HomeMy WebLinkAboutN-470 - Purchasing Policy and ProceduresAdministrative Order No. 470
Purchasing Policy and Procedures
Effective Date: October 1, 2018
Amendments:
TABLE OF CONTENTS
ADMINISTRATIVE ORDERS....................................................................................................1
PURCHASING AUTHORITY MATRIX.............................................................................. 2-3
SUMMARY OF COMPETITIVE REQUIREMENTS BY PROJECT TYPE/COST ....... 4-5
SECTION 1— INTRODUCTION
1.1
Purpose of the Policy..............................................................................................6
1.2
Contact Information.................................................................................................6
1.3
Code of Ethics (RCW 42.23)..............................................................................
6-7
1.4
Conflict of Interest...................................................................................................7
1.5
Unauthorized Purchases...........................................................................................8
1.6
Contracting 101....................................................................................................
8-9
1.7
Responsible Purchasing...........................................................................................9
1.8
What this Policy Covers.........................................................................................10
1.9
Define the Need...............................................................................................
10-11
1.10
Determine the Cost..........................................................................................11-12
1.11
Determining Contract Value............................................................................12-13
1.12
Exceptions to the Competitive Process for Contracts for Public Works
and Contracts for Purchases.............................................................................13-14
1.13
Urgent Need or Emergency.............................................................................14-15
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2.1 Initiate a New Procurement...................................................................................16
2.2 Small Purchases of Goods and Services................................................................17
2.3 State Contracts or Other Cooperative Purchasing Agreements .......................17-18
2.4 Large Purchases for Materials, Supplies and Equipment ................................ 18-20
2.5 Vendor List — MRSC Roster..................................................................................20
2.6 Telecommunications and Data Processing Purchasing .................................... 20-21
SECTION 3 — PUBLIC WORKS PROCUREMENT
3.1 Requirements Applicable to all Public Works Bidding Methods .................... 21-22
3.2 Public Works Performed by City Staff— In -House Work.....................................22
3.3 Public Works..........................................................................................................22
3.4 Limited Public Works — Small Works Roster Under $35,000 ......................... 23-24
3.5 Public Works — Small Works Roster Between $35,000 and $300,000 ........... 24-26
3.6 Public Works — Formal Bid Process Over $300,000 ....................................... 27-29
3.7 Purchases of Equipment Including Installation ............................................... 29-30
i
SECTION 4 — ALTERNATIVE PUBLIC WORKS CONTRACTING
4.1 Job Order Contracting............................................................................................30
4.2 Performance Based Contract for Energy Equipment.............................................30
4.3 Design Build Procedures........................................................................................31
4.4 General Contractor/Construction Manager Procedures.........................................31
SECTION 5 — BID OPENING PROCESS
5.1 Bid Opening Process........................................................................................ 31-34
5.2 No Bids or Non-Responsive/Responsible Bids for Submittals ........................ 34-36
SECTION 6 — SERVICE PROCUREMENT
6.1 Purchases of General Services......................................................................... 36-37
6.2 Purchases of Professional Services.................................................................. 37-38
6.3 Purchases of Architects and Engineering Services .......................................... 38-41
6.4 RFPs and RFQs................................................................................................ 41-43
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7.1 Prevailing Wages............................................................................................. 43-45
7.2 Retainage................................................................................................................45
7.3 Risk Management Considerations................................................................... 45-46
SECTION 8 — THE CONTRACT AND BEYOND
8.1 The Contract and Beyond................................................................................ 46-47
8.2 Payment Options..............................................................................................47-48
8.3 Contract Execution and Administration........................................................... 48-49
8.4 Contract Monitoring — Performance................................................................ 49-50
8.5 Contract Monitoring — Payment.............................................................................50
8.6 Amendments and Change Orders.................................................................... 51-52
8.7 Contract Close -Out and Termination............................................................... 52-53
TIPS & FAQS .....
SOURCES AND TERMS.........
APPENDIX A — COOPERATIVE PURCHASING AGREEMENTS
APPENDIX B — SOLE SOURCE WORKSHEET ............................
SOLE SOURCE WORKSHEET ........
ii
CITY OF PASCO
ADMINISTRATIVE ORDERS
Administrative Order No. 470
Finance
Subject: Purchasing Policy and Procedures
Initial Effective Date:
October 1, 2018
Revised
Ap roved
I. PURPOSE:
This edition of the Purchasing Policy and Procedures Manual is dated October 1, 2018
and supersedes all purchasing directives. All references to the Revised Code of
Washington (RCW) and/or City Ordinances and Resolutions shall be incorporated as part
of this policy including all future amendments.
hi cases where these policies conflict with any City Ordinance, State or Federal law or
regulations, the terms of that law or regulation prevails. In all other cases, these policies
apply.
II. DEPARTMENTS AFFECTED:
All
Approved:
4.100 —ii[sI
r�
Date
Page 1
PURCHASING AUTHORITY MATRIX
Public Works
Dollar Amount
Less than $50,000
Authorit.N
Department Head, as long as there is
budget capacity
$50,000 - $299,999
City Manager, as long as there is
State Contracts
budget authority
$300,000 and above
City Council approval
Public Works — Limited
Less than $50,000
Department Head, as long as there is
Public Work Process
budget capacity
OR
$50,000 - $299,999
City Manager, as long as there is
Public Works — Small
budget authority
Works Roster
Public Works — Formal
Bid Process
$300,000 and above
City Council approval
Large Purchases for
Less than $50,000
Department Head as long as there is
budget capacity
Materials, Supplies and
Equipment including
$50,000 - $299,999
City Manager, as long as there is
installation
budget authority
$300,000 and above
City Council approval
Less than $50,000
Department Head as long as there is
budget authority
Purchases of
Professional Services
$50,000 - $299,999
City Manager, as long as there is
budget authority
$300,000 and above
City Council approval
Less than $50,000
Department Head as long as there is
Purchases of
budget authority
Architectural and
$50,000 - $299,999
City Manager, as long as there is
Engineering
budget authority
$300,000 and above
City Council approval
Less than $50,000
Department Head as long as there is
bud et authority
Purchases of General
Services
$50,000 - $299,999
City Manager, as long as there is
budget authority
$300,000 and above
City Council approval
Page 2
PURCHASING AUTHORITY MATRIX (continued)
Amendments and
Change Orders
DollarAniount
Authoritv
5% of the original contract
award or an accumulated total
Department Head
of $50,000, whichever is less
Contract
Amendments
OR
Up to $299,999 or 10% of the
City Manager, as long as there is
original contract, whichever is
budget authority
Change Orders
less
Over $300,000 or more than
City Council approval
10% of the original contract
All purchases in excess of $100.000, not initially approved by the City Council, shall be
reported to the City Council via the monthly Finance Report.
Page 3
Summary of Competitive Requirements by Project Type/Cost
Project Type
Single Trade
Contract Value
Competitive Process
Requirement
< $40,000
In House Public
or Craft
May construct with city
Works Projects
forces without calling for
Multiple
bids or quotes.
Trade or Craft
< $65,000
May construct by contract
Single Trade
< $40000
without calling for bids or
or Craft
,
obtaining quotes via the
Small Contracted
small works roster.
Public Works Projects
Retainage and
Multiple
Trade or Craft
< $65,000
performance/payment bond
are required for contracts
eater than $35,000.
Solicit electronic or written
quotations from a minimum
of three contractors from the
Limited Public Works Projects
< $35,000
small works roster.
Retainage and
performance/payment bond
can be waived.
Quotations shall be solicited
from at least five contractors
on the appropriate small
works roster in a manner that
>$35,000
will equitably distribute the
Small Public Works Roster Projects
$300,000
opportunity among the
contractors.
Retainage and
performance/payment bond
are required.
Public notice and call for
sealed bids; Formal award.
Competitively Bid Public Works
> $300,000
Projects
Retainage and
performance/payment bond
are required.
Page 4
Purchases of supplies, material and
$7,500
Three quotes
$7,500-
Minimum of three quotes
equipment unrelated to a public
works project. (A competitive
$15,000
from approved vendor list.
negotiation process may be used as an
alternative to bidding for computer and
> $15,000
Public notice and call for
telecommunications equipment, software
sealed bids required.
and related services.)
Review qualifications of
< $20,000
firms on the consulting
services roster and select
most qualified.
Review qualifications of
Purchase of A&E, surveying or
firms on the consulting
landscape architecture services.
services roster and select
$20,000-
three -six most qualified firms
Selection based on review of
$50,000
and invite proposals.
qualifications first, then negotiations to
arrive at a price that is deemed fair and
Select most qualified firm
reasonable to the City.
using proposals.
Publish RFQ, select three -six
firms to submit proposals.
> $50,000
Review proposals, hold
interviews, select most
qualified firm.
Three quote process for
contracts $10,000-$20,000,
and RFP/RFQ process for
contracts $20,000450,000,
Purchases of All Other Services
All contracts
and a formal advertised
RFQ/RFP process for
contracts >$50,000;
<$10,000 no competitive
process is required.
Page 5
1. INTRODUCTION
1.1 PURPOSE OF THE POLICY
The Purchasing Policy and Procedures Manual is provided to guide and assist City staff on basic
procurement and contracting requirements as set forth in the Pasco Municipal Code and
Washington State statutes.
This Policy establishes guidelines and clarifies the procedures for purchasing supplies and
materials, public works construction, and contracting for services by the City of Pasco. The
procedures set forth in subsequent sections of this manual are designed to assure the citizens, the
City Council and City administrative staff that the City of Pasco is receiving maximum value for
each tax, public or utility dollar expended and assure fiscal responsibility in the procurement
process.
This edition of the Purchasing Policy and Procedures Manual is dated October 1, 2018 and
supersedes all purchasing directives. All references to the Revised Code of Washington (RCW)
and/or City Ordinances and Resolutions shall be incorporated as part of this policy including all
future amendments.
In cases where these policies conflict with any City Ordinance, State or Federal law or
regulations, the terms of that law or regulation prevails. In all other cases, these policies apply.
1.2 CONTACT INFORMATION
Position Responsibility
Finance Director...................................................................................... Fiscal Control and Budget
Grant/Project Accountant ...................................................... Grants and Capital Improvement Plan
Public Works Contracts Administrator ................... Small Works/Contracts/Prof Svcs Agreements
City Clerk...................................................................................... Agreements and Other Contracts
Accounts Payable............................................................................ Accounts Payable and Vendors
Procurement Officer ............................................... Control Purchasing and Department Assistance
1.3 CODE OF ETHICS (RCW 42.23)
"Public employment is a public trust. "
The public must have confidence in the integrity of its government. The purpose of this Code of
Ethics is to give guidance to all employees and elected officials so that they may conduct
themselves in a manner which will be compatible with the best interest of themselves and the
City of Pasco.
It is essential that those doing business with the City observe the following guiding ethical
standards:
A. Actions of City employees shall be impartial and fair.
Page 6
B. The City will not accept donations of materials or services in return for a commitment to
continue to initiate a purchasing relationship.
