HomeMy WebLinkAboutResolution No. 20-7979 - Adopting the City of Downey Purchasing Policy & Procedures1 0 9 0
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WHEREAS, Downey City Charter Section 1206 establishes a centralized
purchasing system for all City departments and agencies, and authorizes the City
Manager to recommend to the City the adoption of ordinances, rules and regulations
governing the contracting for, purchasing, storing and distribution of all supplies,
materials and equipment required by any office, department or agency of the City
government; and
WHEREAS, Downey Municipal Code Article 11, Chapter 9 sets forth the rules and
procedures for the purchases of supplies, services and equipment as well as public works
projects; and
WHEREAS, the Purchasing Policy & Procedures are developed as a complement to
Downey Municipal Code Article 11, Chapter 9 and to provide detailed procedures for purchasing
supplies, services and equipment, including procedures for public works project procurements;
and
WHEREAS, the City Council now desires to adopt the City of Downey Purchasing Policy
& Procedures.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Council hereby adopts the City of Downey Purchasing Policy
& Procedures attached hereto as Exhibit "A".
SECTION 2. That the Purchasing Policy & Procedures shall govern the City's
A,urchasing functions consistent with Downey Municipal Code Article 11, Chapter 9 ("Purchasing
Procedure").
SECTION 3. That the City Manager is hereby authorized to amend and interpret the
Purchasing Policy & Procedures consistent with Downey Municipal Code Article 11, Chapter 9
("Purchasing Procedure").
SECTION 4. The City Manager shall interpret all existing administrative regulations to
ensure consistency with the Purchasing Policy & Procedures in Exhibit "A".
SECTION 5. This Resolution shall take effect on the effective date of the amendment
to Article 11, Chapter 9 ("Purchasing Procedure").
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I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a Regular meeting held on the 24 th day of November, 2020 by the
following vote, to wit:
AYES:
Council Members-
Ashton, Rodriguez, Saab, Frometa, Mayor Pachecv
NOES:
Council Member:
None.
ABSENT:
Council Member:
None.
ABSTAIW
Council Member:
None.
M�AALICIA CAA IVIC
City Clerk
VW*k 1 0
Follpy & Procedures
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Contents
Cha•—Overview
•
• i • a
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. i - •:.. � • !• - • • .: - • : i is ; • ' : • . .. .... •: i ' : . t.
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• • • • • • i • • • f
' is • • ' • • • '. I• ' • • �' ' • .
Purchase Value Thresholds
trained persons or firms who provide services in connection with financial, economic,
accounting, engineering, environmental, administrative, specialized expertise, unique
skills, advisory, consulting, architectural, land survey or any services which involves
the exercise of professional discretion or independent judgments based on advanced
Professional or consultant services are those activities to be performed by specially
or specialized knowledge, expertise or training gained by formal studies or expertise.
13
Informal Process ................ ....................,.. , ..9 13
Formal Process ........... ..........v,............................. .
13
Request for Qualifications (RFQ) Process 14
Request for Proposal (RFP) Process ...................................... .......... ....... ,..........,...e.1
Chapter 5 — Public Works Projects ..................................... ..,.. 19
Dollar Thresholds — Construction Projects .......................... ........................... ....,.....,,1`9
Dollar Thresholds — Solely Maintenance/ Repair Projects.Ag
This Chapter applies to the purchase method which applies to public works projects
and maintenance/repair projects................................................................................19
Informal Bidding Procedures:.......P............... .........a........
Formal Bidding Procedures:.. ... __ ....... ...................... ... ..
Contract Change Order........ , 26
Appeals ............................. 29
Emergency Contract Procedures. ........... .....d.........o,................ 30
PublicUtilities.............................................................................................................30
Chapter 6— Special Circumstances...............................................................................31
Sole Source, Proprietary or Standardization Purchases ............................................ 31
Cooperative, Piggyback, and Multiple Awarded Bid Purchasing with Other Agencies
.. .......... .....,...,.............,_....,,....
Emergency Purchases — Other than for Public Works Projects...........- .x:............... 33
Chapter 7 — Disposition of Surplus Property.. ... 34
Overview................................................... 34
Under $5,000........... ..........W.. ............,..
$5,000 and Over ....................,.............................................. ... 35
Methods of Disposition ...................a........., ...,....
APPENDIX A ....................... 38
FEDERAL REQUIREMENTS ..............................................w........, ..............._:.......38
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A. Purpose: The purpose of these policies and procedures is to provide the City of
Downey a means of assuring continuity and uniformity in its purchasing
practices, provide departments with guidelines to assist them so that they are
operating purchasing practices within legal regulations, and to define
responsibilities of the PLtrchasing Division and operating departments.
B. Policy Statement: The policies contained herein are promulgated under the
authority of Article 11, Chapter 9 ("Purchasing Procedure") of the Downey
Municipal Code.
1. The Finance Department's Purchasing Division is charged with the
responsibility and authority for coordinating and managing the procurement of
the City's supplies, services, equipment, professional services, and special
equipment/supplies. Additionally, the Finance Director will provide assistance
as requested for public works and maintenance/repair projects.
2. Policies outlined herein are to be adhered to by the Purchasing Division and
operating departments when procuring supplies, professional services,
management services, general services, equipment, special
equipment/supplies, and construction.
4. The purchase of supplies, general services, equipment, and special
equipment/supplies as part of a "public works" construction project or public
works maintenance/repair projects are subject to Downey City Charter secti
1211 and are outlined in Chapter 4 of these policies and procedures. 11
A. Overview: The City is extremely sensitive to what constitutes unethical
purchasing behavior and what, while legal, constitutes the appearance of
unethical behavior. Administrative Regulation 434 or as amended prohibits ci
staff from accepting gifts from any individual or organization when the
relationship between the organization or individual and the city employee ste
from the employee's role as city employee. I
The employee or any member of the employee's immediate family' has a
financial interest in the purchase :•, service.
2. A business or organization, in which the employee or any member of the
employee's immediate family has a financial interest, is involved in the
purchase or service.
3. Any other person, business or organization, with whom the employee or any
member of the employee's immediate family is negotiating or has an
arrangement concerning prospective employment, is involved in the purchase
• service.
1. Employee Disclosure Requirements: Under the regulations established •
the • Reform Act, the City Council has adopted by resolution a local
• •i interest code which identifies •- City positions required to
disclose financial interests.
2. Kickbacks: Kickbacks are "financial payments for receiving a contract."
Kickbacks are illegal and violate these policies and procedures.
3. Use of Confidential Information: Purchasing Clerk and other employees
involved in the purchasing process are frequently made privy to confidential
information 2 in the course of their d6ties, and the prohibition against the
misuse • confidential information is just as fundamental to ethical purchasing
as it is to any other sphere of government. Employees and former employees
should • knowingly use confidential information for actual • anticipated
personal •. •; for the gain • any other person.
I Immediate family means spouse or registered domestic partner and dependent children.
2 Confidential information means any nonpublic information pertaining to a company's business which is
excluded from public disclosure pursuant to the California Public Records Act.
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A. The Purchasing Division is responsible for the procurement of supplies, general
services, equipment, and special equipment (which are not included within a
construction contract); administering purchasing policies and procedures; and f
the management of surplus City equipment and supplies pursuant to the Down
Municipal Code and any applicable Administrative Regulation or as amended.
To perform these functions efficiently and assist operating departments, the
Purchasing Division shall:
1. Recommend the execution of contracts for the purchase of supplies, general
services, special equipment, and services.
2. Keep informed of the current developments concerning purchasing, prices,
market conditions and new products and recommend revisions to purchasing
procedures when necessary.
3. Prescribe and maintain all forms and records necessary for the efficient
operation of the purchasing system.
4. Supervise and coordinate the process with operating departments for the
inspection of all supplies, general services, special equipment, and services
purchased •- City's Purchasing Ordinance, to assure conformance with
City specifications.
5. •- the transfer •` surplus and unused supplies and equipment •
sale/disposal • such.
6. Maintain an up-to-date bidder list, vendors' catalogs, files and such other
records as needed to perform these duties. Coordinate vendor relations,
locate • of supply, maintain vendor • and evaluate and ••
vendor performance.
7. Assist operating departments with research and recommendations in
developing specifications; review specifications for completeness •;
information, and ensure that purchasing specifications are open and non-
restrictive to encourage full competition.
8. When in the best interest of the City, maintain or coordinate the maintenance
with operating •-• • a supply (Central Stores/Warehouse) •
commonly used items in quantities sufficient to satisfy the City's needs.
9. Identify, evaluate, and utilize purchasing agreements that best meet the City's
needs (i.e., cooperative purchases, blanket purchase orders, contractual
•
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10. Perform such •:' tasks as may •- necessary for the proper conduct •'
purchasing supplies, general services, and equipment.
