(A) Methods of source selection. Except where noted herein, all city contracts shall be awarded by one of the following methods:
(1) Invitation for bids (see division (B) below);
(2) Request for proposals (see division (C) below);
(3) Emergency procurement (see division (D) below);
(4) Small purchases (see division (E) below);
(5) Sole source (see division (F) below).
(B) Invitation for bids.
(1) Notice of invitation for bids. An invitation for bids shall include (or state where such information is to be made available) a project description, and all contractual terms and conditions applicable to the procurement. The invitation for bids shall be publicly announced.
(2) Receipt and opening of bids. All bids (whether or not sealed ) received prior to the bid opening shall be kept secure and unopened. 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, and such other relevant information as may be deemed appropriate by the Director, together with the name of each bidder, shall be tabulated by the Director. The ranking of each bidder shall be made available to all bidders after contract award.
(3) Bid acceptance and bid evaluation. Subject to the city’s right not to accept any bid, the selected bid shall be accepted unconditionally without alteration or correction, except as otherwise authorized in these procedures or by the Director. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that is not set forth in the invitation for bids or addenda to such bids. Bids shall be evaluated based on the requirements set forth in the invitation for bids and addenda.
(4) Correction or withdrawal of bids; cancellation of awards. Correction or withdrawal of inadvertently erroneous bids before bid opening, withdrawal of inadvertently erroneous bids after award, or cancellation of awards or contracts based on such bid mistakes, may be permitted within the Director’s discretion. After bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the city or fair competition shall be permitted.
(5) Award. If an award is to be made, the contract shall be awarded by written notice to the lowest responsible/responsive bidder. In the event two or more bidders are tied in price while otherwise meeting all of the required conditions, the contract shall be awarded to the local bidder. If two or more of such bids are submitted by local bidders, the Director shall award the contract to one of the local tie bidders by drawing lots in public. If local bidders are not involved in the tie bids, the Director shall award the contract to one of the outside tie bidders by drawing lots in public.
(6) Right of rejection and re-solicitation. The Director has the right, prior to award of the contract, to reject any and all bids for cause, or without cause, as it deems appropriate. The city has the right to determine not to award the contract to any bidder or to determine to re-solicit bids based upon modified terms and conditions.
(C) Request for proposals.
(1) Selection committee. For each project in which the request for proposal procurement selection method is used, the Director will establish a selection committee (the “committee”). The Director may be a member of that committee.
(2) Notice of request for proposals. The request for proposals shall be publicly announced and shall include a description of the project, enumerating all required professional services for the project (or state where such information is to be made available).
(3) Receipt and safeguarding of proposals. All proposals (whether or not sealed) received prior to the proposal opening shall be kept secure and unopened.
(4) Evaluation factors. The request for proposals shall state the relative importance of each evaluation factor but need not require numerical weightings for each factor. No other factors or criteria shall be used in evaluation and there shall be adherence to any weightings (if such are used) for each factor in the request for proposals. The contract file shall contain the basis on which the award is made. A determination of responsibility shall be made before award.
(5) Negotiation. The committee will review all submissions, may hold interviews with those responding persons who are deemed by the committee to be most qualified, determine the most qualified proposer, and negotiate a contract with the most qualified proposer. In the event a satisfactory contract cannot be negotiated with the most qualified proposer, the committee will negotiate a contract with the next most qualified proposer, and so on, until a satisfactory contract can be negotiated. Nothing contained herein will require the committee to negotiate a contract with an unqualified proposer or with a proposer who submits an unresponsive proposal.
(6) Right to withdraw and re-solicit. Until award, the Director has the right to determine not to award the contract to any proposer or to determine to re-solicit proposals based upon modified terms and conditions.
(D) Emergency procurement. Notwithstanding any other provision of these procedures, the Director may make or authorize others to make emergency procurements when there exists an immediate threat to public health, welfare, critical economy and efficiency, or safety under emergency conditions and provided that such emergency procurements shall be made with as much competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. However, such written determination shall not be deemed to be a condition precedent to an award under this section.
(E) Small purchases. Any procurement not exceeding $25,000 may be made by the Director by the solicitation of written quotations from a minimum of three qualified sources (or, if in the Director’s judgment, there are fewer than three qualified sources, from all qualified sources), and the award shall be made to the lowest responsible/responsive bidder.
