San Jose Municipal Code Part 3 Procurement Procedures

The City shall, where practicable, engage in competitive procurement. The Procurement Authority shall use the following methods of procurement under the circumstances described below:

A. Purchases with an estimated value less than or equal to the Competitive Procurement Threshold may be made without a competitive procurement method.

B. Request for quotes process shall be used for purchases with an estimated value greater than the Competitive Procurement Threshold but less than or equal to the Informal Procurement Threshold.

C. Request for proposal process shall be used for purchases of services with an estimated value greater than the Informal Procurement Threshold.

D. Formal bidding process shall be used for purchases of supplies, materials, and equipment with an estimated value greater than the Informal Procurement Threshold, or for services when the Director determines that it is in the best interest of the City to do so.

(Ords. 27980, 28802, 30955.)

The city is not required to engage in competitive procurement under the following circumstances:

A. Emergency purchases pursuant to Section 4.12.220

B. Public agencies purchases pursuant to Section 4.12.225.

C. Sole source purchases pursuant to Section 4.12.230.

D. Unique services purchases pursuant to Section 4.12.235.

(Ord. 27980.)

In case of a public emergency involving the threatening of lives, property or welfare of the people of the city or the property of the city, the procurement authority may purchase supplies, materials or equipment without a competitive procurement, and may contract for services which the procurement authority deems necessary for the purpose of meeting such emergency. Contracts having a value over limits set forth in Chapter 4.04 entered into under this section shall be presented to city council for ratification at the next possible meeting after the occurrence of the emergency.

For the purpose of meeting such emergency, the procurement authority may expend any unencumbered moneys in the emergency reserve fund, notwithstanding the fact that such moneys may not have been appropriated for such purpose, to the extent that other moneys have not been appropriated or are otherwise unavailable therefor.

(Ord. 27980.)

The Procurement Authority may, without observing the competitive procurement requirements prescribed by this Chapter:

A. Purchase or acquire any supplies, materials or equipment or services from any public or governmental body or agency; or

B. Contract with any "public agency" (as said term is defined in subsection (b) of Section 800 of the Charter) for the purchase or acquisition by such public agency for or on behalf of the City of any supplies, materials or equipment or services under the following circumstances:

1. Agreements for the purchase of supplies, materials or equipment or services directly from another public agency; or

2. Joint purchasing agreements entered into by the City and one or more public agencies wherein the City is included as a potential purchaser under a competitive procurement process engaged in pursuant to the joint agreement; or

3. Direct purchases from vendors on terms obtained pursuant to competitive procurement processes undertaken by another public agency which:

a. Substantially comply with the City's procurement procedures; and.

b. Give notice to the bidders that the procurement may be leveraged by other public agencies, which is satisfied if either the solicitation documents or the executed contract resulting from the procurement includes language allowing other entities to use said procurement, procedure, or contract.

For the purposes of the first sentence of this subsection B.3. only, the term "public agency" shall also include any nonprofit organization made up of at least one or more public agencies in California or elsewhere, which nonprofit organization has been approved by the Director for the conduct of competitive procurements.

(Ords. 27980, 28802, 30955.)

The procurement authority may make purchases of such supplies materials or equipment which can be obtained from only one (1) vendor or manufacturer.

(Ord. 27980.)

The procurement authority may initiate a procurement for unique professional or other services where the procurement authority determines that an unusual or unique situation exists that make the application of the requirements for competitive procurement of a services agreement contrary to the public interest. Any special procurement under this section shall be made with such competition as is practicable under the circumstance. A written determination of the basis for the procurement and for the selection of the particular contractor shall be included by the Procurement authority in the department files.

(Ord. 27980.)

A. Except as provided in Subsection B. below, no specifications for the procurement of supplies, materials or equipment shall be written in a manner that limits the purchase to a single manufacturer or brand name product. A specification may contain a brand name if the specification is followed by the words "or equal" under circumstances where it is reasonably possible for equivalency to be demonstrated.

B. The provisions of Subsection A. shall not apply if the director has determined in writing, with specific findings therefor, that a particular product may be specifically designated by reason of one (1) or more of the following purposes:

1. In order to acquire a specific product(s) for the purpose of conducting a field test or experiment to determine the product's suitability for use by the city.

2. When it is required for proper operation or function to match other products with respect to the repair or expansion or completion of a system or program already in use by the city, including, but not limited to, technology purchases required to achieve interoperability with existing hardware, software, systems or programs.

3. In order to obtain a necessary item that is available only from one (1) source and which is purchased in accordance with Section 4.12.230 of this Code.