B. The Finance Director may appoint a Finance Department employee •:
consultant to serve as the Purchasing Clerk. The Purchasing Clerk will have the
responsibility in administering certain aspects • purchasing. • • •
•- may include the following:
1. Purchase or contract for supplies, services, and equipment required by any
department in accordance with purchasing procedures prescribed by the
Downey •. •1- these •r and procedures, and any such
`• Regulations.
2. Negotiate and recommend execution of contracts for the purchase of
supplies, services, and equipment.
3. Act to procure for the City the needed quality in supplies, services, and
equipment at the least expense to the City.
4. Maintain, when feasible, full and open competition among bidders on all
•
5. Keep informed of current developments in the field of purchasing, including
prices, market conditions, and new products
6. Prescribe and maintain such forms as reasonably necessary to the operatior
• this chapter and other rules and regulations
7. Supervise the inspection of all supplies, services, and equipment purchased
to insure conformance with specifications
8. Recommend the transfer of surplus or unused supplies, services, and
equipment between departments as needed • the sale of all supplies and
equipment which cannot be used by any agency or which have become
unsuitable for City use.
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-iesponsibilities of Operating Departments
A. Operating departments are charged with the following responsibilities in the
purchasing process:
1. Provide at the beginning of each fiscal year, an updated authorized signature
list to the Finance Director designating those individuals who are delegated
the authority to make purchases pursuant to the policies and procedures as
described herein. The authorized signature shall be approved by the City
Manager or City Manager's designee.
Departments may contract for specified and limited supplies, equipment,
special equipment/supplies, and services independently of the Purchasing
Clerk as permitted by these policies in accordance with the dollar thresholds
established for each type of purchase (listed in the respective chapter of each
type of purchase). Departments must keep a record of such purchases and
exercise reasonable prudence in seeking price quotes when purchasing such
items. All such purchases shall be made with funds in an unencumbered
appropriation.
3. Communicate and coordinate all purchases equal to or greater than $3,000
with the Purchasing Division.
4. Anticipate requirements sufficiently in advance to allow the Purchasing
Division adequate time to obtain goods in accordance with the best
purchasing practices.
5. Ensure that there exists an unencumbered appropriation in the fund accounts
against which any purchase is to be charged.
6. Inspect all supplies, general services, special equipment, and services
purchased to assure conformance with City specifications.
7. Provide detailed, accurate specifications to ensure goods obtained are
consistent with requirements and expectations.
8. Submit to the Purchasing Clerk a requisition on the Purchasing Clerk's
approved form prior to initiating any procurement. Prepare requisition in
accordance with instructions to minimize the processing effort.
9. Inform the Purchasing Clerk of any vendor relations problems, shipping
problems (i.e., damaged goods, late delivery, wrong items delivered, incorrect
quantity delivered, etc.) and any situations which should be brought to the
attention of the Purchasing Division.
9
10. Minimize urgent and sole source purchases and provide written justification
and documentation signed by the Department Head when such purchases
may be necessary.
11. Follow the bidding limits and guidelines as established by the Municipal Code
and these policies and procedures.
12.Assist Purchasing Clerk with the review of all bids received for compliance
with specifications, and provide Purchasing Clerk with written documentation
regarding findings. After purchasing review, prepare a recommendation to
City Council for award of the bid.
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The Purchasing Clerk may authorize any operating department to purchase or
contract for specified supplies, services and equipment independently of the
Purchasing Clerk, provided that such purchases or contracts shall be made in
conformity with these policies and procedures. Such authorization by the
Purchasing Clerk may be either in writing or verbally, except that any
2uthorization in excess of the informal purchase limits shall be in writing.
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A. It is to the City's advantage to maintain and promote good relations with suppliers
of goods and services. Purchasing and operating department staff shall conduct
their dealings with vendors in a professional manner and shall promote equal
opportunity and demonstrate fairness, integrity, and courtesy in all vendor
relations.
B. The Purchasing Division maintains a list of registered vendors for purchases of
goods and services. A list of registered vendors can be obtained by commodity
and sub -commodity code from the Purchasing Division. If a City employee is
contacted by a potential vendor, please refer vendor to the City's website.
Purchasing page for registration instructions or have vendor contact the
Purchasing Division so the vendor can be registered if qualified.
C. Operating departments may make direct contact with vendors and service
providers for such purposes as obtaining price quotes, developing service
contracts, utilizing Request for Qualifications (RFQ) / Request for Proposal
(RFP), obtaining technical information, obtaining cost estimates for budgeting or
purchasing purposes, for preparing purchase requisitions and for placing orders
for authorized purchases. The Purchasing Clerk will be the main contact during
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the bidding process. The Purchasing Clerk will normally serve as an intermediary
between operating departments and vendors when requested by the operating
department and in conflict resolution situations.
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Contracts shall be prepared for professional, management, general or special
services. All City contracts shall be prepared on the City contract template
unless approved by City Attorney. Contracts and amendments shall be prepared
and submitted to the City Clerk's Office for final processing once fully executed.
Pursuant to Downey City Charter Section 518, no contract or lease or an
extension thereof for a period exceeding 10 years shall be valid unless approved
by ordinance.
Grant expenditures (also special revenues like gas tax, prop A, prop
etc.), may be subject to different and stricter rules. Thus, grant
documents must be reviewed by the Department Director prior to
preparing a purchase requisition. I
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The City has a Debarment Ordinance which applies to purchase of good(s) or service(s)
funded in whole or in part by local funds. The purpose of Debarment Policy is to
exclude purchases of goods(s) or service(s) from a vendor who has been placed on the
City's Debarment list. Additional details can be found in the City's Debarment
Ordinance. State andi'Or Federal Debarment requirements will apply to purchases off
goods or services funded by Federal and/or State funds
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Purchase Order
The processing departments shall initiate requests for requisition of goods. Purchase of
supplies, general services, nonprofessional services, equipment, vehicles, and
construction contract or public work projects of $3,000 and -more shall be initiated using
purchase requisition form submitted to the Finance Department Purchasing Division
There must be an unencumbered appropriation in the fund accounts against which any
z�xpenditure for the requested purchases to be charged. Appropriate documentation,
�emonstration of selection process, appropriate approval, scope of work, and contracts
(including contract amendments, and task orders) are required to be attached to the
reqtion.
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D. Purchase of Books
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1. Processing departments shall verify the existence of an unencumbered
appropriation prior to initiating the purchasing process and again prior to
submitting purchase requisitions to the Purchasing Division.
2. The Purchasing Clerk shall not issue any purchase order, authorize the
execution of any contract, or enter into any contract for purchasing of supplies,
equipment, services or construction, unless there exists an unencumbered
appropriation in the fund account against which such purchase is to be charged.
Purchase Order Changes
A purchase order is a contract between the City and a vendor. Any substantial change
to a purchase order and/or its contract for services shall be documented on a change
order (new requisition) initiated by the operating department. Change orders shall be
reviewed by the Purchasing Division and shall be approved by the Purchasing Clerk.
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Chapter 3 — Non -Professional Services, Supplies and Equipment
Purchase Value Thresholds
Value of
Purchase
PO
Level of
. . . ........ ....
Agreement
Purchase
Method
Required
Approval
Format
Under $3,000
Small Dollar
No
Department
None
Director
_$_3,000 -
-(Informal Written
Yes
Finance
Purchase Order
$15,000
Quotes
$15,001-
Formal
Yes
City Manager
City Manager
$30,000
Written Quotes
or
approved contract
City Manager
Desi nee
Over $30,001
Formal Bid
Yes
City Council
City Council
. . . ..... ..... .... .... .
approved contract
This chapter only applies to the purchase of non-professional services, supplies and
equipment. This chapter ••- not .••: to professional services and public works
projects or maintenance/repair projects which are covered in Chapter 4.
Purchase Value • $3,000 (Small Dollar)
This is the • • non-professional services, supplies •; equipment when
the aggregate • is under $3,000 purchase threshold. The City uses this
purchase method in order to expedite the completion of its small dollar purchase
transactions and minimize the associated administrative burden and cost. It is
encouraged, but not required, to secure quotes from more than one vendor.
Efforts should be made so that these types of purchases are from vendors
located in the City of Downey.
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relevant information) must be prepared, attached to the purchase requisition, and
submitted to the Finance Department.
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A. To initiate the bid process, operating department staff shall provide specifications
for the item to be purchased, and documentation showing the existence of an
unencumbered appropriation for the item in the current approved budget. The
Purchasing Division shall solicit formal bids as prescribed by the City's
Purchasing Ordinance. The Purchasing Division will coordinate with the City
Clerk in setting a bid opening date and publication of the bid in the local
newspaper. Publication deadlines are available at the City Clerk's Office.