C. City employees may not solicit, accept, or agree to accept any gratuity for themselves,
their families or others that would or could result in personal gain. Purchasing decisions
must be made impartially in the best interest of the City. Items complying with RCW
42.52.150 are not considered gratuities if they do not exceed an aggregate value in excess
of fifty dollars ($50.00) during any calendar year.
1) Such items include:
(a) Unsolicited flowers, plants and floral arrangement.
(b) Unsolicited advertising or promotion items of nominal value such as pens
and notepads.
(c) Unsolicited tokens or awards of appreciation in the form of a plaque,
trophy, desk item, wall momentum, or similar items.
(d) Food and beverage consumed at hosted receptions where the attendance is
related to the employee's official duties.
(e) Admission to and the cost of food and beverage consumed at events
sponsored by or in conjunction with the civic, charitable, governmental, or
community organization.
(f) Discounts or concessions routinely available to the general population.
(g) Items received which to not result in personal gain such as samples to the
City which are used for general City use.
2) The following are examples of items not considered gratuities:
(a) Discounts or concessions routinely available to the general population;
(b) Items received which do not result in personal gain; Samples to the City
which are used for general City use.
1.4 CONFLICT OF INTEREST
No City staff or council member may undertake consulting, professional practice or other
assignments which would result in a conflict of interest. Any employee of the City who
recommends or approves a purchase and who has any financial interest in the firm involved in
the purchase shall disclose his or her interest in the fine prior to recommending or approving the
purchase.
Page 7
1.5 UNAUTHORIZED PURCHASES
PURCHASES FOR PERSONAL USE ARE NOT ALLOWED. An employee ordering an
unauthorized and unjustified purchase, use of a City credit card, or City credit account shall be
personally liable for the costs of the purchase or contract and subject to reimbursement of all
City costs and disciplinary action, up to and including termination of employment. Purchases
made without proper authorization, but that are otherwise appropriate under this policy, may be
approved by the Department Head or other authorized approving authority under this Policy,
after the fact. The employee may be subject to reimbursement at the City's costs and discipline
for purchases without property authorization.
1.6 CONTRACTING 101
A contract is basically an agreement between two or more people to do something for some
value. There is an offer acceptance and exchange of consideration or value. In a public
purchasing context, a contract is an agreement by a vendor to provide goods or services to the
City in return for receiving payment from the public agency. The following is the basics for
entering into a contract:
A. The Invitation:
1) A solicitation (Invitation to Bid — ITB; Invitation for Qualifications — ITQ; and
Request for Proposal - RFP/or Request for Qualifications — RFQ) is an invitation
to a contractor to make an offer.
2) Invitations are most often directed at multiple parties and outline the needs of the
City.
B. The Offer:
1) The contractor's returned quote/bid/proposal is their offer to the City to perform
the work outlining what and how much.
2) The offer shows that the contractor is willing to agree to specific terms.
3) The offer is given to a particular party.
4) The Contractor has made an offer to do what the City requested for a specific
price.
C. The Acceptance:
1) The City must now accept one of the offers.
2) The acceptance is a communication showing agreement to the exact terms of the
offer or a contract.
3) A contract requires an offer and acceptance.
Page 8
4) Contracts must show that the offer made by the contractor has been accepted.
5) There are two ways to accomplish this. Include in the contract:
(a) City's Scope and Contractor's quotelbid, or
(b) If only using contractor's quote/bid, include the following: "The terms of
this [quote/proposal] are mutually acceptable to the City and Contractor
and are hereby incorporated by reference into this Agreement as the Scope
of [Work/Service]."
1.7 RESPONSIBLE PURCHASING
The City shall acquire its goods and services in a manner that complies with all federal, state,
City laws, and other requirements (e.g., City resolutions). The City shall purchase and use
materials, products and services which are fiscally responsible, reduce resource consumption and
waste, perform adequately, promote opportunities to lesser -advantaged segments of our
community and promote human health and well-being when possible.
A. Environmental factors to consider in selecting products include:
1) Waste generation.
2) Recycled content.
3) Energy consumption.
4) Potential impact on human health and the environment.
B. Social equity factors that should be considered include, but are not limited to:
1) Use of local businesses.
2) Use of small, minority and women -owned businesses.
3) Ergonomic and human health impacts.
C. Fiscal factors to be considered include but are not limited to:
1) Lowest total cost.
2) Leveraging our buying power.
3) Impact on staff time and labor.
4) Long-term financial/market changes.
5) Technological advances in a rapidly changing market.
Page 9
1.8 WHAT THIS POLICY COVERS
The process of selecting vendors and managing contracts shall embody the value of stewardship
of public resources by providing the greatest levels of both quality and value.
A. The goals are to ensure that the purchase process:
1) Creates open and fair competition.
2) Includes terms and conditions required to protect the City.
3) Meets ethical standards.
B. From Beginning to End Before any purchase of goods or services is made; the following
questions should be answered:
1) Define the need — What kind of purchase is this?
2) Determine the cost — How much will this cost?
3) Process — Is this a project or purchase?
4) Protecting the City — How to properly protect the City from liability?
5) Authority — Who has to approve it?
6) Contract Administration — What are the responsibilities of the contract
administrator?
1.9 DEFINE THE NEED
The first question that should be answered is what type of transition is it? Is it a project or
purchase? The major categories include:
A. Public Works: (RCW 39.04.010). "Public work" means all work, construction,
alteration, repair, or improvement other than ordinary maintenance, executed at the cost
of the City" (RCW39.04.010)
1) Examples: demolition, remodeling, renovation, and repair of road construction,
building construction, and utilities construction. Any construction of repair of a
City facility is presumed to be a public works project and subject to its bidding
requirement unless it is ordinary maintenance, exempt, with the purchase of
materials, supplies, and equipment not used in connection with the public work or
services.
2) Maintenance. Ordinary maintenance is defined as work not performed by
contract and that is performed on a regularly scheduled basis to service, check or
replace items that are not broken; or work not performed by contract that is not
Page 10
regularly scheduled but is required to maintain the assets so that repair does not
become necessary (WAC 296-127-010).
3) For purposes of prevailing wage requirements, public works includes ordinary
maintenance when performed by contract.
4) Exempt Projects and Purchases. Certain purchases that may otherwise be public
works projects are exempt by State law, which include: (1) solid waste collection
and disposal services; (2) pollution control equipment; (3) janitorial services; and
(4) contracts for the official newspaper.
B. Materials. Supplies and Equipment. Materials, supplies and equipment not used in
connection with a public works project are considered tangible items which are
manufactured and are moveable at the time of purchase. It is important to distinguish
between materials, supplies and equipment used in public works contracts as opposed to
non-public works contracts as different bidding requirements apply to each.
1) Examples: office supplies, off the shelf software, hardware, trucks, copy
machines, auto parts, gravel, janitorial supplies, and electronic data processing
and telecommunication equipment which is subject to competitive negotiation.
C. Services. Distinguishing between services and public work is also important, as services
may also have different bidding requirements. Services include the labor, time or effort of
a human being. The City has three classifications of services:
1) Professional Services. Services provided by independent consultants that require
specialized knowledge, advanced education, professional licensing or certification
and where the primary service provided is mental or intellectual, involving the
consistent exercise of judgment and discretion.
(a) Examples: accountants, attorneys, consultants, graphic artists.
2) Architectural and Engineering eering Services (A&E Services). These services are to be
acquired under the authority and procedures outlined in RCW Chapter 39.80.
(a) Examples. Engineers, land surveyors, architects, and landscape architects.
3) General Services. All other service related work that is not considered a public
work or professional service. Most often these are routine in nature (i.e.: yearly,
monthly, weekly, etc.)
(a) Examples: Building maintenance, elevator maintenance, automotive
services, and instructors.
1.10 DETERMINE THE COST
A. To determine the estimated cost of a project to purchase is a critical step which will
generally determine which competitive selection process you will need to follow.
Page 11
Estimated project costs for competitive bidding purposes must include:
1) All construction related work (but not engineeringlarchitectural design fees).
2) All phases of the project.
3) All applicable sales and use taxes.
B. Project costs should not include donated materials, labor, supplies, etc. See Appendix A
for a summary of bidding requirements by project type.
C. Sales tax should be included when determining the cost of a public work of the purchase
of materials, supplies or equipment. There are no retail sales or use tax exemptions for
City purchases except:
1) Labor and services rendered for the building, repair, or improving of any street,
place, road, highway, easement, right-of-way, mast public transportation terminal,
or parking facility, bridge, tunnel, or trestle owned by the City used primarily for
pedestrian or vehicle traffic. Materials used in constructing these projects are not
exempt from sales and use tax.
2) Labor and services for processing and handling of sand, gravel, and rock taken
from City pits and quarries when the material is for publicly -owned road projects.
1.11 DETERMINING CONTRACT VALUE
A. Contract value refers to the total aggregate value of the contract including all base
periods, plus potential renewal periods. It all includes all applicable retail sales and use
taxes.
1) Example #1: A three-year contract for $40,000 per year is considered a $120,000
contract.
2) Example #2: A contract originally scheduled as a one year $60,000 contract, but
a renewal is negotiated for an additional year for another $60,000, the aggregate
value of the contract becomes $120,000.
3) Exception: Hardware/software maintenance agreements are treated as stand-alone
agreements and do not need to be aggregated to the original hardware/software
purchase agreement.
B. Routine Work - Purchased Services. Purchased services contracts are provided by
vendors for necessary, continuing, routine or reoccurring work. They are generally
associated with the day-to-day operations of the City and are intended for completion of
an assigned or specific task. These generally include routine building maintenance,
janitorial services, recycling services, vehicle inspection and maintenance and
landscaping. Best practices dictate that a competitive negotiation process be followed
every contract period. If it is determined by the Department Director that a competitive
Page 12
negotiation process is not feasible, the following alternative process should be followed:
1) A competitive process should be performed at a minimum of every four years.
2) Each individual contract may be based upon the original competitive process
provided that the scope has not changed significantly. If the scope changes result
in a cost differential of greater or less than ten percent, a new competitive process
will be required.
3) Typically, only the original successful vendor may be used for each contract
period. Changing vendors to the "second place vendor" should be discouraged
unless the successful vendor is unable to perform the contract services.
4) The duration, terms, conditions, and requirements of the contract shall be clearly
identified in the original competitive process to all proposers.
5) All signature authority levels apply to each contract.
6) Executing a series of individual contracts shall not be done for the purposes of
avoiding City Council approval.
Purchased services may require prevailing wages to be paid, in which case, the vendor
must follow the statutory requirements of RCW 39.12. (See 7.1)
1.12 EXCEPTIONS TO THE COMPETITIVE PROCESS FOR CONTRACTS FOR
PUBLIC WORKS AND CONTRACTS FOR PURCHASES.
State law permits limited exceptions to the bidding requirements for contracts for public
works and contracts for purchases. All of these exemptions require authorization from
the City Council by Resolution.
A. Request an Exception to the Competitive Process. Request for exceptions must be made
to the City Council. Exceptions should make good business sense and be in the best
interest of the City. In all cases, it is the City's responsibility to conduct a good faith
review of all available providers and determine that the requested vendor is the only
applicable provider of such services/items.
