(A) Authorization. All large purchases shall be authorized by the City Council.
(B) Selection of vendor. Vendors shall be selected by competitive sealed bidding, unless the contract or purchase comes within the provisions of KRS 45A.370, KRS45A.375, or KRS45A.380. If the vendor is selected pursuant to any of these statute sections, the procedures outlined therein shall be followed.
(C) Specifications for bids. Specifications for the services or items to be purchased through competitive sealed bidding shall be supplied to the City Clerk by the committee recommending the purchase.
Specifications shall be used which assure the maximum practicable competition. A specification which describes a product which is proprietary to one company may be used only when:
(1) No other kind of specification is reasonably available to describe requirements; and
(2) The specification includes language which specifically permits an equivalent product to be supplied. The specification shall include a description of the salient characteristics of the products.
(D) Competitive sealed bidding procedure. Competitive sealed bidding shall be conducted according to the following procedure:
(1) The invitation for bids shall state whether the award shall be made on the basis of the lowest bid price or the lowest evaluated bid price. If the latter is used, the objective measurable criteria to be utilized shall be set forth in the invitation for bids.
(2) The public shall be given notice of the invitation for bids by advertisement in the newspaper of largest circulation in the city at least once, not less than seven days nor more than 21 days before the date set for the opening of the bids. The advertisement shall include the time and place the bids will be opened and the time and place where the specifications may be obtained, provided copies of the invitation for bids may also be sent or delivered to such prospective vendors as the city may determine.
(3) The bids shall be opened publicly at the time and place designated in the invitation for bids. Each bid, together with the name of the bidder, shall be recorded and shall be open to public inspection.
(4) A contract shall be awarded with reasonable promptness by written notice to the responsive and responsible bidder whose bid is either the lowest bid price or the lowest evaluated bid price.
(5) The city may allow the withdrawal of a bid where there is a patent error on the face of the bid document, or where the bidder presents sufficient evidence, substantiated by bid worksheets, that the bid was based on an error in the formulation of the bid price.
(6) An invitation for bids may be cancelled, or all bids or proposals may be rejected, if it is determined in writing that the action is in the best interest of the city.
(7) A written determination of responsibility of a bidder or offeror shall be made based on a reasonable inquiry conducted by the city. The unreasonable failure of a bidder or offeror to promptly supply information upon request may be grounds for a determination of nonresponsibility of that bidder or offeror. A written determination of responsibility of a bidder or offeror shall not be made until the bidder or offeror provides the city with a sworn statement made under penalty of perjury that he has not knowingly violated any provision of the campaign finance laws of the state and that the award of a contract to the bidder or offeror will not violate any provision of the campaign finance laws of the state. "KNOWINGLY" means, with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or should have been aware that his conduct is of that nature or that the circumstance exists. Except as otherwise provided by law, information furnished by a bidder or offeror pursuant to this section may not be disclosed outside the city without the prior written consent of the bidder or offeror.
(8) Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the city to exceed $25,000. Bidder's security shall be a bond provided by a surety company authorized to do business in Kentucky, or the equivalent in cash, in a form satisfactory to the city. Nothing herein prevents the requirement of like bonds on construction contracts under $25,000 when the circumstances warrant. Bidder's security shall be in an amount equal to at least 5% of the amount of the bid. When the invitation for bids requires that bidder security be provided, noncompliance requires that the bid be rejected. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, provided if a bidder is permitted to withdraw his bid before award because of a mistake in the bid, as allowed by law or regulation, no action shall be taken against the bidder or the bidder's security.
(E) Purchase order and receiving procedure.
(1) When a vendor for the purchase of tangible items has been selected through competitive sealed bidding, as provided above, the City Clerk shall prepare a purchase order according to the bid. The procedure for processing the purchase order and receiving the items shall be the same as set out under § 36.03(B)(4) and (5).
(2) When a vendor has been selected through competitive sealed bidding for supplying a service, or both the performance of a service and the furnishing of tangible items, as in a construction contract, the City Attorney shall prepare a contract according to the bid to be executed by the vendor and the city.
(F) Payment procedure. All payments for large purchases shall have prior approval of the City Council upon recommendation of the appropriate committee. Before recommending payment, the committee shall examine the documents and conduct the investigations it deems necessary to insure that the recommended payment is justified.
(Ord. 0-1-80, passed 1-22-80)
Statutory reference:
Bid bonds; bidder security, see KRS 45A.430
Cancellation of bidding, see KRS 45A.390
Competitive sealed bidding, see KRS 45A.365
Determination of responsibility of bidder; right of nondisclosure, see KRS 45A.395