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As used in this Chapter 21, the following words shall have the following respective meanings:
"Bid" shall mean a bid, quotation, or other offer, other than a Proposal, from a person or entity to sell a Commodity or Service to the City at a specified price.
"Bidder" shall mean any person or entity which submits a Bid.
"City" shall mean the City and County of San Francisco.
"Code" or "this Code" shall mean the most current version of the San Francisco Charter and the San Francisco Municipal Code.
"Commodity" shall mean products, including materials, equipment and supplies, purchased by the City. "Commodity" shall specifically exclude legal and litigation related contracts or contracts entered into pursuant to settlement of legal proceedings, and employee benefits, including, without limitation, health plans, retirement or deferred compensation benefits, insurance and flexible accounts, provided by or through the City's Human Resources Department or the Retirement Board.
"Contractor" shall mean any corporation, partnership, individual, sole proprietorship, joint venture or other legal entity which enters into a contract to sell Commodities or Services to the City.
"Contracting Officer" shall mean the City employee who is authorized to execute a contract, which may be either the Department head or a person designated in writing by the Department head, board or commission as having the authority to sign contracts for the Department. A designation of authority to sign contracts on behalf of a Department may specify authority to sign a single contract, specified classes of contracts, or all contracts entered into by a Department.
"Electronic" shall mean electrical, digital, magnetic, optical, electromagnetic or other similar technology for conveying documents or authorizations, excluding facsimile.
"General Services" shall mean those services that are not Professional Services. General Services include, but are not limited to, janitorial, security guard, pest control, parking lot management, and landscaping services.
“Government Entity” has the meaning set forth in Administrative Code Section 1.25(d), as may be amended from time to time.
“Minimum Competitive Amount” shall mean (i) for the procurement of Commodities and Professional Services, the “Minimum Competitive Amount” as defined in Section 6.40(a) of the Administrative Code, which shall be $200,000 and (ii) for the procurement of General Services, an amount equivalent to the “Threshold Amount” as defined in Section 6.1 of the Administrative Code which shall be $1,000,000, provided that for every five-year period starting with January 1, 2020-December 31, 2024, the Controller shall recalculate the Minimum Competitive Amount (and the Threshold Amount from which the Minimum Competitive Amount for General Services is calculated) to reflect any proportional increase in the Urban Regional Consumer Price Index from January 1, 2020, rounded to the nearest $10,000. The Minimum Competitive Amount as recalculated by the Controller shall take effect by operation of law on January 1 of the first year of the next five-year period (thus, for example, on January 1, 2025 following the five-year period ending December 31, 2024).
"Offer" shall mean a Bid or Proposal submitted to the City in response to an invitation for Bids or a Request for Proposals. "Offer" may include a response to a request for qualifications if no further ranking prior to Contractor selection is contemplated by the procurement process.
"Offeror" shall mean a person or entity that submits an Offer to the City to provide Commodities or Services.
"Professional Services" shall mean those services which require extended analysis, the exercise of discretion and independent judgment in their performance, and/or the application of an advanced, specialized type of knowledge, expertise, or training customarily acquired either by a prolonged course of study or equivalent experience in the field. Professional service providers include, but are not limited to, licensed professionals such as architects, engineers, and accountants, and non-licensed professionals such as software developers and financial consultants.
"Proposal" shall mean a response to a request for Proposals issued by the City for Commodities or Services, or a response to a request for qualifications if no further ranking prior to Contractor selection is contemplated by the procurement process.
"Proposer" shall mean a person or entity that submits a Proposal in response to a request for Proposals issued by the City.
"Purchase Order" shall mean an authorization document designated as such by the Purchaser for the procurement of Commodities or Services, whether issued in a paper or electronic format, including blanket purchase orders for purchases involving multiple payments.
"Purchaser" shall mean the Purchaser of Commodities or Services of the City and County of San Francisco, or his or her designee(s).
"Quotation" shall mean an Offer to supply Commodities or Services to the City for a specified price (and possibly subject to other terms and conditions) which is acquired without the use of advertising to solicit Bids.