It is important to note that ONLY the requirement for competitive bidding or advertising
is waived. It does not waive any contractual requirements, approvals, or insurance
requirements.
Page 13
B. Exemptions to the Competitive Bidding Requirements as Provided in RCW 39.04.280(1):
C. Exemption Process: Complete a written request to the City Council including:
1) Explain why this option is the only option, makes good business sense, and is in
the best interest of the City. Complete and provide Sole Source Worksheet, if
applicable.
2) The Sole Source Worksheet needs to be signed by the requestor, Department
Director, and the City Manager, following Council approval. City Council shall
pass a resolution approving this determination.
1.13 URGENT NEED OR EMERGENCY
An "Urgent Need" is defined as "an immediate need for goods or services (non-
emergency) that does not allow for the normal purchase processing time."
A. Urgent Need Process:
1) Step 1 — Determine action needed.
2) Step 2 — Evaluate budget capacity.
3) Step 3 — Contact Finance Director if purchase will exceed the budget or financing
assistance is required.
B. Declared Emergencies. For purposes of this section "emergency" means unforeseen
circumstances beyond the control of the City that either: (a) present a real, immediate
Page 14
Purchases that are clearly and
' Licensed or patented goods or service.
legitimately limited to a single
' Items which are compatible w/ existing equipment,
source of supply
inventory, systems, programs or services.
Complete Sole Source
- Meets City standards (i.e. meters).
Worksheet (See Appendix B)
' Factory -authorized warranty services.
■ Meets the specialized need of the City.
Purchases involving special
facilities or market conditions
Item is of special design, shape or manufacture that
Complete Sole Source
matches or fits w/ existing equipment, inventory,
Worksheet (See Appendix B)
systems, programs, or services.
Purchases of insurance or bonds
Insurance or bonds
Purchases in an emergency
See Section 1.13
If another City provides maintenance service to our
Certain government to
City using its own forces, no competitive bidding
government purchases
requirements arise. However, if the other City
contracts with a private company for this service,
competitive bid limits would apply.
C. Exemption Process: Complete a written request to the City Council including:
1) Explain why this option is the only option, makes good business sense, and is in
the best interest of the City. Complete and provide Sole Source Worksheet, if
applicable.
2) The Sole Source Worksheet needs to be signed by the requestor, Department
Director, and the City Manager, following Council approval. City Council shall
pass a resolution approving this determination.
1.13 URGENT NEED OR EMERGENCY
An "Urgent Need" is defined as "an immediate need for goods or services (non-
emergency) that does not allow for the normal purchase processing time."
A. Urgent Need Process:
1) Step 1 — Determine action needed.
2) Step 2 — Evaluate budget capacity.
3) Step 3 — Contact Finance Director if purchase will exceed the budget or financing
assistance is required.
B. Declared Emergencies. For purposes of this section "emergency" means unforeseen
circumstances beyond the control of the City that either: (a) present a real, immediate
Page 14
threat to the proper performance of essential functions; or (b) will likely result in material
loss or damage to property, bodily injury, or loss of life if immediate action is not taken.
Competitive bidding may be waived subject to the following process:
C. Declared Emergency Process.
1) Step 1 — Mayor declares an emergency and City Attorney prepares emergency
declaration.
2) Step 2 — Upon authority from the City Manager, the department may authorize
work and/or equipment procurement required to address the emergency situation.
3) Step 3 — Department will develop contract with written determination of the basis
for the emergency and for the selection of the particular vendor. This written
determination shall be included in the contract file.
4) Step 4 — Award the contract.
5) Step 5 —Department to schedule the contract award on next City Council regular
agenda. Coordinate with the City Attorney to prepare materials necessary to ratify
emergency declaration finding not later than two weeks following the award of
the contract.
6) Step 6 — A record of the emergency procurement shall be made at the next regular
City Council meeting.
Page 15
2. PURCHASES PROCUREMENT
2.1 INITIATE A NEW PROCUREMENT
The City makes many small and large purchases over the course of the year and must comply
with State and local policy for each type of procurement based on type of work, dollar limits, and
level of risk involved with each purchase.
The following table summarizes the types of new procurements typically performed at the City
of Pasco:
Options i
Procurements
Credit Card
US Bank Reconciliation
Accounts Payable
Personal Reimbursement
Expenses Claim Form
Accounts Payable
Materials, Supplies and
Claims Process
Subject to Dept. approval
Equipment <$15,000
and budget authority
Materials, Supplies and
Purchase Agreement by
Subject to Dept. approval
Equipment >$15,000
Competitive Bid
and budget authority
Public Works
Invitation to Bid Contracts
Contracts Administrator
A & E/Prof Services
Request for Qualifications
Contracts Administrator
Contract
General Services
Quote Requisition
Contracts Administrator
<$35,000
General Services
RFP Contract
Contracts Administrator
>$35,000
NOTE: Depending upon the nature of the project, it may be necessary to modify the standard
process if other factors, such as risk, are involved. These may be looked at on a case-by-case
basis.
Page 16
2.2 SMALL PURCHASES OF GOODS AND SERVICES
Small
purchases are typically
goods and services
(excluding Public
Works) under $15,000.
These
purchases can be made
using one of the following
processes:
Process
Credit Card (see City of
Dollar Limil
Up to $5K/mo. for
klloN�ed Uses
Business related
Non-AlIoNNed Uses
Pasco Procurement Card
individuals. And
purchases of goods
Alcohol, capital
Policy -Administrative Order
$1OK/mo. for
and services i.e.,
equipment, cash
480)
departments
subscriptions,
advance,
seminars, catering,
consulting services,
*It is strongly
*Exceptions may
maintenance, repair,
personal items,
recommended that
be made with the
operations, office
professional
employees use the City
Finance Director's
supplies, computer
services
credit card vs. personal
approval
peripherals, software
Up to $1,000
Small incidentals
Personal
*Exceptions may
such
such as postage,
Regular business
Reimbursements
be made with the
tolls, parking
related goods and
Finance Directors
fees, CDL license,
services
approval
meals, and mileage
Goods and Services
at low risk and not
Capital
Claims Request
$15,000
otherwise covered
expenditures,
under a contract, or
contracts
required to be bid
2.3 STATE CONTRACTS OR OTHER COOPERATIVE PURCHASING
AGREEMENTS
Both the Washington State Department of General Administration and the Department of
Information Services (DIS) offer existing contracts for goods and services that the City may use.
In addition, the City has entered into a number of agreements with other governmental units to
share in cooperative purchasing and the benefits of volume pricing.
When using a state contract or purchasing agreement, the City is, in essence, "piggybacking" off
of their competitive process thus eliminating the need to perform its own. The City may pay an
annual fee to the state or other governmental unit for the ability to piggyback off of their
contracts and encourages the use of these contracts whenever possible.
*See Appendix A for list of cooperative purchasing agreements.
Page 17
A. The Competitive Process:
1
Review State contract website for
Work with State buyer
b/
Purchase Agreement for
materials, supplies and
equipment or services
piggyback requirements
City Manager, as long as there is
budget authority
$300,000 and above*
City Council approval
Obtain details regarding all
2
Contact vendor to verify if vendor will
aspects of purchasing including
honor state contract pricing
invoicing, availability, delivery,
etc.
3
Contact procurement officer to place
Place order and process invoice
order
for payment
B. Completing the Purchase:
1) State contracts include standard terms and conditions. When piggybacking off of
a state contract, all of the state contract terms and conditions apply.
2) Occasionally, the City may opt to change the state's contract requirements which
will require the City to develop its own Purchase Agreement identifying those
requirements that are unique to the City's purchase.
C. Approval Process:
-1".% pe
Dollar,kniount
Less than $50,000*
Authorit)
Department Head (or designee) as
long as there is budget authority
Purchase Agreement for
materials, supplies and
equipment or services
$50,000 — $299,999*
City Manager, as long as there is
budget authority
$300,000 and above*
City Council approval
*hicluding sales/use tax.
2.4 LARGE PURCHASES FOR MATERIALS, SUPPLIES AND EQUIPMENT
A. The Competitive Process. While the purchase of material, supplies, and equipment, does
not require competitive bidding, due diligence should be made to secure the most
favorable pricing for City purchases. Purchases are covered by RCW 35.22.620 (per
RCW 35A.40.210).
Page 18
B. Formal E ui ment Bid Process.
1'
Task
Identify Grants or Federal
NN 110
Department
Actiori
Notify Grant Accounting
Funds as applicable
Technician
Forms shall include:
Advertisement Non -
2.
Prepare Bid Documents
Department
Collusion Equal Opportunity
Bid Proposal Sheet Bidder's
Checklist Bid Bond (if
necessary)
Prepare Product
Considerations: Warranties
3.
Specifications
Department
Delivery Liquidated
r
Damages
Advertise in official
Advertise, Publish and
newspaper Publish Bid on
4.
Notify
Department
internet Email notification to
recommended roster
participants (if any)
Department to write
5.
Addenda Required?
Department
addenda, notify plan holders
and post online
Schedule and Conduct Bid
Department to schedule
6.
OpeningDepartment
conference room, open and
read sealed bids
Determine the lowest,
responsible, responsive
bidder; Schedule award date;
Prepare Council agenda
7.
Bid Award
Department
materials (Motion to
Award); Prepare contract
paperwork for vendor
signatures; Prepare routing
for internal signatures
C. Completing the Purchase:
1) Step I — The Purchase Agreement should include three complete sets:
(a) Purchase Agreement — signed by vendor.
(b) Attachment A — Bid/Specifications including successful vendor's required
forms submitted at time of bid (e.g.: Non- Collusion, Affidavit of Equal
Opportunity, and Bid Offer Form).
Page 19
(c) Attachment B — City's Insurance Requirements w/successful vendor's
Certificate of Insurance.
2) Step 2 — Routing
(a) Complete the Contract Routing/Approval Form.
(b) Attach copy of draft agenda memo materials.
(c) Notify Accounting Technician to create contract purchase order for
contract tracking and payment processing purposes.
D. Approval Process.
pe
DollarTN
Department Director (or
Less than $50,000*
designee) as long as there is
budget authority
Purchase Agreement
$50,000 - $299,999*
City Ci Manager, as long as there
g g
is budget authority
$300,000 and above*
City Council approval
*Including sales/use tax.
2.5 VENDORS LIST — MRSC ROSTER
The City is not required to use formal sealed bidding procedures to purchase materials, supplies,
or equipment not connected to a public works project where the cost will not exceed $100,000.00
following the procedures provided in PMC 14.11.020 "Vendor List Roster."
2.6 TELECOMMUNICATIONS AND DATA PROCESSING PURCHASING
The City may purchase telecommunications and data processing (computer) equipment and
software through a competitive negotiation process as an alternative to the bid process.
RCW 39.04.270 provides for an alternative competitive negotiation process requiring, at a
minimum, the following:
A. Requests for Proposals (RFPs) must be published in a newspaper of general circulation at
least 13 days before the last date on which the proposal will be received.
B. The RFP must identify significant evaluation factors, including price, and their relative
importance.
