§ 406. Competitive process required.

All purchases of and contracts for supplies, services, and information technology systems, except for petty expenditures covered by Section 405 and sole source acquisitions covered by Section 414, shall be made using a competitive process as defined herein. The most stringent competitive process that will achieve the City's objectives shall be used as determined by the Purchasing Agent. For all competitive processes except for the request for quote, a written statement of the reasons for not using a more stringent competitive process in a particular acquisition shall be approved by the Agent, and filed with the office of the City Clerk.

A.

Request for Quote. The request for quote process may be used for the acquisition of supplies or services when the City's objectives will be achieved by use of such process.

1.

Criteria. The value of the supplies or services to be obtained through this process must have an estimated cost of less than Twenty-Five Thousand Dollars ($25,000.00).

2.

Procedure. A request for quote shall be based on competitive quotations as set forth below, and shall be awarded to the lowest secure bidder, as defined herein. The request for quote is informal, and can be made without newspaper advertisement and without the requirement for the execution of a formal contract. Upon approval by the Agent, or his designee, a purchase order shall be issued for these purchases.

a.

Minimum Number of Bids. The Agent, or his designee, shall make at least four (4) requests by e-mail, fax, telephone or online inquiry for competitive quotations with at least one (1) such request to be made to an individual or company in the bidder database that is registered with the City as a minority owned, women owned, or disadvantaged business enterprise for the commodity code or item being purchased, if such individual or company exists in the database.

b.

Recording. The Agent, or his designee, shall keep a record of all requests for quotes and the quotes submitted in response thereto, and such records shall be open to public inspection at all reasonable times.

B.

Invitation for Sealed Bid. The invitation for sealed bid process shall be used for each acquisition in which the City's objectives will be achieved by such process. Supplies and contractual services are generally acquired through the sealed bid process.

1.

Criteria. The following conditions typically warrant utilization of an invitation for sealed bid.

a.

Specifications for the supplies and contractual services can be adequately detailed in advance, in the invitation for bid.

b.

A satisfactory number of potential bidders exist in the market which can comply with these specifications.

c.

It is not necessary to negotiate with a selected bidder in order for the City's objectives to be met.

2.

Procedure. Competitive sealed bids shall be solicited from all prospective bidders who have registered in the bidder database for the items included in the acquisition. The requirements for competitive processes set forth in Section 407 shall apply to invitations for sealed bid.

a.

The following restrictions shall apply to an invitation for sealed bid:

1.

No negotiation of material aspects of a bid is allowed.

2.

Except in the case where a valid basis for such correction is evident from the bid submitted, no alteration or correction of the bid shall be allowed.

3.

Bids shall be evaluated based on the specifications set forth in the invitation for sealed bids.

C.

Two-Step Sealed Bid. If the City's objectives will not be achieved through an invitation for sealed bid process, then a two-step sealed bid process shall be used for the acquisition, if the use of such process will achieve the City's objectives. The two-step sealed bid process may be used for acquisitions including, but not limited to, information technology systems and contractual services.

1.

Criteria. The following conditions typically warrant utilization of a two-step sealed bid process:

a.

It is advantageous to the City to prequalify potential bidders and/or it is difficult for the City to develop adequate specifications for the acquisition or to specify the best method for achieving the desired result without the input of potential bidders.

b.

It is advantageous to the City to evaluate technical offers to determine their acceptability to fulfill the procurement specifications before soliciting sealed priced bids.

c.

It is advantageous to the City to conduct discussions for the purpose of facilitating understanding of the technical offers and procurement specifications and, where appropriate, to obtain supplemental information, permit amendments to technical offers and/or to amend the procurement specifications.

2.

Procedure. Except as provided herein, the requirements for competitive processes set forth in Section 407 shall apply to the two-step sealed bidding process:

a.

The two-step invitation for bid shall state:

1.

That unpriced technical offers are requested;

2.

That it is a two-step sealed bid procurement, and priced bids will be considered only in the second step and only from those bidders whose unpriced technical offers are found acceptable in the first step;

3.

The criteria to be used in the evaluation of the unpriced technical offers;

4.

That the City may conduct oral or written discussions with bidders; and

5.

That priced bids must be submitted at the time they are requested by the Agent, or his designee.

b.

