Richmond Municipal Code Art. III Source Selection and Contract Formation

(a) "Established catalogue price" means the price included in a catalogue, price list, schedule, or other format that:

(1) Is regularly maintained by a manufacturer or supplier;

(2) Is either published or otherwise available for inspection by customers; and

(3) States prices at which sales are currently or were last made to a significant number of any categories of buyers, or buyers constituting the general buying public, for the supplies or services involved.

(b) "Invitation for bids" means all documents, whether attached or incorporated by reference, utilized for soliciting bids.

(c) "Purchase description" means the words used in a solicitation to describe the supplies or services to be purchased, and includes specifications attached to, or made a part of the solicitation.

(d) "Request for proposals" means all documents, whether attached or incorporated by reference, utilized for soliciting proposals.

(e) "Responsible bidder or offeror" means a person who has the capability in all respect to perform fully the contract requirements, and the integrity and reliability that shall assure good faith performance.

(f) "Responsive bidder or offeror" means a person who has submitted a bid or proposal that conforms in all material respects to the invitation for bids or request for proposals.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Unless otherwise authorized by law, all City contracts governed by this chapter shall be awarded by one of the following methods:

(1) Section 2.52.310, Competitive sealed bids;

(2) Section 2.52.315, Competitive sealed proposals;

(3) Section 2.52.320, Contracting for designated professional services;

(4) Section 2.52.324, Unsealed quotes and small purchases;

(5) Section 2.52.326, Sole source procurement;

(6) Section 2.52.328, Cooperative procurement;

(7) Section 2.52.330, Piggyback procurement;

(8) Section 2.52.332, Standardization;

(9) Section 2.52.334, Emergency procurement; or

(10) Section 2.52.335, Competitive negotiation for master development projects.

(Amended by Ordinance No. 54-06 N.S.; Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Conditions for Use. Contracts for the purchase of supplies and services of an aggregate annual value of $50,000.00 or more shall be awarded by compliance with the competitive sealed bidding procedures contained in this section, except when waived by the City Council as in the best interest of the City.

(b) Evasion of Ordinance is Prohibited. Orders for supplies and services 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) Letters of Intent Prohibited. For procurements exceeding $3,000.00, letters of intent shall not be issued before competitive quotes, bids, or proposals have been solicited and awarded in accordance with the provisions of this chapter.

(d) Competitive Sealed Bidding Process.

(1) Invitation For Bids and Notice To Contractors. An invitation for bids or notice to contractors shall be issued and shall include adequate specifications and all contractual terms and conditions applicable to the procurement.

(2) Adequate Number of Bidders Solicited. Invitation for bids or notice to contractors shall be distributed to a large enough group of potential suppliers and contractors, consistent with the size and nature of the purchase to obtain adequate competition. Where practicable, the Finance Director shall notify all suppliers and contractors on the City's centralized source selection database for the commodity or service to be purchased, and post a notification of the solicitation on the City's website.

(3) Public Notice. Adequate public notice of the solicitation shall be given at least 15 calendar days before the date set forth therein for the opening of bids. Such notice may include, but shall not be limited to, publication in a newspaper of general circulation, posting in a public place, and/or publication in electronic form including, but not limited to, publication on the City's website or other appropriate site on the Internet. Publication shall be made at least once not less than 15 calendar days before the date of the bid opening, unless otherwise prescribed by law. The public notice shall state the method of submission, either paper bids to the City Clerk's office or electronic bids through the City's electronic bidding system. The notice shall also state the place, date, and time of bid opening, provide a general description of the supplies or services to be purchased. Nothing in this chapter shall prohibit the use of electronic invitations for bids.

(4) Bid Opening. Paper Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids or notice to contractors. Electronic bid submission will remain unopened until the closing date and time. Said submission shall not be viewed by the public or City staff until the closing date and time. The amount of each bid, and such other relevant information as the City deems appropriate, together with the name of each bidder shall be recorded; the record and each bid shall be open to public inspection in accordance with state law.

(5) 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 or notice to contractors.

