(A) Purpose. The purpose of this purchasing policy is to establish a uniform purchasing policy for the city. This policy reflects the city’s objective to promote and encourage accountability, fiscal responsibility, and ethical behavior. It further aims to ensure that purchases made by the city are conducted in accordance with federal, state, and local law, as well as policies enacted by governing boards or the Mayor.
(B) Policy scope. This policy applies to purchases made by the city and that are within the city’s control and made pursuant to the public purchasing provisions of I.C. 5-22-3-3. These are purchases that are estimated to cost between $5,000 and $150,000 and over. Exceptions to this policy include “routine materials, repairs to equipment, emergency”, or any other item as approved by the Mayor. In most cases, this policy will not include public infrastructure construction projects. This policy applies to the purchasing of ongoing consumables, durable goods, and services.
(C) Policy goals.
(1) The purpose of this policy is to purchase needed supplies, materials, and services in a manner that will:
(a) Encourage accountability;
(b) Encourage fiscal responsibility;
(c) Promote ethical behavior; and
(d) Encourage opportunity for local vendors to participate in purchasing processes.
(2) Nothing contained in this policy shall be construed as requiring the city to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price in a reasonable period of time.
(D) Obtaining quotes—procedure. In order to meet the city’s objective to promote and encourage accountability, fiscal responsibility, and good ethical behavior, all purchasing agents for the city shall make purchases in the manner described in division (H) below.
(E) Responsible party. Designated staff shall implement this policy upon approval by the Board. These personnel include, but are not limited to, city department heads, administrative assistants, or any other city employees or parties acting as a purchasing agent for materials on the city’s behalf.
(F) Time period. This policy shall take effect on July 24, 2018 and shall continue indefinitely or until amended or replaced by a subsequent sustainable purchasing policy.
(G) Other city guidelines and policies.
(1) Supplier diversity. It is the city’s objective to promote and encourage competition among all vendors and contractors. The city is committed to an open and fair business environment and exhibits this commitment by offering business opportunities to all persons regardless of race, age, sex, or national origin. Further, the city wishes to encourage the diversification of business opportunities among historically disadvantaged businesses, such as women-owned and minority-owned businesses, and encourages its departments to utilize those businesses where practical.
(2) Local business preference. For the purpose of stimulating local economy, the city encourages its departments to utilize local businesses where practical.
(H) Quotation guidelines. The following is a guideline for all individuals within city administration when soliciting quotations as to the manner of solicitation, what must be contained within the solicitation, and what must be contained within the response to the solicitation by any perspective vendor.
(1) Quotations for purchases between $5,000 and $25,000.
(a) Solicitations by fax, phone, or email to at least three vendors known to deal in the class of work to be proposed.
(b) Solicitation should include a description of the anticipated work as detailed as possible.
(c) Solicitations should indicate the anticipated start date and completion date for the work.
(d) Solicitations should indicate that quotations should be directed to the office of the Clerk-Treasurer by 9:30 a.m. on the day of the Board meeting at which the solicitation shall be considered.
(e) Solicitations should indicate that quotations should be sealed if the amount of the solicitation is in excess of $10,000.
(f) The solicitation should include the document to be completed by the vendor containing the amount of their quote.
(g) The solicitation should indicate to the perspective vendor where the bid packet documents may be obtained and the hours to do so, subject to established holiday schedule.
(h) A sign-in sheet for those picking up the quotation packets, other than at the Clerk-Treasurer’s office, should be maintained by the applicable department head and delivered to the Clerk-Treasurer by the department head by 9:00 a.m. on the day before the quotations are due.
(j) The solicitation shall inform perspective vendors that the successful bidder will be required to name the city as an additional insured under their insurance policy meeting the required limit set forth below.
(k) The solicitation should also indicate that the quotation will require the following additional documents:
1. A copy of the bidder’s insurance declaration page reflecting general liability coverage of at least $1,000,0000 per incident and $2,000,000 in the aggregate, the existence of worker’s compensation insurance, as well as cyber security insurance if the project includes accessing the city’s computer system;
2. A copy of the bidder’s proposed contract should the bidder be selected as the vendor;
3. A duly executed E-verify affidavit;
4. A duly executed Iran Affidavit; and
5. A duly executed W-9.
(2) Quotations for purchases greater than $25,000 but less than $50,000.
(a) Solicitation for quotations must be by mail, although solicitations may be confirmed by fax or email. Solicitations for quotations must be mailed to at least three entities known to deal in the class of work proposed. The mailing must be made not less than seven days before the time fixed for receiving quotes which would be 9:30 a.m. on the day the Board will consider the quotations.