4. In order to make an emergency purchase pursuant to Section 4.12.220 of this Code.

5. In order to achieve significant cost savings based upon consideration of the following cost factors:

a. Timeliness and quality of installation, repair and maintenance;

b. Quality of user training;

c. Supplies and replacement parts;

d. Modification of existing equipment, materials or systems;

e. Future upgrades and updates;

f. Estimated amount and cost of reasonably foreseeable future purchases of equipment that would be required to be compatible or functional with the product which is the subject of the standardization determination.

g. Administrative costs.

C. The director's written decision shall state the facts reviewed in arriving at the decision, the reasons for the decision, the period of time for which it is valid for making purchases and under what conditions it must be reviewed for possible revision. A copy of the director's decision shall be attached to any report to the city council seeking approval of a purchase under this section.

D. Nothing in this section shall prohibit the inclusion in specifications of an industry standard with regard to performance that can be met by more than one product or manufacturer.

E. Purchases of equipment, materials or supplies shall not be segregated or conducted in any manner for the purpose of avoiding the requirements of this section.

F. The director shall establish written administrative procedures to carry out the provisions of this section.

(Ord. 27980.)

A. Any reference to a specific brand name followed by the term "or equal" in specifications is illustrative only. A reference to a brand name or equal describes a component best meeting the specific operational, design, performance, maintenance, quality, and reliability requirements of the city.

B. A bidder may offer an equivalent ("or equal") in response to a brand name or equal reference. When an "or equal" is offered, the city may test and evaluate the product prior to award of the contract.

C. At bidder's expense, bidder bears sole responsibility for providing any information, test data or document required by the city to fully evaluate the acceptability of the "or equal." at bidder's expense, this full evaluation may require independent testing, including destructive testing, at qualified test facilities.

D. If the city rejects a response or part of a response containing any "or equal," the director shall determine the decision in writing.

(Ord. 27980.)

A. The director is authorized to require vendors to provide insurance and surety bonds for contracts. Where required, the bidder shall submit insurance or surety bonds, or both, acceptable to the city.

B. All responses to solicitations shall include such bidders' security as is required by the solicitation documents and shall be presented under sealed cover. If the successful bidder fails to execute the contract within the time specified in the notice inviting bids or in the specifications referred to therein, the bidders' security may be declared forfeited by the director to the city, and any bonds so forfeited may be prosecuted and collected and the amount of the security paid into the general fund. Unsuccessful bidders shall be entitled to return of their bidders' security. The form and amount of such security shall be described in the notice inviting responses or in the specifications referred to therein.

C. To secure faithful performance of the contract, the director is authorized to require security in the form of cash, cashier's check, certified checks, or corporate faithful performance bonds, in such amount as the director shall deem reasonably necessary to protect the best interests of the city. If the director requires such security, the form and amount thereof shall be described in the notice inviting responses or in the specifications referred to therein. The director need not require such security if the director does not deem such to be reasonably necessary to protect the best interest of the city, or if the director believes the interests of the city are best served by not requiring the same.

(Ord. 27980.)

A. Notices inviting response to city solicitations shall include a general description of items or services to be purchased and shall identify the place where the proposal form, specifications and other contract documents may be obtained, and the time and place where responses will be received and where bids will be opened, if applicable.

B. The notice inviting responses to bids or requests for proposals shall be published in one (1) or both of the following manners:

1. In a newspaper of general circulation in the city, at least once, not less than at least ten (10) days before the date set for opening bids; or

2. As a posting on the city's web site on a web page designated for such postings for a period of time which the procuring authority deems reasonable.

C. Responses to requests for quotes may be solicited by any reasonable means including but not limited to mail, telephone, fax, e-mail or posting on the city's web on a web page designated for such postings.

(Ord. 27980.)

A. Sealed bids shall be submitted to the office of the purchasing division at the time specified in the procurement notice. At the time and place prescribed in the said notice, the director or the director's authorized representative shall publicly open said bids and declare the aggregate bid of each bidder. The director shall examine the bids and prepare a written report and recommendation.

B. The use of electronic media is authorized for the formal bidding process, including without limitation submission, opening and reporting of bids electronically, provided that such use shall be governed by an administrative procedure promulgated by the director. The administrative procedure shall include measures as the director deems appropriate for security of the bidding, approval and award processes and accurate retrieval or conversion of electronic information into a medium which permits inspection and copying.

C. When the director finds it to be in the best interest of the city based on the circumstances of the particular procurement, the director, in the director's discretion, may procure by reverse auction purchases of goods requiring formal bidding, which goods are readily available in the marketplace, highly standardized, and can be supplied by a reasonable number of qualified competitors. "Reverse auction" means an internet-based process in which vendors compete to obtain business, the identity of vendors submitting bids but not the amount of the bids remains sealed during the time allotted for the auction, and vendors may submit successively lower bids, with the goal that bids submitted by vendors will decrease over the time allotted for the auction.

(Ords. 27980, 28802.)