Category: Finance | Policy No.: F-4 |
Subject: Purchasing & Contracting Policies and Procedures | Date Issued: 9/9/2024 (Res. 24-415) |
Staff Contact: Public Works Engineering Director | Last Updated: |
1.
Mission: To establish sound purchasing, procurement, personal services/ vendor and public works contracting practices that give the City flexibility allowed under the law while retaining accountability to taxpayers for the responsible expenditure of funds.
2.
Goals: The City is focused on achieving the following purchasing, procurement, personal services/vendor and public works contracting goals:
• | Purchase or procurement of materials, equipment, supplies, and services in a timely and cost-effective manner, while meeting all legal obligations. |
• | Use of Requests for Proposals (RFP), invitations to bid (ITB), Requests for Qualifications (RFQ) when appropriate to achieve competitive pricing from responsive and responsible vendors and contractors. |
• | Utilization of public rosters for small works, limited public works, consulting services, and vendor lists (for purchases not related to public works) when appropriate. |
• | Fair and transparent contract negotiation, review, and evaluation. |
• | The City shall encourage the participation of minority businesses, women’s business enterprises, and labor surplus area firms |
3.
Policy Statement: It is the policy of the City to use consistent procedures for all Departments to purchase or procure goods and services for City operations and construct public works. This consistency should facilitate the most efficient and cost-effective manner of purchasing, procuring, and constructing in compliance with applicable laws and regulations, and in accordance with best practices. All purchases and procurement of materials, equipment, supplies, and services, and all construction of public works, are to be made within budgetary limitations and for the purpose of meeting the goals and objectives approved in the City’s budget. Purchases, procurements, and construction which cause a fund to exceed the budgeted authority shall be pre-authorized by the City Council and formally approved through a budget amendment process. All payments for purchases, procurements and public works construction made by the City shall be subject to approval by the City Council through the voucher approval process.
4.
City Manager Authority: The City Manager has the authority to modify this policy (Administrative Changes) as necessary for the effective and efficient conduct of City business and to update these policies to be consistent with local, state, and federal law, except in matters of increased purchasing limit authority for the City Manager which must be approved by the City Council. All Administrative Changes to this policy will be distributed to all city employees and filed with the City Clerk.
5.
Local Businesses: For purchases and procurements, the City encourages participation by vendors with business locations within the City and will try to include appropriate City vendor(s) when seeking price quotations for the purchase or procurement of goods and services.
6.
Compliance by City Employees: All employees must follow these Purchasing Policies for purchase and procurement of materials, equipment, supplies, and services and construction of public works.
7.
Basis: These Purchasing Policies are based on the Revised Code of Washington (RCW); adopted resolutions and ordinances of the City Council, which may be more restrictive than the RCW; and guidelines from the State Auditor’s Office and the Municipal Research and Services Center.
8.
Grant Funds: If grant funds are involved in the proposed purchase, procurement or construction, applicable requirements should be obtained from the funding agency. Such requirements may be more restrictive than or different from these Purchasing Policies. If federal funds are involved, additional requirements outlined in 2 CFR 200.318 through 2 CFR 200.326 must be complied with, as outlined in these Purchasing Policies under Section V. Federal Procurement Standards/Guidelines.
9.
Solicitation: Local Agencies must comply with State law and their Title VI Agreement for all advertisements. Specific Title VI language must be included in the advertisement when soliciting for consultant services and construction contractors. See the Washington State Local Agency Guidelines (LAG) manual for Title VI language that must be included in the advertisement. Also see the LAG manual for additional requirements for solicitations involving federal funds.
10.
Right-of-Way Acquisition Procedures: City Council adopted Right-of-Way Acquisition Procedures under Resolution No. 23-404, see Appendix B[1].
[1]
Editor's Note: Appendix B, right of Way Acquisition Procedures is included as an attachment to this title.
11.
Washington State Sales Tax: Washington State sales tax (WSST) shall be included when defining purchase price, except in the case of public works projects, including but not limited to projects located within the right-of-way. According to RCW Chapters 35.22.620 and 35.23.352, the cost of a these types of public works projects should include the costs of materials, equipment, supplies, and labor. For the purposes of bid authority and process, WSST need not be included in cost estimates.
12.
Capitalized/Italicized Terms: Capitalized/italicized terms in these Purchasing Policies are defined in Section IX.
13.
Delegation of Authority (Designee): Delegation of authority, where allowed, shall be in writing identifying the person giving the delegation, the person/title authority is being granted to, the level of authority being granted, and an expiration date if applicable. Approved delegation of authority is submitted to the Finance Department, City Clerk, and the designee. Any individual granted “acting” status shall have the same authority as the individual granting the “acting” status.
14.
Official Publication: The City’s official publication sites, for the purpose of competitive bid announcements, requests for qualifications, and requests for proposals, are the Seattle Times and the Daily Journal of Commerce.
15.
Small Works Roster: The City utilizes the Municipal Research and Services Center (MRSC), as its direct negotiation and Small Works roster provider pursuant to RCW 39.04.151(1). The City has established these policies and utilized MRSC to implement the necessary procedures for direct negotiation and Small Works contracting authorized under RCW 35.23.352, RCW 39.04.151, and RCW 39.04.152. MSRC performs all requirements to maintain a small works roster as outlined in RCW 39.04.200.
16.
Consultant Roster: The City may use the Municipal Research Service Center’s (MRSC) roster as its official consultant roster.
17.
Vendor List: The City may use the MRSC Roster as its vendor list.
18.
Unresponsive Solicitations: If no responses are received after a formal advertisement or after all qualified vendors/contractors/consultants have been solicited on a roster, the City may readvertise, direct select any firm (regardless of the roster), or the City may perform the work at the Department Manager’s choice.
19.
Interagency Contracting: All contracts with other government agencies may be executed by the City Manager once approved by the City Council.
20.
Artistic Services: Where the City desires artistic services to be provided by an artist, the approval authority shall be as set forth in “Section VI. Contracts for Consultant, Vendor, and Artist Services”.
