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A. Generally: A procurement official shall select the manner of procuring any supplies and services, and the official has broad discretion to choose the methods appropriate for a particular procurement. Generally, sealed proposals should be used to procure most professional services, and may otherwise be used as determined to be beneficial to the City. Offerors may first be prequalified using a request for qualifications or similar process.
B. Proposal Procedures: Each procurement unit may develop written proposal procedures that comply with the Procurement Code and Rules to guide operational matters.
C. Administration Process: An RFQ or RFP shall be administered in the following manner:
1. Selection Committee: A procurement official shall approve a selection committee to oversee the administration of an RFQ or RFP process, and shall notify the Chief Procurement Officer of the names of all persons serving on the committee. The selection committee shall be formed as follows:
a. Generally, the committee shall consist of an odd number of voting members that is not less than three (3), together with one nonvoting member. However, a procurement official has discretion to determine how many members will be on the committee, and whether any members will be nonvoting members.
b. Whenever possible, all voting members shall be persons with experience or expertise in the subject matter of the solicitation. They may be City employees, consultants to the City, or other members of the community. All committee members shall comply with Federal, State and local ethics and conflict of interest requirements (see section 53-1A-11 of this article), and any other restrictions relevant to forming the committee.
c. Whenever possible, at least one voting member shall be a City employee who shall work with the supplies or services being solicited after the award of the contract.
d. Whenever possible, a nonvoting committee member, or other committee member(s) as appropriate, shall be designated as a contact person or persons for communications with prospective offerors. The names of other committee members shall not be revealed to prospective offerors, and they shall not enter such communications.
e. Nonvoting member(s) of a committee, if any, shall assist the committee with negotiations and with administrative matters.
2. Submissions: Submissions shall be made as follows:
a. RFP Submissions: Prior to the solicitation, the procurement official or that person's delegee shall determine what materials must be submitted by respondents. Submissions may, but are not required to, include a price proposal, and the City shall specify how and when price proposals shall be delivered to the selection committee. At the City's discretion, costs or fees may be submitted as a range.
b. RFQ Submissions: Prior to the solicitation, the procurement official or that person's delegee shall determine what materials must be submitted by respondents. Submissions shall initially include qualifying information, and may, but are not required to, include a subsequent technical proposal and/or price proposal. The City may limit the persons who may submit a technical and/or price proposal to those who are short listed by the selection committee. The City shall specify how and when technical and/or price proposals shall be delivered to the selection committee, and the City may issue a request for technical proposals or other materials giving guidance to offerors. At the City's discretion, costs or fees may be submitted as a range.
c. Effect Of Submission: At the time when any submission is due, the proposal on record with the City at that time shall be a binding offer. The City may reopen the submission time period as it shall determine.
3. Opening And Evaluating Submissions: All submissions shall be opened privately to prevent disclosure of their contents or any confidential information. The City may use any fair and equitable means to assist the City in evaluating submissions and determining what is in the City's interest, including the following:
a. Discussions, Research And Revisions: The committee may conduct oral or written discussions with respondents through nonvoting members of the committee or as otherwise directed by a procurement official. They also may conduct independent research, request additional information, or take other action. Offerors shall be accorded fair and equitable treatment with respect to any opportunity for discussions or revisions of proposals. The City may make any inquiries it desires to make during the solicitation process.
b. Interviews: The committee may conduct interviews with respondents, giving each equal opportunity to make a presentation to the committee.
c. Demonstrations: On an equitable basis, the committee may require any tests, demonstrations, examinations, submissions of additional information, or other matters which it may determine.
d. Negotiation/Discussion Guidelines: The procurement official, in consultation with the Department Director, City Council or other authority responsible for making a determination, shall designate who may discuss matters or negotiate on behalf of the City, and such person(s) shall be person(s) well suited to achieve the City's objectives. In the context of informing a selection committee of information submitted by offerors, that person will often be a nonvoting member of the committee. For technical negotiations, that person will often be the City employee on the committee who will work with the supplies or services after an award of the contract. No parties other than those designated by the procurement official shall conduct discussions or negotiations. All discussions will be conducted in a manner to prevent the disclosure of any confidential information, or the disclosure of the contents of any proposal or other submission to any other person.
e. Evaluation: Each voting member of the committee shall evaluate and/or rank each response using an evaluation form prepared by a nonvoting member of the committee, or prepared in such manner as the procurement official may direct. The criteria in the evaluation form shall assist the committee with examining the respondents' qualifications or determining what offer is most advantageous to the City in light of the needs described in City's request. If separate price proposals are submitted, normally the committee will not open price proposals before evaluating and/or ranking respondents.
f. Short Listing Respondents: The selection committee may form a short list of respondents who will be evaluated further. The selection committee shall select at least three (3) respondents who appear to be qualified to perform work or submit offers to the City. If there are not three (3) qualified respondents, a procurement official or Department Director responsible for the procurement may determine to negotiate with any qualified persons and make an award when in the City's interest. The procurement official may also cancel the solicitation, and may resolicit.
D. Selection Process: Selections shall be made as follows:
1. Ranking: After the selection committee has completed its evaluation, it shall rank all offers in the manner established by the procurement official. Submissions may be evaluated on the basis of ability to perform the work, with price to be established by negotiations with the best ranked offeror. However, before any price proposals are opened, the procurement official may determine to place additional weight on them.
2. Recommendation: After evaluating and ranking all offers, the selection committee shall submit such rankings to the Department Director, City Council or other authority responsible for making a determination. Such rankings shall be submitted in the manner directed by the procurement official, and shall constitute a recommendation based on the best judgment of the selection committee. The Department Director, City Council or other authority responsible for making a determination shall carefully consider the recommendation of the selection committee, and shall determine which offer is most advantageous to the City in light of the evaluation criteria set forth in the solicitation materials and in the Procurement Code and Rules. Such determination shall constitute the top ranked offeror, and other offerors may be ranked as necessary.
