Chapter 3.25
PURCHASING PROCEDURES
Sections:
3.25.010 Purposes.
3.25.020 Definitions.
3.25.030 Purchasing agent/officer specifications.
3.25.040 Specifications.
3.25.050 Scope.
3.25.060 Formal bidding process.
3.25.070 Exceptions.
3.25.080 Splitting orders to avoid competitive bidding prohibited.
3.25.090 Relief due to computation error.
3.25.100 Notice inviting bids or proposals.
3.25.110 Construction projects.
3.25.120 Performance and payment bonds.
3.25.130 Pre-qualification of bidders, proponents, and suppliers.
3.25.140 Cancellation and rejection of bids and proposals.
3.25.150 Records.
3.25.160 Procurement protests.
3.25.170 Ineligibility.
3.25.180 Penalties.
3.25.190 Personal purchases.
3.25.200 Right to inspect place of business.
3.25.210 Allowable incurred costs.
3.25.220 Costs-plus-percentage-of-cost contract prohibited except when determined less costly.
3.25.230 Sales of goods or services to the city by officials or employees.
3.25.240 Surplus supplies and equipment.
3.25.250 Participation by bidder who supplies specifications.
3.25.260 Period of time for contract of supplies.
3.25.270 Alternative methods of construction.
3.25.280 Departmental inventories.
3.25.290 City credit cards.
3.25.300 Powers.
3.25.310 Failure to follow chapter.
3.25.010 Purposes.
The underlying purposes of this chapter are:
To provide for the economy, efficiency, and to encourage competition in city procurement activities.
To procure the best services, materials, and construction at the most reasonable cost to the city.
To provide fair treatment of persons who conduct business or wish to do business with the city.
Nothing in this statement of purposes shall create rights, interest, or causes of action against the city, its officers, agents, or employees. Failure to follow the procedures set out herein shall not invalidate a procurement unless otherwise provided by law. [Code 2000 § 4-1a-1].
3.25.020 Definitions.
As used in this chapter:
“Bid” means an estimate submitted to the city from a vendor of a good or service relative to what that vendor expects a good or service will cost the city.
“Business day” means a day when West Point City administration offices are open for public business.
“City” means West Point City Corporation.
“City purchasing agent” or “purchasing agent” means the purchasing agent or assistants whose duties include procurement of goods and services for the entire city.
“Department buyer” means the person or persons charged by a city department head to procure for that department.
“Emergency” means an imminent threat to the public health, safety, and welfare or a situation involving an imminent and substantial risk of injury or loss to property or public funds under conditions which reasonably do not permit fulfilling all of the purchasing requirements provided for in this chapter.
“Item” means goods, services, or a combination of both, of one type.
“Professional services” includes, but is not limited to, the following services: medical diagnosis or treatment; veterinary; psychological or emotional diagnosis, testing, and analysis; communications services; engineering services; urban planning; risk management; architectural services; legal services; public surveying and statistical analysis; hazardous substance consulting and disposal; geology consulting; hydrology; technical writing; seismic consulting; impresarios, producers, and performers; artistic services; and financial services, including auditing, banking, bonding, insurance, and tax consulting; and other consulting services which require a high level of training, skill, and special knowledge not common among lay people.
“Provider” means a person who offers or provides goods, services, or a combination of both to the city under contract.
“Purchase order” means official, written documentation authorizing the purchase of a good or service on behalf of the city by an employee, officer, or other authorized and recognized agent.
“Sole source provider” means any vendor of a good or service of such a unique nature as to significantly hinder the city’s ability to competitively bid a purchase or seek alternative vendors without employing unreasonable/uneconomical measures to seek out and solicit vendors of the good or service in question.
“Vendor” means an individual, organization, or corporation which provides any good or service for sale. [Code 2000 § 4-1a-2].
3.25.030 Purchasing agent/officer specifications.
The city may appoint a purchasing agent/officer whose duties shall be defined by the city manager. Those duties may include: procurement, soliciting bids and proposals, negotiating, recommending and administering contracts, advising departments and employees on procurement, maintaining vendor and bidder lists and files and other records needed for the efficient operation of his or her duties, making written determinations for the city, the development and maintenance of forms as are reasonably needed for the purposes of this chapter, and supervising the inspection of supplies and equipment. The purchasing agent may recommend rules and regulations to govern matters covered by this chapter, including, but not limited to, protests and appeals, the preparation, maintenance, and content of specifications for supplies, services, and construction required by the city. One or more assistants may be employed to assist the purchasing agent in performing his/her duties. [Code 2000 § 4-1a-3].
3.25.040 Specifications.
The city may prepare specifications for the purchase of goods, services, and construction which contain information and detail which seeks to promote the purposes of this chapter. The specifications shall be maintained for the period of time required by law. The purchasing agent may, in addition, promulgate rules and regulations to govern the preparation, maintenance, and content of specifications for supplies, services, and construction required by the city for the purposes set out in this section. [Code 2000 § 4-1a-4].