A.
Code City.
The City is a code city under Chapter 35A RCW, with a population exceeding 20,000. As a code city, Kenmore is governed by the following:
(Note: These Purchasing Policies were updated on the revision date noted on the cover. When utilizing these policies and procedures, check amendments to the RCW since that date.)
RCW 35A.40.200 General law relating to public works and contracts: “Every code city shall have the authority to make public improvements and to perform public works under authority provided by general law for any class of city and to make contracts in accordance with procedure and subject to the conditions provided therefor, including but not limited to the provisions of: (1) Chapter 39.04 RCW, relating to public works; (2) Chapter RCW 35.23.352 relating to construction of public works or improvements, including materials, supplies and equipment; (3) Chapter RCW 9.18.120 and 9.18.150 relating to suppression of competitive bidding; (4) Chapter 60.28 RCW relating to liens for materials and labor performed; (5) Chapter 39.08 RCW relating to contractor’s bonds; (6) Chapters 39.12 and 43.03 RCW relating to prevailing wages; (7) Chapter 49.12 RCW relating to hours of labor; (8) Chapter 51.12 RCW relating to workers’ compensation; (9) Chapter 49.60 RCW relating to antidiscrimination in employment; (10) Chapter 39.24 RCW relating to the use of Washington commodities; and (11) Chapter 39.28 RCW relating to emergency public works”.
B.
Code References.
RCW 35A.40.210 Public work or improvement -- Procedures – Purchases
Because the City is a “code city,” procedures for public works or improvements are governed by RCW 35.23.352. |
Because the City is a “code city” with a population of 20,000 or more, procedures for purchases are governed by RCW 35.22.620. |
RCW 35.22.620 Public works or improvements – Limitations on work by public employees – Small works roster – Purchase of reused or recycled materials or products.
RCW 35.23.352 Public works - Contracts – Bids – Small works roster – Purchasing requirements, recycled or reused materials or products
RCW 35A.40.200 General law relating to public works and contracts (for code cities) RCW 39.04 Public Works Complete Chapter headings
RCW 39.04.152 Uniform small works roster provisions – invitations for bids – Retainage, performance bonds, Bid quotations-List of small works contracts awarded
RCW 39.04.280 Competitive bidding requirements-Exemptions
RCW 39.04.350 Bidder responsibility criteria – Sworn statement – Supplemental criteria
RCW 39.34.030 Joint powers – Agreements for joint or cooperative action, requisites, effect on responsibilities of component agencies – joint utilization of architectural or engineering services – Financing of joint projects
WAC 296-127-010(7)(a)(i) through 296-127-010(7)(a)(vi) and WAC 296-127-010(7)(b)(i) through 296-127-010(7)(b)(iii) – Definition of public works
A.
Approval Authority and Procedure (for Supplies, Materials, Software,** and Equipment Not Related to Public Works):
Dollar Limit | Approval Required | Procedure |
|---|---|---|
Up to $50 | Petty cash custodian | Petty cash system receipt or invoice |
>$50 to $5,000 | Budget authority AND Dept. Director/City Manager or Designee | Invoice |
>5,000 to $50,000 | Budget authority AND Department Director/City Manager or Designee | Direct purchase or quotes (verbal* or written) purchase order or contract |
>$50,000 to $150,000 | Budget authority AND City Manager or Designee | Solicit 3 quotes (verbal* or written) contract |
>150,000 to $250,000 | City Council | Obtain 3 written quotes and contract |
Over $250,000 | City Council | Competitive Bid Process or competitive negotiation** and contract* |
* | Verbal quotes must be documented in writing |
** | Purchases of electronic data processing or telecommunication equipment, software, or services would follow the process the City uses for any other equipment, services, or work, or by using the competitive negotiation process set forth in RCW 39.04.270. |
B.
Process:
NOTE: Purchases may not be broken into multiple projects or purchases to avoid compliance with state statutes and these Purchasing Policies.
1.
Generally
The City is not required to purchase materials, equipment, and supplies by competitive bidding, and has flexibility in determining how to solicit competition in purchasing materials, equipment, and supplies (See RCW 35A.40.210 and 35.22.620). The City may, but is not required to, use the vendor list process of RCW 39.04.190 to award contracts for the purchases of materials, equipment, and supplies. If the City uses the vendor list process, it must establish vendor lists either by publishing at least twice per year, in a newspaper of general circulation in the City, a notice of the existence of vendor lists and solicit the names of vendors for the lists, or use vendor lists of another agency or nonprofit corporation, such as MRSC. If the City uses a vendor list, the City must secure telephone or written quotations, or both, from at least 3 vendors whenever possible to assure that a competitive price is established and for awarding purchase contracts to the lowest responsible bidder as defined in Chapter 39.26 RCW. A bidder is an individual or entity who submits a quotation. RCW 39.26.010. The term “lowest responsible” is not defined in Chapter 39.26 RCW. Except for the competitive bid or competitive negotiation process, the awarded contract does not need to be advertised.
2.
Purchases up to $5,000
Purchases may be made up to $5,000 by Department Directors or their designees, within budgetary authority and with a supporting invoice; a purchase order is not required.
3.
Purchases over $5,000 and up to $50,000
Purchases may be made for over $5,000 up to $50,000 by using direct purchase or quotes, using a purchase order or contract to designate what budget amount is being encumbered. Best practice purchasing applies, meaning that competitive relationships with vendors / suppliers / contractors will be shopped or negotiated to assure competitiveness and reasonableness in achieving low cost, good quality and good service.
4.
Purchases over $50,000 up to and including $150,000:
Three or more documented (verbal or written) solicitations are required. A purchase order or contract approved by the City Manager or designee is required.
5.
Purchases over $150,000 up to and including $250,000:
Three or more documented written quotations are required. The City Manager may execute the contract after City Council has awarded the contract and approved the purchase.
6.
