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HomeMy WebLinkAbout06736ORDINANCE NO. 6736 AN ORDINANCE APPROVING AND ADOPTING PURCHASING POLICIES AND PROCEDURES FOR THE CITY OF PUEBLO WHEREAS, pursuant to Section 7 -28 of the Charter, the City Council is authorized to adopt rules and regulations for the purchase of supplies, materials, equipment and contractual services required by all departments, offices, and agencies of the City, and WHEREAS, pursuant to Section 7 -29 of the Charter, the City Council may exempt the purchases of certain supplies, materials, or equipment from competitive bidding, and WHEREAS, the Purchasing Agent has adopted Purchasing Policies and Procedures which should be approved and adopted by the City Council by Ordinance. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Purchasing Policies and Procedures dated September 24, 2001, a copy of which is attached hereto and incorporated herein, are hereby approved and adopted as the Purchasing Policies and Procedures for the City of Pueblo and the exemptions from competitive bidding set forth therein are hereby prescribed and approved. SECTION 2. The Purchasing Policies and Procedures may be amended by Resolution adopted by the City Council, provided, that no additional exemptions from competitive bidding may be enacted except by Ordinance adopted by the City Council. SECTION 3 This Ordinance and the Purchasing Policies and Procedures adopted hereby shall become effective upon final passage of this Ordinance. INTRODUCED: September 10, 2001 M . API ATTESTED BY: -s—��� City Clerk PASSED AND APPROVED: September 24, 2001 T 0 ED TTt �] ED Background Paper for Proposed ORDINANCE LO,�,J. -;e& AGENDA ITEM # DATE: SEPTEMBER 10, 2001 DEPARTMENT: PURCHASING NAOMI CONSUELO, DIRECTOR OF PURCHASING TITLE AN ORDINANCE APPROVING AND ADOPTING PURCHASING POLICIES AND PROCEDURES FOR THE CITY OF PUEBLO ISSUE The City of Pueblo does not have a purchasing policy formally adopted by the City Council. In lieu thereof, the Purchasing Department has followed City Ordinances as applicable and the City Charter as it relates to the purchase of goods and services. This recommended policy simplifies, clarifies, and codifies the City's procurement and contracting processes. The policy also establishes procedures that ensure the procurement system operates in a fair and equitable manner to produce a quality product. The policy was originally written based on the American Bar Association's model procurement code for state and local governments. Relevant portions of the City Charter relating to purchasing were incorporated and initial document was then forwarded to the City Attorney for review and professional guidance. Having gone through what we feel is a complete and professional drafting and review process, we are now ready to recommend the document to the City Council for adoption. RECOMMENDATION Approval of the Ordinance. FINANCIAL IMPACT Potential savings possible based on efficiencies of operations. SUMMARY — PURCHASING POLICIES AND PROCEDURES CA Purchase of Supplies, Materials, Equipment and Contractual Services Competitive Bidding Requirements M. $0 - $1,001: no competitive bidding required $1,001 - $5,000: informal competitive bidding without sealed bids $5,001 - $25,000: competitive sealed bids; except, if allowed in advance by Purchasing Agent, purchases of $5,001 to $10,000 may be acquired by informal competitive bidding without sealed bids $25,001 and over: formal competitive bidding including advertisement by legal notice The purchase will be awarded to the lowest and best bidder, i.e., the lowest responsive bid submitted by a responsible bidder in compliance with the invitations for bids meeting the standard and specifications contained in the invitation for bids. Other Purchases Not Requiring Competitive Bidding 1. Cooperative Purchase Agreements with the approval of the Purchasing Agent. 2. Equipment Repair for repairs occurring during use and are needed immediately of not more than $5,000. Travel, subject to City travel policies. 107- 4. Emergency Purchases necessary to resolve the emergency, and which will not permit a delay resulting from competitive bidding. Emergency purchases over $25,000 require the approval of the City Manager. 5. Listed Items, such as subscriptions, books, postal services, membership dues, and petty cash purchases. Purchases of Professional and Technical Services Requests for Proposals and guidelines are required for procurement of exempted professional and technical services. D. City Improvements Contracts for City improvements, such as building, structures, and infrastructures of the City are governed by Chapter 10, Title I of the Pueblo Municipal Code. City of 4i Purchasing Policies and Procedures September 24, 2001 F: /Purch Policy /Purchasing Procedures 09/11/01 ti Article . ............................... 3 c4n .... ..... ............................... 4 Article 3.0 G h 9�q��i,f v' o 5.2 3.1 om 5.3 Request for Proposal for Professional and Technical Services ....................... 3.2 5.4 ..... ..................................... ............ ............................. .. 4 Article 6.0 .2.1 s m Ci Warehouse ............................ ............................... 5 Unit Specification Checklist (Section 2.3.3) ur a o expenditures not requiring competitive bids ..................... 5 3 D c iring competitive bids, but not sealed bids .................... 6 Exhibit C 3.2.4 urch es requiring competitive sealed bids ......... ............................... 6 3.3 Determination of Non - Responsible Bidder ........................ ............................... 6 Article4.0 Specifications ...................................................... ..............................7 Article 5.0 Methods of Source Selection 5.1 Informal Bidding Process .................................................... ..............................7 5.2 Formal Bidding Process ..................................................... ............................... 7 5.3 Request for Proposal for Professional and Technical Services ....................... 11 5.4 Sole Source Procurement ................................................ ............................... 14 Article 6.0 Contracts for City Improvements ................................. ............................... 14 Exhibit A Unit Specification Checklist (Section 2.3.3) Exhibit B Request to Purchase Non - standard Computer Hardware, Software, Network, Wireless, or Peripheral Items (Section 2.3.4) Exhibit C Authorization for Public Improvement Projects (Section 6.0) ARTICLE 1.0 GENERAL PROVISIONS 1.1 Purpose These rules are issued in accordance with the Pueblo Municipal Code and the Charter of the City of Pueblo. The purpose of these procedures is to set forth the following elements of a centralized purchasing function: (1) The Director of the Purchasing Department as the City Purchasing Agent, shall contract for and purchase all supplies, materials, equipment and contractual services required by any department, office, or agency of the City Government, with the exception of procurements referenced in Article 3. (2) These rules are designed to provide for the fair and equitable treatment of all persons involved in purchases made by the City; to simplify, clarify, and up -date the City's procurement and contracting process; to encourage effective competition; and to insure that expenditures are carried out in a prudent manner. These rules are also designed to ensure a procurement system of quality, fairness, and integrity. (3) These rules also establish exemption to selected areas of the competitive bid process as authorized by Section 7 -29 of the Charter of the City of Pueblo. (4) Except with respect to Pueblo Transit, the City Purchasing Agent shall not act as a contractor or purchasing agent for any group or entity not considered a department, office, or agency of the City Government. 