3.25.050 Scope.
A. Superior or More Suitable Products. Whenever the requisitioning department head or his or her designated representative finds in a signed memorandum, a copy of which shall be sent to the purchasing agent and the city manager, that a particular product significantly surpasses competing products in terms of quality, serviceability or longevity, or that such a product is better suited to the needs of the city in order to lower costs of inventory, to maintain compatibility with city equipment or currently adopted and authorized procedures, or because doing so will lower the costs of service or procurement, such a product may be purchased notwithstanding the fact that a competing product could be procured at a lower cost or rate.
B. State or Federal Purchasing Prices. The city need not solicit competitive bids or proposals when making procurement through cooperative purchasing contracts administered by the State Division of Purchasing, or an agency of the federal government, the benefits of which are also available to the city.
C. Cooperative Procurement. The city may join with other units of federal, state, or local government, or with special districts, school districts, and such other similar agencies or political subdivisions as the city council may by resolution direct, in purchasing goods and services. In such cases, the city is encouraged to follow a competitive bidding process or request for proposals in such a manner as would follow if the city were procuring the good or service in question. Notwithstanding the foregoing, purchases shall be made in accordance with state law, such as Section 10-7-20, Utah Code Annotated 1953, regarding contracts for new public improvements construction costs where the estimated cost exceeds $25,000.
D. Capital Projects Costing under $5,000 – No Bids. City procurement of goods and services reasonably expected to cost less than $5,000 does not require the solicitation of bids. However, a purchase order is required and must be authorized and issued prior to the purchase of said good or service. Procurement under this subsection may be made by cash payment, but in such cases the procuring agent or employee should obtain relevant receipt(s) for the payment. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
E. Capital Projects Costing $5,000 to $99,999 – Three Written Bids. Procurement of goods and services reasonably expected to cost more than $5,000 but not more than $99,999 in total shall require three written bids from proposed vendors of that good or service being sought. The city agent or employee shall create a signed, written record of quotes and reasonably detailed product or service information, sufficient to compare and make a reasonably informed choice from among the vendors who make offers or bids, including the name of the vendor, the vendor’s address, telephone number, and the price quoted. Procurement under this subsection shall be made by purchase order unless made by written contract or authorized by the city manager. In no case shall a purchase order be issued by the purchasing officer before said bids are received. In the event three vendors willing to provide quotes cannot reasonably be obtained, then the city agent or purchasing officer shall make a signed, written record of quotes and product and service information about each vendor willing to provide quotes, and a record of efforts to obtain other quotes. A purchasing decision shall be made based upon the information submitted. The purchasing officer may allow a person who has prepared or assisted in the preparations of the specifications to submit a proposal for the procurement if doing so is not unfair to other bidders or proponents, in the reasonable discretion of the purchasing agent or the city manager. Otherwise, such person shall not be allowed to bid or submit a proposal.
F. Capital Projects Costing More Than $100,000 – Must Use Formal Bid Process. All formal bidding and requests for proposals shall be issued by the city purchasing agent, his/her assistants, or other person designated by the city manager. All procurement costing in excess of $100,000 shall follow a formal bidding process as outlined in WPCC 3.25.060. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
G. Goods and Services for General City Operations Costing under $1,000 – No Bids, No Purchase Order. City procurement of goods and services reasonably expected to cost less than $1,000 does not require the solicitation of bids. In addition, no purchase order is required by the city for the execution of this level of purchase. The city may issue a purchase order if so required by the vendor. Procurement under this subsection may be made by cash payment, but in such cases the procuring agent or employee should obtain relevant receipt(s) for the payment. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of check or payment.
H. Goods and Services for General City Operations Costing $1,000 to $5,000 – No Bids. City procurement of goods and services reasonably expected to cost less than $5,000 but greater than $1,000 does not require the solicitation of bids. However, a purchase order is required and must be authorized and issued prior to the purchase of said good or service. Procurement under this subsection may be made by cash payment, but in such cases the procuring agent or employee should obtain relevant receipt(s) for the payment. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
I. Goods and Services for General City Operations Costing $5,000 to $49,999 – Three Written Bids. Procurement of goods and services reasonably expected to cost more than $5,000 but not more than $49,999 in total shall require three written bids or quotes from proposed vendors of that good or service being sought. The city agent or employee shall create a signed, written record of quotes and reasonably detailed product or service information, sufficient to compare and make a reasonably informed choice from among the vendors who make offers or bids, including the name of the vendor, the vendor’s address, telephone number, and the price quoted. Procurement under this subsection shall be made by purchase order unless made by written contract or authorized by the city manager. In no case shall a purchase order be issued by the purchasing officer before said bids are received. In the event three vendors willing to provide quotes cannot reasonably be obtained, then the city agent or purchasing officer shall make a signed written record of quotes and product and service information about each vendor willing to provide quotes, and a record of efforts to obtain other quotes. A purchasing decision shall be made based upon the information submitted. The purchasing officer may allow a person who has prepared or assisted in the preparations of the specifications to submit a proposal for the procurement if doing so is not unfair to other bidders or proponents, in the reasonable discretion of the purchasing agent or the city manager. Otherwise, such person shall not be allowed to bid or submit a proposal.
Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
J. Goods and Services for General City Operations Costing More Than $50,000 – Must Use Formal Bid Process. All formal bidding and requests for proposals shall be issued by the city purchasing agent, his/her assistants, or other person designated by the city manager. All procurement costing in excess of $50,000 shall follow a formal bidding process as outlined in WPCC 3.25.060. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
K. Goods and Services Involved in Office Operations Costing Less Than $1,000 – No Bids, No Purchase Order. City procurement of goods and services reasonably expected to cost less than $1,000 does not require the solicitation of bids. In addition, no purchase order is required by the city for the execution of this level of purchase. The city may issue a purchase order if so required by the vendor. Procurement under this subsection may be made by cash payment, but in such cases the procuring agent or employee should obtain relevant receipt(s) for the payment. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of check or payment.
L. Goods and Services Involved in Office Operations Costing $1,000 to $5,000 – No Bids. City procurement of goods and services reasonably expected to cost less than $5,000 but more than $1,000 does not require the solicitation of bids. However, a purchase order is required and must be authorized and issued prior to the purchase of said good or service. Procurement under this subsection may be made by cash payment, but in such cases the procuring agent or employee should obtain relevant receipt(s) for the payment. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
M. Goods and Services Involved in Office Operations Costing $5,000 to $29,999 – Three Written Bids. Procurement of goods and services reasonably expected to cost more than $5,000 but not more than $29,999 in total shall require three written bids or quotes from proposed vendors of that good or service being sought. The city agent or employee shall create a signed, written record of quotes and reasonably detailed product or service information, sufficient to compare and make a reasonably informed choice from among the vendors who make offers or bids, including the name of the vendor, the vendor’s address, telephone number, and the price quoted. Procurement under this subsection shall be made by purchase order unless made by written contract or authorized by the city manager. In no case shall a purchase order be issued by the purchasing officer before said bids are received. In the event three vendors willing to provide quotes cannot reasonably be obtained, then the city agent or purchasing officer shall make a signed, written record of quotes and product and service information about each vendor willing to provide quotes, and a record of efforts to obtain other quotes. A purchasing decision shall be made based upon the information submitted. The purchasing officer may allow a person who has prepared or assisted in the preparations of the specifications to submit a proposal for the procurement if doing so is not unfair to other bidders or proponents, in the reasonable discretion of the purchasing agent or the city manager. Otherwise, such person shall not be allowed to bid or submit a proposal.
Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
N. Goods and Services Involved in Office Operations Costing More Than $30,000 – Must Use Formal Bid Process. All formal bidding and requests for proposals shall be issued by the city purchasing agent, his/her assistants, or other person designated by the city manager. All procurement costing in excess of $30,000 shall follow a formal bidding process as outlined in WPCC 3.25.060. Departmental requisition, bearing the signature of the department head or designee, is required before issuance of the purchase order.
O. Prudence and good judgment shall always be used when making any purchase(s). Purchase(s) that are greater than $100.00 shall always require the approval of a supervisor prior to making such purchase(s). [Ord. 11-20-2007A § 2. Code 2000 § 4-1a-5].
3.25.060 Formal bidding process.
The following procedures shall apply to the procurement of all materials, supplies, equipment, public improvements, and nonprofessional services which cost more than $25,000. The procedures shall also apply to professional services estimated within a contracted period to accrue costs of more than $25,000. All bids and requests for proposals shall be made by the city purchasing agent or another designee of the city manager.
A. General. The purchasing agent or other designee shall issue invitations to bid or requests for proposals for materials, supplies, equipment, services, insurance, public contracts, and other items required for the city.
B. Invitation to Bid. An invitation to bid shall describe the material, supplies, equipment, services, and/or insurance with sufficient particularity to allow for competitive bidding and evaluation, and shall include a procurement description, and contractual terms and conditions applicable to the procurement.
C. Bid and Proposal Submissions. Bidders must submit responsive bids and proposals on or before the bid closing to the purchasing agent to be eligible for consideration. The city purchasing agent may in his or her discretion consider a bid or proposal which was timely submitted via a delivery medium which arrives after the bid closing, provided acceptance of the bid or proposal is reasonably determined by the purchasing agent to be in the best interest of the city and there is no evidence or likelihood of collusion or fraud upon the procurement process. Formal bids shall otherwise be opened at a public bid opening.
1. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and any other relevant information specified by rules and regulations, together with the name of each bidder, shall be recorded. The record and each bid shall be open to public inspection.
2. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this chapter. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose, except that criteria in determining responsible bidders contained in this chapter need not be set forth in the invitation for bids. The purchasing agent shall attempt to make selections based on those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable. The criteria may include discounts, transportation costs, and total or life cycle costs.
3. Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on such bid mistakes, shall be permitted in the interest of the city in the reasonable discretion of the purchasing agent in consultation with the city manager or the interested city department head. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the city or to fair competition shall be permitted. Except as otherwise provided by this chapter, or rules and regulations, all decisions to permit the correction or withdrawal of bids or to cancel awards or contracts based on bid mistakes by a provider shall be supported by a written determination made by the purchasing agent.