Purchases over $250,000:
The competitive sealed bid process or competitive negotiation process is required resulting in a contract. The City Manager, Department Director, or designee shall determine the competitive bidding procedure for any particular purchase. The City Manager may execute the contract after the City Council has awarded the bid and approved the purchase. Alternatively, the City may follow the procedures set forth in RCW 39.07.270 for the competitive negotiation process.
7.
Purchase Orders:
A purchase order is requested from the Finance Department either through the financial software or a direct request to Finance Department staff. All purchase order requests shall include total dollar amount of purchase and shall include a description of what is being purchased along with order date and expected delivery. Additional information on the purchase may be provided within the purchase order or attached to the purchase order once received. Purchase orders are signed by the individual with the appropriate authority. Once signed, purchase orders shall be forwarded to the Finance Department and to the vendor, if requested.
8.
Change Orders:
Change orders may be approved by the approving authority if the total cost of change orders approved plus the original purchase/contract amount is within that persons authorization limit.
C.
Cooperative Purchasing (Piggybacking) under Chapter 39.34 RCW.
1.
The City may join in cooperative purchasing arrangements with other public agencies for materials, equipment, and supplies by entering into written intergovernmental cooperative purchasing agreements (also known as interlocal agreements) to allow purchases using another agency’s purchasing contract, with the goal of saving time and obtaining better prices and terms. The City Council must approve the intergovernmental cooperative purchasing agreement by resolution or ordinance before any such agreement may enter into force.
3.
When State of Washington contracts are used through the Washington State Office of State Procurement (OSP) there are no additional bidding requirements.
4.
When the City has entered into an intergovernmental cooperative purchasing agreement, the City may make purchases from the other agency’s vendor contract if the vendor has agreed to such participation. A separate contract or purchase order between the City and the vendor is necessary, but no separate bid is required. When purchasing under the other agency’s contract, the City is responsible for compliance with statutes (including bid limits) governing purchases by or on behalf of itself. Before making a purchase under such an agreement, the City must ensure that:
a.
The other agency complied with its own statutory requirements for awarding the bid, proposal, or contract. The other agency either i) posted the bid or solicitation notice on a website established and maintained by a public agency, purchasing cooperative, or similar service provider, for purposes of posting public notice of bid or proposal solicitations, or ii) provided an access link on the state’s web portal to the notice (RCW 39.34.030(5)(b)); and
b.
The request for bids allows for the contract to be used by more than one local government.
D.
Leases of Equipment without Option to Purchase.
Leases of equipment without an option to purchase are not subject to competitive bid limits and do not need to be competitively bid. Department Directors may negotiate lease agreements for equipment when an outright purchase is not the preferred alternative. All leases shall adhere to the approval authority schedule (dollar amounts equal total lease payments.)
E.
Annual Renewals.
Annual renewals for software, rentals, and any other purchase with an annual renewal option may be renewed at the City Manager/Department Director’s discretion. Annual renewals may be assumed as a new “purchase” and the purchasing authority/process requirements apply as if the product were newly purchased unless otherwise approved by council.
F.
Other Purchases.
1.
Federal Government – RCW 39.32.070 through 39.32.090 authorizes cities to enter into contracts with the federal government or any agency thereof to purchase equipment, supplies, materials, or other property (real or personal), without regard to laws requiring advertising, giving of notices, inviting or receiving bids, or requiring the delivery of purchases before payment. The City Council may authorize by ordinance or resolution purchasing from or through the federal government for supplies, materials, electronic data processing and telecommunications equipment, software, services and/or equipment without calling for bids. The City Council may designate a City employee to enter a bid on behalf of the City at any sale of equipment, supplies, materials or other property owned by the federal government or any agency thereof, and to make any down payment, or payment in full, required in connection with the bid. No interlocal agreement is necessary.
2.
Surplus Property from another government – The City may purchase or lease surplus real or personal property from the State or any local government, the federal government, or federally recognized Indian tribe, on such terms and conditions as may be mutually agreed upon by the two governments (RCW 39.33.010.) Except as otherwise provided for in law, the transfer must be at true and fair value (RCW 43.09.210).
A.
Approval Authority:
Dollar Amount | Approval Required |
|---|---|
$0 to $50,000 | Department Director or Designee |
$0 to $150,000 | City Manager or Designee |
Over $150,000 | City Council1. |
1.
A project cannot be split into phases for the purpose of avoiding minimum dollar restrictions.
B.
Bid Thresholds (RCW 35.23.352):
Amount* | Bid Process |
|---|---|
≤$75,500 (single craft or trade) | Direct Negotiation from small works roster** (competitive bid process not required and optional) or City day labor |
≤$150,000 (multi-craft or trade) | Direct Negotiation from small works roster** (competitive bid process not required and optional) or City day labor |
≤$75,500 to $350,000 (single craft) >$150,000 to $350,000 (multi-craft) | Small Works roster process** or formal bid process; contract |
>$350,000 | Formal bid process: |
* | Estimate does not include sales tax |
** | See requirements for small works roster in Section D below |
1.
The term “Public Works” is defined in Section IX.
2.
To determine if a public works project must be competitively bid based on bid limit dollar amounts, the total cost of each project or purchase must be estimated using the costs of materials, equipment, supplies, and labor. This estimate does not include Washington State sales tax (WSST).
3.
The City may use employees to construct public works projects by contract or day labor without calling for bids whenever the estimated cost of the public works, including the cost of materials, equipment, supplies, and labor does not exceed $75,500 for a single craft or trade or $150,000 for multiple crafts or trades (RCW 35.23.352). If the public works project exceeds these amounts but is $350,000 or less, the City may use the small works roster process of RCW 39.04.152. The City cannot divide the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project (RCW 35.23.352).
4.
Pursuant to RCW 35.23.352(1), the City may have its own regularly employed personnel perform work which is an accepted industry practice under prudent utility management without a contract. For purposes of this section, "prudent utility management" means performing work with regularly employed personnel utilizing material of a worth not exceeding $300,000 in value without a contract. This limit on value of material being utilized in work being performed by regularly employed personnel shall not include the value of individual items of equipment. For purposes of this section, "equipment" includes, but is not limited to, conductor, cabling, wire, pipe, or lines used for electrical, water, fiber optic, or telecommunications and may also include surface water utilities.