1.2 Application These rules shall apply to every department, office, or agency of the City Government, except as set forth below. (1) When procurement involves the expenditure of Federal assistance or contract funds, the City shall follow any mandatory requirements of applicable Federal law and implementing regulations pertaining to such procurements which are more restrictive than the procedures contained herein. (2) Nothing in these rules shall prevent the City from complying with the terms and conditions of any grant, gift, bequest, or cooperative agreement, providing that competitive procedures as described in these rules shall be followed whenever possible. (3) Procurement of professional or technical services is exempted from competitive bidding. The method for procuring these services will be using requests for proposals (RFP) under the guidelines set forth in Section 5.3. (4) These rules shall not be applicable to the leasing, rental, acquisition or disposition of real property. (5) These rules shall not apply to City Improvement Contracts (see section 6.0). 1.3 Definition of Terms As used in this document, the following terms shall mean: (1) "ADDENDA" - Written or graphic documents issued prior to the opening of bids that clarify, correct or change the bidding documents or the contract documents. (2) "BLANKET PURCHASE ORDER" — Purchase orders used for several small purchases on a continuing basis from the same vendor. R /Purch Policy /Purchasing Procedures 09/11/01 2 (3) "BRAND NAME OR EQUAL SPECIFICATION" — A specification that cites brand names, model numbers, or other identifications as representing quality or performance called for, when inviting bids on comparable items or products of any manufacturer. (4) "BIDDER'S LIST" — A data base of qualified vendors maintained by the Purchasing Department. (Note: New vendors are actively sought, and departments are encouraged to notify the Purchasing Department of vendors interested in doing business with the City.) (5) "CITY" — The City of Pueblo, including all departments, offices, or agencies of the City Government. (6) "CITY CHARTER" — Charter of the City of Pueblo as amended. (7) "COMMITTEE OF AWARDS" — Consists of the City Manager, the Director of Public Works, and the Department Director of the requisitioning department, office, or agency. (8) "CONTRACT" — Any type of City agreement, regardless of what it may be called, for the procurement or disposal of supplies, equipment, materials or services. (9) "EMERGENCY PURCHASE" — A purchase made without following the normal purchasing procedures in order to obtain goods or services to meet an urgent and unexpected requirement. (10) "FORMAL SOLICITATION PROCESS" — The process used for soliciting and awarding contracts that exceed $5,000.00. (11) "INVITATION FOR BIDS" (IFB) — A written solicitation for competitive sealed bids with the title, date and hour of the public bid opening designated therein and specifically defining the goods or services for which bids are sought. (12) "INFORMAL SOLICITATION PROCESS" — The process of soliciting bids or proposals from prospective vendors or contractors without formal advertisement or sealed bid for requirements less than $5,000.00 or, with approval in advance of the Purchasing Agent, less than $10,000.00. (13) "LEGAL NOTICE" — Notice of an intent to purchase goods or services or to advertise the sale of property. Whenever the Charter of Pueblo, any ordinance, rule or regulation, regularly adopted or promulgated thereunder provides for publication of a legal notice, such notice, unless otherwise provided for, shall be published at least once in a newspaper of wide distribution and general circulation, published daily in the City of Pueblo. Notice may also be satisfied by notification of the appropriate bidders from the bidder's list, formal advertisement in a trade publication, or a combination of these methods. (14) "LOWEST AND BEST BID" — The lowest responsive bid submitted by a responsible bidder in compliance with invitation for bids meeting the standards and specification contained in the invitation for bids. (15) "MANUAL PURCHASE ORDER" — Preprinted, prenumbered purchase orders that are used in the field for small purchases. These purchase orders must be approved by the requisitioning department's Director prior to purchase of goods or services. (16) "MISTAKE IN BID" — A miscalculation in composing a bid resulting in an incorrect price or other term which may affect the bidder's eligibility to be awarded a contract. (17) "NO BID" — A response to an Invitation for Bid stating that the respondent does not wish to submit a bid. (18) "NONRESPONSIVE BID" — A bid that does not conform to the requirements of the invitation for bids; non - conforming bid; or an unresponsive bid. F: /Purch Policy /Purchasing Procedures 09/11/01 3 (19) "PAYMENT BOND" - A contract of guaranty executed subsequent to award by a successful bidder to protect the City from loss due to contractor inability or failure to pay all persons performing labor and furnishing material in connection with the awarded City contract. (20) "PERFORMANCE BOND" — A contract of guaranty executed subsequent to award by a successful bidder to protect the City from loss due to contractor inability to faithfully complete the awarded City contract as agreed. (21) "PERFORMANCE SPECIFICATION" — A specification describing the performance characteristics sought in a product or service; a purchase description accenting performance over design; a functional rather than a generic or physical specification. (22) "PROFESSIONAL SERVICES" — Those services which are essentially intellectual in character and which include analysis, evaluation, prediction, planning, or recommendation. Professional services involve extended analysis, the exercise of discretion and independent judgment in their performance, and an advanced, specialized type of knowledge, expertise, or training customarily acquired either by a prolonged course of study or equivalent experience in the field. Professional services include, but are not limited to, services performed by accountants, auditors, analysts, consultants, lawyers, physicians, planners, artists, engineers, and architects. (23) "PROTEST" — A written statement concerning an unresolved disagreement or controversy arising out of the solicitation of bid or award of a contract. (24) "RESPONSIBLE BIDDER" — A bidder who in the City's sole judgment, has the financial capability, technical ability, and a record of satisfactory past performance in all respects, to perform in full the contract requirements, and the integrity and reliability that will assure good faith performance. (25) "SOLE SOURCE" — The only known vendor or the only responsible vendor capable of providing goods or services to the City, usually because of compatibility with existing systems or goods or services already in use by the City or other unique qualities of the goods or services that preclude a competitor's price comparison. (26) "SPECIFICATIONS" — Any description of the physical, functional, or performance characteristics, or of the nature of a supply, service, equipment, or construction item. A specification includes, as appropriate, requirements for inspecting, testing, or preparing a supply, service, equipment, or construction item for delivery. ARTICLE 2.0 ADMINISTRATIVE MATTERS 2.1 Office of the Purchasing Agent As set forth in this Policy, the City