Chapter 3.20
PUBLIC PROCUREMENT AND CONTRACTING
Sections:
3.20.030 Public works projects.
3.20.040 Professional and personal services.
3.20.050 Procurement of insurance or bonds.
3.20.070 Competitive negotiation (requests for proposals).
3.20.080 Interlocal cooperative purchasing agreements.
3.20.100 Procurement records and reporting.
3.20.130 Local business encouragement.
3.20.140 Bid protest procedures.
3.20.150 Sale of the city’s personal property.
3.20.160 Monitoring and compliance.
3.20.010 General.
(1) Purpose. This chapter establishes the city of La Center (the “city’s”) policies and procedures for purchasing supplies and materials and for contracting for services. It is the city’s policy to follow state requirements for the expenditure of public funds, to provide a fair forum for those interested in bidding on public contracts and to help ensure that public contracts are performed satisfactorily and efficiently at least cost to the public, while avoiding fraud and favoritism in their award. The policies and procedures detailed in this chapter are mandatory and city staff risk disciplinary action for unauthorized departure from the requirements of this chapter.
(2) Goals. The city’s procurement goals include:
(a) Maintaining the quality and integrity of the city’s procurement system;
(b) Maximizing the procurement value of city funds;
(c) Providing a uniform citywide procurement system to the extent practical and feasible; and
(d) Assuring fair and equitable treatment of people who deal with the city’s procurement system.
(3) Scope.
(a) This chapter applies to public work projects; the procurement of professional and personal services, including architectural and engineering design services; the acquisition of supplies, equipment, and materials; and the acquisition of services through competitive negotiation, including telecommunication and data processing services.
(b) This chapter does not apply to the acquisition, sale, conveyance, license, or lease of real property. If federal or state funding, financial assistance, or grant funding is involved in the proposed acquisition and/or contract, the program management requirements should be obtained from the appropriate agency and all required grant management procedures must be followed.
(c) To instill public confidence in the award of public contracts and the expenditure of public funds, the city adopts the following code of ethics for public contracting:
(i) Actions of city employees shall be impartial and fair.
(ii) Government decisions and policies shall be made in compliance with required procedures and within the proper channels of government structure.
(iii) Public employment shall not be used for personal gain, and city employees shall not solicit, accept, or agree to accept any gratuity for themselves, their families or others that would or could result in personal gain. Purchasing decisions shall be made impartially, based upon the city’s specifications for the contract and the responses of those bidding on the contract.
(iv) No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. This conflict of interest extends beyond the individual employee, officer, or agent to include that individual’s immediate family members, partner, and other employers.
(4) Controlling Laws. All purchases shall comply with the appropriate and relevant federal, state, and city regulations and policies. If, and to the extent, the appropriate and relevant federal or state laws, regulations, grant requirements, or other requirements then existing vary from the requirements of this chapter, such laws, regulations, grant requirements, or other requirements should be followed. Contact the city attorney’s office when questions regarding potential conflicts arise.
(5) Proper Authorization. Only authorized individuals may obligate the city to acquire goods and services. Individuals purchasing goods on behalf of the city without proper authorization may be personally liable to the vendor, the city, or both. Purchase requisitions shall be made on forms approved and adopted by finance, which shall be used to commit city funds for the acquisition of goods or services. In their capacity as the city’s purchasing agents, the finance manager and finance department staff are authorized to approve purchase requisitions on behalf of the city in accordance with this chapter.
(6) Purchase Requisition. The purchase requisition is the first step in the purchasing procedure. The requisition should be submitted to the department manager, for approval of essential need, and the finance department, for budget approval and, if approved, acquisition. The purchase requisition should be submitted in a timely fashion to allow adequate time for review, price quotations, and approval of the purchase requisition. The length of time needed to obtain an item or service will depend upon several factors, such as the characteristics of the product or service sought, the number of alternative vendors or contractors, and the availability of the product or service. A purchase requisition is an internal instrument that communicates a department’s needs to finance. A purchase requisition should not be conveyed directly to a vendor. If you have questions regarding how to complete a purchase requisition, please contact finance.
(7) Contracts. All contracts entered into for public work projects, the procurement of professional and personal service, and the acquisition of supplies, equipment, and materials must be on forms approved by the finance department. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.020 Procurement process.