C. The City must provide reasonable procedures for technical evaluation of the proposals,
identification of qualified sources, and selection for awarding the contract.
Page 20
D. The award must be made to the qualified bidder whose proposal is "most advantageous"
to the City. The City may reject all proposals for good cause and request new proposals.
3. PUBLIC WORKS PROCUREMENT
All City projects and purchases for work, construction, alteration, repair, or improvement of any
City land, facility, structure, utility, or roadway constitute a "public works project," and
compliance with the State's bidding requirements, or its exceptions, is required. Public works
projects may consist of:
A. In-house or day labor.
B. Limited public works - - small works roster.
C. Small works roster.
D. Public works formal bid process, each depending on the cost for the project.
3.1 REQUIREMENTS APPLICABLE TO ALL PUBLIC WORKS BIDDING
METHODS
A. Bid Splitting. Cities may not break a public works projects into separate phases or parts
to avoid compliance with the bidding statutes. Likewise, the City cannot break a project
into phases for the purpose of estimating the cost of a public works project, even though
those phases are performed at different intervals of time. Even if the City will be
completing the actual project in phases, the total costs of all phases of the public work or
purchase will determine the method of bidding required. If the aggregated cost exceeds
the applicable bid limit, the City must bid each phase of the project even though a given
phase is less than the bid limit.
B. Developer and Joint Projects. If the project is done completely by developer and then
donated or dedicated to the City, the bid laws do not apply because the developer is not
acting as an agent for the City. Also as a general rule, if the cost of the project involves
any City money, then the entire project is a public works project subject to the bidding
laws and the procedures of this policy. Joint projects for the City funds the costs for
oversizing or other upgrades or improvements beyond those required to be performed by
the developer, the appropriate bidding law procedure, depending on the cost of the City's
portion of the project, must be complied with.
C. Determining the Cost of a Public Work. The total construction cost of each project must
be estimated in order to correctly apply bid limit dollar amounts to determine if a public
works project must be competitively bid. This estimate may be prepared by an outside
third party; however, the final cost estimate must be validated by the City. The total
construction cost (estimated as if the project were to be bid) is used to make the
determination. The estimate shall include materials, supplies, equipment, and labor on
the construction of that project AND applicable sales and use taxes. However, the value
Page 21
of volunteer labor, material, or equipment need to be included in the cost estimate for a
public works project, as these are not a cost to the agency.
3.2 PUBLIC WORKS PERFORMED BY CITY STAFF - - IN-HOUSE WORK
Minor public works projects may be performed by City workers, day labor, or contract labor
without calling for bids when the estimated cost of the work or improvement, including costs of
materials, supplies and equipment will not exceed $65,000 if more than one craft or trade is
involved; or $40,000 if a single craft or trade is involved in the work. For any project performed
by City workers with an estimated cost in excess of $25,000, the City must publish a description
of the project and its estimated cost in the official newspaper at least fifteen (15) days before
beginning work as required by RCW 39.04.020
3.3 PUBLIC WORKS
A. Bid Limit. According to RCW 35.23.352, (which is specified for second-class cities, but
applies to code cities generally (see RCW 35A.40.200) the City may construct any public
work by contract or day labor without calling for bids when the estimated cost of the
work or improvement, including cost of materials, supplies and equipment will not
exceed $65,000 if more than one craft or trade is involved or $40,000 if a single craft or
trade is involved. Whenever the cost of the public work or improvement will exceed
these figures, the project shall be done by contract, provided the City may let contracts
using the small works roster process provided in RCW 39.04.155.
B. Determining the Cost of a Public Work. The total construction cost of each project must
be estimated in order to correctly apply bid limit dollar amounts to determine if a public
works project must be competitively bid. This estimate may be prepared by an outside
third party; however, the final cost estimate must be validated by the City. The total
construction cost (estimated as if the project were to be bid) is used to make that
determination. The estimate shall include materials, supplies, equipment, and labor on the
construction of that project AND applicable sales and use taxes. However, the value of
volunteer labor, material, or equipment need not be included in the cost estimate for a
public works project, as these are not a cost to the agency. For any project completed by
any means or method other than a contract, such as using City workers, and the estimated
cost will exceed $25,000, the City must publish a description of the project and its
estimated cost in the official newspaper at least fifteen days before beginning work as
required by RCW 39.04.020.
C. Publication. At least once a year, on behalf of the City, MRSC shall publish in a
newspaper of general circulation within the jurisdiction a notice of the existence of the
roster or rosters and solicit the names of contractors for such roster or rosters.
Responsible contractors shall be added to the appropriate MRSC roster or rosters at any
time that they submit a written request and necessary records. The City may require
master contracts to be signed that become effective when a specific award is made using
a small works roster. See 2.6 Public Works — Limited Public Works.
Page 22
3.4 LIMITED PUBLIC WORKS — SMALL WORKS ROSTER
SWR Process - Under $35,000
This limited public works process is a type of small works roster process applicable to smaller
projects.
A. Competitive Process:
1) If a work, construction, alteration, repair, or improvement project is estimated to
cost less than thirty-five thousand dollars ($35,000), the Department Director may
award such a contract using the limited public works process provided under
RCW 39.04.155(3).
2) Department will contact contractors off the Small Works Roster. Invitation for
quotations shall include an estimate of the scope and nature of the work to be
performed, materials and equipment to be furnished, and the date, time and
location to return quote. However, detailed plans and specifications need not be
included in the invitation.
3) A minimum of three electronic or written quotations shall be solicited from the
appropriate Small Works Roster and the City shall award the contract to the
lowest responsible bidder as defined under RCW 39.34.010.
4) After an award is made, the quotations shall be open to public inspection and
available by electronic request.
5) The City may use the limited public works process to solicit and award Small
Works Roster contracts to small businesses that are registered contractors with
gross revenues under one million dollars ($1,000,000.00) annually as reported on
their Federal Talc Return, and to adopt such additional procedures as to encourage
small businesses that are registered contractors with revenues under two hundred
fifty thousand dollars ($250,000.00) annually as reported on their Federal Tax
Return to submit quotations or bids on Small Works Roster contracts.
6) For limited public works project, the City may waive the payment and
performance bond requirements of RCW 39.08 and the retainage requirements of
RCW 60.28 if the contractor has demonstrated sufficient financial ability to
complete the project. By waiving these bonds, the City assumes the liability for
the contractor's nonpayment of laborers, mechanics, subcontractors, material
suppliers, suppliers, and taxes that may be owed by the contractor. The City may
assert a right of recovery against the contractor for any payments made on the
contractor's behalf. Therefore, the City should not release the final payment until
the contractor has provided lien waivers and other proof of payment of all costs
and taxes associated with the project.
7) The City will maintain a list of the contractors contacted and contracts awarded
during the previous 24 months under the limited public works process, including
Page 23
contractor name, registration number, amount of contract, brief description of
work and date contract awarded.
8) Prevailing Wage is required.
B. Completing the Purchase. Contract.
1) Step 1 - The Small Public Works contract should include 3 complete bid packages
including:
(a) Small Public Works contract — signed by the contractor.
(b) City's Scope of Work.
(c) Contractor's Quote.
(d) City's Ins. Requirements and Contractor's Ins. Cert.
(e) Prevailing Wage Rates and Benefit Code Key.
2) Step 2 — Routing
(a) Complete the Contract Routing/Approval Form.
(b) Attach copy of agenda memo materials if applicable.
C. Approval Process:
Department Director, as
Limited Public Works Under $35,000* long as there is budget
authority
*hncludine sales/use tax.
3.5 PUBLIC WORKS — SMALL WORKS ROSTER
SWR Process — Between $35,000 and $300,000
A. Small Works Roster. When the contract amount for a public works project is $300,000
or less, the City may follow the Small Works Roster process for construction of a public
work or improvement as an alternative to the general competitive bidding requirements as
provided in PMC 14.11 "Small Works Roster." The City of Pasco has contracted with
the Municipal Research and Services Center of Washington (MRSC) for the City use of a
State-wide electronic database for small works roster and consulting services developed
and maintained by MRSC.
Page 24
B. Publication. At least once a year, on behalf of the City, MRSC shall publish in a
newspaper of general circulation within the jurisdiction a notice of the existence of the
roster or rosters and solicit the names of contractors for such roster or rosters.
Responsible contractors shall be added to the appropriate MRSC roster or rosters at any
time that they submit a written request and necessary records. The City may require
master contracts to be signed that become effective when a specific award is made using
a small works roster. See 2.6 Public Works — Limited Public Works.
C. Competitive Process. The following Small Works Roster procedures cover projects
between $35,000 and $300,000, and are established for use by the City pursuant to RCW
35.22.620 and RCW 39.04.155(1).
1) The City need not comply with formal sealed bidding procedures for the
construction, building, renovation, remodeling, alteration, repair, or improvement
of real property where the estimated cost does not exceed $300,000.00, which
includes the costs of labor, material, equipment and sales and/or use taxes as
applicable.
2) Telephone, Written Quotations or Electronic Quotations. The City shall obtain
telephone, written or electronic quotations from contractors on the appropriate
Small Works Roster to assure that a competitive price is established and to award
contracts to a contractor who meets the mandatory bidder responsibility criteria in
RCW 39.34.350(1). The City may establish supplementary bidder criteria under
RCW 39.34.350(2) to be considered in the process of awarding a contract.
3) The breaking of any project into units or phases is prohibited if it is done for the
purpose of avoiding the maximum dollar amount of a contract that may be let
using the Small Works Roster process.
4) A contract awarded from a Small Works Roster need not be advertised.
Invitations for quotations shall include an estimate of the scope and nature of the
work to be performed as well as materials and equipment to be furnished.
Detailed plans and specifications need not be included in the invitation.
5) Quotations may be invited from all contractors on the appropriate Small Works
Roster. As an alternative, quotations may be invited from at least five (5)
contractors on the appropriate roster who have indicated the capability of
performing the kind of work being contracted, in a manner that will equitably
distribute the opportunity among the contractors on the roster. "Equitably
distribute" means that the City may not favor certain contractors on the roster
over other contractors on the roster who perform similar services. At the time bids
are solicited, the City representative shall not inform a contractor of the terms or
amount of any other Contractor's bid for the same project.
6) The City should invite at least one proposal from a qualified minority or woman -
owned business entity.
Page 25
A
F
7) If the estimated cost of the work is from $150,000 to $300,000, the City may
choose to solicit bids from less than all the appropriate contractors on the
appropriate Small Works Roster, but must also notify the remaining contractors
on the roster that quotations on the work are being sought. The City has the sole
option of determining whether this notice to the remaining contractors is made by:
(a) Publishing notice in a legal newspaper of general circulation in the area
where the work is to be done.
(b) Mailing a notice to these contractors; or
(c) Sending a notice to these contractors by facsimile or other electronic
means.
8) A written record shall be made by the City representative of each contractor's bid
on the project and of any conditions imposed on the bid. Immediately after an
award is made, the bid quotations obtained shall be recorded, open to public
inspection, and available by telephone inquiry.
9) Prevailing Wage, Public Bid opening and Council approval is required.
