Chapter 3.20
COMPETITIVE BIDDING
Sections:
3.20.010 Advertising contracts.
3.20.020 Contract amendments (including change orders and extra work).
3.20.030 Contracts under certain dollar amounts.
3.20.040 Public infrastructure contracts.
3.20.060 Equipment repair and overhaul.
3.20.070 Contracts for price-regulated items.
3.20.080 Purchases under federal contracts.
3.20.090 Copyrighted materials.
3.20.100 Investment contracts.
3.20.120 Product prequalification.
3.20.130 Requirements contracts.
3.20.140 Single seller of product required.
3.20.150 Purchase of used personal property.
3.20.160 Information technology contracts.
3.20.170 Telecommunications systems contracts.
3.20.180 Telecommunications services.
3.20.190 Hazardous material removal and oil cleanup.
3.20.200 Insurance and employee benefits.
3.20.010 Advertising contracts.
The city may purchase advertising, regardless of dollar value, without competitive bidding. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.020 Contract amendments (including change orders and extra work).
An amendment for additional work or product which is reasonably related to the scope of work under the original contract, including change orders, extra work, field orders, or other change in the original specifications that increases the original contract price, may be made with the contractor or without competitive bidding subject to the following conditions:
(A) The original contract was let by: (1) competitive bidding or alternative procurement process; (2) unit prices or additive alternates were provided that established the cost basis for the additional work or product; and (3) a binding obligation exists on the parties covering the terms and conditions of the additional work; or
(B) The original contract was let pursuant to a declaration of emergency, in accordance with ORS 279.015(4)(a) and 279.015(5) and OAR 125-310-0030; or
(C) The additional work is required by reason of existing regulations or ordinances of federal, state or local agencies, dealing with the prevention of environmental pollution and the preservation of natural resources, that affect performance of the original contract and such regulations or ordinances, as provided in ORS 279.318, either were not cited in the original contract or were enacted or amended after submission of the successful bid or proposal; or
(D) The original contract was for the renovation or remodeling of a building;
(E) Except for amendments entered into pursuant to subsections (A) to (D) of this section, the aggregate increase resulting from all amendments to a contract shall not exceed 20 percent of the initial contract price. Contracts for the renovation or remodeling of buildings may have aggregate amendments not exceeding 33 percent of the initial contract price; provided, however, that amendments made pursuant to subsection (A) of this section are not to be applied against either the 20 percent or the 33 percent aggregate limit on contract amendments; provided, further, that contracts amended pursuant to subsections (B) or (C) of this section are not subject to either the 20 percent or the 33 percent aggregate limit on contract amendments.
If the original contract required the contractor to provide a performance and payment bond, and the city has terminated the contract and notified the surety of such termination, the city may allow the contractor’s surety an opportunity to provide a substitute contractor to complete performance of the original contract. Such substitute performance, and any amendment of the original contract that makes a substitute contractor a party to the contract, and is not an award of a public contract for purposes of ORS 279.015(1), shall not be subject to the competitive procurement provisions of ORS 279.005 through 279.111. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.030 Contracts under certain dollar amounts.
(A) The city may, in its discretion, let public contracts not to exceed $75,000 for the purchase of goods, materials, supplies and services without competitive bidding if the city has determined that the awarding of the contract without competitive bidding will result in cost savings and the following conditions are met:
(1) The contract is for a single project and is not a component of or related to any other project;
(2) When the amount of the contract does not exceed $5,000, the city is exempt from competitive bidding (pursuant to ORS 279.015(1)(d)); however, the city shall, where practical, obtain competitive quotes;
(3) When the amount of the contract is more than $5,000, but less than $75,000, the city shall, at minimum, obtain three informally solicited, competitive quotes. The city shall keep a written record of the source and amount of the quotes received. If three quotes are not available, a lesser number will suffice; provided, that a written record is made of the effort to obtain the quotes;
(4) The required goods, materials, supplies or services are unavailable from a qualified rehabilitation facility as provided in ORS 279.850; and
(5) The city shall encourage minority, women-owned and emerging small businesses to participate in its purchasing processes, where applicable, by notifying the Advocate for Minority, Women and Emerging Small Business as required by ORS 200.035.