(1) Selecting the Proper Procedure.
|
SUBJECT MATTER |
EXPECTED TOTAL COST (Including sales tax, freight, etc.) |
|---|---|
|
Public Works Projects |
|
|
Public Works Projects (Using City Forces) |
$45,000 or less, Single Craft |
|
$90,000 or less, Multiple Crafts |
|
|
Public Works Projects (Using Small Works Roster) |
$40,000 or less |
|
Public Works Projects (Bidding) |
All Other |
|
Professional and Personal Services |
No Limit |
|
Competitive Bidding (Other Than Public Work Projects) |
$100,000 or more |
|
$10,000 – $99,999 |
|
|
Less than $10,000 |
|
|
Small Purchases |
$2,000 or less |
|
Competitive Negotiation |
$100,000 or more |
|
Less than $100,000 |
|
|
Interlocal Cooperative Purchasing Agreements |
No Limit |
|
Exemptions (All Procurements) |
|
|
Emergency Procurements |
No Limit |
|
Sole Source Procurements |
No Limit |
(2) Definitions. The following definitions shall apply in the administration of this chapter:
(a) “Bidder” means any vendor, supplier, contractor, person, or entity that seeks to enter into a commercial relationship with the city, including, but not limited to, those who respond to requests for bids and proposals. “Bidder” includes, but is not limited to, one or more principals, owners, officers, directors, shareholders, partners, members, managers, or control persons of the person submitting the bid, and persons associated or affiliated with the person submitting a bid or proposal.
(b) “Finance” means the La Center finance department, in particular the finance manager or other official as designated by the mayor to administer this chapter.
(c) “Person” includes both natural persons, corporations, partnerships, sole proprietorships, limited liability companies, and any other business entity, combination or association, whether for profit or nonprofit.
(d) “Public work” is defined in RCW 39.04.010, but generally means all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the city.
(e) “Responsible” in the context of bidders has the following meaning and characteristics:
(i) For public work contracts, a bidder is determined to be responsible as provided in RCW 39.04.350, including those supplemental criteria identified in the bidding documents.
(ii) For all other projects, bidders are determined to be responsible as provided in the bidding documents or request for proposals. If no criteria are provided in the bidding documents or request for proposals, the determination will be made through consideration of the following factors, any one of which will suffice to determine a bidder is either not the lowest responsible bidder or the bidder’s proposal is not the most advantageous to the city:
(A) The ability, capacity, and skill of the bidder to perform the contract or provide the service required.
(B) The character, integrity, reputation, judgment, experience, and efficiency of the bidder.
(C) Whether the bidder can perform the contract within the time specified.
(D) The quality of performance of previous public and private contracts or services, including, but not limited to, the bidder’s failure to perform satisfactorily or complete any written contract. The city’s termination for default of a previous contract with a bidder shall be deemed to be such a failure.
(E) The previous and existing compliance by the bidder with laws relating to the contract or services.
(F) Whether the bidder, under the same or different names, submitted more than one proposal for the same project.
(G) Evidence of collusion with any other bidder, in which case colluding bidders will be restricted from submitting further bids on the subject project or future tenders.
(H) The bidder is not qualified for the work or to the full extent required by the bid.
(I) The bidder has uncompleted work with the city or others or an outstanding dispute on a previous or current contract that might hinder, negatively affect, or prevent the prompt completion of the work bid upon.
(J) The bidder failed to settle bills for labor or materials on past or current public or private contracts.
(K) The bidder has been convicted of a crime arising from a previous public contract, excepting convictions that have been pardoned, expunged, or annulled.
(L) The bidder has been convicted of a crime of moral turpitude or any felony, excepting convictions that have been pardoned, expunged or annulled, whether in this state, in any other state, the United States, or in a foreign country, province, or municipality. Bidders shall affirmatively disclose to the city all such convictions, especially of management personnel or the bidder as an entity, prior to notice of award or execution of a contract, whichever comes first. Failure to make such affirmative disclosure shall be grounds, in the city’s sole option and discretion, for termination for default subsequent to award or execution of the contract.
(M) The bidder will be, more likely than not, unable, financially or otherwise, to perform the work.
(N) The bidder is not authorized, at the time of bid opening, to do business in Washington, is not registered as a contractor in Washington, or otherwise lacks a necessary license, registration, or permit.