(b) Solicitation should include a description of the anticipated work as detailed as possible.
(c) Solicitations should indicate the anticipated start date and completion date for the work.
(d) Solicitations should be sealed and should indicate that quotations should be directed to the office of the Clerk-Treasurer by 9:30 a.m. on the date the quotations will be considered by the Board of Public Works and Safety.
(e) The solicitation should include the document to be completed by the vendor containing the amount of his, her, or their quote.
(f) The solicitation should tell the vendor where the bid packet documents may be obtained and the hours to do so, subject to established holiday schedule.
(g) A sign-in sheet for those picking up the quotation packets, other than at the Clerk-Treasurer’s office, should be maintained by the applicable department head and delivered to the Clerk-Treasurer by the department head by 9:00 a.m. on the day before the quotations are due.
(h) The solicitation shall inform vendors that the successful bidder will be required to name the city as an additional insured under their insurance policy meeting the required limit set forth below.
(i) The solicitation should also indicate that the quotation will require the following additional documents:
1. A copy of the bidder’s insurance declaration page reflecting general liability coverage of at least $1,000,0000 per incident and $2,000,000 in the aggregate, the existence of worker’s compensation insurance, as well as cyber security insurance if the project includes accessing the city’s computer system;
2. A copy of the bidder’s proposed contract should the bidder be selected as the vendor;
3. A duly executed E-verify affidavit;
4. A duly executed Iran Affidavit;
5. A bond or cashier’s check in the amount of 5% of the total quotation;
6. Should the solicitation pertain to the installation and/or maintenance of any form of room, street, or alleyway, or any infrastructure within the city, the solicitation shall inform the vendors that should he, she, or they be the successful bidder, he, she, or they will be required to provide a performance bond in the amount of 110% of the quotation, as well as a maintenance bond in the amount of 25% of the quotation which shall continue in existence for three years after acceptance of the work and release of the performance bond; and
7. A duly executed W-9, if a W-9 is not already on file with the Clerk-Treasurer.
(3) Quotations for purchases greater than $50,000 but less than $150,000.
(a) Solicitation for quotations must be by mail, although solicitations may be confirmed by fax or email. Solicitations for quotations must be mailed to at least three entities known to deal in the class of work proposed. The mailing must be made not less than seven days before the time fixed for receiving quotes which would be 9:30 a.m. on the day the Board will consider the quotations.
(b) Solicitation should include a description of the anticipated work as detailed as possible.
(c) Solicitations should indicate the anticipated start date and completion date for the work.
(d) Solicitations should be sealed and should indicate that quotations should be directed to the office of the Clerk-Treasurer by 9:30 a.m. on the date the quotations will be considered by the Board of Public Works and Safety.
(e) The solicitation should include the document to be completed by the vendor containing the amount of his, her, or their quote.
(f) The solicitation should tell the vendor where the bid packet documents may be obtained and the hours to do so, subject to established holiday schedule.
(g) A sign-in sheet for those picking up the quotation packets, other than at the Clerk-Treasurer’s office, should be maintained by the applicable department head and delivered to the Clerk-Treasurer by the department head by 9:00 a.m. on the day before the quotations are due.
(h) The solicitation shall inform vendors that the successful bidder will be required to name the city as an additional insured under their insurance policy meeting the required limit set forth below.
(i) The solicitation should also indicate that the quotation will require the following additional documents:
1. A current financial statement of the bidder;
2. A list of equipment intended to be used on the project;
3. A statement of the contractor’s experience;
4. A copy of the bidder’s insurance declaration page reflecting general liability coverage of at least $1,000,0000 per incident and $2,000,000 in the aggregate, the existence of worker’s compensation insurance, as well as cyber security insurance if the project includes accessing the city’s computer system;
5. A copy of the bidder’s proposed contract should the bidder be selected as the vendor;
6. A duly executed E-verify affidavit;
7. A duly executed Iran Affidavit;
8. A duly executed W-9, if a W-9 is not already on file with the Clerk-Treasurer;
9. A bond or cashier’s check in the amount of 5% of the total quotation; and
10. Should the solicitation pertain to the installation and/or maintenance of any form of room, street, or alleyway, or any infrastructure within the city, the solicitation shall inform the vendors that should he, she, or they be the successful bidder, he, she, or they will be required to provide a performance bond in the amount of 110% of the quotation, as well as a maintenance bond in the amount of 25% of the quotation which shall continue in existence for three years after acceptance of the work and release of the performance bond.
(4) Request for sealed bids for projects in excess of $150,000.
