Chowchilla Municipal Code Art. III Source Selection and Contract Formation

A. Conditions For Use. All contracts of the city for the purchase of supplies, equipment, services and construction of an aggregate annual value exceeding an amount set by city council resolution for formal bids shall be awarded by compliance with the competitive sealed bidding procedures contained in this section, except as otherwise provided in Sections 4.04.080 (Competitive sealed proposals), 4.04.090 (Contracting for designated professional services), 4.04.100 (Informal quotes and small purchases), 4.04.105 (City council authority to waive notice, advertisement, and competitive bidding), 4.04.110 (Sole source procurement), 4.04.120 (Emergency procurements), 4.04.130 (Cooperative piggyback purchases), 4.04.140 (Standardization) and Article V (Procurement of Public Projects, Architect-Engineer and Land Surveying Services.)

B. Evasion of Provisions of Chapter is Prohibited. Orders for supplies, equipment, services or construction shall not be split into smaller orders or projects, artificially aggregated into larger orders or projects, or willfully mischaracterized or misclassified for purposes of evading the provisions of this chapter.

C. Invitation for Bids. An invitation for bids shall be issued and shall include adequate specifications and all contractual terms and conditions applicable to the procurement. Nothing in this chapter shall prohibit the use of electronic invitations for bids.

D. Public Notice. The city clerk shall (1) publish or post as required by statute or charter (G.C. 36933). The city clerk's office is responsible for posting all legal notices at public places or seeing that such material is delivered to the proper newspaper for publication within the time allowed. (2) Other notices may be assigned to departments as deemed necessary. Adequate public notice of the invitation for bids shall be given a reasonable time before the date set forth therein for the opening of bids. Such notice may include publication in electronic form including, but not limited to, publication on the World Wide Web or the Internet, or publication in a newspaper of general circulation. Publication shall be made not less than ten working days before the date of the bid opening. The public notice shall state the place, date and time of bid opening.

E. Bid Opening.

1. Public Opening. Bids shall be opened publicly by the office of the city clerk in the presence of one or more witnesses at the time and place designated in the invitation for bids.

2. Timely Submission. No bid shall be considered which has not been received at the place and by the time stated in the invitation for bids.

3. Electronic Bids. Unless specifically authorized in the invitation for bids, bids that are transmitted electronically will not be considered.

4. Recordation of Bids. The amount of each bid and the name of each bidder shall be recorded. The record and each bid will be open to public inspection in accordance with Section 4.04.030 (Public access to procurement information).

5. No Bids Received. If no bids are received, procurement may proceed without further compliance with competitive bidding requirements.

F. Bid Acceptance and Bid Evaluation.

1. Unconditional Acceptance. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this chapter.

2. Evaluation Criteria. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, life-cycle cost analysis and suitability for a particular purpose.

a. Objective Measurement. Criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs.

b. Disclosure of Criteria. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the invitation for bids.

G. Award. All contracts of the city for the purchase of supplies, equipment, services and construction of a value exceeding the amount set by city council resolution shall be awarded to the responsible bidder whose bid is lowest in price and conforms to all material terms, conditions and criteria set forth in the invitation for bid. If prices quoted or received in sealed bids are equal, either bid may be selected. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

H. Correction or Withdrawal of Bids—Cancellation of Awards. Correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, may be permitted at the sole discretion of the purchasing agent when its deemed appropriate.

1. Before Bid Opening. Before bid opening, bids may be modified or withdrawn by written notice received in the office designated in the invitation to bids prior to the time set for bid opening. Nothing in this section shall prohibit electronic notice as long as the city can verify to its satisfaction the identity of the sender of the notice.

2. After Bid Opening. After bid opening, corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake of a nonjudgmental character was made, the nature of the mistake, and the bid price actually intended.

3. No Changes Permitted After Bid Opening. 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. In lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if:

a. The mistake is clearly evident on the face of the bid document but the intended correct bid is not similarly evident; or

b. The bidder submits evidence that clearly and convincingly demonstrates that a mistake was made.

4. Written Determination is Required. 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 purchasing agent.

I. Multi-Step Sealed Bidding. When it is considered impractical to prepare initially a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been determined to be technically acceptable under the criteria set forth in the first solicitation.

(Ord. 414-00 § 1 (part), 2000)

(Ord. No. 514-23, § 2, 7-25-2023)

A. Conditions for Use. When the purchasing agent determines that the use of competitive sealed bidding is either not practicable or not advantageous to the city, a contract may be entered into by use of the competitive sealed proposals method.