Purchasing Agent, shall be responsible for contracting and making purchases of all supplies, materials, equipment and contractual services required by any department, office or agency of the City Government. The Purchasing Agent shall also supervise and control the central storeroom that serves all departments, offices, and agencies of the City, in addition to soliciting bids and proposals, contracting, supervising the transfer of materials, supplies, and equipment between departments, and disposing of surplus property owned by the City. 2.2 Officer and Employee Bidding Participation Pursuant to Section 2 -11 of the City Charter, no elected official, appointed officer, or employee of the City shall be financially interested, directly or indirectly, in the sale of any land, materials, supplies, or services to the City exceeding the sum of $100.00 in any calendar year, unless involved in the competitive bid process. In cases of emergencies necessary to protect public health, safety, and welfare, competitive bidding may be waived. Members of appointed administrative Boards and Commissions created by the F: /Purch Policy /Purchasing Procedures 09/11/01 4 Charter or by ordinance shall be permitted to provide technical or professional services to the City where such services are exempt from the requirements of competitive bidding. 2.3 Procurement Requisition Process 2.3.1 General All department purchases, whether from an external vendor or the City Warehouse, must be entered into the purchasing /inventory computer system in order for payment to be made. Once the Department Director, or Director's designee, has determined the type of purchase they need and has followed the guidelines in this policy, the requisition process is as follows: 1) Department personnel enters the requisition in the purchasing /inventory computer system, 2) Department Director, or Director's designee, electronically approves the requisition, 3) the requisition is electronically approved or rejected by the Finance Department upon verification of budget funds, 4) a purchase order is electronically generated by the Purchasing Department after verification is made that all procurement rules have been followed or, if the purchase is made from the City Warehouse, the order is filled and delivered to the requesting department. Specific procedures for entering requisitions into the purchasing /inventory computer system are located in the Purchasing /Inventory Training Manual which can be obtained from the Purchasing Department. 2.3.2 City Manager Approval All Purchases for more than $10,000, not including utilities or city improvements, shall be approved by the City Manager or his designee before departments commences the procurement process. 2.3.3 Purchases of Mobile Equipment Specifications for all mobile equipment, such as, vehicles, mowers, heavy equipment, or trailers, must be reviewed and approved by the management of City Fleet Maintenance prior to solicitation for bids by the Purchasing Agent. A "Unit Specification Check List," attached hereto as Exhibit A, must be filled out by the requesting department and submitted to Fleet Maintenance for each piece of mobile equipment being purchased. The Purchasing Agent will not begin the bidding process without the approved forms being submitted. 2.3.4 Purchases of Computer Related Services, Equipment, and Software Specifications for all computer related services, equipment, and software must be reviewed and approved by the Director of Information Technology prior to solicitation for bids by the Purchasing Agent. A "Request to Purchase Non - standard Computer Hardware, Software, Network, Wireless, or Peripheral Items," attached hereto as Exhibit B, must be filled out by the requesting department and submitted to Information Technology for each piece of computer equipment or software being purchased. The Purchasing Agent will not begin the bidding process without the approved forms being submitted. ARTICLE 3.0 GENERAL PURCHASING PROVISIONS 3.1 Competitive Bidding Before any purchases of supplies, materials, equipment, or services over $1,000 are made, the Purchasing Agent shall give ample opportunity for competitive bidding as set forth in these Policies. Although small purchases under $1,000 do not require competitive bidding, the department acquiring goods or services in this manner shall be expected to use professional judgment to ensure that the City is receiving maximum value. F: /Purch Policy /Purchasing Procedures 09/11/01 6i 3.2 Procurement Options The dollar value of the transaction, in most cases, determines the method to be used to make the purchase. The following is an outline of purchasing requirements. 3.2.1 Purchases from City Warehouse The City Warehouse will stock office supplies, stationary, janitorial supplies, hardware, tools, gloves, and some miscellaneous items. Yearly competitive bidding shall be undertaken for these items and stock ordered in large quantities to obtain the best prices possible. All materials and supplies available from the City Warehouse are made available to all departments, offices, and agencies at the price quoted from the vendors. The warehouse catalog should be checked first for availability of supplies before going to an outside vendor to purchase. No purchase will be authorized from an outside vendor for materials and supplies available from the City Warehouse without prior approval from the Purchasing Agent. Withdrawals of materials and supplies from the City Warehouse shall be by stock requisition and charged to the proper account. The Director of Finance, or his designee, shall approve the withdrawal of supplies from the city warehouse and shall certify that there is to the credit of the requisitioning department, office, or agency, a sufficient unencumbered appropriation balance to pay for the supplies ordered from the warehouse. 3.2.2 Purchases or expenditures not requiring competitive bids: (1) Small Purchases - $1,000 or less — Some purchases are too small to justify the time and expense of soliciting competitive prices. Purchases under $1,000 are considered small purchases and do not require competitive bidding. However, all departments are encouraged to make an attempt to get at least three quotes if possible from local vendors. The department acquiring goods or services in this manner shall be expected to use professional judgment to insure that the City is receiving maximum value. This rule does not preclude the option of receiving written or telephone quotations. Larger purchases shall not be artificially divided so as to constitute a small "purchase ". Manual Purchase Orders, approved and issued by the Purchasing Agent, can be used in the field for small purchases of $1,000 or less when the requisition entry process would be impractical. Manual Purchase Orders shall not be used for large purchases and artificially divided so as to represent several small purchase. Blanket Purchase Orders are to be used when a department regularly makes a number of small purchases of goods or services of $1,000 or less during a set time period with the same vendor. The Director of Finance shall establish the maximum dollar amount allowed a department each fiscal year for Blanket Purchase Orders. (2) Cooperative Purchasing Agreements — Purchases of not more than $25,000, unless approved by the Purchasing Agent, can be made through cooperative purchasing agreements administered or originated by other government purchasing offices. Other government sources may include, but not be limited to, the Colorado State Bid system, Federal GSA contracts, and other city, county, or state governments. The use of other governmental agreements