3. Negotiations And Award: When the City solicits a fixed bid price as a part of a proposal, negotiations over price are not necessary. Otherwise, the City may enter negotiations with the top ranked offeror to obtain a favorable price, and may reject that offer if the City is not satisfied with the offer. If the City rejects an offer, it may proceed with negotiations with subsequently ranked offerors in similar manner to obtain an acceptable offer, or may reject all offers. Any award shall be made by the Department Director, City Council or other authority responsible for making a determination, to the offeror proposing the offer that is most advantageous to the City in light of price and the evaluation criteria set forth in the solicitation materials and in the Procurement Code and Rules.
E. Modifying Or Withdrawing Proposals: Proposals or other submissions under this article may be modified or withdrawn at any time before the City accepts an offer as follows:
1. Modification: Any offeror prior to short listing, or a short listed offeror thereafter, may modify a proposal at any time by delivering a written notice of the modification signed by the offeror. The modification must be set forth clearly.
2. Withdrawal: Upon providing proof of identity, an offeror may withdraw a proposal at any time by physically retrieving the proposal, or by delivering an original, signed notice that the proposal is withdrawn. The procurement official has sole discretion to determine whether to permit the release of any securities.
3. Delivery: It is solely the offeror's responsibility to properly deliver any written modification or withdrawal. Delivery must be made to the procurement official with responsibility for the proposal. (2019 Compilation)
A. Generally: Bids, proposals, contracts and related matters may be evaluated using the criteria in this section.
B. City's Evaluation Process: When evaluating matters, the City shall consider the following:
1. Solicitation Criteria: The City shall consider the evaluation criteria stated in a bid or proposal package or other solicitation document.
2. Article Criteria: As further described in this section, the City shall consider whether a bid, proposal or other offer or submission is responsive to the City's request, whether the bidder or offeror is responsible, and whether any element conflicts with the other criteria of this section.
3. Due Diligence: Each procurement unit, department or division may take steps as it deems appropriate to verify and determine any matter. The procurement unit, department or division shall determine in its sole discretion what steps may be appropriate in light of the matters being considered and the resources of the unit, department or division. The failure to discover any matter shall not preclude any subsequent evaluation or action.
4. Consultation With Attorney: Procurement officials, procurement units, departments and divisions shall consult with the City Attorney's Office as needed when evaluating or determining any matter.
5. Records: In the manner it shall determine, each procurement unit shall retain in a procurement file records relevant to a solicitation or award.
6. Contract Management: The City may reevaluate any matter arising under a contract which is in conflict with its procurement, or with the Procurement Code or Rules. Any previous determination made by the City shall be subject to change by subsequently discovered matters.
C. Evaluating Responsiveness: To be responsive, a bid, proposal or other offer or submission must conform in all material respects to the terms of the City's solicitation documents. Such terms may include, but are not limited to, using bid forms, mandatory submittals, required securities and appropriate substantive responses. Ministerial errors and other matters in a bid, proposal or other offer or submission will not necessarily render it nonresponsive, and the procurement official shall review such matters and determine whether the submission is responsive.
D. Evaluating Responsibility: To be responsible, a bidder or offeror must have the capability in all respects to fully perform the contract requirements, and have the integrity, capacity and reliability which will assure good faith performance.
1. Factors: The City may consider any relevant factors when evaluating responsibility, including the following:
a. The person's capacity to perform the contractual requirements, including whether the person has available appropriate financial, material, equipment, facility and personnel resources and expertise, or the ability to obtain them. Without limitation, capacity may also include legal capacity to enter contracts, the ability to perform within required times, or the ability to perform any necessary future service and maintenance.
b. The person's ability, skill and quality of performance.
c. The person's character, integrity, reputation, judgment, experience and efficiency.
d. The person's ability to work cooperatively with the City, including, without limitation, whether the person has previously failed to comply with City contracts or other requirements, nonpayment of sums due to the City, poor working relationships with or adversarial actions against the City, suspension, debarment or other proceedings by the City against the person, or failure to assist the City in determining responsibility.
2. Making A Determination: The submission of any bid, proposal or other offer or submission constitutes an agreement by the bidder or offeror to reasonably assist the City with its determination of responsibility.
3. Effect Of Determination: The City's determination of responsibility relates solely to a person's overall ability to perform for a specific procurement, and is not a general assessment of a person's capabilities.
E. Evaluating Specific Matters: For any bid, proposal, other offer or submission:
1. Joint Ventures: A joint venture may submit a bid, proposal or other offer or submission if the circumstances of the joint venture are acceptable to the procurement official. The joint venture must obtain this determination before a contract may be signed.
2. Consultants: Persons who have provided services to the City in connection with a bid, proposal or other offer or submission, such as by preparing specifications or designs, performing surveying or testing, or any other function, may participate in a subsequent solicitation and award except when a procurement official determines it would not be in the City's interest. Such a determination and the written basis for decision will be placed in the procurement file.
3. Multiple Or Alternate Bids, Proposals Or Other Submissions: Multiple or alternate bids, proposals or other offer or submissions will not be considered or accepted unless they have been solicited. A base bid or proposal, when clearly indicated, shall be considered as though it were the only bid or proposal. Multiple or alternate bids may be solicited as provided in section 53-1A-7F of this article.
4. No Dependant Bids: Bid, proposal and other offer or submission materials and prices must stand alone and not be dependant on the submission of another person.
5. Tie Bids: Tie bids occur when identical prices are submitted from responsive and responsible bidders and that price is the low bid. The procurement official shall make an award in a manner that is beneficial to the City, and may make an award in a manner that will discourage tie bids. Such manners may include:
a. Award to the person that has a fixed office or distribution point within Salt Lake City boundaries, and a business license from the City stating a Salt Lake City address.
b. Award to the person who previously held the contract.
c. Award to the person with the earliest delivery date.
6. Only One Received: If the City receives only one responsive bid, proposal or other offer or submission, the City may make an award to that bidder or offeror if a procurement official determines the bid, proposal or other offer or submission is fair and reasonable and conforms to all applicable requirements, and that other prospective bidders or offerors had reasonable opportunity to respond or that there is not adequate time for a resolicitation. The written determination and basis for decision shall be placed in the procurement file. The City may also reject the sole bid, proposal or other offer or submission.