5.
Public Works over $350,000 must utilize the formal bid process per RCW 35A.40.210, 35.23.352. The formal bid process shall be consistent with RCW 35.23.352, including, but not limited to:
6.
A project cannot be split into phases for the purpose of avoiding minimum dollar restrictions.
7.
RCW 47.24.050 and 35.77.020 govern construction or repairs of streets or bridges. These statutes authorize the City Council by resolution or ordinance to contract with King County for repair or construction of any or all the City’s streets, sidewalks, traffic control devices, drainage systems or bridges. No bidding requirements apply to such projects.
8.
For all public works contracts, bidders must be Responsible Bidders.
C.
Unit Priced Contracts (Repair and Maintenance):
Amount* | Proces |
|---|---|
≤$75,500 (single craft) ≤$150,000 (multi craft) | Competitive bid process per RCW 35.23.352(13) |
>$150,000 to $350,000 | Small Works bid process per RCW 35.23.352 (formal bid process is acceptable but not required); contract |
* | Estimate does not include sales tax |
** | See requirements for small works roster in Section D below |
1.
The City shall follow RCW 35.23.352(13) (as noted in RCW 35A.40.210) for unit priced contracts (all referred to as “on-call” contracts).
2.
Unit priced contracts are considered a “public work” as described above. They are bid and awarded without a specific public works project or scope of work in mind, but rather are categorized around general types of anticipated work or trades. Most typically, these types of contracts are used for repair, renovation, and maintenance of City facilities. When a specific scope of work is identified, individual work orders are authorized based on either a “not-to-exceed” time and materials basis or a negotiated lump sum amount, using unit prices bid by the contractor.
3.
Invitations for unit priced bids shall include, for purposes of the bid evaluation, estimated quantities of the anticipated types of work or trades, and specify how the city will issue or release work assignments, work orders, or task authorizations pursuant to a unit priced contract for projects, tasks, or other work based on the hourly rates or unit prices bid by the contractor. Contracts must be awarded to the lowest responsible bidder as per RCW 39.04.010. Whenever possible, the city must invite at least one proposal from a certified minority or woman contractor pursuant to under RCW 35.23.352.
4.
During a contract there may be occasions when the original unit/lump sum bid items will not cover work to be accomplished. In such situations, new line items may be added by change orders or the work may be accomplished under a time and materials work order, provided the total unit priced contract amount in the above table is not exceeded.
5.
Multi-year contracts and contract extensions for unit priced contracts will be limited to a maximum of 3 years with the option to extend for an additional 1-year.
D.
Small Works Roster Solicitation (RCW 39.04.152):
Amount* | Bid Process |
|---|---|
≤$75,500 (single craft) <$150,000 (multi craft) | Direct negotiations from the Small Works roster; contract (see Section D2 for conditions) |
$150,000 to $350,000 | Small Works roster process; contract (formal bid process is acceptable but not required) |
>$350,000 | Formal bid process, see Section B: |
* Estimate does not include sales tax |
1.
Small Works Roster Process – Generally.
Department Directors or designees, and the City Manager or designee, may use the small works roster process of RCW 39.04.152 for public works projects with an estimated cost of $350,000 or less. In using the Small Work roster process at RCW 39.04.152, the Department Directors or designees shall secure telephone, written, or electronic quotations from contractors on the appropriate small works roster to assure that competitive prices are established and to award contracts to the lowest Responsible Bidders. The invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. Detailed plans and specifications need not be included in the invitation. The Department Director or designee may at their discretion, invite/ accept quotations from all contractors on any category on the small works roster that have indicated an interest in performing work in the applicable geographic area and have demonstrated that they can perform the work.
Whenever possible, the City shall invite at least one proposal from a certified minority or woman contractor pursuant to RCW 35.23.352(4).
2.
Small Works Roster Process – Direct Contracting – Less than $150,000 (RCW 39.04.152). RCW 39.04.152(4)(b) provides that local governments are encouraged and authorized to direct contract with small businesses, before contracting with other contractors on the appropriate small works roster without a competitive process pursuant to the following the procedures:
i)
If there are 6 or more contractors meeting the definition of small business on the applicable roster, the City must direct contract with one of those small businesses on the applicable roster that have indicated interest in performing work in the applicable geographical area.
ii)
If the City utilizes such direct contracting (per RCW 39.04.152(4)(b)(i)), then it must rotate through the contractors on the appropriate small works roster and must, when qualified contractors are available from the roster who may perform the work or deliver services within the budget described in the notice or request for proposals, and utilize different contractors on different projects. Businesses shall not be singled out for repeated contracting without showing documented attempts to contract with other businesses. This documentation shall be maintained in centralized file.
iii)
If there are 5 or less contractors meeting the definition of small business on the applicable roster, the City may direct contract with any contractor on the applicable roster.
iv)
Small businesses, minority, women, or veteran owned businesses must be notified on the applicable roster when direct contracting is utilized.
v)
A small, minority, women, and veteran-owned business utilization plan must be established.
vi)
If the City elects not to use the direct contracting process identified herein then it may not use direct contracting and must invite bids and electronically notify all contractors on the applicable roster that have indicated interest in performing work in the applicable geographical area.
3.
Small Works Roster Process--$150,000 through $350,000.
If the estimated cost of the work is from $150,000 to $350,000, the City will invite bids notifying all contractors on the applicable small works roster that have indicated interest in performing work in the applicable geographical area.
4.
Projects $350,000 and over.
Public works projects estimated to cost over $350,000 must use a formal bid process, as noted in Section B above, pursuant to RCW 35A.40.210 and 35.23.352.
E.
Competitive Bidding Exceptions (Purchases and Public Works):
1.