(6) Electronic Bids. The City shall provide a secure electronic interactive system to receive bids through electronic transmission that ensures the identification, security and confidentiality of electronic bids and ensure that the electronic bids remain effectively unopened until the proper time.

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

(8) Bid Acceptance. Bids received at or before the time set for bid opening shall be unconditionally accepted without alteration or correction, except as authorized in this chapter.

(9) Bid Evaluation. Bids shall be evaluated based on the requirements set forth in the invitation for bids or notice to contractors, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that shall affect the bid price and be considered in evaluation for award, such as discounts, transportation costs, and total or life cycle costs, shall be objectively measurable. The invitation or notice 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 or notice.

(10) Correction of Bids. Subject to any provisions of federal or state granting authorities to the contrary, correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, shall be in accordance with this section. Mistakes discovered before bid opening may be modified or withdrawn by written notice received in the office designated in the solicitation before the time set for bid opening. No corrections to bid prices or provisions prejudicial to the interest of the City or fair competition shall be permitted when mistakes are discovered after bid opening.

(11) Withdrawal of Bids. In lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if the mistake is clearly evident on the face of the bid document but the intended correct bid is not similarly evident; or the bidder submits evidence that clearly and convincingly demonstrates that a mistake was made.

(12) Written Determination Required. Except as otherwise provided by regulation, 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 Finance Director.

(13) Award. The contract shall be awarded in accordance with Section 2.52.344 (Award of contracts) by appropriate written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids.

(14) Two-Step Sealed Bidding. When it is considered impractical to prepare initially a purchase description to support an award based on price, a two-step bidding process may be used. A request for information may be issued requesting the submission of un-priced offers to be followed by an invitation for bids that is limited to those bidders whose offers were determined to be technically acceptable under the criteria set forth in the request for information. In addition, the first step may be used to pre-qualify suppliers or contractors for step two, in accordance with Section 2.52.355 (Pre-qualification of suppliers and contractors).

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Conditions for Use. Contracts for the purchase of supplies and services of an aggregate annual value exceeding $50,000.00 that are not awarded by compliance with the competitive sealed bidding procedures contained in Section 2.52.310 (Competitive sealed bids), or for which the City Council has not waived competitive sealed solicitations as in the best interest of the City, shall be awarded by compliance with the competitive sealed proposal procedures contained in this section, when the Finance Director determines that the use of competitive sealed bidding is either not practicable or not advantageous to the City.

(b) Evasion of Ordinance Prohibited. Orders for supplies and services shall not be split into smaller orders or projects or willfully mischaracterized or misclassified for purposes of evading the provisions of this section.

(c) Request for Proposals.

(1) Public Notice. Adequate public notice of the request for proposals shall be given in the same manner as provided in Section 2.52.310(d)(3) (Competitive sealed bids; competitive sealed bidding process; public notice); provided, the minimum time shall be 15 calendar days.

(2) Receipt of Proposals. Proposals shall be handled in a manner to avoid disclosure of contents 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 or service offered. The register of proposals shall be open for public inspection only after contract award.

(3) Evaluation Factors. The request for proposals shall state all factors to be used in evaluation of the proposals. No other factors or criteria shall be used in the evaluation.

(4) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the request for proposals, interviews may be conducted with responsible offerors whose proposals are responsive to the request for proposals, and determined to be reasonably susceptible of being selected for award, for the purpose of clarification to assure full understanding of, and conformance to, the solicitation requirements. Offerors who are interviewed shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and before award for obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.

(5) Award. Award shall be made in accordance with Section 2.52.344 (Award of contracts) 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 facts set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. Written notice of the award of a contract to the successful offeror shall be promptly given to all offerors.

(6) Correction or Withdrawal of Proposals. Correction or withdrawal of inadvertently erroneous proposals before or after award may be permitted as provided in Section 2.52.760 (Remedy before award) and Section 2.52.770 (Remedy after award).