"Services" shall mean Professional Services and General Services. "Services" shall specifically exclude grants to a nonprofit entity to provide services to the community, which may include incidental purchases of commodities; legal and litigation related services or contracts entered into pursuant to settlement of legal proceedings; and services related to employee benefits, including, without limitation, health plans, retirement or deferred compensation benefits, insurance and flexible accounts, provided by or through the San Francisco Health Service System, the Retirement Board or the Retiree Health Care Trust Fund.
"Solicitation" shall mean an invitation for Bids, request for Quotations, request for qualifications, or request for Proposals issued by the City for the purpose of soliciting Bids, Quotations, or Proposals to perform a City contract.
“Technology Marketplace” shall mean the citywide contracts and lists of prequalified contractors, including any successor contracts and prequalified lists, administered by the Purchaser for the procurement of technology Commodities and Services, including but not limited to hardware, software, peripherals, technology maintenance, training, and support.
(Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 9-11, File No. 101007, App. 1/7/2011; Ord. 3-12, File No. 111246, App. 1/12/2012, Eff. 2/11/2012; Ord. 46-15
, File No. 131122, App. 4/17/2015, Eff. 5/17/2015; Ord. 108-15
, File No. 150175, App. 7/2/2015, Eff. 8/1/2015; Ord. 203-21, File No. 210835, App. 11/12/2021, Eff. 12/13/2021, Oper. 7/1/2022; Ord. 167-23, File No. 230649, App. 7/28/2023, Eff. 8/28/2023, Oper. 7/1/2023; Ord. 107-24, File No. 240301, App. 5/24/2024, Eff. 6/24/2024)
(a) Approval of Purchases. The Purchaser shall purchase all Commodities or Services required by City departments and offices of the City, except as otherwise provided in this Code. The Purchaser shall, by regulation, designate and authorize appropriate department personnel to exercise the Purchaser's approval authority for contracts approved as provided in this section.
(b) Purchases to be Made on Requisitions; Exception for Large Quantities or Common Use. All purchases made by the Purchaser shall be made on the basis of requisitions of ordering departments; except that Commodities and Services in common use by more than one department, or used in large quantities by a department may be purchased on the basis of the total of such requisitions or estimates previously filed from the various departments. The Purchaser is authorized to enter into City-wide requirements contracts for the purchase of indefinite quantities of Commodities or Services for the period of time and at prices set forth in the contract, under which any department may elect to order such Commodities or Services.
(c) Standardization of Purchases. The Purchaser may establish specifications, terms and conditions, and product tests to cover all Commodities and Services purchases of (i) large quantities, or (ii) recurring purchases, or (iii) Commodities or Services in common use by more than one department. The Purchaser may, as far as is practicable, standardize Commodities according to the use to which they are to be put, when two or more types, brands or kinds are specified or requested by individual departments.
(d) Purchases of Commodities. Purchases of Commodities shall be made in accordance with selection criteria or specifications furnished by the department requiring such Commodities whenever the need for particular selection criteria or specifications is peculiar to such department. For patented or proprietary Commodities sold by brand name, the Purchaser may require each department requisitioning same by such brand name to furnish specifications of the Commodity requisitioned, and may advertise for Offers on the basis of such specifications, under conditions permitting manufacturers of, or dealers in other products made and sold for the same purpose, to make Offers on such specifications or on the specifications of their own product. If the Purchaser recommends the acceptance of the lowest or best Offer, stating the Purchaser's reasons in writing therefor, and if the department head concerned recommends the acceptance of any other Offer on such proprietary Commodities, stating the department's reasons in writing therefor, the award shall be determined by the Controller.
(e) Procurement of Vehicles for Use of City Officials And Employees.
(1) When purchasing, leasing, or otherwise procuring passenger vehicles, including passenger cars, passenger vans, sport utility vehicles, cargo vans and pickup trucks up to and including one ton in payload, departments shall request vehicles of the same functional type and passenger capacity approved by the Board of Supervisors in the budget.
(2) In evaluating vehicle purchase requests, the Purchaser is authorized to consider the price, durability, fuel efficiency, resale value, expected repair and maintenance cost, and all other factors, including options and accessories that may among other considerations enhance the safety and resale value of the vehicle and that bear directly on the total cost to the City of the vehicle in relationship to the service it will render.