(F) Sole source. Any request by an agency or department head that a procurement be restricted to one potential source shall be accompanied by a letter from the using department signed by the department head stating why no other source will be suitable or acceptable to meet the needs. A contract may be awarded for a property, supply, service, or construction item without competition when the Director determines in writing that there is only one source for the required property, supply, service, or construction item or that the proposed award to a single source is a permitted, non-competitive procurement as established herein. After verification of a sole source vendor, or the justification of a sole source purchase is warranted, the Director has the authority to negotiate the price, terms, and conditions of the procurement. Examples of a permissible, non-competitive procurement include, but are not limited to, those situations where the Director and the department head have deemed the compatibility of equipment, accessories, services, systems, software or replacement parts is of paramount importance.
(G) Design-build services. The Director may use design-build services as an alternative method for construction contracting administration. Except where provided by these procedures, request for proposals must be used for the procurement of design-build services.
(H) Pre-qualification of bidders.
(1) The Director may pre-qualify all prospective bidders or proposers.
(2) Notice of pre-qualification shall be publicly announced and shall set forth the criteria (or state where such criteria are to be made available) by which the qualifications and appropriateness of prospective bidders shall be determined. Only those criteria set forth in the pre-qualification notice may be considered in pre-qualifying bidders. The Director shall make all pre-qualification decisions in the exercise of his or her reasonable discretion, and shall make a written record of the basis for its pre-qualification determinations. Prior to issuance of the invitation for bids or request for proposals, all prospective bidders or proposers that were provided with pre-qualification notice will be notified of the Director’s decisions relating to pre-qualification.
(I) Bond; security.
(1) Bid security shall be required for all competitive sealed bidding for construction contracts entered into pursuant to division (B) above. Bid security shall be one or more bonds provided by one or more surety companies meeting the criteria established by the Director. Bid security shall be in an amount equal to at least 5% of the bid unless a higher percentage is specified in the invitation for bids. Any bid which does not comply with the bid security requirements shall be rejected.
(2) When a construction contract or other contract to improve real property is awarded and such contract exceeds $50,000, the city shall require the contractor to provide a performance bond and a labor and material payment bond in the full amount of the contract.
(a) The bond must be secured by cash or must be issued by a surety company licensed in the State of South Carolina with an “A” minimum rating of performance as stated in the most current publication of “Best Key Rating Guide, Property Liability.”
(b) If the contract is for less than $100,000, the city may in its discretion permit the use of a “Bae” rated bond in lieu of an “A” rated bond if the Director justifies that use in writing.
(3) Nothing in division (I)(2) above shall be construed to limit the authority of the city to require a bond or other security in addition to the bonds specified above.
(4) Bonding requirements may be temporarily waived for any emergency procurement.
(J) Exempted items.
(1) City Council, upon recommendation of the Director, may exempt by ordinance specific items, services, or projects from the purchasing procedures required in this policy when Council finds that such exemption is in the interest of the city and its citizens.
(2) The following services and/or procurements shall be exempt from the provisions of this policy.
(a) Works of art for museum and public display.
(b) Published books, library books, maps, periodicals, technical pamphlets.
(c) Copyrighted educational films, filmstrips, slides and transparencies.
(d) Postage stamps, postage fees and telephone service.
(e) Professional dues, membership fees and seminar registration fees.
(f) Medicine and prescription drugs.
(g) Utilities including gas, electric, water and sewer.
(h) Advertisements in professional publications or newspapers.
(i) Food and beverage items.
(j) Credit/bank card services.
(k) Articles for commercial sale by all governmental bodies.
(l) Professional services, including but not limited to the following:
1. Accounting services;
2. Advertising and marketing services;
3. Environmental remediation services;
4. Environmental surveying and testing services;
5. Financial feasibility services;
6. Governmental relations services;
7. Insurance consulting and procurement services;
8. Legal services;
9. Maintenance and equipment servicing services;
10. Management and management consulting services;
11. Public relations services;
12. Underwriting and financial services.
(3) The term “exempted services” shall include out-of-pocket expenses and other charges billed to the city by any of the foregoing service providers where such expenses and charges are of the type usually billed to the client by such type of service provider.
(4) Nothing herein shall preclude the Director from selecting any item or services listed in division (J)(2) above pursuant to a competitive selection process.
(5) Cooperative purchasing. The Director may either participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the procurement of products, supplies or services with one or more public procurement units in accordance with an agreement entered into between the participants. Such cooperative procurement may include, but is not limited to, joint or multi-party contracts between public procurement units.
(Ord. 2008-10, passed 4-14-08)