[Code 1991, § 2-326(a)—(e)]
A. 
Generally. All public contracts with nongovernmental contractors for the purchase or lease of goods, or for the purchase of services, insurance, or construction, shall be awarded after competitive sealed bidding or competitive negotiation as provided in this section, unless otherwise authorized by law.
B. 
Procurement of professional services. Professional services shall be procured by competitive negotiation.
C. 
Competitive negotiation; procurement of insurance; procurement of construction.
(1) 
Upon a determination made in advance by the City Council and set forth in writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, goods, services, or insurance may be procured by competitive negotiation. The writing shall document the basis for this determination. Upon a written determination made in advance by the City Council that competitive negotiation is either not practicable or not fiscally advantageous, insurance may be procured through a licensed agent or broker selected in the manner provided for the procurement of things other than professional services in § 2-262D. The basis for this determination shall be documented in writing.
(2) 
Construction may be procured only by competitive sealed bidding or construction management except that competitive negotiation, design-build basis or construction management basis may be used in the following instances upon a determination made in advance by the City Council and set forth in writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, which writing shall document the basis for this determination:
(a) 
By the City Council for the alteration, repair, renovation or demolition of buildings when the contract is not expected to cost more than $500,000; or
(b) 
By the City Council for the construction of highways and any draining, dredging, excavation, grading or similar work upon real property.
D. 
Sole source procurement. Upon a determination in writing that there is only one source practicably available for that which is to be procured, a contract may be negotiated and awarded to that source without competitive sealed bidding or competitive negotiation, provided that all requirements as set forth in this section are complied with. The writing shall document the basis for this determination. The City Manager shall issue a written notice stating that only one source was determined to be practicably available, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. This notice shall be posted in a designated public area or published in a newspaper of general circulation on the day the City Council awards or announces its decision to award the contract, whichever occurs first.
E. 
Emergency procurement. In case of emergency, a contract may be awarded without competitive sealed bidding or competitive negotiation, provided that all requirements as set forth in this section are complied with; however, such procurement shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. The City Manager shall issue a written notice stating that the contract is being awarded on an emergency basis, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. This notice shall be posted in a designated public area or published in a newspaper of general circulation on the day the City Council awards or announces its decision to award the contract, whichever occurs first, or as soon thereafter as is practicable. An emergency shall be deemed to exist when a breakdown in machinery or equipment, a threatened termination of essential services, or a dangerous condition develops, or when any unforeseen circumstances arise causing curtailment or diminution of an essential service or where materials or services are needed to prevent loss of life or property.
F. 
Purchase at auction. Upon a determination made in advance by the City Council and set forth in writing that the purchase of goods, products or commodities from a public auction sale is in the best interests of the public, such items may be purchased at the auction. The writing shall document the basis for this determination.
[Code 1991, § 2-327]
A. 
Conditions for use. Upon determination in writing that competitive sealed bidding is either not practicable or advantageous to the City, goods, services, insurance or construction may be procured by competitive negotiation. The writing shall document the basis for this determination and the procedures shall be as provided in this section.
B. 
Procedures. The procedures for competitive negotiation shall include the following elements:
(1) 
Issuance of a written request for proposal indicating in general terms that which is sought to be procured, specifying the factors that will be used in evaluating the proposal and containing or incorporating by reference the other applicable contractual terms and conditions, including any unique capabilities or qualifications that will be required of the contractor.
(2) 
Public notice of the request for proposal at least 10 days prior to the date set for receipt of proposals by posting in a public area normally used for posting of public notices and by publication in a newspaper of general circulation in the area in which the contract is to be performed so as to provide reasonable notice to the maximum number of offerors that can be reasonably anticipated to submit proposals in response to the particular request. Public notice may also be published on appropriate Web sites. In addition, proposals may be solicited directly from potential contractors.
C. 
Procurement of professional services.