D. Award under Invitation to Bid. Contracts for procurement under an invitation to bid shall be awarded with reasonable promptness by written notice to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. Determinations may be based on one or more or any combination of factors which will serve to meet city requirements at the best economic advantage to the city including, but not limited to: unit cost, life cycle cost, economic cost analysis, operating efficiency, warranty and quality, compatibility with existing equipment and systems, maintenance costs (to include consideration for the cost associated with proprietary invention), experience and responsibility of bidder. In the event all bids for a construction project exceed available funds as certified by the appropriate fiscal officer, and the low responsive and responsible bid does not exceed such funds by more than five percent, the city manager or the purchasing agent is authorized, in situations where time or economic considerations preclude resolicitation of work or a reduced scope, to negotiate an adjustment of the bid price, including changes in the bid requirements, with the low responsive and responsible bidder, in order to bring the bid within the amount of available funds.
E. Two-Step Awards. When it is considered impractical to prepare initially a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.
F. Lowest Responsible Bidder.
1. In determining lowest responsible bidder, the purchasing agent may in his/her discretion consider one or more of the following criteria, which may be included as purchase criteria in the invitation for bids:
a. The quality of supplies offered;
b. The ability, capacity, and skill of the bidder to perform the contract or provide the supplies or services required;
c. Whether the bidder can perform the contract or provide the supplies promptly, or within the time specified, without delay or interference;
d. The sufficiency of the bidder’s financial resources and the effect thereof on his/her ability to perform the contract or provide the supplies or services;
e. The character, integrity, reputation, judgment, experience, and efficiency of the bidder;
f. The quality of bidder’s performance on previous order or contract for the city or for others;
g. Litigation or claims by the bidder without substantial basis;
h. Any previous or existing noncompliance by the bidder with laws and ordinances relating to the subject of the contract;
i. The ability of the bidder to provide future maintenance and service, where such maintenance and service is essential; and
j. Price.
2. Determination of Nonresponsibility of Bidder. Written determination of nonresponsibility of a bidder or offeror shall be made in accordance with this chapter. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to the bidder or offeror. Information furnished by a bidder or offeror pursuant to this section shall not be disclosed outside of the department making the purchase and the purchasing agent’s office without prior written consent by the bidder or offeror.
3. After reasonable notice to the person involved, the purchasing agent may debar a person for cause from consideration for award of city contracts.
G. Competitive Sealed Proposals. As an alternative to the bidding process provided for in this section, competitive proposals may be solicited in the discretion of the purchasing agent, city manager, or a department head, and a contract may be entered into by competitive sealed proposals.
1. Competitive sealed proposals may be used for the procurement of services of consultants, professionals, and providers.
2. Proposals shall be opened so as to avoid disclosure of the contents to competing offerors before a contract is signed with the offeror during the process of negotiation.
3. A register of proposals shall be prepared and shall list such information with respect to each proposal as is important in making the decision which shall be open for public inspection after award of the contract. The register shall be open for public inspection after award of the contract.
4. The request for proposals shall state the relative importance of price and other evaluating factors.
5. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals for the purpose of assuring full understanding of, and responsiveness to, solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and before the contract is awarded for the purpose of obtaining best and final offers. In conducting discussions, reasonable care shall be taken to avoid the disclosure of information derived from proposals submitted by competing offerors which is not known to the competitors.
6. The contract file shall contain the basis on which the award is made.
H. Waiver of Defects, Technicalities. The city purchasing agent, together with the head of the department purchasing the good or service, may waive defects and technicalities when so doing is in the best interest of the city. The city purchasing agent shall, where practicable, take responsible efforts to notify all bidders of the determination thereof.
I. Bid Bond. A bid bond may be required on items, contracts, materials, and services procured under this chapter.
J. Notices Inviting Bids and Quotations. Notices inviting bids or quotations shall be published at least five days before the date of the opening of the bids in a manner which the purchasing agent determines is in the city’s best interest to meet the purposes of this chapter, including but not limited to publication on an electronic bulletin board, on the Internet, in commonly read trade publications, radio, television, cable television, or in a newspaper of general circulation in the city. Notices advertising pending procurements by bid or request for proposals under this section shall be posted on a public bulletin board at City Hall, and where practicable, shall be posted at least five days before the procurement is contracted.
K. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the purchasing agent determines that the city’s interest is better served by not re-advertising for bids, the city may require the tie bidder to submit a rebid within five days. [Code 2000 § 4-1a-6].
3.25.070 Exceptions.
The competitive purchasing requirements of this chapter need not be followed in the following circumstances. In such cases, written documentation should be made demonstrating that a procurement falls within one of the following provisions of this section.
A. Grant, Gift, or Bequest. In complying with the terms and conditions of any grant, gift, or bequest to the city, or to one of the city’s departments or subdivisions, committees, or a community organization which functions under city auspices, if such action is approved by the city council and is otherwise consistent with law.
B. Federal or State Assistance. When a procurement involves the expenditure of federal or state assistance funds, and to the extent that doing so requires that federal or state law be followed to the exclusion of city ordinances.
C. Emergency Procurement. Notwithstanding any other provision of this chapter, procurement may be made in emergencies by the purchasing agent, city manager, a department head, or a designee of such in instances in which the procurement could not reasonably have been made pursuant to this chapter; provided, that procurements shall be made with as much competition as practicable under the circumstances. Promptly thereafter, the procuring person shall provide a signed written statement to the city purchasing agent setting out in reasonable detail the item procured, the price, and cause and basis for the emergency and why the procedures set out in this chapter were not followed. A copy of the statement shall be included in the contract file.
