Chapter 17.02
BIDDING AND CONTRACT PROCEDURES
Sections:
17.02.050 Public notice of invitation to bid.
17.02.070 Bid acceptance and bid evaluation.
17.02.080 Late bids--Correction or withdrawal of bid--Cancellation of awards.
17.02.090 Contract award after bids.
17.02.100 Multi-step sealed bidding.
17.02.110 Competitive sealed proposals.
17.02.120 Request for proposals.
17.02.130 Treatment of proposals.
17.02.140 Discussion with responsible offeror and revisions to proposals.
17.02.170 Emergency contracts.
17.02.010 General policy.
A. Except as otherwise provided in this chapter, or unless specifically exempted by law, contracts for supplies, construction or services exceeding one hundred thousand dollars shall be awarded by competitive sealed bidding.
B. Competitive sealed bidding is not required:
1. When the borough assembly determines by resolution adopted by three affirmative votes at a regular or special meeting that supplies, construction or services may be purchased otherwise to the best advantage of the borough;
2. For supplies, construction or services which the borough decides to perform itself; or
3. For emergency supplies, construction or services.
C. The borough manager may cancel an invitation to bid or a request for proposals at any time.
D. The borough manager, but only with the concurrence of the borough assembly, shall have the discretion to modify, delete, alter and to waive any provision in this chapter if the modification, deletion, alteration or waiver would, in their discretion, be in the best interests of the borough. (Ord. 96-4 §2(part), 1996).
17.02.020 Invitation to bid.
A. When competitive sealed bidding is used, the borough manager shall issue an invitation to bid, which should include a time, place and date by which the bid must be received, purchase description, and a description of contractual terms and conditions applicable to the procurement.
B. When responding to the invitation to bid, the bidder shall supply evidence of the bidder’s valid Alaska business license. A bidder for a construction contract shall also submit evidence of the bidder’s registration under AS 08.18. (Ord. 96-4 §2(part), 1996).
17.02.030 Subcontractors.
A. Within five working days after the identification of the successful bidder, the successful bidder shall submit a list of the subcontractors the bidder proposes to use in the performance of the contract. The list must include the name and location of the place of business for each subcontractor and evidence of the subcontractor’s valid Alaska business license. A bidder for a construction contract shall also submit evidence of each subcontractor’s registration under AS 08.18.
B. A bidder may replace a listed subcontractor if the subcontractor:
1. Fails to comply with AS 08.18;
2. Files for bankruptcy or becomes insolvent;
3. Fails to execute a contract with the bidder involving performance of the work for which the subcontractor was listed and the bidder acted in good faith;
4. Fails to obtain bonding;
5. Fails to obtain insurance acceptable to the borough;
6. Fails to perform the contract with the bidder involving work for which the subcontractor was listed;
7. Must be substituted in order for the prime contractor to satisfy required state and federal affirmative action requirements;
8. Refuses to agree to abide with the bidder’s labor agreement; or
9. Is determined by the borough manager not to be a responsible bidder.
C. If a bidder fails to list a subcontractor or lists more than one subcontractor for the same portion of work and the value of that work is in excess of half of one percent of the total bid, the bidder shall be considered to have agreed to perform that portion of work without the use of a subcontractor and to have represented the bidder to be qualified to perform the work.
D. A bidder who attempts to circumvent the requirements of this section by listing as a subcontractor another contractor who, in turn, sublets the majority of the work required under the contract violates this section.
E. If a contract is awarded to a bidder who violates this section, the borough manager may:
1. Cancel the contract; or
2. After notice and a hearing, assess a penalty on the bidder in an amount that does not exceed ten percent of the value of the subcontract at issue. (Ord. 96-4 §2(part), 1996).
17.02.040 Bid security.
A. Bid security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the borough manager to exceed one hundred thousand dollars.
B. Bid security must be a bond provided by a surety company authorized to do business in the state of Alaska or a certified check.
