Part 5 — COMPETITIVE SOLICITATION PROCEDURES
Palo Alto Municipal Code · 2026-09 edition · updated 2026-09-29 · Palo Alto
2.30.400 Informal invitation for bids or requests for proposals.¶
(a) An informal invitation for bids or requests for proposals may be solicited by any reasonable means, including, without limitation, mail, telephone, facsimile transmission, e-mail or posting to the city's web site. Quotations shall be solicited from a minimum of three bidders or proposers; if quotations from three bidders or proposers cannot be obtained by the exercise of due diligence, quotations shall be solicited from less than three bidders or proposers, as practicable. The Procurement Officer shall maintain a record of all informal invitations for bids and informal requests for proposals received by the city for a period of time in compliance with California law and the city's records retention schedule.
(b) An informal invitation for bids shall be awarded to the lowest responsive and responsible bidders, as described in Section2.30.440.
(c) An informal request for proposals shall be awarded on the basis of the proposal deemed most advantageous to the city based on the factors set forth in Section 2.30.410(e).
(d) If a contract, price quotation, or purchase order is made or awarded to other than the consultant or contractor submitting the lowest price in its quotation, bid or proposal, the Procurement Officer shall prepare the record of the transaction, in writing, containing the reasons or grounds for the decision to award the contract.
(Ord. 5494 § 22, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.410 Formal request for proposals.¶
(a) Advertising. Contracts that must be solicited by formal request for proposals shall be solicited by notice requesting proposals by advertising the notices requesting proposals on the City’s website for no fewer than five days prior to the date set for the submission of proposals. As practicable, proposals shall be solicited from a minimum of three proposers.
(b) Proposal submittal. The request for proposals shall specify the date, time and place for submitting proposals and describe the scope and time frame for the delivery of the proposed solution requested, the information to be submitted by the proposer, and the criteria for evaluating the proposal.
(c) Proposal opening. Proposals received after the specified date and time shall not be accepted and shall be returned unopened unless opening is necessary for identification purposes.
(d) Award. The contract shall be awarded on the basis of the proposal deemed most advantageous to the city.
(e) The following factors shall be considered in determining the proposal deemed most advantageous to the city:
(1) Quality of the proposal;
(2) Quality, performance and effectiveness of the solution, goods and/or services to be provided by the consultant or the contractor;
(3) Consultant or contractor’s experience, including the experience of staff to be assigned to the project, with engagements of similar scope and complexity;
(4) Cost to the city;
(5) Consultant or contractor’s financial condition and stability;
(6) Consultant or contractor’s ability to perform the contract within the time specified;
(7) Consultant or contractor’s prior record of performance with the city or other local, county or state agency, if applicable;
(8) Consultant or contractor’s ability to provide in the future any maintenance, repairs, parts and/or services, if applicable;
(9) Consultant or contractor’s compliance with applicable laws, regulations, policies (including city policies), guidelines and orders governing prior or existing contracts performed by the consultant or contractor; and
(10) Any other factor or factors the city deems relevant as specified in the request for proposals.
(Ord. 5494 § 23, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.420 Formal invitation for bids – Notice, submittal, opening.¶
(a) Advertising. Contracts that must be solicited by formal invitation for bids shall be solicited by notices inviting bids by advertising the notices inviting bids on the City's website for no fewer than five days prior to the date set for receiving bids. As practicable, bids shall be solicited from a minimum of three bidders.
(b) Notice. The notices inviting bids shall generally describe the goods and/or services to be purchased or acquired or the public works to be constructed, identify the place where the bid proposal form, specifications and other contract documents may be obtained, and specify the date, time and place when and where bids will be opened.
(c) Bid Submittal. All bids shall be sealed. All bids shall be submitted at the place, and at or before the date and time, specified in the notice inviting bids. Bids received after the specified date and time shall not be accepted and shall be returned to the bidder unopened unless the opening is necessary for identification purposes.
(d) Bid Opening. Bids timely received shall be opened in public, at the date, time and place specified in the notice inviting bids, and the aggregate bid of each bidder shall be announced.
(Ord. 5494 § 24, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.430 Combined request for proposals and invitation for bids.¶
(a) Nothing in Part 5 of this chapter shall prohibit the city from conducting a competitive solicitation process which combines the elements of the request for proposals and invitation for bids processes in a single process in order to award a contract for wholesale utility commodities and services or design-build contracts.
