Any purchase of supplies and services less than $25,000 may
be made in accordance with the purchasing procedures set forth in
this chapter. Purchases shall not be artificially divided to circumvent
the solicitation process. If numerous items are being purchased from
one vendor on one order, the aggregate price is the determining factor
with regard to solicitation procedures.
(a) Purchase Authority and Process.
(1) The Purchasing Manager or employees with delegated purchasing authority
shall have the authority to purchase without formal competition, for
the purchase of any materials, professional services, services or
construction amounting to more than $5,000 and not exceeding a cost
of $25,000. If multiple purchases will be made during one fiscal year
with an aggregate amount to warrant annual contracting, the Purchasing
Manager may require the department/division to provide data for a
formal competitive solicitation, as is in the best interest of the
City.
(2) Such negotiated purchases shall be made in the open market; whenever
practical or advantageous, the Purchasing Manager or designated representative
shall attempt to obtain quotes from a minimum of three vendors. Negotiated
purchases of materials, services or construction shall be awarded
to the vendor supplying the lowest responsible and responsive quote.
The names of the vendors submitting quotations, the amount of each
quotation and the date shall be documented and maintained as a public
record.
(3) The purchasing procedures adopted pursuant to this chapter shall
authorize the purchase of materials, services or professional services
in the open market by Department Directors and Division Managers or
their designated representatives of other departments of the City;
provided, that no such purchase shall exceed the cost of $5,000 without
competition.
(4) No contract shall be artificially divided so as to constitute a small
purchase.
(5) The Purchasing Division encourages the solicitation process to increase
competition and value for the City. Upon request the Purchasing staff
will help facilitate the quote process.
(Res. 04-12 (§ 10.1), 1-16-12)
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Competitive Sealed Bids/Proposals Required. Expenditures for
supplies, materials and equipment or any contract obligating the City
of Grand Junction of $25,000 or more and all major capital expenditures
shall be purchased under formal competitive sealed bid or competitive
proposal procedures.
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Public Notice Required. Purchases of commodities and/or services
estimated to cost $25,000 or more shall be published in a general
circulation newspaper in the City of Grand Junction and be published
at least five working days preceding the last day set for the receipt
of solicitations. Public notice of solicitations shall state the place,
date and time of the bid opening.
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Public Records. Purchasing Division is responsible for record
keeping. All submittals, except confidential or proprietary information
as defined by law, are public records and must be retained as such.
Documents will be retained electronically through the City’s
records management system.
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Definition – Competitive Sealed Bid (Formal). A competitive sealed bid is a method of source selection for
a procurement of goods and/or commodities estimated to be $25,000
or more. Award is generally made to the lowest responsive and responsible
bidder whose bid complies with the specifications contained in the
contract (bid) documents. This means that bid price is the decisive
criterion for determining the vendor who shall receive the award.
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Definition – Competitive Sealed Proposal (Formal).
A competitive proposal (request for proposal) is
a method of source selection for a procurement estimated to cost $25,000
or more. Award is generally to the respondent whose offer is considered
the best when compared and evaluated against all other offers. Cost
is not the primary focus of proposal award. Competitive proposal solicitations
are used for the procurement of supplies or services that require
a high degree of professional skill and expertise, or when looking
for the solution to a problem. The qualification based selection process
shall be used for the retention of design professionals (architects
and engineers).
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(a) Competitive Sealed Bid Procedure.
(1) Invitation for Bids (IFB).
An invitation for bids shall
be issued and shall include specifications and all contractual terms
and conditions applicable to the procurement, as well as the bid opening
place, time and date.
(2) Specifications.