F. Inspections And Tests: The City may perform inspections, tests and other evaluations in any manner conducive to the City's interest, including, without limitation, the use of third parties. All prospective and actual recipients of a City contract shall provide all reasonable assistance and information required by the City to perform an inspection, test or other evaluation.
G. Modifying Submissions: After the time for submission, a bid, proposal or other offer or submission may be modified as follows:
1. Confirmation Of Bid, Proposal Or Other Matter: When it appears a mistake has been made, or when the City desires an assurance of any matter, the City may request a bidder or offeror to confirm the bid, proposal or other offer or submission in writing.
2. Notification Of Error: A bidder or offeror shall notify the procurement official of any error contained in a bid, proposal or other offer or submission within two (2) business days after bid opening or the time for submitting proposals unless the procurement official waives this requirement. The procurement official shall have sole discretion to determine whether to permit any modification or withdrawal.
3. Modifications By Agreement: A procurement official may agree with a bidder or offeror to any modifications so long as they do not prejudice fair competition or the City's interests. Modifications may include such matters as:
a. Time For Accepting: The procurement official and bidder or offeror may agree that a bid, proposal or other offer or submission will remain effective for a longer period of time than that stated in the bid, proposal or other offer or submission.
b. Subcontractor Or Supplier Changes: Any proposed change in subcontractors or suppliers must be submitted to the procurement official, and the procurement official may reject any such proposed change. The bidder or offeror will receive no additional compensation as a result of a change to any subcontractors or suppliers, and must continue to meet the requirements of any Federally mandated program and other contractual and legal requirements.
c. Change In Specifications: The procurement official and bidder or offeror may agree to a change in specifications when such change is in the City's interest, is reasonably related to the work originally solicited, and would not be prejudicial to fair competition.
4. City's Correction Of Ministerial Mistakes: A procurement official may at any time correct mistakes in a bid or proposal that are of a ministerial or minor nature as follows:
a. Ministerial Mistakes: Ministerial or minor informalities are clerical errors and matters of form rather than substance that are evident from the document, or insignificant mistakes or informalities that can be waived or corrected without prejudice to other bidders or offerors. They generally do not have a substantial effect on price. Examples include a failure to:
(1) Sign the bid, proposal or other submissions requiring signature, but only where they are accompanied by other materials indicating an intent to be bound.
(2) Acknowledge receipt of an addendum, but only if the materials demonstrate the bidder or offeror received the addendum and intended to be bound by it, or the addendum has a negligible effect on the bid, proposal or other offer or submission.
b. Mistakes Where Intent Is Evident: If the intent of the bid, proposal or other offer or submission is clearly evident on the face of the document, the procurement official shall correct it as intended and it may not be withdrawn. Examples include:
(1) Typographical errors.
(2) Errors in extending unit prices.
(3) Transposition errors.
(4) Arithmetical errors.
(5) Differences in written and numerical prices (written shall control).
c. Mistakes Where Intent Not Evident: If the bidder or offeror's intent is not clearly evident on the face of the document, the bid, proposal or other offer or submission may not be withdrawn except as agreed by the procurement official.
5. Correcting Errors In Judgment: Errors in judgment may not be corrected, and the bid, proposal or other offer or submission may not be withdrawn, except as agreed by the procurement official. The official may allow correction of an error in judgment if it can be done without prejudice to other bidders or offerors. The official may allow withdrawal if it is in the City's interest.
H. Evaluating Cost Or Price: The City may require the submission of any cost, price or value data, and may evaluate such data in any manner determined by a procurement official. Such evaluation may include an analysis of life cycle costs, market pricing, rebates or discounts, direct costs, indirect cost allocations, profit, billing and accounting techniques, price balance among bid or proposal items, or any other matters relating to cost, price or value. The City may take any of the following actions in connection therewith:
1. Reject Bid Or Proposal: The City may reject any unbalanced bid, proposal or offer. The City may also reject any bid, proposal or offer where cost, price or value data is not provided as reasonably requested, or where such data indicates conditions that are not in the City's interest.
2. Audit: At reasonable times and places, the City may audit or cause to be audited the books and records of any person submitting cost or price data to determine whether they are reasonable and accurate, and in compliance with any other requirements. (2019 Compilation)
A. Generally: This section provides guidance for selecting types of contracts and making contract modifications.
B. Selecting Contract Type: The procurement official shall select the type of contract that is appropriate for a particular procurement to protect the City's interest. Without limitation, the official may consider the following factors:
1. City Criteria: The procurement official should consider the City's needs, including needed quality of performance, costs, time for performance and completion date.
2. Product Criteria: The procurement official should consider the type and complexity of the supply or service item being procured, and the stability of markets and prices.
3. Nature Of Performance: The procurement official should consider the difficulty of estimating performance costs, such as when the City is unable to develop definitive specifications, identify the contractor's risks inherent in performing the work or otherwise clearly establish contract requirements.
4. Risk: The procurement official should consider the amount of risk imposed by a contract type on both parties. The degree of risk should not jeopardize any material interests of the City, or the satisfactory performance of the contract.
5. Administrative Impacts: The procurement official should consider the administrative impacts to both parties, such as administration costs, the degree to which the City must provide technical coordination during the performance of the contract, and the ability to meet any Federal requirements.
6. Competition: The procurement official should consider the effect of the choice of contract type on the amount of competition expected.
C. Contracting Methods For Establishing Price: The procurement official may structure a contract in any manner, but shall not issue a cost plus a percentage of cost contract. The following are some methods of establishing price in a contract:
1. Fixed Price Contracts: The contractor performs for a price that is fixed in the contract, or that is subject to contractually specified adjustments.
a. Price Adjustments: Price adjustments, if allowed, are specified in the contract based on conditions such as changes in labor rates, periodic increases in an economic index, increases by an agreed percentage or specified changed conditions. The contract should provide for the time and manner of any adjustments.
b. When Not Appropriate: Fixed price contracts can result in inflated prices and poor performance when risks are unknown or not readily measurable, or the type or amount of work is not known.