(1) 
The City Council shall engage in individual discussions with two or more offerors deemed fully qualified, responsible and suitable on the basis of initial responses and with emphasis on professional competence, to provide the required services. Repetitive informal interviews shall be permissible. The offerors shall be encouraged to elaborate on their qualifications and performance data or staff expertise pertinent to the proposed project, as well as alternative concepts. The request for proposal shall not, however, request that offerors furnish estimates of man-hours or cost for services. At the discussion stage, the City Council may discuss nonbinding estimates of total project costs, including, but not limited to, life-cycle costing, and, where appropriate, nonbinding estimates of price for services. Proprietary information from competing offerors shall not be disclosed to the public or to competitors. At the conclusion of discussion, outlined in this subsection, on the basis of evaluation factors published in the request for proposal and all information developed in the selection process to this point, the City Council shall select in the order of preference two or more offerors whose professional qualifications and proposed services are deemed most meritorious. Negotiations shall then be conducted, beginning with the offeror ranked first. If a contract satisfactory and advantageous to the City Council can be negotiated at a price considered fair and reasonable, the award shall be made to that offeror. Otherwise, negotiations with the offeror ranked first shall be formally terminated and negotiations conducted with the offeror ranked second, and so on until such a contract can be negotiated at a fair and reasonable price. Should the City Council determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified and suitable than the others under consideration, a contract may be negotiated and awarded to that offeror.
(2) 
A contract for architectural or professional engineering services relating to construction projects may be negotiated by the City Council for multiple projects provided the projects require similar experience and expertise, the nature of the projects is clearly identified in the request for proposal, and the contract term is limited to one year or when the cumulative total project fees reach the maximum cost authorized in this subsection, whichever occurs first. Such contract may be renewable for two additional one-year terms at the option of the City Council. Under such contract, the fair and reasonable prices, as negotiated, shall be used in determining the cost of each project performed; the sum of all projects performed in one contract term shall not exceed $500,000, except that in any locality or any authority or sanitation district with a population in excess of 80,000, the sum of all such projects shall not exceed $1,000,000; and the project fee of any single project shall not exceed $100,000, except that in any locality or any authority or sanitation district with a population in excess of 80,000, the project fee shall not exceed $200,000. Any unused amounts from the first contract term shall not be carried forward to the additional term. Competitive negotiations for such contracts may result in awards to more than one offeror provided the request for proposal so states and the City Council has established procedures for distributing multiple projects among the selected contractors during the contract term.
(3) 
Multiphase professional services contracts satisfactory and advantageous to the state department of transportation for environmental, location, design and inspection work regarding highways and bridges may be negotiated and awarded based on a fair and reasonable price for the first phase only, when completion of the earlier phases is necessary to provide information critical to the negotiation of a fair and reasonable price for succeeding phases.
D. 
Procurement of other than professional services. Selection shall be made of two or more offerors deemed to be fully qualified and best suited among those submitting proposals, on the basis of the factors involved in the request for proposal, including price if so stated in the request for proposal. Negotiations shall then be conducted with each of the offerors so selected. Price shall be considered, but need not be the sole determining factor. After negotiations have been conducted with each offeror so selected, the City Council shall select the offeror which, in its opinion, has made the best proposal, and shall award the contract to that offeror. When the terms and conditions of multiple awards are so provided in the request for proposal, awards may be made to more than one offeror. Should the City Council determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that offeror.
[Code 1991, § 2-301]
Competitive sealed bidding is a method of contractor selection, other than for professional services, which includes the following elements:
A. 
Issuance of a written invitation to bid containing or incorporating by reference the specifications and contractual terms and conditions applicable to the procurement. Unless the City Council has provided for prequalification of bidders, the invitation to bid shall include a statement of any requisite qualifications of potential contractors. When it is impractical to prepare initially a purchase description to support an award based on prices, an invitation to bid may be issued requesting the submission of unpriced offers to be followed by an invitation to bid limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.
B. 
Public notice of the invitation to bid at least 10 days prior to the date set for receipt of bids by posting in a designated public area, or publication in a newspaper of general circulation, or both. Public notice may also be published on appropriate Web sites. In addition, bids may be solicited directly from potential contractors. Any additional solicitations shall include businesses selected from a list made available by the state department of minority business enterprise.
C. 
