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(A) Advertising.
(1) All sealed bids shall be advertised not less than seven (7) nor more than twenty-one (21) days prior to the date set for opening.
(2) The date the advertisement appears shall not be counted as advertising time.
(3) Advertisements shall be published in the legal notices section of a newspaper meeting the qualifications set forth in KRS 424.120.
(4) The advertisement for bids may be placed in other publications when, in the judgment of the Mayor, such advertisement would best secure the interests of the city.
(5) If it is determined during the advertising period, that additional time should be allowed for the preparation of bids, the bid opening date may be extended by:
(a) Placing a legal notice, specifying the revised bid opening date in the local newspaper with the largest circulation. The revised bid opening date shall not be less than seven (7) nor more than twenty-one (21) days after the appearance of the legal notice; or
(b) Issuing an addendum to the invitation for bids. Such an addendum must be in writing, must be mailed or delivered to holders of the invitation for bids, and must be acknowledged on the form of proposal by each bidder submitting a bid.
(6) Extensions of bid opening date may be permitted when:
(a) Changes are made in specifications after advertisement;
(b) One (1) or more bidders notify the Mayor of discrepancies, errors, or areas requiring clarification in the specifications;
(c) Specifications require design work on the part of bidders, and when unforeseen conditions make completion of bid preparation prior to the bid deadline impossible;
(d) Strikes, disasters, or other uncontrollable factors prevent bidders from acquiring information necessary for bid preparation;
(e) Other reasons as may be determined by the Mayor.
(7) An invitation for bids may be rescinded when:
(a) Conditions leading to issuance of an invitation for bids change sufficiently to make proposed purchase unnecessary.
(b) Funds for the proposed purchase become unavailable.
(c) It becomes apparent that no bids will be received because:
1. The item or service requested is currently unavailable;
2. Bid prices will apparently exceed available funds;
3. Major revisions in the specifications are necessary to ensure that responsive and reasonable bids are received.
(B) Specifications and standard specifications.
(1) Definitions. As used herein the following words have the indicated meanings.
(a) SPECIFICATIONS.
A concise statement of a set of requirements to be satisfied by a product, material, or process indicating, whenever appropriate, the procedure to be used to determine whether requirements given are satisfied.
(b) STANDARD SPECIFICATION.
A specification established through a standardization process to be used for all or most purchases of a commodity or service by the city.
(2) Maximum practicable competition. All specifications use din the procurement process shall be designed to provide the maximum practicable competition consistent with the level of quality required.
(3) All specifications shall be in a standard format and approved by the Mayor.
(4) Specifications shall be as open and accurate as conditions permit. Any restrictive element shall require written justification by the using agency.
(5) The appropriate type of specification, as described below, shall be used for each purchase.
(a) Design specifications describe how an item is to be manufactured or built. This type of specification is particularly suitable for construction projects.
(b) Performance specifications describe the capabilities of the item to be purchased. Criteria are developed to measure the ability of the item to be purchased to perform or last.
(c) A combination of design and performance specifications may be used when appropriate.
(d) Brand name or equivalent specifications may be used only when other types of specifications are inappropriate or unavailable. If brand name or equivalent specifications are used, the specification must: specify more than one (1) brand name if possible; specifically state that an equivalent product may be supplied. The burden of proof of equivalency shall be on the proposing vendor; set forth all salient criteria to be met by all products proposed.
(6) The Mayor may, when appropriate for the anticipated procurement, establish a Qualified Products List and may use such Qualified Products List in place of detailed specifications.
(a) The Mayor shall establish the criteria to be met by any product proposed for inclusion on a Qualified Products List, and shall make those criteria available to the public and to interested vendors.
(b) A bidder may, in response to an invitation for bids issued on the basis of a Qualified Products List, proposed to furnish a product not included on the Qualified Products List if he demonstrates, prior to the award of a contract and to the satisfaction of the Mayor that the product proposed meets all criteria established for inclusion on the Qualified Products List.
(C) Use of forms. All bids shall be submitted on forms provided by the city. Bids submitted on other forms may be rejected as nonresponsive.