Specifications shall be made available
to all interested parties as stated in the IFB. If for any reason
whatsoever it is necessary to change the specifications or any other
of the formal data and there is adequate time as determined by the
Purchasing Manager prior to the date of bid opening, an addendum shall
be issued setting forth the changes. Specification changes must allow
adequate notice and mailing time and shall be coordinated between
user department and Purchasing. This addendum shall be sent to everyone
known to have received a copy of the IFB. In certain cases the bid
opening may be postponed to allow adequate time for respondents to
prepare their bid based on specification changes. If there is not
adequate time, the IFB shall be canceled and a new bid process initiated.
(3) Bonding.
Bid bonds (five percent to 10 percent) and
100 percent performance and payment bonds are required on any City
construction project of $50,000 or more or as the Purchasing Manager
and/or Department Director deems advisable to protect the City’s
interests. Bonding for service contracts shall occur at the discretion
of the Purchasing Manager or the Department Director of the using
agency.
(4) Bid Opening.
The opening of sealed bids shall be a public
formal procedure. Bids shall be opened by the Purchasing Manager or
his designated representative, at the time and place specified in
the invitation for bids. The amount of each bid and such relevant
information as the Purchasing Manager or his designated representative
deems appropriate, together with the name of each bidder, shall be
recorded. Bids must be received prior to the specified time as established
in the IFB. Bids received after the specified deadline may be immediately
returned to the nonresponsive vendor unopened.
(5) Bid Submission and Bid Evaluation.
Bids shall be unconditional
and submitted without alteration or correction except as authorized
in this subsection. Bids shall be evaluated based on the requirements
set forth in the IFB, which may include criteria to determine acceptability,
such as inspection, testing, quality, workmanship, delivery and suitability
for a particular purpose. Those criteria that shall affect the price
and be considered in evaluation for award shall be objectively measurable,
such as discounts, allowances, transportation costs and total or life
cycle costs. The IFB shall set forth the evaluation criteria to be
used.
(6) Correction or Withdrawal of Bids.
Correction or withdrawal
of inadvertently erroneous bids before and after a bid opening may
be permitted in accordance with this subsection. Mistakes discovered
before the bid opening may be modified or withdrawn by written, e-mail,
or fax notice received in the office designated in the IFB prior to
the time set for the bid opening. After the bid opening, corrections
in bids shall be permitted only to the extent allowable in the bid
documents and that the bidder can show by clear and convincing evidence
that the mistake of a nonjudgmental character was made, the nature
of the mistake and the bid price actually intended. Except for the
foregoing, after the bid opening no changes in bid prices or other
provisions of bids prejudicial to the interest of the City or fair
competition shall be permitted. In lieu of bid correction, a low bidder
alleging a material mistake of fact may be permitted to withdraw its
bid if: (i) the mistake is clearly evident on the face of the bid
document, but the intended correct bid is not similarly evident; or
(ii) the bidder submits evidence which clearly and convincingly demonstrates
a mistake was made. All decisions to permit the correction or withdrawal
of bids shall be supported by a written determination made by the
Purchasing Manager or his designated representative.
(7) Award.
Generally, an award shall be made by written
notice to the lowest responsible and responsive bidder whose bid meets
the requirements and criteria set forth in the IFB. The City does
not have a local preference policy. However, City Administration and
City Council reserve the right to review and award bids at their discretion
to responsive and responsible companies which may or may not be the
low bidder. In the event the low responsive and responsible bid for
a construction project exceeds available funds or the engineer’s
estimate, the Purchasing Manager or his designated representative
is authorized, when time and economic considerations preclude resolicitation
of work of a reduced scope, to negotiate an adjustment of the bid
price with the low responsible and responsive bidder in order to bring
the bid within the amount of available funds. Any such adjustments
shall be based only on eliminating independent deductive items specified
in the IFB. In the purchase of supplies or services pursuant to this
section of whatsoever nature or character amounting in value to $50,000
or more, the Purchasing Manager or his designated representative shall
make report and transmit the bids to the next regular session of City
Council with recommendation concerning acceptance or solicitation
analysis. The City Council shall thereupon approve or disapprove the
recommendation of the Purchasing Manager or his designated representative.