(O) Other information as may be secured having a bearing on the decision to award the contract.
(P) Any other factor deemed proper by the city.
(3) Determining the Expected Total Cost of the Purchase.
(a) Anticipated Cost. The anticipated annual need for a particular good or service should be used to determine the appropriate threshold.
(b) Avoiding Thresholds. Requirements must not be divided so as to constitute a lesser threshold under this section.
(c) Annual Cost. Closely related goods will be considered as one purchase on an annual basis when determining which threshold applies.
(d) Total Cost. The total cost of goods or services, including any applicable taxes, freight, set-up, or die charges, shall be considered when determining which threshold applies.
(e) Total Quantity. Requirements for the total quantity of an item shall be considered together when determining which threshold applies.
(f) Items Used in Conjunction. If two or more items are designed or intended to be used in conjunction with each other, the total accumulated costs of all such items shall be considered together to determine which threshold applies, unless these components are not available from a single supplier.
(4) Multiphase Programs. If the total, overall objective of any specific program over a calendar year time is to be completed in phases, the total accumulated cost for all phases will be considered when determining which threshold applies.
(5) Multi-Department Requirements. To the extent practical, the requirements of separate departments and divisions for the same goods or services will be considered together when determining which threshold applies.
(6) Trade-Ins. The value of a trade-in will not be included when determining which threshold applies. However, the trade-in price will be considered when determining the lowest responsive and responsible bid. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.030 Public works projects.
Public works projects, sometimes referred to as “public improvements,” and defined by RCW 39.04.010, generally include qualifying work, construction, alteration, repair, or improvements. Public work projects do not include ordinary maintenance, engineering analysis and architectural design, or other professional services.
(1) Small Public Works Projects. Public work projects valued up to $45,000 and involving only one craft or trade, or public work projects valued up to $90,000 and involving more than one craft or trade, may be performed by city employees without competitive bidding, subject to the requirements of RCW 35.22.620.
(2) Small Works Roster.
(a) Purpose. The city’s small works roster expedites the solicitation and award of bids on public work projects estimated to cost up to $40,000, or the current statutory limit in RCW 39.04.155, whichever is less, by reducing the requirements for advertising, receiving, and awarding bids.
(b) Small Works Roster Contracting. For limited public works projects, including the construction, alteration, repair, or improvement of real property costing less than $40,000, the city may contract without use of a small works roster or the advertisement for bids, so long as the city solicits either electronic or written quotations from a minimum of three contractors listed on an appropriate small works roster and awards the contract to the lowest responsible bidder. After such an award, the city will make available all quotations for public inspection. In addition:
(i) The city may from time to time acquire surplus property from another governmental entity without regard to bid laws.
(ii) The city may also exercise its authority to contract with another public agency through an interlocal agreement to perform any function that either agency is authorized by law to perform. Pursuant to this authority, another public entity could act as the city’s agent or contractor.
(iii) The city may also enter into a cooperative interlocal agreement with another governmental entity for joint or “piggy-back” purchases. In any such cooperative action, the city will ensure that any competitive bidding requirements, including publication and notice, that otherwise apply to the contract are fulfilled to the extent required by RCW 39.34.030.
(c) Limited Public Work Projects. The limited public work project process may be used for public work projects under $40,000, or the current statutory limit in RCW 39.04.155, whichever is less. The city generally uses the full small works roster process to invite bids for limited public work projects from all bidders in the relevant category. However, the city may invite bids from only three bidders, as allowed under RCW 39.04.155(3), if the department manager determines that unique circumstances justify limiting bids.
For limited public work projects, the city may waive the payment and performance bond requirements of Chapter 39.08 RCW, and the retainage requirements of Chapter 60.28 RCW. In such event, the invitation to bid shall so specify. Further, the city shall thereby assume liability for the bidder’s nonpayment of laborers, mechanics, subcontractors, material, persons, suppliers, and taxes imposed under RCW Title 82 that may be due from the limited public work project. However, the city shall have a right of recovery against the bidder for any payments made by the city on the bidder’s behalf.
(d) Posting of Small Works Roster Awards. The city shall make available a list of the contracts that have been awarded as a result of using the small works roster. The list shall contain the name of the bidder, the bidder’s registration number, the amount of the contract, a brief description of the type of work performed, and the date it was awarded. Requests for the list may be made to the city clerk.