2. Cost Reimbursement Contracts: This type of contract allows the City to reimburse the contractor for allowable and incurred costs as specified in detail in the contract. It may establish a target performance cost and/or a ceiling the contractor cannot exceed and may provide for payment of a fee.
a. When To Use: Cost reimbursement contracts are most appropriate when it is difficult to reasonably estimate the cost of performance. They require careful contract management to verify performance, price and allowable costs, and the contractor must have in place a suitable accounting system consistent with generally accepted accounting principles.
b. Cost Plus Fixed Fee Contracts: Fees in cost reimbursement contracts are generally negotiated as a fixed sum which does not vary unless the scope of work increases.
3. Cost Incentive Contracts: This type of contract allows the City to make cost effective performance a priority, and to share cost risks with the contractor. The City sets a target cost and will reimburse allowable and incurred costs up to a ceiling amount. Under a formula established in the contract, the contractor is rewarded or penalized for performing below or exceeding a target cost or the ceiling amount. Profit or fee is dependent on how effectively the contractor controls costs.
a. When To Use: These contracts are most appropriate when it is difficult to reasonably estimate the cost of performance, when uncertainties and contingencies may exist, or when monetary incentives will benefit the performance. They require careful monitoring, accounting and determining of what costs are allowable as with cost reimbursement contracts.
b. Fixed Price Cost Incentive Contracts: The contract establishes: 1) a target cost; 2) a target profit; 3) a ceiling price; and 4) a formula that increases or decreases the target profit by a specified percentage if costs go above or below the target cost or ceiling price. However, the final total of reimbursed costs and the contractor's fee may not exceed the ceiling price despite the actual cost of complete performance.
c. Cost Reimbursement Contract With Cost Incentive Fee: The contract establishes the same elements as a fixed price cost incentive contract and also establishes maximum and minimum fee limitations. The final price of costs reimbursed under the contract may not exceed the ceiling price, but profit varies depending on whether the target cost or ceiling price were exceeded.
4. Time And Materials Contracts: The City reimburses the contractor for materials at cost and labor performed at an hourly rate, which includes overhead and profit. These contracts provide no incentives to minimize costs, and they should be managed carefully and used with a not to exceed amount.
5. Unit Price Contracts: The City contracts to pay a fixed price for a defined unit of materials, and the final contract price is calculated based on the number of units used in the performance.
D. Other Contracting Methods: Without limitation, the following describes other contracting methods available to the City:
1. Definite Quantity Contracts: The contractor must deliver a specified quantity of supplies or services either at specified times or when ordered.
2. Indefinite Quantity Contracts ("Open Contracts"): The contractor must deliver an indefinite quantity of supplies or services as ordered over a fixed period of time. The contract may provide for minimum or maximum quantities, price adjustments, not to exceed amounts and delivery methods.
3. Requirements Contracts: A department or division obtains all of its requirements for a specified supply or service from a contractor during a specified period of time. The contract may reserve the right to publicly solicit for particular matters, such as for other than ordinary needs.
4. Performance Incentives: The contract provides a formula for paying additional compensation if the contractor meets or exceeds specific performance goals, such as early completion.
5. Time And Materials Work: The contract permits specified types or portions of the work to be performed on a time and materials basis, such as where the contractor is required to perform regardless of a dispute, or for matters submitted under a contractual allowance.
6. Allowances: The contract creates allowances to pay for the performance of certain types of work. The contract must specify all work that is compensable under the allowance, a system of accounting for payment, and a maximum dollar amount that may be charged to the allowance. Allowances may be increased by amendment to accommodate matters reasonably within the scope of the original solicitation at the discretion of the procurement official.
7. Not To Exceed Amounts: Any contract, or portions of any contract, may be limited to an amount which may not be exceeded. Not to exceed amounts may be increased by amendment to accommodate matters reasonably within the scope of the original solicitation at the discretion of the procurement official.
8. Progressive Awards: The procurement official may award portions of a definite quantity requirement to more than one contractor as appropriate, such as when the City's quantity needs exceed what one contractor can supply at the needed times.
9. Multiple Awards: The procurement official may award an indefinite quantity contract for one or more similar supplies or services to more than one bidder or offeror. Multiple awards should not be made solely for the purpose of dividing business or accommodating a user's preference, but may be made when determined to provide a benefit to the City with respect to needs for quantity, delivery, style, price, quality or other features.
10. Time And Dollar Bidding Awards: The procurement official may solicit bids for the cost of performing a project (part A), and the time to complete the project using an established cost per day based on an appropriate analysis by the City (part B). Award is made to the lowest combined bidder (A+B).
11. Exclusive/Nonexclusive Basis: Awards may be made on an exclusive or nonexclusive basis. Where nonexclusive, the City is not required to fill all similar needs from one contractor, but may solicit as it determines. Where a contract does not specifically state it is exclusive, it shall be deemed nonexclusive.
12. Appropriation Of Funds: Contracts extending beyond the current fiscal period shall be subject to termination for nonappropriation of funds for departments or divisions which rely on the General Fund.
13. Options To Extend Term: Contracts may include provisions to extend a contract term for specified periods at the City's option.
E. Modifying Contracts: Contracts relating to procurement may be modified as follows:
1. Generally: All modifications to contracts must be in writing and signed by all parties. Modifications shall modify only the specific terms set forth, and all other contract provisions shall remain as originally entered. Modifications shall comply with the requirements for contracts set forth in title 3, chapter 3.25 of the City Code.
2. Modifications Not Affecting Scope, Price Or Term: Any contract provisions not affecting the scope, price or term of the contract may be modified as determined appropriate by the procurement official and the department or division, and they shall consult with the City Attorney's Office as necessary.
3. Modifications Affecting Price: The procurement official shall review any proposed modification that significantly increases price to determine whether there has been a material change in the scope of the work originally solicited or whether the modified price may be unreasonable.
