San Diego Municipal Code Div. 31 Public Works Contracts

(“Public Works Contracts” added 6–29–1998 by O–18532 N.S.)

This Division establishes requirements and procedures for the award of public works contracts and related matters regarding public works projects. (Amended 9–3–2002 by O–19095 N.S.) (Amended 4-23-2012 by O-20148 N.S.; effective 5-23-2012.) (Amended 12-16-2016 by O-20764 N.S.; effective 1-15-2017.)

(a) Except as otherwise provided in this Article, the City Manager may award a major public works contract that provides for an expenditure of an amount equal to or less than $30,000,000 without City Council approval, provided that: (1) The public works project was previously identified and appropriated through the Annual Capital Improvements Program budget adopted by City Council or identified in a City Council resolution establishing an Underground Utility District;

(2) The major public works contract has been advertised as described in
section 22.3106 or has been certified by the City Manager as a sole
source contract in accordance with section 22.3016; and
(3) The major public works contract is in writing.

(b) Notwithstanding section 22.3102(a), when the Annual Capital Improvements
Program budget is approved, the City Council may, by resolution, require
certain major public works contracts for projects in the budget be returned to
City Council for approval prior to award.

(c) Notwithstanding section 22.3102(a), when a resolution establishing an
Underground Utility District is adopted, the City Council may, in that
resolution, require certain major public works contracts for projects in that
Underground Utility District be returned to City Council for approval prior to
award.

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(d) The City Manager may award minor public works contracts without City
Council approval pursuant to Chapter 2, Article 2, Division 36 of the
Municipal Code.

(e) Except as otherwise provided in this Article, the award of all other major
public works contracts must be approved by the City Council.
(“Public Works Contracts Required to be Competitively Awarded” retitled to “When
Major Public Works Contracts May be Awarded by City Manager” and amended
9-3–2002 by O–19095 N.S.)
(Amended 1/24/2005 by O-19353 N.S.)
(Retitled to “City Manager’s Authority to Award Public Works Contracts” and
amended 4-23-2012 by O-20148 N.S.; effective 5-23-2012.)
(Amended 10-12-2022 by O-21537 N.S.; effective 11-11-2022.)

(a) Job order contracts for public works may be awarded by the City Manager provided that:

(1) The specifications were advertised in accordance with

(2) The specifications provided for sealed competitive bidding on unit- cost terms for all labor, material, and equipment necessary to perform all work contemplated for individual task orders.

(3) The period for award of task orders under job order contracts shall not
exceed three years. Job order contracts may have a duration of longer
than three years only as necessary to complete outstanding task orders
and task order modifications that were awarded within the three-year
period.

(4) The job order contract does not contain any provision which would
guarantee the contractor cumulative task orders in excess of $50,000.

(b) A job order contract may not exceed $30,000,000 without City Council
approval.

(“General Requirements Contracts” added 6–29–1998 by O–18532 N.S.)
(Retitled to “City Manager’s Authority to Award Job Order Contracts” and amended
4-23-2012 by O-20148 N.S.; effective 5-23-2012.)
(Amended 12-9-2013 by O-20325 N.S.; effective 1-8-2014.)
(Amended 10-12-2022 by O-21537 N.S.; effective 11-11-2022.)

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(a) Except for emergency work under section 22.3108(a), a task order shall not exceed $5,000,000 without City Council approval.

(b) A task order modification shall not exceed $500,000 without City Council
approval.

(c) The City Manager shall not subdivide any public work into separate task
orders or task order modifications which logically should be performed as a
single transaction with the intent of avoiding the limits in sections 22.3104(a)
and 22.3104(b).
(“Task Orders” added 6–29–1998 by O–18532 N.S.)
(Retitled to “City Manager’s Authority to Award Task Orders Under Job Order
Contracts” and amended 4-23-2012 by O-20148 N.S.; effective 5-23-2012.)
(Amended 12-9-2013 by O-20325 N.S.; effective 1-8-2014.)
(Amended 10-12-2022 by O-21537 N.S.; effective 11-11-2022.)

(a) City forces shall not be used on a public works project if the cost of using City forces exceeds $500,000 unless the City Council has approved use of City forces on the project. When City Council approval is required, the City Manager shall indicate justification for the use of City forces and shall indicate whether the work can be done by City forces more economically than if let by contract.