Competitive bidding requirements for purchases and public works may be waived as authorized in RCW 39.04.280 for:
2.
If a Department Director or designee desires to waive the competitive bidding requirements for a purchase, the Department Director or designee shall submit a request to the Finance Director or the City Manager, who, after consultation with the City Attorney, if determined to be necessary by the Finance Director or City Manager, will determine whether the waiver should be utilized. Immediately after award of a contract, the contract and the factual basis for the waiver must be recorded and open to public inspection.
3.
If an Emergency exists in the opinion of a Department Director or designee, the City Manager or designee may declare an Emergency, waive competitive bidding requirements for the public work due to the Emergency, and award all necessary contracts to address the Emergency. Thereafter, the Department Director or designee must enter a written finding of the factual basis for the Emergency and enter it of record no later than two weeks following award of the contract(s).
4.
Auctions: Per RCW 39.30.045, the City may purchase any supplies, materials, or equipment at auctions conducted by the government of the United States or any agency thereof, any agency of the state of Washington, any municipality or other government agency, or any private party without being subject to public bidding requirements if the items to be purchased can be obtained at a competitive price. This authority also allows a city to make a purchase on an internet-based auction service, such as eBay, as well as through more traditional, in-person auctions as long as it is not a fixed-price marketplace.
F.
Interlocal Agreements:
The City may join in cooperative arrangements with other public agencies by entering into written intergovernmental cooperative agreements (also known as interlocal agreements). Upon approval of an interlocal agreement by the City Council, interlocal agreements may be executed by the City Manager.
G.
Change Orders
1.
The City Council authorizes the City Manager and Department Directors to approve changes to work Public Works in the following amounts not to exceed in the aggregate the Council approved budget.
2.
Approval authority limitations refer to total cumulative dollar values. For instance, Project/Program Managers are authorized to approve multiple change orders per project providing that the cumulative total change order dollars approved by the Project/Program Managers are below the $10,000 threshold.
Public Works, Small Works, Unit Priced Contract Change Orders | |
|---|---|
Dollar Limits | Approval Authority |
$0 to $10,000 | Project/Program Manager |
$0 to $75,000 or 5% of the original contract amount, whichever is greater | Department Director or Designee |
$0 to $150,000 or 10% of the original contract amount (whichever is greater) or as approved by City Council | City Manager or Designee |
Exceeding budget amount or exceeding original contract authority including contingency | City Council |
* | The contract approval requests are required to include contingency amounts. |
A.
Purpose.
To establish and maintain internal controls that provide assurance that Federal awards managed through the Washington State Department of Transportation are being managed in compliance with all Federal regulations and with the terms and conditions of the award. The City will follow the Uniform Guidance, the Local Agency Guidelines (LAG) distributed by the Washington State Department of Transportation (WSDOT), Government Accountability Office Standards for Internal Control in the Federal Government (the Green Book), and the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control Integrated Framework Principles. For guidance on procurement with federal funded programs managed through other agencies, see that respective agency’s guidelines for policies and procedures.
B.
Internal Controls.
The City will maintain effective internal control over the Federal award, which will provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award:
1.
Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings.
2.
Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive.
C.
Certification.
To assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets, the annual and final fiscal reports or vouchers requesting payment under the agreements must include a certification, signed by an official who is authorized to legally bind the non-Federal entity, which reads as follows: “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise.”
D.
Advance Payments and Reimbursements.
Payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the City whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means.
1.
Advanced payments must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the City to carry out the purpose of the approved program or project. Any advanced payments must be consolidated to cover anticipated cash needs.
2.
The City shall minimize the time elapsed between receipt of federal aid funds and subsequent payment of incurred costs.
E.
Allowable Costs.
Federal awards will meet the following general criteria in order to be allowable except where otherwise authorized by statute:
1.
Be necessary and reasonable for the performance of the Federal award;
2.
Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items;
3.
Be consistent with policies and procedures that apply uniformly to both Federally financed and other activities of the City;
4.
Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost;
5.
Be determined in accordance with generally accepted accounting principles (GAAP);
6.
Not be included as cost or used to meet cost sharing or matching requirements of any other Federally-financed program in either the current or a prior period; and
7.
Be adequately documented.
F.
Procurement of Goods and Personal Services.
When procuring property and personal services under a Federal award, the City will follow either 2 Code of Federal Regulations (CFR) § 200.318 General procurement standards through § 200.326 Contract provisions or City purchasing procedures, whichever is more restrictive. The following table outlines procurement requirements when using Federal funds.
Procurement Method | Goods | Services |
|---|---|---|
Micro-Purchase (Direct Negotiation) – No required quotes. However, must consider price as reasonable, and, to the extent practical, distribute equitably among suppliers. | $0 to $10,000 | $0 to $10,000 |
Small Purchase Procedures (Informal – Vendor List) – Obtain/document quotes from a reasonable number of qualified sources (at least three firms). | >$10,000 to $250,000 | >$10,000 to $250,000 |
Formal Bid Process | >$250,000 | >$250,000 |
Competitive proposals (fixed-price or cost-reimbursement contracts) | Used when conditions are not appropriate for the use of sealed bids. • Must publicize in City’s official publication(s) a request for proposals soliciting from an adequate number of qualified sources • Maintain written method for conducting technical evaluations • Contract must be awarded to responsible firm whose proposal is most advantageous to the program | |
Non-competitive proposals | Appropriate only when: • Available only from a single source; or • Public emergency; and • Expressly authorized by awarding or pass-through agency in response to written request from the City; or • After soliciting a number of sources, competition is deemed inadequate. |
1.
Approval authority required for goods shall be per Section III – A.
2.
Approval authority required for services shall be per Section VII-A.
3.
Contracts for more than the simplified acquisition threshold currently set at $250,000 must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.
4.
Contracts and subgrants of amounts in excess of $250,000 require that the City will comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act.
5.
The City will monitor procurements to avoid duplicative purchases. The City will also continue to enter into interentity agreements to realize cost savings for shared goods and services when possible.