B. Notices inviting formal bids shall be distributed electronically by email to
prospective bidders, posted on the Purchasing Division bidding website, and
shall be published at least twice in a newspaper of general circulation printed anii
published in the City, and in appropriate trade publications at least fourteen (14)
days before the date of the opening of the bids.
C. Notices inviting bids shall include a general description of the goods, articles,
services, or equipment to be purchased, bonding requirements, state where bid
plans and specifications may be secured and the time and place for opening the
bids.
D. The City may or if applicable require bidders' security equal to ten (10%) of the
bid amount and/or a performance bond in such amount as it shall find reasonably
necessary to protect the public interest. If the City requires either or both such
security and bond, the form and amount of the security and bond shall be
described in the notice inviting bids.
E. Sealed bids shall be submitted to the City Clerk and shall be clearly identified a
the bidder, bid item, and "bid" on the envelope. Bids shall be opened by the Cit
Clerk, with a representative of the department that developed the bid or propos
document present, in public at the date, time, and place stated in the notice
inviting bids. A written record and tabulation shall be made at the time all bids
are received and the tabulation shall be available for public inspection during
regular business hours for a period of not less than thirty (30) calendar days aft
the bid opening. I
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F. A representative of the requesting department shall review all bids received for
compliance with specifications. All deviations from the specifications shall be
fully documented • the requesting department, and the impact • the deviations
on the performance or suitability of the bid item evaluated and detailed. The
requesting department shall review its findings with the Purchasing Division staff.
G. The City Council may reject all bids or award the purchase contract to the lowe
responsive and responsible bidder whose bid fulfills the intended purpose
according to criteria designated in the solicitation, provided that an
unencumbered appropriation exists for the purchase. The City Council may
waive any minor bid irregularities. If bids are rejected, the City Council may
authorize Purchasing staff to negotiate a contract for the purchase, initiate a
rebid, or abandon the purchase. I
H. Quality and service being equal, a local preference of ten percent (10%) shall be
given to • vendors within the City •: • This ten percent (10%) shall •::`.
given as a credit in their bid. The ten percent (10%) preference is not applicable
to public works projects and construction or purchases funded by grant or special
revenue •
1. Rejection of Bids: The Purchasing Division and/or Operating Department may
recommend rejection of any or all bids if it is determined to be in the best interest
• the City.
J. Tie Bids: If two or more bids are received for the same total amount or unit
prices, quality and service being equal, and if the public interest will not permit
the delay • re -advertising the bids, the City • may accept either bid.
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Purchase Value Thresholds
Value of
Purchase
PO Required
Levelof
Agreement
Purchase
Method
Approval
Format
$10, 000 and
Informal
Yes
City
Small Dollar
Under
Process
(Unless Under
Manager
PSA
_$31,0001
Over $10,000
Formal Process
Yes
City Council
City Council
approved PSA
Informal Process
Each Department may maintain a current list of qualified professional consultants
in various categories. When selecting a consultant to provide services on a
specific project, the Department Director should consider consultants on a
rotational basis wherever feasible in addition to capability and quacations.
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that have recently completed similar activities, and other methods to develop a
list of qualified consultants. The Department Director, or his/her designee shall
contact two or more qualified professional consultants to ensure qualifications,
person(s) that will be assigned to the project, price, and other factors relevant to
the selection process. Once the Department Director selects the consultant,
he/she presents the proposed selection to the City Manager or City Manager's
designee for approval.
Formal Process
in a non -urgent situation, the Department shall utilize a sealed Request for
Proposal (RFP) process. A Request for Qualifications (RFQ) process may be
used prior to a RFP process. The Department Director will submit a written
recommendation of award of contract to the City Council after completion of the
RFQ and/or RFP process.
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for architectural, landscape architectural, engineering, environmental services,
land surveying, and construction project management services based on
demonstrated competence and professional qualifications, rather than
competitive bidding, and at fair and reasonable prices.
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A. The Department shall use the following RFQ process to develop a list of qualified
consultants/firms for a type or category of professional services. Consultants are
evaluated based upon the following criteria:
1. Mandatory Elements: The firm is properly licensed to practice in California,
has no conflict of interest, adheres to the proposal instructions and includes a
Letter of Transmittal.
2. Expertise and Experience: Expertise, experience and past performance on
comparable engagements, quality of personnel and support, references,
understanding of work to be done and firm's statement regarding
quacations.
4. Qualitative Evaluation: Appropriateness of qualifications and proposed lev'I
of services to the requirements of the City, expertise and experience in the
type or category of professional services outlined in the RFQ, background
and experience of key personnel, and other factors outlined in the RFQ.
B. The Department shall rank the firms as qualified or not qualified for a particular
type or category of professional services. This list will be maintained for a
maximum of three years from the date the list was approved, unless an extension
is granted by City Council and there is no grant or special revenue funding
associated with the activity or project that would result in the professional
service's fee to be an ineligible cost. This list can be terminated earlier upon
14
• the City Manager.
C. Notice of RFQ will be posted on the City's website 21 calendar days prior to the
date of submittal and distributed to consultants on the City's list. The Department
may also distribute the Notice of RFQ to additional profess iona I/con su Itants/fi rms
if they • • •- who are not • the City's list. Departments can also
encourage • to download the full RFQ document from the
website as this will ensure that the consultants/firms are distributed any addenda
or other notifications related to the RFQ.
1. The City Clerk's Office will receive all Statement • Qualifications (SOQ) and will
create a listing of all those received. Any SOQs received after the date and time
stated on the notice will be returned unopened.
E. The initiating Department Director shall propose a selection committee consisting
of at least three members, one of which cannot •` a member • the initiating
department. On a case -by -case basis, the Finance Director may waive the
requirement of one member of the selection committee not being a member of
the initiating Department. Any individual or firm that has an interest in one or
more of the firms submitting a SOQ cannot be part of the selection process or on
the • •
F. The Department Director shall establish evaluation criteria in advance of
receiving the SOQs. Each committee member will evaluate and rank the SOQs
based on the established criteria.
The Department Director will receive results of the committee's final evaluation
and recommendation and prepare a list of qualified firms for each category of
services. The list shall be approved by the City Council prior to its use.
H. Selecting a professional/consultant services firm based on the results of the RF1
process:
I . The Department Director will cause a Request for Project Proposal (RPP) to
be issued to firms on the qualification list of the category for which the
services are requested. The firms shall be provided at least 21 calendar days
in which to ••:• to the "■
2. The RPP will • the names and qualifications ofthe person's) to •
assigned to the project, their understanding • the project, available start date
(or confirm that they are available to start the project on the date indicated by
the City), the dollar cost (which may be itemized by category, if appropriate),
the deadline for submitting a response to the RPP, and that the response to
the RPP shall be submitted to the initiating Department's Director.
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3. A departmental selection committee will review the responses to the RPP and
select the firm •. •_ recommended • approval by the City Council.
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A. The City shall use the following RFP process to determine the best qualified
Consultants for the requested professional services as follows:
1 . Notice of RFP will be posted on the City's website 21 calendar days prior
to the date of submittal and distributed to consultants on the City's list and those
professional/consultants/firms if they appear to be qualified and are not on the
City's list. The Department can also encourage consultants/firms to download
the full RFP document from the website as this will ensure that the
RFP. The RFP will contain a provision requiring the proposer to include fee
proposal in a separate sealed envelope.
2. The City Clerk's Office will receive all proposals (responses to the ■
and will create a listing of all those received. Any proposals received after the
date and time stated on the notice will be returned unopened.
3. The initiating Department Director shall propose a selection co m ttee
consisting of at least three members, one of which cannot be a • of t
initiating Department. Any individual or firm that has a financial interest in o
or more of the firms submitting a proposal cannot be part of the selection
process or on the evaluation committee. The proposed selection committee
will be approved by the City Manager or designee.
B. Consultants/Firms are evaluated based upon the criteria below, which should be
included in the RFP:
.ncludes a Letter • Transmittal.
2. Expertise and Experience: Expertise, experience and past performance
on comparable engagements, quality of personnel and support, references,
understanding of work to be done and firm's statement regarding
qualifications.
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Each evaluation committee member will evaluate and rank the proposals
using the established criteria. The evaluation committee will review all of the
proposals (responses to the RFP) and rank the consultants/firms. The top
firms (at least three) will become the "short list". The Department may
conduct reference checks. The Department Director will receive results of
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of the formats.
b. During the interview process the evaluation committee will individually
rank the professionals/consultants/firms. At the conclusion of all the
interviews, the evaluation committee members will discuss their opinions of
the consultants, the Department representative will share the results of
reference checks and through negotiation, the evaluation committee will rank
the candidates and come to a consensus of the top candidate.
