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(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 - - )
(A) The city shall not award a contract for any procurement when the contract price would exceed the funds appropriated for the procurement by the legislative body.
(B) If all bids received in response to an invitation exceed the amount appropriated for the procurement and sufficient additional funds are not authorized to permit an award to the lowest responsive and responsible bidder. The Mayor shall proceed with competitive negotiations in accordance with KRS 45A.375.
(C) An invitation for bids or requests for proposals may be advertised in anticipation of an appropriation provided such invitation or request clearly states that funds for the procurement while anticipated have not been appropriated.
(D) The Mayor may award a contract for the procurement of supplies, equipment or services for a period that exceeds the fiscal year provided the contract permits cancellation without penalty in the event that funds for the contract are not appropriated for any succeeding year.
(Ord. 79-336, passed - - )
(A) Copies of records, specifications, procedures and regulations relating to purchasing shall be available to the public during normal business hours, upon request, and at a cost not to exceed the cost of copying.
(B) The Mayor may not disclose to the public or to a prospective vendor’s competitors:
(1) Information furnished in response to a request from the Mayor for information necessary to determine a bidder’s responsibility.
(KRS 45A.395)
(2) Information obtained from a prospective vendor during negotiations which qualifies as confidential technical information or trade secrets, and/or the disclosure of which would constitute violation of patent rights or copyrights.
(Ord. 79-336, passed - - )
Nothing in these regulations shall be construed in such a manner as to relieve the city of the responsibility to comply with any procurement requirements imposed by any agency from which the city may receive funds, including but not limited to state and federal agencies.
(Ord. 79-336, passed - - )
The city shall include as part of any invitation for bids or request for proposals for supplies, equipment or services, Equal Employment Opportunity language as may be required by local ordinance, KRS 45.570 through 45.640 and the procurement requirements of any agency from which the city may receive funds.
(Ord. 79-336, passed - - )
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