(Ord. 5494 § 25, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.440 Determination of lowest responsive/responsible bidder.¶
The awarding authority shall award contracts required to be formally bid to the lowest responsive and responsible bidder. As used in this chapter “awarding authority” means the city officer or employee with the authority to award and sign the particular contract, as provided in part three of this chapter, or the Council.
(a) Low Bid. The low bid shall be the bid offering the lowest total cost to the city.
(1) The determination of lowest total cost shall be made after applying relevant policies adopted by resolution of the Council that may provide for a price preference.
(2) Where ‘add alternate’ or ‘deduct alternate’ items are included in the specifications, the determination of lowest total cost shall be made in accordance with the procedure for considering the ‘add alternate’ and ‘deduct alternate’ items as set forth in the bid specifications.
(3) The determination of lowest total cost may include the effect of factors such as trade discounts, delivery costs and life cycle costs, when these are included in the specifications.
(b) Responsive Bid. A responsive bid is a bid determined by the awarding authority to conform in all material respects to the requirements of the bid documents.
(c) Responsible Bidder. A responsible bidder is a bidder determined by the awarding authority:
(1) To have demonstrated the attribute of trustworthiness, and to have the quality, fitness, capacity, experience, and skill to satisfactorily perform the work, or provide the goods and/or services called for in the invitation for bids;
(2) To have the ability to perform the contract within the time specified;
(3) To have the equipment, facilities and resources of such capacity and location to enable the bidder to perform the contract;
(4) To have the ability to provide, as required, future maintenance, repair, parts and service for the use of goods purchased;
(5) To have a record of satisfactory or better performance under prior contracts with the city or others; and
(6) To have complied with applicable laws, regulations, policies (including city policies), guidelines and orders governing prior or existing contracts performed by the bidder.
(Ord. 5494 § 26, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.450 Tie bids.¶
If an identical price is received from two or more responsive and responsible bidders, the awarding authority may determine the successful bidder by the casting of lots in public and in the presence of the tie bidders, at a date, time and place set by the awarding authority. The awarding authority shall provide notice to the tie bidders of the date, time and place for casting lots by e-mail, phone or facsimile transmission.
(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.460 Correction or withdrawal of bids or proposals.¶
(a) Before date and time for receipt of bids or proposals. Bids or proposals that contain mistakes discovered by a bidder or proposer before the date and time for receipt of bids or proposals may be modified or withdrawn by written notice to the employee designated for the receipt of bids or proposals received prior to the deadline for receipt of bids or proposals. Any modification shall be filed under seal with the employee designated for receipt of bids and proposals.
(b) After date and time for receipt of bids or proposals. A bidder or proposer may not change its bid or proposal after the date and time set for the receipt of bids or proposals, except that the bidder or proposer may seek the city’s consent to the substitution of a subcontractor where the bidder can demonstrate in accordance with California law, including Section 4107.5 of the California Public Contract Code, that the name of the a substituted subcontractor was listed as a result of an inadvertent clerical error.
(c) Withdrawal of Bids or Proposals. A bidder or proposer alleging a mistake in a bid or proposal may be permitted to withdraw its bid or proposal only in conformance with California law, including Section 5100, et seq., of the California Public Contract Code.
(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.470 Cancellation of solicitations -- Rejections of bids/proposals.¶
(a) Cancellation of Solicitations. The Procurement Officer may cancel the solicitations for proposals or bids process before the date and time set for the receipt of proposals or bids upon a written determination at the time the notice of cancellation is provided that such action is in the city’s best interest for reasons, including, without limitation, any of the following:
(1) The city does not then require the construction of the public works project or the provision of goods and/or services;
(2) The city will not then appropriate fund for the public works project, goods and/or services; or
(3) Proposed amendments to the solicitation document would make a new solicitation desirable and necessary.
(b) Rejection of Bids or proposals. The awarding authority may reject any or all bids or proposals. If all bids or proposals are rejected, the awarding authority may exercise the discretion to resolicit for bids or proposals. In the case of a bid, if the awarding authority is the Council and all bids would be rejected due to prices or costs that exceed the city’s costs estimate, the Procurement Officer may exercise the discretion to reject all bids and to re-solicit bids.