(3) The Purchaser may develop sets of general specifications, including optional equipment, for purchases of compact, mid-size and full-size passenger cars or may specify vehicles by proprietary brand name when purchasing additional vehicles for an existing fleet. The specifications shall note the major items of standard equipment of such vehicles and may include, in the Purchaser's discretion, optional equipment which the Purchaser has determined should be ordered on City passenger cars. When procuring passenger cars, the purchaser shall include this group of options, to the extent possible, even if the department which will use the car does not request them.
If a department requests optional equipment that is not part of the Purchaser's group of options and which would cost in excess of a dollar limit to be set by the Purchaser in regulations, the department must either:
(A) Itemize the equipment in the description of the vehicle itself, when the vehicle purchase is reviewed as part of the City's annual budget process, and obtain the Board's approval of the vehicle as equipped; or
(B) Obtain the approval of the Mayor's Budget Office before submitting a requisition to the Purchaser.
(4) If a department desires to procure a passenger vehicle that is upgraded in terms of the functional type or capacity from what was approved in the budget, then the department must first obtain the approval of the Mayor's Budget Office before submitting a requisition to the Purchaser.
(5) This section shall not apply to the procurement of mass transit vehicles over one ton or other specialized vehicles as defined in the Purchaser's regulations.
(f) Payment procedures. The Purchaser and Controller shall establish procedures to approve all bills and vouchers for Commodities and Services. All approvals required pursuant to such procedures must be obtained before the Controller shall draw and approve warrants therefor.
(g) Storerooms and Garages. The Purchaser shall have charge of a garage and shop for the repair of City equipment, and of the Purchaser's storerooms and warehouses for the City and the personnel assigned thereto.
(h) Leasing Of Equipment From Non-profit Corporations Without Competitive Bidding. Notwithstanding any other provisions of this Code, the Purchaser is authorized to award a Contract, without issuing Solicitations, to a non-profit corporation for the leasing of equipment; provided, that the non-profit corporation has been formed for the purpose of aiding and assisting the City, and the formation of the non-profit corporation has been approved by resolution of the Board of Supervisors.
(i) Disposal of Surplus. Commodities which have been determined to be surplus to City needs shall be disposed of in a manner which will best serve the interests of the City. For the purposes of this section, the interests of the City shall include the City's ability to maximize the City's economic return on surplus Commodities, the City's interest in maximizing the re-use of surplus Commodities by public entities, non-profit organizations and schools, and the City's interest in avoiding any unnecessary additions to the waste stream by maximizing the re-use and recycling of surplus Commodities. Disposal of surplus Commodities may include sales to, exchanges with, or donation to public entities, non-profit organizations, and private organizations for a public purpose, or donation to private entities for recycling of parts or materials. The Purchaser may maintain lists of all known local resources for transfer of surplus Commodities to public entities, non-profit organizations, and private organizations for a public purpose, and for the recycling of parts. The Purchaser shall have the authority to require the transfer of surplus property in any department to the Purchaser's stores or to other departments.
(1) The Purchaser shall have the authority to exchange used Commodities to the advantage of the City, to advertise for Bids, and to sell Commodities belonging to the City on the recommendation of a department head that such Commodities are surplus to the needs of the department.
(2) The Purchaser shall have the authority to donate obsolete, used or surplus Commodities if a department head states in writing that such Commodities are surplus to the needs of the department. The Purchaser shall document in writing each donation.
(A) Donations of Commodities meeting the criteria listed above may be offered to public entities, non-profit organizations, or private organizations serving the public. The order of priority for donations shall be to entities or organizations:
(i) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in San Francisco;
(ii) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in the Bay Area;
(iii) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in the United States;
(iv) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in foreign countries;
(v) Engaged in recycling the surplus Commodities, including parts or materials.
(B) Surplus medical supplies that are no longer in compliance with Federal Drug Administration regulations may be offered to entities and organizations which are engaged in distributing or administering the surplus medical supplies at no cost or for a nominal fee to low-income individuals or families in foreign countries.
(C) To the extent that more than one organization meets the criteria in a category listed above, surplus Commodities shall be made available on a rotational basis to entities and organizations in the same category. If there is a need to dispose of surplus Commodities and no entity or organization meeting the criteria noted in Section 21.03(i)(2)(A) can be located to receive a donation, the Purchaser is authorized to utilize other means that may be available to dispose of such Commodities in a manner that will best serve the interests of the City.
(j) Information Technology Purchases. All contracts for the acquisition of information technology Commodities or Services shall be made by the Purchaser.