(b) The City Manager may exercise the City Manager’s discretion of the use of
City forces on a public works project when the cost of using City forces does
not exceed $500,000.
(“Use of City Forces” added 6–29–1998 by O–18532 N.S.)
(Amended 4-23-2012 by O-20148 N.S.; effective 5-23-2012.)
(Amended 10-12-2022 by O-21537 N.S.; effective 11-11-2022.)

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(a) Major public works contracts shall be advertised for a minimum of one day in the City official newspaper at least ten days before the deadline to submit bids or proposals.

(b) The City Manager may award minor public works contracts without
advertising. In lieu of advertising, the City Manager shall follow procedures
set forth in Chapter 2, Article 2, Division 36 of the Municipal Code.
(“Advertising of Public Works Contracts” added 4-23-2012 by O-20148 N.S.;
effective 5-23-2012.)

(a) Major public works contracts of $1,500,000 or more shall be awarded through a competitive process according to the project delivery method:

(1) Design-build contracts shall be awarded pursuant to Chapter 2, Article
2, Division 33 or 34 of the Municipal Code.

(2) Job order contracts shall be awarded to the responsible and reliable
bidder with the lowest total unit cost.

(3) Construction manager at risk contracts shall be awarded pursuant to
Chapter 2, Article 2, Division 38 of the Municipal Code.

(4) All other major public works contracts of $1,500,000 or more shall be
awarded to the lowest responsible and reliable bidder.

(b) Major public works contracts of more than $1,000,000 and less than
$1,500,000 shall be awarded through a competitive process pursuant to
Section 22.3107(a), except that the City Manager may include a bid discount
pursuant to Chapter 2, Article 2, Division 36 of the Municipal Code.

(c) Minor public works contracts shall be awarded through a competitive process
pursuant to Chapter 2, Article 2, Division 36 of the Municipal Code.
(“Award of Public Works Contracts” added 4-23-2012 by O-20148 N.S.; effective
5-23-2012.)
(Amended 8-10-2022 by O-21516 N.S.; effective 9-9-2022.)

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Contracts

(a) Unless otherwise authorized by Section 22.3614, public works contracts may
be awarded by the City Manager without advertisement and competition when
the public interest or necessity demands the immediate expenditure of public
money to safeguard life, health or property due to extraordinary fire, flood, storm,
epidemic or other disaster, provided that:

(1) The City Manager immediately reports the emergency award and its
justifications to the City Council in writing; and

(2) The City Council ratifies the award by resolution and by a two-thirds
vote.

(b) Public works contracts may be awarded by the City Manager without
advertisement and competition if the City Manager certifies a sole source
contract is necessary pursuant to Section 22.3016. If the justification of the
sole source contract is the emergency nature of the project, the City Manager
shall notify the City Council and obtain the City Council’s approval pursuant
to Section 22.3108(a).
(“Exceptions to Advertisement and Competitive Award of Public Works Contracts”
added 4-23-2012 by O-20148 N.S.; effective 5-23-2012.)

(a) The City Manager shall post a list of all City public works projects over $250,000 on the City’s website. The list shall include, at a minimum:

(1) The name and location of each project;

(2) The type of facility involved;

(3) The estimated cost of the project;

(4) The estimated start and completion dates; and

(5) The level of participation by Small Local Business Enterprises, as
defined in Section 22.3603.

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(b) The City Manager shall post this list on the City’s website by July 1, 2012, or
the effective date of this Section, whichever occurs later, and shall ensure the
list remains current.

(c) The City Manager may post additional information not required by this
Section or Council Policy.
(“Public Information on Public Works Projects” added 4-23-2012 by O-20148 N.S.;
effective 5-23-2012.)

(a) Notwithstanding any other provision of this Code, the City Manager may acquire interests in real property necessary for the construction, reconstruction, repair, operation, or maintenance of City facilities without City Council approval, provided that:

(1) For projects previously identified and appropriated through the Annual
Capital Improvements Program budget, sufficient funds are available
in the approved project budget to acquire the property interests.

(2) For projects that are not identified and appropriated through the
Annual Capital Improvements Program budget but are related to
existing City facilities, the cost of the property interests being acquired
does not exceed $250,000 per parcel.

(b) This section does not apply to acquisition of interests in real property by
eminent domain.
(“Acquisition of Interests in Real Property” added 12-16-2016 by O-20764 N.S.;
effective 1-15-2017.)

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Article 2: Administrative Code