(A) Contracts.
(1) Establishment of contracts. Contracts may be established for, but not limited to, maintenance contracts, employment contracts, janitorial/beautification service contracts, landscaping, etc. The need for such contracts is based upon the requirements of the department and must have the approval of the department head and ultimately must be approved by the City Manager.
(2) State contracts (general). When possible, the city will purchase items from North Carolina State Contract vendors. Department heads should check with the Finance Director or City Manager for state contract vendors in the area.
(3) Authorizing authority. The City Manager is authorized to sign contracts committing city funds when authorized or delegated to do so by the majority vote of the City Council or as otherwise allowed by State Statute. Any contract that pledges the faith and credit of the city, in any form, is neither acceptable nor permissible unless signed by the City Manager. The original copy of the executed contract must be filed with the Finance Director. No funds may be expended for a contract until the Finance Director pre-audits the contract for availability of sufficient appropriated funds and certifies the same.
(4) Real property. All leases and/or contracts for real property, purchase, lease or rental shall be negotiated through the City Manager in conjunction with the City Attorney and approved by the City Council.
(5) Form and approval of contract content. The city will consider use of vendor contract documentation for purchase, construction and service contracts if prepared for the intended contract and having terms acceptable to the city. Vendor documentation shall be reviewed initially by the responsible Department Head, Finance Director or City Manager. Absent a vendor contract document, the city will use the approved city contractor agreement, or if deemed acceptable and agreeable by both parties, a city purchase order as the basis for contracted services. All significant contracts will be reviewed by the City Attorney prior to execution by the City Manager.
(6) Statutory compliance. All contracts will be pre-audited in accordance with the North Carolina Local Government Budget and Fiscal Control Act and will comply with immigration verification/certification and E-Verify provisions contained in State Statutes.
(B) Competitive bidding.
(1) Soliciting bids. The purpose of soliciting bids is both to seek and to obtain competition; the responsibility is dual. Where only a single bid or single acceptable bid is received, or otherwise where reasonable and available competition is not obtained, the reason shall be ascertained and made a matter of record.
(2) Bid format. In preparing and issuing solicitations for proposals or bids, and in issuing contract and purchase orders, the Finance Director is authorized to employ such terms and conditions as deemed advantageous and which are not inconsistent with statutory provisions and these rules and regulations. All applicable North Carolina General Statutes on informal and formal bidding will be followed.
(3) Prospective bidders. The city will maintain a file of prospective bidders for soliciting bids on various categories of equipment, supplies and construction services. Prospective bidders may be included on or removed from this list after taking into consideration financial standing and responsibility; facilities for production, distribution and services, historical relationship with the city, length of time successfully in business; responsiveness as a bidder; performance as a supplier; and other factors deemed pertinent and reasonable. Bid packages will be circulated by U.S. Postal Service, e-mail, or made available for pick up at a designated location. Bids will be accepted in the form of response dictated by the bid specifications.
(4) Bid error clarifications. Where a bid appears to contain an obvious error or where an error is suspected, the circumstances may be investigated, and then may be considered and acted upon under the procedure for canvassing bids and awarding contracts. Any action taken shall not prejudice the rights of the public or the bidders. Where bids are submitted substantially in accordance with the invitation but are not entirely clear as to the intent or to some fact or other ambiguities, clarification may be sought and accepted; provided that in doing so, changes, which would improve the competitive position of a bid, shall not be permitted.
(5) Bid awards. In determining the award of contracts, bona fide proposals will be considered and evaluated as provided by North Carolina General Statute and by these rules and regulations. Non-acceptance of the proposal is not to be construed as outright rejection or that it lacks merit, but that another is deemed more advantageous.
(6) Bid public information. Recognizing the lack of personnel and time, requests for preparation of detailed or written tabulations and abstracts of bids cannot be honored but will be produced as public records if they are already prepared in writing. However, the name of the low or successful bidder and price and similar basic information will be supplied to the general public and other interested parties upon request after contract has been awarded.
(7) Employee private gain prohibited. Purchases from or through employees of the city or purchases from or through companies in which city employees have financial interest, either directly or indirectly is not permitted. The purchasing power of the city shall not be used for private advantage or gain.
(C) Bidding procedures.
(1) Informal bid procedures for equipment and supplies.
(a) Informal proposals involve the solicitation of informal bids, either verbal or written, from qualified sources of supply. Informal proposal procedures must be utilized for purchases of apparatus, supplies, materials, or equipment expected to require an expenditure equal to or greater than $30,000 but less than $90,000. Requests for informal proposals do not have to be advertised. Informal bids do not have to be publicly opened. Whenever possible, the Finance Director will solicit three or more proposals from representative suppliers based on previous experience and knowledge of the market. It is not permissible to divide a proposal in order to avoid formal bid requirements in favor of informal bids.
(b) Where bids are unsatisfactory or under conditions where effective competition is not available, purchases or leases may be made by direct negotiation with responsible suppliers.
(2) Formal bid procedures for equipment and supplies.