must first be approved by the Purchasing Agent. (3) Equipment Repair - If a piece of equipment or machinery is damaged or otherwise becomes inoperable during use, and the repair parts and /or service are needed immediately, with the approval of the Purchasing Agent, competitive bidding is not required for repairs of not more than $5,000. (4) Travel — Travel expenditures do not require the involvement of the Purchasing Department. All travel expenditures shall follow the Policies and Procedures for Travel by Employees and Officers of the City of Pueblo as adopted by City Council. (5) Sole Source Purchases - Sole source purchases as defined in Section 5.4. R /Purch Policy /Purchasing Procedures 09/11/01 0 (6) Emergency Purchases - Purchases required to protect the public health, welfare, or safety during an emergency which will not permit a delay from competitive bidding may be approved by the Purchasing Agent. Emergency purchases of $25,000 or more shall require the approval of the City Manager. As much competition as practical, however, should be obtained. Such purchases should be limited to the work necessary to resolve the emergency. (7) The following items have been determined to be items not requiring competitive bidding and, therefore, do not require the involvement of the Purchasing Agent. • Subscriptions, books, periodicals, postage stamps and postal services • Membership dues or registration fees for local, state and national business - related organizations • Petty cash purchases • Reimbursements previously authorized • Fees for permits and certifications • Utility expenses (i.e. water, gas, electric), except utilities for which competitive proposals are available (i.e. phone service, trash) • Occasional newspaper advertising expenses (If advertisements are done on a regular basis, enter a requisition for a blanket purchase order) • Real estate transaction expenses 3.2.3 Purchases requiring competitive bids, but not sealed bids: Informal Bids are required for purchases of goods and services from $1,001 to $5,000. Purchases for goods or services in excess of $5,001 but less than $10,000 may also use this process if approved in advance by the Purchasing Agent. The requisitioning department shall attempt to secure at least three quotes to and approved by the Purchasing Agent using an informal bid process. A current list of qualified vendors is available from the Purchasing Department. Bids or proposals may be conveyed and received by letter, telephone, fax, or e-mail. All bids or proposals obtained shall be kept on file by the requisitioning department. The requisitioning department must list all bids (vendor name and quoted price) on the requisition. The Purchasing Agent must approve all informal bid purchases prior to ordering. Copies of the bids shall be made available to the Purchasing Agent upon request. 3.2.4 Purchases requiring competitive sealed bids: Except as provided in Section 3.2.3 for purchases and services from $5,001 to $10,000, formal bids are required for purchases of goods and services over $5,000. For bids between $5,001 and $25,000, the Purchasing Agent will prepare the bid packages and mail out a formal solicitation as set forth under Section 5.2 to qualified bidders of the goods or services required. If technical specifications are to be included as part of the bid documents, they must be provided by the requesting department. For City Improvement projects, see Section 6.0. The formal solicitation process may also be used on purchases of goods or services estimated to be less than $5,001 if considered appropriate by the Purchasing Agent. Formal bids estimated by the requisitioning department to be over $25,000 involves advertising the bid as a Legal Notice in a newspaper of general circulation and other related trade publications, issuing a formal solicitation, and preparing a purchase order or contract for the resultant award. 3.3 Determination of Non - responsibility of Bidder A responsible bidder is a person who is qualified and financially able to timely furnish the equipment or supplies or to perform the work or services described in the solicitation for bids and who is not disqualified under Section 1- 10 -4(d) of the Pueblo Municipal Code. The failure of a bidder to promptly supply information in connection with an inquiry with respect to the bidder's responsibility may be grounds F: /Purch Policy /Purchasing Procedures 09/11/01 7 for a determination of non - responsibility with respect to the bidder. If a bidder is determined not to be a responsible bidder, a written determination of non - responsibility setting forth the basis of the finding shall be prepared by the Purchasing Agent. A copy of the determination shall be sent promptly to the bidder. Information furnished by a bidder determined to be a non - responsive bidder pursuant to this section shall not be disclosed to outside parties, except as required by law or pursuant to a subpoena, without prior written consent by the bidder. The final determination shall be made part of the procurement files. ARTICLE 4.0 SPECIFICATIONS Pursuant to Section 7 -28 (a) of the City Charter, the Purchasing Agent shall establish and enforce (with approval of the City Manager and after consultation with the directors of the departments concerned) standard specifications for all supplies, materials and equipment required by the City. All specifications shall seek to promote overall economy and best use for the purpose intended and shall encourage competition in satisfying the City's needs. Specifications shall not be unduly restrictive. Standardization of equipment (such as vehicles, mowers, equipment, or power tools) is encouraged. Standardization will allow for a cost effective bidding process of equipment, replacement parts, and services. ARTICLE 5.0 METHODS OF SOURCE SELECTION 5.1 Informal Bidding Process Purchases over $1,000 and less than $5,000.00, or less than $10,000 with advance approval by the Purchasing Agent, are awarded based on an informal competitive bid process. Bids or proposals for informal bids, may be received by letter, telephone, fax, e-mail, or other means and under conditions different from those required for sealed bids. The buyer shall solicit at least three or more bids and retain all bid documents. The purchase is awarded to the lowest and best bidder based on the proposal that meets the specifications, terms and conditions solicited, including the delivery requirements. 5.2 Formal Bid Process - Invitation for Bids The specifications of the invitation for bids (IFB) are critical for the success of the procurement. Basic considerations include the contractual terms and conditions which must be written to protect the interest of the City; openness of specifications; requirements for transportation and delivery; payment options; and instructions as to how the bidder is to submit the proposal. A solicitation should seek full and open competition for all purchases and provide fair and equal opportunity for all qualified persons or firms to compete. 5.2.1 Content - The IFB shall include the following: (1) Instructions to bidders concerning the bid submission requirements (furnished by the Purchasing Agent), including the time and closing date, the address to which bids are to be delivered; (2) The project description, (furnished by the requesting department and approved by the Purchasing Agent and any other affected department as indicated under Section 2.3), basis of award, delivery or performance schedule and inspection and acceptance requirements; (3) The contract terms and conditions, including warranty, insurance, bonding and security requirements, and any federal, state or local government requirements as applicable. (4) Incorporation by Reference - The IFB may incorporate documents by reference provided that the Invitation specifies where such documents may be obtained. F: /Purch Policy /Purchasing Procedures 09/11/01 (5) Quotation Record - The IFB shall include a form, which provides space(s) in which the bid price(s) shall be inserted and which the bidder shall sign and submit along with all other necessary submissions. 