B. Request for Proposals. Proposals shall be solicited through a request for proposals.

C. Public Notice. Adequate public notice of the request for proposals shall be given a reasonable time before the date set forth therein for receipt of the proposals. Such notice may include publication in electronic form including, but not limited to, publication on the World Wide Web or the Internet, or publication in a newspaper of general circulation. Publication shall be made not less than ten calendar days before the date set forth therein for receipt of the proposals. The public notice shall state the place, date and time for receipt of the proposals.

D. Receipt of Proposals. No proposals shall be handled so as to permit disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the process of negotiation. A register of proposals shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. The register of proposals shall be open for public inspection only after contract award.

E. Evaluation Factors. The request for proposals shall state the relative importance of price and other evaluation factors.

F. Discussion with Responsible Offerors and Revisions to Proposals. After submission of proposals and prior to award, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award. Discussions shall be for the purpose of clarification to assure full understanding of, and conformance to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion.

G. Award. Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the city, taking into consideration price and the evaluation factors set forth in the request for proposals. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

H. Cost or Pricing Data. When only one proposal is received, and the city determines that analysis of the proposed price is necessary to determine if it is reasonable and fair, a contractor shall submit cost or pricing data upon request and shall certify that to the best of its knowledge and belief the cost or pricing data submitted was accurate, complete and current as of the date set forth for receipt of proposals.

(Ord. 414-00 § 1 (part), 2000)

A. Procurement of Certain Professional Services. The services of certain professions that involve extended analysis, the exercise of discretion and independent judgment in their performance, and an advanced, specialized type of knowledge, expertise, or training customarily acquired either by a prolonged course of study or equivalent experience in the field, shall be procured in accordance with the selection procedures specified in this section. No contract for the services of legal counsel may be awarded without the approval of city council. Procedures for the selection of architect, engineer and land surveying services are found in Article V (Procurement of Construction, Architect-Engineer and Land Surveying Services) of this chapter.

B. Selection Procedure.

1. Conditions for Use. Services provided under Section 4.04.110 (Sole source procurement) or Section 4.04.120 (Emergency procurements), are exempt from the requirements of this section.

2. Statement of Qualifications. Persons engaged in providing professional services as described in subsection A of this section, may submit statements of qualifications and expressions of interest in providing such professional services.

3. Public Announcement and Form of Request for Proposals. The city administrator, or designee, through a request for proposals, shall give adequate notice of the need for such services.

4. Discussions. The city administrator, or designee, may conduct discussions with any offeror who has submitted a proposal to determine such offeror's qualifications for further consideration. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion.

5. Award. Award shall be made to the offeror determined in writing to be best qualified based on the evaluation factors set forth in the request for proposals, and negotiation of compensation determined to be fair and reasonable. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

(Ord. 414-00 § 1 (part), 2000)

A. General. Any contract not exceeding the amount fixed by city council resolution for solicitation of formal bids, may be made in accordance with the procedures authorized in this section. Contract requirements shall not be artificially divided so as to constitute a small purchase under this section.

B. Informal Quotes. Insofar as it is practical, no less than three businesses shall be solicited to submit quotations. The names of the businesses submitting quotations, and the date and amount of each quotation, shall be recorded and maintained as a public record.

1. Award. Award shall be made to the lowest responsive and responsible bidder. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

C. Small Purchases. The purchasing agent shall adopt operational procedures for making small purchases not exceeding the amount fixed as set forth in the administrative procedure orders for purchasing for solicitation of informal quotes. Such operational procedures shall provide for maintaining adequate records of all small purchases. Small purchases may be made without competition. Small purchases may be made by claim, purchase order, blanket order, contract order, procurement card or any other method determined by the purchasing agent, or designee, to be reasonable and cost effective methods for making such purchases.

1. Award. The requesting department director or their designee may approve small purchases.

(Ord. 414-00 § 1 (part), 2000)

Upon approval of the city council, the purchasing agent shall have the power, without notice, advertisement, or competitive bidding, to purchase for and on behalf of the city any supplies, materials, equipment, or contractual service. The city council does not have the power to waive notice, advertisement, or competitive bidding for procurement of public projects, architect-engineer and land surveying services.

(Ord. No. 514-23, § 1, 7-25-2023)

A. Negotiations. A contract may be awarded without competition when the purchasing agent determines in writing, after conducting a good faith review of available sources, that there is only one source for the required supply, service, or construction item. The purchasing agent, or designee or the requesting department director, or designee, shall conduct negotiations, as appropriate, as to price, delivery and terms.