(D) Use of bid price or evaluated bid price. Bid shall be awarded to the responsible bidder who submits the responsive bid for the lowest bid price or lowest evaluated bid price.
(1) If bid is to be awarded on the basis of lowest bid price, the method of award shall be clearly stated in the invitation for bids.
(2) If the bid is to be awarded on the basis of lowest evaluated bid price, the evaluation criteria to be used, along with applicable formulas or computation methods shall be clearly stated in the invitation for bids.
(E) Withdrawal of bids. No bid, once submitted, may be withdrawn before the time allowed for acceptance stated in the invitation for bids has elapsed unless:
(1) Bids have not been opened and a written request is received from a bidder for withdrawal of his/her bid more than twenty four (24) hours before the date and time set for opening.
(2) An error has been made that is obvious on the face of the bid (for example, error in extensions, arithmetical errors, and the like).
(3) The bidder can demonstrate from worksheets or other documents that an error has been made in preparation of the bid documents.
(4) Request for withdrawal of a bid is made in writing to the Mayor clearly stating the reason for the request for withdrawal. Any bid withdrawal except under the circumstances set forth herein shall require forfeiture of bid security.
(F) Waiver. The Mayor may waive any informalities and may establish conditions under which such incomplete bids may be considered if it is determined that such waiver is in the best interest of the city.
(G) Opening time for bids.
(1) An opening time for each bid shall be stated in the advertisement and invitation for bids.
(2) The time set for opening shall be established by a clock in the office of the Mayor or his designee. It shall be the bidder's responsibility to assure that his/her bid is in the office before the time set for bid opening.
(3) The Mayor shall, at the time set for opening bids, declare bids to be closed and shall publicly open all bids submitted. If the structure of the invitation for bids permits, all bids submitted shall be read aloud.
(4) Bids shall not be examined, inspected or reviewed by persons present at the opening until all bids have been opened.
(5) The Mayor shall, with reasonable promptness, prepare a tabulation of all bids received in response to an invitation for bids and shall make such tabulation available to the public upon reasonable request.
(H) Evaluation and awards.
(1) Immediately after bids are opened, the Mayor, or his designee, shall review all bids for compliance with specifications, terms and conditions.
(2) The Mayor, or his designee, shall forward copies of all bids received to the head of the using agency. The head of the using agency shall submit his recommendation for acceptance of a bid or bids to the Mayor upon request.
(3) Every bidder shall, when requested by the purchasing official responsible for the particular procurement, clarify or explain in writing, any matter contained in his bid which the purchasing official determines needs clarification or explanation. The bid of any bidder who fails to provide such written clarification or explanation of his bid when such clarification or explanation is requested shall not be considered for award. The written clarification or explanation of a bid shall be incorporated in and become part of any contract awarded on the basis of that bid.
(4) Alternate bids will be considered for award only if the invitation of bids specifically requests that alternates be submitted and establishes conditions under which alternate bids will be considered for award.
(5) After a reasonable evaluation, a contract shall be awarded to the responsive and responsible bidder whose bid (or alternate bid, if alternates are requested in the invitation for bid) is either the lowest bid price or the lowest evaluated bid price as designated in the invitation for bids as the basis for award of the contract.
(6) If the Mayor determines, in writing, that no satisfactory bid has been received, all bids may be rejected and new bids may be invited on the basis of the same or revised specifications, or competitive negotiations may be undertaken for the procurement. The basis for rejection of all bids and subsequent action taken with respect to the invitation for bids shall be recorded in writing and filed in the bid file relating to the particular procurement.
(I) Rejection of bids. The Mayor reserves the right to reject any and all bids and to waive technicalities and minor irregularities in bids. Grounds for the rejection include, but shall not be limited to:
(1) Failure of a bid to conform to the essential requirements of an invitation for bids;
(2) Failure to conform to specifications contained in or referred to in any invitation for bids unless the invitation authorized submission of alternate bids and the alternate proposal meets the requirements specified in the invitation for bids.
(3) Failure to conform to a delivery schedule established in an invitation for bids.