(e) Change Order Authority. The finance manager is authorized to sign change orders on small works projects directing contractors to perform additional necessary work to the extent the additional work was unanticipated at the project’s inception, is deemed necessary by the project manager, and is within the scope of the original small works project.
(f) Public Work Project Contracting. Public work projects that are not performed by city employees under subsection (1) of this section and are not contracted out under the small works roster, as provided under subsection (2) of this section, will be awarded by competitive bidding.
(g) Call for Bids. Where competitive bidding is used, the city council must approve the call for bids. Upon approval, the lead department will generate written plans and specifications, which specifications should not contain features that unduly restrict competition.
(i) Advertisement of the call for bids should occur a minimum of 13 days prior to bid opening and notice should be published, at least once, in the city’s official newspaper. Other methods may be used to attract potential bidders in addition to, but not in place of, publication in the city’s official newspaper. For example, notices may be placed on the city’s website or advertised in trade papers or magazines.
(ii) Sealed bids shall be submitted to the city clerk at the location and in the manner specified in the invitation or call for bids. At the appointed time, according to a clock selected by the city clerk, all bids will be opened and publicly read aloud. Bid openings are usually scheduled for 2:00 p.m., Tuesdays.
(iii) Original specifications and the original bid responses will be retained in the city clerk’s vault for review and audit as required.
(h) Award. The contract shall be awarded by city council to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If there are questions or concerns regarding whether a bid is responsive or whether a bidder is responsible, seek the assistance of the city attorney.
(i) Cancellation. The city may cancel a call for bids, may reject any and all bids submitted in whole or in part, and may waive any irregularities or informalities in the bids submitted at its sole discretion and option.
(j) Variation. Variation from the competitive bidding requirements, either by the use of the design-build alternative contracting procedures or the use of emergency or sole source procurement, requires council action and must be authorized pursuant to law. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.040 Professional and personal services.
Professional or personal services are those services involving specialized skill, education, and special knowledge. These services include, but are not limited to, architectural, engineering, design services, accounting, art, bond brokerage, insurance brokerage, legal, real estate appraisal, relocation assistance, title abstracts, surveying, soils analysis, and core testing.
(1) Architectural and Engineering Services. The city must utilize competitive selection for the procurement of professional engineering and architectural services. Professional engineering or architectural services may be selected either from a prequalified list or by advertising a request for qualifications for the specific project. Each department may maintain its own prequalified list and may utilize the lists maintained by other departments, if practicable.
(a) Prequalification. The city may advertise, in the city’s official newspaper and any other media reasonably likely to attract a sufficient number of potential service providers, a general announcement of the city’s projected requirements for any category or type of engineering or architectural services. Such announcement shall specify the manner of submitting a statement of qualifications and performance data and engineering and architectural firms are encouraged to prequalify. When services are needed, the city will evaluate current statements of qualifications and performance data on file with the city, together with those that may be submitted by other firms regarding the proposed project.
(b) Advertisement. With regard to a particular project, the city may advertise, in the city’s official newspaper and any other media reasonably likely to attract a sufficient number of potential service providers, an announcement of its need for professional engineering or architectural services. Where a particular project is identified, the announcement should state concisely the general scope and nature of the project or work for which the services are required and the address of a city representative who can provide further details.
(c) Contract Negotiations. Discussions will be conducted with one or more firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services. Using criteria established by the city for the project, category, or type of services needed, a professional services contractor will be selected that is deemed to be the most highly qualified to provide the services required for the proposed project. The city will negotiate a contract with the most qualified firm at a price that the city determines is fair and reasonable. In making its determination, the city will take into account the estimated value of the services to be rendered as well as the scope, complexity, and professional nature of the services to be provided. If the city is unable to negotiate a satisfactory contract with the firm selected at a price that is determined to be fair and reasonable, negotiations with that firm will be terminated in writing. Another firm will then be selected and the process continued until an agreement is reached or the process is terminated. The mayor shall sign professional or personal service contracts where sufficient funding exists in the annual budget or plans and systems ordinance.
