All procurement transactions should be conducted in a manner that provides full and open competition. Procurement procedures should avoid any provisions that would restrict or eliminate competition. Some of the situations considered to be restrictive of competition include:
(a) 
Placing unreasonable requirements on firms in order for them to qualify to do business;
(b) 
Requiring unnecessary or unreasonable levels of prior experience and excessive bonding;
(c) 
Non-competitive pricing practices between firms or between affiliated companies;
(d) 
Non-competitive awards to consultants that are on retainer contracts;
(e) 
Organizational conflicts of interests;
(f) 
Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance of other relevant requirements of the procurement; and
(g) 
Any arbitrary action in the procurement process.
(Ord. 2014-04)
The city of Nickerson shall conduct procurement in a manner that avoids the use of administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals. Including criteria in a request for proposals such as "knowledge of community" or "experience with community" would be considered to "unduly restrict competition" and is discouraged.
(Ord. 2014-04)
The city of Nickerson will have written selection procedures that provide, at a minimum, that all solicitations:
(a) 
Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. The description should not contain features that 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, describe those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use.
(b) 
Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equal" description may be used as a means to design the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors must be clearly stated.
(c) 
Identify all requirements that the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
(Ord. 2014-04)
Four methods of procurement are allowed by the city of Nickerson: small purchases; competitive sealed bids; competitive negotiations; and noncompetitive negotiations.
(Ord. 2014-04)
Small purchase is a relatively simple and informal method used where goods or services do not cost in the aggregate of more than $25,000.
(a) 
Price or rate quotations should be obtained in writing from an adequate number of qualified sources (generally at least three sources). Written specifications should be provided to assure all responders are bidding on the same product or service. If the dollar amount is less than $500.00, phone solicitation is allowed.
(b) 
Documentation regarding the businesses contacted and the prices submitted should be maintained.
(c) 
Written documentation regarding basis for selection and cost should be maintained.
(d) 
Preparation and signing of a contract formalizing a scope of work and the terms of compensation is required for all contracts over $2,000.
(Ord. 2014-04)
(a) 
Procurement by competitive sealed bids (formal advertising) shall be used when the following conditions exist:
(1) 
A complete, adequate and realistic specification or purchase description is available;
(2) 
Two or more responsible suppliers are willing and able to compete effectively for the business;
(3) 
The procurement lends itself to a firm fixed-price contract (a specified price to be paid when the items or services are delivered); and
(4) 
Selection of the successful bidder can appropriately be made principally on the basis of price.
(b) 
When a cost estimate for purchase of supplies or equipment or for construction is in excess of $25,000, the competitive bidding process is applicable.
(c) 
Bids are publicly solicited (advertised in newspapers) and kept in confidence until there is a public bid opening. A firm-fixed price contract is awarded to the responsible bidder whose bid, conforming to all material terms and conditions of the invitation for bids, is lowest in price. When used formal advertising, the following requirements apply:
(1) 
The invitation for the bids must be publicly advertised and bids must be solicited from an adequate number of known suppliers or contractors, providing them sufficient time prior to the date set for opening the bids.
(2) 
The invitation for bids, including specifications and attachments, must clearly describe the items or services required in order for the bidders to properly respond. The primary basis for the award is cost.
(3) 
All bids must be opened publicly at the time and place stated in the invitation for bids.
(4) 
All bids received must be tabulated and reviewed according to the written criteria given to prospective bidders.
(5) 
A firm-fixed price contract award (lump sum or unit price) must be made in writing to the lowest responsive and responsible bidder. Negotiations with the low bidder are not allowed under CDBG programs.
(6) 
Preparation and signing of a contract formalizing a scope of work and the terms of compensation is required (after confirming the contractor is not on the federal debarred list).
(7) 
Any or all bids may be rejected if there is a sound documented reason.
(8) 
All unsuccessful bidders must be notified in writing.
(d) 
Procedure.
(1) 
An invitation for bids (IFB) notice for all procurement requiring sealed bids is issued. This notice shall be published at least once in at least one official newspaper of general circulation within the community thirty days before bid date or an adequate time to allow bid preparation. Bids from responsible prospective bidders should be solicited by sending them a copy of the notice. If the project is complicated, a pre-bid conference may be held with qualified and interested parties to discuss the project.
(2) 
The IFB shall include a general description of the goods or services to be procured, the location where bids or specifications may be secured, and the time and place for opening bids. Bid award must be made to the lowest responsible bidder.
On CDBG grants the newspaper notice must also contain language which calls to the attention of bidders all applicable requirements which must be complied with such as: Section 3 of the 1968 Housing Act, Section 109 of the 1984 Housing and Community Development Act, the Civil Rights Act of 1964 and Executive Order 11246.
