When a procurement is subject to federal procurement requirements,
the city's procurement procedures must be followed. In addition, the
city must follow the provisions of this chapter. In the event of a
conflict, this chapter and the requirements specified in 2 CFR 200.318
through 200.326, as amended from time to time, will prevail.
(Ord. 808 § 2, 2019)
Consideration will be given to the most economical approach
for purchases, including, but not limited to, the following options:
A.
Consolidating
or breaking out purchases;
B.
Lease
versus purchase options;
C.
State
and local intergovernmental or inter-entity agreements for procurement
or use of common or shared goods or services;
D.
Use
of federal excess and surplus property in lieu of purchasing new equipment
and property;
E.
Use
of value engineering clauses in contracts for construction projects;
F.
Avoidance
of duplicative or unnecessary purchases; and
G.
Any
other appropriate analysis.
(Ord. 808 § 2, 2019)
A.
Contracts
will only be awarded to responsible contractors possessing the ability
to perform successfully under the terms and conditions of a proposed
procurement. Consideration will be given to such matters as contractor
integrity, compliance with public policy, record of past performance,
and financial and technical resources.
B.
The
city will not award to any person or firm that is debarred, suspended,
or otherwise excluded from or ineligible for participation in federal
assistance programs or activities.
(Ord. 808 § 2, 2019)
The city will maintain records sufficient to detail the history
of procurement. These records will include, but are not necessarily
limited to, the following: rationale for the method of procurement,
selection of contract type, contractor selection or rejection, and
the basis for the contract price.
(Ord. 808 § 2, 2019)
A.
All
procurement transactions will be conducted in a manner providing full
and open competition consistent with the standards of this section.
In order to ensure objective contractor performance and eliminate
unfair competitive advantage, contractors that develop or draft specifications,
requirements, statements of work, invitations for bid, or requests
for proposals must be excluded from competing for such procurements.
B.
Situations
considered to be restrictive of competition are prohibited. Such situations
include, but are not limited to, the following:
1.
Placing
unreasonable requirements on firms in order for them to qualify to
do business;
2.
Requiring
unnecessary experience and/or excessive bonding;
3.
Noncompetitive
pricing practices between firms or between affiliated companies;
4.
Noncompetitive
contracts to consultants that are on retainer contracts;
5.
Organizational
conflicts of interest;
6.
Specifying
only a "brand name" product instead of allowing "an equal" product
to be offered and describing the performance or other relevant requirements
of the procurement; and
7.
Any
arbitrary action in the procurement process.
(Ord. 808 § 2, 2019)
No geographical preference is permitted in any procurement that
uses federal funds, except in those cases where applicable federal
statutes expressly mandate or encourage geographic preference. When
contracting for architectural and engineering services, geographic
location may be a selection criterion provided its application leaves
an appropriate number of qualified firms, given the nature and size
of the project, to compete for the contract.
(Ord. 808 § 2, 2019)
All city procurements utilizing federal funds must comply with
the following provisions:
A.
Solicitations
must incorporate a clear and accurate description of the technical
requirements for the material, product, or service to be procured.
Such description may not, in competitive procurements, contain features
which unduly restrict competition. The description may include a statement
of the qualitative nature of the material, product, or service to
be procured and, when necessary, must set forth those minimum essential
characteristics and standards to which it must conform if it is to
satisfy its intended use. Detailed product specifications will be
avoided if possible. When it is impractical or uneconomical to make
a clear and accurate description of the technical requirements, a
"brand name or equivalent" description may be used. The specific features
of the named brand which must be met must be clearly stated.
B.
Solicitations
must identify all requirements which the bidders must fulfill and
all other factors to be used in evaluating bids or proposals.
C.
The
city must ensure that all prequalified lists of persons, firms, or
products are current and include enough qualified sources to ensure
maximum open and free competition.
D.
The
city must not preclude potential bidders from qualifying during the
solicitation period.
(Ord. 808 § 2, 2019)
A.
Procurement
by Micro-Purchase Method. In addition to all other requirements contained
in this chapter, to the extent practicable, micro-purchases of supplies
or services, as defined by 2 CFR 200.67 and as amended from time to
time, must be distributed equitably among qualified vendors.