Public opening and announcement of all bids received.
D. 
Evaluation of bids based upon the requirements set forth in the invitation, which may include special qualifications of potential contractors, life-cycle costing, value analysis, and any other criteria such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose, which are helpful in determining acceptability.
E. 
Award to the lowest responsive and responsible bidder. When the terms and conditions of multiple awards are so provided in the invitation to bid, awards may be made to more than one bidder.
[Code 1991, § 2-328]
No contract for the construction of any building or for an addition to or improvement of an existing building by the City Council for which state funds of $30,000 or more, either by appropriation, grant-in-aid or loan, are used or are to be used for all or part of the cost of construction shall be let except after competitive sealed bidding or after competitive negotiation as provided under § 2-361C(2). The procedure for the advertising for bids or for proposals and for letting of the contract shall conform, mutatis mutandis, to this article. A person or firm who has been engaged as an architect or engineer for the same project under a separate contract shall not be eligible to bid on or submit a proposal for any such contract or to have the contract awarded to him.
[Code 1991, § 2-329]
A. 
An invitation to bid, a request for proposal, any other solicitation, or any and all bids or proposals may be canceled or rejected. The reasons for cancellation or rejection shall be made part of the contract file. The City Council shall not cancel or reject an invitation to bid, a request for proposal, or any other solicitation, bid or proposal pursuant to this section solely to avoid awarding a contract to a particular responsive and responsible bidder or offeror.
B. 
The City may waive informalities and irregularities in bids, including clerical or arithmetic mistakes that are apparent from the face of the written bid documents and that can be substantiated by objective evidence drawn from inspection of original work papers, documents and materials used in the preparation of the bid.
[Code 1991, § 2-330]
A. 
Except as prohibited in this article, public contracts may be awarded on a fixed price or cost reimbursement basis, or on any other basis that is not prohibited.
B. 
Except in case of emergency affecting the public health, safety or welfare, no public contract shall be awarded on the basis of cost plus a percentage of cost.
C. 
A policy or contract of insurance or prepaid coverage having a premium computed on the basis of claims paid or incurred, plus the insurance carrier's administrative costs and retention stated in whole or in part as a percentage of such claims, shall not be prohibited by this section.
[Code 1991, § 2-332; Ord. No. 02-07, 3-26-2002]
A. 
The City Manager may enter into contracts without competition for:
(1) 
The purchase of goods or services that are produced or performed by:
(a) 
Persons, or in schools or workshops, under the supervision of the state department for the blind and vision impaired; or
(b) 
Nonprofit sheltered workshops or other nonprofit organizations that offer transitional or supported employment services serving the handicapped.
(2) 
The purchase of legal services or expert witnesses or other services associated with litigation or regulatory proceedings.
(3) 
Insurance or electric utility services if purchased through an association of which it is a member if the association was formed and is maintained for the purpose of promoting the interest and welfare of and developing close relationships with similar public bodies, provided such association has procured the insurance or electric utility services by use of competitive principles and provided that the City Council has made a determination in advance after reasonable notice to the public and set forth in writing that competitive sealed bidding and competitive negotiation are not fiscally advantageous to the public. The writing shall document the basis for this determination.
(4) 
Any public body may enter into contracts without competitive sealed bidding or competitive negotiation if purchased through the Virginia Municipal League or other association of which it is a member if such association was formed and is maintained for the purpose of promoting the interest and welfare of and developing close relationships with the City Council, provided such association has procured the insurance by use of competitive principles.
B. 
No contract for the construction of any building or for an addition to or improvement of an existing building by any local government or subdivision of local government for which state funds of not more than $30,000 in the aggregate or for the sum of all phases of a contract or project, either by appropriation, grant-in-aid or loan, are used or are to be used for all or part of the cost of construction shall be let except after competitive sealed bidding or after competitive negotiation as provided under Code of Virginia, § 2.2-4303D. The procedure for the advertising for bids or for proposals and for letting of the contract shall conform, mutatis mutandis, to this article.
C. 