D. Once firms are ranked based upon quality staff opens the cost proposal envelope
and determines if the highest ranking firm's cost proposal is reasonable prior to
making a recommendation for selection. If the cost proposal is found to be
unreasonable, staff can negotiate with the highest ranking firm. If the desired
outcome is not achieved, then staff should move to the second highest ranking
firm. This process can continue until a firm is selected, or the Department
Director, in consultation with the Finance Director, rejects all proposals and either
cancels the project or revises the RFP in such a manner that will likely result in
the receipt of acceptable proposals for the project. Determining a reasonable
cost is based upon comparison of proposals, project budget, prior experience,
comparative project costs in neighboring cities and professional judgment.
1 . Once the top candidate has been determined to be the most qualified, t
project scope of work and price can be further negotiated. If the selected consultant'
L,
pricing exceeds the budget or what the City has determined to be a reasonable price
for the job, the City may end negotiations with the first consultant and begin
negotiations with the next most qualified consultant, and so forth. I
M
2. Contracts less than $10,000 are signed by the City Manager. The
contract is developed using the City's standard Professional Services Agreement
(PSA), forwarded to the City Attorney's Office, and reviewed and approved as to for
by the City Attorney and signed by the City Manager and the vendor. No services
shall be provided until the City receives the vendor's signed Contract and certificate
insurance. The Department will retain the signed original contract and will attach a
copy of the signed contract to a purchase requisition. I
3. Contracts in an amount exceeding $10,000 require the approval of the
City Council. Prior to taking the contract to City Council, the contract should be
negotiated with the contractor, using the City's standard PSA, forwarded to the City
Attorney's Office, and reviewed and approved as to form by the City Attorney and
signed by both the City and the vendor. No services shall be provided until the City
receives the vendor's signed Contract and certificate of insurance. Once approved by
City Council and vendor, the Contract will be given an official contract number by the
City Clerk and the original maintained by the City Clerk's Office.
Departments may utilize "on -call" consultants to assist in the workload resulting from
large projects or public works projects. These "on -call" consultants must be selected
either an RFQ or RFP process. Consultants may not be associated with any
engineering or consulting firm and shall work as sole proprietors and independent
consultants. All "on -call" consultant agreements must be approved by the City Counc
prior to the signing of any contractual agreement. It is permissible for the City Counci
approval to be for an amount that includes more than one project, with the projects
starting at various dates throughout the year. I
W:
PUBLIC t PROJECTS:
Dollar Thresholds
Purchase PO
Level
Agreement
Value of Purchase
Method RequiredFormat
pprov
l
Under amount set by resolution
Informal Bid Yes
-
City
City Manager
per City Charter 1211
(Unless
Manag
approved
Under
er
contract
3,000
Over amount set by resolution
Formal Bid Yes
City
City Council
per City Charter 1211
Council
approved
contract
SOLELY MAI T / I
Value of
Purchase
PO RequiredLevelof
Agreement
Purchase
Method
Approval
Format
Under $5,000
Written Price
No
Department
None
Quote
Head
Between 5000,-
Informal Bid
Yes
City Manager
City Manager
50,000
or
approved contract
Over $50,000
Formal Bid
Yes
City Council
City Council
approved contract
This Chapter applies to the purchase method which applies to public works projects and
maintenance/repair
projects.
refinitions: The following terms are defined as setbelow:
Public Works Project:
•' • • • -I•_ i • • _ i' • • ;• -•
W
or operated facility, etc. and paid in whole or in part with public funds as
Awagn��.
MAN
Every project involving an expenditure of more than the threshold identified in
the City Charter Section 1211 of Resolution(s) adopted by the City Council for
construction of improvements, excluding maintenance and repair work, and
each separate purchase of maintenance and supplies for the same, where
the expenditure required for such purchase shall exceed the sum of the
threshold identified in the City Charter Section 1211 of Resolution(s) adopted
by the City Council, shall be let to the lowest responsible bidder per
procedures defined hereinafter in this document.
,111111111,11 JIJ�1111 1111111 iiiiii ::: Jill �71` Bill 11 ll� III 11��! Mill 11 111 11 111 Jill 111�1111111111 111 11111111111
I =4W-AALL1IV-4J_k1LJ
Routine, recurring, and usual work for the preservation, protection and
keeping of any publicly owned or publicly operated facility for its intended
purposes in a safe and • usable condition for which it has •-
designed, improved, constructed, altered • repaired;
k• - 6 . • • - - - - •.:
• Resurfacing of streets and highways at less than one inch (1");
Landscape maintenance, including mowing, watering, trimming, pruning,
planting, replacement of plants, and servicing of irrigation and sprinkler
systems, except for work done by "sheltered workshops";
Work performed to keep, operate and maintain publicly owned water and
water disposal systems, including, but not limited to, drainage systems, dams,
reservoirs and water retention structures.
Payment of Prevailing wages on Public Works Projects:
Contracts for public works projects, as defined in California Labor Code Section 1720 et
seq., that are undertaken or contracted for directly by the City shall require compliance
with California Labor Code Sections 1770 through 1782, as may be amended, for
construction work over twenty-five thousand dollars ($25,000) and for alteration,
demolition, repair or maintenance work over fifteen thousand dollars ($15,000). Any
notice inviting bids for such public works projects shall include notification of the
provisions of this section. (Added by Ord. 1335, adopted 112514)
FXTUM
Any plant, building, structure, ground facility, utility system, real property,
streets and highways, or other public work improvement.
III
Public Works construction projects with a total value of less than $3,000 can
be processed by obtaining price quotes directly from vendors. At least three
(3) quotes from unrelated vendors shall be obtained. If the quotes are
received in other than written form, then a "quote form" documenting the
quote containing the following information must be prepared and attached tit
the purchase •
• Name of person providing the quote
• List of items and quoted price for each ite
• Total quoted •
• Any other relevant information
�IipIIIIIIJII 1111111 IN III
City Council resolution shall be processed uzing an "informal bidding
procedure" described below. Public Works construction projects with a total
value for formal bidding as adopted by City Council resolution shall be
processed using the "formal bidding procedures" described below.
and attached to the purchase requisition:
• Rame • person providing the quote
• List of items and quoted price for each iterr
• Total quoted •
• Any other relevant information
MR.
processed using the "formal bidding procedures" described below.
a
A. The initiating Department will obtain written quotations from at least three
unrelated, licensed contractors or authorized vendors. Following receipt of
least three informal bids, the Public Works Director shall award the contract
the lowest responsive and responsible bidder offering the most advantageou
quote to the City. I
is solely for maintenance or repair shall be executed by City Manager or his
designee. . The City has the absolute right, in its sole discretion, to reject all
bids, re -advertise for bids or abandon the project. Additionally, the initiating
Department Director is authorized to re -advertise. The written quotes are to be
attached to the purchase requisition form submitted to the Finance Department.
C. A statement of project completion by the contractor and an acceptance by the
City shall accompany the final change order. Notice of Completions shall be filed
upon final acceptance of the project. For projects awarded under the informal
process, the Director of Public Works may accept a Conditional Waiver and
Release Upon Final Payment form along with Labor and Mate ria I/Equ ipment
Payment Warranty statement/form by contractor in lieu of filing a notice of
completion.
116 1=1 . 1:TtrtrrI "$� =*- I =,-
A public works project, which is valued above the threshold for formal bidding as
established by City Council Resolution pursuant to City Charter section 1211, or
exceeds the threshold above for a project which is solely maintenance/repair, shall
utilize the formal bidding procedures.
A. Authorize to Advertise/Solicit Bids: The City Council shall authorize staiv to
advertise/solicit bids. A staff report, at a minimum, must include the background
of the project, the funding sources for the project, the preliminary budget/cost
summary, and the tentative project schedule.
B. Approve Plans and Specifications: The City Council shall approve the plans
and specifications of the project on or before the City Council authorizes bid
solicitation.
MIMMU=
1. Prepare bid package using standardized forms. Coordinate bid opening date
with the City Clerk.
O*A
I
2. Bidders Security/ Bond, Performance Bonds, and Payment Bonds arz
required as described above.
1. Rotice Inviting Bids shall be published in newspaper of general circulation at
least twice 10 calendar days prior to bid opening date.
!1�1 I I III 1 111111111 III III IIII!!IJI 1�11111111 !II11
However, the City Council may reject any and all bids presented and may authorize re -
advertisement for formal bids.
