Carmel-by-the-Sea Municipal Code Art. V Federal Requirements

Whenever Federal award funds are used the following criteria must be followed in addition to this chapter:

A. Requirements. The Uniform Guidance requirements for sub-award and sub-recipient is based on the pass-through agency. If the pass-through agency is subject to the Uniform Guidance (i.e., if the source of funds are Federal and the pass-through agency is subject to Uniform Guidance), then the sub-award or sub-recipient is also subject to the Uniform Guidance. The requirement for a sub-award, no matter when the sub-award was made, flows from the requirements of the original Federal award from the Federal awarding agency.

B. Micro Purchases. The maximum aggregated amount for micro purchases is $3,500. The maximum amount for construction projects is $2,000 and is subject to the Davis-Bacon Act (Prevailing Wages). Micro purchases are exempt from the City's informal and formal bidding processes, so there are no requirements for multiple quotations. To the extent practical the City must distribute micro purchases equitably among qualified suppliers.

C. Small Purchases. Small purchases utilize simple and informal procurement methods. The acquisition threshold is currently $150,000. The Uniform Guidance states quotes for small purchases must be obtained from an "adequate" number of qualified sources. There is no specific number of sources required by the Uniform Guidance, thus one quote can be sufficient as long as there is proper documentation. Quotes can be obtained from suppliers or from public websites (i.e., City may use internet searches as documentation).

D. Sealed Bids. Sealed bids are required for contracts in excess of $150,000 and is the preferred method for construction contracts. Sealed bids are also appropriate for fixed price contracts where bidders are provided complete and adequate specifications. Additionally, sealed bids must come from two or more qualified bidders and must be publicly advertised and solicited from an adequate number of suppliers. The contract is awarded to the lowest responsive and responsible bidder.

E. Competitive Proposals. Competitive proposals are required for contracts in excess of $150,000 and is the preferred method for architectural, engineering and professional services. Requests for proposals must be publicized and proposals solicited from an adequate number of qualified sources. Competitive proposals are awarded to the most advantageous bid which considers both price and other factors. The City does not have to select the lowest bid.

F. Sole Source. Vendor must meet at least one of the following criteria:

1. The vendor offers a unique supply or service that can only be fulfilled by one vendor or only one known source for the supply/service exists;

2. There is a public emergency;

3. After soliciting a number of sources, the competition is deemed inadequate; and

4. Written request has been made and approved by the federal agency responsible for the grant.

5. The City must have written pre-approval from the Federal awarding agency. Additionally, the City must have proper documentation as to why a sole source vendor was required in these circumstances. The sole source must be properly documented and the City must maintain the documentation.

(Ord. 2023-03 § 2 (Exh. A), 2023)