B. Cost or Pricing Data. When the city determines that analysis of the proposed price is necessary to determine if it is reasonable and fair, a contractor shall submit cost or pricing data upon request and shall certify that to the best of it's knowledge and belief the cost or pricing data submitted was accurate, complete and current as of a mutually determined date.

C. Records. A record of sole source procurements shall be maintained as a public record for purchases of item(s) or service(s) exceeding the amount fixed by the city administrator for solicitation of informal quotes.

1. Award. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

(Ord. 414-00 § 1 (part), 2000)

A. Authorization for Emergency Procurements. Notwithstanding any other provisions of this chapter, the purchasing agent may make or authorize others to make emergency procurements of supplies, equipment, services, or construction items when there exists a threat to public health, welfare, or safety; provided that such emergency procurements shall be made with such competition as is practicable under the circumstances.

1. Ratification. Emergency procurements shall be ratified as soon as practicable. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

(Ord. 414-00 § 1 (part), 2000)

A. Cooperative Agreements. The purchasing agent may arrange for the city to enter an agreement with one or more local, county, state, federal or other public entity, school district, League of California Cities, California Communities Program, or other non-profit association or group consisting of governmental entities, in order to cooperatively purchase supplies, equipment, services, including but not limited to materials, vehicles and apparatus, in cooperation, provided that:

1. The purchase contract with the vendor(s) is the result of competitive bidding or negotiation and is made in compliance with the competitive bid or proposal requirements of any participating entity or organization; and

2. The purchase conforms to the city's specifications for the item or service; and

3. The estimated price of the purchase is lower than that estimated for the purchase if made directly by the city pursuant to this chapter.

B. Piggyback Purchases. The purchasing agent may arrange for the city to enter purchase contracts with a vendor(s) for the purchase of supplies, equipment, services, including but not limited to materials, vehicles and apparatus, the pricing and terms of which have been previously established by another local, county, state, federal or other public entity, school district, League of California Cities, California Communities Program, or other non-profit association or group consisting of governmental entities, provided that:

1. The purchase contract with the vendor(s) is the result of competitive bidding or negotiation and is made in compliance with the competitive bid or proposal requirements of any participating entity or organization; and

2. The purchase is made within one year of the competitive bid or negotiation.

3. The purchase conforms to the city's specifications for the item or service; and

4. The estimated price of the purchase is lower than that estimated for the purchase if made directly by the city pursuant to this chapter.

C. Award. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

(Ord. 414-00 § 1 (part), 2000)

A. Uniform Adoption of Standards. When supplies, equipment or services have been uniformly adopted or otherwise standardized, or when an item is designated to match others in use by the city, the purchase is not subject to this chapter.

B. Award. Contracts let pursuant to this subsection shall be awarded and executed in accordance with Section 4.04.160 (Award of contract) of this chapter.

(Ord. 414-00 § 1 (part), 2000)

An invitation for bids, a request for proposals, or other solicitation may be cancelled, or any or all bids or proposals may be rejected in whole or in part as may be specified in the solicitation, when it is for good cause and in the best interests of the city.

(Ord. 414-00 § 1 (part), 2000)

A. Award. All contracts resulting from Sections 4.04.070 (Competitive sealed bidding), 4.04.080 (Competitive sealed proposals), 4.04.090 (Contracting for designed professional services), 4.04.100 (Informal quotes and small purchases), 4.04.105 (City council authority to waive notice, advertisement, and competitive bidding), 4.04.110 (Sole source procurement), 4.04.130 (Cooperative and piggyback purchases), 4.04.140 (Standardization) and Article V (Procurement of Public Projects, Architect-Engineer and Land Surveying Services) shall be awarded as follows:

1. Award by City Council. Purchases exceeding the amount fixed by city administrator through council resolution for solicitation of formal bids shall be awarded by the city council after receiving the recommendation of the purchasing agent, or designee, as forwarded through the city administrator.

2. Award by City Administrator. Purchases of less than the amount that requires award by city council may be awarded by the city administrator after receiving the recommendation of the purchasing agent or requesting department director. The city administrator may execute contracts and other necessary related documents on behalf of the city for purchases within its awarding authority.

3. Authorization to Negotiate Low Bid to Within Available Funds. In the event the lowest responsive and responsible bid for a construction project exceeds available funds as certified by the finance director, and such bid does not exceed such funds by more than five percent, the purchasing agent is authorized, when time or economic considerations preclude re-solicitation of work of a reduced scope, to negotiate an adjustment of the bid price with the lowest responsive and responsible bidder, in order to bring the bid within the amount of available funds. Any such negotiated adjustment shall be based only upon eliminating independent deductive items specified in the invitation for bids.