(a) Requests for sealed bids must be published in accordance with I.C. 5-3-1 and this policy in a newspaper of general circulation in the city, at least one week but no more than six weeks apart, with the second notice being published at least ten days before the date specified for the bid opening. The advertisement must fix the time for receiving bids to be 9:30 a.m. on the day the Board will consider the bids.
(b) The request for sealed bids must inform the bidder that his, her, or their bids must contain the following:
1. A current financial statement of the bidder;
2. A list of equipment intended to be used on the project;
3. A statement of the contractor’s experience;
4. A copy of the bidder’s insurance declaration page reflecting general liability coverage of at least $1,000,0000 per incident and $2,000,000 in the aggregate, the existence of worker’s compensation insurance, as well as cyber security insurance if the project includes accessing the city’s computer system;
5. A copy of the bidder’s proposed contract should the bidder be selected as the vendor;
6. A duly executed E-verify affidavit;
7. A duly executed Iran Affidavit;
8. A duly executed W-9 if a W-9 is not already on file with the Clerk-Treasurer; and
9. A bond or cashier’s check in the amount of 5% of the total quotation.
(c) All documents required for quotations of less than $150,000 are required for all bids described in this section; provided, however, to the extent applicable forms exist, all bids under this section must utilize forms provided by the State Board of Accounts.
(d) All bidders must submit a non-collusion affidavit on forms set forth by the state.
(e) The request for sealed bids should further advise the bidder that, within the required proposed contract, the successful bidder shall include the following provisions:
1. The successful bidder will not make cash payments to an individual or entity for work done on the project;
2. The successful bidder will comply with the Fair Labor Standards Act, being 29 U.S.C. §§ 201 et seq., and the minimum wage law;
3. The successful bidder will comply with state’s workers’ compensation insurance requirements;
4. The successful bidder will comply with state’s unemployment compensation requirements;
5. If the project in question is a road project funded in part by the state, the advertisement should indicate the successful bidder will be required to provide proof of certification by INDOT; and
6. The successful bidder must submit a copy of the drug testing policy or collective bargaining agreement that describes the drug testing policy.
(f) Should the solicitation pertain to the installation and/or maintenance of any form of infrastructure within the city, the solicitation shall inform the vendors that should he, she, or they be the successful bidder, he, she, or they will be required to provide a performance bond in the amount of 100% of the quotation, as well as a maintenance bond in the amount of 10% of the quotation which shall continue in existence for three years after acceptance of the work and release of the performance bond.
(I) General terms relating to purchasing.
(1) The purchasing agency may receive electronic offers in response to an invitation to bid, request for proposals, or request for specifications.
(2) A purchasing agency may only receive an electronic offer if:
(a) The solicitation includes the procedure for the electronic transmission of the offer; and
(b) The purchasing agency receives the offer on a fax machine or other system with a security feature that protects the contents of an electronic offer with the same degree of protection as provided to an offer not transmitted electronically.
(J) Correction and withdrawal of bids.
(1) A bidder may correct inadvertent errors in a bid up to the time at which bids will be opened by supplementing the erroneous bid and submitting a revised bid. A bidder may not supplement an inadvertently erroneous bid after the time at which the bids were opened.
(2) A bidder may withdraw a bid containing inadvertent errors up to the time at which bids will be opened and for a period of not more than 24 hours after the time at which bids will be opened.
(K) Cancellation of solicitation. When the purchasing agent makes a written determination that it is in the city’s best interests, the purchasing agent may cancel a solicitation or reject all offers, provided that the solicitation included information concerning the procedure for cancellation.
(L) Protection of offers; status of documents as public records.
(1) Protection of offers prior to opening. The City Clerk-Treasurer, or the purchasing agent who receives offers, shall retain all offers received in a secure location prior to the date and time at which offers will be opened in order to prevent disclosure of the contents prior to the opening of the offers.
(2) Unobstructed evaluation of offers. After offers have been opened, the purchasing agent shall be responsible for maintaining the offers in such a manner as to permit evaluation of the offers by the persons responsible for evaluating the offers.
(3) Public records status of bids. Bids submitted in response to an invitation for bids must be made available for public inspection and copying after the time of the bid opening, unless the bid opening is delayed, as authorized in this section or any other statute or ordinance.
(4) Register of proposals. The purchasing agent shall prepare a register of proposals for each request for proposals issued which shall contain information concerning the proposals available for public inspection and copying. Proposals may not be disclosed.
(M) Discussions with bidders responding to a request for proposals. The purchasing agent may conduct discussions with parties who are submitting proposals. Final offers may be obtained from responsible bidders who submit proposals and are determined to be reasonably susceptible of being selected for a contract award.