(k) Ancillary Installation Services for Commodities. The Purchaser is authorized to purchase installation Services ancillary to the purchase of Commodities, including installation Services that must be performed by a licensed contractor and may otherwise be procured pursuant to Chapter 6 of the Administrative Code.
(l) Rules And Regulations. The Purchaser, with the approval of the Director of Administrative Services and the Controller, shall establish rules and regulations for the purpose of implementing the provisions of this Chapter 21.
Editor’s Note:
Former subsection 21.03(l) (“Adjusting Scope and Compensation”) expired on 7/1/2023 per the terms of its sunset clause.
(a) Department heads may purchase Commodities or Services directly and without the approval of purchasing, as provided in the Charter or Municipal Code, or in the following circumstances:
(1) Departments may directly enter into contracts when such purchase is recommended by a department head and is approved by the Purchaser. The Purchaser’s approval of direct department purchases may be for individual contracts or for classes of contracts anticipated to be required by the department.
(2) Departments may directly enter into contracts with Government Entities for the purpose of fulfilling their governmental functions, which may include the provision or exchange of Commodities or Services.
(3) Departments may directly enter into contracts for the investment of trust moneys and agreements relating to the management of trust assets.
(4) Departments may directly enter into contracts to purchase works of art or artifacts for museums or to display in public areas; and may directly enter into contracts for specialized art restoration, insuring, transport, storage, curation, and conservation services.
(5) The Risk Manager may directly purchase insurance and expert services.
(6) The General Manager of the Public Utilities Commission may directly purchase water, power, or natural gas, the conveyance or transmission of same, or ancillary services such as spinning reserve, voltage control, or load scheduling, as required for assuring reliable services in accordance with good utility practice, to or on behalf of the San Francisco Public Utilities Commission.
(7) Departments may contract directly for the provision of services related to travel required for official City business, subject to compliance with rules and regulations established by the approving department and the Controller for reimbursement of such expenses.
(8) The Director of Health may contract directly for purchases under the authority of Chapter 21A of this Code.
(b) The Purchaser shall determine the scope of direct purchasing authority granted under subsection (a) in the event of ambiguity.
(c) Nothing in this Section 21.04 is intended to affect the authorities granted to departments elsewhere in this Code or in the Charter.
(a) Estimates of Requirements. All departments shall file estimates of required Commodities and services at such time and in such manner as shall be determined by the Purchaser.
(b) Procurement of Professional Services. Departments shall be responsible for defining the scope of a project for contracting purposes, establishing fair evaluation criteria and selection processes for Solicitations, and for the negotiation and award of contracts for Professional Services, with the assistance of the Purchaser and the City Attorney, provided, however, that:
(1) If a proposed contract for Professional Services includes the procurement of Commodities, then the department shall seek prior Purchasing approval of the Solicitation document; and
(2) The Director of Purchasing shall be the Contracting Officer for Professional Service contracts unless a Contracting Officer other than the Purchaser is authorized to enter into the contract directly.
(c) Cancellation of Purchase Contracts. The Contracting Officer shall be the only person authorized to terminate a contract for cause or convenience.
(d) Inspection of Purchases. Departments shall make adequate inspection of all purchases.
(Added by Ord. 156-99, File No. 990743, App. 6/2/99)
(a) Electronic Notification. For purposes of this Chapter, if a requirement exists that a City official notify another City official of an event, or send a report to another City official, the official with that responsibility may use Electronic notification, rather than a physical document, to effect the notice.
(b) Electronic Filing. For purposes of this Charter, if a requirement exists that a City official keep a copy of a form or a document, the official may keep an Electronic record rather than a physical document, provided that the electronic record contains at least as much information as the physical form or document would have contained. Any departmental record retention policies applicable to physical records also apply to the corresponding Electronic records.
(c) Other Electronic Transactions. Where the Purchaser, in consultation with the Department of Telecommunications and Information Services and COIT, determines that the technology exists to provide assurance of authentication, message integrity, and nonrepudiation through secure and reliable Electronic transactions, the Purchaser may establish regulations for the use of Electronic transactions under this Chapter, including authorization, approval or execution of documents, placing orders with Contractors, receiving Offers, making determinations, or providing notice. Such regulations shall include appropriate security to prevent unauthorized access to the Solicitation, Offer, approval and award processes, and accurate retrieval and/or conversion of Electronic forms of such information into a medium that permits inspection and copying.