(a) Formal bid procedures involve solicitation of sealed bids from qualified sources of supply. Formal bid procedures must be utilized for purchases of apparatus, supplies, materials, or equipment expected to require an expenditure equal to or greater than $90,000. Requests for formal bids must be legally advertised. Formal bid procedures may be used for purchases totaling less than $90,000 where advantages as to price or conditions of the purchase may be obtained. It is the responsibility of the Finance Director or the city's designee to open and read bids publicly prior to the award of the contract. The Finance Director or the city's designee will also make known to any interested person the names of the bidders, the manufacturers and catalog numbers of the items the bidders have offered, and the prices, delivery schedules and terms specified in the bids. After the bids have been opened, they are analyzed and compared with respect to compliance with specifications, quality and suitability of the products, time of delivery and any other pertinent factors.
(b) During the period of evaluation and prior to the award, possession of the bids and accompanying information is limited to city personnel or the city's designee directly involved in the project and to those in user agencies who are responsible for participating in the evaluation. Vendor participation, or furnishing information to vendors on the status of bid evaluation, is not permitted.
(c) After award of the contract, the complete bid file with the exception of trade secrets, test information or similar proprietary information as provided by North Carolina General Statutes and procedures will be available to any interested person(s).
(3) Bids for construction, renovation, or repairs. If a proposal involves construction, renovation, or repairs, the following guidelines apply:
(a) $30,000 - $500,000;
1. Informal bids (G.S. § 143-131);
2. Written proposals or quotes;
(b) $500,000 +;
1. Formal bids (G.S. § 143-129);
2. Separate specifications (G.S. § 143-128);
3. HVAC, plumbing, electrical, general - if the cost of subdivision is less than $25,000, then it may be incorporated into one of the other subdivisions;
(c) G.S. § 143-135 - Exempts the competitive bidding requirements on construction and labor that involves less than $125,000, or if the total cost of labor on the project does not exceed $50,000, when the work is to be done by employees and officers of a government agency;
(d) G.S. § 133-1.1- Requires that repairs exceeding $300,000 for the repair of any building not including major structural change, or $100,000 for the repair of public building affecting life safety systems, or $135,000 for the repair of public buildings where such repairs includes major structural change in framing or foundation support systems, or $135,000 for the construction of, or additions to, public buildings or State-owned and operated utilities; be designed by an architect or engineer; and
(e) In certain cases, when the city employs the services of an architect, engineer, firm, corporation or individual to provide design and/or specifications services on certain projects that involve the construction, additions or renovations of/to buildings, G.S. §§ 133-1; 133-1.1; 133-2; 133-3; dictate certain procedures to be followed. To ensure fair competition, it will be the position of the city not to allow any architect, engineer, firm, corporation or individual providing design and/or specifications services for any project, to submit a proposal to provide materials, supplies, equipment, etc., on that project to which said design and/or specification services were rendered unless the project has been designated by the Council as a design build project as permitted by State statute.
(4) Procedure for letting public contracts.
(a) G.S. § 143-129 states that "No construction or repair work requiring the estimated expenditure of public money in an amount equal to or more than $500,000 or purchase of apparatus, supplies, materials or equipment requiring an estimated expenditure of public money in an amount equal to or more than $90,000 may be performed, nor shall any contract be awarded therefore by any Council or governing body of the State or of any political subdivision of the State, unless the provisions of this section are complied with."
(b) "Where the contract is to be let by a political subdivision of the State, proposal shall be invited by advertisement in newspapers having general circulation in the political subdivision or by electronic means or both."
(5) Minimum number of bids for public contracts.
(a) G.S. § 143-132 states that "No contract to which G.S. § 143-129 applies for construction or repairs shall be awarded by any Council or governing body of the State, or any subdivision thereof, unless at least three competitive bids have been received from reputable and qualified contractors regularly engaged in their respective lines of endeavor."
(b) G.S. § 143-132(a) provides procedures if not as many as three competitive bids are received. These procedures require a second advertisement for bids and thereafter if three bids are not received, then award of the contract to the lowest responsible bidder even though only one bid may have been received.
(6) Contracts for informal bids. G.S. § 143-131 states that "All contracts for construction or repair work or for the purchase of apparatus, supplies, materials or equipment, involving the expenditure of public money in the amount of $30,000 or more, but less than the limits prescribed in G.S. § 143-129, made by any officer, department, Council, local school administrative unit, or commission of any county, city, or other subdivision of this State shall be made after informal bids have been secured."
(7) Rejection of bids. In requesting proposals all offers received may be rejected in whole or in part. Consistent with G.S. § 143-129 governing such purchases, the city will accept and make award to the lowest, responsible bidder. Basis for rejection shall include, but not be limited to:
(a) The proposal being deemed unsatisfactory as to quantity, quality, delivery, price or service offered;
(b) The proposal not complying with the conditions of the invitation or with the intent of the proposed contract;
(c) Lack of competitiveness, by reason of collusion or otherwise, or knowledge that reasonably available competition was not received;
(d) Errors in specifications or indication that revision would be to the city's advantage;
(e) Cancellation of or changes in the intended project or other determination that the proposed requirement is no longer needed;
(f) Limitation or lack of available funds;
(g) Circumstances, which prevent determination of the lowest responsible or most advantageous bid; and
(h) A determination that rejection would be for the best interest of the city.
(Ord. passed 11-14-2016)