(B) The city may, in its discretion, let public contracts for trade-related projects, i.e., construction, maintenance, repair, or similar labor and materials contracts, without competitive bidding if the city has determined that the awarding of the contract without competitive bidding will result in cost savings and the following conditions are met:
(1) The contract is for a single project and is not a component of or related to any other project;
(2) When the amount of the contract does not exceed $5,000, the city should, where feasible, obtain competitive quotes;
(3) When the amount of the contract is more than $5,000 but less than $75,000, except as provided in subsection (B)(4) of this section, the city shall obtain a minimum of three competitive quotes. The city shall keep a written record of the source and amount of the quotes received. If three quotes are not available, a lesser number will suffice; provided, that a written record is made of the effort to obtain the quotes;
(4) When the contract is for maintenance or repair of roads, highways or parking lots and is less than $75,000, the city may let the contract without competitive bidding if at least three competitive quotes are obtained. The city shall keep a written record of the source and amount of the quotes received and comply with the requirements, as applicable, of subsection (B)(6) of this section. If three quotes are not available, a lesser number will suffice, provided a written record is made of the effort to obtain the quotes;
(5) When the contract is a public improvement contract of less than $75,000, and the bidders are being drawn exclusively from a list of certified emerging small businesses maintained by the Office of Minority, Women and Emerging Small Business, the city may let the contract without formal competitive bidding after a good faith effort to obtain a minimum of three competitive quotes from emerging small businesses. To obtain maximum exposure for all firms and guard against favoritism, care shall be taken to obtain quotes from different firms each time the list is used. The city shall keep a written record of the source and amount of the quotes received and comply with the requirements, as applicable, of subsection (B)(6) of this section. A lesser number of quotes will suffice provided a written record is maintained of the effort to obtain three quotes; and
(6) When the contract is for a “public improvement” as defined in ORS 279.011(8) or for “public works” as defined in ORS 279.348(3) and the contract price exceeds $25,000 but is less than $75,000, the city and the contractor shall comply with:
(a) The prevailing wage provisions of ORS 279.348 to 279.365, when applicable;
(b) The performance bond requirements of ORS 279.029;
(c) The contractor registration requirements of ORS Chapter 701; and
(d) Any other law applicable to such a contract.
(C) If more than one supplier may be available and the total purchase is estimated to exceed $75,000, the city shall select a contractor through competitive bidding. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.040 Public infrastructure contracts.
(A) The city may, in its discretion, let public contracts not to exceed $250,000 for construction projects involving public infrastructure without competitive bidding. For the purposes of these exemptions, public infrastructure includes but is not limited to: (1) the construction, reconstruction or upgrading of any water, sanitary sewer or storm sewer system; (2) the construction, grading, graveling, paving or other surfacing of any street, or the opening, laying out, widening, extending or altering of any street; and (3) the construction or reconstruction of sidewalks. Such contracts may be let if the following conditions are met:
(1) The contract is for a single project, and is not a component of or related to any other project;
(2) The city council, acting as the contract review board, approves written findings that justify the exemption of the contract from public bidding, based upon the following factors as relevant to a given project:
(a) Operational, budget and financial data.
(b) Public benefits.
(c) Value engineering.
(d) Specialized expertise required.
(e) Public safety.
(f) Market conditions.
(g) Technical complexity.
(h) Funding sources.
(3) When the contract is for a “public improvement” as defined in ORS 279.011(8) or for “public works” as defined in ORS 279.348(3) and the contract price exceeds $25,000, the city and the contractor shall comply with:
(a) The prevailing wage provisions of ORS 279.348 to 279.365, when applicable;
(b) The performance bond requirements of ORS 279.029;
(c) The contractor registration requirements of ORS Chapter 701; and
(d) Any other law applicable to such a contract.
(B) If more than one supplier may be available and the total purchase is estimated to exceed $250,000, the city shall select a contractor through competitive bidding.
(C)(1) The city of Cornelius is hereby authorized to sole source city public improvement contracts for construction, maintenance, repair of public rights-of-way (or utilities located in city rights-of-way) where the work to be done under the public improvement contract is adjacent, connecting or in close proximity (i.e., three to six blocks) to where a private developer is having construction work done on infrastructure in their development and the public improvement portion is estimated to cost less than $500,000.
(2) The mayor and city council may periodically adjust the limit of contracts for which this exemption is applicable by resolution, based upon published indices of construction cost trends. [Ord. 849 § 3 (Exh. 1), 2004; Ord. 887 §§ 1, 2, 2007.]