(Added by Ord. 156-99, File No. 990743, App. 6/2/99)
(a) For purposes of this Section 21.07, “Department,” “Surveillance Technology,” and “Surveillance Technology Policy” have the meanings set forth in Section 19B.1 of the Administrative Code.
(b) Notwithstanding any authority set forth in this Chapter 21, neither the Purchaser nor any Contracting Officer may acquire any Surveillance Technology unless the Board of Supervisors has appropriated funds for such acquisition in accordance with the requirements of Chapter 19B of the Administrative Code.
Notices inviting Offers under the provisions of Sections 21.3 and 21.4 of this Chapter must be published in accordance with the Charter and Municipal Code of San Francisco. At least five calendar days must intervene between the date of last publication and the time for filing such sealed Offers. The published notice must contain a general description of the Commodity or Service, the due date for Offers, and a City contact phone number.
(Added by Ord. 156-99, File No. 990743, App. 6/2/99)
(a) Invitation for Bids. Except as otherwise authorized in this Code, for any Commodity or General Services purchase estimated to cost in excess of the Minimum Competitive Amount, an invitation for Bids shall be issued to solicit Bids and shall include a purchase description and all contractual terms and conditions applicable to the procurement, including a reservation of the City's right to reject all Offers.
(b) Bid Opening. Bids shall be opened publicly by the Contracting Officer at the time and place designated in the Invitation for Bids in the presence of all Bidders who attend. Relevant information as the Purchaser may specify by regulation shall be recorded. Except for materials protected from disclosure pursuant to Administrative Code Section 67.24, the record and each Bid shall be open to public inspection following Bid opening.
(c) Bid Evaluation. Bids shall be evaluated based on the requirements and specifications set forth in the Invitation for Bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the Bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, conversion costs and total or life cycle costs.
(d) Correction, Withdrawal, or Rejection of Bids; Cancellation of Awards. Correction or withdrawal of inadvertently erroneous Bids before or after award, or cancellation of awards or contracts based on such Bid mistakes, shall be permitted in accordance with regulations promulgated by the Purchaser. After Bid opening, no changes in Bid prices or other provisions of Bids prejudicial to the interest of the City or fair competition shall be permitted. Except as otherwise provided by regulation, all decisions to permit the correction or withdrawal of Bids, or to cancel awards or Contracts based on Bid mistakes, shall be supported by a written determination made by the Purchaser. The Purchaser may reject all Bids at any time prior to award.
(e) Award. Except for a showing of good cause, a Contract shall be awarded not less than five (5)-working days after Bid opening by written notice to the lowest responsible and responsive Bidder whose Bid meets the requirements and criteria set forth in the Invitation for Bids. In the event that all Bids exceed available funds and the lowest responsible and responsive Bidder does not exceed such funds by more than ten percent (10%), the Purchaser is authorized in situations where time and economic considerations preclude resolicitation of work of a reduced scope to negotiate an adjustment of the Bid price, including changes in the Bid requirements, with the low responsive and responsible Bidder, in order to bring the Bid within the amount of available funds.
(f) Awards in the Public Interest. If the Purchaser finds that the public interest would be best served by accepting other than the lowest total or unit price the Purchaser is authorized to accept the Bid(s) that in the Purchaser's opinion will best serve the public interest, to make the awards and to enter into the necessary contracts. Prior to making an award to a Bidder other than the lowest Bidder(s), the Purchaser shall submit a written statement of the basis for the finding to the Director of Administrative Services.
(g) Additional Purchases. Where the quantity of Commodities or General Services to be provided under a contract is fixed, the Contracting Officer may, within one year after award and subject to the Contractor's consent, purchase additional quantities of the specific Commodities or General Services for which award was made at the award price or a lower price, in accordance with the Purchaser's regulations.
(h) Multi-step Bidding. A Contracting Officer may prequalify Bidders prior to issuing an Invitation for Bids based on prequalification criteria set forth in a Solicitation.
(i) Bid Protests. The procedure for resolving Bid protests shall be established by regulations adopted by the Purchaser.
(Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 9-11, File No. 101007, App. 1/7/2011)
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