(7) Two-Step Sealed Proposals. When it is considered impractical to prepare initially a purchase description to support an award, a two-step solicitation process may be used. A request for information may be issued requesting the submission of un-priced offers to be followed by a request for proposals that is limited to those bidders whose offers were determined to be technically acceptable under the criteria set forth in the request for information. In addition, the first step may be used to pre-qualify suppliers or contractors for step two, in accordance with Section 2.52.355 (Pre-qualification of suppliers and contractors).

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(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 such as accountants, architects, engineers and other licensed professionals, 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 Attorney, in accordance with Section 2.52.344 (Award of contracts) of this chapter.

(b) Selection Procedure.

(1) Conditions for Use. Any contract for designated professional services exceeding the amount fixed by the City Charter for City Council approval shall be made in accordance with the procedures authorized in this section. Services provided under Section 2.52.326 (Sole source procurement), or Section 2.52.334 (Emergency procurement) are exceptions to the requirements of this section.

(2) Request for Qualifications and Notice. Adequate notice of the need for the desired professional services shall be given by the City through a request for qualifications. The request for qualifications shall describe the services required, list the types of information and data required of each offeror, and state the relative importance of particular qualifications.

(3) Statement of Qualifications. Persons engaged in providing the designated types of professional services may submit statements of qualifications and expressions of interest in providing such professional services. The City Finance Director may specify a uniform format for statements of qualifications. Persons may amend these statements at any time by filing a new statement.

(4) Public Announcement and Form of Request For Proposals. Through a request for proposals, the Department Director or the Finance Director shall give adequate notice of the need for such services.

(5) Interviews. The Department Director requiring the professional services may conduct interviews with any offeror who has submitted a statement of qualifications for the purpose of ranking the qualifications of the offerors, based on the evaluation factors set forth in the request for qualifications. Interviews shall not disclose any information derived from statements submitted by other offerors.

(6) Award. Award shall be made to the offeror determined to be best qualified based on the evaluation factors set forth in the request for qualifications, and negotiation of compensation determined to be fair and reasonable. If compensation cannot be agreed upon with the best qualified offeror, then negotiations shall be terminated with that offeror. If statements were submitted by other offerors determined to be qualified, negotiations may be conducted in the order of their respective qualification ranking, and the contract may be awarded to the offeror then ranked best qualified if the amount of compensation is determined to be fair and reasonable.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Conditions for Use.

(1) General. Any contract less than $50,000.00 may be made in accordance with the procedures authorized in this section. Contract requirements shall not be artificially divided to constitute a small purchase under this section. Nothing in this chapter shall prohibit the City Manager from delegating authority to City departments for soliciting unsealed quotes and making small purchases.

(2) $5,000.00 to $49,999.99 — Three Unsealed Quotes. At least three written quotes shall be obtained for procurements costing from $5,000.00 to $49,999.99. Where only two written quotes could be obtained, the department soliciting the quotes must ensure that at least five businesses were solicited. All quotes must be submitted to the Finance Director with the names and telephone numbers of the businesses solicited, a bid summary of the names of the businesses that submitted quotes, and the date and amount of each quote. In addition, the original quotes shall be submitted to and maintained by the Finance Director as a public record.

(3) $3,000.00 to 4,999.99 — Two Unsealed Quotes. At least two written quotes shall be obtained for procurements costing from $3,000.00 to $4,999.99. All quotes shall be submitted to the Finance Director with a summary of the names of the businesses solicited, the businesses submitting quotations, and the date and amount of each quotation. In addition, the original quotes shall be submitted to and maintained by the Finance Director as a public record.

(4) Less than $3,000.00 — Small Purchases. At least one written quote shall be obtained for procurements costing less than $3,000.00. Small purchases may be made without competition and by any methods determined by the Finance Director to be reasonable and cost effective methods for making such purchases. The Finance Director shall adopt operational regulations and procedures for making small purchases. Such operational procedures shall provide for maintaining adequate records of all small purchases, properly account for the funds expended, and facilitate an audit of the small purchases made.

(b) Definition of Written Quote. As used in this section, in addition to a typed or handwritten paper document, a "written quote" may mean a quote submitted by facsimile or electronic transmission via the Internet and printed on an office printer.

