Pomona Municipal Code § 2-996 Formal bid procedure for revenue producing procurements

The department making the request for goods and services, professional services, and equipment shall submit requests to the purchasing division using the automated purchasing system.

(Ord. No. 4276, § 3, 1-6-2020)

Purchase of goods and services, professional services and equipment shall be made by purchase order issued by the procurement officer, subject to the provisions of this article. Except in an emergency, as authorized in this article, no officer or employee of the city shall request a supplier to deliver goods and services, professional services or equipment to the city, or begin work on any assignment, without prior authorization by the procurement officer. The finance director shall have the authority to set a minimum dollar threshold for which a purchase order is required, however said threshold shall not exceed the minimum bid limit as provided in section 2-993. No procurement of materials or services of over $5,000.00 shall be made without a purchase order.

(Ord. No. 4276, § 3, 1-6-2020)

Notwithstanding other sections of this article, the procurement officer may issue open purchase orders for goods and services, professional services and equipment as needed to support ongoing city operations and support various city departmental functions. Open purchase orders are only valid for one fiscal year and will be closed at the end of each fiscal year.

Purchasing may establish citywide blanket purchase orders for citywide goods and services.

(Ord. No. 4276, § 3, 1-6-2020)

Except in an emergency, or in cases where specific authority has been first obtained from the city manager, the procurement officer shall not issue any purchase order for materials, supplies, services or equipment unless the finance director has determined there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. All purchases, regardless of encumbrances, shall be made in conformance with the policies established by this code.

(Ord. No. 4276, § 3, 1-6-2020)

(a) Term. The duration of a contract will depend upon the city's need, prevailing market conditions, contract start-up costs, and the city's best economic interest. The initial term of a contract shall not exceed three years, unless otherwise approved by the city council. In no case shall a contract exceed five years in duration unless the contract is specifically approved by the city council, or is extended from the original contract term by one year.

(b) Contingency amounts. When requesting approval for award of a service contract from the city council, a contingency amount may also be requested.

(c) Amendments.

(1) Contract decreases. The procurement officer may decrease the amount of contracts.

(2) Contract increases. A contract's total expenditure may not increase by more than 25 percent of the original contract amount or will not cause the total cost to exceed the informal threshold amount, whichever is less and it is demonstrated to be in the best interest of the city and reflective of good purchasing practices and approved by the finance director or procurement officer. Increases that exceed the informal threshold shall be approved by the city council.

(3) Renewals. Prior to recommending renewal or extension of an existing contract, the using department will document that performance of the contractor has been satisfactory.

(4) Contract extensions. Contracts of less than five years may be extended for up to six months from the original contract term without approval by the city council; in no event shall the contract term exceed five years. The extension may be issued by the procurement officer, without the city council's approval provided there are no monetary increases above average semi-annual value of the previous year and if it is determined to be in the best interest of the city.

(d) Retroactive contract/amendments/changes, excluding public works contracts.

(1) In general, retroactive contracts or contract overruns are not permitted, and if they occur they are invalid unless ratified by the city council, or unless one or more of the following exemptions applies:

a. Contracts with a total value less than $500.00.

b. Contracts with a total value between $500.00 and $2,499.00 that have the approval of the procurement officer and finance director.

c. Contracts with a total value between $2,500.00 and $5,000.00 shall require approval by the city manager.

d. Contracts with a total value exceeding $5,000.00 and above shall require approval by the city council.

(Ord. No. 4276, § 3, 1-6-2020)

Department directors shall be responsible for managing supplies and service contracts under the authority of their respective departments. Contract management shall include, but not be limited to, ensuring that suppliers and service providers are in compliance with local, state and federal laws and requirements, comply with the terms of the agreements, contracts, purchase orders, including insurance, pricing and maximum dollar limits.

(Ord. No. 4276, § 3, 1-6-2020)

Every employee involved in any aspect of purchasing goods or services is responsible for following current purchase practices, policies, and procedures as established by the finance department and as may be amended from time to time.

(Ord. No. 4276, § 3, 1-6-2020)

In order to promote the economic health of the city and to encourage local participation in the procurement process, the city, in determining the lowest responsible bidder, may take into consideration the sales tax which would be returned to the city as a result of the award. Procurements funded by federal, state or county grants may prohibit local preference considerations; therefore, shall default to the most restrictive requirements for contract award.