If the total amount of the contract or project is equal to or less than the value authorized
per City Council resolution adopted in accordance with City Charter Section 1211, then
the City Council may declare and determine that in its opinion, the work in question may
be performed better or more economically by the City with its own employees, or that
the materials or supplies may be purchased at a lower price in the open market. After
adoption of a resolution this effect the City may proceed to have said work done or such
materials or supplies purchased in the manner stated.
I I � I TIMM I I 11111gil I p� I
Notice Invng Bids Content:
Notice Invng Bids shall include the following:
1. Bidder's security/bond, performance bond, and payment bond requirements,
including the amount required.
2. Time and place for receiving and opening of sealed bids and distinctly
describe the project. In addition to notice required by this section, the City
may give such other notice as it deems proper.
3. Requirements for compliance with all applicable local, state and Federal laws
including payment of prevailing wages.
4. Contractor's licensing requirements.
5. Include other provisions required by State, Federal and other granting
agencies. The awarding of sub -grants and contracts by the City stemming
from federal grants to the City must abide by special requirements
attached hereto as Appendix A.
lil�- I= 7
a]
Bidders should have 72 hours to receive and incorporate an addendum. All
potential bidders should be given at least 72 hours' notice of any addendum to a
bid. If the addendum is sent out within the last 72 hours of the scheduled bid
opening, Public Contracting Code section 4104.5 requires the City to extend the
bid opening by a minimum of 72 hours if a material change to the bid is made. A
material change is any change that substantially changes the cost of the bids in
the opinion of the City.
rQ19111TWOMM
a. Bidder's security shall be in one of the following forms: cash, cashier's
check, certified check, or bidders bond.
b. Bidder's security will be returned to unsuccessful bidders within 60 days of
the date of the award of bid.
c. Lowest responsive/responsible bidder shall forfeit all or part of its bid
security, as determined by City Council, upon the bidder's refusal or failure
to execute the contract within 10 days after the award date.
1. Sealed bids must be received by the City Clerk prior to the date and time
specified in the bid. Bids must be signed by an agent of the company
authorized to bind the company to the bid requirements.
2. City Clerk staff will time stamp all bids received.
3. Sealed bids shall be opened publicly by the City Clerk at the time and place
stated on the notice inviting bids.
4. City Clerk staff shall verify receipt of required bonds.
5. City Clerk staff shall verify acknowledgement of any addendum, if any.
6. A written tabulation of the bids shall be made at that time, and shall be oper
for public inspection for a period of two years after bid opening.
7. Project Manager shall make an analysis of the bids for compliance with bid
specifications and shall check the US General Services Administration
System for Award Management (WWw. sam govL[previously known as the
Excluded Parties List System] gELor to awarding federally funded contracts
and the State of California Department of Industrial Relations TLSE
Debarments" list for state funded projects
24
I US I AM Ila q a 17-A 01101 L7-710"A
V4601 16 M W111 Lei I IftTiq 014 V t-161 M; I i I* K6izAA4 I 110�r
• If MIN-2 • I I WNPHIMPIN I F6-16
2. A staff report must be completed describing the project, including cost of the
project, budget information, bidding process, and recommendation of award
• •
S. If no bids are received, the project may be re -advertised, modified and re -
advertised, or cancelled with the approval of the City Council.
• • .
1. In its discretion, the City Council may reject any bids presented. If after the
first invitation for bids all bids are rejected, the City shall state the reasons for
the rejection, and after reevaluating its cost estimates of the project, the City
shall have the i•i:• •: either • the following:
a. Abandoning the project or re -advertising for bids in the manner previously
described; or
b. If the project is less than the amount established by City Council
Resolution • to City Charter section 1211, the City • may
declare that in its opinion the work may be performed better or more
economically by the City with its own employees or that the materials or
supplies may be purchased at a lower price on the open market. By
passage of a resolution • the affirmative vote • a • vote of the
• membership • the City • finding and declaring that the project
can be performed more economically by City employees and/or that the
materials or supplies may be purchased at a lower price on the open
market., may have the project done by force account without further
complying with the formal bidding procedures.
W
1. Final acceptance reports for these public works projects must be submitted by
the Director of Public Works or City Engineer to City Council for acceptance
of capital improvement projects as complete. Notice of Completions shall be
filed upon final acceptance of the project.
1. Bid Security Bond:
The Bid Security Bond is also called the "Bid Bond"Security Bondand
10% Bond." No term is more correct than another, and any of these terms
may be used- The purpose of the Bid Security Bond is to compensate the
Agency for damages it might suffer if successful bidder refuses to execute t -
contract. The damages would be the difference between the
lowest/successful bid and the second lowest bid, which is the additional
amount the agency would pay to have the work completed, should the
successful bidder refuse to enter into the contract. The security may be in t -
form of bid bond, cash, cashier's check, or certified check, made payable to
the public agency. If the successful bidder does not execute the contract
within the time allowed, the contractor forfeits his bid bond to the agency. Bil
bonds returned to unsuccessful bidders are handled by the City Clerk.
Consult Public Contract Code sections 22030-22045.
2. Payment Bond:
The purpose of a payment bond is to protect sub -contractors and suppliers.
ensures that the surety backing the bond will pay the suppliers and
subcontractors if the general contractor does not. California Civil Code
section 9550 requires a payment bond be obtained from contractors for publ
1
works projects $25,000 or more, except architectural, engineering and land
surveying services. The bond requirements must be stated in the call for bi
and it must be in amounts set forth in the Civil Code Section 9554.
3. Performance Bond:
The purpose of a performance bond is to ensure completion of the project. A
performance bond is generally backed by a surety who guarantees the project
will be completed in accordance with the specifications. If the contractor
defaults, the surety may hire another contractor to complete the project.
Performance bonds are required for all contracts over $45,000.
Contract Change Order
A. Definition
A construction contract change order is an amendment which affects the scope
of work by changing, adding, amending, or deleting work, which may affect the
01.1
cost and time of completion of work. Some changes are initiated by the City and
some by the contractor. The change order may alter the contract price, unit
quantity change, completion date, or the plans and specifications. Since a
change order modifies the contract, it is important to clarify the material elements
of what is being changed. Work description and justification must relate to the
original project and must be necessary to achieve the original scope of the
project. A change order does not necessarily mean that the contract price is
increased.
1. Changes by the City: without invalidating the contract and without notice to
any surety, the City, may at any time order additions, deletions, or revisions in
the project or contract.
2. Changes proposed by the Contractor: The contractor may submit to the City,
in writing, proposals for modifying the plans, specifications, or other
requirements of the contract for the sole purpose of reducing the total cost of
the construction costs.
B. Policy
All change orders shall be issued in written form. A change order shall be usedl
to modify the contract documents regarding contract price, completion date,
plans and specifications, expanding scope of work due to change in conditions,
and for unit price overruns and •under runs, as specified in the contract. •Chang
orders shall be written and approved prior to the beginning of any additional wo
and shall be negotiated for a fixed amount, time and material or unit cost.
Note: Change orders will be done for unit quantity adjustments. Change orders are
done to document additional work and make the contract complete/final. The contract
amount shall reflect the full payment made to the vendor. Contract change orders for
unit quantity adjustments will not require City Council approval. No Change Orders
shall be approved outside of Change Order approval authority and approved project
funds unless additional funding has been approved by City Council.
1 11 1111111 11 111111111 L10111411[1� Tiikiliipiilii?�11:111 'I wi�;g I
1111111m, 1,11111 11 111 11 1 1: �!i 1 0 � I
HUMM=11 11 1 1: lII I E���
a. City Manager may approve project change orders up to the amount for
informal bids as set by Council resolution pursuant to City Charter
1211 or the informal amount established above for projects which are
solely maintenance/repair. Otherwise, City Council approval is
required.
�1111111111411111 11 1111111
M
I I I a I I lr� I I VU a Ram] I a I I Ttxa MI KI &U-1141 I I a I r� I I r-XG1 to L74y, I I I I
In urgent situations where cessation of work will result in severe repair
or replacement delays and subject the City to additional costs due to
the delay in the project, the City Manager may approve a change order
subject to ratification at the next City Council meeting.
I Im JT-Tr'AYf`T[3l19JMT-4=-
1. In an urgent situation and to prevent costly delays to the project, field work
directives may be approved by the Director of Public Works or his
designee, who must be a full-time City employee, up to $10,000 in the
field with ratification of the approval within two days by the signatory
authority stated above.
2. Possibility of work directives and change orders should be addressed and
a contingency established in the initial staff report awarding the contract.
At no time can work directives and change orders exceed the budgeted
amount without additional City Council approval.
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1. Establish a capital improvement project minimum contingency budget
policy of 10%.
2. All capital improvement projects must stay within budget and all budge,.1
adjustments must have City Council approval.
3. City Council may authorize a contingency for each contract as
appropriate. In the absence of a contingency, each change order will
need to be taken to City Council for approval.