5.2.2 Multiple or Alternate Bids - The solicitation shall prohibit multiple or alternate bids unless such bids are specifically requested in the Invitation for Bids. Unless specifically provided for in the IFB, multiple or alternate bids shall be rejected, and a clearly indicated base bid will be considered for award as though it were the only bid or offer submitted by the bidder. 5.2.3 Bidder's Lists - The Purchasing Agent shall maintain a bidder's list with the names of businesses that may be interested in competing for various types of City purchasing and contracts. The submittal of a vendor's application does not guarantee inclusion on any or all bid solicitations. The magnitude of the procurement shall be considered in determining how many vendors are sent an Invitation for Bids. The Purchasing Agent shall review each application to determine if the business shall be included on the bidder's list. Factors to be considered may include financial stability, previous service history, quality of products offered and ease of delivery. The lack of a formal vendor's application does not preclude soliciting bids from any vendor or potential supplier. 5.2.4 Minority Business Enterprise - No provision is made in these Policies for preferences or set - asides for minority or woman owned businesses. It is, however, the policy of the City to make a special effort to solicit and encourage small, minority or women owned businesses located in the City to participate in the City bidding process. 5.2.5 Local Business Preference - No provision is made in these rules for dollar percentage or other types of preferential considerations for local vendors or contractors. It is, however, the policy of the City to solicit bids from suppliers located in the City whenever and wherever such competitive local sources exist, and where no sacrifice or loss in price or quality would result. In the event of a tie bid between a City vendor and an out -of -city vendor, award will be made to the City vendor if all factors, including price, quality, terms, and delivery are determined to be equal. 5.2.6 Bid Solicitations - The Purchasing Agent shall purchase products, commodities, and services in a manner that affords businesses a fair and equal opportunity to compete. 5.2.7 Adequate Competition - It is the responsibility of the Purchasing Agent to insure that an adequate selection of bidders is solicited for every purchase to achieve optimum competition. This responsibility includes selecting other advertising methods or sourcing mediums when sources may be limited. 5.2.8 Solicitation Time - Except as provided for under Section 3.1.2, the minimum time for solicitation of bids will usually be 14 calendar days. When special circumstances exist, the Purchasing Agent may lengthen or shorten the bid time. 5.2.9 Bid Opening - All competitively sealed bids shall be publicly opened on the time, date, and location specified in the solicitation. Bids shall be opened and read aloud in the presence of one or more witnesses. All bid openings shall be open to the public and interested parties. Bids must be received at the location specified on or before the scheduled opening time. The price, delivery, discounts, and product identification shall be a part of the record for each procurement, along with the name of each bidder. 5.2.10 One Bid Received - If only one responsive bid is received in response to an Invitation for Bids, an award may be made to the single bidder if the Purchasing Agent and Department Director concerned find that the price(s) submitted is fair and reasonable and that either (i) other prospective bidders had reasonable time to respond, or (ii) there is not adequate time for re- solicitation. Otherwise, the bid shall be rejected and new bids may be solicited. If new bids are solicited, the prices originally submitted shall not be released to the public in order to maintain the integrity of the procurement. If the Purchasing Agent and Department Director concerned determine that the price of the one bid is not fair R /Purch Policy /Purchasing Procedures 09/11/01 0 and reasonable, and that re- solicitation would likely -be futile, the proposed procurement may be cancelled. New specifications and modified IFB may be solicited. 5.2.11 Extension of Time for Bid or Proposal Acceptance -After opening of bids, the Purchasing Agent may, with the approval of the low bidder, extend the time during which the City may accept their bids. No other changes are permitted. The reasons for requesting such extensions shall be documented. 5.2.12 Bid Evaluation - All products or services shall be evaluated against the requirements stated in the City's solicitation. In addition to price, the following factors, if included in the IFB, may be considered in evaluating any bid response: delivery date, cash discounts, warranties (type /length), future availability of items and /or parts, results of product testing, local service, cost of maintenance agreements, future trade -in value or availability of re- purchase agreement, availability of training courses, financial terms, space limitations, esthetics, adaptability to environment, cost of operation (if any), safety and health features relating to regulatory codes or requirements. 5.2.13 Facsimile or E- Mailed Bids - Facsimile or e-mail transmissions to the Purchasing Office will not be accepted in the formal competitive bid process. 5.2.14 Withdrawal of Bid Prior to Bid Opening - Bidder may withdraw any bid if the bidder's representative appears at the Purchasing Office or if the Purchasing Agent receives a written request for withdrawal prior to the specified bid opening time and date. 5.2.15 Withdrawal of Bid after Opening but Prior to Award - No bid may be withdrawn or contract negated unless the bidder or contractor can establish by clear and convincing evidence, that the bid or contract contains substantial mistakes despite the exercise by the bidder or contractor of reasonable care. The test of reasonable care shall be that 1) the mistake relates to a material and substantial feature of the contract; and 2) the mistake occurred despite the exercise of reasonable care; and 3) withdrawal is deemed by the Purchasing Agent to be in the best interest of the City. 5.2.16 Documentation - All documents relating to the modification or withdrawal of bids shall be made part of the appropriate procurement file. 5.2.17 Minor Informalities /Irregularities in Bids - A minor informality or irregularity is one that is merely a matter of form and not of substance. It also pertains to some immaterial defect in a bid or variation of a bid from the exact requirements of the invitation that can be corrected or waived without being prejudicial to other bidders or the City. The defect or variation is considered immaterial when the effect on price, quantity, quality, performance, or delivery is negligible when contrasted with the total cost or scope of the services being acquired. If the Purchasing Agent determines that the bid submitted contains a minor informality or irregularity, then the bidder may be given an opportunity to cure any deficiency resulting from a minor informality or irregularity in a bid, or the deficiency may be waived, whichever