3.20.050 Emergency contracts.
(A) Pursuant to the requirements of this section, the city may in its discretion enter into a public contract without competitive solicitation if an emergency exists. Emergency means circumstances that could not have been reasonably foreseen that create a substantial risk of loss, damage, interruption of services or threat to public health or safety that requires prompt execution of a contract to remedy the condition.
(B) Regardless of the dollar value of the contract, when the city enters into an emergency contract, it shall:
(1) Make a written declaration of emergency, including findings describing the emergency circumstances that require the prompt performance of the contract, stating the anticipated harm from failure to establish the contract on an expedited basis; and
(2) Encourage competition to the extent reasonable under the circumstances; and
(3) Record the measures taken under subsection (B)(2) of this section to encourage competition, the amounts of the bids, quotes or proposals obtained, and the reason for selecting the contractor.
(C) Pursuant to ORS 279.015(4) and (5), the city council, the city manager, or another officer authorized by the city shall declare the existence of the emergency as required by subsection (B) of this section, which shall authorize the city to enter into an emergency contract.
(D) Any contract awarded under this exemption and delegation shall be awarded within 60 days following declaration of the emergency unless an extension is granted by the city council pursuant to ORS 279.015(5) and ORS 279.727. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.060 Equipment repair and overhaul.
(A) The city may enter into a public contract for equipment repair or overhaul without competitive bidding, subject to the following conditions:
(1) Service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing; or
(2) Service or parts required are for sophisticated equipment for which specially trained personnel are required and such personnel are available from only one source; and
(3) The city purchases within the limits and pursuant to the methods in subsection (B) of this section.
(B) Regardless of the price of the contract, the city shall document in its procurement file the reasons why either competitive bids or quotes were deemed to be impractical and may then directly enter into the contract. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.070 Contracts for price regulated items.
The city may, regardless of dollar value and without competitive bidding, contract for the direct purchase of goods or services where the rate or price for the goods or services being purchased is established by federal, state, or local regulatory authority. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.080 Purchases under federal contracts.
(A) When the price of goods and services has been established by a contract with an agency of the federal government pursuant to a federal contract award, the city may purchase the goods and services in accordance with the federal contract without subsequent competitive bidding. In exercising this authority under this exemption, the city shall:
(1) Include in the contract file a letter or memoranda from the appropriate federal agency granting permission to the city to purchase under the federal contract; and
(2) Include in the contract file documentation showing the cost savings to be gained from anticipated purchases from the federal contract.
(B) The city shall not contract pursuant to this section in the absence of a substantial cost savings to be realized by using this method. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.090 Copyrighted materials.
The city may, without competitive bidding and regardless of dollar amount, purchase copyrighted materials if there is only one known supplier available for such goods. Examples of copyrighted materials covered by this exemption may include, but are not necessarily limited to, new adopted textbooks, workbooks, curriculum kits, reference materials, audio and visual media, and nonmass-marketed software. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.100 Investment contracts.
The city may, without competitive bidding and regardless of dollar amount, contract for the purpose of the investment of public funds or the borrowing of funds by the city when such investment or borrowing is contracted pursuant to duly enacted statute, ordinance, charter or constitution. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.110 Food contracts.
(A) The intent of this section is to provide a method for the city to procure food products which are available for a limited period of time at “lower than normal” prices (also referred to as “spot buys”).
(B) The city may procure an unlimited dollar value of food using a competitive bid or quote process when all of the following conditions are present:
(1) A nonexclusive requirements contract or regularly scheduled bid process already exists for the item being purchased;
(2) The proposed unit price of the item(s) to be purchased is significantly less than a comparable item’s price on an existing requirements contract or recent bid (as described in subsection (C) of this section) and the amount saved exceeds any additional administrative costs incurred to purchase using this exemption;
(3) The product being purchased has limited availability (i.e., the product may no longer be available upon completion of normal bid processes);
(4) Any requirements contracts currently in place for the item being purchased contain clauses allowing for the use of this exemption; and
(5) The purchase does not jeopardize fulfillment of a guaranteed minimum volume under an existing requirements contract.
(C) Purchases may only be made under this exemption after the city documents the following in its procurement file: the city’s attempt and method to obtain quotes from at least three sources; the written quote or bid, if obtained; item specifications; quantity; unit pricing; delivery; and other pertinent information. Contract or bid pricing used for comparison shall be representative of current pricing available and shall have been obtained or confirmed no more than six months prior to the current purchase. When practical, written quotes are recommended. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.120 Product prequalification.