(c) Award. Quotes shall be awarded in accordance with Section 2.52.344 (Award of contracts). Small purchases may be made by procedures established by the Finance Director.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

A contract may be awarded without competition when the City determines in writing, after conducting a good faith review of available sources, that there is only one source for the required goods or service. In the case of contracts less than $10,000.00, this determination shall be made by the City Manager and, in the case of contracts in the amount of $10,000.00 or more, this determination shall be made by the City Council. The City Manager shall conduct negotiations, as appropriate, as to price, delivery, and terms. A written statement of the basis for the sole source determination shall be placed in the contract file. A record of sole source procurements shall be maintained as a public record for purchases of supplies or services exceeding the amount fixed for solicitation of unsealed quotes.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) General. The Finance Director may arrange for the City to enter an agreement with one or more local, city, county, state, federal, or other public entity, school district, League of California Cities, California Communities Program, or other nonprofit association or group consisting of governmental entities, in order to cooperatively purchase supplies and services, including but not limited to materials, equipment, vehicles, and apparatus provided that:

(1) The purchase contract with the supplier(s) is the result of negotiation or competitive bidding 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; and

(4) The Purchasing Manager determines that participation in a cooperative agreement is in the City's best interest because an unusual or unique situation exists that makes a cooperative agreement more advantageous than the application of the City's requirements of competitive sealed bidding and competitive sealed proposals.

(b) Contract Approval. The City Council shall approval contracts in excess of $10,000.00, and the City Manager shall approve contracts of $10,000.00 or less.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Scope. The Finance Director may arrange for the City to enter purchase contracts with a supplier or contractor for the purchase of supplies and services, including but not limited to materials, equipment, vehicles, and apparatus, the pricing and terms of which have been previously established by another public agency (city, state, federal, school district, or other public entity, League of California Cities, California Communities Program, or other nonprofit association or group consisting of governmental entities), provided that:

(1) The Purchasing Manager determines that a "piggyback" purchase is in the City's best interest because an unusual or unique situation exists that makes the application of the City's requirements of competitive sealed bidding and competitive sealed proposals contrary to the public interest.

(2) The purchase request has been reviewed by the Finance Director and it has been determined there are no local suppliers or contractors who could provide the product or service at competitive rates;

(3) A copy of the solicitation has been obtained from the originating agency and reviewed for compliance with the City's purchasing ordinance;

(4) A written documentation has been made of a thorough investigation of the current market and determination that the originating agency's' solicitation is the most advantageous;

(5) The specifications of the item or service required by the City are not materially different from those originally specified in the originating agency's solicitation;

(6) The price of the purchase is lower than that estimated for the purchase if made directly by the City pursuant to this chapter;

(7) The price of the purchase is within 15 percent or $2,500.00 of the originating agency's solicitation;

(8) The contract resulting from the original solicitation is current or the solicitation is within 36 months from the date of the City's order, or written justification is provided justifying use of an older solicitation; and

(9) The City enters a separate contract with the vendor selected by the originating agency, and incorporates by reference the original solicitation, terms, conditions, and prices.

(b) Contract Approval. The City Council shall approve contracts in excess of $10,000.00, and the City Manager shall approve contracts of $10,000.00 or less.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Uniform Adoption of Standards. When supplies or services have been uniformly adopted or otherwise standardized, or when an item is designated to match others in use by the City, the provisions of this section apply.

(b) Standards Committee. The Purchasing Manager may organize "Standards Committees" as needed to establish standards with respect to the type, design, quality, or brand of a certain article or group of related articles or services purchased by the City. The membership of the committee shall be the Finance Director, who shall be chairperson, the heads of each City office, agency, or department that is a primary user of the item or group of items for which the committee was appointed. Any members may appoint representatives who shall be authorized to act in their place for purposes of this section. Any member of the committee may act through a representative appointed by him/her.

(c) Available Competition. When there is more than one distributor or contractor for the standardized supply or service, competition may be limited to known suppliers, provided that such competition is made by the Finance Director in accordance with Sections 2.52.310 (Competitive sealed bids), 2.52.315 (Competitive sealed proposals), and 2.52.324 (Unsealed quotes and small purchases).