4. Modifications Affecting Scope Of Work: The City may decrease any scope of work when in the City's interest. The procurement official may increase any scope of work as the official shall determine appropriate when in the City's interest, when the modifications are reasonably related to the work originally solicited, and when the price for the increase appears reasonable.
5. Modifications Affecting Term: Contracts may be renewed or extended by the procurement official in consultation with the department or division. Extensions cannot be used solely for the purpose of avoiding a solicitation process.
6. Modifications To Open Contracts: In an open contract, the contractor generally agrees to provide specified supplies or services as needs arise during a fixed term, and the contract may include a total not to exceed price during the term. When the contract does not include a not to exceed price, the contract's term can only be extended when approved in writing by a procurement official. When the contract includes a not to exceed price, the procurement official may approve an increase in price if the term is not exceeded, and the term may be extended when the not to exceed price is not exceeded. The procurement official must approve in writing an increase in both term and price. When practicable, these contracts should be resolicited rather than being modified to extend a term.
7. Modifications To Small Purchase Contracts: Contracts solicited under the small purchase procedures of the Procurement Code and Rules may not be modified in excess of the maximum dollar amounts permissible for such purchases, and may not be renewed on a successive basis, unless approved by the procurement official as provided in section 53-1A-12 of this article.
F. Terminating Contracts: No contract procured in connection with this article shall be terminated without the authorization of the City official who signed the contract or that persons' successor, or the procurement official. (2019 Compilation)
A. Generally: All persons participating in a procurement process shall act in accordance with Federal, State and City ethics and conflict of interest requirements. City procurement personnel shall prevent abuses of the procurement system as described below. In addition to complying with the laws cited below, all persons shall comply with the requirements of this section.
B. Prohibited Acts: With respect to procurement matters, City employees, officers and appointees, or any other person participating in a procurement process, shall comply with all applicable ethics and conflict of interest laws, which shall include the following:
1. Special Benefits: They shall not use the procurement system to secure special privileges or exemptions for themselves or others because of their positions. See also Utah Code Annotated section 10-3-1304.
2. Gifts Or Loans: They shall not knowingly receive gifts or loans that tend to influence the discharge of their official duties. However, they may accept occasional nonpecuniary gifts valued at less than fifty dollars ($50.00), publicly presented awards, or bona fide loans or political campaign contributions. See also Utah Code Annotated section 10-3-1304.
3. Payment For Assisting In Transactions: They shall not receive or agree to receive compensation for assisting another in a transaction with the City unless they file a disclosure of information with the Mayor as required by State law, and with their supervisors and others who rely on their representations during the transaction. See also Utah Code Annotated section 10-3-1305.
4. Interest In Business Within Regulatory Authority: When they are officers, directors, agents, employees or owners of a substantial interest in an entity under their regulatory authority, they must file a disclosure of information as required by State law. See also Utah Code Annotated section 10-3-1306.
5. Interest In Business Seeking City Business: When they are officers, directors, agents, employees or owners of a substantial interest in an entity anticipating doing business with the City, they must file a disclosure of information as required by State law. See also Utah Code Annotated section 10-3-1307.
6. Interests Conflicting With Public Duties: When their personal interests and investments conflict with their public duties, the conflict must be disclosed as required by State law. See also Utah Code Annotated section 10-3-1308.
7. Individualized Material Benefits: When their actions may result in a specific financial, professional or personal material benefit to them, they must disclose those interests in the manner provided by City Code. See also section 2.44.030 of the City Code.
8. Use Of Confidential Information: They shall not disclose or use confidential information acquired in their jobs for their or another's private gain or benefit. See also section 2.44.040 of the City Code.
9. Contracts Benefiting Self Or Family: They shall not enter contracts in which they or members of their immediate family have any private pecuniary interest, whether direct or indirect, when they have participated in making, recommending or preparing the contract, or when they have or will perform some function in connection with the contract requiring the exercise of discretion on their part, unless the contract is awarded through a public competitive process and the interest is disclosed as provided by City Code. See also section 2.44.080 of the City Code.
C. Manner Of Disclosure: Disclosure under this section must comply with all applicable law, and shall include the following:
1. Relating To Transaction: When disclosure relates to a specific transaction, the disclosing employee, officer or appointee must do the following:
a. Disclosure To Mayor: The employee, officer or appointee must file a sworn statement with the Mayor giving his or her name and address, the name and address of the third party involved in the transaction, and a brief description of the transaction, and the nature of the employee's, officer's or appointee's involvement.
b. Disclosure To Others: The employee, officer or appointee must disclose the same information described above to his or her immediate supervisor, to the responsible procurement official, and to any other City employee, officer or appointee who may rely on his or her representations. If a member of a public body, that body must also receive notice.
c. Time Of Disclosure: The above disclosures must occur at least ten (10) days before the date of any agreement relating to the transaction, or ten (10) days before the date when any compensation may be received, whichever is earlier. See also Utah Code Annotated section 10-3-1305 and section 2.44.060 of the City Code.
2. Relating To Conflict Of Interest: When disclosure relates to a conflict of interest, the disclosing employee, officer or appointee must do the following:
a. Required Disclosure: Upon becoming employed or taking office, the employee, officer or appointee must disclose any positions held, or the nature and value of any substantial interests held, in any business or entity conflicting with City duties, or any business or entity which is subject to regulation by the City and over which that person may have influence. This disclosure must be updated whenever the employee's, officer's or appointee's position in the business changes, or the value of his or her interests significantly increases.
b. Manner Of Disclosure: Disclosure must be made in a sworn statement filed with the Mayor, with a copy to the responsible procurement official. See also Utah Code Annotated section 10-3-1306 and section 2.44.050 of the City Code.
D. Duty Of Procurement Personnel: Procurement personnel shall comply with all requirements imposed on City employees as described above. If they become aware of circumstances that may indicate a violation of any provision of this article on the part of a City employee, officer, appointee or other person who is participating in a procurement, they shall ask the employee, officer, appointee or other person to explain in writing the nature of those circumstances. They shall forward the written explanation to the procurement official. The procurement official shall notify the Chief Procurement Officer and they shall consult with the City Attorney's Office as needed. (2019 Compilation)
A. Generally: This section defines small purchases and the rules governing them. These purchases can only be made by employees who have been authorized, as stated in this article.