(2) Nonarchitectural and Engineering Services. In general, a competitive process and generally competitive negotiation is encouraged, but not required, for the city’s procurement of professional or personal services that are not classified as architectural or engineering services. Where a competitive process is utilized, it should be administered by finance, if feasible, and should comply with the city’s competitive negotiation requirements, specified in LCMC 3.20.070. Otherwise, procurement and administration of such contracts are usually the responsibility of the mayor/designee or the department director. Regardless of the process utilized, care should be taken to assure that the selected provider is responsible as defined and described in LCMC 3.20.020(2)(e). The mayor shall sign professional or personal service contracts where sufficient funding exists in the annual budget or plans and systems ordinance. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.050 Procurement of insurance or bonds.
The city procures insurance and bonds through the use of an insurance or bond broker. For more information on the procurement of bonds, contact the city’s finance manager. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.060 Competitive bidding.
The competitive bidding method is the preferred method to acquire equipment, material, supplies, and services (other than public work projects and professional and personal services). Where competitive bidding is utilized, the city will select the lowest responsive and responsible bidder.
(1) Bid Specifications. Bid specifications should incorporate a clear and accurate description of the technical requirements for the material, product, or service to be purchased. Such descriptions should not contain features that unduly restrict competition. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equal” description may be used. The responsibility of demonstrating to the city’s satisfaction that a product is “equal” to that specified shall be on the vendor proposing the substitution. Requests for approval of substitutions must be made with sufficient time to allow the city to adequately review the proposal, including time for vendors to respond to questions and requests for additional information or clarification. The city has no obligation to accept proposed substitutions or engage outside consultants or experts to evaluate proposed substitutions. Acceptance of a substitute product proposed as “equal” to that specified will be made in writing and, if made prior to bid, other bidders will be notified if practical and convenient.
(2) Award. When purchases and contracts are obtained by competitive bidding, they shall be awarded to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If there are questions or concerns regarding whether a bid is responsive or whether bidder is responsible, refer to LCMC 3.20.020(2)(e) and the city attorney. Any recommendation that uses life cycle costing to determine the lowest responsive and responsible bidder must be approved by the finance manager. Local taxes generated by the purchase may be considered when determining the lowest responsive and responsible bid as permitted by RCW 39.30.040. When a trade-in option is in the city’s best interests, the price offered on the trade will be considered when determining the lowest responsive and responsible bid.
(3) Cancellation. An invitation for bids may be cancelled or the city, at its sole discretion, may reject any or all bids in whole or in part.
(4) Competitive Bidding – $100,000 or More. At least one notice of the call for bids will be published in the city’s official newspaper, a minimum of 13 days prior to bid opening. Other methods may be used to attract potential bidders in addition to, but not in place of, publication in the city’s official newspaper. For example, notices may be placed on the city’s website or advertised in trade papers or magazines. Finance will facilitate the collection of sealed bids. Sealed bids shall be submitted to finance at the location and in the manner specified in the invitation or call for bids. At the appointed time, according to a clock selected by finance, all bids will be opened and publicly read aloud. Bid awards will be authorized by the city council and will be signed by the mayor. Original specifications and the original bid responses will be retained in the finance office for review and audit as required.
(5) Competitive Bidding – $10,000 to $99,999. Within this dollar range, bid calls are not required to be advertised in the city’s official newspaper, but they may be so advertised. Other methods may be used to attract potential bidders. For example, notices may be placed on the city’s website or advertised in trade papers or magazines. Written bids may be delivered by mail or hand delivery. Bid awards will be authorized by the city council and will be signed by the mayor. Original specifications and the original bid responses will be retained in the finance office for review and audit as required.
(6) Competitive Bidding – Less than $10,000. In response to receipt of a purchase requisition that includes clear, concise written specifications, finance will use their knowledge of supplies, vendors, costs, and the market to facilitate the purchase. Finance will assure that goods and services are obtained as economically as possible, even where the expense of the procurement is small. When the dollar amount is over $5,000, an effort will be made to solicit three written quotes from vendors. Verbal quotes are discouraged, but may be used at finance’s discretion. Care should be taken to provide that quotes are comparable between vendors, e.g., all quotes should include shipping, installation, tax, and delivery time.
(7) Small Purchases.
(a) Purchase Requisitions. The purchase requisitions system is in place to formalize the centralized purchasing process utilized by the city. All small purchases require completion of a purchase requisition. The purchase requisition will be prepared by department staff, the essential need will be approved by the department manager, and budget authority will be approved by the finance manager. After all approvals, finance staff will complete the purchase.