(A) When specific design or performance specifications must be met or such specifications are impractical to create or reproduce for a type of product to be purchased, the city may specify a list of approved or qualified products by reference to the prequalified product(s) of particular manufacturers or sellers in accordance with the following product prequalification procedures:
(1) Reasonable efforts have been made to notify all known manufacturers and vendors of competing products of the city’s intent to compile a list of prequalified products and of the opportunity to submit applications for including their product(s) on the list of prequalified products. Notice may be provided by advertisement in a trade journal of state-wide distribution, when possible; or, instead of advertising, the city may provide direct written notice to manufacturers and vendors appearing on the appropriate list maintained by the city; and
(2) Manufacturer and vendor applications to include products in the city’s list of prequalified products are accepted up to 15 calendar days (unless otherwise specified in the advertisement or the city’s written notice) prior to the initial advertisement for bids or proposals on the type of product to be purchased.
(B) If an application for including a product in a list of prequalified products is denied, the city shall promptly provide the applicant with written notice of the denial. The applicant may appeal to the designated city authority, requesting review and reconsideration of the denial. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.130 Requirements contracts.
Requirements contracts may be established for the purposes of minimizing paperwork, achieving continuity of product, securing a source of supply, reducing inventory, and reducing lead time for ordering. The city may enter into requirements contracts whereby it is agreed to purchase goods or services for an anticipated need at a predetermined price provided the contract is let by a competitive procurement process pursuant to the requirements of ORS 279.005 to 279.111 and this chapter.
(A) Agencies may purchase the goods and services from a contractor awarded a requirements contract without first undertaking additional competitive solicitation.
(B) The term of the contract, including renewals, shall not exceed five years unless otherwise exempted pursuant to ORS 279.015. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.140 Single seller of product required.
Subject to the requirements of OAR 125-340-0030, the city may purchase without competitive bidding if there is only one seller of a product of the quality required, or if the efficient utilization of existing equipment or supplies requires specification of a compatible product for which there is only one seller. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.150 Purchase of used personal property.
(A) Subject to the provisions of this section, the city may purchase used property or equipment without competitive bidding and without obtaining competitive quotes, if it has determined that the purchase will result in cost savings to the city and will not diminish competition or encourage favoritism. “Used personal property or equipment” is property or equipment which has been placed in its intended use by a previous owner or user for a period of time recognized in the relevant trade or industry as qualifying the personal property or equipment as “used,” at the time of the city purchase. “Used personal property or equipment” generally does not include property or equipment if the city was the previous user, whether under a lease, as part of a demonstration, trial or pilot project, or similar arrangement.
(B) For purchases of used personal property or equipment costing less than $75,000, the city, where feasible, shall obtain three competitive quotes, unless the city has determined and documented that a purchase without obtaining competitive quotes will result in cost savings to the city and will not diminish competition or encourage favoritism.
(C) For purchases of used personal property or equipment totaling $75,000 or up to the maximum dollar limitation stated in OAR 125-310-0012, the city shall obtain and keep a written record of the source and amount of quotes received. If three quotes are not available, a written record must be made of the attempt to obtain quotes.
(D) If the total purchase is estimated to exceed the maximum dollar limitation stated in OAR 125-310-0012, the city may submit a written request for a written delegation of authority from the city council prior to making the purchase. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.160 Information technology contracts.
The city may enter into a contract to acquire information technology hardware and software, without competitive bidding, subject to the following conditions:
(A) If the contract amount does not exceed $75,000, the city shall, as a minimum, follow OAR 125-310-0012. Prior to selecting a contractor, reasonable efforts shall be made to solicit proposals from three or more vendors. Justification of award shall be documented and become a public record of the city.
(B) If the contract amount exceeds $75,000, the city shall determine and use the best procurement method, pursuant to ORS 279.005 through 279.111, and shall solicit written proposals in accordance with the requirements of the model public contract rules. The city shall document the evaluation and award process, which will be part of the public record justifying the award.
(C) If the amount of the contract is estimated to exceed $500,000, the city shall provide proposers an opportunity to review the evaluation of their proposals before final selection. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.170 Telecommunications systems contracts.
