Cupertino Municipal Code Ch. 3.22 Purchase of Supplies, Materials, Equipment and Services

This Chapter is enacted to set forth policy to establish efficient procedures for the purchase of supplies, materials, equipment and Services at the lowest possible cost commensurate with quality needed, and to clearly define authority for the purchasing function of the City.

(Ord. 1582, § 1 (part), 1992; Ord. 24-2255, Att. A (part), 2024)

For the purposes of this Chapter, the following words and phrases shall have the meanings ascribed to them by this section.

1. “Bid” means any competitive price-based bid submitted to the City for purchases and contracts for supplies, materials, equipment, and/or Services.

2. “Lowest responsible bidder” means the lowest monetary bidder who has demonstrated the attribute of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform the contract.

3. ”Proposal” means a competitive submittal that is evaluated based on vendor qualifications, project approach, costs and other requirements for purchases and contracts for Services.

4. “Purchases” Purchases of supplies and equipment shall include leases or rentals, as well as transactions by which the City acquires ownership.

5. “Purchasing Manager” means the principal purchasing official responsible for developing policy and ensuring compliance in the procurement of goods and services in accordance with applicable law.

6. “Purchasing Officer” means the City Manager or any other official or officials designated in writing by the City Manager for administration of this Chapter.

7. “Services” means any and all services including, but not limited to, professional services, consulting, technology solutions and equipment and maintenance service contracts. The term does not include services rendered by City officers or employees, or professional or other services which are by nature unique or for which the procedure for procurement is specifically provided by law.

8. “Supplies”, “materials” and “equipment” means any and all articles, things or tangible personal property furnished to or to be used by the City

(Ord. 1897, § I (part), 2002; Ord. 1582, § 1 (part), 1992; Ord. 24-2255, Att. A (part), 2024)

A. The Purchasing Officer of the City is vested with the authority for the purchase of supplies, materials, equipment, and Services. When the provisions and intent of this Chapter may be best served by so doing, the Purchasing Officer may authorize in writing any department, or the Purchasing Manager, to investigate, solicit bids or to negotiate the purchase or award of contracts for supplies, materials, equipment or Services for that department, provided that such shall be done in conformity with the procedures prescribed by this Chapter or by duly adopted administrative rules and regulations pertaining thereto.

B. The Purchasing Officer shall have the responsibility and authority to:

1. Prepare and adopt policies, administrative rules, regulations and procedures not in conflict with the provisions of this Chapter for the purpose of carrying out the requirements and intent of this purchasing system.

2. Purchase or contract for materials, supplies, equipment, or Services to be performed as may be required by any department of the City in accordance with procedures prescribed by this Chapter or by such administrative rules, policies and procedures as the Purchasing Officer may adopt pursuant thereto.

(Ord. 1582, § 1 (part), 1992; Ord. 24-2255, Att. A (part), 2024)

A. Purchases of supplies, materials, equipment or Services shall be made only by means of purchase orders, purchasing card or check requests processed and issued pursuant to this Chapter. A purchase order or check request shall be valid only when signed by the Purchasing Officer or designee.

B. Nothing herein shall preclude the use of authorized petty cash funds for purposes intended by their establishment.

(Ord. 1582, § 1 (part), 1992; Ord. 24-2255, Att. A (part), 2024)

The Purchasing Officer shall not issue any purchase order, approve a check request, or award any contract for the acquisition of supplies, materials, equipment or Services, unless there exists an unencumbered appropriation in the funds as approved by City Council resolution adopting procedures for administration of the annual budget. The appropriate account and funds shall be encumbered after the issuance of the purchase order, approval of a check request or award of contract.

(Ord. 1582, §I (part), 1992; Ord. 24-2255, Att. A (part), 2024)

A. Open Market Purchases. The Purchasing Officer may award contracts, issue purchase orders or approve check requests for the acquisition of supplies, materials, equipment or Services in the open market without observing the competitive bidding procedure contained in this Chapter as provided for by the administrative policy. A non-competitive open market purchase will foreseeably equal, or be less than, the amount for public works contracts described in section 22032(a) of the Public Contracts Code.

B. Purchases Approved by the Purchasing Officer . In instances where the purchase of supplies, materials, equipment or Services will foreseeably result in the issuance of a purchase order, approval of a check request or the award of a contract that equals, or is less than the amount for public works contracts described in section 22032(b) of the public contracts code, the Purchasing Officer has the authority to take this action.