(d) Approval. The Standards Committee shall submit its recommendations to standardize particular supplies or services to the authority that would ultimately approve the purchase of such supplies and services, in accordance with Section 2.52.332 (Standardization) of this chapter.

(e) Negotiations. A contract may be awarded without competition when the Finance Director determines in writing after conducting a good faith review of available sources that there is only one source for the standardized required supply or service. The Finance Director should conduct negotiations, as appropriate, as to price, delivery, and terms.

(f) Award. Award shall be made in accordance with Section 2.52.344 (Award of contracts).

(g) Records. The Finance Director shall maintain a record of standardized procurements for purchases of supplies or services exceeding the amount fixed by City Council for solicitation of unsealed quotes.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

Notwithstanding any other provisions of this chapter, the City Manager may make or authorize others to make emergency procurements of supplies and services 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. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. The City Council shall approval contracts in excess of $10,000.00, and the City Manager shall approve contracts of $10,000.00 or less.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Notwithstanding any other provisions of this chapter, the City Council may enter into contracts in connection with a master development project without complying with the other provisions of this chapter and on any basis the City Council approves; provided, that the City Council, prior to entering into any final contract for all or any portion of the master development project which binds the City to pay the contractor for the project (other than for preliminary design or feasibility studies or similar work necessary to complete negotiations on the contract), makes the following finding findings by resolution:

(1) The project is a master development project within the meaning of Section 2.52.100;

(2) The City will achieve cost savings (including without limitation savings in City staff time) and savings in the time required to implement the project by proceeding under this section and by entering into contracts with a single contractor pursuant to direct negotiations with such contractor rather than through a sealed-bid or similar process otherwise proscribed by this chapter;

(3) The City, after adequate public notice, has conducted a competitive selection process with respect to the master development project, prior to commencing negotiations of the contract, including without limitation a solicitation of requests for proposals or requests for qualifications, which was open to any qualified firm or group of firms, and which was publicly advertised in a manner designed to attract the attention of qualified firms or groups of firms, including firms or groups of firms located in Richmond; and

(4) The City Council approved the selection of the parties to the contract after evaluating the results of the competitive selection process.

The findings of the City Council pursuant to this section shall be final and conclusive.

(Added by Ordinance No. 54-06 N.S.; Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) An invitation for bids, a request for proposals, or other solicitation may be canceled, or any and 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. The reasons therefore shall be made part of the contract file.

(b) Each solicitation issued by the City shall state that the solicitation may be cancelled and that any bid or proposal may be rejected in whole or in part for good cause when in the best interests of the City. Notice of cancellation shall be sent to all businesses solicited. The notice shall identify the solicitation, explain the reason for cancellation, and, where appropriate, explain that an opportunity shall be given to compete on any re-solicitation or any future procurement of similar items.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

Security and performance bonds or other such security may be requested for supply or service solicitations and contracts as the City Attorney deems advisable to protect the City's interests. All bond requirements shall be set forth in the solicitation. Bid or performance bonds shall not be used as a substitute for a determination of a bidder's or an offeror's responsibility.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

Each solicitation issued by the City shall require that a signed certificate of non-collusion be submitted with each sealed bid or proposal. The City shall have the authority to seek criminal and civil penalties, debarment, and other remedies for unlawful collusive bidding.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) General. All contracts resulting from Sections 2.52.310 (Competitive sealed bids), 2.52.315 (competitive sealed proposals), 2.52.320 (Contracting for designated professional services), 2.52.324 (Unsealed quotes and small purchases), 2.52.326 (Sole source procurement), 2.52.328 (Cooperative procurement), 2.52.330 (Piggyback procurement), 2.52.332 (Standardization), and 2.52.334 (Emergency procurement), shall be awarded as follows:

(1) Award by City Council. Pursuant to City Charter Section 7, purchases exceeding $10,000.00 shall be awarded by the City Council. The Finance Director or responsible department head shall make the recommendations for award. The Mayor shall execute contracts awarded by the City Council.