Completing the Purchase. Contract.
1) Step 1 — The Small Public Works contract should include 3 complete bid
packages including:
(a) Small Public Works contract and Addenda.
(b) All awarded contractor's bid submittal forms.
(c) Contractor's Insurance Certificate.
(d) Complete Retainage Selection Option Form.
2) Step 2 — Routing
(e) Attach copy of agenda memo materials if applicable.
Approval Process:
Less than $50,000* Department Director, as long as
Public Works —Small works there is budget authority
Roster $50,000 to City Manager, as long as there is
$300,000* budget authority
Including sales/use tax.
Page 26
3.6 PUBLIC WORKS — FORMAL BID PROCESS
Formal Bid Process — Over $300,000
A. Competitive Process: Competitive bidding is designed to prevent favoritism in awarding
public work contracts and to enable local governments to obtain the best work or supplies
at the most reasonable prices. It is also designed to provide a fair forum for bidders and to
protect the public interest.
1) Department will compile bid package.
2) The notice to bid is to be published in the official newspaper at least 13 days prior
to the date bids are to be received. The notice shall state the nature of the work for
which plans and specs will then be on file.
3) Bids must be sealed and filed within the time specified.
4) Each bid requires a bid proposal deposit of 5% or more in the form of cashier's
check, postal money order, or surety bond.
5) Prevailing Wage is required.
6) Public bid opening is required.
7) Council approval is required.
B. Completing the Purchase: Contract.
1) Step 1 — The Public Works contract should include 3 complete bid packages
including:
(a)
Public Works agreement — signed by the contractor.
(b)
Any Addenda.
(c)
All awarded contractor's bid submittal forms.
(d)
Contractor's Insurance Certificate.
2) Step 2
— Routing
(a)
Complete the Contract Routing/Approval Form.
(b)
Attach copy of agenda memo materials if applicable.
Page 27
C. Approval Process:
D. Formal Bid Process:
1
Page 28
qObtaPProject
Department
Obtain project number from Finance
Number
Department — Accounting Technician
2'
Identify Grants of
Department
Notify Finance Department, as
Federal Fund
applicable
Forms shall include:
Advertisement
Non -Collusion
Equal Opportunity
Bid Proposal Sheet
3
Prepare Bid
Department
(includes Debarment Form)
Documents
Bidder's Qualifications
Supplemental Criteria
Bidder's Checklist Performance
Specifications
Bid Bond
4
Advertise, Publish
Department
Advertise, Publish Bid on City website
and Notify
or other
5.
Schedule and
Conduct Bid
Department
Department to schedule conference room
Opening
Department to open and read sealed bids
Determine if
Bidder is deemed
Responsive and
Responsible. See:
Department to review low bid
6.
5.2- No Bids or
Department
received against responsibility and
Non-
responsive criteria and reject non-
Responsive/Respo
responsive/responsible bidders
nsible Bids or
Submittals
Page 28
3.7 PURCHASES OF EQUIPMENT INCLUDING INSTALLATION
Some transactions bear the elements of both a purchase and a public works project. RCW
35.23.352(1) prohibits the division of a public works project into units of work or classes of
work to avoid the restriction on work that may be performed by City workers or day labor on a
single project.
Occasionally, projects include the direct purchase of equipment which is separate from the
installation. For example, the City can purchase equipment for $50,000 off of a state contract at a
lower cost, and the installation is estimated to cost $25,000.
A. How should this project be bid? Because the City cannot split public works into units to
avoid the bidding process, it must combine the cost of the two purchases and treat them
as one to establish the "project cost." In this example, the project cost of the entire project
is $75,000 (equipment @ $50,000 + installation @ $25,000), which exceeds the City's
limited public works bid threshold of $35,000. Therefore, the public work installation
must be subject to the bidding process - - in this case, the small works roster process.
The purchase of the equipment will be made using the state contract.
B. What kind of contract should be used? For this project, because the public works
installation is under $35,000, the City would use a Limited Small Public Works Contract.
Public works contracts under $35,000 do not require retainage or bonding, so these
requirements may be waived if appropriate.
There are so many variables to this type of purchase that it would be difficult to highlight
every possible scenario. Contact the Finance Director for assistance.
C. The Competitive Process. For the competitive process requirement, use the Project Cost
values:
1) Add the cost of the equipment purchase and installation costs to establish the
Project Cost.
2) Per the Project Cost values:
Page 29
Compare Bid against original cost
Document
estimate and determine and document
"spread"
7.
Reasonable Cost
Department
the is reasonable.
If cost spread is not reasonable,
the low bid may be rejected.
Department to prepare agenda materials;
Department to schedule award with
8.
Bid Award
Department
Council;
Route contract;
Complete retainage selection form
3.7 PURCHASES OF EQUIPMENT INCLUDING INSTALLATION
Some transactions bear the elements of both a purchase and a public works project. RCW
35.23.352(1) prohibits the division of a public works project into units of work or classes of
work to avoid the restriction on work that may be performed by City workers or day labor on a
single project.
Occasionally, projects include the direct purchase of equipment which is separate from the
installation. For example, the City can purchase equipment for $50,000 off of a state contract at a
lower cost, and the installation is estimated to cost $25,000.
A. How should this project be bid? Because the City cannot split public works into units to
avoid the bidding process, it must combine the cost of the two purchases and treat them
as one to establish the "project cost." In this example, the project cost of the entire project
is $75,000 (equipment @ $50,000 + installation @ $25,000), which exceeds the City's
limited public works bid threshold of $35,000. Therefore, the public work installation
must be subject to the bidding process - - in this case, the small works roster process.
The purchase of the equipment will be made using the state contract.
B. What kind of contract should be used? For this project, because the public works
installation is under $35,000, the City would use a Limited Small Public Works Contract.
Public works contracts under $35,000 do not require retainage or bonding, so these
requirements may be waived if appropriate.
There are so many variables to this type of purchase that it would be difficult to highlight
every possible scenario. Contact the Finance Director for assistance.
C. The Competitive Process. For the competitive process requirement, use the Project Cost
values:
1) Add the cost of the equipment purchase and installation costs to establish the
Project Cost.
2) Per the Project Cost values:
Page 29
(a) Follow appropriate equipment competitive process.
(b) Follow appropriate Public Works competitive process (Project Cost =
$75,000, follow SPW Process: $35K -$300K).
D. Completing the Purchase.
1) Use appropriate equipment purchase process (purchase agreement) for the value
of the equipment only.
2) Use appropriate public work contract (small public work contract, public work
agreement) for the value of the public work only.
3) All other public work contract requirements such as retainage, bonding, etc. shall
also apply per the value of the public work only.
E. Approval Process. For the approval process, use the project cost values:
*Including sales/use tax.
4. ALTERNATIVE PUBLIC WORKS CONTRACTING
4.1 JOB ORDER CONTRACTING
As an additional alternative to the public works bidding process, the City may enter into a job
order contract as authorized by RCW 39.10.420 as a method of obtaining construction services
for smaller projects through the use us an indefinite quantity delivery order contract for a fixed
period of time. The procedure for a job order contract shall be in compliance with RCW
39.10.420 through 460.
4.2 PERFORMANCE BASED CONTRACT FOR ENERY EQUIPMENT
The City may pursuant to RCW 39.35A.030 enter into a performance based contract when
contracting for certain water conservation, solid waste reduction, or energy services and
equipment. A "performance-based contract' is a contract that provides for payment only if there
are cost savings, if the payment obligation for each contract year is either set as a percentage of
the annual cost savings attributable under the contract or guaranteed by the other persons or
entities to be less than the annual cost savings attributable under the contract. The competitive
bidding process is not required, however, the procedure for performance-based contract shall
comply with RCW 39.35A.030.
Page 30
4.3 DESIGN BUILD
Cities may use design -build procedures to contract for public works. Use of design build first
requires a request for proposal and an evaluation of qualifications and proposals. Unless this
process is extended through further legislative action, it will cease to be available June 30, 2022.
The design -review process allows a city to contract for both the design and construction of a
facility valued over ten million dollars or a parking garage, regardless of cost, portable facilities,
pre-engineered metal buildings or not more than ten prefabricated modular buildings per
installation site, regardless of cost and not subject to approval by the evaluation committee. The
contract is awarded through a competitive process using the public solicitation of proposals for
design -build services. The call for proposals must contain a detailed description of the project,
the reasons for the design -build procedure, a description of the qualifications required, a
description of the process for evaluation of qualifications and proposals, the form of the contract
to be awarded, and any other relevant information to the project. The proposals are to be
evaluated by a committee who chooses three to five finalists to submit best and final proposals;
the contract is awarded from these proposals, or all proposals may be rejected. The firm selected
is then required to submit a performance and payment bond, while the other finalists are paid an
honorarium in an amount "sufficient to generate meaningful compensation amount potential
proposers."
K1l "3l.la1;7_\I[KI]►`YY1 [:SII� 2t11Z0a11JaV
A general contractor/construction manager is a firm the City selects and with whom it negotiates
a maximum allowable construction costs, guaranteed by the firm, selected after advertisement
and competitive bids. Unless the process is extended through further legislative action, it will
cease to be available June 30, 2022.
The firm that is selected provides services during the design phase and acts as the construction
manager and general contractor through the construction phase. The process used for selection
of a firm is similar to that used to select a design -build contractor, discussed in the section above.
The contractor is selected partially on qualifications, as provided in response to a Request for
Proposal, and on the bid the contractor provides; it is also suggested that the City interview the
potential contractors in order to make a better -informed decision. The maximum allowable
construction cost is negotiated by the City and the firm selected after the scope of the project is
determined. That cost is used to set the guaranteed contract cost. Subcontractor work requires
competitive bids. The contract award may include an incentive clause, not to exceed five percent
(5%) of the maximum construction cost, to be awarded for savings of either time or cost of both.
5. BID OPENING PROCESS
5.1 BID OPENING PROCESS
A. Bid Due Dates. Time is of the essence. It is important to make the bid submittal time
clear in the bid documents. For example, "The bid form will be received up to 2:00 p.m.
on April 27, 20XX. Bids received after the date and hour, based on the time on our
atomic clock located in the City Council Chamber will not receive consideration." For
Page 31
example, if a bid is due at 2:00 p.m., a bid received at:
1) 1:59 p.m. is on time.
2) 2:00 p.m. is on time.
3) 2:01 p.m. is late.
If a bidder insists on submitting the bid and leaves it, do not open it. Make a photocopy of
the bid envelope with the time stamp, and immediately return the bid by certified mail,
return receipt requested.
B. Equal Treatment of Bidders. Avoid giving bidders an advantage to include: not
permitting bidders use of private offices and conference space for finalizing bid prices,
providing envelope for bidder to use in sealing the bid, or permitting bidder to use the
agency's telephone, computer, fax, or photocopier. Avoid disclosing the names and
numbers of bidders who have submitted bids.
C. Receiving Bids Checklist.
1) Is the bid in writing? (No fax, email, telephone or oral bids). Note the Small
Works Roster may have less formal requirements.
2) Did the bidder attend the mandatory pre-bid meeting, if applicable?