(4) Imposition of conditions which would modify the terms and conditions of the invitation for bids, or which would limit the bidders liability to the city, under terms of the contract awarded on the basis of such invitation for bids.
(5) Failure of a bid, as determined in writing by the Mayor to be reasonable in price.
(6) Determination that a bid was submitted by a bidder determined to be not responsible.
(7) Failure to furnish a bid guarantee when such a guarantee is required by an invitation for bids.
(J) Bid conditions. The Mayor shall adopt and revise as necessary, general conditions for bidding. The general conditions for bidding shall be applicable to, include in, or incorporated by reference in all invitations for bids issued by the city. The Mayor may, as required by a particular procurement, develop and adopt special bid conditions supplemental to the general bid conditions. Any bidder who submits a bid in response to an invitation for bids shall be deemed to have agreed to comply with all terms, conditions and specifications of such invitation for bids.
(K) Contract pricing. The following matters shall be applicable to all invitations for bids issued, bids submitted, and contracts awarded for the purchase of commodities, supplies and equipment pursuant to KRS 45A.365 and this regulation. Discounts shall not be considered unless stated in invitation for bids. In case of discrepancy in the extension of a price, the unit price shall govern over the total price for all items. An award may be made to the lowest aggregate bidder for all items, group of items, or on an individual item basis, whichever is deemed to be in the best interest of the city. The methods and bases of evaluation of bids and award the contract shall be stated in the invitation for bids.
(Ord. 79-336, passed - -)
(A) Competitive negotiations may be used for a procurement when:
(1) The particular procurement is of such a complex nature or includes such technical detail that specifications cannot be fairly objectively prepared to permit competition by sealed bids.
(2) The particular procurement is for high technology equipment available from a limited number of sources of supply and for which specifications cannot practically be prepared except by reference to the specifications of the equipment of a single source of supply.
(3) The Mayor determines in writing that conditions permitting contracting by competitive negotiation pursuant to KRS 45A.370 and KRS 45A.375 exist.
(B) When the Mayor determines in writing that competitive negotiation is necessary to carry out a particular procurement, competitive negotiations shall commence by advertisement of a request for written proposals as provided in KRS 45A.370.
(C) A request for proposals shall include:
(1) A request by the local government for proposals pursuant to KRS 45A.370 and 45A.375.
(2) A statement of the work required.
(3) Desired performance schedule.
(4) Available government-furnished property, if any.
(5) Applicable provisions to be included in the contract if awarded.
(6) Criteria that will be used to evaluate proposals received.
(7) Where and how detailed specifications may be obtained.
(8) Required time and place for submission of offers.
(D) All written proposals received by the Mayor in response to a request for proposals shall be kept secure and unopened until the date and time set for opening.
(1) Proposals not clearly marked as such on the envelope in which proposal is submitted may be opened for identification purposes, appropriately identified and resealed until the time for opening proposals.
(2) Proposals shall be opened on the date and at all time set for opening.
(3) Proposals for competitive negotiations shall not be subject to public inspection until negotiations between the city and all offerers have been concluded a contract awarded.
(E) The Mayor shall examine each written proposal received for general conformity with the advertised terms of the procurement.
(1) The Mayor shall determine in writing based upon individual review, those proposals received from responsible offers that constitute a reasonable basis for negotiation. Each such offerer shall be contacted informally and a meeting scheduled for discussion of the offerers' proposals.
(2) Discussions need not be conducted under the circumstances of or relative to the topics enumbered in KRS 45A.370(3)(a)(b)(c).
(3) Discussion with offerers shall be held informally orally, in writing, or both orally and in writing, as determined by the Mayor to be most advantageous to the city.
(4) If, after discussion with all responsible offerers have concluded, it is determined that no acceptable proposal has been submitted, any or all proposals may be rejected and, in the discretion of the Mayor, new proposals may be requested as provided in this regulation on the basis of the same or revised terms, or the procurement may be abandoned.
(F) The Mayor shall prepare a written summary of all oral discussions in competitive negotiations setting forth the date or dates of discussions with all responsible offerers and the general substance of the discussions. Verbatim records of the discussion shall not be required.