D. Sole Source Provider. Procurements of products, services or construction items available only from a single provider. The city manager, department head, or purchasing agent shall find in writing that there is only one source for the item or service or shall state in writing that they have made reasonable efforts to locate other sources of a good or service and the basis for their determination that there exists no other source of a good or service who could reasonably be expected to provide such to the city.
E. Compatibility, Parts, or Training. Procurements or equipment which, by reason of the training of city personnel who service or operate such equipment, systems, or software, or which is an addition to or for the repair or maintenance of equipment owned by the city which may be more efficiently added to, repaired or maintained by a certain brand, person, or firm.
F. Additional or Replacement Parts. Equipment which, due to an inventory of replacement parts maintained by the city, is compatible only with existing equipment owned, leased or used by the city, need not, where the department head, city manager, or purchasing agent finds in a signed writing that the city’s interest is better served by so purchasing a different brand of such equipment.
G. Professional Services. Contracts for professional services reasonably expected to cost more than $2,500 for the services specifically set out in the contract shall be awarded at the discretion of the city manager, or a person designated by the city manager.
1. Criteria for Award. Contracts for professional services shall be based on the evaluation of professional qualifications, service ability, cost of service, and other service-related criteria. Selection shall be based on the discretion of the city manager after the determination of services which best meet the needs of the city.
2. Manner of Selection. Criteria for award of professional service contracts costing more than $2,500 may be determined through one or more of the following methods:
a. Competitive bid;
b. Request for proposals (RFP); or
c. Informal survey.
3. Where criteria for award of professional service contracts costing more than $2,500 are determined through informal survey or through some lesser review, then award of the contract or its proposed award shall be disclosed in writing to the city council by the department head or a person designated by the department head along with a reasonably detailed written summary of the findings of that survey.
H. Insufficient Bids. Where fewer than three responses are made to a bid solicitation or request for proposals after reasonable efforts to obtain three or more bids or proposals, the purchasing agent or department buyer responsible for the purchase may, after making a signed writing setting out the circumstances thereof, a copy of which shall be placed in the contract file, make a purchase which in his or her reasonable discretion meets the purposes of this chapter by purchasing in a manner which does not conform to the formal bidding or RFP process set out in this chapter.
I. City Council Determinations. The city council may authorize the procurement of supplies, equipment, and services without complying with the provisions of this chapter when it determines that compliance with the procedure is not in the best interest of the city. A memo shall be placed in the file for the purchase setting out the reasons for not following the purchasing provisions which otherwise would apply.
J. Special Opportunity Purchases. Where a substantial savings will be realized thereby in the purchase of goods or nonprofessional services costing more than $25,000; and provided, that sufficient money has been appropriated for the purchase, a department may avoid competitive bidding or the RFP requirements set out in WPCC 3.25.060 by adherence to the following process, provided other applicable provisions of this chapter are met before the purchase is made:
1. It shall, in its reasonable discretion, obtain offers from competing sources in a manner most likely to meet the purposes of this chapter; and
2. The department head shall disclose the proposed purchase in a signed written memorandum to the city manager, setting out in reasonable detail the reason the purchase is recommended, the reason normal purchasing is not recommended, and the proposed savings, and what efforts have been made to obtain competitive offers; and
3. The city manager agrees in a signed memorandum that he/she believes that the purchase is justified, and that the purposes of this chapter will be met thereby. [Code 2000 § 4-1a-7].
3.25.080 Splitting orders to avoid competitive bidding prohibited.
No person may split or separate into smaller orders the procurement of supplies, materials, equipment, or services for the purpose of evading the competitive bidding or request for proposal provisions of this chapter. [Code 2000 § 4-1a-8].
3.25.090 Relief due to computation error.
Any bidder who seeks to withdraw or modify a bid because of inadvertent computational error shall notify the purchasing agent no later than three working days following the bid closing. The bidder shall provide worksheets and such other information as may be appropriate or required by the city purchasing agent to substantiate the claim of inadvertent error. Failure to do so may bar such relief and allow recourse from the bid surety, in the discretion of the purchasing agent. The burden is upon the bidder to prove such error. [Code 2000 § 4-1a-9].
3.25.100 Notice inviting bids or proposals.
Notice inviting bids or proposals shall include a general description of the articles to be procured and shall state where bid blanks and specifications may be secured, and the time and place for opening bids, along with any other information which the purchasing agent deems appropriate. [Code 2000 § 4-1a-10].
3.25.110 Construction projects.
Municipal construction projects are governed by Section 10-7-20, Utah Code Annotated 1953, as amended. The requirement for obtaining payment bonds in municipal construction contracts is covered by Chapter 14-1, Utah Code Annotated 1953.
The city manager and city department head are authorized to approve extra work or change orders on city construction projects in an amount not to exceed 20 percent of the contract in the best interest of the city in the discretion of the department head and city manager. Notice of such provision may be included in the invitation for bids. [Code 2000 § 4-1a-11].
3.25.120 Performance and payment bonds.
Performance and payment bonds in such amounts as the purchasing agent determines are needed to protect the best interests of the city shall be required by the purchasing agent. The nature, form, and amount of such bonds shall be described in the notice inviting bonds or in the request for competitive sealed proposals. [Code 2000 § 4-1a-12].