(2) Award by City Manager. Pursuant to City Charter Section 7, purchases of $10,000.00 or less may be awarded by the City Manager, who may execute contracts and other necessary related documents on behalf of the City for purchases within his or her awarding authority.

(3) Authorization to Negotiate Low Bid to Within Available Funds. In the event the lowest responsive and responsible bid for a project exceeds available funds as certified by the Finance Director, and such bid does not exceed such funds by more than ten percent, the Finance Director 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 or request for proposals.

(b) Preference for Recycled Products. The City shall consider the following preferences in determining the lowest price(s) for products containing recycled materials; these preferences are not cumulative:

(1) Total aggregate purchase of $10,000.00 or less. The City shall consider an eight percent preference for products containing 30 percent or more post-consumer recycled content.

(2) Total aggregate purchase of $5,000.00 or less. The City shall consider a ten percent preference for products containing 30 percent or more post-consumer recycled content.

(3) Total aggregate purchase of $1,000.00 or less. The City shall consider a ten percent preference for products containing 30 percent or more post-consumer recycled content.

(4) Exemptions. Procurements made with federal or state grant funds; and procurements made in accordance with Sections 2.52.320 (Contracting for designated professional services), 2.52.326 (Sole source procurement), 2.52.328 (Cooperative procurement), 2.52.334 (Emergency procurement), 2.52.330 (Piggyback procurement), and 2.52.332 (Standardization) are exempt from the requirements of this section.

(c) Award of Tie Bids. If two or more bids are the same and the lowest, the City shall accept that of the local bidder, if there is one; otherwise, it may accept the one it chooses.

(d) No Bids Received. If no bids are received through the sealed or unsealed procedure, the project may be performed by the employees of the public agency by force account, or negotiated contract without further complying with these procedures.

(Ord. No. 9-15 N.S., § I, 3-3-2015; Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Rejection of Bids. In its discretion, the City may reject any bids presented. If after the first invitation for bids, all are rejected, after reevaluating its cost estimates of the project the City shall have the option of either of the following:

(1) Abandon the Project. Abandoning the project or re-advertising for bids in the manner described in this chapter.

(2) Perform Project by Force Account. By passage of a resolution by a four-fifths vote of the City Council declaring that the employees of the City can perform the project more economically, the City may have the project done by force account.

(b) Waiver of Irregularities and Mistakes. The City shall have the authority to waive minor irregularities and mistakes in bids.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Determination of Non-Responsibility. If a bidder or offeror who otherwise would have been awarded a contract is found non-responsible, the Finance Director 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 or confidential information furnished by a bidder or offeror pursuant to this section and appropriately labeled, shall not be disclosed by the City outside of the office of the Finance Director without prior written consent by the bidder or offeror.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

Prospective suppliers and contractors may be pre-qualified for particular types of supplies or services. The method of submitting pre-qualification information and the information required in order to be pre-qualified shall be determined by the Finance Director and disclosed to potential bidders or offerors in the solicitation. Pre-qualification may be accomplished as Step 1 of a two-step solicitation.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) General. The Finance Director may request information reasonably available to the bidders or offerors to substantiate that the prices or costs offered, or some portion of them, is reasonable if the prices are not:

(1) Based on adequate price competition, or

(2) Based on established catalogue or market prices, or

(3) Set by law or regulation; or

(4) If the price or cost exceeds an amount established by regulation. The Finance Director may request factual information reasonably available to the bidder or offeror to substantiate that the price or cost offered, or some portion of it, is reasonable for 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 $100,000.00. Anytime one or more change orders or contract modifications increase or decrease the total aggregate amount of the order by $10,000.00 or more, the change shall require the approval of City Council.

(b) Certification Required. The Finance Director may require contractors, actual or prospective, to submit cost or pricing data in accordance with this section, and 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. No. 14-20 N.S., § I, 6-30-2020)

(a) General. Subject to the limitations of this section, any type of contract which is appropriate to the procurement and which shall promote the best interests of the City may be used; with the exception of the cost-plus-percentage-of-cost contract which is prohibited. A cost reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the City than any other type or that it is impracticable to obtain the supplies or services required except under such a contract.