3) Is the Bid envelope sealed? Offer tape if not sealed.
4) Is the correct information on the envelope?
5) Is the time stamp clear?
6) Is the time stamp prior to deadline?
7) All bids received shall be kept in a secure and centralized location not accessible
to other bidders. Bids should never be left unattended.
D. Withdrawal and Modification of Bids.
1) A request to withdraw or modify the bid in advance of the deadline may be
received verbally or in writing. If unfamiliar with the bidder, ask for
identification.
2) Make a photocopy of the face of the bid envelope, ensuring the bid receipt time
shows up on the copy.
3) Have the bidder sign the photocopy with the following "Received by (signature,
printed name, date, time.)"
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4) Keep the original signed photocopy.
5) Remove the bid receipt stamp or cross it out on the face of the bid envelope.
6) Return the bid to the bidder, notifying the bidder that if they choose to resubmit
the bid, it must be received prior to the bid submittal deadline, and stamped in
again with a new time and date stamp, prior to the deadline.
E. Modifying Bids from a Distance. The bidder may submit additional information
modifying a previously submitted bid if the modification is:
1) Received in writing.
2) Specifically identifying the original bid.
3) Signed by an authorized representative of the bidder.
4) Received prior to the bid receipt deadline.
5) In a sealed envelope.
6) Clear in stating what prices are being changed.
F. Subcontractor's List.
1) Due either with the bid or within one hour of the Bid Submittal Deadline.
G. Opening the Bids. Bids should be opened in a public meeting. Read each bid before
opening the next one. Consider using one person to open the bids and the second person
to read. The project manager staff should record the prices on a bid tabulation form. The
bid reader should state publically all of the information noted in looking at the bid,
without passing judgment whether it is responsive or non-responsive; to include:
1) Name of bidder.
2) Is bid form signed?
3) Bid amount?
4) Is bid guaranty included?
5) Are addenda acknowledged?
6) Is subcontractor's list included?
7) Is the bid bond included if required?
The bids will be evaluated for responsiveness after the bid opening. If a contractor wishes
Page 33
to review the bids after the bid opening, allow only one contractor at a time to review the
bids in a monitored environment.
5.2 NO BIDS OR NON-RESPONSIVE/RESPONSIBLE BIDS OR SUBMITTALS
A. No Bids or Submittals Received. As provided in RCW 35.23.352(1), in the event the
City does not receive any bids or submittals on the first call, the City has three options: 1)
Re -advertise and make a second call, 2) Enter into a contract with any qualified
contractor, or 3) Purchase the supplies, materials or equipment and perform such work
and improvement by day labor (City staff).
Before determining which option would best fit, the department shall conduct a survey of
the registered bidders or proposers or any other known interested parties to determine: 1)
Why didn't they submit, 2) Was the City's document too restrictive or too complex, 3)
Was there ample time to submit, and 4) Were there too many open questions before the
due date? The City Attorney's Office may be consulted with for additional assistance on
determining the best option.
B. Determining Lowest Responsible Bidder. The City Council shall award the contract for
the public works project to the lowest responsible bidder, provided that, whenever there
is a reason to believe that the lowest acceptable bid is not the best price obtainable, all
bids may be rejected and the City Council may call for new bids. A responsible bidder
shall be a registered and/or licensed contractor who meets the mandatory bidder
responsibility criteria established by RCW 39.04.350 and who meets any supplementary
criteria established by the City.
C. Non -Responsive and/or Not -Responsible. There is a distinction between "responsible"
and "responsive." Responsiveness is determined at the outset of the bid review process.
Has the bidder submitted a bid that is consistent with the specifications and call for bids?
If the bid is not consistent, it is non-responsive and should not be considered. A
responsive bid, however, may be made by a person or firm that is not responsible, that is,
the bidder has failed the responsibility criteria established by RCW 39.04.350. To be a
responsible bidder, the contractor must:
1) Be a registered contractor at the time of bid submittal (RCW 18.27.020);
2) Have a current Unified Business Identifier number;
3) Have industrial insurance coverage;
4) Have an employment security department number;
5) Have a State excise tax registration number;
6) Have never been disqualified from bidding under RCW 39.06.010 or RCW
39.12.065(3);
7) Have not had any apprenticeship violations, if applicable; and
Page 34
8) Certify through a sworn statement that they are not a willful violator of labor laws
in reference to RCW 49.48.082.
Bids may be rejected as non-responsive for a multiple of material factors including lack
of subcontractor's list when required (for contracts in excess of $1M or contracts of 3 or
more trades), insufficient bid guarantees, bids submitted after the deadline, did the bidder
qualify the bid and/or lack of acknowledgement of addenda. In general, a material
irregularity is required before the bid may be deemed non-responsive which is defined as
any variance which provides "a bidder substantial advantage or benefit not enjoyed by
others." In the event the City receives a bid or submittal on the first call but it is deemed
non-responsive or non -responsible, the department shall consult with the Attorney's
Office to determine whether it is a material or immaterial irregularity. Each project will
be evaluated on a case by case basis.
D. Supplemental Criteria. In addition to the statutory responsibility criteria, the City may
draft supplemental bidding criteria when in the determination of the Public Works
Director, unique or specialized skills are necessary as provide in PMC 14.10.010(B).
Such supplemental criteria shall:
1) Demonstrate successful experience of at least two (2) public works projects of the
same nature and cost within the prior five (5) years.
2) Demonstrate successful completion of a public works project of the same nature
and character of the proposed project including, but not limited to, of similar size
and quantities, occupancy, staged -construction, continued use or accessibility
during construction, or specialized construction techniques or processes.
3) Demonstrates sufficient financial capacity to fulfill the contract.
4) Demonstrated ability, capacity, and skill to perform the contract or provide the
service required.
5) The character, integrity, reputation, judgment, experience, and efficiency of the
bidder.
6) Whether the bidder can perform the contract within the time specified.
7) The quality of performance of previous contracts or services.
8) The previous and existing compliance by the bidder with the laws relating to the
contract or services.
9) Such other information as may be secured having a bearing on the decision to
award the contract.
10) The bidding documents must include the adopted supplemental criteria and:
Page 35
(a) A basis for evaluation.
(b) A deadline for bidder to submit responsibility documentation.
(c) A deadline for bidder to appeal a "not responsible" determination.
11) A potential bidder may request changes to the supplemental criteria, and the City
is to evaluate that request. If it agrees to change the criteria, it must issue an
addendum. In the event the City denies the requested change or determines the
bidder "not responsible", it must provide in writing the reasons for the
determination and provide the bidder an administrative appeal within the time
period specified within the bidding documents. Supplemental Bidder
Responsibility Criteria checklist is attached as Appendix C. A Statement of
Bidder Qualifications should also be included as part of the bid documents
demonstrating both the financial and technical experience of the contractor and a
bank reference.
6. SERVICE PROCUREMENT
Competitive bidding is not required for the City's contract for services. Contract for services
include purchase services, professional services and architect/engineer services. There is a
distinction in the nature of these services, as well as the selection process.
6.1 PURCHASES OF GENERAL SERVICES
General services include all other service related work that is not considered a public work or
professional service. Most often these are routine in nature (i.e.: yearly, monthly, weekly, etc.)
The RCWs do not require a competitive process for the selection of general services, with the
exception of the City newspaper.
To ensure a more competitive process, the City has adopted tighter standards for competitive
selection of professional services providers. Unless the City Manager approves in writing an
exception based on the best interests of the City to signing the agreement, the City shall follow
the following competitive process for selection of these services:
A. The Competitive Process. The competitive process for general services is broken into
three categories:
1) Up to $15,000 — no competitive process required. It is still incumbent on
department to ensure that price is reasonable and provider is qualified.
2) $15,000 to $20,000 — Either a "3 quote" process or more competitive process may
be used.
3) $20,000 to $50,000 — RRP/RFQ process.
4) Above $50,000 — Formal advertised RFP or RFQ process required.
Page 36
B. Completing the Purchase.
1) Step 1 — The General Services Contract should include 3 complete sets:
(a) General Services Contract — signed by contractor.
(b) Attachment A — City's Scope of Services.
(c) Attachment Al — Contractor's Quote/Proposal.
(d) Attachment B — City's Standard Insurance Requirements.
(e) Consultant's insurance certificate.
(f) Attachment C — Prevailing Wage Rates and Benefit Code Key.
2) Step 2 — Routing
(a) Complete the Contract Routing/Approval Form.
(b) Attach copy of agenda memo materials if applicable.
C. Contract Approval Process:
*Including sales/use tax.
6.2 PURCHASES OF PROFESSIONAL SERVICES
Services provided by independent contractors that require specialized knowledge, advanced
education, professional licensing or certification (other than architects, engineers, and land
surveyors) and where the primary service provided is mental or intellectual, involving the
consistent exercise of professional judgment and discretion.
A. The Competitive Process. RCW 39.80.030 requires that the City shall publish in advance
the City's requirement for professional services. The City may comply with this section
by:
Page 37
1) Publishing an announcement on each occasion when professional services
provided by a consultant are required by the City; or
2) Announcing generally to the public its projected requirements for consultant
services to include notice throughout Washington State (done primarily through
the MRSC Consultant Roster). Such notice shall encourage consultant firms to
submit annually a statement of qualifications and performance data for
consideration in selection of consultants to provide services to the City.
B. Completing the Purchase.
1) Step 1— The Professional Services Agreement should include:
(a) Professional Services Agreement — signed by consultant.
(b) City's Scope of Services.
(c) Consultant's Proposal.
2) City's Standard Insurance Requirements and Consultants insurance certificate.
Information and Technology contracts may also include: Security Addendum,
Nondisclosure Agreement, and Technology Resource Usage Policy.
C. Awroval Process
Professional Services
tax.
Less than $50,000*
Department Head (or designee) as
long as there is budget authority
$50,000 -$299,999* City Manager, as long as there is
budget authority
$300,000 and above*
6.3 PURCHASES OF ARCHITECTS AND
City Council approval
SERVICES.
These services are to be acquired under the authority and procedures outlined in Chapter RCW
39.80. Architectural and Engineering consultants are initially selected based upon their
qualifications, rather than price (see RCW 39.80.050). The City will negotiate a contract with the
most qualified firm at a price which the City determines is fair and reasonable. hi making its
determination, the City shall take into account the estimated value of the services to be rendered
as well as the scope, complexity, and professional nature. If the City is unable to negotiate a
satisfactory contract with the fine selected at a price the City determines to be fair and
reasonable, negotiations shall be terminated and the City shall begin negotiations with the next
highest qualified firm.
Page 38
A. The Competitive Process. There are two ways to select an A&E firm based upon their
qualifications:
1) Publishing an announcement on each occasion when professional services
provided by a consultant are required by the City; or
2) Announcing generally to the public its projected requirements for architectural
and engineering services to include notice to the architectural and engineering
professional communities throughout Washington State (done primarily through
the MRSC Consultant Roster). Such notice shall encourage firms engaged in the
practice of engineering and architecture to submit annually a statement of
qualifications and performance data for consideration in selection of consultants
to provide services to the City.