C. The borough manager shall reject a bid that does not comply with the bid security requirement unless the borough manager determines that the bid fails to comply in a nonsubstantial manner with the security requirements. (Ord. 96-4 §2(part), 1996).
17.02.050 Public notice of invitation to bid.
A. The borough manager shall give public notice of the invitation to bid at least thirty days before the date for the opening of bids. If a determination is made in writing by the borough manager that a shorter notice period is necessary for a particular bid, the thirty-day period may be shortened. Notice may include either or both of the following:
1. Publication in a newspaper of general circulation in the borough;
2. Notices posted in three public places within the area where the work is to be performed or the services or supplies furnished.
B. Failure to comply with the notice requirements of this section does not invalidate a bid or the award of a contract. (Ord. 96-4 §2(part), 1996).
17.02.060 Bid Opening.
A. The borough manager shall open bids at the time and place designated in the invitation to bid. All bid openings are open to the public.
B. The bids are not open for public inspection until after the notice of intent to award a contract is given.
To the extent the bidder designates and the borough manager concurs, trade secrets and other proprietary data contained in a bid document are confidential. (Ord. 96-4 §2(part), 1996).
17.02.070 Bid acceptance and bid evaluation.
Bids shall be conditionally accepted without alteration or correction, except as authorized in Section 17.02.080. The borough manager shall evaluate bids based on the best interests of the borough. (Ord. 96-4 §2(part), 1996).
17.02.080 Late bids--Correction or withdrawal of bid--Cancellation of awards.
A. Bids received after the bid due date and time indicated on the invitation to bid may not be accepted unless the delay was due to an error of the borough.
B. Bids may be withdrawn at any time prior to the bid due date.
C. Correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on bid mistakes, may be permitted where appropriate. Mistakes discovered before bid opening may be modified or withdrawn by written or telegraphic notice received in the office designated in the invitation for bids prior to the time set for bid opening. After the opening, corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake was made, the nature of the mistake and the bid price actually intended. However, downward correction of a bid, which would displace the apparent low bidder, shall only be permitted if the error made and the intended bid price can be determined solely from the bid documents. Upward correction of a bid, established from the bid documents or other evidence, shall be permitted only if the corrected bid is not within two percent of the next low responsive bid. All decisions to permit the correction or withdrawal of bids, or to cancel award of contracts based on bid mistakes, shall be supported by a written determination made by the purchasing agent.
D. The borough manager may reject all bids if the borough manager determines that rejection of all bids is in the best interest of the borough. (Ord. 96-4 §2(part), 1996).
17.02.090 Contract award after bids.
A. Subject to the borough manager’s right to reject all bids, except as provided in subsections B, C and D of this section, the borough manager shall award a contract based on the solicited bids with reasonable promptness by written notice to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and criteria set out in the invitation to bid, or as waived by the borough manager.
B. In determining the lowest responsible and responsive bidder the borough manager shall apply a borough bidder preference of five percent. In this subsection, "borough bidder" means a person who:
1. Holds a current Alaska business license;
2. Submits a bid for goods, services, or construction under the name as appearing on the person’s current Alaska business license;
3. Has maintained a place of business within the borough staffed by the bidder or an employee of the bidder for a period of six months immediately preceding the date of the bid;
4. Is incorporated or qualified to do business under the laws of the state of Alaska; or is a sole proprietorship, and the proprietor is a resident of the state of Alaska; or is a partnership, and all partners are residents of the state of Alaska; and
5. If a joint venture, is composed of at least one venture that qualifies under subsection (B)(1) through (4) of this section. (Ord. 96-4 §2(part), 1996).
17.02.100 Multi-step sealed bidding.
When it is considered impractical to initially prepare a definitive purchase description to support an award based on price, the borough manager may issue an invitation to bid requesting the submission of unpriced technical offers to be followed by an invitation to bid to the bidders whose offers are determined to be technically qualified under the criteria set out in the first solicitation. (Ord. 96-4 §2(part), 1996).