is to the advantage of the City. In no event will the bidder be allowed to change the bid amount. Examples of minor informalities or irregularities include, but are not limited to, the following: (1) Bidder fails to return the entire bid package or the number of copies of signed bids required by the invitation for bid. (2) Bidder fails to sign the bid, but only if — the unsigned bid is accompanied by other material evidence, which indicates the bidder's intention to be bound by the unsigned bid. (Such as bid bond, or signed cover letter which references the bid number or title, and amount of bid). (3) Bidder fails to acknowledge an amendment — this may be considered a minor informality only if the amendment, which was not acknowledged, is insignificant and involves only a matter of form or has either no effect or merely a negligible effect on price, quantity, quality, performance, or delivery of the item or services bid upon. 5.2.18 Late Bids - Any bid, withdrawal or modification to bids received after time and date set for opening, shall be considered late and shall be rejected and returned unopened to the bidder, except as provided herein. All sealed competitive bids shall be opened as soon as possible after the time R /Purch Policy /Purchasing Procedures 09/11/01 10 designated by the Invitation. Bids received after the bid opening time shall not be opened, but shall be rejected as a late bid. The responsibility to insure that bid solicitations are obtained and that bids are received prior to the opening date and time rests with the bidder. Situations such as "flat tires, accidents, or parking problems" shall not be cause for acceptance of late bids. The Purchasing Agent may permit the following exceptions: (1) In the event of a public labor unrest (strike or work slow down) which actually effects mail delivery, the Purchasing Agent may develop and issue emergency procedures. (2) There is conclusive evidence that the bid was submitted to the office designated in the IFB, on time and was mishandled (i.e. lost or misplaced) by the Purchasing Department personnel responsible for handling /receiving bids. Mishandling by other units or offices of the City of Pueblo does not constitute Purchasing Department personnel. (3) The bid arrived late due to severe weather conditions or a national or local emergency situation. (4) It was the only bid received. 5.2.19 Public Notice - Invitations for Bids or notices of the availability of Invitations for Bids shall be mailed or otherwise furnished to a sufficient number of prospective bidders to secure adequate competition. For formal bids over $25,000, a public notice shall be published at least once in a newspaper of general circulation and /or in trade publications and secondary newspapers, at least 14 calendar days prior to the date for bid opening. Nothing shall prevent the Purchasing Agent from advertising or otherwise giving public notice in other media or locations to make certain that adequate competition is solicited. 5.2.20 Waiver of Public Notice - The Purchasing Agent may authorize the waiver of public notice for Bid Invitation believed to be in excess of $10,001 but less than $25,000 upon written determination that circumstances call for quick procurement action. Supplies or equipment may be needed promptly for backup to ensure against downtime; a significant price increase on a needed item may be imminent; or the scope of an ongoing task may be unexpectedly expanded. In these types of situations the Purchasing Agent will make special effort to obtain written competition or sealed bids, but may waive the publication of notice in the newspaper. 5.2.21 Pre -Bid Conferences - Pre -bid conferences or walk - throughs may be conducted for the purpose of explaining the procurement requirements and shall be announced in the Public Notice to all prospective bidders. The conference or walk- through shall be held long enough after the Invitation has been issued, to allow bidders to become familiar with it, but with adequate time before bid opening to allow consideration of the conference results in preparing the bid. The Pre -bid conferences may be mandatory if determined necessary to insure familiarity of the project prior to bidding by all bidders. Nothing stated at such conference shall change the Invitation for Bids unless the change is made by written amendment. 5.2.22 Addenda /Amendments to Invitations for Bids - Amendments to Invitations for Bids shall be identified as such and may require that the bidder acknowledge receipt of all amendments issued. The amendment shall reference the portions of the Invitation it amends. Amendments shall be sent to all prospective bidders known to have received an Invitation for Bids. Amendments shall be distributed within a reasonable time to allow prospective bidders to consider them in preparing their bids. If the time set for bid opening will not permit such preparation, to the extent possible the bid preparation time shall be increased in the amendment, or if necessary, by telephone and confirmed in the amendment. Questions received by prospective bidders concerning the Invitation for Bid, both technical and contractual in nature may be answered in the form of an amendment to allow all potential bidders to share the same information. 5.2.23 Receipt of Bids - Upon receipt, each bid shall be time - stamped by machine or by hand and shall be stored in a secure place until bid opening time. Bids shall not be opened upon receipt, R /Purch Policy /Purchasing Procedures 09/11/01 11 except those unidentified bids which may be opened for identification purposes and resealed in the presence of two witnesses. 5.2.24 Opening & Recording of Bids - A member of the Purchasing staff, in the presence of one or more witness(es), shall open bids publicly, at the time and place designated in the Invitation for Bids. The clock in the Purchasing Department will be used as the official clock for calling the time for bids. The name of each bidder, the bid price(s), and such other information as is deemed appropriate by the Purchasing Agent shall be read aloud or otherwise be made available. The record shall be available for public inspection and distribution. After award, all bids shall be open to public inspection except to the extent the bidder designates trade secrets or other proprietary data to be confidential. 5.2.25 Mistakes in Bids - When it appears from a review of the bid that a mistake has been made, the bidder should be requested to confirm the bid. Situations in which the confirmation should be requested include obvious, apparent errors on the face of the bid or a bid unreasonably lower than the other bids submitted. If the bidder alleges mistake, the bid may be withdrawn only if the provisions of Section 5.2.1(15) are followed. 5.2.26 Product Acceptability -The Invitation for Bids may require the submission of bid samples, descriptive literature, technical data, or other material necessary to determine product acceptability. The acceptability evaluation is not conducted for the purpose of determining whether one bidder's item is superior to another but only to determine whether a bidder's offering will meet the City's needs as set forth in the Invitation. Any bidder's offering, which does not meet acceptability requirements, will be rejected as non - responsive. 5.2.27 Determination of Lowest and Best Bid - Following determination of product acceptability, bids will be evaluated to determine which bidder offers the lowest and best bid in accordance with specifications. 