3.25.130 Pre-qualification of bidders, proponents, and suppliers.
Bidders, proponents, and/or suppliers may be pre-qualified for particular types of supplies, services, and construction. Solicitation mailing lists of potential contractors shall include, but not be limited to, pre-qualified suppliers.
A. Standard of Responsibility. Factors to be considered in determining whether the standard of responsibility has been met by a bidder, supplier or proponent include:
1. Availability of the appropriate financial, material, equipment, facility, and personnel resources and expertise, or the ability to obtain them, necessary to indicate the capability of the bidder, proponent, or supplier to meet all contractual requirements;
2. A satisfactory record of performance, including but not limited to the record of performance for the city or other governmental agencies, and debarment by any such agency;
3. A satisfactory record of integrity;
4. Legal qualifications to contract with the city;
5. Whether all necessary information has been supplied in connection with the inquiry concerning responsibility; and
6. Those considerations in respect to low responsible bidders.
B. Information Pertaining to Responsibility. The proponent, bidder, or supplier shall supply information requested by the city concerning the responsibility of such bidder, proponent, or supplier. If such information is not supplied, the city shall base the determination of responsibility upon any available information or may find the proponent, bidder, or supplier nonresponsible if such failure, as determined by the city, is unreasonable. [Code 2000 § 4-1a-13].
3.25.140 Cancellation and rejection of bids and proposals.
An invitation for bids, a request for proposals, or other solicitation may be canceled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation, when it is in the best interest of the city in the reasonable discretion of the purchasing agent or department buyer responsible for the purchase. The reasons for the cancellation shall be made part of the contract file. [Code 2000 § 4-1a-14].
3.25.150 Records.
Except when a longer minimum time is required by state law or city ordinance, the purchasing agent or department buyer making a procurement of more than $1,000 shall keep records relating to the procurement for not less than one year from the time of the procurement. [Code 2000 § 4-1a-15].
3.25.160 Procurement protests.
A. Any actual or prospective bidder or offeror who is aggrieved in connection with the solicitation or award of a contract for procurement may protest the procurement by filing a written protest with the purchasing agent. The protest shall contain the following information:
1. The protesting party’s name, mailing address, daytime telephone number, the signature of the protesting party or the attorney for the protesting party, and the date the protest is signed; and
2. The relief sought, a statement of facts, and a recitation of the reasons and legal authority in support of the protest sufficient to permit review.
B. Protests shall be submitted prior to the closing date for receiving bids or proposals unless the protester did not know and could not have reasonably known the facts giving rise to the protest prior to such time, but in any event, all protests shall be submitted within five days after the closing date for receiving bids or proposals.
C. The city may proceed with the procurement except that the purchasing agent may suspend the procurement process for so long as he/she determines appropriate.
D. The purchasing agent may designate another individual to assist in reviewing the matter, which assistance may include finding facts, analyzing the protest, and making recommendations to the purchasing agent.
E. The purchasing agent or the purchasing agent’s designated representative may request additional information from the protesting party or from other persons to make a determination. The protesting party shall provide all information requested by the purchasing agent reasonably needed to decide the protest except information which is protected from disclosure by law, or which could reasonably be expected to result in unfair competitive injury to the protester.
F. The purchasing agent shall review and decide protests, and shall issue a written determination to the protesting party within 15 days of receipt of the protest.
G. The protesting party may appeal the written decision of the purchasing agent by filing a written appeal with the city manager. The notice of appeal shall contain the following information:
1. The petitioner’s name, mailing address, daytime telephone number, the signature of the petitioner or of the attorney for the petitioner, and date; and
2. The relief sought, a statement of facts and a recitation of the reasons and legal authority in support of the protest sufficient to permit review.
H. The city manager or other person selected by the city manager shall review and hear the appeal. No later than five days after receiving a notice of appeal, the city manager shall schedule a hearing on the appeal. Unless otherwise agreed to by the city and the petitioner, the hearing shall be held no sooner than five days and not later than 30 days from the date of the filing of the appeal.
I. At the hearing before the city manager, the appellant and the city’s representative shall be allowed to testify, present evidence, and comment on the issues under the direction of the committee chairman. The city manager may allow other interested persons to testify, comment, or provide evidence on the issues.
J. No later than 15 business days after the hearing, the city manager shall issue a signed order either granting the petition in whole or in part, or upholding the determination of the purchasing agent in whole or in part. The order of the city manager shall include:
1. The decision and any reasons for the decision the committee may wish to provide; and
2. A statement that any party to the appeal may appeal the decision to the state district court.
K. If the city manager fails to issue a decision within 15 business days after the hearing, said failure shall be considered the equivalent of an order denying the appeal.
L. The city manager may appoint a person other than the purchasing agent or the city manager to fulfill their respective responsibilities described in this section. [Code 2000 § 4-1a-16].