B.
Procurement
by Small Purchase Method. In addition to all other requirements contained
in this chapter, price or rate quotations for small purchases defined
as those purchases of services, supplies or other property, that do
not exceed the simplified acquisition threshold as set forth in 2
CFR 200.88 and as amended from time to time, must be obtained from
an adequate number of qualified sources.
C.
Procurement
by Formal Bidding. Public projects using federal funds which exceed
the simplified acquisition threshold must use the formal bidding (sealed
bid) method set forth in this chapter. In addition, the following
provisions also apply:
1.
A
firm fixed price contract award will be made in writing to the lowest
responsive and responsible bidder. Where specified in the bidding
documents, factors such as discounts, transportation cost, and life
cycle costs must be considered in determining which bid is lowest.
Payment discounts will only be used to determine the low bid when
prior experience indicates that such discounts are usually taken advantage
of.
2.
Any
or all bids may be rejected if there is a sound documented reason.
D.
Requests
for Qualifications. Requests for qualifications (RFQ) may only be
used in the procurement of architectural or engineering services.
The RFQ method may not be used to procure other types of services,
even though architectural or engineering firms may be a potential
source to perform the work.
(Ord. 808 § 2, 2019)
The city must take all necessary affirmative steps to assure
that minority businesses, women's business enterprises, and labor
surplus area firms are used when possible. Affirmative steps include:
A.
Placing
qualified small and minority businesses and women's business enterprises
on solicitation lists;
B.
Assuring
that small and minority businesses and women's business enterprises
are solicited whenever they are potential sources;
C.
Dividing
total requirements, when economically feasible, into smaller tasks
or quantities to permit maximum participation by small and minority
businesses and women's business enterprises;
D.
Establishing
delivery schedules, where the requirement permits, which encourage
participation by small and minority businesses and women's business
enterprises;
E.
Using
the services and assistance, as appropriate, of such organizations
as the Small Business Administration and the Minority Business Development
Agency of the Department of Commerce; and
(Ord. 808 § 2, 2019)
A.
Time
and Materials Contracts. The city may use a time and materials type
contract only after a determination that no other contract is suitable
and if the contract includes a ceiling price that the contractor exceeds
at its own risk. If such a contract is used, the city will assert
a high degree of oversight to obtain reasonable assurance that the
contractor is using efficient methods and effective cost controls.
B.
Cost
or Price Analysis. For procurements in excess of the simplified acquisition
threshold, the city must perform a cost or price analysis prior to
receiving bids or proposals.
C.
Negotiation
When No Competition. The city must negotiate profit as a separate
element of the price for each contract for which there is no price
competition, and in all cases where cost analysis is performed. To
establish a fair and reasonable profit, consideration must be given
to the complexity of the work to be performed, the risk borne by the
contractor, the contractor's investment, the amount of subcontracting,
the quality of its record of past performance, and industry profit
rates in the surrounding geographical area for similar work.
D.
Prohibited
Method of Contracting. Cost plus a percentage of cost and percentage
of construction cost methods of contracting must not be used.
(Ord. 808 § 2, 2019)
Each contract that the city enters into as a result of a procurement
subject to this chapter, must contain all applicable provisions described
in Appendix II to Part 200-Contract Provisions for non-Federal Entity
Contracts Under Federal Awards.
(Ord. 808 § 2, 2019)
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. Such a conflict
of interest would arise when the employee, officer, or agent, any
member of his or her immediate family, his or her partner, or an organization
which employs or is about to employ any of the parties indicated herein,
has a financial or other interest in or a tangible personal benefit
from a firm considered for a contract. The officers, employees, and
agents of the city may neither solicit nor accept gratuities, favors,
or anything of monetary value from contractors or parties to subcontracts.
There is no real or apparent conflict of interest if the financial
interest was not substantial or the gift was an unsolicited item of
nominal value. When determining whether a financial interest is "not
substantial" or if an unsolicited item is of "nominal value," the
materiality standards set forth in the California Code of Regulations
(2 CCR Section 18700, et seq.) pursuant to the California Political
Reform Act (Government Code Section 81000, et seq.) shall govern.
(Ord. 808 § 2, 2019)