5.2.28 Award - The purchase order /contract shall be awarded to the lowest and best bidder whose bid meets the requirements and the criterion set forth in the Invitation for Bids and is determined to be in the best interest of the City. If the lowest bid is not accepted as being the best, it must be approved by the Committee of Awards and the reasons stated and filed with the bids. The Committee of Awards may also reject all bids and terminate the solicitation or resolicit bids. 5.3 Request for Proposals (RFP) For Professional or Technical Services Requests for Proposals (RFP) is an objective method of contracting for professional or technical services whereby proposals are solicited from qualified contractors, following submission of which changes in proposals and prices are allowed. The offer deemed to be most advantageous in terms of criteria as designated in the RFP and determined by the Purchasing Agent and the Evaluation Committee to be in the best interest of the City may then be accepted. 5.3.1 Content - The RFP shall be prepared using the following sections: (1) Proposal Response Cover Sheet: This serves as an acknowledgement by the bidder that his /her proposal is made in good faith and is not founded on, or in consequence of, any collusion, agreement or understanding between themselves or any other interested party. The bidder further acknowledges that he /she offers to perform requested services on behalf of the City of Pueblo, in the manner described and subject to the terms and conditions set forth in the RFP and that services will be performed at the rates set forth in said proposal or as subsequently agreed to by the bidder and City following negotiations. (2) Section I — Advertisement for Request For Proposal: This section will include general information pertaining to the RFP. (3) Section II — General Proposal information: This section includes where to submit proposals, background and object of the RFP, how many copies, when they are due, information regarding amendments, basis of award and acceptance time period, insurance requirements, debarment, funding F: /Purch Policy /Purchasing Procedures 09/11/01 12 requirements, evaluation process, the evaluation criteria and its order of importance, how the proposals will be evaluated, and any other information as it pertains to the RFP. (4) Section III — Scope of Service: This section includes a detailed description of the services that the potential offeror will perform for the City during the term of the agreement. (5) Section IV — Proposal Response Requirements: This section includes a list of the requirements a potential offeror must address and include in his proposal. (6) Section V — Attachments /Exhibits/Terms and Conditions: This section includes attachments such as sample evaluation score sheets, drawings, sketches, sample contract, special instructions, insurance requirements, etc. 5.3.2 Evaluation Process - The Request for Proposal evaluation process shall be conducted as a fair and objective process, which requires the Evaluation Committee to evaluate all proposals on the specific criteria in the RFP. (1) An Evaluation Committee shall be established to review all proposals. Members will be selected by the requiring department and the Purchasing Agent. Committee Members shall score each proposal individually and independently; however, group discussions are encouraged to discuss technical views to arrive at a better understanding of technical proposals during the evaluation process. The results of the scoring by the evaluating committee shall be totaled to determine the overall highest rated proposal. The highest rated proposal shall then be forwarded to the requesting department with the Committee's recommendation. (2) The Request for Proposals shall clearly define all evaluation factors including price. Numerical rating systems and /or weights may be used. Factors not specified in the Request for Proposals shall not be considered. Evaluation Committee selection for the award shall be conclusive based on scoring criteria as specified in the RFP. (3) If interviews are part of the evaluation criteria, the RFP must contain language that allows for them and how they will be scored prior to conducting them. (4) Best and Final Offers shall be requested at the conclusion of discussions, if discussions are determined necessary. (5) Upon the selection of the proposal that best fits the needs of the City, all offerors shall be notified as to whether or not they were selected. 5.3.3 Proposal Preparation Time - Proposal preparation time should be set to provide offerors 30 calendar days under normal circumstances to prepare and submit their proposals. The Purchasing Agent may modify this requirement to require fewer days on less complicated proposals, but in no event will the period be less than 14 calendar days. 5.3.4 Public Notice - Same as IFB - Section 5.2.19 5.3.5 Pre - Proposal Conference - Pre - proposal conferences may be held. Any such conference should be held a minimum of 7 calendar days prior to the submission of initial proposals. 5.3.6 Amendments to RFP - Amendments to Requests for Proposals may be made in accordance with "Amendments to Invitation for Bids" under Section 5.2.1(22) prior to submission of proposals. After submission of proposals, any amendments shall be distributed to all offerors who submitted proposals. 5.3.7 Modification or Withdrawal of Proposal - Proposals may be modified or withdrawn by an offeror prior to the established due date and time. F: /Purch Policy /Purchasing Procedures 09/11/01 13 5.3.8 Receipt of Proposals — the time, date, and location for receipt of proposals will be included in the RFP and may read a specific time or "close of business" on a certain date. If a specific time is cited, proposals must be received by the time specified. If "close of business" is cited, proposals may be accepted at any time during business hours on the date specified. 5.3.9 Late Proposals - Late proposals shall be handled in the same manner as "Late Bids" under Section 5.2.18. 5.3.10 Only One Proposal Received -If only one proposal is received in response to a Request for Proposal (RFP), the Evaluation Committee has the following options: (1) Determine if there was sufficient time allotted for offeror to submit a proposal (if not, the solicitation may be amended to extend the receipt of proposal date and the only proposal received shall be returned unopened to the only offeror). (2) Proceed with the evaluation of the proposal from the single offeror; if the offer meets the requirements of the City as stated in the RFP, and the cost is determined to be fair and reasonable through negotiations, an award may be made. (3) Determine that the only offeror does not meet the City's needs, or negotiations of the cost do not result in fair and reasonable price, then the solicitation may be cancelled and resolicited at a later date. 5.3.11 Proposal Discussions with Individual Offerors - Discussions are held to promote understanding of the City's requirements and the offeror's proposal, to facilitate arriving at a contract that will be most advantageous to the City taking into consideration price and the other evaluation factors set forth in the Request for Proposals. Offerors determined to be within competitive range shall be accorded fair and equal treatment with respect to any opportunity for discussion and revisions of proposals, and prior to award, for the purpose of obtaining best and final offers. Auction techniques or disclosure of any information derived from competing proposals are prohibited. Any substantial oral clarification of a proposal shall be reduced to writing by the offeror. 