Contracts for certain essential election materials and services are exempted from the requirements of Code of Virginia, § 2.2-4300 et seq., Code of Virginia, § 2.2-4303 et seq., and Code of Virginia, § 2.2-4357 et seq., pursuant to Code of Virginia, § 24.2-602.
D. 
The industrial development authority may enter into contracts without competition with respect to any item of cost of "authority facilities" or "facilities" as defined in Code of Virginia, § 15.2-4902.
E. 
The City Manager may enter into contracts without competition for the procurement of services to be provided for the benefit of special service districts established by the City pursuant to Code of Virginia, Title 15.2, ch. 24 (Code of Virginia, § 15.2-2400, et seq.). This exemption, however, shall not apply in cases where any public funds other than special assessments levied under Code of Virginia, § 15.2-2403(6) are used as payment or reimbursement for such contracts.
[Code 1991, § 2-332(c)]
Unless otherwise provided, the City Manager may extend the term of an existing contract for services to allow completion of any work undertaken but not completed during the original term of the contract.
[Code 1991, § 2-333]
A. 
Prospective contractors may be prequalified for particular types of supplies, services, insurance or construction, and consideration of bids or proposals limited to prequalified bidders. Any prequalification procedure used by the City shall be established in writing and sufficiently in advance of its implementation to allow potential bidders a fair opportunity to complete the process.
B. 
Any prequalification of prospective contractors for construction by the City shall be pursuant to a prequalification process for construction projects approved by the City Manager. Such process shall be consistent with the following provisions:
(1) 
The application form used in such process shall set forth the criteria upon which the qualification of prospective contractors will be evaluated. The application form shall request of prospective contractors only such information as is appropriate for an objective evaluation of all prospective contractors pursuant to such criteria. Such form shall allow the prospective contractor seeking prequalification to request, by checking the appropriate box, that all information voluntarily submitted by the contractor pursuant to this subsection shall be considered a trade secret or proprietary information subject to the provisions of § 2-375F, provided, however, that the contractor states the reasons why such information needs to be protected.
(2) 
In all instances where the City Manager requires prequalification of potential contractors for construction projects, advance notice shall be given of the deadline for the submission of prequalification applications. The deadline for submission shall be sufficiently in advance of the date set for the submission of bids for such construction so as to allow the procedures set forth in this subsection to be accomplished.
(3) 
At least 30 days prior to the date established for submission of bids or proposals under the procurement of the contract for which the prequalification applies, the City Manager shall advise in writing each contractor which submitted an application whether that contractor has been prequalified. If a contractor is denied prequalification, the written notification to such contractor shall state the reasons for such denial of prequalification and the factual basis of such reasons.
(4) 
A decision by the City Manager denying prequalification under the provisions of this subsection shall be final and conclusive unless the contractor appeals the decision, as provided by Code of Virginia, § 2.2-4357.
(5) 
The City Manager may deny prequalification to any contractor only if he finds one or more of the following:
(a) 
The contractor does not have sufficient financial ability to perform the contract resulting from such procurement. If a bond is required to ensure performance of a contract, evidence that the contractor can acquire a surety bond from a corporation included on the United States Treasury list of acceptable surety corporations in the amount and type required by this article shall be sufficient to establish the financial ability of such contractor to perform the contract resulting from such procurement;
(b) 
The contractor does not have appropriate experience to perform the construction project in question;
(c) 
The contractor or any officer, Director or owner thereof has had one or more judgments entered against him within the past 10 years for breach of contract for governmental or nongovernmental construction, including, but not limited to, design-build or construction management;
(d) 
The contractor has been in substantial noncompliance with the terms and conditions of a prior construction contract with any public body without good cause. If the City has not contracted with a contractor in any prior construction contracts, the City Manager may deny prequalification if the contractor has been in substantial noncompliance with the terms and conditions of comparable construction contracts with another public body without good cause. The City Manager shall not utilize this provision to deny prequalification unless the facts underlying such substantial noncompliance have been documented in writing in the prior construction project file and such information relating thereto given to the contractor at that time, with the opportunity to respond;
(e) 
The contractor or any officer, Director, owner, project manager, procurement manager or chief financial official thereof has been convicted within the past 10 years of a crime related to governmental or nongovernmental construction or contracting, including, but not limited to, a violation of the Virginia Ethics in Public Contracting Act, Code of Virginia, § 2.2-4367 et seq., the Virginia Governmental Frauds Act, Code of Virginia, § 18.2-498.1 et seq., the Virginia Conspiracy to Rig Bids to Government Act, Code of Virginia, § 59.1-68.6 et seq., or any substantially similar law of the United States or another state;
(f) 
The contractor or any officer, Director or owner thereof is currently debarred pursuant to an established debarment procedure from bidding or contracting by any public body, agency of another state or agency of the federal government; or
(g) 
The contractor failed to provide to the City Manager in a timely manner any information requested by him relevant to Subsection B(5)(a) through (f) of this section.