(Ord. 79-336, passed - -)
(A) Non-competitive negotiations may be used only after a written determination by the Mayor that the requirements of KRS 45A.380 are met and;
(1) Competition for the particular procurement is not feasible ; or
(2) An emergency exists with respect to the particular procurement.
(B) The use of non-competitive negotiations shall be limited to the following items:
(1) Services or goods actually required during the emergency.
(2) Services provided by a public utility or pursuant to a franchise awarded according to law.
(3) Goods, services, equipment, publications, subscriptions, memberships, instructional materials and works of art available from a single source.
(4) Special supplies or equipment required for laboratory or experimental studies.
(5) Services from non-profit agencies who provide such services for the benefit of the citizens of the city.
(6) Contractual services from licensed professionals, provided, however that this provision shall not apply to architects or engineers providing construction management services rather than professional architect or engineer services.
(7) Real property or an interest in real property.
(8) Fresh vegetables, fresh meat, fish and poultry, and fresh dairy products procured on a weekly or more frequent basis.
(9) Services, goods, or equipment from the Commonwealth of Kentucky, its political subdivisions, or the Government of the United States.
(10) Services, goods or equipment available under terms of a Commonwealth of Kentucky Price Contract established for all state agencies.
(Ord. 79-336, passed - - )
(A) The Mayor shall determine the need for any item requested and whether or not the contract is for less than two thousand five hundred dollars ($2,500) and the expenditure is provided for in the budget.
(1) Procurement requirements shall not be parceled, split, divided or purchased over a period of time in order to meet the dollar limitations for small purchases.
(2) The Mayor shall obtain three (3) price quotes from vendors and select the one (1) most advantageous to the city.
(B) The Mayor shall maintain records of all small purchases.
(Ord. 79-336, passed - - )
(A) Multiple contracts may be awarded on the basis of a single invitation for bids or after competitive negotiations when it is determined in writing by the chief executive officer, in advance of the invitation for bids or the advertisement and solicitation for proposals for competitive negotiations that the award of multiple contracts is in the best interest of the city, provided its needs are met at a reasonable cost. A determination and notice to potential offerers that multiple contracts may be awarded for any procurement shall not preclude the award of a single contract for such procurement.
(B) When it is determined after evaluation of competitive bids or the close of competitive negotiations, that acceptable bids or offers have been received for only part(s) of the requirements of the procurement:
(1) A contract may be awarded for the part(s) of the procurement for which acceptable bids or offers have been received.
(2) All bids or offers may be rejected and a new invitation for bids or request for proposals based on the same or revised terms, conditions, and specifications may be issued.
(3) All bids found unacceptable for part(s) of the procurement may be rejected and an invitation for bids or request for proposals, based on the same or revised terms, conditions and specifications for the part(s) of the procurement for which no acceptable bids were received may be issued.
(Ord. 79-336, passed - - )
(A) The Mayor shall be authorized to provide, by appropriate clauses to contracts for supplies or services of all types for changes and modifications to such contracts and providing for the method or methods of calculating the costs of any decrease, increase, or other change in the contract price resulting from such change or modification.
(1) In contracts for the purchase of fixed amounts of commodities, supplies, and equipment, increases in quantities in excess of ten percent (10%) of the original quantity fixed by contract shall not be permitted unless the invitation for bids or requests for proposals for competitive negotiation informed prospective bidders or offerers that an increase in quantities might be forthcoming.
(2) Increases in unit prices shall not be permitted in such contracts for increased quantities except as provided by a price escalation formula authorized by the invitation for bids or request for proposals for competitive negotiations.
(3) All changes or modifications to contracts for the purchase of commodities, supplies, equipment and construction services shall be effected by an advice of change in order to the contract which shall be supported by a written determination documenting the reason and basis for the change or modification to the contract.
(4) A copy of the advice of change in order and the supporting documentation relative to any change or modification to a contract shall be filed and maintained in the contract file.
(B) Every contractor to whom a contract containing clauses authorizing changes or modifications to the contract shall be deemed by acceptance of the contract to have agreed to the changes or modifications of the contract as provided therein.