1. Final Acceptance Reports:
92
Final acceptance reports for all capital improvement projects must be
-8�,FWCfti MwIIR�-11
complete. All acceptances by the Director of Public Works shall be
acknowledged in writing.
a) The term "completed" will mean after all work has been completed a
all payments made. I
b) Director of Public Works shall file periodic reports with the City Councii
cataloging accepted public projects and improvements.
Appeals
Any unsuccessful bidder of a public works project or a project that is solely
maintenance/repair under this Chapter 4 may file a protest regarding the
procurement decisions authorized under this chapter.
A. Notice of Decision
After a decision regarding procurement has been made, the Department Director
or designee shall notify all persons who submitted a response to a City
solicitation of intended award. If a bidder is rejected because the bid is found
non -responsive or because the bidder is deemed not -responsible, the City will
give written notice to said bidder of evidence reflecting such decision.
B. Time to File Protest
All protests must be filed in writing and received by the Department Director
within five (5) business days of the date of opening the bids.
C. Form of Protest
All protests shall be in writing, state the grounds for the protest, state the facts
relevant to the protest, and all evidentiary support to rebut adverse evidence that
it or another bidder was either non -responsive or not responsible. All protests
have to be filed in accordance with the instructions contained in the solicitation
which is the subject of the protest.
D. City Ilianager Review
The City Manager or designee shall review the protest and issue a written
decision on the protest. The City Manager or designee may base the decision
the written protest alone or may informally gather evidence from the person(s)
filing the protest or any other person having relevant information. For
procurements having a value of One Hundred Twenty -Five Thousand and
o0000000Doee ee
dogeod
n/1th ($125,.) llars or lss, thCity Manar's•r•esign's
ecisin shall be final. I
E. Hearing on Protest
If a bid was rejected on the grounds that the bidder was not a "responsible"
bidder, the protesting party must submit materials set forth in Section D above for
we
consideration. A hearing will be set within a reasonable time to provide a
decision before final approval of the selected low bid. For procurements having a
value of One Hundred Twenty -Five Thousand and no/100th ($125,000.00)
Dollars or less, the City Manager's or designee's decision shall be final.
F. Appeal of City Manager's Decision to City Council
For procurements having a value exceeding One Hundred Twenty -Five
Thousand and no/100th ($125,000.00) Dollars, an appeal of the City Manager's
decision may be filed with the City Council. All such appeals must be in writing,
and shall be filed with the City Clerk within five (5) business days from the date of
the City Manager's written decision.
G. Failure to Timely Appeal
An interested party who fails to file a protest within the times set forth in this
section waives any right to protest the issue further. No appeal to either the City
Manager or City Council of any decision to award a bid under this chapter may
occur once the contract has been awarded.
Exception to Bidding
If the City Council rejects all bids, or if no bids are received, or if the project is $54,000
or less (or in an amount as modified by City Council Resolution pursuant to Downey
Charter Section 1211), the City Council may determine that in its opinion the work in
question may be performed better or more economically by the City with its own
employees or the materials/supplies may be purchased at a lower price in the open
market and after the adoption of a resolution and an affirmative vote of a majority of the
total members of the City Council, the City may proceed to have the work done or the
materials/supplies purchased without further observance of the bidding requirements.
(Downey Charter Section 1211).
Emergency Contract Procedures
Such contracts may be let and such purchases made without advertising for bids, if
such work or the purchase of such materials or supplies shall be deemed by the City
Council to be urgent necessity for the preservation of life, health or property, and shall
be authorized by the affirmative vote of at least two-thirds of the total members of the
City Council. (Downey Charter Section 1211).
Public Utilities
Projects for the extension, construction or improvement of any public utility system
INZ,�WAMIV-Ant+7 2. 1-4
: P��4vavrx
any such utility may be excepted from the formal bidding requirements by the affirmati
vote of a majority of the total members of the City Council. (Downey Charter Section
1211). 1
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RUMMIM
gmum FTT.
A. Sole Source: Unique commodities and services which can • obtained •. -
• • vendor • one distributor authorized to sell in Downey, with singular
characteristics or performance capabilities or which have specific compatibility
components with existing City products are exempt from the competitive bidding
requirements in City's Purchasing Ordinance and are deemed sole source
purchases. Sole source purchases may include proprietary items sold direct
from the manufacturer. All sole '• purchases shall be supported by written
justification and documentation on a form approved by the Finance Director,
indicating the facts and nature supporting the determination of a sole source,
signed by the appropriate Department Director and forwarded to the Purchasing
Division. In addition, the Sole Source Justification form must be completed and
signed •, •• the requesting staff member and Department Director. As with
any other purchase, staff must establish facts indicating the anticipated cost is
fair and reasonable. Final determination that an item is a valid sole source
purchase will be made by the Purchasing Clerk.
1. Sole source purchases from $5,000, • not more than $49,999 shall •_
approved by the Finance Director. Any sole source over $50,000 requires
City Manager or designee approval.
Proprietary: An item that is held under exclusive title, trademark • copyright by
a private person or company. A proprietary distributorship would also apply.
Bidding should • among ♦ r• that provide the name brand
specified. However, if a proprietary distributorship is responsible for an entire
area, therefore eliminating the possibility of bidding, the item is considered a sole
source item and is subject to the provisions as outlined above.
C. Standardization: An established agreement for the use • a particular product
normally subject to bidding, in lieu • other similar • equal products, based • i
design, quality or physical characteristics which is reviewed and approved by th
Department Director as a City standard. Bidding may occur among those
distributors who provide the product that has been established as the City
standard or the product may meet sole • criteria and is subject to the
provisions above. i
KE
Cooperative, Piggyback, and Multiple Awarded Bid Purchasing with Other
Agencies
A. Cooperative: The Purchasing Division may participate in purchases and
contracts established by other public or governmental agencies, provided the
cooperative agreement has not expired and is established following a competitive
bid process. In a cooperative purchase setting, one agency represents several
agencies by going out to bid, including the needs of the other agencies in the bid
specifications. This provides for higher product volume being purchased,
resulting in lower unit cost to all agencies. Needed documentation includes:
copies of the other jurisdiction's bid document, and any Board or Council action
awarding the contract, and the unexpired contract document. If the award
calculation included a local preference and was awarded to their local vendor the
bid cannot be used. The Purchasing Clerk may authorize the award of
cooperative purchase agreements for amounts not more than $30,000; City
Council approval is required for the award of any cooperative purchase
exceeding $30,000.
B. Piggyback onto Existing Contract: An existing unexpired contract for goods
between another local, state or federal government agency and a vendor may be
used to purchase the same goods as those outlined in the awarding bid
document. This is called piggybacking onto the other agency's contract. When
piggybacking onto a contract, the City must use the exact contract as was
awarded by the other agency. The item being purchased must be purchased as
specified/awarded and cannot be modified in any way. Also, the terms of the
contract and price of the item must be as specified in the contract or awarding
document. The contract for consideration must have been awarded through a
competitive bidding process prepared by and awarded by another local, state, or
federal government agency. Needed support documentation includes: copies of
the other jurisdiction's bid document, and any Board or Council action awarding
the contract, and the unexpired contract document. If the award calculation
included a local preference and was awarded to their local vendor the bid cannot
be used. The Purchasing Clerk has authority to approve a "piggyback" purchase
for purchases not more than $30,000. City Council's approval is required on
"piggyback" purchases for an amount exceeding $30,000.
Multiple Awarded Bids: Multiple awarded bids are generally conducted by
larger Federal State or other governmental agencies wherein a competitive
bidding process is conducted for a specified product. Several vendors whose
product meets the specification are awarded the contract. Maximum item price
and contract terms are established. If the Purchasing Clerk determines it to be in
the City's best interest, the Purchasing Clerk may authorize the use of a Federal,
State or other government agency multiple awarded contract. An example of a
multiple awarded contract is the California Multiple Award Schedule (CMAS).
City staff must obtain quotes from at least three vendors on the list and award the
W14
• I 111M In 161 a • I a --• •
• Purchases — • than for Public Works •
!t4iting ttrdk
of competitive bidding when there is an emergency situation. Emergency purchases
shall be made only for the following reasons: (1) to preserve or protect life, health or
property; (2) upon natural disaster; or (3) to correct or forestall a shutdown of public
services.
Since emergency orders do not normally provide the City an opportunity to obtain
competitive quotes or properly encumber funds committed, sound judgment shall be
used in keeping such orders to an absolute minimum. In addition, the following
-• shall apply:
C. Written supporting documentation explaining the circumstances and nature of thz
urgency shall be signed by the Department Director and submitted to the
Purchasing Division along with the purchase requisition.