B. Advertising for the Consultant Roster must be done at least once a year by MRSC on the
City's behalf. The MRSC Consultant Roster will distinguish between professional
architectural and engineering services as defined in RCW 39.80.020 and other consulting
services. Firms or persons providing consulting services shall be added to the appropriate
roster at any time they submit a written request and necessary records.
To ensure a competitive process, the City has adopted standards for competitive selection
of professional services providers. Unless the City Manager approves in writing an
exception based on the best interests of the City prior to signing the agreement, the City
shall follow the following competitive process for selection of these services:
1) Up to $50,000 — no competitive process required. Department Director shall
solicit proposals from qualified providers of such services and shall determine the
most qualified applicant and a fair and reasonable price, and shall attempt to
negotiate a contract in accordance with said determination and shall submit the
contract to the City Manager for final approval. It is still incumbent on department
to ensure that price is reasonable and provider is qualified.
2) Over $50,000 — Solicit competition from at least five consultants from the
Consultant Roster and notify the remaining consultants in the roster category
selected that qualifications are being sought.
3) Each written proposal shall include the following:
(a) Evidence of the firm's current ability to provide the required services;
(b) A proposed scope of work to be provided;
(c) A discussion of the relative utility of alternative methods of approach for
furnishing the required services;
Page 39
(d) A current statement of references and any other information that will be
helpful in evaluating the applicants' qualifications for the proposed
project.
4) After receiving and reviewing the written proposals, the Department Director
shall submit his recommendations to the City Manager as to the ranking of the
most qualified providers of the required services and as to a fair and reasonable
price for said services. The City Manager shall consider the recommendation of
the Department Director and the written proposals and if he/she is in agreement
with the determination of the most qualified provider of the needed services, may
authorize the Department Director to enter into negotiations with the most
qualified provider in the effort to secure an offer for provision of the services at a
price not exceeding the price determined to be fair and reasonable.
5) Once an acceptable offer has been obtained, the Department Director through the
City Manager shall forward his recommendations regarding the offer to the City
Council which may authorize final award of the contract.
C. Completing the Purchase.
1) Step 1 — The Professional Services Agreement should include 3 complete sets:
(a) Professional Services Agreement — signed by consultant.
(b) City's Scope of Services.
(c) Consultant's Proposal.
(d) City's Standard Insurance Requirements.
(e) Professional Liability (Error and Omissions).
(f) Consultant's insurance certificate.
2) Step 2 — Routing
(a) Complete the Contract Routing/Approval Form.
(b) Attach copy of agenda memo materials if applicable.
Page 40
D. Approval Process:
*Including sales/use tax.
6.4 RFPS AND RFQS
A. Request for Proposals (RFP). An RFP is a method of soliciting competitive proposals for
a defined scope of work. The proposals would normally include factors to measure
qualifications, delivery, and service reputation as well as price.
Stated another way, an RFP is a formal invitation from the City to a company to submit
an offer. The offer is to provide a solution (or proposal) to a problem or need that the City
has identified. An RFP is a solicitation process whereby the judgment of the supplier's
experience, qualifications, and solution may take precedence over their cost proposal to
the City.
Elements of an RFP:
1) Project Background and Scope of Services.
2) Definitions.
3) Minimum Qualifications.
4) Technical Requirements (if any).
5) Schedule.
6) Cost Proposal.
7) Submittal Requirements.
8) Evaluation Process and Criteria.
9) Insurance Requirements.
Page 41
10) Funding Sources (if applicable).
B. Request for Oualifications (RFO). An RFQ is a method of soliciting competitive
proposals that considers and evaluates companies on the basis of demonstrated
competency and qualification rather than price. This process is typically used for A & E
services where price is not a consideration. An RFQ will generally result in negotiations.
Elements of an RFO:
1) Project Background and Scope of Services.
2) Project Budget and Source of Funding.
3) Schedule.
4) Minimum Qualifications.
5) Submittal Requirements.
6) Selection Process/Evaluation Criteria.
Depending upon the complexity of the project, a typical RFP/Q takes around 6-8 weeks
to complete.
C. Request for Proposals/Qualifications:
1.
Identify need
Department
Develop Scope of Services
Ile
2
Determine the
Estimated Cost
Department
Confirm Sufficient Budget Exists
7
3
Identify Grants or
Federal Funds
Department
Notify Finance Department
Considerations:
• Schedule
Scope of Services
Develop Draft
• Qualifications
4.
RFP/RFQ
Department
• Selection Process/ Evaluation
(�
Criteria
• Submittal Requirements
• Proposal Validity Period
Term of contract
5.
Finalize RFP/RFQ
Department
Finalize and review
6
Identify appropriate
Department
Identify roster category and
roster category
companies
Page 42
7. ADDITIONAL CONSIDERATIONS
There are additional elements that may be applicable to both public works projects and
purchases. Some of those major elements are addressed below.
7.1 PREVAILING WAGES
A. What are prevailing wages? The Department of Labor and Industries requires that
workers be paid prevailing wages when employed on all public works, public building
service maintenance and contracted maintenance, based upon the classification of labor
performed. A notable exception to this requirement is that sole proprietors, who perform
the actual work on public works projects, are not required to pay themselves prevailing
wage rates.
Prevailing Wages are defined as the hourly wage, usual benefits and overtime, paid in the
largest city in each county, to the majority of workers, laborers, and mechanics.
Prevailing wages are established, by the Department of Labor and Industries, for each
trade and occupation employed in the performance of public work. They are established
separately for each county, and are reflective of local wage conditions.
B. What are the responsibilities of the City when contracting for public works? The City, in
awarding a contract, must make the determination of whether that contract involves
"public work" and communicate it to contractors in the bid specifications and contracts.
Contractors are not responsible for making the legal determination of whether a contract
does or does not meet the definition of a "public works" contract. The law does not allow
cities to place this burden upon the vendor. For example, it is insufficient to state,
"Contractors shall comply with the prevailing wage law, if applicable."
Page 43
• Advertise
• Publish RFP/RFQ on City's
7'
Advertise, Publish and
De partment
website
Notify
Email notification to
recommended roster participants
• See Appendix for specifics
8.
Evaluate RFPs/RFQs
Department
Department to identify selection
committee
9.
Conduct Interviews
Department
Department to schedule
Q/
10.
Identify "Apparently
Department
Seek mgmt. approval to negotiate w/
Successful Proposer"
"Apparently Successful Proposer"
Goal: To reach a mutually
11.
Negotiate Contract
Department
advantageous position on issues of
concern while fulfilling requirements
of the contract.
12.
Award Contract
Department
Prepare council agenda materials and
route contract
7. ADDITIONAL CONSIDERATIONS
There are additional elements that may be applicable to both public works projects and
purchases. Some of those major elements are addressed below.
7.1 PREVAILING WAGES
A. What are prevailing wages? The Department of Labor and Industries requires that
workers be paid prevailing wages when employed on all public works, public building
service maintenance and contracted maintenance, based upon the classification of labor
performed. A notable exception to this requirement is that sole proprietors, who perform
the actual work on public works projects, are not required to pay themselves prevailing
wage rates.
Prevailing Wages are defined as the hourly wage, usual benefits and overtime, paid in the
largest city in each county, to the majority of workers, laborers, and mechanics.
Prevailing wages are established, by the Department of Labor and Industries, for each
trade and occupation employed in the performance of public work. They are established
separately for each county, and are reflective of local wage conditions.
B. What are the responsibilities of the City when contracting for public works? The City, in
awarding a contract, must make the determination of whether that contract involves
"public work" and communicate it to contractors in the bid specifications and contracts.
Contractors are not responsible for making the legal determination of whether a contract
does or does not meet the definition of a "public works" contract. The law does not allow
cities to place this burden upon the vendor. For example, it is insufficient to state,
"Contractors shall comply with the prevailing wage law, if applicable."
Page 43
C. What provisions must be made for prevailing wage? The City's bid specifications and
contracts for public work must contain a provision stating the required prevailing rates of
pay and stipulate that workers shall receive no less than the prevailing rate of wage.
Those bid and contract documents must also contain:
1) A list of the applicable prevailing wage rates, or
2) The URL to the Department of Labor & Industries prevailing wage rates pages,
and
a) Identify the exact wage publication date to use (e.g., "Use October 14,
2010 rates.");
b) State the county in which the public works project is located;
C) Specify that a copy of the applicable wage rates is available for viewing at
the City (specify office); and,
d) Explain that the City will mail a hard copy of the applicable wage rates
upon request.
D. What are the public building service maintenance contract requirements? Public building
service maintenance (janitorial) contracts of more than one-year duration must include
wage language recognizing the potential for future variance in applicable prevailing
wages each year after the first year of the contract.
E. What are awarding agency requirements when disbursing public funds? Agencies may
not make any payments where contractors have not submitted an "Intent to Pay
Prevailing Wage" form that has been approved by the Industrial Statistician of L & I.
Agencies may not release final payment until all contractors have submitted an Affidavit
of Wages Paid form that has been certified by the Industrial Statistician of L & I. The
requirement to submit these forms should also be stated in the contract.
F. What are the contractor's filing requirements? Public work contracts require that each
and every contractor and sub -contractor on the project file the Statement of Intent to Pay
Prevailing Wages and Affidavit of Wage Paid forms.
G. Is there a minimum contract amount for a contractor to file? There is no minimum dollar
contract amount. That is, Intent and Affidavit forms are required for every public works
contract regardless of the size of the contract. Note that there are two alternate combined
Intent and Affidavit forms: one for projects of $2,500 or less and another for projects
under $35,000, including tax.
H. When does the contractor file Intent? The Intent form is filed immediately after the
contract is awarded and before work begins, if that is possible. The City may not make
any payment until contractors have submitted an Intent form certified by the Industrial
Statistician.
Page 44
When does the contractor file an Affidavit? The Affidavit form is not filed until after all
the work is complete. The City may not release final payment until all contractors have
submitted an Affidavit form that has been certified by the Industrial Statistician.
i�A_*Zvlle1
If the Contractor pursuant to RCW 39.08.010 on contracts of $150,000 or less elected in lieu of
posting of a performance bond agreed to retain ten percent (10%) of the contract amount, such
amount shall be held for a period of thirty (30) days after the date of final acceptance, or until
receipt of all necessary leases from the Department of Revenue, the Employment Security
Department, and the Department of Labor & Industries, and settlement of any liens whichever
shall last occur.
A. What is the purpose of retainage? According to RCW 60.28.011 (1) "Public improvement
contracts shall provide, and public bodies shall reserve, a contract retainage not to exceed
five percent of the moneys earned as a trust fund for the protection and payment of: (a)
The claims of any person arising under the contract; and (b) the state with respect to taxes
improved pursuant to Titles 50 (Employment Security Department), Title 51 (Labor and
Industries), and Title 82 (Department of Revenue).
B. What level of retainageis required? For Limited Public Works process contracts less
than $35,000, a contractor may opt to have 50% retained in lieu of a obtaining a
performance bond.
