Procurements shall be made by one (1) of the following methods: small purchase procedures, competitive sealed bids, competitive negotiation, or non-competitive negotiation.
(A) Small purchases.
(1) Purchases of supplies, equipment, and services which cost between two hundred dollars ($200.00) and ten thousand dollars ($10,000.00) will require written estimates but no legal advertisement is required. The city will solicit written responses from at least three (3) vendors, and if no such responses are available, a statement explaining the procurement will be prepared and filed.
(2) Purchases which cost between fifty dollars ($50.00) and two hundred dollars ($200.00) require three (3) over-the-telephone quotations of rate, price, etc. A memorandum will be prepared setting forth the date the calls were made, parties contacted, and prices obtained. For purchases of less than fifty dollars ($50.00), efforts will be made to get the lowest and best price, but written records of such efforts are not necessary.
(B) Competitive sealed bids.
(1) 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. Then the cost of a contract, lease, or other agreement for materials, supplies, equipment, or contractual services other than those personal or professional exceeds ten thousand dollars ($10,000.00), an Invitation for Bids (hereinafter referred to as “IFB”) notice will generally be prepared. This notice will be published at least once in at least one (1) official newspaper of general circulation within the community. This newspaper notice will appear not less than seven (7) days nor more than twenty-one (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 such notice.
(2) 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 Section 3 of the 1968 Housing Act, Section 109 of the 1974 Housing and Community Development Act, the Civil Rights Act of 1964, Executive Order 11246, and the Davis-Bacon Act.
(3) 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 Board of Commissioners. In addition, the committee determines that all firms are responsive and responsible. The Board of Commissioners will make the decision as to whom the contract shall be awarded. After the bid award is made by the Board of Commissioners, 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.
(4) The city may cancel an IFB 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 services), competitive negotiations will proceed as follows:
(a) Proposals will be solicited through newspaper advertisement; additionally, a Request for Proposal (hereinafter referred to as “RFP”) may be prepared and mailed to qualified vendors. The newspaper advertisement must be published at least seven (7) days and not more than twenty-one (21) days before the date for 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 RFP 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 (hereinafter referred to as “RFQs”). 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 such negotiations.
(D) Non-competitive negotiations.
(1) Non-competitive negotiations may be used for procurements in excess of ten thousand dollars ($10,000.00) when bidding or competitive negotiations are not feasible. The city may purchase goods and services through non-competitive 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 one (1) source;
(c) The contract is for the purchase of perishable items purchased on a weekly or more frequent basis;
(d) Only one (1) satisfactory proposal is received through RFP or RFQ; or
(e) The state has authorized the particular type of non-competitive negotiation (e.g., the procurement of services by an Area Development District).
(2) Procurement by non-competitive negotiation requires the strictest attention to the observation of impartiality toward all suppliers. The Office of Community Development must approve all procurements by non-competitive negotiation when only one (1) supplier is involved or only one (1) bid or response to an RFP/RFQ is received.
(Ord. 89-6, passed 2-2-89)
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Cross reference:
Penalty for violation, see § 23.999