B. Small Purchases: Pursuant to subsection 3.24.140A of the City Code, small purchases are defined below and can only be made as stated below:
1. Applicable Purchases: This subsection B applies to the following purchases:
a. Operational Supplies And Services: Contracts for operational supplies, nonprofessional services, or professional services having a total value of not more than seventy-five thousand dollars ($75,000.00).
b. Construction Related Supplies And Services: Contracts for construction-related supplies, nonprofessional services, or professional services having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
c. Building Improvements: Contracts for construction or repair of a public building or structure (not including construction or repair at an international airport) having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
d. Public Works: Contracts for the construction of a park or recreational facility; or a pipeline, culvert, dam, canal, or other systems for water, sewage, stormwater, or flood control (but not including the replacement or repair of existing infrastructure on private property, or construction or repair at an international airport) having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
e. Streets: Contracts for road construction for labor, equipment, and materials having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
2. Who May Make Purchases: Only procurement units under the direction of a procurement official shall make the purchases that are defined in this subsection B, and the procurement unit may make use of the procedures set forth below in lieu of a bid or proposal process:
a. Solicitation And Award: Purchases shall be made by soliciting no less than two (2) businesses.
(1) For purchases of supplies or nonprofessional services, the businesses shall submit telephone or written quotations to meet the City's described needs. The Award shall be made to the business offering the lowest acceptable quotation.
(2) For professional services, the City shall prepare a brief statement of needs. The City may communicate this statement to the businesses in writing or verbally, and the businesses shall submit their qualifications to meet the described needs. The Award shall be made to the business presenting the best overall qualifications and value to the City.
(3) For construction work, the businesses shall submit telephone or written quotations to meet the City's described needs, and if requested by the City, shall submit qualifications in the manner described for professional services. The Award shall be made to the qualified business submitting the lowest acceptable quotation.
b. Records: The procurement unit shall retain a record of the names of the businesses contacted, those offering quotations, and the date and amount of each quotation.
c. Manipulation Prohibited: Purchases shall not be manipulated to fall within this section. Without limitation, contracts shall not be artificially divided, such as by awarding numerous contracts to a single person for substantially similar performances, or by dividing the work required for a single project solely for purposes of making use of this article. The procurement official may impose requirements in addition to those set forth in this subsection B to provide for equitable and competitive procurement in an expeditious manner.
C. No Solicitation Process Required: Pursuant to subsection 3.24.140B of the City Code, minimal or insignificant purchases are defined below. If such purchases are made without solicitation processes, they can only be made as stated below.
1. Definition: This subsection C applies to the following purchases:
a. Purchases of operational or construction-related supplies or nonprofessional services having a total value of not more than five thousand dollars ($5,000.00).
b. Purchases of professional services having a total value of not more than twenty thousand dollars ($20,000.00), but only when such purchase is approved in writing in advance by the Department Director or other authority responsible for the services, and notice of the purchase is sent to the Chief Procurement Officer.
c. Purchases of construction work having a total value of not more than twenty thousand dollars ($20,000.00), but only when such purchase is approved in writing in advance by a procurement official having responsibilities for construction.
2. Who May Make Purchases: A Department Director or a procurement official may authorize a City employee or employees to make purchases under this subsection C, and no other person shall make these purchases. The Department Director or procurement official shall ensure that any person so authorized has been informed of and agrees to the following:
a. All purchases shall comply with the requirements of subsection C1 of this section.
b. Expenditures of City funds shall only be made for a public purpose.
c. No person shall make a purchase in violation of any ethics or conflict of interest laws (see section 53-1A-11 of this article).
d. Purchases shall be made based on the purchaser's best knowledge at the time of the City's needs and available prices, and shall be in the City's best interest.
e. Purchases shall not be manipulated to fall within this section. For example:
(1) Purchases shall not be artificially divided, such as by making several purchases of similar supplies or services at one time, by awarding numerous contracts to a single person for substantially similar performances, or by dividing the work required for a single project solely for purposes of making use of this article.
(2) Purchases shall not exceed the permitted dollar amount. Under no circumstances shall more than one payment process be used to make a single purchase.
(3) Departments should avoid making purchases of similar supplies and services under this section on a regular basis. Other purchasing arrangements can be made to accommodate reoccurring needs.
3. Required Accounting Procedures: Any department or procurement unit making purchases under this subsection C shall implement and follow accounting procedures that are acceptable to the City's Accounting Division.
4. Contract: Any purchases of professional services or construction under this subsection C shall be formalized using a contract, but such contract may state the minimum terms necessary to protect the City's interest.
D. Small Purchase Contract Modifications And Renewals: Any contract solicited under this article shall only be modified or renewed as follows:
1. Modifications: Contracts shall not be modified in excess of the maximum dollar amounts stated in this section unless this requirement is waived by the procurement official pursuant to section 53-1A-14 of this article, and the modification does not conflict with State law.
2. Renewals: Contracts shall not be renewed on a successive basis with the same party unless approved in writing by the procurement official, and written notice of such an approval shall be sent to the Chief Procurement Officer for operational supplies and services, or to the City Engineer for construction-related supplies and services.
Revised June 2022, Revision Effective July 1, 2022
2019 Compilation - Procurement
A. Generally: This section provides guidance on purchasing scenarios involving other government entities, including contracts that may be executed in compliance with the Interlocal Cooperation Act.
B. Solicitation Requirements When Contracting With Government:
1. Cooperative Purchasing Contracts: Whenever the City makes purchases together with another governmental entity, and the contract is entered in compliance with the solicitation procedures of that other entity, the City shall be deemed to have complied with City solicitation requirements.