(Ord. No. 4276, § 3, 1-6-2020)

Whenever possible and reasonably practical, the procurement officer shall include environmental consideration in purchasing decisions and attempt to purchase products manufactured from the maximum recycled content practicable.

The City of Pomona recognizes the positive impact it can make on the environment through the purchasing decisions it makes. The City of Pomona is a large consumer of goods and services, and the purchasing decisions of its employees and contractors can positively or negatively affect the environment. By including environmental considerations in procurement decisions, along with the city's traditional concerns with price, performance, and availability, the city will remain fiscally responsible while promoting practices that will improve public health and safety, reduce pollution, and conserve natural resources.

The purpose of this policy is to support the purchase of recycled and environmentally preferred products. Operating in accordance with current City of Pomona purchasing regulations, including price, performance, availability, and safety considerations, employees should seek to reduce the negative environmental impact associated with purchases by increasing acquisition of environmentally preferred products and services to the extent feasible.

(Ord. No. 4276, § 3, 1-6-2020)

The procurement officer or department designee shall inspect materials, supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The procurement officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliverables which are necessary to determine their quality and conformance with specifications.

(Ord. No. 4276, § 3, 1-6-2020)

(a) If any section, subsection, subdivision, sentence, clause or phrase of this division conflicts with any federal and or state requirements mandated for any grant funded procurement, the applicable federal and or state requirements shall apply to that procurement.

(b) The city, as grantee, will not provide federal or state funds to any party (subgrantee, subrecipient, supplier and/or contractor) that is debarred or suspended or otherwise excluded from or ineligible for participation in federal or state assistance programs.

(Ord. No. 4276, § 3, 1-6-2020)

(a) Right to protest. Prior to making the award, any responsible bidder in connection with the award of a contract may protest the award to the procurement officer. A subcontractor of a bidder or proposer may not submit a protest. The protest shall be submitted in writing within five calendar days prior to the date of the award and shall identify and explain the factual and legal grounds for the protest. Any grounds not raised in the written protest are deemed waived by the protesting bidder. The procurement officer shall review the request and provide the protester with a written reply regarding the protest within three days prior to the final award. Protests received after five calendar days prior to the date of the award will not be considered.

(b) Authority to resolve protests. The procurement officer shall have the authority, prior to award, to settle, resolve, or reject a protest of a responsible bidder concerning the award of a contract.

(c) Effect of failure to comply with protest procedures. The procedures set forth in this article are mandatory and are the sole and exclusive remedy of a bidder or proposer to dispute the award of a contract. A protest that does not comply with these procedures may be summarily rejected.

Any supplier desiring to conduct business with the city must have a valid city business license. Procurements for materials, goods and services, professional, services, equipment or construction must be made by one of the methods described in this article unless otherwise authorized by law. With the exception of design-build procurements, contractors that develop or draft specifications, requirements, statements of work, invitations for bids or requests for proposals are prohibited from competing for and being awarded the subsequent contract for work.

(Ord. No. 4276, § 3, 1-6-2020)

An acquisition of supplies or services using simplified acquisition procedures in the aggregate amount less than the micro-purchase threshold of $5,000.00.

(Ord. No. 4276, § 3, 1-6-2020)

The procurement of goods and services, equipment and professional service with an estimated annual value of $5,000.00 and up to $100,000.00 to one supplier inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, may be made by the procurement officer in the open market. Procurement requirements shall not be artificially split/divided so as to constitute an informal purchase under this section.

(1) Informal bid or proposal requirement. The open market informal procedure criteria shall include:

a. Minimum number of bids or proposals. Informal procurements of $5,000.00 and up to $100,000.00 shall be based on at least three bids or proposals.

b. Inviting bid or proposals. The procurement officer may solicit informal bids or proposals by written request, email and through other electronic media to prospective sources.

c. Responses. Informal bids or proposals will be submitted to the procurement officer, who shall keep a record of all open market orders and responses in accordance with the city's records retention policy. This record, while so kept, shall be open to public inspection.

d. Determining responsiveness and responsibility. The finance director or procurement officer may waive minor defects in informal bid or proposal documents, provided the defect has no effect on the bid price or published selection criteria in a request for proposal or qualifications. The procurement officer may exercise the authority to declare a bidder, proposer or respondent as non-responsible; and shall have the authority to suspend the bidder, proposer or respondent from participating in future bid or proposal opportunities upon the discovery of violations to any applicable laws, policies and procedures for a specified period of time or until such violations are corrected.

e. Award. Informal procurements shall be approved by the using department director or authorized designee dependent upon signature authority, and awarded by the procurement officer by way of a purchase order and other applicable agreements as may be required, to the lowest, most responsive and responsible bidder, or to the most qualified proposer or respondent at fair and reasonable prices.

f. Transparency. All informal procurements exceeding $50,000.00 and up to $100,000.00 will be published on the city's website on a quarterly basis for public inspection.