6.
The City will verify and document that vendors are not suspended or debarred from doing business with the Federal government.
7.
Restrictive competition is not allowed for contracting for services.
8.
Contract amendment process shall follow Section VII – B.
G.
Procurement for Architectural and Engineering (A&E) Professional Services.
1.
A formal advertising process must be conducted for all A&E Professional Services. Requests for Qualifications (RFQs) are advertised in the City’s official publication, RFQs must include the evaluation process for selection of interview, interviews must be conducted for all selected candidates. See Section VI-F for RFQ process.
2.
A cost/price analysis must be performed prior to procuring A&E Professional services.
3.
Restrictive competition is not allowed for contracting for services with the exception that geographic location may be considered as long as an appropriate number of qualified firms, given the nature and size of the project, are able to compete on the contract.
4.
Contract amendment process shall follow Section VI – J.
H.
Procurement for Public Works.
1.
For any procurement transaction, you must follow the Uniform Guidance Procurement Standards in 2 CFR § 200.318-200.327 (except where explicitly excluded by the federal awarding agency) which requires consistency with State and local laws, federal laws, and any additional requirements imposed by the awarding agency or pass-through entity.
Procurement Method | Dollar Limits |
|---|---|
Micro-Purchase (Direct Negotiation) – No required quotes. However, must consider price as reasonable, and, to the extent practical, distribute equitably among suppliers. | $0 to $2,000 (subject to prevailing wages) $0 to $10,000 (not subject to prevailing wages) |
Small Purchase Procedures (Informal – Small Works Roster Process) – Solicit for documented quotes from at least three firms. | >$2,000 to $250,000 (subject to prevailing wages) >$10,000 to $250,000 (not subject to prevailing wages) |
Formal Bid Process | >$250,000 |
2.
Approval authority required for goods shall be per Section IV – A
3.
Change order process shall follow Section IV – F.
I.
Single Audit Act.
The City, as a recipient of Federal funds, shall adhere to the Federal regulations outlined in 2 CFR § 200.501, as well as all applicable Federal and State statutes and regulations.
J.
Closure.
A project agreement end date will be established in accordance with 2 CFR § 200.309. Any costs incurred after the project agreement end date are not eligible for Federal reimbursement.
K.
Code of Conduct for use of Federal Funds.
5.
Application – This Code of Conduct applies to all elected officials, employees or agents of the City engaged in the award or administration of contracts supported by federal grant funds.
6.
Requirements – No elected official, employee or agent of the City shall participate in the selection, award or administration of a contract supported by federal grant funds if a conflict of interest, real or apparent, is involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for award:
7.
No Solicitations/Gratuities – The City’s elected officials, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or subcontractors.
8.
Remedies – To the extent permitted by federal, state, or local laws or regulations, violation of these standards may cause penalties, sanctions, or other disciplinary actions to be taken against the City’s elected officials, employees or agents, or the contractors, potential contractors, subcontractors, or their agents. Any potential conflict of interest will be disclosed in writing to the Federal awarding agency or pass-through entity in accordance with applicable Federal awarding agency policy.
A.
Approval Authority
Amount | Approval Authority | Process |
|---|---|---|
$0 to $25,000 | Department Director/City Manager or Designee | Consultant Roster or Request for Proposal/Qualifications; Contract or Purchase Order |
>$25,000 to $50,000 | City Manager or Designee | Consultant Roster or Request for Proposal/Qualifications; Purchase Order or Contract |
>50,000 to $150,000 | City Manager or Designee | Consultant Roster or Request for Proposals or Request for Qualifications; Contract |
>$150,000 | City Council | Request for Proposals or Request for Qualifications; |
B.
Architectural and Engineering (A&E) Professional Services Process
Chapter 39.80 RCW requires the City to utilize a Request for Qualification (RFQ) selection process for A&E Professional Services and to negotiate a contract with the most highly qualified firm. The City must announce its need for such Services by formally publishing an announcement on each occasion when such Services are required or announcing generally to the public its projected requirements for any category or type of such Services (RCW 39.80.030). MRSC Rosters conducts the general announcement requirements for their rosters.
C.
Non-A&E Professional Services (Personal Services)/Vendor Services Process
Non-A&E/Vendor services may be secured through direct selection from the consultant roster or by formal advertisement through the Request for Proposal (RFP) process. The City Manager may waive, at their discretion, the use of the consultant roster and the formal advertisement process for personal/vendor services.
D.
Services $150,000 or Less
For services estimated to cost $150,000 or less, the Department Director, City Manager, or designee, may select firms or individuals from the consultant roster or they may issue a formal advertisement for consultant services. The Department Director/City Manager may issue a purchase order for non-A&E/Vendor services if the purchase order is for $50,000 or less. The number of firms solicited from the roster is at the City Manager/ Department Director’s discretion.
E.
Services More than $150,000
For services estimated to cost more than $150,000, the Department Director, City Manager, or designee shall prepare a formal advertisement for an RFQ or RFP (as appropriate) and publish it in the City’s official publication in advance of the Department’s requirements for such services. This requirement shall apply whether the announcement is for a category or type of service or for a specific need for services.
F.
RFQ/RFP Process
1.
An RFQ/RFP scope of services is prepared, and an advertisement is issued requesting perspective consultants to submit a Statement of Qualifications (SOQ) (for architectural/engineering services) or a Statement of Proposal (SOP) (for non-architectural/engineering services) for the project.
2.
An the RFQ/RFP should include the following information:
a.
The RFQ/RFP number (provided by City Clerk),
b.
Project or service title,
c.
The services needed,
d.
City contact information,
e.
Publication dates and submittal due date,
f.
Submittal address,
g.
How RFQ/RFP will be evaluated,
h.
Process for selection,
i.
Schedule for evaluation and selection, and
j.
Title VI statement
3.
The advertisement for services is prepared with the following information:
4.
Advertisement is sent to the City Clerk to post in the City’s official publication. Advertisement should be sent to City Clerk a minimum of 4 working days prior to first date of posting.