4. Local Preference. A local preference credit of five percent, but not cumulatively greater than five thousand dollars, shall be granted to city of Chowchilla businesses when evaluating bids for supplies, equipment, materials, and personal services, with the following exceptions:

a. Procurements made with federal or state grant funds;

b. Procurements of construction or public works projects; or

c. Procurements made in cooperation with other public entities.

Local Vendor Preference Requirements:

a. Establish place of business within city limits for six months prior to bid; and

b. Must acquire/possess valid resale license from board of equalization showing evidence of business address within city limits; and

c. Must acquire/possess valid business license from the city of Chowchilla; and

d. All tax related to business or personal property must be paid current.

5. Preference for Recycled Products. The city will consider preferences in determining the lowest price(s) for products containing recycled materials, as follows:

a. The following procurements may be excepted:

i. Procurements made with federal or state grant funds;

ii. Procurements of construction or public works projects; or

iii. Procurements made in cooperation with other public entities.

b. The following preferences are not cumulative; only one preference may be applied to a single product.

i. Total Aggregate Purchase of Ten Thousand Dollars or Less. The city will consider a five percent preference for products containing fifty percent or more post-consumer recycled content.

ii. Total Aggregate Purchase of Five Thousand Dollars or Less. The city will consider a two percent preference for products containing twenty-five percent or more post-consumer recycled content.

iii. Total Aggregate Purchase of One Thousand Dollars or Less. The city will consider a one percent preference for products containing ten percent or more pre- or post-consumer recycled content.

B. Ratification. Contract entered because of an emergency under Section 4.04.120 (Emergency procurements) shall be ratified by the appropriate awarding authority.

(Ord. 414-00 § 1 (part), 2000)

(Ord. No. 499-19, § 1, 9-10-2019; Ord. No. 514-23, § 3, 7-25-2023)

A. Determination of Non-Responsibility. If a bidder or offeror who otherwise would have been awarded a contract is found non-responsible, the purchasing agent shall prepare a written determination of non-responsibility, setting forth the basis of the finding. The unreasonable failure of a bidder or offeror to supply promptly information in connection with an inquiry with respect to such bidder or offeror may be grounds for a determination of non-responsibility with respect to such bidder or offeror. A copy of the determination shall be sent promptly to the non-responsible bidder or offeror. The final determination shall be made part of the contract file and be made a public record.

B. Right of Nondisclosure. Proprietary information furnished by a bidder or offeror pursuant to this section shall not be disclosed by the city outside of the office of the purchasing agent without prior written consent by the bidder or offeror.

(Ord. 414-00 § 1 (part), 2000)

A. Required Submissions Relating to the Award of Contracts. When the purchasing agent, or designee, determines that analysis of the proposed price is necessary to determine if it is reasonable and fair, upon request a prospective contractor shall submit cost or pricing data when the contract is to be awarded by competitive sealed proposals (Section 4.04.080), or by sole source procurement authority (Section 4.04.110). (This requirement is repeated in Sections 4.04.080 and 4.04.110.)

B. Required Submissions Relating to Change Orders or Contract Modifications. A contractor shall submit cost or pricing data prior to the pricing of any change order or contract modification, including adjustments to contracts awarded by competitive sealed bidding, whether or not cost or pricing data was required in connection with the initial pricing of the contract when the change or modification involves aggregate increases or aggregate decreases in costs, plus applicable profits, that are expected to exceed one hundred thousand dollars. Anytime one or more change orders or contract modifications increase or decrease the total aggregate amount of the order by ten percent or more, the change shall require the approval of city council, with or without contingency.

C. Certification Required. A contractor, actual or prospective, required to submit cost or pricing data in accordance with this section, shall certify that, to the best of its knowledge and belief, the cost or pricing data submitted was accurate, complete and current as of a mutually specified date prior to the award of contract or the pricing of the change order or contract modification.

(Ord. 414-00 § 1 (part), 2000)

Any type of contract which is appropriate to the procurement and which will promote the best interests of the city may be used; with the exception of the cost-plus-percentage-of-cost contract which is prohibited.

(Ord. 414-00 § 1 (part), 2000)

When for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors, the city administrator or city attorney shall notify the state attorney general of the relevant facts.

(Ord. 414-00 § 1 (part), 2000)