(3) 
The sealed bids should be opened in public at the time and place stated in the IFB and tabulated at that time.
(e) 
Review Process. The following evaluation criteria may be used with varying weights to determine responsibleness:
(1) 
Character, integrity, reputation, judgment, and experience of the firm.
(2) 
Ability of the vendor to provide the material or service promptly or within the time specified.
(3) 
Quality of performance by the vendor on previous contracts, orders, or services.
(4) 
Ability of the vendor to provide future maintenance and service for all equipment purchased from the vendor.
(5) 
The city of Nickerson has the responsibility to approve or disapprove the "responsible" bidder criteria. If a lowest bidder is rejected, he/she must be notified in writing and the reason for rejection of his/her low bid fully stated. Reasons for rejection must be documented.
The estimated costs shall be analyzed to determine whether the price of the services required is reasonable. Comparative prices in the area for similar services could be used in the analysis. Professional organizations, boards of trade, and unions could be consulted for assistance.
The criteria upon which a bid will be evaluated shall be established by the city of Nickerson. The review shall be thorough, uniform, and well documented. Once a contract has been awarded, all unsuccessful bidders will be informed in writing of the bid award.
The city of Nickerson retains the right to cancel an invitation for bids or reject all bids if it is determined in writing that it is in the best interest of the city.
If the city of Nickerson receives only one response to any procurement solicitation, including competitive bidding, the solicitation shall be reviewed to determine whether it was unduly restrictive or geared to a particular contractor. On CDBG grants all bidding and review information must be submitted to the Kansas Department of Commerce for approval prior to awarding the contract.
For a CDBG grant, if it is determined that a rebid is needed for all or part of the bid schedule, the city and/or its grant administrator must contact the KDOC field representative of the area for consultation and guidance.
(f) 
Contract Provisions.
(1) 
Once a firm is chosen, preparation of a contract with the successful individual or firm may be carried out. The contract must include all of the previously mentioned provisions: scope of services, contract amount, effective date of contract, method of compensation and when CDBG funds are involved the state and federal standards described in the "Applicable Laws and Regulations" section of the CDBG application and general requirements.
(2) 
The statement of work should be prepared in accordance with the procurement procedures. It must describe as precisely as possible the tasks to be completed, specify timetables for completion, identify the products and/or services to be delivered and stipulate the method of payment. The statement of work could be used as a tool to measure performance, but only if the desired outcomes are clearly specified in measurable products.
(3) 
Bonding requirements.
(4) 
When CDBG grants are involved the contract will include all applicable labor standard requirements and other federal applicable regulations.
(Ord. 2014-04)
(a) 
Competitive negotiations are initiated by publishing a request for proposals (RFP) or a request for qualifications (RFQ). Although publishing is not required, it may be used if an adequate number of service providers are available in the circulation area. At a minimum, all qualified firms should be notified. The RFP is used when price is a factor in selection; the RFQ is used when price is considered after selection (this is usually applicable only for architectural and engineering services). Generally accepted guidelines for procurement by competitive proposals include:
(1) 
In both the RFP and RFQ, the services to be procured are clearly defined, as are the factors to be used in evaluation and selection. A written basis of selection must be prepared.
(2) 
All proposals received are to be reviewed according to the written criteria given to prospective bidders and the review should be in writing, i.e., basis of selection must be documented.
(3) 
For RFQs, an invitation is made to one or more respondents to negotiate a price or fee.
(4) 
Preparation and signing of a contract formalizing a scope of work and the terms of compensation is required.
(5) 
All unsuccessful bidders must be notified in writing.
(b) 
Procedure. The competitive negotiation method is the normal method used to procure professional services.
(1) 
A request for proposals (RFP) or a request for qualifications (RFQ) will be issued. The RFP will be used when price is a factor in selection; the RFQ will be used when price is considered after selection (generally only for engineering/architectural services). The first step in both processes shall be to determine which services are needed. The services and the factors to be used in evaluation and selection shall be clearly defined.
(2) 
If a statement of qualifications is used, each submittal shall be reviewed and ranked according to previously established selection criteria of qualifications. This review shall be documented in writing. Upon determination of the best statements, an invitation will be made to one or more respondents to negotiate a price or fee. The reason the firm is chosen and that the price established is reasonable shall be documented.
(3) 
If an RFP is issued, it shall specify the scope of services to be provided and type of contract to be used: cost reimbursement, fixed price, or per diem contract. Cost plus a percentage of cost contracts cannot be used.
(4) 
The RFP shall also specify that cost and price data is required to support the proposed cost, state anticipated start and completion dates, and list evaluation criteria that shall be used in ranking proposals. Additionally, any materials such as reports, maps, and site plans to assist interested firms in preparing responsive proposals shall be provided. If the project is complicated, a pre-bid conference can be held with qualified and interested parties to discuss the project.
