San Luis Obispo Municipal Code Art. III Formal Contract Procedure

Except as otherwise provided in this chapter, purchases and contracts for supplies, services, equipment and construction projects, which are equal to or in excess of the bid requirement amount specified by council resolution, shall be by written contract with the lowest responsible bidder pursuant to the procedures prescribed in this article. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.1)

As provided in Section 901(E) of the Charter, the city may perform maintenance-related construction projects for repair, remodeling or other repetitive work under a unit-price contract for all necessary labor, materials and equipment, subject to the following conditions:

A. Such contracts are secured on a competitive basis in accordance with the procedures set forth in this article;

B. No new construction will be performed under such contracts;

C. The specifications for such contracts provide for unit-price terms for all work that will typically be performed under individual task orders;

D. The specifications for such contracts establish any limits on the amount of individual task orders to be issued under the contract; or on any minimum or maximum cumulative amounts of task orders to be issued under the contract;

E. The council will specify limits on the authority to approve individual task orders by resolution. (Ord. 1435 § 1, 2003)

A. Notices inviting bids shall include, but not be limited to, the following:

1. A general description of the item(s) or service(s) to be purchased, or the public work to be constructed or improved;

2. The location where bid blanks and specifications may be secured;

3. The time and place assigned for the opening of sealed bids;

4. The type and character of bidder’s security required, if any; and

5. The location and deadline for submission of bids.

B. Notices inviting bids shall be made as follows:

1. For supplies, services and equipment, notices inviting bids shall be published at least once in the official newspaper of the city, with the first publication occurring at least ten calendar days before the date of opening the bids.

2. For construction projects below an amount specified by council resolution, notices inviting bids shall be mailed to a list of qualified contractors, identified according to categories of work, at least ten calendar days before the bids are due. The city engineer is responsible for developing and maintaining this list based on the criteria determined by the California Uniform Construction Cost Accounting Commission (hereinafter referred to as Commission in this chapter). Notices shall also be mailed within ten calendar days before the bids are due to all construction trade journals as required by the Commission. If the city does not have a list of qualified contractors for the particular type of work to be performed, notices inviting bids will only be sent to the construction trade journals as required by the Commission. If the product or service is proprietary in nature and can only be obtained from a certain contractor or contractors, notices inviting bids will only be mailed to such contractor or contractors.

3. For construction projects above an amount specified by council resolution, notices inviting bids distinctly describing the project be published at least once in the official newspaper of the city, with the first publication occurring at least fourteen calendar days before the date of opening the bids. Notices inviting bids distinctly describing the project shall also be mailed at least thirty calendar days before the date of opening bids to all construction trade journals as required by the Commission.

4. The city may also give such other notice as it deems appropriate.

C. Sealed bids shall be identified as bids on the envelopes and shall be submitted to the purchasing authority. (Ord. 1435 § 1, 2003; Ord. 1291 § 1, 1996; Ord. 954 § 2, 1983; prior code § 2952.2)

Bidder’s security may be required when deemed necessary by the purchasing authority. Bidders shall be entitled to return of bid security. However, a successful bidder shall forfeit his or her bid security upon refusal or failure to execute a contract within fifteen days after notice of award of that contract, unless the city is responsible for the delay. The contract may be awarded to the next lowest responsible bidder upon the refusal or failure of the successful bidder to execute the contract within the time herein prescribed. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.3)

Sealed bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be made available for public inspection until the award of a contract. All bids shall be retained on file for a period of not less than two years. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.4)

The purchasing authority may reject:

A. Any bid that fails to meet the bidding requirements in any respect; or

B. All bids, for any reason whatsoever, and may readvertise for new bids or abandon the purchase;

C. In the case of construction projects, the council may, by passage of a resolution by a four-fifths vote, declare that the project can be performed more economically by employees of the city and may have the project done by force account. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.5)

If no bids are received, the purchase may be made through negotiated contract or other process approved by the purchasing authority, including, in the case of construction projects, performing the work by employees of the city by force account. (Ord. 1435 § 1, 2003)

In the event that all bids received for a construction project are more than the maximum allowed under Section 22034(f) of Public Contract Code, and bids were invited pursuant to the provisions of Section 3.24.150(B)(2), the council may, by adoption of a resolution by four-fifths vote, award the contract, in an amount not to exceed the maximum set forth in Section 22034(f) of Public Contract Code, to the lowest responsible bidder, if it determines that the cost estimate was reasonable. Otherwise, the bids shall be rejected, and if the agency decides to go forward with the project, shall be re-bid in accordance with the procedures set forth in Section 3.24.150(B)(3). (Ord. 1435 § 1, 2003)

Subject to the prior approval of the city administrative officer, contracts shall be awarded by the purchasing authority to the lowest responsible bidder, except as follows:

A. If, at the time of bid opening, two or more bids received are for the same total amount or unit price, quality and service being equal, and if in the discretion of the purchasing authority the public interest will not permit the delay of readvertising for bids, then the purchasing authority may accept the one she or he or she chooses or the lowest bid obtained through subsequent negotiation with the tie bidders.

B. Sellers, vendors, suppliers and contractors who maintain places of business located within the limit of the city shall be given preference if quality, price, service and all other factors are equal. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.6)

The purchasing authority may require as a condition to executing a contract on behalf of the city, a performance bond or a labor and material bond, or both, in such amounts as the purchasing authority shall determine appropriate to protect the best interests of the city. The form and amounts of such bond(s) shall be described in the notice inviting bids. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.7)

In addition to the bid or quotation price, criteria for determining the lowest responsible bid or quotation, for the purposes of the Charter and this chapter, shall include, but not be limited to, the following:

A. The character, integrity, reputation, judgment, experience and efficiency of the bidder (this may include an analysis of previous work performed for the city);

B. The ability of the bidder to perform the contract, or provide the supplies, equipment or services required, within the time specified, without delay or interference;

C. The ability of the bidder to provide future maintenance, repair parts and replacement of purchased equipment or supplies;

D. Compliance by the bidder with federal acts, executive orders and state statutes governing nondiscrimination in employment; and

E. The results of any evaluation relating performance and price, such as testing, life-cycle costing, and analysis of service, maintenance and technical data. (Ord. 1435 § 1, 2003; Ord. 954 § 2, 1983; prior code § 2952.8)