(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.480 Waiver of minor irregularities, defects and informalities.¶
The awarding authority may exercise its discretion to waive minor irregularities, defects or informalities in the bids or proposals, provided the waiver would not affect the amount of the bid or proposal or give a competitive advantage upon the bidder or proposer an advantage over others.
(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
2.30.485 Delegation of awarding authority determinations.¶
The awarding authority may delegate to the Procurement Officer the implementation of a determination by the awarding authority under Sections 2.30.440; 2.30.450; 2.30.470(b); and 2.30.480 of this chapter. Where the awarding authority is Council, Council hereby delegates to the Procurement Officer the implementation of determinations by Council as the awarding authority under Sections 2.30.440; 2.30.450; 2.30.470(b); and 2.30.480 of this chapter.
(Ord. 5494 § 27, 2020)
2.30.490 Design-build contract procurement procedures.¶
This Section establishes the exclusive procedures for the award of wholly or partially city-funded design-build contracts, to the extent debt financing limitations do not apply, and supersedes in their entirety all statutory provisions pertaining to local agency design-build construction, as set forth in chapter 4 of part 3 of division 2 of the California Public Contract Code, Section 22160 et seq., as amended from time to time.
(a) Bridging documents shall be prepared by a qualified, licensed design professional, identifying the scope and estimated price or costs of the public works project and including additional requirements or information necessary to adequately describe the city's needs for the project. These may include, without limitation, the size, type, and desired design character of the project, the performance specifications covering the quality of supplies, materials, equipment, and workmanship, or preliminary plans or building layout plans. The design professional, which prepares the bridging documents, may not subsequently submit or participate in the proposal submitted for an award of design-build contract, or have any financial interest in any design-build entity or team which submits a design-build contract construction proposal or which provides the design-build services.
(b) A formal request for proposals may be posted and advertised in manner provided for in Section2.30.410(a), or by targeted distribution to three or more design-build entities or teams which the Procurement Officer determines possesses demonstrated skills, experience, and financial qualifications to provide the required design-build services.
(c) A formal request for proposals shall comply with the requirements of Section2.30.410(a) and shall include: the bridging documents prepared according to Section 2.30.490(a); a request for qualifications; and the design-build contract documents approved by the City Attorney as required by this chapter.
(d) Design-build entities and teams may be required to pre-qualify in order to be eligible to submit a proposal for the design-build project by responding to the request for qualifications in advance of the date set for the submission of proposals. The Procurement Officer may determine and will provide notice that the statement of qualifications may be submitted concurrently with the proposals.
(e) The design-build contract may be awarded to the responsive, responsible design-build entity or team on the basis of either the lowest lump- sum price or the 'best value' provided, as defined in the formal request for proposals. A design-build contract that is awarded on the 'best value' basis will be evaluated based solely on the selection criteria and procedures set forth in the formal request for proposals.
(f) The design-build contract shall require the design-build entity or team and its subcontractors of every tier to comply with the requirements of Section 22164(c) of the California Public Contract Code, as amended.