(A) An agency having delegated purchasing authority may enter into a contract to acquire telecommunications system hardware and software, without competitive bidding, subject to the following conditions:
(1) If the contract amount does not exceed $75,000, the city shall as a minimum obtain competitive quotes. Prior to selection of a contractor, reasonable efforts will be made to solicit proposals from three or more vendors. Justification of award shall be documented and become a public record of the city;
(2) If the contract amount exceeds $75,000, the city shall determine and use the best procurement method, pursuant to ORS 279.005 through 279.111, and shall solicit written proposals in accordance with the requirements of the model public contract rules (OAR Chapter 137, Division 030).
(B) The telecommunications solicitation authorized in subsection (A)(2) of this section shall:
(1) State the contractual requirements in the solicitation document;
(2) State the evaluation criteria to be applied in awarding the contract and the roles of any evaluation committee. Criteria that would be used to identify the proposal that best meets the city’s needs may include, but are not limited to, cost, quality, service and support, compatibility and interconnectivity with the state’s existing telecommunications systems, product or system reliability, vendor viability and financial stability, operating efficiency, and expansion potential;
(3) State the provisions made for bidders or proposers to comment on any specifications which they feel limit competition; and
(4) Be advertised in accordance with ORS 279.025 and OAR 137-030-0015. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.180 Telecommunications services.
(A) This section is intended to allow the city to secure the most competitive, cost-effective telecommunications services of the quality needed to meet all service performance requirements while minimizing administrative and service delivery costs.
(B) In determining the appropriate procurement method for telecommunications services, the city shall: (1) comply with the requirements of ORS 291.038; and (2) determine whether competition exists. In determining whether competition exists, the city may consider the following factors:
(1) The extent to which alternative providers exist in the relevant geographic and service market. The relevant market will vary with the geographic area and from service category to service category, depending upon changes in the regulatory environment and competitive marketplace. Thus, the relevant market will depend on the facts and circumstances of each case. For example, an alternative local access service or private line provider might offer services in Portland, but not in Medford or the rest of the state;
(2) The extent to which alternative services offered are comparable or substitutable in technology, service provided, and performance; (For example, if the city requires digital services, analog services are not comparable or substitutable, or if the city requires fiber optic technology, then copper, microwave or satellite transmission technology may not be comparable or substitutable.)
(3) The extent to which alternative providers can respond to the city’s interests in consistency and continuity of services throughout its service area, volume discounts, equitable service for all users, centralized management, and limiting city liability. For example, to be considered as the state’s telephone long distance provider, any long distance service vendor must be able to meet, support and interface with the state’s centralized automated billing requirements. The city must document for the record its findings on these factors or any other factors used in determining whether competition exists. In developing its findings, the city may solicit the information either through informal telephone or written contacts, or through a formal request for information (RFI).
(C) Upon determining that competition does not exist for the relevant service and geographical area, the city may proceed to secure the service on a sole source basis, as described in OAR 125-300-0100, and follow all applicable rules and procedures. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.190 Hazardous material removal and oil cleanup.
(A) The city may enter into public contracts without competitive bidding, regardless of dollar amount, when ordered to clean up oil or hazardous waste pursuant to the authority granted the Department of Environmental Quality (DEQ) under ORS Chapter 466, especially ORS 466.605 through 466.680, and such DEQ order necessitates the prompt establishment and performance of the contract in order to comply with the statutes regarding spill or release of oil or hazardous material that has created an emergency condition. Comprehensive cleanup rules are set forth at OAR 340-122-205 to 340-122-360. In exercising its authority under this exemption, the city shall:
(1) To the extent reasonable under the circumstances, encourage competition by attempting to make informal solicitations or to obtain informal quotes from potential suppliers of goods or services;
(2) Make written findings describing the circumstances requiring cleanup or a copy of the DEQ order ordering such cleanup; and
(3) Record the measures taken under subsection (A)(1) of this section to encourage competition, the amount of the quotes or proposals obtained, if any, and the reason for selecting the contractor selected.
(B) The city shall not contract pursuant to this exemption in the absence of an order from the Department of Environmental Quality to clean up a site with a time limitation that would not permit hiring a contractor under the usual competitive bidding procedures. [Ord. 849 § 3 (Exh. 1), 2004.]
3.20.200 Insurance and employee benefits.
The city may purchase employee benefit insurance without competitive bidding, regardless of dollar amount. [Ord. 849 § 3 (Exh. 1), 2004.]