After receipt of the unpriced technical offers, amendments to the invitation for bids shall be distributed only to bidders who submitted acceptable unpriced technical offers, and they shall be permitted to submit new unpriced offers or to amend those unpriced offers previously submitted.

c.

Unpriced technical offers shall not be disclosed publicly but shall be opened in front of at least two (2) City employees, one (1) of whom shall be the Agent, or his designee. Notwithstanding the foregoing, bidders names may be announced at a public bid opening meeting.

d.

The unpriced technical offers submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the invitation for bids.

e.

The Agent, or his designee, may initiate step two of the process if, in the Agent's opinion, there are sufficient acceptable unpriced technical offers to assure effective price competition in the second step without technical discussions. If not, the Agent, or his designee, may issue an amendment to the invitation for bids or may conduct discussions, including requesting supplemental information, with any bidder submitting an acceptable technical offer.

f.

Upon completion of the technical discussions, if any, the evaluation of any supplemental information submitted and the final determination of the acceptable bidders, the Agent, or his designee, shall invite each acceptable bidder to submit a priced bid. No public notice of this invitation to submit bids shall be required because notice was previously given.

D.

Competitive Sealed Proposal. If the City's objectives will not be achieved through an invitation for sealed bid or a two-step sealed bid process, then a competitive sealed proposal process shall be used for the acquisition, if the use of such process will achieve the City's objectives. The competitive sealed proposal process may be used for acquisitions including, but not limited to, information technology systems, professional services, and financial services.

1.

Criteria. The following conditions typically warrant utilization of a competitive sealed proposal:

a.

It is advantageous to the City to conduct oral or written discussions with bidders, after proposals are received, concerning technical and price aspects of the proposals and/or to allow bidders to revise their proposals, including price;

b.

It is advantageous to the City to evaluate, after proposals are received, the relative abilities of bidders to perform, including their technical or professional experience and/or expertise;

c.

It is advantageous to the City to conduct a comparative evaluation, after proposals are received, of the differing price, service, quality, contractual factors, technical content and/or technical and performance capability of the proposals;

d.

It is advantageous to the City to negotiate mutually agreeable terms in a contract;

e.

It is advantageous to the City to conduct a comparative evaluation of the artistic and aesthetic merits of the proposals with price being a secondary consideration.

2.

Procedure. Except as provided herein, the requirements for competitive processes set forth in Section 407 shall apply.

a.

In addition to describing the specifications of the proposal, the solicitation shall state the relative importance of price and other evaluation factors.

b.

The solicitation shall notify potential bidders that discussion may, or may not, be conducted with responsible bidders who submit proposals determined to have a reasonable probability of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements.

c.

Revisions to the proposals may be permitted after submissions and prior to the award for the purpose of obtaining best and final offers.

d.

There shall be no disclosure of any information derived from proposals submitted by competing bidders until an award has been made and a contract executed.

e.

Negotiation with the selected bidder to arrive at mutually agreeable contract terms, except for price, is allowed.

E.

Request for Proposal. If the City's objectives will not be achieved through an invitation for sealed bid, a two-step sealed bid, or a competitive sealed proposal process, then a request for proposal process shall be used for the acquisition, if the use of such process will achieve the City's objectives. The request for proposal process may be used for acquisitions including, but not limited to professional services and financial services.

1.

Criteria. The following conditions typically warrant utilization of a request for proposal:

a.

If the ability to consider proposals with a variety of different proposed solutions and pricing models is the most likely way to meet the City's objectives.

b.

Where qualitative factors overall outweigh cost in terms of importance. Qualitative factors include but are not limited to: Bidder qualifications and experience; creativity of the approach proposed; and availability of resources and capabilities to meet the specifications of the request for proposal.

c.

Where the ability to select a bidder based on these qualitative factors, and then to negotiate contract terms including price with the selected bidder is necessary to meet the City's objectives.

2.

Procedure. Except as provided herein, the requirements for competitive processes set forth in Section 407 shall apply.

a.

The content of proposals shall not be disclosed until a contract with the selected bidder is executed.

b.

The Agent, or his designee, may negotiate with the selected bidder on price and other contract terms, in order to meet the City's objectives.

F.

Auction and Reverse Auction. Each competitive process set forth herein may include an auction, or reverse auction, as a step in the process.

(Ord. No. 22529, § 1, 9-29-2011)