(i) Central Stores. Finance will maintain a central stores for commonly used supplies and equipment for the city. Upon receipt of an approved purchase requisition, finance will review existing inventories and fulfill the request through central stores if possible.
(ii) Credit Cards. In most cases, small purchases will be completed by finance after receiving a fully executed purchase request. There are a limited number of city credit cards held by staff that shall be used only in emergency situations for small purchases. These situations require verbal approval of the purchase by the department manager and a purchase request will be completed by the card holder and submitted for review no greater than five business days after the emergency purchase.
(iii) Designated Gasoline Cards. Finance will issue gasoline purchase cards in consultation with department managers based on city operational needs. All gasoline purchased by the city will be made on gasoline purchase cards. Emergency situations may arise requiring gasoline purchases through other means, but such purchases require approval by the department manager, with a memorandum to finance detailing the circumstances.
(8) Petty Cash. The purchase of small incidental items, under $50.00, may be made using petty cash with approval of the department manager. Petty cash may not be used for fuel purchases except for emergency situations as approved by the department manager. All petty cash purchases must be validated by finance through submission of a receipt for the purchased goods within five working days of the purchase. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.070 Competitive negotiation (requests for proposals).
The city is not obligated to utilize competitive negotiation. However, competitive negotiation can be used, except where constrained by federal and/or state law, as an alternative to the competitive bidding procedures outlined under LCMC 3.20.060 or for the provision of services when the finance manager determines that the use of competitive negotiation is more practicable or more advantageous to the city than the use of competitive bidding.
Where competitive negotiation is used, a request for proposals should be prepared and submitted to an adequate number of qualified sources, as determined by the city, at its sole discretion, to permit reasonable competition consistent with the requirements of the purchase. The request for proposals should identify significant evaluation factors, including price, should provide an indication of their relative importance, and should specify the procedures to be utilized in evaluating proposals. The city may then select the vendor whose proposal is most advantageous to the city, with price and other factors considered.
(1) Cancellation. A request for proposals may be cancelled at any time at the city’s sole discretion and option. The city may reject individual proposals in whole or in part for cause.
(2) Award. The city may select the vendor whose proposal is most advantageous to the city, with price and other factors considered. The city will then negotiate a contract with the selected proposer and is not limited in those negotiations by the scope of the original request for proposals but may follow the flow of negotiations to the most advantageous outcome for the city. If the city is unable to negotiate a contract successfully with the selected proposer, the city may terminate negotiations and proceed to negotiate with the second most advantageous proposer and so on.
(3) Competitive Negotiation – $100,000 or More. City council approval of a request for proposals will be sought in response to a purchase requisition, submitted to finance, which includes a description of the requirements and identifies significant evaluation factors and their relative importance. Once approved, finance will solicit sealed proposals.
At least one notice of the request for proposals must be published in the city’s official newspaper a minimum of 13 days prior to the proposal deadline. Other methods may be used to attract potential proposers in addition to, but not in place of, publication in the city’s official newspaper. For example, notices may be placed on the city’s website or advertised in trade papers or magazines.
Sealed proposals will be submitted to finance. At the appointed time, a register of proposals shall be prepared containing the name of each proposer and a description identifying the item offered.
Following evaluation of proposals by city staff, and negotiations with the selected proposer, the award will be authorized by the city council and will be signed by the mayor. Contracts must be signed by the mayor. The original request for proposals and the responses will be retained for review and audit as required in the finance office.
(4) Competitive Negotiation – Less than $100,000. Council approval is not required for a request for proposals in this dollar range. Within this dollar range, requests for proposals are not required to be advertised in the city’s official newspaper, but they may be so advertised if the finance manager deems it necessary. Other methods may also be used to attract potential bidders. For example, notices may be posted on the city’s website or advertised in trade papers or magazines.
Sealed proposals must be submitted to purchasing by the deadline specified in the request for proposals. At the appointed time, all proposals will be opened and a register of proposals shall be prepared containing the name of each proposer and a description identifying the item offered.
Following evaluations of proposals by city staff, and negotiations with the selected proposer, finance will make an award and issue either a contract or purchase order to the successful proposer. Contracts must be signed by the mayor. Original specifications and the original quotes will be retained in the finance office for review and audit as required. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.080 Interlocal cooperative purchasing agreements.