(5) 
The RFP and RFQ shall also include:
(A) 
Scope of services, which includes a detailed description of extent and character of the work to be performed.
(B) 
Time for performance and completion of contract services, including project milestones, if any.
(C) 
Specifications of materials or other services to be provided by both parties, e.g., maps, reports, printing, etc.
(D) 
Method of compensation, amount of contract, and provisions for compensation for services including fee and/or payment schedules and specification of maximum amount payable under contract.
(6) 
If the professional services are for a CDBG grant the contracts must state that the contracting firm will abide by the laws and regulations described in the "Applicable Laws and Regulations" sections of the Kansas Small Cities CDBG Program Guidelines.
(c) 
Review Process. After response of either statements of qualifications from an RFQ or proposals in response to an RFP, the review process can begin according to the established selection criteria.
The review process shall be uniform and well documented. The preferred method is that the review be conducted by a committee composed of at least three people who have technical knowledge of the type of project the city of Nickerson is considering. However, these reviewers must not have apparent conflicts of interest with any of the firms or individuals under review. Examples are family relationships, close friendships, or business dealings. Some of the evaluation criteria to be considered include:
(1) 
Specialized experience or technical expertise of the firm and its personnel in connection with the type of services to be provided and complexity of the project.
(2) 
Past record of performance on contracts with the locality and other clients, including quality of work, timeliness, and cost control.
(3) 
Capacity of firm to perform the work within time limitation, taking into consideration the current and planned workload of the firm.
(4) 
Familiarity of the firm with the type of problems applicable to the project.
The relative importance of each of these factors will be determined beforehand by assigning value to each (for example, specialized experience may be assigned 40 points out of a total possible 100 points). Evaluation consideration for local firms can be established if familiarity with local conditions is an important element for a successful project. Selection criteria shall be shared with all prospective bidders. No criteria will be established which would eliminate specific vendors.
(d) 
Contract Provisions. Once a firm is chosen and the basis of selection is documented along with the reasonability of cost, the preparation of a contract with the successful individual or firm may be completed. The contract must include the following general administrative provisions.
(1) 
Effective date of contract.
(2) 
Names and addresses of the locality and firm.
(3) 
Names of representatives of locality and firm who will act as liaison for administration of the contract.
(4) 
Citation of the authority of the city of Nickerson under which the contract is entered into and source of funds.
(5) 
Conditions and terms under which the contract may be terminated by either party, both termination for cause and termination for convenience and remedies for violation/breach of contract.
(Ord. 2014-04)
(a) 
Non-competitive negotiations can be used only when (1) the use of competitive negotiations is not feasible, such as only one supplier, (2) there is some public emergency, or (3) the results of competitive negotiations are inadequate.
(b) 
Negotiations are conducted with the selected company regarding a scope of work and price.
(c) 
Preparation and signing of a contract formalizing a scope of work and the terms of compensation is required.
(Ord. 2014-04)
If city funds are used to pay for a product or service, or any part thereof, Nickerson's procurement procedures apply. These procurement procedures shall describe how services are to be obtained. Nickerson's procurement policy shall address at a minimum the following requirements:
(a) 
Procurement should be reviewed to avoid unnecessary and duplicate purchases and to ensure costs are "reasonable."
(b) 
Invitation for bids or requests for proposals must be clearly written and describe the technical requirements of the equipment or services.
(c) 
Consider consolidating or breaking out procurement to obtain a more economical purchase.
(d) 
Analyze the alternatives of lease versus purchase, where appropriate, and perform any other appropriate analysis in order to determine the most economical procurement approach.
(e) 
Enter into state and local inter-governmental agreements for procurement or use of common goods and services to achieve greater economy and efficiency, where feasible.
(f) 
Use federal and state excess and surplus property in lieu of purchasing new equipment and property whenever it is feasible and reduces project costs.
(g) 
Award only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration must be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
(h) 
Maintain records sufficient to detail the significant history of procurement. These records must include, but are not necessarily limited to, rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
(i) 
Positive effort must be made to use small, minority, and/or female-owned businesses.
(j) 
The method of contracting (fixed price, cost plus fixed fee, purchase orders, etc.) should be appropriate.
(k) 
Permitted to use "time and material" type contracts only in very limited situations:
(l) 
After a determination is made that no other contract is suitable; and
(m) 
If the contract includes a ceiling price that the contractor exceeds at its own risk.
(n) 
Responsible for, in accordance with good administrative practice and sound business judgment, the settlement of all contractual and administrative issues arising out of procurement activities.
(o) 
Have protest procedures to handle and resolve disputes relating to procurement.
(Ord. 2014-04)