5.
It is recommended that advertisements be posted for a minimum of 3 weeks but no longer than 4. Deviations from the recommendation may be made depending upon the nature of the work and the time of advertisement.
6.
The RFQ/RFP is sent to the City Clerk and are posted on the City’s website.
7.
Changes to the RFQ/RFP or advertisement period are acceptable. Any changes must be made through an addendum and posted to the City’s website. It is recommended that no addendum be issued within 2 days of the RFQ/RFP deadline unless the change extends the deadline for submittal or the change is minor and would not significantly change the outcome of an SOQ/SOP.
8.
SOQ/SOPs may be received either by mail or in electronic form via e-mail by the project manager/requesting department.
9.
SOQ/SOPs are reviewed for completeness and to verify they were received prior to the deadline. Submittals incomplete or received after the deadline are to be rejected.
10.
After SOQ/SOPs are reviewed, those found acceptable are held for consideration for interview/selection. SOQ/SOPs are delivered to a panel for review.
11.
The panel reviews SOQ/SOPs and creates a recommended list of applicants to interview or to select. It is at the City Manager/Department Director’s discretion to interview candidates or to immediately select a candidate for contracting.
12.
If interviews are held, questions are prepared in accordance with the RFQ/ RFP. All candidates are given the same questions to answer. It is up to the department on the meeting format, what questions to ask, and how many to ask.
13.
Once a candidate is selected for contracting, all other candidates are notified of the results.
14.
For projects/services utilizing federal dollars, consult with the grant agency for any additional requirements to securing services.
G.
Contracting
City contract templates should be used for all service contracts, unless the services involve highly technical services, such as computer software application licensing and maintenance, in which case the contract form of the firm or company may be used, after review by the Department Director/City Manager or designee, in consultation with the Finance Director and the City Attorney. For federal funded work, the contract form from the granting agency is required.
H.
Cooperative Purchasing (Piggybacking) under Chapter 39.34 RCW
1.
The City may join in cooperative purchasing arrangements with other public agencies for architectural or engineering services by entering into written intergovernmental cooperative purchasing agreements (also known as interlocal agreements). Interlocal agreements may be executed by the City Manager upon approval of the City Council consistent with RCW 39.04.030.
2.
When State of Washington contracts are used through the Washington State Office of State Procurement (OSP) there are no additional bidding requirements.
3.
The agency contracting with the architectural or engineering firm must comply with requirements as outlined under Chapter 39.80 RCW.
4.
The services to be provided for any agency utilizing an interlocal agreement must be related to, and within the general scope of, the services the architectural or engineering firm was selected to perform, and any agreement must be executed for a scope of work specifically detailed in the agreement.
5.
Interlocal agreements must be entered into prior to commencement of the procurement of any such services.
I.
Artists
1.
Services for artists may be secured similarly to Non-A&E Professional Services.
2.
Artist solicitations may be made through formal advertisement, artists registries, or artist rosters as identified in the City’s adopted art policies.
3.
Contract amount must include the artist’s time and effort to design and install the artwork. Contract work not performed by the artist may be excluded from the artist contract at the City Manager/Department Director or designee’s discretion.
J.
Contract Amendments
1.
The City Council authorizes the City Manager and Department Directors to approve amendments to work or contracts for A&E Professional Services and non-A&E Professional Services in the following amounts not to exceed in the aggregate the approved project budget and/or authorization.
2.
Approval authority limitations refer to total cumulative dollar values. For instance, Department Directors are authorized to approve multiple amendments per contract providing that the total amended dollars approved are below the $25,000 threshold in the aggregate
Dollar Limits | Approval Authority |
|---|---|
No change in contract amount | Project/Program Manager |
$0 to $25,000 | Department Director or Designee |
$0 to $50,000 or as approved by City Council | City Manager or Designee |
Exceeding budget amount or exceeding original contract amount including contingency | City Council |
* | The contract approval requests are required to include contingency amounts. |
A.
Approval Authority
Amount | Approval Authority | Process |
|---|---|---|
$0 to $75,000, per year (not contract) | Department Director/City Manager or Designee | Direct Negotiation; Contract or Purchase Order |
B.
Process
1.
Without regard to competitive bidding, the City may contract with a chamber of commerce; a service organization; a community, youth, or athletic association; or other similar association located and providing service in the immediate neighborhood.
2.
The City may also use volunteers (to whom no wage or salary compensation is paid in the project) and provide the volunteers with clothing or tools; meals or refreshments; accident/injury insurance coverage; and reimbursement of their expenses.
3.
The services received by the City shall have a value at least equal to two times that of the payment to the service organization based upon the value of the improvements, artworks, equipment, maintenance, etc.
C.
Types of Services
Types of services allowed:
• | Plan design | |
• | Improvements to parks, school playgrounds, public square, or other public spaces | |
• | Installation of equipment or artwork | |
• | Maintenance services for | |
o | The above improvements/installations, or | |
o | Neighborhood/community project facilities, or | |
o | Environmental justice stewardship or sustainability projects | |
All invoices may be approved by the City Manager, Department Director, or designee. Invoices for contracted work may be approved by the Project/Program Manager responsible for managing the contract.
Those professional services rendered by any person, other than as an employee of the City, within the scope of the general definition of professional practice in Chapters 18.08, 18.43, or 18.96 RCW. These general definitions include, but are not limited to, the practice of architecture, engineering, landscape architecture, and land surveying.
Whenever formal written quotes/bids or telephone quotes are not required, competitive relationships with vendors/suppliers/contractors will be shopped or negotiated to assure competitiveness and reasonableness in achieving low cost, good quality and service.
Person(s) authorized to spend funds up to amounts as budgeted on behalf of the City.
Per RCW 35.23.352, a competitive bid process[1] is to mean a formal bid process (RCW 35.23.352(1)) or the Small Works roster process (RCW 35.23.352(4). Direct negotiation is not considered a competitive bid.