(1) Pursuant to Chapter 39.34 RCW, the city may enter into an interlocal cooperative purchasing agreement with any public agency, including the state of Washington, a political subdivision thereof, another state or a political subdivision of that state, an agency of the federal government, or a federally recognized Indian tribe.
(2) Interlocal agreements may be utilized to jointly make bid calls, for a joint purchase, or to purchase equipment, materials, supplies, or services on terms contained in a proposal or contract offered to another public agency. Where the city utilizes an interlocal agreement, the agreement must comply with the procurement requirements of both the city and the other public agency. Firm written quotes shall be obtained in advance to document pricing and terms of all interlocal purchases.
(3) All interlocal agreements must be approved by the city council and signed by the mayor. Interlocal agreement purchases may be made without advertising in the city’s official newspaper.
(4) When practical, the city should include language in its solicitations that allows other public agencies to purchase from the city’s bids, quotations, or contracts; provided, that the other agencies allow similar rights and reciprocal privileges to the city. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.090 Uniform exceptions.
Occasions may arise when competition among potential vendors is not possible for a particular procurement. These situations may occur: (a) in the event of emergencies and (b) where a sole source of procurement is available. In these situations, purchases may be made directly from a vendor with limited competition or without soliciting other bids or quotes, as the situation requires.
(1) Emergencies. Competitive bidding is not required when an emergency exists; however, in making emergency purchases, an effort will be made to include the level of competition that is practical under the circumstances. An “emergency” means unforeseen circumstances beyond the control of the municipality that either: (a) present a real, immediate threat to the proper performance of essential functions; or (b) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.
(a) Declaration of Emergency. If an emergency exists, and time permits, the mayor/designee or department manager will seek a resolution from council that will: (i) declare an emergency situation exists; (ii) waive competitive requirements; and (iii) authorize the award, on behalf of the city, of all contracts necessary to address the emergency situation, including, but not limited to, architectural and engineering services. If an emergency exists and time does not permit seeking the city council’s approval, the mayor or his/her designee may declare an emergency situation to exist, waive competitive requirements, and award contracts on behalf of the city. If an emergency exists and both the mayor/designee and the city council are not available to declare an emergency, a department manager may declare an emergency situation to exist, waive competitive requirements, and award contracts on behalf of the city.
(b) Ratification of All Emergency Procurements. The department manager will submit a memo to finance, reciting the facts that constituted the emergency, enumerating the purchases and their costs, and requesting that the waiver of competitive bid requirements be ratified. Acceptance of the ratification is subject to the approval of the mayor/designee and the city attorney.
(c) Ratification of Emergency Procurements of $100,000 or More. Within 14 days of the award of an emergency procurement contract over $100,000, which has been approved by the mayor/designee and the city attorney, the department director will seek further city council ratification. The department manager will present city council with a resolution reciting the facts constituting the emergency, enumerating the purchases and their costs, and ratifying the waiver of competitive requirements.
(2) Sole Source or Proprietary Procurements. Sole source procurements may be made directly from a sole source vendor without soliciting other bids or quotes where (a) there is clearly and legitimately only one source capable of supplying the subject matter in a timely fashion or (b) there are special facilities or market conditions that result in only one source.
In the event the equipment, materials, supplies, or services are available from only one supplier, written documentation demonstrating the appropriateness of sole source procurement must be submitted to finance.
For proposed purchases up to $5,000, the mayor/designee or department manager may make the determination that there is only one source available. Every justification for sole source procurement over $5,000 must be approved by the finance manager. When a proposed sole source purchase exceeds $100,000, the finance manager must seek the city council’s approval, by resolution, that there is only one source and authorizing the finance manager to conduct negotiations as appropriate as to price, delivery, and terms. The resolution will recite the factual basis for the exception from competitive procurement.
To the extent possible, the contract and the basis for the exception from competitive procurement should be recorded and open to public inspection immediately after its award. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.100 Procurement records and reporting.
Finance shall maintain all records necessary to adequately establish compliance with this chapter and state law. Finance shall make a regular report to the mayor detailing all instances where the city’s public work project contracting, the procurement of professional and personal service, and the acquisition of supplies, equipment, and materials did not comply with this chapter or state law. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.110 Vendor relations.