(N) Delay of openings of offer. When the Board makes a written determination that is in the city’s best interest, offers may be opened after the time stated in the solicitation. The date, time, and place of the rescheduled opening must be announced at the time and place of the originally scheduled opening.
(O) Use of RFP for purchases of designated types of supplies. If the Board determines that it is either not practicable or not advantageous to purchase certain types of supplies by sealed competitive bidding, it shall authorize the appropriate purchasing agent to receive proposals.
(P) Modification and termination of contracts.
(1) Price adjustments. Any purchasing agent for the city may include provisions to permit price adjustments in a purchase contract. The following provisions for price adjustments may be included:
(a) Price adjustments must be computed by agreement on a fixed price adjustment before the beginning of the pertinent performance or as soon after the beginning of performance as possible;
(b) Price adjustments must be computed by unit prices specified in the contract or subsequently agreed upon;
(c) Price adjustments must be computed by costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon; or
(d) Price adjustments must be computed in such other manner as the contacting parties may mutually agree upon.
(2) Adjustments in time of performance. The purchasing agent may include provisions in a purchase contract concerning adjustments for time of performance under the contract.
(3) Unilateral rights of the city. The purchasing agent may include in a purchase contract provisions dealing with the unilateral right of the purchasing agent, or the Board, to order changes in the work within the scope of the contract or to order temporary work stoppage or delays in time of performance.
(4) Quantity variations. The purchasing agent may include, in a purchase contract, provisions dealing with variations between the estimated quantities of work in a contract and the actual quantity delivered.
(Q) Purchase of supplies manufactured in the United States. Supplies manufactured in the United States shall be specified for all county purchases and shall be purchased unless the county determines that:
(1) The supplies are not manufactured in the United States in reasonably available quantities;
(2) The prices of the supplies manufactured in the United States exceeds, by an unreasonable amount, the price of available and comparable supplies manufactured elsewhere;
(3) The quality of the supplies manufactured in the United States is substantially less than the quality of comparable priced available supplies manufactured elsewhere; or
(4) The purchase of supplies manufactured in the United States is not in the public interest.
(R) Contracting with a relative policy.
(1) The city may enter into a contract or renew a contract for the procurement of goods and services or a contract for public works with an individual who is a relative of an elected officer or a business entity that is wholly or partially owned by a relative of an elected officer, only if the requirements of I.C. 36-1-21-5 are satisfied and the elected officer does not violate I.C. 35-44.1-1-4. The elected officer must also file a written disclosure as set forth in I.C. 36-1-21-5(b).
(2) The city contracting with a relative policy is hereby established effective July 1, 2012 by adopting the minimum requirement provisions of I.C. 36-1-21, including all future amendments thereto, which become law from time to time, and making them a part hereof as if fully set out herein.
(3) All elected officers and appointed officials of the city shall cooperate fully in the implementation of the policies created by this division (R) and demonstrating compliance with these policies. For the purposes of this subchapter, RELATIVE shall mean parents, spouses, or stepparents; children, including stepchildren; siblings, including stepsiblings; nieces; nephews; aunts; uncles; daughters-in-law; or sons-in-law.
(S) Purchasing procedures and requirements when utilizing federal funds. Any and all purchasing agents, the Common Council and all other boards of the city shall comply with the following procedures and requirements when using federal funds or awards to procure goods and/or services, whether received directly or as a sub-recipient:
(1) No employee, officer, or agent of the city may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. Violation of this requirement shall result in disciplinary action against the employee in violation. This policy shall not apply in situations in which the financial interest is not substantial, or the gift is an unsolicited item of nominal value. Prior to any participation in the selection, award of administration of a contract, the employee shall disclose any financial interest to the Common Council for a determination if such interest is substantial.
(2) All purchasing shall avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.
(3) To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the federal government, the city shall consider state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. Competition requirements will be met with documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements.
(4) The city shall consider using federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs.
(5) The city shall consider using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.
(6) The city shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
(7) The city shall maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
(8) (a) The city may use a time-and-materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time-and-materials type contract means a contract whose cost to the city is the sum of:
1. The actual cost of materials; and
2. Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.
(b) Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract with the city must set a ceiling price that the contractor exceeds at its own risk. Further, the city shall assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.
(9) The city shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims.
(10) All procurement transactions for the acquisition of property or services required under a federal award shall be conducted in a manner providing full and open competition consistent with the standards of this section and 2 CFR § 200.320.
(11) In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
(a) Placing unreasonable requirements on firms in order for them to qualify to do business;
(b) Requiring unnecessary experience and excessive bonding;
(c) Noncompetitive pricing practices between firms or between affiliated companies;
(d) Noncompetitive contracts to consultants that are on retainer contracts;
(e) Organizational conflicts of interest;
(f) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and
(g) Any arbitrary action in the procurement process.