Contractors, vendors, or consultants may be selected under procedures consistent with RCW 39.04.152 (see bidding requirements above) without soliciting bids/quotes from other firms/companies. Contractors, vendors, and consultants must be selected from the Small Works roster.
Unforeseen circumstances beyond the control of the City that either i) presents a real, immediate threat to the proper performance of essential functions; or ii) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken (RCW 39.34.280(3)).
For Public Works notice to bidders is advertised and sealed bids are required. Usually, the bid document is very detailed and specific. For Architectural/Engineering and other professional services, and RFQ/RFP process is required.
A civil jurisdiction that has a civilian average annual unemployment rate during the previous two calendar years of 20% or more above the average annual civilian unemployment rate for all states (including Puerto Rico) during the same 24-month reference period. If the national annual average unemployment rate during the referenced period is less than 6.0% then the qualifying rate is 6.0%. If the national annual average unemployment rate during the referenced period is above 10% then the qualifying rate is 10%. See U.S. Department of Labor for a list of Labor Service Areas.
Non-A&E Professional Services (Personal Services) involve technical expertise provided by a consultant to accomplish a specific study, project, task, or other work. These activities and products are mostly intellectual in nature, and they do not include architecture and engineering services, which have their own requirements. Examples of non-A&E professional services included in this category are: Accountants, artists, attorneys, bond brokers, computer programmers/consultants, insurance brokers, economists, financial analysts, planners, real estate appraisers, and codifiers of municipal ordinances.
The purchase of materials, equipment, supplies, software, or services.
A response of a consultant that describes key personnel, technical approaches, experience of the consultant, and familiarity with the area, time schedules, work plan, cost, and other information relating to the specific service being sought.
RCW 39.04.010 defines “public work” as all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. The term “ordinary maintenance” is not defined by RCW 39.04.010, which is part of the “Public Works” Chapter of the RCW. Ordinary maintenance” is defined by WAC 296-127-010, which defines “public work” for purposes of Chapter 39.12 RCW, relating to prevailing wages on public works. Chapter 39.12 RCW provides insight into the definition of “public work” in RCW 39.04.010, because RCW 39.04.010 states that all public works, including maintenance when performed by contract, shall comply with Chapter 39.12 RCW. WAC 296-127-010(7)(a) defines “public work” as all work, construction, alteration, enlargement, improvement, repair, and/or demolition that is executed by contract, purchase order, or any other legal agreement and that is executed at the cost of the City. This regulation also states that a public work includes maintenance, except “ordinary maintenance.” This regulation defines “ordinary maintenance” as work not performed by contract and that is performed on a regularly scheduled basis (e.g., daily, weekly, monthly, seasonally, semiannually, but not less frequently than once per year), to service, check, or replace items that are not broken, as well as work not performed by contract that is not regularly scheduled but is required to maintain the asset so that repair does not become necessary. Thus, all maintenance work performed by contract and all regularly schedule work that is required to maintain an asset but that is not performed pursuant to a contract is a “public work,” which must comply with these Purchasing Policies as they relate to public works.
A bidder on a public works contract who meets the responsibility criteria of RCW 39.04.350 prior to award of a public works contract.
A process through which written or electronic bids are solicited from contractors on an agency’s small works roster or through a competitive sealed bid process for public works contracts in which price is the primary basis for consideration and contract award. See Chapter VI(F) for more information.
A solicitation sent to known vendors or consultants which indicates in a general manner the work or type of service which the city desires to contract. RFPs generally solicit qualifications, approach, price, and ideas from experienced and knowledgeable vendors and consultants. See Chapter VI(F) for more information.
A method of soliciting competitive proposals that considers and evaluates companies based on a basis of demonstrated competency and qualification rather than price. This process is typically used for A&E services where price is not a consideration. An RFQ will generally result in a negotiated contract.
A system of rosters established by a government agency as a means of soliciting and notifying businesses and contractors about opportunities to respond to bids and proposals. The City currently uses the public roster established by the Municipal Research Services Center (MSRC).
A signal craft involves work that requires only one craft or trade and a multi-craft involves work that requires more than one craft or trade. Individual crafts (trades) are identified on the Washington State Department of Labor and Industries list of Prevailing Wages.
Small business means a business meeting certification criteria for size, ownership, control, and personal net worth adopted by the office of minority and women’s business enterprises in accordance with RCW 39.19.030.
A process for awarding contracts for public works estimated to cost $350,000 or less, in lieu of competitive bidding, pursuant to RCW 39.04.152 (applied to the City through RCW 35A.40.210, 35.23.352 and RCW 39.04.152). This process involves creation of small works roster for specialties or categories of work, placement of responsible contractors on the roster list, issuance of invitations for quotes to contractors on the list, securing of quotes from contractors on the list to assure establishment of a competitive price is established, and award of contracts to the lowest Responsible Bidder. See Chapter IV(D) for more information on the process.
A response to a Request for Qualifications (RFQ) wherein the prospective consultant provides information relating to the consultant’s qualifications to perform the type(s) of work and services being sought, and may include brochures, resumes of key personnel, descriptions of work completed in other places, references, etc. Price may not be used as an evaluation criterion in requesting Statements of Qualifications in response to an RFQ for architectural, engineering, landscape architectural, and land surveying services.
Vendor (Purchased) services are those provided by vendors for routine, necessary, and continuing functions of a local government agency, mostly relating to physical activities. These services are usually repetitive, routine, or mechanical in nature, support the agency’s day-to-day operations, involve the completion of specific tasks or projects, and involve minimal decision-making. Examples of such services include but are not limited to: Delivery/courier service, garbage pickup, vehicle inspection and maintenance, vactor services[2].
[1]
Editor's Note: Appendix A, Competitive Bids for Public Works is included as an attachment to this title.
[2]
Editor's Note: Appendix A, Competitive Bids for Public Works is included as an attachment to this title.
Editor's Note: Appendix B, Right of Way Acquisition Procedures is included as an attachment to this title.