2. Use Of Government Contracts: Whenever the City contracts to make purchases under contractual terms previously negotiated by another governmental entity, the City shall be deemed to have complied with City solicitation requirements if the contractual terms negotiated by the other governmental entity were entered into in compliance with the solicitation procedures of that governmental entity.
C. Interlocal Cooperation Act: Certain contracts may be executed in compliance with the Interlocal Cooperation Act, Utah Code Annotated title 11, chapter 13. (2019 Compilation)
A. Generally: Procurement processes may be waived under the circumstances described in this section. Any person issuing a waiver should consult with the City Attorney's Office as needed.
B. Who May Waive: Waivers may be issued by the following:
1. Waivers By Procurement Officials: Procurement officials have discretion to waive procurement processes in the manner described in section 3.24.160 of the City Code.
2. Waivers By Mayor Or City Council: The Mayor or the City Council have power to waive matters in the manner described in section 3.24.160 of the City Code.
C. Guidance Regarding Specific Waivers: Certain waivers under section 3.24.160 of the City Code may be issued as follows:
1. Sole Source: Waivers for sole source procurement shall be issued as follows:
a. Definition: Without limitation, sole source procurement may arise when:
(1) The City needs a supply or service of a unique or specialized nature, and only one known supplier is reasonably available to meet the need.
(2) Specific parts, accessories, equipment, materials, services, proprietary items or other items are necessary to meet the City's needs, and there are no comparable items reasonably available.
(3) Items are procured for resale.
b. Process: To use sole source procurement, the procurement official shall place a written determination in the procurement file stating why no other sources are reasonably available, or why competition would not be likely to produce other acceptable offers. Sole source procurement shall not be used solely to accommodate a desire for a particular proprietary item unless the City has a justified need for such item. The procurement official shall negotiate and use appropriate means to obtain the best price available for the item being procured.
2. Procuring To Meet Existing Needs: Waivers for procurement to meet existing needs shall be issued as follows:
a. Definition: There is a need to procure matching or compatible supplies and services when other similar supplies and services would not be reasonably beneficial to meet the City's needs in connection with existing equipment or facilities.
b. Process: To use existing needs procurement, the procurement official shall place a written determination in the procurement file specifying the existing items, and explaining the need to match or service them. The procurement official shall negotiate and use appropriate means to obtain the best price available for the item being procured.
3. Very Specialized Or Confidential Services: Waivers for very specialized or confidential services shall be issued as follows:
a. Definition: Without limitation, the need to procure very specialized services, or services as a part of confidential matters, may arise when:
(1) The City's needs are of a specific and highly specialized nature, and a general solicitation would not be beneficial to produce a person who can meet those needs because of the scarcity of service providers, nature of the expertise needed, conflicts of interest, or other reason.
(2) The services relate to confidential matters, and a solicitation process might disclose or result in adverse consequences with respect to information that is private or confidential. These matters can arise in connection with legal issues, security issues, undercover police activities and similar matters.
b. Process: Except as otherwise provided by the Mayor, to procure on this basis, the procurement official shall place a written determination in the procurement file stating the required service, and explaining why a solicitation process would not be beneficial or would damage confidential interests. The procurement official shall negotiate and use all appropriate means to obtain the best price available.
4. Emergencies And Public Threats: Waivers on this basis shall be issued as follows:
a. Definitions: The conditions specified in the Procurement Code are defined as follows:
(1) Emergency Conditions: An emergency condition creates an immediate and serious need for supplies or services that cannot adequately be addressed using normal procurement methods. Such a need may arise by reason of a natural disaster, epidemic, riot, equipment failure or other reason.
(2) Public Threats: Public threats are circumstances that appear likely to adversely impact the public's health, welfare, convenience or safety. They may arise when circumstances appear to create a risk of environmental contamination, traffic congestion or hazards, disruption of utility or other public services provided by the City, or other matters.
b. Process: The procurement official shall examine the circumstances and determine whether they constitute a condition set forth above. If so, the procurement official may take any action required by such condition. The procurement official shall place in the procurement file a written determination and explanation of the waiver. Actions may occur before such waiver is created in written form as the circumstances may require. A Department Director may take or recommend any action under this subsection C4 to the full extent of the procurement official, and shall place written determinations and explanations in the procurement file and notify the procurement official. Procurement should be as competitive as possible under the circumstances, but priority shall be given to meeting the needs of the emergency or public threat. Only those supplies and services impacted by the condition in question may be acquired under this subsection.
5. Unforeseen Conditions: Waivers on this basis shall be issued as follows:
a. Definition: An unforeseen condition creates a need to procure supplies or services within time frames that could not reasonably be anticipated or accommodated under normal procurement methods. For example, such a need may arise when the City must implement a change that is beneficial to the City in a time frame that will not allow normal procurement methods, and the benefit of proceeding outweighs the benefit of using processes under this section. The procurement official may require the employee making such a request to justify in writing why the matter was unforeseen.
b. Process: After determining that such a condition exists, the procurement official may take any action required by such condition, and shall place in the procurement file a written determination and explanation of the waiver.
D. No Waivers Permitted: No waiver made by a procurement official shall be in conflict with any State or Federal law, or with any authority reserved to the Chief Procurement Officer or City Engineer under the Procurement Code or Rules. (2019 Compilation)
Generally, In accordance with section 3.24.170 of the City Code, the Chief Procurement Officer and City Engineer have determined that the matters set forth in this section are exempt from procurement requirements and shall be procured on any reasonable basis to meet the City's needs.
A. Elevators, Escalators, Moving Walkways and People Mover Systems. Contracts for the purchase, maintenance and repair of elevators, escalators, moving walkways and people mover systems.
B. Undercover Vehicles. Contracts for the procurement, maintenance and repair of undercover vehicles used by the Salt Lake Police Department.
C. Maintenance For Existing Software Systems. Contracts to maintain existing software systems in use by the City. In addition to overall system maintenance, this exemption includes upgrades, license renewals, and subscription renewals necessary for the continued and ongoing use of existing systems by the City.
D. Original Art. Contracts relating to the selection of artists; or otherwise addressing the creation, installation, maintenance, or restoration of original works of art, including but not limited to paintings, photographs, sculptures, and any related fabrication.
