Title 4 — REVENUE, FINANCE AND BUSINESS TAXES
Part 4 — AWARD OF CONTRACTS
San Jose Municipal Code · 2026-09 edition · updated 2026-09-29 · San Jose
4.12.310 - Award factors.¶
A.
The procurement authority shall award the contract in accordance with the award factors and respective weights outlined in the solicitation. The award decision shall be documented and available to public inspection.
B.
Award factors for formal bids.
Except for procurements that are authorized under Subsection B.2. below, purchases requiring formal bidding shall be awarded to the lowest responsible and responsive bidder after notice in accordance with Section 4.12.260. The low bidder shall be determined based on the lowest total cost to the city including, but not limited to, the effect of:
a.
Trade discounts;
b.
Shipping costs;
c.
Life cycle costs;
d.
Operating efficiency;
e.
Maintenance cost;
f.
Application of the preferences provided for in Section 4.12.320;
g.
If two or more bids received are for the same amount and are the lowest bids, the city may accept whichever one it chooses or have the award determined by lot.
If the procurement authority determines that it is in the best interest of the city to issue a solicitation for the procurement of goods or services of indefinite quantities and/or with indefinite delivery dates that requires formal bidding, the solicitation may allow for the award to multiple bidders in order of the lowest bids. When multiple awards have been made under such circumstances, then at the time that actual purchases are made, the choice between or among the selected bidders shall be based on consideration of factors, including but not limited to the following: (a) lowest total cost to the city, (b) availability, and (c) quality.
C.
Award factors for quotes and proposals.
Except for procurements authorized under Subsection C.3. below, purchases not requiring formal bidding shall be awarded to the bidder who has submitted the most advantageous quote or proposal in accordance with the applicable provisions of this chapter. In addition to the factors set out in Subsection B., the most advantageous quote or proposal shall be determined based on but not limited to:
a.
Quality;
b.
Capabilities and/or expertise of the bidder;
c.
Adherence to applicable city council policies;
d.
Ability of the bidder to provide future maintenance, repair parts and service;
e.
Application of the preferences provided for in Section 4.12.320.
Any one or more of the factors set out in Subsections B.1.a. through e., or Subsection C.1.d., may be excluded from a procurement if the factor or factors are clearly not applicable, at the discretion of the procurement authority. The procurement authority shall document the basis for its decision to exclude any of the factors.
If the procurement authority determines that it is in the best interest of the city, the solicitation for procurements of goods or services not requiring formal bidding may allow for the award to multiple bidders in order of the most advantageous quotes or proposals. When multiple awards have been made under such circumstances, then at the time that actual purchases are made, the choice between or among the selected bidders shall be based on consideration of factors, including but not limited to the following: (a) lowest total cost to the city, (b) availability, and (c) quality, capabilities and/or expertise.
(Ords. 27980, 28802.)
4.12.320 - Application of preference in award of contracts.¶
A.
Prior to the issuance of a solicitation, the procurement authority shall make a determination of whether price shall be the determinative factor in the award of the solicitation.
B.
For solicitations where price has been chosen as the determinative factor, the preferences granted under this chapter shall be applied as follows:
Bidders who qualify as a local business shall be given a credit of two and one-half (2.5) percent of the cost bid; and
Bidders who qualify as a small business shall be given a credit of two and one-half (2.5) percent of the cost bid.
C.
For solicitations where price has not been chosen as the determinative factor the preferences granted under this chapter shall be applied as follows:
Bidders who qualify as a local business enterprise shall be given a credit equal to five (5) percent of the total points used to determine the most advantageous quote or proposal.
Bidders who qualify as a small business enterprise shall be given a credit equal to five (5) percent of the total points used to determine the most advantageous quote or proposal.
(Ord. 27980.)
4.12.330 - Exceptions to the application of preferences.¶
Application of the preferences for local business enterprises and small business enterprises shall not be made in the following procurements:
A.
Procurements where legal constraints on the expenditure of funds prohibit the application of the preference.
B.
Grant programs.
(Ord. 27980.)
4.12.340 - Informalities or minor irregularities.¶
The city shall have the right to waive any informalities or minor irregularities in bids or bidding.
(Ord. 27980.)
4.12.350 - Rejection of responses.¶
The Procurement Authority may reject any or all responses received. If all responses are rejected, the Procurement Authority may in his or her discretion:
A.
Re-notice the solicitation; or
B.
Negotiate and execute with a vendor for the goods or services without further solicitation under the following circumstances:
For solicitations for contracts with a value greater than the Informal Procurement Threshold, upon approval of the City Council; or
For solicitations for contracts with a value less than or equal to the Informal Procurement Threshold, upon documentation of the reasons for such a decision and notice to all person(s) who submitted responses to the solicitation.
(Ords. 27980, 28802, 30955.)
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