[Code 1991, § 2-334]
A. 
In the case of a tie bid, preference shall be given to goods produced in Virginia, goods or services or construction provided by Virginia persons, firms or corporations; otherwise the tie shall be decided by lot.
B. 
Whenever any bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a preference, a like preference may be allowed to the lowest responsible bidder who is a resident of Virginia.
C. 
Notwithstanding the provisions of Subsections A and B of this section, in the case of a tie bid in instances where goods are being offered, and existing price preferences have already been taken into account, preference may be given to the bidder whose goods contain the greatest amount of recycled content.
[Code 1991, § 2-335]
Unless otherwise provided in the invitation to bid, the name of a certain brand, make or manufacturer does not restrict bidders to the specific brand, make or manufacturer named. It conveys the general style, type, character, and quality of the article desired, and any article which the City Council in its sole discretion determines to be the equal of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended, shall be accepted.
[Code 1991, § 2-336]
The City Manager shall establish procedures whereby comments concerning specifications or other provisions in invitations to bid or requests for proposals can be received and considered prior to the time set for receipt of bids or proposals or award of the contract.
[Code 1991, § 2-337]
The City Council shall include in every contract of more than $10,000 the following provisions:
A. 
During the performance of this contract, the contractor agrees as follows:
(1) 
The contractor will not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age, disability, or other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to the normal operation of the contractor. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.
(2) 
The contractor, in all solicitations or advertisements for employees placed by or on behalf of the contractor, will state that such contractor is an equal opportunity employer.
(3) 
Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this section.
B. 
The contractor will include the provisions of Subsection A(1), (2) and (3) of this section in every subcontract or purchase order of over $10,000, so that the provisions will be binding upon each subcontractor or vendor.
[Code 1991, § 2-338]
A. 
Except as provided in this section, all proceedings, records, contracts and other public records relating to procurement transactions shall be open to the inspection of any citizen, or any interested person, in accordance with the Virginia Freedom of Information Act, Code of Virginia, § 2.2-3700 et seq.
B. 
Cost estimates relating to a proposed procurement transaction prepared by or for the City Council shall not be open to public inspection.
C. 
Any competitive sealed bidding bidder, upon request, shall be afforded the opportunity to inspect bid records within a reasonable time after the opening of all bids but prior to award, except in the event that the City Council decides not to accept any of the bids and to reopen the contract. Otherwise, bid records shall be open to public inspection only after award of the contract.
D. 
Any competitive negotiation offeror, upon request, shall be afforded the opportunity to inspect proposal records within a reasonable time after the evaluation and negotiations of proposals are completed but prior to award, except in the event that the City Council decides not to accept any of the proposals and to reopen the contract. Otherwise, proposal records shall be open to public inspection only after award of the contract.
E. 
Any inspection of procurement transaction records under this section shall be subject to reasonable restrictions to ensure the security and integrity of the records.
F. 
Trade secrets or proprietary information submitted by a bidder, offeror or contractor in connection with a procurement transaction or prequalification application submitted pursuant to § 2-370 shall not be subject to public disclosure under the Virginia Freedom of Information Act, Code of Virginia, § 2.2-3700 et seq. The bidder, offeror, or contractor, however, must invoke the protections of this section prior to or upon submission of the data or other materials, and must identify the data or other materials to be protected and state the reasons why such protection is necessary.