(Ord. No. 4276, § 3, 1-6-2020)

(a) Generally. Except as otherwise provided in this article, the procurement officer shall procure materials, supplies, services, professional services (non-CIP) and equipment in excess $100,000.00 pursuant to the formal procedure described in this section subject to the exceptions set forth in section 2-993.1. The finance director or procurement officer may waive minor defects in bid documents, provided the defect has no effect on the bid price recommended for award.

(b) Splitting purchases. It shall be expressly forbidden to split or separate into smaller projects or procurements any request for supplies, service and/or equipment for the purpose of evading the requirements of this section.

(c) Exceptions. Criteria for exceptions is set forth in section 2-993.2.

(d) Invitation for bids, request for proposals or qualifications. An invitation shall be issued to all interested parties and shall include a description of the materials, supplies, services or equipment to be procured.

(1) Public notice inviting bids. The notice inviting bids shall be publicly advertised in the manner directed by the procurement officer pursuant to the procurement policies and procedures manual. The notice shall state where bid or proposal documents may be secured and the date, time and place submittal and for opening bids. The city will utilize electronic methods for all noticing requirements of the procurement process whenever feasible.

(2) Bidders' list. The procurement officer may use an electronic bid list and any other available list to notify interested parties of the bid opportunity.

(3) Bidders' security. When deemed necessary by the procurement officer, bidders' security may be prescribed in the public notices inviting bids. Bidders shall be entitled to a return of bid security, provided that a successful bidder shall forfeit his/her bid security upon refusal or failure to execute the contract within ten days after being notified of award, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award the contract to the next lowest bidder; the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid; and the surplus, if any, shall be returned to the lowest bidder.

(4) Bid opening procedure. The method of submittal, as determined by the procurement officer, shall be electronically through the electronic bidding system or submitted in hardcopy format. Bids shall be opened in public in accordance with the date, time and place stated in the public notice. Bids submitted electronically through a bid management system will be opened electronically. The functionality of the electronic bidding system shall ensure that bid submissions remain unopened until the closing date and time of said submissions and that said submissions cannot be viewed by the public or city staff until the closing date and time. Sealed paper bids shall be delivered to the procurement officer or city clerk as specified in the bid document. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. Proposals will not be opened publicly. Proposals may be open for public view after award by the city council.

(5) Determination of lowest responsive and responsible bidder, or most qualified proposer or respondent. Upon opening and tabulation of received bids, or conducting an evaluation received proposals, the procurement officer shall thereafter determine the lowest, responsive and responsible bidder providing the best value, or the most qualified proposer or respondent by applying the criteria as set forth in the procurement policies and procedure manual. Whenever the procurement officer determines that a bidder or proposer is non-responsive or non-responsible, the procurement officer shall notify the bidder or proposer of said determination by way of an electronic method. The bidder or proposer shall be entitled to submit a protest in accordance with section 2-990.

(6) Rejection of bids or proposals. In its discretion, the city may reject any and all bids or proposals. The right to reject any and/or all bids or proposals is expressly reserved to the city and said decision shall be final.

(7) Award. Formal bids or proposals over $100,000.00 and less than $150,000.00 shall be awarded by the city manager to the bidder or proposer determined to be the lowest, responsive and responsible bidder, or the most qualified proposer, except as otherwise provided in this section. Formal bids or proposals in the amount of $150,000.00 or more shall be awarded by city council to the bidder or proposer determined to be the lowest, responsive and responsible bidder, or the most qualified proposer, except as otherwise provided in this section.

(8) Single bid or proposal. If a single bid is received in response to a solicitation, an award may be issued based on the qualifying process as set forth in the procurement policies and procedures manual.

(9) Tie bids. If two or more bids received are the same total amount or unit price, quality and service being equal, the city shall award the contract by drawing lots.

(10) Performance bonds. The procurement officer agent shall have authority to require a performance bond before entering into a contract in such amount as reasonably necessary to protect the best interests of the city. If a performance bond, the form and amount of the bond shall be described in the notice inviting bids or proposals.