17.02.110 Competitive sealed proposals.
A. The borough manager may determine that it is either not practicable or not advantageous to the borough to procure supplies, services or construction by competitive sealed bidding that would otherwise be procured by that method. When the borough manager determines that the use of competitive sealed bidding is either not practicable or not advantageous to the borough, a contract may be entered into by competitive sealed proposals.
B. When the borough manager determines that it is advantageous to the borough, the borough manager may issue a request for proposals requesting the submission of offers to provide construction in accordance with a design provided by the offeror. The request for proposals shall require that each proposal submitted contain a single price that includes the design/build. (Ord. 96-4 §2(part), 1996).
17.02.120 Request for Proposals.
A. A request for competitive sealed proposals must contain the date, time and place for delivering proposals, a description of the supplies, construction or services to be provided under the contract, and the terms under which the supplies, construction or services are to be provided. The request shall require the offeror to submit evidence of the offeror’s valid Alaska business license and, no later than five working days after identifying which proposal is most advantageous to the borough, to list subcontractors the offeror proposes to use in the performance of the contract. The list shall include the name and location of the business for each subcontractor and evidence of the subcontractor’s valid Alaska business license. An offeror for a construction contract shall also submit evidence of the offeror’s registration under AS 01.18 and evidence of registration for each listed subcontractor.
B. A request for proposals must contain that information necessary for an offeror to submit a proposal or contain references to any information that cannot reasonably be included with the request.
C. Notice of a request for proposals may be given in accordance with procedures under Section 17.02.050. The borough manager may use additional means considered appropriate to notify prospective offerors of the intent to enter into contract through competitive sealed proposals.
D. The provisions of Section 17.02.020(B) apply to competitive sealed proposals. (Ord. 96-4 §2(part), 1996).
17.02.130 Treatment of proposals.
The borough manager shall open proposals so as to avoid disclosure of contents to competing offerors during the process of negotiation. To the extent that the offeror designates and the borough manager concurs, trade secrets and other proprietary data contained in the proposal documents are confidential. (Ord. 96-4 §2(part), 1996).
17.02.140 Discussion with responsible offeror and revisions to proposals.
Discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors reasonably susceptible of being selected for award shall be accorded fair and equal treatment with respect to the opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and before the award of the contract for the purpose of obtaining best and final offers. In conducting discussions the borough manager may not disclose information derived from proposals submitted by competing offerors. (Ord. 96-4 §2(part), 1996).
17.02.150 Award of contract.
A. Subject to the borough manager’s right to reject all proposals in the best interests of the borough, the borough manager shall award a contract under competitive sealed proposals to the responsible and responsive offeror whose proposal is determined to be the most advantageous to the borough taking into consideration price and other factors.
B. In determining whether a proposal is advantageous to the borough, the borough manager shall take into account whether the offeror qualifies as a borough bidder under Section 17.02.090(B).
C. The borough manager may reject all or any part of any proposals. (Ord. 96-4 §2(part), 1996).
17.02.160 Contract execution.
A contract awarded under competitive sealed proposals must contain:
A. The amount of the contract stated on its first page;
B. The date for the supplies to be delivered or the dates for construction or services to begin and be completed; and
C. A description of the supplies, construction or services to be provided. (Ord. 96-4 §2(part), 1996).
17.02.170 Emergency contracts.
Contracts may be made under emergency conditions when the borough assembly or borough manager determines there exists a threat to public health, welfare or safety; when a situation exists that makes a procurement through competitive sealed bidding or competitive sealed proposals impracticable or contrary to the public interest; or to protect public or private property. An emergency contract need not be made through competitive sealed bidding or competitive sealed proposals but shall be made with competition that is practicable under the circumstances. (Ord. 96-4 §2(part), 1996).
17.02.180 Definitions.
"Bid," as the term is used in this chapter, means an offer to perform a contract for work and labor or supplying materials or goods at a specified price.
"Proposal," as the term is used in this chapter, means an offer of terms and conditions with reference to some work or undertaking, the acceptance of which will create a contract. (Ord. 96-4 §2(part), 1996).