(12) The city shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(13) All solicitations for bids or quotes by the city shall incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement.
(14) The specific features of the named brand which must be met by offers must be clearly stated; and identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
(15) The city shall ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The city shall not preclude potential bidders from qualifying during the solicitation period.
(16) Methods of procurement to be followed. The city may use the following methods of procurement used for the acquisition of property or services required under a federal award or sub-award.
(a) Informal procurement methods. When the value of the procurement for property or services under a federal award does not exceed the simplified acquisition threshold (SAT), as defined in 2 CFR § 200.1, formal procurement methods are not required. The city may use informal procurement methods to expedite the completion of its transactions and minimize the associated administrative burden and cost. The informal methods used for procurement of property or services at or below the SAT include:
1. Micro-purchases.
a. Distribution. The acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (See the definition of micro-purchase in 2 CFR § 200.1). To the maximum extent practicable, the city should distribute micro-purchases equitably among qualified suppliers.
b. Micro-purchases may be awarded without soliciting competitive price or rate quotations if city considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly.
2. Small purchases. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the Common Council. The simplified acquisition threshold (“SAT”) shall be $50,000.00, unless a higher amount may hereafter be required by federal regulation, rule or order.
(b) Formal procurement methods. When the value of the procurement for property or services under a federal financial assistance award exceeds the SAT, formal procurement methods are required. Formal procurement methods require following documented procedures. Formal procurement methods also require public advertising unless a non-competitive procurement can be used in accordance with 2 CFR § 200.319 or this section. The following formal methods of procurement are used for procurement of property or services above the SAT:
1. Sealed bids. A procurement method in which bids are publicly solicited and a firm fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bids method is the preferred method for procuring construction, if the conditions.
2. In order for sealed bidding to be feasible, the following conditions should be present:
a. A complete, adequate, and realistic specification or purchase description is available;
b. Two or more responsible bidders are willing and able to compete effectively for the business; and
c. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.
3. If sealed bids are used, the following requirements apply:
a. Bids must be solicited from an adequate number of qualified sources, providing them sufficient response time prior to the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised;
b. The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;
c. All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly;
d. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
e. Any or all bids may be rejected if there is a sound documented reason.
4. Proposals. A procurement method in which either a fixed price or cost-reimbursement type contract is awarded. Proposals are generally used when conditions are not appropriate for the use of sealed bids. They are awarded in accordance with the following requirements:
a. Requests for proposals must be publicized and identify all evaluation factors and their relative importance;
b. Proposals must be solicited from an adequate number of qualified offerors;
c. Any response to publicized requests for proposals must be considered to the maximum extent practical;
d. The city shall conduct technical evaluations of the proposals received and making selections by a committee of three persons;
e. Contracts must be awarded to the responsible offeror whose proposal is most advantageous to the city, with price and other factors considered; and
f. The city may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby offeror’s qualifications are evaluated and the most qualified offeror is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms that are a potential source to perform the proposed effort.
(c) Noncompetitive procurement. There are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply:
1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold;
2. The item is available only from a single source;
3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation;
4. The federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the city; or
5. After solicitation of a number of sources, competition is determined inadequate.
(17) (a) The city shall take all necessary affirmative steps to assure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible.
(b) Affirmative steps shall include:
1. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;
2. Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources;
3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises;
4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises;
5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in this section.
(18) (a) As appropriate and to the extent consistent with law, the city, to the greatest extent practicable under a federal award, shall provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subawards including all contracts and purchase orders for work or products under this award.
(b) For purposes of this section:
1. “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
2. “Manufactured products” means items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.
(19) The city shall comply with § 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of § 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
(20) The city shall perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-federal entity must make independent estimates before receiving bids or proposals.
(21) The city shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.
(22) Costs or prices based on estimated costs for contracts under the federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the city under federal regulations.
(23) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.
(24) For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the federal awarding agency or pass-through entity may accept the bonding policy and requirements of the city provided that the federal awarding agency or pass-through entity has made a determination that the federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
(a) A bid guarantee from each bidder equivalent to 5% of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.
(b) A performance bond on the part of the contractor for 100% of the contract price. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor’s requirements under such contract.
(c) A payment bond on the part of the contractor for 100% of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.
(25) The purchasing agent or other employee in responsible charge shall maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.
(Ord. 1998-13, passed 7-23-1998; Ord. 2012-6, passed 6-27-2012; Ord. 2022-47, passed 12-14-2022)