5.3.12 Mistakes in Proposals - When it appears from a review of the proposal before award that a mistake has been made, the offeror should be asked to confirm the proposal. If the offeror alleges mistake, the proposal may be corrected or withdrawn in accordance with rules governing mistakes in bids. 5.3.13 Award of Contract -Award shall be made to the responsible offeror whose proposal is determined to be most advantageous to the City, and in the best interest of the City, based on the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation. The Evaluation Committee shall make that determination, or may make such a recommendation to the requesting department. The contract file shall contain the basis on which the award is made. 5.3.14 Debriefing Unsuccessful Offerors - If requested, an offeror shall be debriefed and furnished the basis for selection and award of the contract. Debriefings shall include the following information: (1) Copies of the offeror's evaluation score sheets showing the strength and weaknesses of their proposal as evaluated by the Committee. (2) The overall evaluated cost and technical rating of the winning offeror. (3) The overall ranking of all offerors. (4) A summary of the rationale for award. (5) Answer any relevant questions about the process the offeror may have. F: /Purch Policy /Purchasing Procedures 09/11/01 14 (6) Providing point -by -point comparisons of the debriefed offeror's proposal with those of other offerors, or any items listed in other offerors proposals that may be marked confidential or proprietary is prohibited. 5.4 Sole Source Procurement Justification for a sole source purchase depends upon a needed item being available from only a single supplier under prevailing conditions and approved in advance by the Purchasing Agent. If the item may be obtained from more than one source, competitive bidding shall be solicited. Sole source purchase requirements may arise from a number of circumstances including, but not limited to: (1) The purchase of technical equipment for which there is no competitive product, and which is available only from one supplier. (2) The purchase of a component or replacement part, for which there is no other commercially available source. (3) The purchase of an item where compatibility is an overriding consideration. (4) The purchase of a particular product for trial or testing. (5) The use of other than warranty parts would void a still valid warranty. 6.0 Contracts for City Improvements Any City improvements except those performed directly by a City department or in special or local improvement districts shall be contracted for pursuant to Section 7 -32 of the City Charter. Before any part of the bid process begins for any city improvements, an Authorization for Public Improvement Projects form (attached hereto as Exhibit C) must be filled out and presented to Public Works Director along with background documents. Once this form is approved, it should be presented to the Purchasing Agent to be assigned a project number. Procurements relating to contracts for City improvements shall be made and awarded as provided in Charter 10 of Title I of the Pueblo Municipal Code. Contractors shall not commence work under any City Improvement Contract until they have met all requirements of Article 3 — General Provisions, Section 3.22, of the approved City Contract Agreement as it applies to Indemnity and Insurance. F: /Purch Policy /Purchasing Procedures 09/11/01 EXHIBIT A UNIT SPECIFICATION CHECK LIST AND COST ONLY REPLACEMENT: No Yes, For Unit # SPECIAL /HEAVY MOBILE EQUIPMENT Give a brief description of the vehicle or equipment type, model, job requirements and any special information that will be helpful in giving the Fleet Manager's Office an idea of what type heavy /special mobile equipment is required (backhoe, tamper, trailer, loader, coal moving equipment, tractor, etc.): EXTRA EQUIPMENT TO BE MOUNTED AFTER UNIT IS RECEIVED Spotlights: How Many? Hand -held Remote Post -Mount Revolving Lights: How Many? Permanent Magnetic Bar Cross boxes (tool boxes): What Size? Electric Emergency Breakaway Kit (Trailers Only) Pintle Hooks: Heavy Duty Regular Duty Trailer Brake Controller: Yes No Trailer Plug: Yes No Other: (Use Separate Sheet Attached Hereto) Other Required Equipment Not Listed: Give a brief description of items: ESTIMATED LABOR COST (To be Completed by Fleet Maintenance) $ TOTAL UNIT COST $ Person requesting this cost estimate: Phone Number: Authorized by: Fleet Maintenance Date City Manager Date Request to Purchase Non - standard Computer Hardware, Software, Network, Wireless, or Peripheral Items EXHIBIT B Instructions: Answer the questions below and send this form to the Department of Information Technology. Enter "NIA" if the question is not applicable. This form is not necessary if the desired item is listed within the City's Information Technology standards document. 1. General Information: Date Item Manufacturer or vendor Purpose of this item. Why is a non - standard item necessary? Department Department Head Signature 2. Compatibility The City has expended substantial resources to maintain compatible hardware, software, network equipment, wireless, and peripheral devices. Implementing non - compatible solutions can undercut the City's strategy of integration. Briefly describe this item's compatibility with the City's HTE software, PC hardware and software, server architecture, and the City's network Has an HTE solution been investigated or considered? How will compatibility issues be addressed? _ Does the vendor offer to guarantee current and future compatibility, such as compatibility with future versions of Windows or Office? For PC hardware and software: How has compatibility with the City's supported hardware and software been confirmed? 3. Security There are hardware, software, network and wireless items that can compromise the security of the City's network and data Is this item to be on the City's network and, if so, how will it be secured? (is password protection applicable ?) Can the item be accessed by any auxiliary means, such as a telephone line? If so, how would the security of other items on the network be ensured? 4. Technical Support for this item: "Support" can encompass repair and otherwise correcting malfunctions in a timely fashion administration — setting up user privileges, creating backup copies of data, answering technical questions and usage questions, providing training as necessary As this item is not currently supported by the Department of Information Technology, what will the provisions for support be? 5. Reviewed and Authorized By: Director of Information Technology Date: EXHIBIT C Project Number: (Assigned by Purchasing Dept. after approval) Bid Opening Date: Bid Opening Time: DEPARTMENT OF PUBLIC WORKS AUTHORIZATION FOR PUBLIC IMPROVEMENT PROJECTS Pursuant to City Charter, projects for all City improvements shall first be approved by the Department of Public Works, be competitively bid through the Purchasing Department, and then awarded to selected bidder. Prior to advertising an Invitation to Bid, the Director of Public Works must approve all project documents (i.e. advertisement for bid, specifications, general provisions, drawings. etc.) as to form. Project Name: Requesting Department: Contact Person: Architect (if applicable): Date Submitted for Approval: Approval Needed within days Public Works Engineer project assigned to: The attached contract documents for the referenced Project have been reviewed for form and are hereby approved for bidding: Tom Cvar, P.E., Director of Public Works NOT APPROVED: Date: If not approved, please specify the reasons and what corrective measures must be taken by the Requesting Department before being approved. PURCH - G: \Forms \Public Works Auth Form.doc : 09/06/2001