(Ord. No. 4276, § 3, 1-6-2020)

Exceptions to the informal and formal procedures (sections 2-993 and 2-993.1) maybe waived in the following instances:

(1) Sole and single source. Section 2-994, Sole and single source procurement.

(2) Cooperative purchasing. Section 2-997, Cooperative purchasing.

(3) Emergency. See section 2-998.

(4) Motor vehicle fuels and oil products. Motor vehicle and oil products may be made in the most efficient method available consistent with the intent of this article and in the best interest of the city.

(5) Equipment maintenance and software agreements. The city manager or designee shall have the authority to approve maintenance and software agreements exceeding $50,000.00 for equipment and software procurements approved by the city council, provided the agreements are awarded to the same company for the same equipment or software as approved by the city council. Any other maintenance and software agreements shall be subject to the provisions of section 2-993.

(6) Specialty exclusion. Library: books, journals, and publications specific to the operation library, durable medical equipment or physician prescribe supplies and services necessitated under workers compensation law are excluded from the solicitation procedure.

(7) Specialized legal services. The city manager or designee shall have the authority to approve, as recommended by the city attorney, specialized legal services agreements relating to current or probable litigation.

(8) Fiscal and/or personnel services. The city manager or designee shall have the authority to approve specialty services related to fiscal and/or personnel related matters.

(Ord. No. 4276, § 3, 1-6-2020)

A contract may be awarded as a sole or single source without competition upon review and verification, and determined to be in the city's best interest. Sole or single source requests between $5,000.00 and up to $50,000.00 will be approved by the finance director and procurement officer. Sole source requests exceeding $50,000.00 shall be reviewed by the procurement officer and finance director and approved by the city manager. Sole or single source requests over $100,000.00 shall be reviewed by the procurement officer, finance director, and the city manager and approved by the city council.

(Ord. No. 4276, § 3, 1-6-2020)

Notwithstanding any other provision of this code, the procurement officer may dispense of the informal and formal procedure where the procurement officer determines that extenuating circumstance exists outside the normal city needs that makes the application of all requirements of competitive solicitations contrary to the public interest. Any special procurement under this section shall be made with such competition as practicable under the circumstances and up to the limit approved by the city council. A written determination of the basis for the procurement and for the selection of the particular contractor shall be included by the procurement officer in the contract file.

(Ord. No. 4276, § 3, 1-6-2020)

Except as otherwise provided in section 2-993.1, this section shall apply to all procurements in which the bidder generates revenue in the amount $10,000.00 or greater payable to the city. Procurement shall be by written bid with award by the city council to the highest revenue-generating bidder. Contracts that generate revenue or savings are subject to the informal bid process as outlined in section 2-993.

(Ord. No. 4276, § 3, 1-6-2020)

The procurement officer shall be authorized to join with other units of government in cooperative purchasing plans so that the best interest of the city shall be served thereby. The procurement officer is authorized to recommend a cooperative or "piggyback" purchase on an awarded contract for services or equipment, entered into by other governmental agencies (municipality, county, state, or other agencies who conduct volume procurements on behalf of government agencies) through a competitive bid process, provided all products or equipment requested meet the technical specifications of the awarded bid.

(Ord. No. 4276, § 3, 1-6-2020)

The procurement officer may authorize emergency purchases free of all sections of this division upon showing by any agency or officer that the purchase required is for the immediate preservation of health, safety and welfare of the people; the purchase is for the immediate repair to existing city equipment which impacts ongoing city operations; or the purchase is for the protection of property; and that there is a present, immediate and existing emergency which could not reasonably be foreseen. The city manager, public works director, finance director, police chief, water resources director or procurement officer may authorize emergency purchases free of all sections of this division upon a local emergency being declared pursuant to section 14-76 of this code. Expenditures over $50,000.00 made under this section will be ratified by the city council at the earliest opportunity after the conclusion of the emergency. Every attempt should be made to obtain three quotes as outlined in the Procurement Policies and Procedures Manual.

(Ord. No. 4276, § 3, 1-6-2020)

The provisions of Government Code Section 4217.10 et. seq., authorizing renewable energy and energy efficient public works projects to be sole-sourced or procured through either formal or informal request for proposals following a public hearing process, including the adoption of specific findings concerning the projected energy cost savings, are hereby adopted and incorporated by reference as if fully set forth herein

(Ord. No. 4276, § 3, 1-6-2020)