This section is applicable only to procurements with Federal Transit Administration Funds:
(A) The specification of only a "brand name" product without listing its salient characteristics and not allowing "an equal" product to be offered is considered to be restrictive of competition.
(B) The city may include options in its contracts. An option is a unilateral right in a contract by which, for a specified time, a grantee may elect to purchase additional equipment, supplies, or services called for by the contract, or may elect to extend the term of the contract. If the city chooses to use options, the following requirements apply:
(1) Evaluation of Options. The option quantities or periods contained in the contractor's bid or offer must be evaluated in order to determine the contract award. When options have not been evaluated as part of the award, the exercise of such options will be considered a sole source procurement.
(2) Exercise of Options.
(a) The city must ensure that the exercise of an option is in accordance with the terms and conditions of the option stated in the initial contract awarded.
(b) An option may not be exercised unless the city has determined that the option price is better than prices available in the market or that the option is the more advantageous offer at the time the option is exercised.
(C) The city does not authorize advance payments and will not participate in funding payments to a contractor prior to the incurrence of costs by the contractor unless prior written concurrence is obtained from the Federal Transit Administration.
(D) The city may use progress payments provided the following requirements are followed:
(1) Progress payments are only made to the contractor for costs incurred in the performance of the contract.
(2) When progress payments are used, the city must obtain title to property (materials, work in progress, and finished goods) for which progress payments are made. Alternative security for progress payments by irrevocable letter of credit or equivalent means to protect the city's interests in the progress payments may be used in lieu of obtaining title.
(Ord. 6141, passed 9-27-99)