City employees should direct all vendors and suppliers to finance for information concerning the possible sale of goods and services to the city. Purchasing may direct a vendor to call on an employee who has requested information about a particular product. No elected official or appointed city officer or employee of the city shall have a financial interest, directly or indirectly, in any contract, sale, lease, or purchase with or for the use of the city; or accept, directly or indirectly, any compensation, gratuity, or reward from any other person who is financially interested therein. Provided, however, an officer or employee does not have a prohibited interest if the officer or employee has a remote interest as defined by state law. Violation of any provision of this section may be grounds for a forfeiture of employment or of the office of the person violating the same and the contract, sale, lease, or purchase shall be void. Any employee who is offered or receives a payment or gift of more than a nominal value should refuse it or return it to the giver in a tactful and dignified manner, advising the giver of the city’s policy prohibiting its acceptance and advising his/her supervisor that this has occurred.
(1) Samples. When vendors offer samples for evaluation, they will be accepted only under the following conditions:
(a) The sample is accepted as property of the city.
(b) The product is one which is of a type presently in use or is of potential use to the city. Samples of goods not likely to be purchased are not to be accepted.
(c) The quantity or size of the sample is relatively small and the sample is of low monetary value.
(d) Any chemicals offered as vendor samples shall not be accepted unless accompanied by an OSHA Product Safety Data Sheet.
(e) If vendor samples are accepted, they must be sent to the appropriate shop or department for testing.
(f) Samples that are requested for evaluation must be purchased.
(2) Fairness to Vendors. If there are irregularities during a competitive procurement process necessitating a requote, the preferred correction is to terminate the process and reinitiate a new procurement process. Bidders are expected to offer their best bid first and offering an opportunity to requote should be done only when absolutely necessary. If, for any reason, one supplier is permitted to requote, all competitors will be given the same opportunity.
(3) Public Records Act. The city is subject to the Washington State Public Records Act. Bidders should be aware that any materials submitted to the city, whether as an inquiry, bid, or other submission, will constitute public records and will be subject to disclosure unless protected by a specific exemption. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.120 Contracting with small and minority firms, women business enterprises, labor surplus area firms, and veteran-owned businesses.
The city shall neither discriminate against, nor give preferential treatment to, small and minority firms, women-owned business enterprises, labor surplus area firms, or veteran- owned firms. Such entities shall be afforded the maximum practicable opportunity to compete for and obtain public contracts for services and the city shall passively encourage participation consistent with such businesses’ general availability within the professional communities involved. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.130 Local business encouragement.
The city will take affirmative steps to ensure that businesses situated within the city limits are encouraged to participate in its procurement process to the extent permitted by federal, state, and local laws and regulations. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.140 Bid protest procedures.
Vendors may appeal or protest an invitation, solicitation, or award of contract issued by the city. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.150 Sale of the city’s personal property.
Sale of the city’s personal property shall be governed by city procedures adopted by resolution. [Ord. 2019-01 § 3 (Exh. A), 2019.]
3.20.160 Monitoring and compliance.
Finance will be responsible for monitoring and evaluating compliance with this chapter. The finance manager will first attempt to resolve departures from the requirements of this chapter with the department manager and the mayor. In the event an initial attempt to resolve the problem is unsuccessful, the departure will be referred to the mayor for further action. Officers and employees should be aware of possible personal penalties, termination, and financial liability for intentional and willful violation of competitive bidding laws. RCW 39.30.020 provides:
In addition to any other remedies or penalties contained in any law, municipal charter, ordinance, resolution or other enactment, any municipal officer by or through whom or under whose supervision, in whole or in part, any contract is made in willful and intentional violation of any law, municipal charter, ordinance, resolution or other enactment requiring competitive bidding or procurement procedures for consulting, architectural, engineering, or other services, upon such contract shall be held liable to a civil penalty of not less than three hundred dollars and may be held liable, jointly and severally, with any other such municipal officer, for all consequential damages to the municipal corporation. If, as a result of a criminal action, the violation is found to have been intentional, the municipal officer shall immediately forfeit his or her office. For purposes of this section, "municipal officer" means an "officer" or "municipal officer" as those terms are defined in RCW 42.23.020(2). [Emphasis added.]
[Ord. 2019-01 § 3 (Exh. A), 2019.]