This documentation shall also be submitted by the Department Director for
review and approval as follows:
1. Purchases in the amount of $5,000, but not more than $30,000: Report to
City Manager within one week of the urgent purchase.
2. Purchases over $30,000: Report to the City Council at its next schedul-0"
• I
• would • •' required, a contract must be created and
executed between the parties as soon as reasonably possible, even after
•- has passed.
G. Approved documentation will be provided to Purchasing Division to supplement
the ,• requisition •
W
Items that were • the •• value • $5,000 at the time they were purchased should
•: handled as follows:
A. Request Public Works, Maintenance, to remove equipment. Provide a copy of
the surplus property form to Maintenance to accompany the equipment and send
the original form to Purchasing.
B. Department Secretary will alert other departments of the availability of the
equipment. If another City department can use the equipment it will be
transferred to the other department. If the equipment cannot be used elsewhere
in the City, the Purchasing Clerk will make a determination as to whether or not
the item is to be declared "surplus".
C. The Purchasing Clerk will determine whether the equipment has value and the
appropriate disposal method of the equipment ( donate to a charitable
organization, such as Goodwill, dispose through trash/recycle, or transfer to the
surplus holding area awaiting auction or surplus sale).
D. Generally, equipment under the $5,000 threshold that is no longer needed • the
City will •- transferred to an auction company in which the City receives the
proceeds • the • •: donated to other •• .•- • to a
charitable organization, such as Goodwill.
E. Purchasing will finalize the surplus document indicating disposal determination.
F. • will maintain a record of all disposed equipment.
G. Surplus computer equipment should be forwarded to the 1. T. Division for
disposal. The 1. T. division will remove the hard drive and any other item that
stores information and then dispose of then remaining parts of the computer
equipment in a cost effective and environmentally sound method.
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Items that were purchased • $5,000 and over and have an asset •- will •-
handled as follows:
A. Complete a surplus property form and forward to Purchasing,
B. Purchasing will forward the surplus property form to Accounting who will release
the asset funds to •r= used • equipment -• and will record the
equipment as surplus.
C. Purchasing will determine the appropriate disposal • equipment. If the
department has a vendor interested in purchasing the equipment, either through
negotiated sale or equipment trade-in, the department needs to alert Purchasing
of this opportunity. All revenue from disposal of the equipment will be returned to
the fund which purchased the asset.
1. Equipment (that is not being traded -in or purchased by a vendor), may be
transferred to the surplus property holding area and will be disposed of at a later
•. in the most profitable way to the City as determined • the Purchasing
Clerk.
E. Revenue from the sale of surplus property shall be returned to the appropria
fund balance (General Fund, Enterprise Fund) not to the cost center's asset
replacement, retired equipment reserve. i
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The Purchasing Clerk shall determine which •; the following methods • disposition is
most appropriate and in the best interest of the City.
A. Transfer to Another Department: Surplus property may be transferred between
operating departments. Departments wishing to transfer surplus property to or
from another department shall complete the transfer property form and submit it
to Purchasing • review and approval. If property is transferred between
General Fund and Enterprise Funds, the financial transaction will be handled by
Accounting. Asset replacement funds are transferred with the equipment to the
new department.
B. Trade-in: Property declared as surplus may be offered as a trade-in; however, it
may not be used to offset funding toward the acquisition of the new property.
Revenue from the sale of surplus property shall be "• • the appropriate
fund as determined by the Finance Department. All trade-in offers will be
submitted for review and approval by Purchasing.
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Return to Manufacturer: Surplus property may, when possible, be returned to
the manufacturer for buy-back or credit toward the purchase of new property.
When budgeting for such an action, the department must budget for the full
purchase price • the equipment and must have asset replacement funding •
the full • of the new equipment. The •• value • the buy-back will be
credited to fund balance, and not used to offset the purchase of the equipment.
D. Sales: Surplus property may be offered for sale by the Purchasing Clerk. All
surplus property for sale is "as is" and "where iswith no warranty, guarantee, or
representation of any kind, expressed or implied, as to the condition, utility or
• • the property offered '• sale. Appropriate methods • sale are as
•'I•
1. Public Auction: Surplus property may be sold at a public auction. Public
• may • conducted by City staff, • the City may contract with a
professional auctioneer.
3. Sealed Bids: Sealed bids may be solicited for the sale of surplus property,
Surplus property disposed of in this manner shall be sold to the highest
responsible bidder.
4. Sell for Scrap- Surplus property may be sold as scrap if the Purchasing Clerk
deems that the value of the raw material exceeds the value of the property as
a whole.
6. Negotiated Sale: Surplus property may be sold outright if the Purchasing
Clerk determines that only one known buyer is available or interested in
acquiring the property.
6. Disposal as Junk: When the cost of locating a buyer exceeds the estimated
sale price of surplus property, the Purchasing Clerk may destroy or dispose of
the item as junk.
7. Gifts: Surplus property may be given to any fraternal, benevolent, patriotic,
charitable, or religious organization not organized for profit, or to any other
public agency. City Council approval of this policy authorizes the Purchasing
Clerk authority to determine items to be donated.
In no event can surplus property be purchased by or given to City of Downey
employees or relatives of city employees.
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• - $10,000 (City Council approval).The template PSAsare located on the "S" Drive
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FEDERAL
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A. This section shall apply to the awarding of sub -grants and contracts • the City
stemming • -•- grants to the City. This section shall have the same
application on the awarding of sub -grants and contracts • the City stemming from
state, county or other non-federal government entity •: originating as -•-
g rants.
The City shall maintain a contract administration system which ensures
contractors perform in accordance with the terms, conditions and specifications
of their contracts or purchase orders.
2. The City shall maintain written standards of conduct covering conflicts of interest
and governing the actions of its employees engaged in the selection, award and
administration of contracts. No employee, officer or agent of the City shall
participate in selection, or in the award or administration of a contract supported
by federal funds if a conflict of interest, real or apparent, would be involved. Such
a conflict would arise when:
a. The employee, officer or agent;
b. Any member of his or her immediate family;
c. His or her partner; or
d. An organization which employs, or is about to employ, any of the above,
has a financial or other interest in or a tangible personal benefit from a firm
considered for award.
3. The City's officers, employees or agents will neither solicit nor accept gratuities,
favors or anything of monetary value from contractors, potential contractors, or
parties to sub- agreements. Such a conflict will not arise where the financial
interest is not substantial or the gift is an unsolicited item of nominal intrinsic
value. The City's standards of conduct provide for disciplinary actions to be
applied for violations of such standards by officers, employees, or agents of the
City.
4. The City shall not enter into a contract with a non -Federal entity has a parent,
affiliate, or subsidiary organization that is not a state, local government or Indian
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tribe, unless the non -Federal entity maintains written standards of conduct
0 61M I T M r TV "I r1w
5. The City shall avoid acquisition of unnecessary or duplicative items.
Consideration will be given to consolidating or breaking out procurements to
obtain a more economic purchase. Where appropriate, an analysis will be madvs
of lease versus • alternatives, and any other appropriate analysis to
determine the most economical approach-
6. The City -shall consider entering, into state and • intergovernmental
agreements or inter -entity agreements where appropriate for procurement or
use of common or shared goods and services.
7. The City shall consider using Federal excess and surplus property in lieu of
purchasing new equipment and property whenever such use is feasible and
reduces project costs.
B. The City shall consider using value engineering clauses in contracts for
construction projects of sufficient size to offer reasonable opportunities for cost
reductions. Value engineering is a systematic and creative analysis • each
• item • task to ensure its essential function is provide at the overall
lower cost.
•, The City shall make awards • to responsible contractors possessing the
ability to perform successfully under the terms and conditions of a proposed
procurement. Consideration will •- • to such matters as contractor
integrity, compliance; with public policy, record of past performance and
financial • technical resources.
10. The City shall maintain records sufficient to detail the history of procurement.
These records will include, • are • necessarily limited to the following:
rationale for the method of procurement, selection of contract type, contractor
• or • and the basis for the contract price.
11. The City shall use time and material type contracts only:
a. After a determination is made that no other contract is suitable; and
b. If the contract includes a ceiling price the contractor exceeds at their own
risk.
1Z The City alone shall be responsible, in accordance with good administrative
practice and sound business •• for the settlement • all •
and administrative issues arising out of procurements. These issues include,
but are not limited to, source evaluation, protests, disputes and claims. These
standards do not relieve the City of any contractual responsibilities under its
•
1. The City will conduct procurement transactions in a manner providing full and
open competition. To ensure objective contractor performance and eliminate
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unfair competitive advantage, contractors developing or drafting specifications,
requirements, statements of work or invitations for bids or requests for proposals
shall be excluded from competing for such procurements.