Such action shall be taken only after the informal competitive bidding or proposal procedure described in section F below is followed unless the City Manager finds in writing that the use of the informal competitive bidding or proposal procedure is not practical, undesirable or impossible due to limitations on source of supply, necessary restrictions in specifications, necessary standardization, quality considerations, or if other valid reasons for waiving or exempting the informal competitive bidding or proposal procedures apply. Upon making such a finding, the Purchasing Officer may dispense with the informal competitive bidding or proposal procedure and make the purchase through any procedure which meets the City’s requirements.

C. Purchases Approved by City Council. In instances where the acquisition of supplies, materials, equipment or Services will foreseeably result in the issuance of a purchase order, approval of a check request or the award of a contract in excess of the amount for public works contracts described in section 22032(b) of the Public Contracts Code, the City Council has the authority to take this action.

Such action shall be taken after the formal competitive bidding or proposal procedures described in sections D or E are followed unless, pursuant to a recommendation of the City Manager, the City Council finds that the use of the formal competitive bidding or proposal procedures are not practical, undesirable or impossible due to limitations on source of supply, necessary restrictions in specifications, necessary standardization, quality considerations, or if other valid reasons for waiving or exempting the formal competitive bidding or proposal procedures apply. Upon making such a finding, the Council may direct the Purchasing Officer to dispense with the formal competitive bidding or proposal procedure and make the purchase through any procedure which meets the City’s requirements.

D. Formal Competitive Bidding Procedures . The formal bidding procedures required for purchases described in Section 3.22.060 (C) shall be to the lowest responsive and responsible bidder pursuant to administrative policy implemented by the Purchasing Officer.

E. Formal Competitive Request for Proposal Procedures. The formal proposal procedures required for the selection of the best qualified proposal shall be pursuant to administrative policy implemented by the Purchasing Officer.

F. Informal Competitive Bidding or Proposal Procedure. Purchases described in section B shall be pursuant to administrative policy implemented by the Purchasing Officer.

(Ord. 1897, § 1 (part), 2002; Ord. 1582, § 1 (part), 1992; Ord. 24-2255, Att. A (part), 2024)

A. Notwithstanding any provision of this Chapter to the contrary, the Purchasing Officer is authorized to issue a purchase order, approve a check request, or award a contract, without adherence to Section 3.22.060 of this Chapter under the following instances:

1. Emergency Purchases. The immediate requirement of supplies, materials, equipment, or Services necessary for the continued operation of a department or for the preservation of life, health or property shall be deemed an emergency. A full report of the circumstances of an emergency purchase in excess of the amount described in section 3.22.060 (C) shall be filed with the City Council at its next regular meeting after the purchase was made.

2. Recurring or Essential Services. Purchases where reasonable advanced estimates of costs cannot be determined for essential services of a recurring nature. Included in, but not limited to, this authorization are such items as utility services, approved settlements or claims for liability under the City’s insurance program, renewal premium for authorized insurance policies, necessary bonds, all expenditures for the City's payroll and employee benefits and other matters involving unknown estimates of costs.

3. Legal Services. Purchase of legal advice, legal consultation, attorneys, assistants, or special counsel to address legal matters shall be in accordance with Chapter 2.18.

B. The following situations are exempt from the informal and formal competitive bid or proposal procedures described in this Chapter. Exemption determinations will be documented and approved by the Purchasing Officer.

1. Purchases From Other Public Agencies. Purchases of supplies, materials, equipment or Services from any other public agency created under the laws of the State of California or the United States Government.

2. Specialized Services Purchase. Specialized services and advice, in accordance with Government Code Section 37103, for financial, economic, accounting, or administrative matters are exempt from a competitive process.

3. Sole Source Purchase. Purchases from a single entity that possess the unique ability, capability, equipment, technology, patent or copyright to meet the City’s need based on standardization, compatibility or operational requirement.

4. Use of Another Public Agency Cooperative Competitive Solicitation. After another governmental or public agency has completed a competitive procurement process in a manner similar to the bidding or proposal procedures described in this Chapter, and is for the goods or Services desired by the City, the City may award a contract to the selected vendor(s) resulting from that procurement process.

(Ord. 1897, § 1 (part), 2002; Ord. 1582, § 1 (part), 1992; Ord. 24-2255, Att. A (part), 2024)