(A) Small purchases. Small purchases are considered informal procurement actions. Procurement requirements shall not be artificially divided so as to constitute a small purchase.
(1) Total price is $10,000 or less, it shall be made after adequate inquiry based on the director or his or her designee's knowledge of a reasonable price and satisfactory quality.
(2) Total price more than $10,000 to $25,000. When the total price is greater than $10,000, and not more than $25,000 purchases shall be made using documented oral or written price or rate quotations from an adequate number of suppliers. If available, a minimum of three quotations from qualified suppliers shall be obtained. Such price and rate quotations, the date of such quotations and the names of suppliers shall be documented.
(B) Competitive sealed bidding. Competitive sealed bidding is considered a formal procurement action. Except as provided in this procurement code, all purchases in excess of $25,000 shall be made by competitive sealed bidding. Purchase orders and contracts shall be awarded to the lowest responsible bidder except as provided for in this code. Competitive sealed bidding procedures shall at a minimum, incorporate the following:
(1) Formal bid specifications that at a minimum include the general terms and conditions of the proposed purchase, requirements of the bidder, form of contract, the forms for submission of bids and the basis of award.
(2) Product or service specifications that accurately describe the product or service required in such a manner as to not preclude competition. If specific manufacturer's names or models are used to describe the product or service, a minimum of two manufacturers' names should be used if available. There shall be a provision for approval of an equal product or service. Also, see § 39.10(5).
(3) Adequate public notice of a minimum of five business days, prior to the date established for the opening of bids. At a minimum, public notice shall consist of:
(a) Notifying electronically, or otherwise, vendors registered on the city’s bid list (email notification list); and
(b) Posting all competitive solicitations on the city’s website;
City department personnel shall have the option of notifying selected commercial subscription services, “Bid Houses,” of all relevant competitive bids or publishing selected competitive solicitations in the local newspaper.
(4) Sealed bids shall be opened publicly at the time and place designated in the invitation for bids. A tabulation of all bids received shall be available for public inspection within a reasonable period of time. Departments shall determine an adequate amount of time.
(5) The purchasing agency may negotiate with the two low bidders in order to reduce the bid to fall within available funds and/or to obtain a lower bid amount, provided that the original intent of the procurement is not materially changed. The right to negotiate a lower total bid must be a condition of the bidding documents.
(6) The award of bids shall be formalized through the execution of a purchase order or written contractual agreement.
(7) The purchasing agency may reject any or all bids or parts thereof when such rejection has been determined to be in the city's best interest.
(C) Multi-step sealed bidding. When it is considered impractical to readily prepare a detailed specification to support an award based on price, a two-step bid process may be used. The first step is a request for proposals, based on a general or performance specification, requesting the submission of unpriced technical proposals. The second step is an invitation for firm and final priced bids to those bidders whose proposals have been determined to be technically acceptable under the criteria set forth in the first step.
(1) The multi-step sealed bidding method may be used if the purchasing agency determines that:
(a) Available specifications or purchase descriptions are not sufficiently complete to permit full competition without technical evaluations and discussions to ensure mutual understanding between each bidder and the city.
(b) Definite criteria exist for evaluation of technical offers.
(c) More than one technically qualified source is expected to be available.
(d) A fixed price contract will be used.
(2) The invitation to bid must provide notice that a multi-step process is being used. The notice should explain the multi-step process and that only those bidders providing technically acceptable proposals, will be allowed to participate in submitting a fine and final bid price.
(3) Adequate public notice of a minimum of ten working days prior to the date established for the opening of bids shall be provided. Such notice shall include as a minimum publication in a newspaper of general circulation.
(4) Award shall be made to the lowest dollar responsible bidder.
(D) Competitive sealed proposals.
(1) When competitive sealed bidding is not practical or advantageous to the city, the purchasing agency director, may authorize the use of competitive sealed proposals and negotiations as the procurement method.
(2) In determining whether competitive sealed bidding is practical or advantageous to the city, the purchasing agency director, shall consider the following factors:
(a) Whether the cost to develop formal technical bid specifications sufficient to insure open competitive bids, would make the total cost of the procurement excessive.
(b) Whether the proposed purchase is to be accompanied by land, development, or other related economic transactions, therefore the bid price may not accurately reflect the total economic effect of the purchase.
(c) Whether the product or service is specialized or custom produced, and the development of terms, conditions, specifications, and other provisions specifically defining the procurement requires interaction with prospective suppliers.
(d) Where no responsible bidder has submitted a bid in response to the invitation.
(3) If the purchasing agency director determines that competitive sealed bidding is not practical and that competitive sealed proposals and negotiations should be used, the purchasing agency shall:
(a) Develop terms, conditions and general or performance specifications for the product or service required.
(b) In such cases where the award is not necessarily to be based on the lowest negotiated price, the request for proposals shall indicate and define the relative importance of price and other significant evaluation factors.
(c) Provide adequate public notice as in the case of competitive sealed bids.
(d) Sealed proposals shall be received at the time and place designated in request for proposals. A proposal received after the closing date and time set for the receipt of proposals, is late and shall not be considered. No proposals shall be handled so as to permit disclosure of the contents of any proposal to competing offerers during the process of negotiation. Submission of the proposal shall be conditioned on not disclosing the proposals content until the completion of negotiations and award of a contract. Proposals shall be opened in the presence of witnesses. Proposals and modifications shall be shown only to city personnel having a legitimate interest in them or persons assisting in the city evaluation.
(4) After the opening and evaluation of competitive sealed proposals, written or verbal negotiations may be conducted with one or more parties who have submitted proposals. Such negotiations are designed to achieve terms and conditions most favorable to the city. Negotiations need not be conducted where time constraints preclude additional negotiations or where the purchasing agency certifies that acceptance of an initial offer without discussion, would result in fair and equitable prices. The request for proposals shall clearly define the city's rights pertaining to negotiations.
(5) Award shall be made to the proposer whose proposal has been determined to be responsive and most advantageous to the city. The contract file shall contain, in writing, the basis on which award is made.
(Ord. passed 5-3-05; Am. Ord. passed 12-6-11)