2. The City -shall conduct procurements -in a manner prohibiting the -use of
statutorily or administratively imposed in -state or local geographical preferences
in the evaluation of bids or proposals, except in those cases where applicable
Federal statutes expressly mandate or encourage geographic preference. When
contracting for architectural and engineering (A/E) services, geographic location
may be a selection criteria provided its applications leaves an appropriate
number of qualified firms given the nature and size of the project, to compete
for the contract.
3. The City shall have written procedures for procurement transactions. These
procedures will ensure that all solicitations:
a. Incorporate a clear and accurate description of the technical requirements for
the material, product or service to be procured. Such description shall not, in
competitive procurements, contain features which unduly restrict competition.
The description may include a statement of the qualitative nature of the
material product or service to be procured, and when necessary, shall set
forth those minimum essential characteristics and standards to which it must
conform if it is to satisfy its intended use. Detailed product specifications
should be avoided. 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 to define the performance or other salient
requirements of procurement. The specific features of the named brand which
must be met by offerors shall be clearly stated; and
b. Identify all requirements which the offerors must fulfill and all other factors
to be used in evaluating bids or proposals.
4. The City shall ensure prequalified lists of persons, firms or products that are
used in acquiring goods and services are current and include enough qualified
sources to ensure maximum open and free competition. The City shall not
preclude potential bidders from qualifying during the solicitation period.
1'. Methods of Procurement to be followed. The City shall use one of the following
methods of procurement:
Procurement by Micro -Purchases. Procurement by micro -purchase is the
acquisition of supplies or services, the aggregate dollar amount of which does
not exceed the micro- purchase threshold as set by the Federal Acquisition
Regulation at 48 CFR Subpart 2.1 (Definitions) and adjusted periodically for
inflation. As of the date of this ordinance, the micro -purchase threshold is
$3,50ill
.
Procurement by Small Purchase Procedures. Small purchase procedures are —
those relatively simple and informal procurement methods for securing
services, supplies or other property that do not cost more than the simplified
acquisition threshold as set by the Federal Acquisition Regulation at 48 CFR
Subpart 2.1 (Definitions) and in accordance with 41 U.S.C. 1908 and
periodically adjusted for inflation. If small purchase procedures are used, price
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or rate quotations shall be obtained from an adequate number of qualified
sources. As of the date of this ordinance, the simplified acquisition threshold is
$150,000. • purchases exceeding one hundred and fifty thousand
($150,000), City Council approval is required.
3. Procurement by Sealed Bids (Formal Advertising)- Bids are publicly solicited
and a firm -fixed -price contract (lump sum or unit price) is awarded to the
responsible bidder whose bid, conforming • all the material terms and
conditions • the invitation for bids, is the lowest in price.
a. For sealed bidding to be feasible, the following conditions should be present:
(1) A complete, adequate, and realistic specification or purchase
description is •
(2) Two or more responsible bidders are willing and able to compete
effectively for the business; and
(3) The procurement lends itself to a firm -fixed -price contract and the
selection of the successful bidder can be made principally based on
•,
If sealed bids are used, the following requirements apply:
(1) The invitation for bids will be publicly advertised and bids shall be
solicited from an adequate number of known suppliers, providing them
sufficienttime prior • the date set for opening the •ids
(2) The invitation for bids, which will include any specifications and
pertinent attachments, shall define the items or services for the
bidder to properly respond;
(3) All bids will be publicly opened at the time and place prescribed in the
invitation for bids;
(4) A firm -fixed -price contract award will be made in writing to the lowest
responsive and responsible bidder. Where speffied in bidding _Oocuments, factors
such as discounts, transportation cost and life cycle costs shall be considered in
determining which bid is lowest. Payment discounts will only be used to
determine the low bid when prior experience indicates that such discounts
are usually taken advantage of; and
(5) If there is a sound documented reason, any or all bids may be rejected.
Procurement by Compeve Proposals. The technique of competitive
proposals is normally conducted with more than one source submitting an offer,
and either a fixed- price or cost -reimbursement type contract is awarded. It is
generally used when conditions are not appropriate for the use of sealed bids.
If this method is used, the following requirements apply:
a. Requests for proposals shall be publicized and identify all evaluation
factors including relative importance. Any response to publicized requests
for proposals is honored to the maximum extent practical;
b- Proposals will be solicited from an adequate number of qualified sources;
c. The City shall conduct technical evaluations of the proposal received
• • selecting awardees;
d. Awards will be made to the responsible firm whose proposal is most
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advantageous to the program, with price and other factors considered; and
e. The City may use competitive proposal procedures for qualifications -based
procurement of architectural/engineering (A/E) professional services
whereby competitors' qualifications are evaluated and the most qualified
competitor is selected; subject to negotiation of fair and reasonable
compensation. The method, where price is not used as a selection factor,
can only be used in procurement of A/E professional services. It cannot be
used to purchase other types of services though A/E firms are a potential
source to perform the proposed effort.
5. Procurement by noncompetitive proposals is procurement through
solicitation of a proposal from only one source and may be used only wher
one or more of the following circumstances applies:
a. The item is available only from a single source;
b. The public exigency or emergency for the requirement will not permit a
delay resulting from competitive solicitation;
c. The Federal awarding agency or pass -through entity expressly authorizes
noncompetitive proposals in a written request from the City; or
d. After solicitation of multiple sources, competition is determined inadequate.
6. Contracting with Small and Minority Businesses, Women's Business Enterprises and
Labor Surplus Area Firms.
a. The City shall take all necessary affirmative steps to assure that minority
businesses, women's business enterprises and labor surplus area firms are
used when possible.
b. Affirmative steps include:
(1) Placing qualified small and minority businesses and women's business
enterprises on solicitation lists;
(2) Assuring that small and minority businesses and women's business
enterprises are solicited whenever they are potential sources;
(3) Dividing total requirements, when economically feasible, into smaller tasks or
quantities to permit maximum participation by small and minority businesses
and women's business enterprises;
(4) Establishing delivery schedules, where the requirement permits, which
encourage participation by small and minority businesses and women's
business enterprises;
(5) Using the services and assistance, as appropriate, of such organizations as
the Small Business Administration and the Minority Business Development
Agency of the Department of Commerce; and
(6) Requiring the prime contractor, if subcontracts are to be let, to take the
affirmative steps listed in subsections 6.b.(1) through (6) of this section.
7. Contracts Cost and Price.
a. The City shall perform a cost or price analysis in every procurement action
exceeding the simplified acquisition threshold including contract modifications. The
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method and degree of analysis will be dependent on the facts surrounding each
procurement situation. As a starting point, the City shall make independent
estimates before receiving bids or proposals.
b. Costs or prices based on estimated costs for contracts under the Federal award
be allowable only to the extent that costs incurred or cost estimates included in
negotiated prices would be allowable for the City under Subpart E - Cost Principle
of Title 2, Subtitle A, Part 200 (Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards).
c. The cost plus a percentage of cost and percentage of construction cost methods
of contracting shall not be used. I
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a. The City shall make available, upon request of the Federal awarding agency or
pass -through entity, technical specifications on proposed procurements where the
federal awarding agency or pass -through entity believes such review is needed to
ensure that the item or service specified is the one being proposed for purchase.
b. The City shall make available upon request, for the Federal awarding agency
or pass -through entity pre -procurement review, procurement documents, such
as requests for proposal or invitations for bids, or independent cost estimates
when:
(1) The City's procurement procedures or operation fails to comply with the
procurement standards of Title 2, Subtitle A, Part 200. Subsection
200.324;
(2) The procurement is expected to exceed the simplified acquisition threshold
and is to be awarded without competition or only one bid or offer is received
in response to asolicitation;
(3) The procurement, which is expected to exceed the simplified
acquisition threshold, specifies a "brand name" product;
(4) The proposed contract is more than the simplified acquisition threshold and is
to be awarded to other than the apparent low bidder under a sealed bid
procurement; or
(5) A proposed modification changes the scope of a contract or increases
the contract amount by more than the simplified acquisition threshold.
The City may be exempted from the pre -procurement review in subsection 8.b.
above if the Federal awarding agency or pass -through entity determines that its
procurement systems comply with the standards set forth in Title 2, Subtitle A,
Part 200, or the City self -certifies compliance with such standards if self -
certification is permitted by the Federal awarding agency or pass -through entity.
Bonding Requirements. For public projects, the City shall require bid
guarantees, performance bonds, and payment bonds consistent with Title
Part 200, Section
200.325 of the Code of Federal Regulations.
10. Contract Provisions. The City's contracts shall contain the provisions in Appendix 13
to Title 2; Subtitle A, Part 200 - Contract Provisions for non -Federal Entity Contrac
under Federal Awards, asapplicable. i
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