(b) Approval of Accounting System. Regulations may be issued by the Finance Director requiring that contractors submit appropriate documentation prior to the award of contracts in which the City agrees to reimburse costs, confirming that:

(1) The proposed contractor's accounting system shall permit timely development of all necessary cost data in the form required by the specific contract type contemplated; and

(2) The proposed contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Conditions for Use. A multi-year contract is authorized where:

(1) Estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(2) Such a contract shall serve the best interests of the City by encouraging effective competition or otherwise promoting economies in City procurement.

(3) The City should be able to obtain favorable price decreases due to quantity discounts, long-term contracts, and/or discounts from identifiable market indexes.

(4) There are clearly identifiable starting and completion dates of the contract.

(b) Specified Period. Unless otherwise provided by law, a contract for supplies or services may be entered for a range of one (1) to three (3) years, with up to two (2) additional one (1) year extensions at the mutual option of the parties if it is deemed to be in the best interests of the City, provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefore.

(c) Extension Prices Approved With Original Contract. Contract extension pricing parameters shall be included and evaluated during the original contractor selection to ensure a competitive price.

(d) Conditions for Extension. Contract extensions shall be evaluated during contract selection, and allowed only when:

(1) Authorized by the awarding authority of the original contract

(2) Written justification indicates it is more advantageous to the City to extend the contract than to solicit new bids or proposals, and

(3) The extension contains a provision for 30-day termination by the City without cause.

(e) Cancellation due to unavailability of funds in succeeding fiscal periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be cancelled and the contractor shall be reimbursed for the reasonable value of any non-recurring costs incurred but not amortized in the price of the supplies or services delivered under the contract. The cost of cancellation may be paid from any appropriation available for such purposes.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

The City, may, at reasonable times, inspect the part of the plant or place of business of a contractor or any subcontractor that is related to the performance of any contract awarded or to be awarded by the City.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Audit of Cost or Pricing Data. The City may, at reasonable times and places, audit the books and records of any person who has submitted data in substantiation of offered prices pursuant to Section 2.52.360 (Substantiation of offered prices) to the extent that such books and records relate to that data. Any person who receives a contract, change order, or contract modification for which such data is required, shall maintain such books and records that relate to such cost or pricing data for three years from the date of final payment under the contract, unless a shelter period is otherwise authorized in writing.

(b) Contract Audit. The City shall be entitled to audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract other than a firm fixed-price contract to the extent that such books and records relate to the performance of such contract or subcontract. The contractor shall maintain such books and records for a period of three years from the date of final payment under the prime contract and by the subcontractor for a period of [three] years from the date of final payment under the subcontract, unless a shorter period is otherwise authorized in writing.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

All contracts resulting from the sections listed below are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law.

2.52.310 Competitive sealed bids.

2.52.315 Competitive sealed proposals.

2.52.320 Contracting for designated professional services.

2.52.324 Unsealed quotes and small purchases.

2.52.326 Sole source procurement.

2.52.328 Cooperative procurement.

2.52.330 Piggyback procurement.

2.52.332 Standardization.

2.52.334 Emergency procurement.

2.52.335 Competitive master development projects.

(Amended by Ordinance No. 54-06 N.S.; Ord. No. 14-20 N.S., § I, 6-30-2020)

When for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors, the Finance Director or City Attorney shall notify the City Manager of the relevant facts.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

(a) Content of Record. The Finance Director shall maintain written records of all contracts made under Sections 2.52.326 (Sole source procurement) and 2.52.334 (Emergency procurement) for a minimum of five years. The records shall contain:

(1) Each supplier's or contractor's name;

(2) The amount and type of each contract; and

(3) A listing of the supplies or services procured under each contract.

(Ord. No. 14-20 N.S., § I, 6-30-2020)

All procurement records shall be retained and disposed of in accordance with records retention guidelines and schedules approved by the City Attorney. The Finance Director shall file such records with their corresponding procurement documents.

(Ord. No. 14-20 N.S., § I, 6-30-2020)