(Ord. 5494 § 28, 2020: Ord. 5387 § 1 (part), 2016)
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- Article VIII — A. Board of Education
- Title 1 — GENERAL PROVISIONS
▸Title 2 — ADMINISTRATIVE CODE
Overview- 2.04 Council Organization and Procedure
- 2.06 Official City Seal and Logo
- 2.07 Post-Government Employment Regulations
- 2.08 Officers and Departments
- 2.09 Conflict of Interest Code for Designated Positions
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- 2.21 Architectural Review Board
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- 2.25 Parks and Recreation Commission
- 2.26 Visual Art in Public Places
- 2.27 Historic Resources Board
- 2.28 Fiscal Procedures
- 2.30 Contracts and Purchasing Procedures
- 2.31 Property Control
- 2.32 Sales and Use Tax
- 2.33 Transient Occupancy Tax
- 2.34 Real Property Transfer Tax
- 2.35 Utility Users Tax
- 2.36 Personnel Procedures
- 2.37 Business Tax
- 2.40 Municipal Elections
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- 2.48 Solar Tax Credit
- 2.49 Electronic Signatures
- Chapter 2.04 — COUNCIL ORGANIZATION AND PROCEDURE
- Chapter 2.06 — OFFICIAL CITY SEAL AND LOGO
- Chapter 2.07 — POST-GOVERNMENT EMPLOYMENT REGULATIONS
- Chapter 2.08 — OFFICERS AND DEPARTMENTS
- Chapter 2.09 — CONFLICT OF INTEREST CODE FOR DESIGNATED POSITI…
- Chapter 2.10 — CABLE TELEVISION AND OPEN VIDEO SYSTEMS - AWARD…
- Chapter 2.11 — VIDEO SERVICE PROVIDERS - APPLICABLE REQUIREMENTS
- Chapter 2.12 — EMERGENCY ORGANIZATION AND FUNCTIONS
- Chapter 2.16 — BOARDS AND COMMISSIONS GENERALLY
- Chapter 2.18 — PUBLIC ART COMMISSION
- Chapter 2.20 — PLANNING AND TRANSPORTATION COMMISSION
- Chapter 2.21 — ARCHITECTURAL REVIEW BOARD
- Chapter 2.22 — HUMAN RELATIONS COMMISSION
- Chapter 2.23 — UTILITIES ADVISORY COMMISSION
- Chapter 2.24 — LIBRARY ADVISORY COMMISSION
- Chapter 2.25 — PARKS AND RECREATION COMMISSION
- Chapter 2.26 — VISUAL ART IN PUBLIC PLACES
- Chapter 2.27 — HISTORIC RESOURCES BOARD
- Chapter 2.28 — FISCAL PROCEDURES
- Chapter 2.30 — CONTRACTS AND PURCHASING PROCEDURES
- Part 6A — SURVEILLANCE AND PRIVACY PROTECTIONS
- Part 1 — GENERAL
- Part 2 — CONTRACT TYPES
- Part 3 — CONTRACTING AUTHORITY
- Part 4 — COMPETITIVE SOLICITATION REQUIREMENTS
- Part 5 — COMPETITIVE SOLICITATION PROCEDURES
- Part 6 — CONTRACT TERMS AND CONDITIONS
- Part 7 — ETHICS IN CONTRACTING
- Part 6A — SURVEILLANCE AND PRIVACY PROTECTIONS
- Part 8 — RECORDS AND REPORTS
- Part 9 — REWARDS
- Part 10 — STANDARDIZATION
- Chapter 2.31 — PROPERTY CONTROL
- Chapter 2.32 — SALES AND USE TAX
- Chapter 2.33 — TRANSIENT OCCUPANCY TAX
- Chapter 2.34 — REAL PROPERTY TRANSFER TAX
- Chapter 2.35 — UTILITY USERS TAX
- Chapter 2.36 — PERSONNEL PROCEDURES
- Chapter 2.37 — BUSINESS TAX
- Chapter 2.40 — MUNICIPAL ELECTIONS
- Chapter 2.44 — OFFICIAL NEWSPAPER
- Chapter 2.48 — SOLAR TAX CREDIT
- Chapter 2.49 — ELECTRONIC SIGNATURES
- Title 4 — BUSINESS LICENSES AND REGULATIONS
- Title 5 — HEALTH AND SANITATION
- Title 6 — ANIMALS
- Title 8 — TREES AND VEGETATION
- Title 9 — PUBLIC PEACE, MORALS AND SAFETY
- Title 10 — VEHICLES AND TRAFFIC
- Title 11 — ENVIRONMENTAL IMPACT PROCEDURE
- Title 12 — PUBLIC WORKS AND UTILITIES
- Title 13 — IMPROVEMENT PROCEDURE
- Title 15 — FIRE PREVENTION
- Title 16 — BUILDING REGULATIONS
- Title 17 — HAZARDOUS MATERIALS STORAGE
- Title 18 — ZONING
- Title 19 — MASTER PLAN
- Article 7 — AUTHORITY FOR AND SCOPE OF MASTER OR GENERAL PLANS.
- Article 8 — PROCEDURE FOR ADOPTION OF MASTER OR GENERAL PLAN.
- Chapter 19.06 — SPECIFIC PLANS
- Chapter 19.10 — COORDINATED AREA PLANS
- Title 20 — PRECISE PLANS
- Title 21 — SUBDIVISIONS AND OTHER DIVISIONS OF LAND
- Title 22 — PARKS