E. Governmental Relations Consultants and Lobbyists. Contracts for governmental relations consulting services and lobbyist services.
F. Realtors. Contracts for realtor or broker services related to the City's acquisition or disposition of interests in real property.
G. Executive Searches. Contracts for executive search services.
H. Donations. Contracts that are awarded to a specific supplier, service provider, or contractor to satisfy a condition imposed by a donation or grant that funds the full cost of the supply, service, or construction item.
I. State of Utah Cooperative Purchasing Contracts. Procurement contracts relating to or in conjunction with State of Utah cooperative purchasing contracts for commodities, goods, or services, including construction services or construction-related supplies and services, awarded and administered by the State of Utah that are available to be used by the City.
J Development of an International Airport. Contracts, including the procurement of construction and construction-related supplies or services of the Phase IV expansion of an international airport, or as otherwise necessary to facilitate uninterrupted construction activities for cost savings and consistent facilities when necessary to support planned airline growth, as determined by the City Engineer in consultation with the Director of Airport Design and Construction Management.
K. On-Call Construction and Construction-related Contracts at an International Airport. A pre-qualified pool of on-call contracts for the construction, maintenance, or repair of an international airport, and construction-related supplies or services at an ]\international airport, in excess of bid limits as permitted under state law, which limits are to be determined and established from time to time by the City Engineer, in consultation with the Director of Airport Design and Construction Management, so long as pool participation is publicly bid at a minimum of every three years.
(Revised September 2022)
2019 Compilation - Procurement (Formerly section xx)
A. Generally: This section applies certain laws to specific areas of City procurement. In addition to these requirements, the laws themselves should be reviewed.
B. Accessing And Managing Documents: It is the City's policy that the public should have open access to City records. However, in limited circumstances, records may be protected from disclosure under the Government Records Act. This section summarizes some parts of the Government Records Act. Any person seeking to use or comply with the Government Records Act must rely on the Act and not on this summary.
1. Providing Records: Most records should be provided to the public. Departments or divisions may charge a fee for providing records as set forth in section 2.64.040 of the City Code.
2. Requests For Confidentiality: A third party can ask that records be maintained confidentially only as follows:
a. Protecting Business Records: Some records relating to trade secrets, commercial information and nonindividual financial information can be protected from public disclosure if requested by the submitter.
(1) To make a claim of business confidentiality, a person must provide to the City with the record in question a written claim of business confidentiality, and a specific statement of the reasons supporting the claim. See also Utah Code Annotated section 63G-2-309.
(2) Whenever a record is submitted with a claim of business confidentiality, the City shall mark the record "confidential" and only allow access as specified under the Government Records Act (see subsection B5 of this section). Persons who request confidentiality must defend a challenge to that classification.
b. Confidentiality Agreements: The City shall not enter confidentiality agreements except as may be determined by the City Attorney's Office. Persons desiring confidentiality should examine and rely on the provisions of the Government Records Act.
3. Disclosing Of Bids, Proposals Or Other Submissions: The City may maintain bids, proposals and other submissions confidentially during certain periods.
a. Bids: Generally, the City should make bid documents available to the public after bidding has closed and bids are opened except where there is an appropriate reason to maintain confidentiality. Bids are confidential before that time.
b. Proposals: Generally, the City should make proposal documents available to the public after a contract has been signed except where there is an appropriate reason to maintain confidentiality. All materials are confidential before that time.
c. Exceptions: Under some circumstances, the City may deny access to bid or proposal documents beyond the times stated above. Those circumstances may arise where records are classified as confidential, or where disclosure would impair a procurement proceeding or give any person an unfair advantage. The City Attorney's Office should advise on particular situations.
d. Confidential Portions: Any request to obtain information in a bid or proposal that was submitted under a claim of business confidentially must be examined by the City Attorney's Office as specified in subsection B5 of this section.
4. Other Reasons For Protected Treatment: A variety of conditions can sometimes permit the City to protect records from public disclosure. Some (not all) are summarized below. Any person receiving a written request for records that may be protected shall immediately submit it to the City Attorney's Office as specified in subsection B5 of this section.
a. Records that would impair City procurement proceedings.
b. Records that would give an unfair advantage to any person proposing to enter into a contract with the City.
c. Records that would identify real or personal property, including intellectual property, or its appraised or estimated value, prior to an acquisition, sale, exchange, lease, rental or other transaction by the City.
d. Records that would interfere with a City investigation if disclosed.
e. Records that would jeopardize the security of governmental property, programs or record keeping systems.
f. Records relating to an ongoing or planned audit.
g. Records relating to litigation or an adversarial action.
h. Records relating to the work of a City Attorney, or communications with a City Attorney.
i. Drafts of any document.
j. Records relating to investigations and analysis of loss occurrences that may be covered by a Risk Management Fund.
k. Records supplied by another governmental agency on a confidential basis.
l. Records that would reveal negotiations regarding assistance or incentives encouraging a person to expand or relocate a business in Utah.
m. Records that would reveal information relating to proprietary rights owned by the City, including patents, copyrights and trade secrets.
n. Records describing an individual's finances.
o. Records containing data on individuals, the disclosure of which would constitute an unwarranted invasion of personal privacy.
5. Requests To Disclose Confidential Or Protected Records: Any person who receives a written request to disclose a record that may be subject to protection under the Government Records Act shall:
a. Immediately direct the written request to the City Attorney's Office. The City Attorney's Office will review the record and the request, and advise regarding what may be disclosed.
b. If the request is denied, it may be appealed as provided by law.
6. Employee's Obligations: City employees shall not knowingly refuse to permit access to records which are accessible under the Act, shall not knowingly permit improper access to records, and shall not knowingly and without authority dispose of, alter or remove records or permit others to do so. Reference section 2.64.110 of the City Code.
C. Records Retention Requirements: Each procurement unit shall maintain procurement related files in the manner that it shall determine, and that complies with State and local records retention requirements. (2019 Compilation)
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