Chapter 3.40 COMPETITIVE BIDDING

Chapter 3.40
COMPETITIVE BIDDING

Sections:

3.40.010 Competitive bidding – Public work in excess of $350,000.

3.40.020 Exemptions to competitive bidding requirements.

3.40.005 Competitive bidding – General.

Washington State law governs competitive bidding requirements for public works. Chapters 3.40, 3.41, and 3.42 SVMC are specifically intended to comply with and be complementary to applicable state law governing bidding requirements for and procurement of public works. To the extent that any applicable SVMC provisions are in conflict with state law, state law shall govern and control. Nothing herein shall excuse compliance with other applicable state laws. (Ord. 19-021 § 3 (Exh. A), 2019).

3.40.010 Competitive bidding – Public work in excess of $350,000.

Except as required by federal law and Chapter 3.36 SVMC, for public work contracts in excess of $350,000, or such amount as provided pursuant to RCW 39.04.155 as adopted or may be amended, the following competitive bid process shall be used:

A. Publication of Notice. Sealed bids shall be invited by a single publication in a newspaper of general circulation at least 13 days before the date and time set for receiving such bids, and shall include an estimate of the probable cost, together with a description of the work, and shall state that plans/specifications may be obtained from the City, and include the manner, place, date, and time for submitting a bid to the City. The city clerk shall also post notice of the request in a public place.

B. Rejection of Bids. The city manager may reject, without cause, any and all bids and may re-advertise for bids pursuant to the procedures herein described. If no bids are received on the first call or any subsequent re-advertisement, the city manager may negotiate a contract with a contractor at the lowest cost possible to the City.

C. Performance and Payment Bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure complete, proper and full performance of the contract and full payment of all laborers, mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects pursuant to RCW 39.08.010 through 39.08.030, as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions.

Pursuant to RCW 39.08.010, for certain public works and works by contract on which prevailing wage is required to be paid, at the contractor’s option, the City may, in lieu of requiring payment and performance bonds, retain a percentage of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed pursuant to Chapter 60.28 RCW. This option is only available for contracts at the amount set forth in RCW 39.08.010 as adopted or hereafter amended. The amount retained by the City shall be the amount as set forth in RCW 39.08.010. Retainage in lieu of payment and performance bonds may only be used by the City for contracts when the requirement of bonds substantially increases the cost of the contract.

D. Bid Bonds. As a condition of bidding, a bid bond in the amount of five percent of the bid amount shall be required. Such bid bond shall be required on all formally bid public work construction projects, and shall be due at such time as the bid is submitted to the City. When the contract is let, all bid bonds shall be returned to the bidders except that of the successful bidder, which shall be retained until a contract is entered into and a bond to perform the work furnished as provided above. If the successful bidder fails to enter into the contract in accordance with the bid within 10 days from the date at which the bidder is notified of bid award, the bid bond shall be forfeited.

E. Bid Protest. SVMC 3.40.010 shall apply to all public works bids. The City shall comply with the bid request and bid protest procedures set forth in RCW 39.04.105, as adopted or amended.

F. Award of Bid. Except as otherwise provided herein, the City will accept the bid of the lowest responsible bidder. If no proposals are received, City staff shall not be required to resubmit for additional proposals, but may negotiate with any available contractor.

G. Award to Other Than Low Bidder. When the bid award is not given to the lowest responsible bidder, a full and complete statement of the reasons shall be prepared by the city manager and placed in the City file relating to the transaction. (Ord. 23-013 § 2, 2023; Ord. 19-021 § 3 (Exh. A), 2019; Ord. 18-028 § 2, 2018; Ord. 17-012 § 2, 2017; Ord. 15-022 § 5, 2015).

3.40.020 Exemptions to competitive bidding requirements.

The following types of purchases are exempt from competitive bidding requirements. The factual basis for any purchase deemed exempt pursuant to SVMC 3.40.020(A) through (C) shall be filed with the contract with the city clerk and shall be open to public inspection.

A. Sole Source or Equipment Repair. Purchases which by their nature are not adapted to competitive bidding, such as purchases which are clearly and legitimately limited to a single source, and contracts to repair equipment owned by the City which may be more efficiently accomplished by a certain person or firm with previous experience on the equipment.

B. Special Facilities or Market Conditions. Purchases involving special facilities or market conditions that generally relate to acquisition of unique facilities that may be specially manufactured or not otherwise generally available. Special market conditions may require immediate acquisition based upon a favorable offer, including, but not limited to, liquidation sales, public or private party offers, and similar circumstances where the acquisition can be obtained at below-market value.

C. Emergency Public Work Projects. In the event that an emergency should arise which requires immediate action on the part of the City to protect the health, safety, or welfare of the citizens of the City and where it is not possible to timely adhere to the bidding practices set forth above, the person authorized by state law or otherwise designated by the city council to act in the event of an emergency may declare an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts to address the emergency situation. If a contract is awarded pursuant to SVMC 3.40.020(C) without bidding due to an emergency, a written finding of the existence of an emergency shall be made by the governing body or its designee and duly entered of record no later than two weeks following the award of the contract.

For purposes of SVMC 3.40.020(C), an “emergency” means unforeseen circumstances beyond the control of the City that either: (1) present a real immediate threat to the proper performance of essential functions; or (2) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

D. Auction. The purchase of supplies, materials, or equipment not exceeding a cost of $200,000 through auctions conducted by the government of the United States or any agency thereof, any agency of the state of Washington, any municipality or other government agency, or any private party may be authorized by the city manager if the item may be obtained at a competitive cost.

E. Exchanges. By mutual agreement, the City may exchange supplies, materials, services, or equipment with other public agencies. (Ord. 19-021 § 3 (Exh. A), 2019; Ord. 17-012 § 2, 2017; Ord. 15-022 § 5, 2015).