(C) Any contractor who is determined in writing by the Mayor to be in breach of any of the terms and conditions of a contract may in the discretion of the Mayor be declared in default and such contract may be terminated for any of the following:
(1) Failure to perform the contract according to its terms, conditions and specifications.
(2) Failure to make delivery within the time specified or according to a delivery schedule fixed by the contract.
(3) Late payment or non-payment of bills for labor, materials, supplies or equipment furnished in connection with a contract for construction services as evidenced by mechanic’s liens filed pursuant to the provisions of KRS Ch. 376, or letters of indebtedness received from creditors.
(4) Failure to diligently prosecute the work under a contract for construction service.
(D) The city shall not be liable for any further payment to a contractor under a contract terminated for the contractor’s default after the date of such default except for commodities, supplies, equipment, or services delivered and accepted on or before the date of default and for which payment had not been made as of that date.
(1) The contractor and/or his surety, if a performance or payment bond has been required under the contract, shall be jointly and severally liable to the city for all loss, cost or damage sustained as a result of the contractor’s default.
(2) A contractor’s surety’s liability shall not exceed the final sum specified in the contractor’s bond.
(E) The city shall be authorized to terminate for its own convenience all contracts for the procurement of supplies and services when the Mayor determines in writing that such termination will be in the best interest of the government.
(1) When it has been determined that a contract should be terminated for the convenience of the city, the Mayor is authorized to negotiate a settlement with the contractor according to terms deemed just and equitable.
(2) Compensation to a contractor for lost profits on a contract terminated for convenience of the city shall not exceed an amount proportionate to the sum that the contractor’s total expected margin of profit on the contract bore to the contract price, based on the total out-of-pocket expense incurred by the contractor as of the date of termination of the contract. The contractor shall have the burden of establishing the amount of compensation to which he believes himself to be entitled by the submission of complete and accurate cost data employed in submitting his bid or proposal for the contract, and evidence of expenses paid or incurred in performance of the contract from the date of award through the date of termination.
(Ord. 79-336, passed - - )
(A) Each bidder responding to invitations for bids for construction contracts estimated to exceed two thousand, five hundred dollars ($2,500) or to other invitations for bids wherein bid security is required shall submit required security with his bid.
(1) Bidders security shall be in the form of a bond, executed by a surety company authorized to do business in the Commonwealth of Kentucky, or the equivalent in cash in a form acceptable to the city.
(2) Bidder’s security shall be in an amount equal to at least five percent (5%) of the amount bid. The city may require that bidder’s security be furnished in an amount greater than five percent (5%) of the amount bid.
(3) When a bidder fails to comply with the security requirement of an invitation for bids, his bid shall be rejected except under exceptions provided in these regulations.
(B) Every contractor to whom it is proposed to award a contract for construction services costing more than two thousand, five hundred dollars ($2,500) shall, prior to the award of such contract, give a bond or bonds to the city as obliged, in a form satisfactory to said government and executed by a surety company authorized to do business in the Commonwealth of Kentucky. Bond or bonds shall be in a penal sum equal to one hundred percent (100%) of the contractor price, as it may be increased, and shall bind the contractor, as principal, and the surety to the performance of the contract according to the terms, conditions and specifications of the contract, including changes and modifications thereto, and to the payment of all costs for labor, materials, equipment, supplies, taxes, and other proper charges incurred or to be incurred in performance of the contract.
(C) Every contractor to whom it is proposed to award a contract for the purchase of commodities, supplies, equipment or services shall, when required by the terms of an invitation for bids, request for proposals, give bond with surety satisfactory to the city, in a penal amount not to exceed one hundred percent (100%) of the contract price. The actual amount of the bond required will be that determined by the Mayor as sufficient to assure faithful performance of the contract by the contractor according to its terms.
(D) A contract shall not be awarded to any contractor who fails or refuses to give bond when required as provided by KRS 45A.435 and this regulation.
(E) All bonds required by these regulations shall be in such form as is directed by or acceptable to the Mayor.
(Ord. 79-336, passed - - )
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