(b) Multi-Step Sealed Bidding.
When it is considered impractical
to initially prepare a purchase description to support an award based
on price, a request for information, RFI, may be issued requesting
the submission of unpriced offers to be followed by an IFB limited
to those bidders whose offers have been determined to be technically
acceptable under the criteria set forth in the first solicitation.
(c) Competitive Sealed Proposal/Competitive Negotiation Process.
A contract for supplies or services for $25,000 or more may
be entered into by use of the competitive sealed proposal/competitive
negotiations method when: (1) the Purchasing Manager or his designated
representative determines that the complex nature or technical details
of a particular procurement make the use of competitive sealed bidding
either not practical or not advantageous to the City; (2) specifications
cannot fairly or objectively be prepared as to permit competition
in the invitation for bids; (3) high technology and electronic equipment
is available from a limited number of sources; or (4) specifications
cannot practically be prepared except by reference to specifications
of the equipment of a single source of supply.
(1) Requests for Proposals (RFP).
Proposals shall be solicited
through a request for proposals process.
(2) Receipt of Solicitations.
No proposals shall be opened
until the time designated in the proposal document or addenda. A tabulation/abstract
of solicitations shall be prepared containing the name of each offeror,
the number of modifications received, if any, and a description sufficient
to identify the item offered.
(3) Evaluation Factors.
Proposal evaluation criteria should
measure how well each offeror meets the desired performance requirements
established before proposals are received. Final consideration for
awarding of contract shall not be based solely on price. A combination
of qualifications, past experience, demonstrated successes, references,
fees and costs, capacity to fulfill all requirements of the contract
and other qualifying considerations shall be considered for evaluation
purposes.
(4) Discussion with Responsible Offerors and Revisions to Proposals.
As provided in the request for proposals, discussions may be
conducted with responsible offerors who submit proposals determined
to be reasonably susceptible of being selected for award for the purpose
of classification to assure full understanding of, and conformance
to, the solicitation requirement. Offerors shall be accorded fair
and equal treatment with respect to any opportunity for discussion
and revision of proposals and such revisions may be permitted after
submissions and prior to award for the purpose of obtaining best and
final offers.
(5) Award.
Award shall be made to the responsible offeror
whose proposal is determined in writing to be the most advantageous
to the City, taking into consideration price and evaluation factors
set forth in the request for proposals. No other factors or criteria
shall be used for this evaluation. The contract file shall contain
the basis on which the award was made. In the purchase of supplies
or services amounting in value to $50,000 or more, the Purchasing
Manager or his designated representative shall make report and transmit
the offers to the next regular session of City Council with recommendation
concerning acceptance or rejection thereof. City Council shall thereupon
approve or disapprove the recommendation of the Purchasing Manager
or his designated representative. If the value of the award is between
$25,000 and $50,000, the Purchasing Manager or his designated representative
shall make report and recommendation and transmit same to the City
Manager to approve or disapprove the award. If the value of the award
is between $15,000 and $25,000, the Purchasing Manager or his designated
representative shall make report and recommendation and transmit same
to the appropriate Department Director or designee to approve or disapprove
the award.
(Res. 04-12 (§ 10.2), 1-16-12)
A responsive bid is one that is in substantial
conformance with the requirements of the IFB. Bidders who substitute
their standard terms and conditions for that of the City’s bid
documents or who qualify their bids in such a manner as to nullify
or limit their liability to the City are nonresponsive bidders.
(a) Determination of Nonresponsive.
The following are examples
of nonresponsive bidders:
(1) A bidder who fails to deliver a bid prior to the specified place,
time and date as shown on the IFB. Such is considered late and the
bid shall not be opened.
(2) A bidder who fails to conform to required delivery schedules as set
forth in the bid documents or in the permissible alternatives.
(3) A bidder who qualifies prices in such a manner that the firm’s
bid price cannot be determined (“price in effect at time of
delivery”).