[Code 1991, § 2-339]
Unless canceled or rejected, a responsive bid from the lowest responsible bidder shall be accepted as submitted, except that, if the bid from the lowest responsible bidder exceeds available funds, the City may negotiate with the apparent low bidder to obtain a contract price within available funds; however, such negotiation may be undertaken only under conditions and procedures described in writing and approved by the City Council prior to issuance of the invitation to bid and summarized therein.
[Code 1991, § 2-340]
A. 
A bidder for a public construction contract, other than a contract for construction or maintenance of public highways, may withdraw his bid from consideration if the price bid was substantially lower than the other bids due solely to a mistake in the bid, provided the bid was submitted in good faith, and the mistake was a clerical mistake as opposed to a judgment mistake, and was actually due to an unintentional arithmetic error or an unintentional omission of a quantity of work, labor or material made directly in the compilation of a bid, which unintentional arithmetic error or unintentional omission can be clearly shown by objective evidence drawn from inspection of original work papers, documents and materials used in the preparation of the bid sought to be withdrawn. If a bid contains both clerical and judgment mistakes, a bidder may withdraw his bid from consideration if the price bid would have been substantially lower than the other bids due solely to the clerical mistake, that was an unintentional arithmetic error or an unintentional omission of a quantity of work, labor or material made directly in the compilation of a bid that shall be clearly shown by objective evidence drawn from inspection of original work papers, documents and materials used in the preparation of the bid sought to be withdrawn. The following procedures for withdrawal of a bid shall be stated in the advertisement for bids: the bidder shall give notice in writing of his claim of right to withdraw his bid within two business days after the conclusion of the bid opening procedure and shall submit original work papers with such notice. The work papers, documents and materials may be considered as trade secrets or proprietary information subject to the conditions of Code of Virginia, § 2.2-4342F. The mistake shall be proved only from the original work papers, documents and materials delivered as required in this section.
B. 
The City Council may establish procedures for the withdrawal of bids for other than construction contracts.
C. 
No bid shall be withdrawn under this section when the result would be the awarding of the contract on another bid of the same bidder or of another bidder in which the ownership of the withdrawing bidder is more than 5%.
D. 
If a bid is withdrawn in accordance with this section, the lowest remaining bid shall be deemed to be the low bid.
E. 
No bidder who is permitted to withdraw a bid shall, for compensation, supply any material or labor to or perform any subcontract or other work agreement for the person or firm to whom the contract is awarded or otherwise benefit, directly or indirectly, from the performance of the project for which the withdrawn bid was submitted.
F. 
If the City Manager denies the withdrawal of a bid under the provisions of this section, it shall notify the bidder in writing stating the reasons for its decision and award the contract to such bidder at the bid price, provided such bidder is a responsible and responsive bidder.
[Code 1991, § 2-342]
A. 
In any public contract for construction which provides for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid at least 95% of the earned sum when payment is due, with not more than 5% being retained to ensure faithful performance of the contract. All amounts withheld may be included in the final payment.
B. 
Any subcontract for a public project which provides for similar progress payments shall be subject to the same limitations.
[Code 1991, § 2-343]
A. 
The City Council, when contracting directly with contractors for public contracts of $200,000 or more for construction of highways, roads, streets, bridges, parking lots, demolition, clearing, grading, excavating, paving, pile driving, miscellaneous drainage structures, and the installation of water, gas, and sewer lines and pumping stations where portions of the contract price are to be retained, shall include in the bid proposal an option for the contractor to use an escrow account procedure for utilization of the City's retainage funds by so indicating in the space provided in the proposal documents. If the contractor elects to use the escrow account procedure, the escrow agreement form included in the bid proposal and contract shall be executed and submitted to the City within 15 calendar days after notification. If the escrow agreement form is not submitted within the fifteen-day period, the contractor shall forfeit his rights to the use of the escrow account procedure.
B. 
