Procurements shall be made by 1 of the following methods: small purchase procedures, competitive sealed bids, competitive negotiation and noncompetitive negotiation, which are defined as follows:
(A) Small purchases.
(1) Purchase of supplies, equipment and services which cost under $2,500 do not require multiple quotes or written estimates and no legal advertisement is required. Purchase orders are required.
(2) Purchases in the range of $2,500 to $30,000 require a minimum of three quotations from valid sources by telephone, email, fax, hand delivered or letter, with the exception of items under state contract.
(B) Sealed bids.
(1) Purchases, contracts or other agreements over $30,000 require formally advertised, sealed bids or RFPs (requests for proposal) with formal public openings. The requirements for responses are defined by the solicitation. Further information for policies and procedures will be made available during the bidding process.
(2) Bidding will be employed when detailed specifications for the goods or services to be procured can be prepared and the primary basis for award is cost. When the cost of a contract, lease or other agreement for materials, supplies, equipment or contractual services other than those personal or professional exceeds $7,500, an invitation for bids (IFB) notice will generally be prepared. This notice will be published at least once in at least 1 official newspaper of general circulation within the city. This newspaper notice will appear not less than 7 days and not more than 21 days before the due date for bid proposals. The Mayor may also solicit sealed bids from responsible prospective suppliers by sending them a copy of the notice.
(3) The IFB will include a general description of the goods or services to be procured, the bid deposit and bond performance required (if applicable), the location where bid forms and specifications may be secured, the time and place for opening bids, and whether the bid award will be made on the basis of the lowest bid price or the lowest evaluated price. If the lowest evaluated price is used, the measurable criteria to be utilized must be stated in the IFB. The newspaper notice must also contain language which calls to the attention of bidders all applicable requirements which must be complied with such as § 3 of the 1968 Housing Act being 42 U.S.C. §§ 3601 et seq., § 109 of the 1974 Housing and Community Development Act being 42 U.S.C. §§ 5301 et seq., the Civil Rights Act of 1964 being 42 U.S.C. §§ 1971 et seq., and the David-Bacon Act, being 40 U.S.C. §§ 276a et seq. (issued Sept. 24, 1965 and dealing with employment opportunity).
(4) Sealed bids will be opened in public at the time and place stated in the IFBs. The bids will be tabulated by the City Clerk/Treasurer at the time of bid opening. The results of the tabulation and the bid documents will be examined for accuracy and completeness by the review committee, which will make recommendations to the City Council. In addition, the committee determines that all firms are responsive and responsible. The City Council will make the decision as to whom the contract shall be awarded. After the bid award is made by the City Council, a contract will be prepared for execution by the successful bidder. After the contract is signed, all bid deposits will be returned to all unsuccessful bidders.
(5) The city may cancel an invitation for bid or reject all bids if it is determined in writing that such is in the best interests of the city. The city may allow a vendor to withdraw a bid if requested at any time prior to the bid opening. Bids received after the time set for bid opening shall be returned to the vendor unopened.
(C) Competitive negotiation.
(1) The city will utilize competitive negotiations, regardless of contract amount, upon a written determination that:
(a) Specifications cannot be made specific enough to permit the award of a bid on the basis of either the lowest bid price or the lowest evaluated bid price (in other words, bidding is not feasible).
(b) The services to be procured are professional or personal in nature.
(2) With the exception of procurement of certain professional services (principally engineering and legal services), competitive negotiations will proceed as follows:
(a) Proposals will be solicited through newspaper advertisement; additionally, a request for proposal (RFP) may be prepared and mailed to qualified vendors. The newspaper advertisement must be published at least 7 days and not more than 21 days before the date for the receipt of the proposals. The RFP will describe services needed and identify the factors to be considered in the evaluation of proposals and the relative weights assigned to each selection factor. The RFP will also state where further details regarding the RFP may be obtained. The RFP will call attention to the same regulations discussed in the bidding process. Requests for proposals will always include cost as a selection factor.
(b) Award must be made to the offeror whose proposal is determined in writing by a review committee to be the most advantageous to the city. Evaluations must be based on the factors set forth in the request for proposal and a written evaluation of each response prepared. The review committee may contact the firms regarding their proposals for the purpose of clarification and record in writing the nature of the clarification. If it is determined that no acceptable proposal has been submitted, all proposals may be rejected. New proposals may be solicited on the same or revised terms or the procurement may be abandoned.
(3) For the procurement of certain professional services, an alternative to RFPs may be used. The city may publish a request for qualifications. RFQs are handled in a similar method to RFPs, with the exception that cost is not a factor in the initial evaluation. A review committee will evaluate the responses and rank them by comparative qualifications. The highest scoring person or firm will be contacted and the selection committee will negotiate cost. If the committee is unable to negotiate a satisfactory cost arrangement, the second highest scoring person or firm will be invited to negotiate. The committee will maintain a written record of all these negotiations.
(D) Noncompetitive negotiations.
(1) Noncompetitive negotiations may be used for procurement in excess of $30,000 when bidding or competitive negotiation is not feasible. The city may purchase goods and services through noncompetitive negotiations when it is determined in writing by the Mayor that competitive negotiation or bidding is not feasible and that:
(a) An emergency exists which will cause public harm as a result of the delay caused by following competitive purchasing procedures;
(b) The product or service can be obtained only from 1 source;
(c) The contract is for the purchase of perishable items purchases on a weekly or more frequent basis;
(d) Only 1 satisfactory proposal is received through RFP or RFQ; or
(e) The state has authorized the particular type of noncompetitive negotiation (for example, the procurement of services by an area development district).
(2) Procurement by noncompetitive negotiation requires the strictest attention to the observation of impartiality toward all suppliers. The Office of Community Development must approve all procurements by noncompetitive negotiation when only 1 supplier is involved or only 1 bid or response to an RFP/RFQ is received.
(1997 Code, § 245.2) (Ord. 92-019, passed 10-14-1992; Am. Ord. 2020-002, passed 3-2-2020)