(4) A bidder who fails to offer goods or services that comply with the
specifications of the bid.
(5) A bidder who makes the purchasing authority the responsible party
for determining that the bidder’s products conform to the specifications.
(6) A bidder who fails to furnish bid surety.
(7) A bidder who limits the rights of the City under any contract clause.
(b) Appeal.
When a bid is declared nonresponsive, the City purchasing rules and regulations require that the bidder be notified and given an opportunity to appeal that determination. If he believes that the nonresponsive determination was erroneous, arbitrary or capricious, the bidder has the right to protest according to the rules and regulations for protested solicitations or awards contained herein (GJMC §
41.40.090).
(Res. 04-12 (§ 10.3), 1-16-12)
A responsible vendor is a person who has the
capability in all respects to perform fully the contract requirements
and the tenacity, perseverance, experience, integrity, reliability,
capacity, facilities, equipment and credit which shall assure good,
full and faithful performance.
(a) Determination of Nonresponsibility.
The following are
reasons a bidder may be declared non-responsible:
(1) The bidder is not a regular dealer or supplier of the goods or services
offered;
(2) The bidder does not have the ability to comply with the required
delivery or performance schedule;
(3) The bidder does not have a satisfactory record of performance as
documented by the requesting agency’s Department Director or
designated representative or as referenced by other jurisdictions
or customers;
(4) The bidder does not have a satisfactory record of integrity or the
bidder is currently disbarred or suspended by the State of Colorado
or other Colorado jurisdiction or political subdivision;
(5) The bidder does not have the necessary facilities, organization,
experience, technical skills or financial resources to fulfill the
terms of the contract/purchase order;
(6) The bidder of construction and/or maintenance services has a demonstrated
record of safety violations; or
(7) Inability to meet the required contract performance schedule.
(b) Appeal.
When a bid is declared “nonresponsible,” the City purchasing rules and regulations require that the bidder be notified and given an opportunity to appeal that determination. If he believes that the nonresponsible determination was erroneous, arbitrary or capricious, the bidder has the right to protest according to the rules and regulations for protested solicitations or awards contained herein (GJMC §
41.40.090).
(Res. 04-12 (§ 10.4), 1-16-12)
The Purchasing Manager has authority to waive irregularities
if: (a) the item being waived is only a matter of form or is an immaterial
variation from the exact requirements of the solicitation; (b) the
item being waived has trivial or no effect on price, quality, quantity,
delivery or performance; and (c) such a waiver would not affect the
relative standing of bidders or be otherwise prejudicial to them.
Examples of minor irregularities that may be waived are:
(a) Failure to furnish with the bid certain required information regarding
the vendor’s qualifications to perform the contract.
(b) Failure to submit required descriptive information on the products
offered.
(c) Failure to return the proper number of executed bids or attachments,
including certifications and affidavits.
(d) Failure to return a bid addendum or amendment if on the face of such
bid the bidder acknowledges receipt of addendum or amendment or if
the addendum or amendment does not have material effect on the bidder’s
liability under the terms of the contract.
(e) Failure to sign a bid, when evidence is submitted with the bid that
clearly shows that the bid was the one intended by the bidder and
that failure to sign was strictly an oversight.
When such minor irregularities are discovered by the purchasing
authority, the offeror is requested to remedy the problem within a
reasonable time frame by later submitting omitted data or by providing
a written statement of intent.
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(Res. 04-12 (§ 10.5), 1-16-12)
(a) The following items are exempted from competitive bidding:
(1) Supplies, materials, services costing less than $25,000;
(2) Purchases made cooperatively with other units of government such
as the State of Colorado and government cooperative groups utilizing
extended awards from other governmental agencies. The City may, when
deemed appropriate, extend its award to other governmental agencies;
(3) Purchases/contracts with federal and local government and not-for-profit
units;
(4) Magazines, books and periodicals;
(5) Supplies, products or services indispensable to the City which are
obtainable, for practical purposes, only from a single source, as
identified by the Purchasing Manager using the procedure herein set
forth;
(6) The material qualifies as an object of fine art;
(7) A particular material is required to match materials currently in
use by the City;
(8) Original equipment manufacturer (OEM) repair parts purchased from
the source vendor; or
(9) Annual maintenance and service agreements on purchases originally
obtained by competitive solicitation or sole source when the terms
of the agreement specify the original provider performs ongoing maintenance.