3.25.170 Ineligibility.
In addition to all other remedies permitted by law, the mayor and city council may declare a bidder or contractor ineligible to bid on city procurement and public works contracts for a period not to exceed five years for any of the following grounds:
A. Two or more claims of computational error in bid submission within a two-year period;
B. An unreasonable refusal to provide or execute contract documents;
C. Unsatisfactory performance of contract;
D. Unreasonable refusal to provide or execute to perform or complete contract work or warranty performance of contract;
E. Unjustified refusal to perform or complete contract work or warranty performance;
F. Unjustified failure to honor or observe contractual obligations or legal requirements pertaining to the contract; or
G. Conviction under state or federal statutes for fraud, bribery, theft, falsification or destruction of records, receiving stolen property, or of any other similar crime or offense indicating a lack of business integrity and which would directly affect the reliability and credibility of performance of such a vendor or contractor with future contracts with the city. [Code 2000 § 4-1a-17].
3.25.180 Penalties.
A. Collusion among Bidders. Any agreement or collusion among bidders or prospective bidders is a restraint of freedom of competition and any agreement to bid a fixed price, or otherwise, shall render the bids of such bidders void.
B. Gratuities. The acceptance of any gift, benefit, or gratuity in the form of cash, merchandise, or any other thing of value by an official or employee of the city from a vendor or contractor, or prospective vendor or contractor, which would reasonably be expected to substantially influence the actions of the official or employee in favor of the giver in future procurements or negotiations may be deemed to be a violation of this chapter and may be cause for removal or other disciplinary action. [Code 2000 § 4-1a-18].
3.25.190 Personal purchases.
Personal purchases executed through the city are prohibited, unless expressly authorized by the city manager. [Code 2000 § 4-1a-19].
3.25.200 Right to inspect place of business.
The city may, at reasonable times, inspect the part of the plant or place of business of a contractor, or any subcontractor, which is related to the performance of any contract awarded or to be awarded by the city. [Code 2000 § 4-1a-20].
3.25.210 Allowable incurred costs.
The city may allow the reimbursement of costs reasonably and necessarily incurred by a contractor or according to the terms of written contract with the city. [Code 2000 § 4-1a-21].
3.25.220 Costs-plus-percentage-of-cost contract prohibited except when determined less costly.
Subject to the limitations of this section or other applicable law, any type of contract which will promote the best interests of the city may be used; provided, that a cost-plus-a-percentage-of-cost contract is prohibited. A cost-reimbursement contract may be used only when a determination is made in writing by the city manager, purchasing agent, the department buyer, or the department head, 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, services, or construction required except under such contract. [Code 2000 § 4-1a-22].
3.25.230 Sales of goods or services to the city by officials or employees.
City officials and employees may sell goods or services to the city under the following conditions:
A. An employee or the employee’s spouse, parent, children, or siblings may not sell goods or services to the employee’s department unless the sale is first approved in writing either by the department head or the city manager;
B. All such transactions are subject to applicable provisions regarding ethics of municipal officials and employees of the Utah Code Annotated 1953. [Code 2000 § 4-1a-23].
3.25.240 Surplus supplies and equipment.
A. Property Not Needed. Wherever a department head shall give notice in writing to the city purchasing agent that certain property of the city is so used, obsolete, depreciated, or surplus to current and projected needs as to be unfit or undesirable for use or retention by the city, the purchasing agent shall sell or exchange it for other property, or otherwise dispose of it to the best advantage of the city as provided in this section.
1. “Exchange,” as used in this section, shall include transactions where used, obsolete, depreciated, or surplus property of the city is transferred as a partial consideration for the transfer to the city of other property, and when any such property has been disposed of, the amount received therefor, either in cash or as a credit, shall be credited to the department or office of the city which requested its disposal, only if the trade-in or sale of such trade-in article or article sold has been contemplated in the current annual budget; otherwise receipts or credits from such trade-ins or sales will be deposited into the general fund.
2. Whenever the property described in the notice referred to in subsection (A) of this section shall have an actual value of $2,000 or more, the department head for the department controlling the property shall receive from the city manager authority to dispose of it, and the city purchasing agent shall be authorized to sell or otherwise dispose of the property, as provided in subsection (A) of this section. In addition, the department head shall disclose the terms of the transaction in reasonable detail to the city manager’s cabinet before the transaction is completed.
3. The city manager shall report annually in writing to the council the result of any such sales, exchanges or other disposal of personal property pursuant to this section. The report to the city council shall describe the property disposed of and state the consideration received by the city for such property.
B. Identify Surplus. All department heads shall identify in a signed writing to the city manager and city purchasing agent surplus property within the control of or procurement of that department. The department buyer may also periodically review inventory levels of city supplies and equipment to determine whether there is excess property on hand.
C. Conveyance, Gift, or Encumbrance – City Manager Signature. In addition to compliance with the other provisions of this section, every conveyance, gift, or encumbrance of inventoried city property shall be made by the city manager, or under the city manager’s written authority specifying what items are covered thereby. All conveyances or encumbrances of inventoried city property shall be based on the highest and best economic return to the city, except that consideration may be based on other public policy factors when the property is conveyed to units of government or other charitable, public or quasi-public organizations.
D. Highest and Best Return. The highest and best economic return to the city, as referred to herein, shall be estimated by one or more of the following methods:
1. Competitive bid;
2. Evaluation by a qualified and disinterested appraiser;
3. Other professional publications and valuation services; or
4. An informal market survey conducted by the purchasing agent in the case of items of personal property possessing readily discernible market value.