In order to have retained funds paid to an escrow agent, the contractor, the escrow agent, and the surety shall execute an escrow agreement form. The contractor's escrow agent shall be a trust company, bank or savings institution with its principal office located in the commonwealth. The escrow agreement and all regulations promulgated by the City shall be substantially the same as that used by the commonwealth department of transportation.
C. 
This section shall not apply to public contracts for construction for railroads, public transit systems, runways, dams, foundations, installation or maintenance of power systems for the generation and primary and secondary distribution of electric current ahead of the customer's meter, the installation or maintenance of telephone, telegraph or signal systems for public utilities and the construction or maintenance of solid waste or recycling facilities and treatment plants.
D. 
Any such public contract for construction with the City Council, which includes payment of interest on retained funds, may require a provision whereby the contractor, exclusive of reasonable circumstances beyond the control of the contractor stated in the contract, shall pay a specified penalty for each day exceeding the completion date stated in the contract.
E. 
Any subcontract for such public project which provides for similar progress payments shall be subject to the provisions of this section.
A. 
Any provision contained in any public construction contract that purports to waive, release, or extinguish the rights of a contractor to recover costs or damages for unreasonable delay in performing such contract, either on his behalf or on behalf of his subcontractor, if and to the extent the delay is caused by acts or omissions of the City Council, its agents or employees and due to causes within their control shall be void and unenforceable as against public policy.
B. 
Subsection A of this section shall not be construed to render void any provision of a public construction contract that:
(1) 
Allows the City Council to recover that portion of delay costs caused by the acts or omissions of the contractor, or its subcontractors, agents or employees;
(2) 
Requires notice of any delay by the party claiming the delay;
(3) 
Provides for liquidated damages for delay; or
(4) 
Provides for arbitration or any other procedure designed to settle contract disputes.
C. 
A contractor making a claim against the City Council for costs or damages due to the alleged delaying of the contractor in the performance of its work under any public construction contract shall be liable to the City Council and shall pay it for a percentage of all costs incurred by the City Council in investigating, analyzing, negotiating, litigating and arbitrating the claim, which percentage shall be equal to the percentage of the contractor's total delay claim that is determined through litigation or arbitration to be false or to have no basis in law or in fact.
D. 
The City Council, when denying a contractor's claim for costs or damages due to the alleged delaying of the contractor in the performance of work under any public construction contract, shall be liable to and shall pay such contractor a percentage of all costs incurred by the contractor to investigate, analyze, negotiate, litigate and arbitrate the claim. The percentage paid by the City Council shall be equal to the percentage of the contractor's total delay claim for which the City Council's denial is determined through litigation or arbitration to have been made in bad faith.
[Code 1991, § 2-344]
A. 
Except in cases of emergency, all bids or proposals for construction contracts in excess of $100,000, and bids for such other construction contracts as the City Manager shall determine, shall be accompanied by a bid bond from a surety company selected by the bidder which is legally authorized to do business in Virginia, as a guarantee that, if the contract is awarded to such bidder, that bidder will enter into the contract for the work mentioned in the bid. The amount of the bid bond shall not exceed 5% of the amount bid.
B. 
No forfeiture under a bid bond shall exceed the lesser of:
(1) 
The difference between the bid for which the bond was written and the next low bid; or
(2) 
The face amount of the bid bond.
[Code 1991, § 2-345]
A. 
Upon the award of any public construction contract exceeding $100,000, and such other construction contracts as the City Manager shall determine, awarded to any prime contractor, such contractor shall furnish to the City Council the following bonds:
(1) 
A performance bond in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications and conditions of the contract.
(2) 
A payment bond in the sum of the contract amount. Such bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in the prosecution of the work provided for in such contract, and shall be conditioned upon the prompt payment for all such material furnished or labor supplied or performed in the prosecution of the work. For purposes of this subsection, the term "labor or materials" shall include public utility services and reasonable rentals of equipment, but only for periods when the equipment rented is actually used at the site.
B. 
Each of such bonds shall be executed by one or more surety companies selected by the contractor which are legally authorized to do business in Virginia.
C. 
Bonds as required for the contracts of the City shall be payable to the City.
D. 
Each of the bonds shall be filed with the department which awarded the contract, and with the City Attorney.
