Merced Municipal Code Art. III Purchases Over Twenty-Five Thousand Dollars

Except as otherwise provided in this chapter, the purchase of materials, supplies, equipment, and contractual services of an estimated value greater than twenty-five thousand dollars ($25,000.00), the "contract threshold," shall be made by the purchasing supervisor by written contract with the lowest responsible bidder in accordance with the procedures described in Section 3.04.130. The contract threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.

(Amended during 8-08 supplement; Ord. 2299 § 4, 2008: Ord. 1994 § 3, 1998: Ord. 1162 § 1 (part), 1976: prior code § 2.28(A)).

Notices inviting bids shall be published by the purchasing supervisor at least once in the official newspaper, and the first such notice shall be published at least ten (10) days before the date of opening the bids. In addition to the published notice, the purchasing supervisor shall serve the best interests of the city through soliciting bids from prospective vendors by direct mail requests, by notice on official city bulletin boards, or by any other means which he determines to be advantageous to the city. Notices inviting bids shall include a general description of the materials, supplies, equipment or contractual services to be purchased, shall state where bid blanks and written specifications may be secured, and shall designate the date, time and place for opening bids.

(Amended during 8-08 supplement; Ord. 1162 § 1 (part), 1976: prior code § 2.28(B)).

When deemed necessary by the purchasing supervisor, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) calendar days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The purchasing supervisor on refusal or failure of the successful bidder to execute the contract may award it to the next lowest responsible bidder. If the purchasing supervisor awards the contract to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

(Amended during 8-08 supplement; Ord. 1162 § 1 (part), 1976: prior code § 2.28(C)).

Sealed bids shall be submitted to the purchasing supervisor, shall be identified as "bid" on the envelope, and shall be opened in public on the date at the time and place stated in the public notices.

(Amended during 8-08 supplement; Ord. 1162 § l (part), 1976: prior code § 2.28(D)).

The purchasing supervisor shall tabulate all bids received and after consultation with the appropriate department head award the contract. A tabulation of all bids received shall be available for public inspection. Such records may be destroyed after two (2) years.

(Amended during 8-08 supplement; Ord. 1162 § 1 (part); 1976: prior code § 2.28(E)).

If two (2) or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the purchasing supervisor, in his discretion, may accept the one he chooses, or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.

(Amended during 8-08 supplement; Ord. 1162 § 1 (part), 1976: prior code § 2.28(F)).

The purchasing supervisor, in his discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, may reject any or all bids, or may accept the bid that best serves the public purpose even though it may not be the lowest. The purchasing supervisor may readvertise for bids or proceed with the purchase of the materials, supplies, equipment or contractual services by negotiation in the open market.

(Amended during 8-08 supplement; Ord. 1162 § 1 (part), 1976: prior code § 2.28(G)).

The purchasing supervisor, before entering into a contract, shall have authority to require a performance bond in an amount as shall be reasonably necessary to protect the best interests of the city. When a performance band is required, the form and amount of the bond shall be described in the notice inviting bids.

(Amended during 8-08 supplement; Ord. 1162 § 1 (part), 1976: prior code § 2.28(H)).

No undertaking involving amounts in excess of twenty-five thousand dollars ($25,000.00), the "contract threshold," shall be split into parts by the department head issuing the requisition or by the purchasing supervisor so as to produce amounts of twenty-five thousand dollars ($25,000.00) or less, and thus below the contract threshold, for the purpose of avoiding the provisions and restrictions of this article. The contract threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.

(Amended during 8-08 supplement; Ord. 2299 § 5, 2008: Ord. 1162 § 1 (part), 1976: prior code § 2.28(I)).

Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold," may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.

(Ord. 2299 § 6, 2008: Ord. 1162 § 1 (part), 1976: prior code § 2.29).

The council may, by resolution, adopt a local business preference policy which otherwise complies with the regulations of this chapter.

(Ord. No. 2485, § 1, 2-20-2018)