E. Sales. Sales of city property shall be based, whenever practicable, on competitive bid. The city purchasing agent may, however, waive the competitive bidding requirement when the value of the property has been estimated by an alternate method specified in subsection (D) of this section, and:
1. The value of the property is considered negligible in relation to the time, labor, and expense of competitive bidding;
2. Bidding procedures are deemed unlikely to produce a competitive offer; or
3. Circumstances indicate that bidding on the property will not otherwise be in the best interest of the city.
F. Disclosure of Transfers over $2,000. Any sale, lease, trade, gift, or encumbrance of the property of the city whose reasonable value exceeds $2,000 shall be disclosed by the city manager or a person designated by the city manager in writing to the mayor and city council before such transaction, along with a reasonably detailed statement of the property and the terms of the transaction.
G. Intent of Section. No provisions of this section shall be construed to require or to invalidate any conveyance or encumbrance by the city nor to vest rights of action of any kind against the city, its officers, agents, or employees.
H. Deposit in General Fund. All unappropriated monies received by the city from sales of real property, less appraisal fees, commissions, and expenses of sale, shall be deposited in a revenue account in the general fund of the city. However, monies received by the city from the sale of property originally procured by the city from an enterprise fund, or from properties attributable by the city manager to be used by an existing enterprise fund, shall be deposited in a revenue account within that fund. Monies so deposited within such accounts may not be expended without specific appropriation or approval of the city council.
I. Trade or Exchange of Personal Property. The city manager may provide in a signed writing for a trade or exchange of city personal property or for other property or for services by written agreement, or to give such property to a charitable organization, school district, or other governmental entity; provided, that such transaction is first approved by the mayor and city council.
J. No Split Sales or Transfers. No person may split or separate into smaller numbers the sale or transfer of supplies, materials, equipment, or services for the purpose of evading the provisions of this section.
K. Prior Disclosure to City Council. Before any sale, lease, trade, or other encumbrance of the real property of the city, the city manager or a person designated by him/her shall disclose such transaction in writing to the mayor and city council. [Code 2000 § 4-1a-24].
3.25.250 Participation by bidder who supplies specifications.
A person other than a city employee who has prepared specifications used substantially by the city in determining from which bidder or proponent it wishes to purchase goods or services may participate in a bid or proposal procurement in the city where the purchasing agent or city manager determines in his/her reasonable discretion that such participation will be in the best interest of the city in light of the stated purposes of this chapter contained in WPCC 3.25.010. A city employee who has prepared specifications used substantially by the city in determining the bidder or proponent from which it wishes to purchase goods or services may participate as a bidder or proponent in a bid or proposal procurement by the city when the purchasing agent or city manager determines in his/her reasonable discretion that doing so is fair and in the best interest of the city in light of the purposes of this chapter. [Code 2000 § 4-1a-25].
3.25.260 Period of time for contract of supplies.
A. Unless otherwise provided by law, a contract for supplies or services may be entered into for any period of time deemed to be in the best interest of the city; provided, that the term of the contract and conditions of renewal or expansion, 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.
B. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled. The contractor may apply for reimbursement for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies or services delivered under the contract, which may be awarded in the reasonable discretion of the purchasing agent. The cost of the cancellation may be paid from any appropriations available for that purpose. [Code 2000 § 4-1a-26].
3.25.270 Alternative methods of construction.
The city may contract for any method of construction management allowed by law in the reasonable discretion of the department head responsible for the construction, or the city manager. [Code 2000 § 4-1a-27].
3.25.280 Departmental inventories.
Each department head shall submit to the city manager on an annual basis an inventory of all supplies, equipment, fleet, tools, furnishings, or other materials procured by the city, with associated replacement values. This section shall apply to office stationery. As this section applies to fleet, this report shall also include the age and odometer reading of each vehicle. [Code 2000 § 4-1a-28].
3.25.290 City credit cards.
The city manager may authorize the issuance of a city credit card to a department head and other officials of the city. Credit cards are to be used for city purposes only. Upon receipt of the monthly credit card statement, the holder of the card shall in writing apply an appropriate budget code to each line item and submit for review and payment to the city manager. In no situation shall the card be transferred to or used by any person, whether employed by the city or not, other than that person originally authorized to hold the card. The city manager may at his/her discretion remove this privilege from the holder and cancel the card. The holder shall be personally responsible for all purchases and balances associated with unauthorized or personal purchases, if such should occur. The city reserves the right to garnish the wages of card holders to pay for such purchases. [Code 2000 § 4-1a-29].
3.25.300 Powers.
The city manager may authorize any employee or official of the city to carry out the provisions stated in this chapter and may designate this person as the city purchasing agent. [Code 2000 § 4-1a-30].
3.25.310 Failure to follow chapter.
The failure to follow any provision of this chapter shall not render a procurement invalid, nor give a bidder or proponent a claim or right against the city or the employee responsible for such failure. Failure on the part of an agent, officer, or employee of the city to follow the provisions of this chapter may result in discipline or dismissal; and may expose the violator to possible prosecution in accordance with applicable state and federal laws. In the event any circumstance or scenario is not covered or addressed by the provisions of this chapter, Utah State procurement and administrative rules applicable to municipal practices shall prevail. [Code 2000 § 4-1a-31].