A. General Authority: Subject to the limitations of this chapter, any type of agreement which is appropriate to the procurement and which will promote the best interest of the City may be used, provided that the use of a cost plus a percentage of cost agreement is prohibited. A cost reimbursement agreement may be used only when a determination is made in writing that such agreement is likely to be less costly to the City than any other type or that it is impracticable to obtain the supply, service, or construction item required except under such an agreement.
B. Multiterm Agreements:
1. Specified Period: Unless otherwise provided by law, an agreement for supplies or services may be entered into for any period of time deemed to be in the best interests of the City, provided the terms of the agreement and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the annual availability and appropriation of funds therefor.
2. Determination Prior To Use: Prior to the utilization of a multiterm agreement, it shall be determined in writing:
a. That estimated requirements cover the period of the agreement and are reasonably firm and continuing; and
b. That such an agreement will serve the best interests of the City by encouraging effective competition or otherwise promoting economies in City procurement.
3. Cancellation Due To Unavailability Of Funds In Succeeding Fiscal Periods: When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the agreement shall be canceled and the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies or services delivered under the agreement. The cost of cancellation may be paid from any appropriations available for such purposes.
C. Multiple Source Contracting:
1. General: A multiple source award is an award of an indefinite quantity agreement for one (1) or more similar supplies or services to more than one (1) bidder or offeror. The obligation to order the City's actual requirements is limited by the provision of Uniform Commercial Code section 2-306(1).
2. Limitations On Use: A multiple source award may be made when award to two (2) or more bidders or offerors for similar products is necessary for adequate delivery, service, or product compatibility. Any multiple source award shall be made in accordance with the provisions of sections 3.10.080, "Competitive Sealed Bids", 3.10.090, "Competitive Sealed Proposals", 3.10.110, "Small Purchases", and 3.10.160, "Procurement For Emergencies And Public Threats", of this chapter, as applicable. Multiple source awards shall not be made when a single award will meet the City's needs without sacrifice of economy or service. Awards shall not be made for the purpose of dividing the business, making available product or supplier selection to allow for user preference unrelated to utility or economy, or avoiding the resolution of tie bids. Any such awards shall be limited to the least number of suppliers necessary to meet the valid requirements.
3. Agreement And Solicitation Provisions: All eligible users of the agreement, shall provide that:
a. The City shall reserve the right to take bids separately if a particular quantity requirement arises which exceeds its normal requirement or an amount specified in the agreement; and
b. The City shall reserve the right to take bids separately if the Purchasing Agent, or designee, approves a finding that the supply or service available under the agreement will not meet a nonrecurring special need of the City.
4. Intent To Use: If a multiple source award is anticipated prior to issuing a solicitation, the City shall reserve the right to make such an award and the criteria for award shall be stated in the solicitation.
5. Determination Required: The Purchasing Agent, or designee, shall make a written determination setting forth the reasons for a multiple source award, which shall be made a part of the procurement file. (Ord. 17-14)