(b) Miscellaneous Exemptions.
Any procurement resulting
from a formal competitive bid or proposal may be used as the basis
for the negotiated purchase of additional quantities of the same materials
or services at any time within a period of three years from the date
of approval; provided, however, that subsequent procurements are expressly
limited to the specific terms, conditions and pricing established
by the original solicitation. Additional quantity negotiations must
be accomplished by the Purchasing designee.
(c) Construction change orders may be permitted without competition as described in Chapter
41.32 GJMC.
(Res. 04-12 (§ 10.6), 1-16-12)
The formal bid process may be waived by the Purchasing Manager
under the following conditions:
(a) Where the process may cause undue delay or hardship for a department,
division or office of the City; and
(b) When deemed in the best interest of the City.
(Res. 04-12 (§ 10.7), 1-16-12)
All bids may be rejected when one or more of the following occur:
(a) All bids exceed the budgeted amount;
(b) There are no responsible bidders;
(c) There are no responsive bidders;
(d) The project is abandoned;
(e) The specifications, scope and/or terms and conditions are revised;
or
(f) Irregularities in the procurement process as determined by the Purchasing
Manager and/or the City Manager.
(Res. 04-12 (§ 10.8), 1-16-12)
(a) Protest.
Any actual or prospective bidder, contractor
or vendor who is aggrieved in connection with the solicitation or
award of a contract and purchase order may protest to the Purchasing
Manager or City Manager as set out in this section. The protest shall
be submitted in writing to the Purchasing Manager or his designated
representative, within seven working days after the aggrieved person
knows or should have known of the facts giving rise thereto.
(1) Protests in connection with a solicitation or award of a contract
involving an amount less than $50,000 shall be filed with and determined
by the Purchasing Manager.
(2) Protests in connection with a solicitation or award of a contract
involving an amount of $50,000 or more shall be filed with and determined
by the City Manager.
(b) Authority.
The City Purchasing Manager or City Manager,
as set out in this section, shall have the authority to settle and
resolve a protest of an aggrieved bidder, contractor or vendor, actual
or prospective, concerning a solicitation or award of a contract.
A written decision regarding the protest shall be rendered within
30 working days after the protest is filed. This authority shall be
exercised in accordance with the City procurement rules and regulations
set forth herein. The City reserves the right to make determinations
that are deemed in the best interest of the City. If 30 days have
passed without a decision, the written protest shall be forwarded
to the City Attorney’s office for resolution.
(Res. 04-12 (§ 10.9), 1-16-12)
After solicitations are opened and reviewed at the solicitation
opening, they become confidential documents until the Purchasing Manager
or designee awards the contract or the solicitation project is cancelled.
Staff shall not discuss solicitations with competing vendors. Vendor
questions must be referred to the Purchasing Division. Staff shall
not discuss with any vendor the recommended award or the reasons for
awarding or not awarding.
(Res. 04-12 (§ 10.10), 1-16-12)
If the Department and the Purchasing Division disagree about
the award recommendation, the Department Director or designee and
the Purchasing Manager or designee shall meet personally to review
the reasons for the disagreement. The mutual goal of the Department
and the Purchasing Division is to award to the lowest responsive and
responsible bidder for goods or services that meet the Department’s
requirements contained in the specifications. Disagreements that cannot
be resolved shall be forwarded to the City Manager’s office
for final determination.
(Res. 04-12 (§ 10.11), 1-16-12)