[Adopted 11-8-2021 by Ord. No. 2021-10; amended in its entirety 11-28-2022 by Ord. No.
2022-07]
This article shall be known as and may be cited as the "Responsible
Contractor Ordinance."
The City of Royal Oak recognizes that there is a need to ensure
that all work on public construction and maintenance contracts is
performed by responsible, qualified firms that maintain the capacity,
expertise, personnel, and other qualifications and resources necessary
to successfully perform public contracts in a timely, reliable, and
cost-effective manner.
A. To effectuate the purpose of selecting responsible contractors for
public contracts and to protect the City of Royal Oak's investments
in such contracts, prospective contractors and subcontractors should
be required to meet preestablished, clearly defined, minimum standards
relating to contractor responsibility, including requirements and
criteria concerning technical qualifications, competency, experience,
adequacy of resources, including equipment, financial and personnel,
and satisfactory records regarding past project performance, safety,
law compliance and business integrity.
B. Further, due to the critical impact that skilled construction craft
labor has on public works projects, and due to the limited availability
of skilled construction craft labor and imminent craft labor skill
shortages, it is necessary to encourage contractors and subcontractors
to participate in established, formal apprenticeship training programs,
for the purpose of both promoting successful project delivery and
ensuring future workforce development. The City of Royal Oak also
recognizes that it is beneficial to the local community to ensure
that firms receiving public contracts provide adequate wages and benefits
to their employees and utilize fair business, employment and training
practices that have a positive impact on local communities affected
by such contracts.
C. Therefore, the City of Royal Oak shall require compliance with the
provisions of this article by business entities seeking to provide
services to the City of Royal Oak as specified herein. The requirements
of this article are intended to supplement, not replace, existing
contractor qualification and performance standards or criteria currently
required by law, public policy or contracting documents. However,
in the event that any of the provisions of this article conflict with
any law, public policy or contracting documents of the City of Royal
Oak, this article shall prevail.
As used in this article, the following terms shall have the
meanings indicated:
BEST VALUE
A request for proposal procurement method that emphasizes
both value and price. "Best value" is a method that is utilized in
the evaluation process of the proposals received and reviewed. Best
value for construction will be determined based on a 100% distribution
looking at construction that includes, but is not limited to, the
following: quality of workmanship, quality of materials, references,
experience (including experience on past City or public works projects),
proposed schedule, safety, time, and cost.
BID
Any application submitted by a bidder in response to an invitation
for bid, request for proposal or request for qualifications, or other
procurement process.
BIDDER
Any person or entity that applies for any contract, whether
or not the application process is through an invitation for bid, request
for proposal, request for qualifications, or other procurement process.
CONSTRUCTION PROJECT
Any contract of more than $250,000 awarded for the construction,
alteration, demolition, or repair of any public building or public
work of the City of Royal Oak. The labor and material necessary, for
the construction, renovation, repair, or improvements to real property,
except repair in emergency situations, which requires solicited bids.
CONTRACTOR
Any person, firm, corporation, partnership, association,
or any combination thereof, which enters into a contract with any
awarding authority of the City of Royal Oak and includes a recipient
of City financial assistance and a public lessee or licensee.
RESPONSIBLE BIDDER
A bidder for a construction project that has satisfied the
prequalifying criteria designated in the bid and as provided in these
guidelines.
SUBCONTRACTOR
Any person not an employee who enters into a contract with
a contractor to assist the contractor in performing a contract, including
a contractor or subcontractor of a public lessee or licensee or sublessee
or sublicensee, to perform or assist in performing services on the
leased or licensed premises. The term "subcontractor" does not include
vendors or suppliers to City purchasing contractors.
In the event the amount of a bid appears disproportionately
low when compared with estimates undertaken by or on behalf of the
City and/or compared to other bids submitted, the City reserves the
right to inquire further of the bidder to determine whether the bid
contains mathematical errors, omissions, and/or erroneous assumptions,
and whether the bidder has the capability to perform and complete
the contract for the bid amount.
The City must develop a complaint form that will allow members
of the public to report suspected violations of this article to the
Finance Department. Members of the public may at any time submit a
report of suspected violations of this article. The complaint form
must be accessible to the public on the City's website and a
physical copy of the form will be available at Royal Oak City Hall.
If the City receives a complaint through the public complaint form,
the Finance Department must investigate the claim and respond to the
complainant within 21 calendar days with the Finance Department's
reply to the complaint.
The terms, conditions, and provisions of this article are hereby
declared to be severable and, should any portion, part or provision
of this article be found by a court of competent jurisdiction to be
invalid, unenforceable, or unconstitutional, the City commission hereby
declares its intent that this article shall have been enacted without
regard to the invalid, unenforceable or unconstitutional portion,
part, or provision of this article.