E. 
Nothing in this section shall preclude such contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract with such subcontractor conditioned upon the payment to all persons who have and fulfill contracts which are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract.
[Code 1991, § 2-346]
No action against the surety on a performance bond required by this article shall be brought unless within one year after:
A. 
Completion of the contract, including the expiration of all warranties and guarantees; or
B. 
Discovery of the defect or breach of warranty that gives rise to the action.
[Code 1991, § 2-347]
A. 
Subject to the provisions of Subsection B of this section, any claimant who has performed labor or furnished material in accordance with the contract documents in the prosecution of the work provided in any contract for which a payment bond has been given, and who has not been paid in full therefor before the expiration of 90 days after the day on which such claimant performed the last of such labor or furnished the last of such materials for which he claims payment, may bring an action on such payment bond to recover any amount due him for such labor or material, and may prosecute such action to final judgment and have execution on the judgment. The obligee named in the bond need not be named a party to such action.
B. 
Any claimant who has a direct contractual relationship with any subcontractor from whom the contractor has not required a subcontractor payment bond under § 2-382E, but who has no contractual relationship, express or implied, with such contractor, may bring an action on the contractor's payment bond only if he has given written notice to such contractor within 180 days from the day on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment, stating with substantial accuracy the amount claimed and the name of the person for whom the work was performed or to whom the material was furnished. Any claimant who has a direct contractual relationship with a subcontractor from whom the contractor has required a subcontractor payment bond under § 2-382E, but who has no contractual relationship, express or implied, with such contractor, may bring an action on the subcontractor's payment bond. Notice to the contractor shall be served by registered or certified mail, postage prepaid, in an envelope addressed to such contractor at any place where his office is regularly maintained for the transaction of business. Claims for sums withheld as retainages with respect to labor performed or materials furnished shall not be subject to the time limitations stated in this subsection.
C. 
Any action on a payment bond must be brought within one year after the day on which the person bringing such action last performed labor or last furnished or supplied materials.
[Code 1991, § 2-348]
A. 
In lieu of a bid, payment, or performance bond, a bidder may furnish a certified check or cash escrow in the face amount required for the bond.
B. 
If approved by the City Attorney, a bidder may furnish a personal bond, property bond, or bank or savings and loan association's letter of credit on certain designated funds in the face amount required for the bid, payment or performance bond. Approval shall be granted only upon a determination that the alternative form of security proffered affords protection to the City Council equivalent to a corporate surety's bond.
C. 
Upon the submission of any proposed cash escrow agreement, personal bond, or property bond pursuant to this section, a bidder shall pay a nonrefundable administrative fee of $200 to the City department of building and development services to offset the City's legal and administrative costs.
[Code 1991, §§ 2-326(f), 2-350; amended 4-12-2016 by Ord. No. 16-12]
A. 
The City Manager may enter into single or term contracts without following the requirements of this article for competitive sealed bids or competitive negotiation for the purchase of:
[Amended 6-27-2023 by Ord. No. 23-13]
(1) 
Goods and nonprofessional services and non-transportation-related construction, if the aggregate or the sum of all phases is not expected to exceed $200,000;
(2) 
Transportation-related construction, if the aggregate or sum of all phases is not expected to exceed $25,000; and
(3) 
Professional services, if the aggregate or the sum of all phases is not expected to exceed $80,000.
B. 
The City Manager shall, wherever practicable, seek competitive prices on small purchases pursuant to this section. For the purchase of goods in excess of $5,000, the City Manager shall secure at least three estimates or proposals from different vendors. Written quotations from vendors shall be obtained, where practicable, although verbal quotations will be permitted, provided the City Manager causes a written record of all such verbal quotations to be made and filed with the records of the transaction.
[Code 1991, § 2-351]
The following transactions are hereby exempt from the provisions of this article:
A. 
Purchases from the state penitentiary or state contracts from the state purchasing department warehouse.
B. 
Legal and other services associated with actual or potential litigation.
C. 
Purchases for special police work when the Chief of Police certifies to the City Manager that items are needed for undercover police operations.