RFP or RFQ may be delayed or cancelled by the Town Manager or designee if the Town Manager or designee determines it is in the town’s best interest.
(f) If the Town Manager or designee anticipates that a multiple award will be made, and it is in the town’s best interest to do so, the IFB, RFP or RFQ will include a notification of the intent of the town to make such an award, in whole or in part by line item or group of items, and the criteria upon which such an award will be based. A multiple award will be limited to the least number of vendors necessary to meet the requirements of the town’s using department(s).
(g) The Council shall have the authority, in its discretion, to refuse an award to any bidder or proposer who is in default on the payment of taxes, licenses or other moneys due the town at the time set for opening the bid, proposal or submittal. All bidders and proposers must be in compliance, at the time set for opening the bid, proposal or submittal, with all applicable state licensing laws, rules and regulations.
(h) Awards resulting from an IFB, RFP and RFQ require Council approval. Council may reject all bids, proposals or submittals at its sole discretion.
(i) No contract or procurement shall be subdivided to avoid procurement policy requirements.
(j) Renewable annual contracts for supplies purchased in large quantities may be awarded subject to annual budget appropriation by the Council. The value of such contracts shall be calculated as if all term extensions are exercised.
(k) If 2 or more bids received pursuant to an IFB are for the same total amount or unit price, quality and services being equal, and if the public interest will not permit the delay of re-advertising for bids, the Council shall determine the successful bidder by lot.
(l) A contract for professional services shall not be awarded to any person or firm who participated in the preparation or evaluation that RFP or RFQ.
(m) Formal purchase procedures may be waived with approval of the Council, except for contracts subject to Title 34 of the Arizona Revised Statutes.
(3) Invitation for bids (IFB).
(a) An IFB shall include a description, all contractual specifications, terms and conditions applicable to the procurement and, for projects governed by A.R.S. Title 34, Chapter 2, all information set forth in A.R.S. § 34-201.
(b) Bids shall be opened publicly at the time and place designated in the IFB. The amount of each bid, and such other relevant information as may be specified by the Town Manager or designee or using department’s director, together with the name of each bidder shall be recorded. A tabulation of all bids received shall be posted in Town Hall for public inspection after the bid opening. Trade secrets or other proprietary data designated in the bid as such shall remain confidential unless otherwise required to be disclosed pursuant to public records law.
(c) After bid opening, any changes to bid prices or other provisions of bids or withdrawal of bids that are prejudicial to the interest of the town or fair competition shall not be permitted. All decisions to permit the correction of a bid mistake, to permit withdrawal of any bid based on a bid mistake or, to cancel an award based on a bid mistake after bid opening shall be supported by a written determination made by the Town Manager or designee.
(d) The contract shall be awarded to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and criteria set forth in the IFB. In making the determination of the lowest responsible and responsive bidder, the Council may consider the following:
1. The ability, capacity and experience of the bidder, its employees and subcontractors to perform the contract.
2. Whether the bidder can perform the contract promptly, within the time specified, without delay or interference.
3. The quality of performance of previous contracts.
4. The sufficiency of the financial resources of the bidder to perform the contract.
5. The quality and adaptability of the materials, supplies or services to the particular use required.
(e) If an award is not made to the lowest bidder, a statement of the reason for not awarding to the lowest bidder shall be given in writing and be placed in the contract file.
(4) Requests for proposals (RFP) and requests for qualifications (RFQ).
(a) Proposals for which price will be considered shall be solicited through an RFP. Submittals based entirely on qualifications shall be solicited through an RFQ.
(b) Proposals and submittals shall be opened publicly at the time and place designated in the RFP or RFQ. The name of each proposer shall be publicly read and recorded. Trade secrets or other proprietary data designated in the proposal as such shall remain confidential, unless otherwise required to be disclosed by the public records law.
(c) Discussion may be conducted with responsive proposers who submit proposals or submittals determined to be reasonably susceptible to being selected for award for the purpose of clarification to ensure full understanding of, and responsiveness to, the solicitation requirements. Proposers shall be accorded fair treatment with respect to any opportunity for discussion and revision of proposals or submittals and such revisions may be permitted after submissions and before award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals or submittals from competing proposers during the negotiation process. Where permitted in the RFQ or SOQ, and if the Town Manager or designee believes it would be in the best interest of the town to require proposers who are determined to be reasonably susceptible to being selected for award of a contract, the Town Manager or designee may require such proposers to submit their best and final offers, whether or not the scope has been revised.
(d) For an RFP, the award shall be made to the responsible and responsive proposer whose proposal is determined, in writing, to be the most advantageous to the town and best meets the overall needs of the town taking into consideration the evaluation of factors set forth in the RFP and this division (D)(4)(d). The town is not bound to award the contract to the lowest priced RFP. No other factors or criteria may be used in the evaluation other than as set forth in the RFP or the following:
1. Price.
2. The ability, capacity and experience of the proposer, its employees and subcontractors to perform the contract.
3. Whether the proposer can perform the contract promptly, or within the time specified, without delay or interference.
4. The quality of performance of previous contracts.
5. The sufficiency of the financial resources of the proposer to perform the contract.
6. The quality and adaptability of the materials, supplies or services to the particular use required.
7. The number and scope of conditions attached to the proposer’s offer, and conformance of the proposer’s offer to material aspects of the RFP.
(e) For an RFQ, the award shall be made based upon the factors in the RFQ and division (D)(4)(d)2. through 7. above.
(E) Adoption of selected provisions of the State Procurement Code. Pursuant to A.R.S. § 41-2501(C), the town is permitted to adopt all or any part of the State Procurement Code and abide by its rules in the procurement of goods and services. When such provisions have been adopted, they will be specifically set forth in this code.
(F) Contracting authority. The Town Manager or designee may approve, and shall execute, all contracts in amounts less than $50,000. All contracts for purchases totaling $50,000 or more shall be approved by the Town Council and executed by the Mayor or the Town Manager. The Town Manager is also authorized to execute, without further Town Council approval, amendments to contracts approved by the Town Council so long as such amendments do not, individually or collectively, exceed $50,000.
(2020-884, passed 8-11-2020)