C. What are the retainage options? The contractor may select from one of three options for
managing retainage. 1) Retained in a non-interest bearing fund by the City; 2) Deposited
by the City into an interest bearing account; or 3) Placed in escrow with a bank or trust
company by the City of Pasco. All Contractors subject to retainage withholding must
complete the "Contractors Declaration of Intent Form". If the escrow option is selected,
the Accounting Technician in Finance must be immediately notified for the purpose of
executing an Escrow Agreement.
D. When can retainage be released? After final acceptance of the project, the retainage may
be released after all release notifications have been received from the Department of
Revenue, Department of Labor and Industries, and Department of Employment Security.
Upon receipt of all releases, the contract manager shall notify the Accounting Technician
in Finance to release the funds.
7.3 RISK MANAGEMENT CONSIDERATIONS
The City enters into numerous contracts throughout the year. These contracts involve risk. City
property can be damaged. Employees of the City, contractors, sub -contractors, and suppliers can
be injured. Members of the public can be harmed. These and other accidental losses can arise
during and as a result of the activities during the contract fulfillment process. The City seeks to
transfer responsibility to such events to those with whom it contracts.
The City's approach to contracting is designed and managed so as to avoid undue exposure to
Page 45
risk with exceptions where it makes good business sense. Insurance requirements are completely
dependent upon the activity being performed under contract. Which requirements and how much
are determined on a case-by-case basis.
Certificates of insurance may be required depending on the nature and scope of the work to be
performed. For the contractor insurance requirements specific to any project, the Department
shall consult with the City's designated risk manager. Verification of appropriate insurance
requirements shall be completed prior to the commencement of work. Any waiver of insurance
requirements requires the approval of the City's designated risk manager. This may be
appropriate in the following situations:
A. Waiving a portion of the Standard Insurance Requirements.
1) Where the contractor is a sole proprietor, the worker's compensation insurance
requirements may be waived.
2) Where the contractor or its employees will not be using automobiles in the
performance of the contract, the business automobile requirement may be waived.
8. THE CONTRACT AND BEYOND
8.1 THE CONTRACT AND BEYOND
A. Duration of Contracts. Public Works and A & E Service contracts typically cover the
duration of a project and should include estimated time -frames and milestones.
Professional and General Service contracts may be made for ongoing services for a stated
period of months or years. In each situation, such contacts should be terminable, upon
reasonable notice, and should be subject to review every four years.
B. Basis for exception of contract duration. The City may choose to issue a longer term
contract if it will achieve significant cost savings with a longer contract or if the
contractor is required to invest in major capital equipment and a longer time -frame to
support the purchase. Exceptions to contract duration shall be approved by the
Department Director prior to contract execution.
C. Developing the Contract — Service Contracts. The single most important element in the
contract is the Scope of Work/Services. The Scope documents all elements of the work,
magnitude of the project and reflects the mutual understanding of the parties. The scope
should be consistently applied in the solicitation and the contract. Here are a few things to
consider when developing your scope:
1) Hold the contractor accountable.
2) Be precise. Avoid ambiguity.
3) Use active voice (i.e., "The Contractor will or shall").
Page 46
4) Due dates and deliverables.
5) Other considerations when developing the contract are:
(a) Term of contract or period of performance.
(b) Compensation and payment.
(c) Payment terms — The City's Standard payment terms are as follows:
(i) Contractors provide monthly invoices to the City.
(ii) All invoices shall be paid within 30 days of receipt and approval.
6) If the contractor does not agree to standard contract terms:
(a) Contractor identifies specific changes proposed to standard form language.
(b) Department contacts attorney to review proposed changes and
accept/reject.
(c) Attorney makes any acceptable changes to standard form contract.
(d) Department handles routing of final modified contract.
8.2 PAYMENT OPTIONS
Prior to contract award, payment terms should be identified to determine the most effective
compensation method. The most common include:
A. Hourly/Time and Materials. The City pays a fixed hourly rate and pays for the cost of
certain specific services and/or materials. For certain professions, such as consultants,
this is the standard option. Time and materials contracts should have a ceiling amount or
a not to exceed amount included. This type of payment term may be used if the City is
unable to clearly define the level of effort required to accomplish the objectives. A time
and materials contract places most of the risk on the City and little on the contractor and
provides no positive profit incentive to the contractor for cost control or labor efficiency.
Frequent contract monitoring is required to ensure that the number of hours is kept to a
reasonable level.
B. Fixed -FFP or Lump Sum. The contractor receives a fixed amount or lump sum payment
based on terms established in the contract. Typically, payment is tied to a completion of
agreed upon performance achievements. Other alternatives are possible, such as progress
payments made to compensate for activities conducted over the specific period of the
contract. This type of contract should generally establish a minimum allowable level of
compensation. With this method of compensation, the City may not be required to pay if
specific terms in the contract are not met and thus the risk is placed on the contractor.
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C. Cost Reimbursement. A Cost reimbursement method of compensation has a higher risk
for the City because it reimburses the contractor for all costs incurred under the terms of
the contract. To prevent overpayment, allowable cost provisions should be clearly
identified. Contract managers should consider including a contract provision for a
maximum allowable compensation level for the contract period and budget. Cost
reimbursement contracts generally require more fiscal pre -planning and monitoring than
other methods.
D. Performance Based. These contracts are based on attainment of a specific outcome. The
rate of compensation is generally negotiated based on cost information provided by the
contractor. Generally, performance based contracts identify the maximum allowable
compensation. This allows the City to define the quality of services in terms of
performance standard and pay accordingly. Performance based contracts differ from time
and materials or fixed price contracts in that if the quantifiable quality of service is low,
the payment may be reduced or withheld. This requires a higher level of reporting from
the contractor to the City. The contractor primarily assumes the risk because the City
does not pay if performance levels are not met.
8.3 CONTRACT EXECUTION AND ADMINISTRATION
A. Contract Execution. The contract is fully executed when all authorized parties have
signed it. Upon execution, signed copies of the contract should be provided to all
interested parties including, at a minimum, the contractor and City Clerk. The City Clerk
will scan each fully executed contract and make available for City staff to review
electronically.
B. Contract Administration. Contract administration means any activity related to
contracting, including the decision to contract, contractor screening, contractor selection,
contract preparation, contract monitoring, auditing and post contract follow up. Typical
responsibilities of the contract manager include:
1) Understanding the contract, including the specific contract obligations and
performance indicators by which performance will be monitored.
2) Assessing the risks related to the project before soliciting proposals and
contracting to determine the extent of the monitoring required.
3) Ensuring the contractor has a clear understanding of how the contract will be
managed and monitored.
4) Providing the contractor with guidance and technical assistance, as needed, to
promote effective contract performance.
5) Identifying the extent and source of funding for services provided.
6) Monitoring the contractor's activities to ensure quality service delivery. Ensuring
funding is used only for authorized purposes.
7) Reviewing invoices and verifying that delivery of services is rendered.
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8) Resolving issues or problems that arise during the contract.
9) Measuring and tracking satisfaction with contractor performance.
10) Complying with State and City rules and regulations.
11) Documenting the contract to validate that effective contract management has
occurred.
C. Contract managers need to be mindful of the followin
1) Instructing the contractor to begin work before the contract is executed and
approved.
2) Changing the description, scope, period of performance, or cost of the contract
without processing a written amendment.
3) Directing the contractor to do work that is not specifically described in the
contract.
4) Signing a contractor's contract form (some exceptions apply)
5) Authorizing payment to the contractor for any work not performed satisfactorily.
6) Paying for the same or similar services more than once.
8.4 CONTRACT MONITORING - PERFORMANCE
A. Monitoring Contract Performance. Monitoring means any planned, ongoing, or periodic
activity that measures and ensures contractor compliance with the terms, conditions, and
requirements of a contract. The level of monitoring should be based on a risk assessment
of the contractor's role in delivering the services and the contractor's ability to deliver
under the terms of the contract.
B. The purpose of monitoring is to endure the contractor is:
1) Complying with the terms and conditions of the contract and applicable laws and
regulations.
2) In compliance with the contract through identifying and resolving potential
problems and providing constructive, timely feedback.
3) Adhering to the project schedule and making appropriate progress toward the
expected results and outcomes.
4) Providing the quality of service expected.
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C. Monitoring Activities May Include.
1) Periodic contractor reporting — Require the contractor to submit progress reports
or other appropriate data or reports, based on pre -defined criteria, and review the
contractor's reports for verification of services provided and adherence to the
contract. Substandard performance should be identified and addressed timely and
appropriately.
2) Invoice review — Compare billings with the terms agreed upon in the contract.
Ensure the costs being charged are within the contract parameters.
3) Other periodic contact with contractor — On-site visits to maintain contact with the
contractor to review progress on a regular basis. Good contract monitoring
includes a continuous dialogue with the contractor.
8.5 CONTRACT MONITORING -PAYMENT
A. Reviewing Invoices for Payment. Contract payment is the process by which the
contractor submits invoices for reimbursement for services and receives payments. The
contract manager must carefully review the contractor's request for payment to verify the
accuracy of all charges.
B. Considerations.
1) Are the hours/costs commensurate with the services or deliverables received?
2) Is the service period identified on the invoice; and, were the services rendered
prior to contract expiration?
3) Do the rates invoiced match the rates stated in the contract?
4) Has the necessary documentation been included to verify charges accurately? Is
there enough money remaining on the contract?
5) Reimbursable expenses. Below are the recommended reimbursable expenses:
(a) Travel
(b) Mileage
(c) Food
(d) Miscellaneous expenses
6) If charges are acceptable, the contract manager submits a claim approval form for
payment. Payment terms are 30 days from date of invoice.
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8.6 AMENDMENTS AND CHANGE ORDERS
A. Amendments. Amendments are changes to service contracts. Changes to contracts may
be processed as amendments, rather than new contracts, only if the changes are within the
general scope of the original contract.
B. Change Orders. A change order is the formal document that alters some condition of the
contract documents. The change order may alter the contract price, schedule of payments,
completion date, or the plans and specifications. Change Orders are changes to Public
Works Agreements and reflect additional work that must be completed to meet the
contract requirements and without which the work requested in the original contract
could not be completed. If a change order issued is truly due to unforeseen conditions,
with no change in the original scope, then a new competitive bid process is not required.
These situations should be distinguished from extra work which could stand on its own
and is outside and independent of the contract. Appropriate uses of change orders
include:
1) Scope. This may include adding, modifying or deleting tasks, services or
deliverables, or revising specifications. Changes to scope should be well
documented and include any cost increases or reductions associated with these
changes.
Changes that are outside the general scope of the contract are not appropriate to
award through contract amendments. Such changes would have the effect of
making the work performed substantially different from the work the parties
bargained of at the time the original contract was awarded.
2) Cost. If the cost of the contract is increased or decreased, document reasons for
change (e.g.: scope changes).
3) Term of Contract/Period of Performance. An extension to the contract end date is
the most common change to the period of performance. Minor modifications,
which do not materially affect the scope or cost of the contract, such as address
changes or staff changes do not require a formal amendment, but should be
documented in writing.
C. Public Works and Equipment Purchases under $50.000. Accumulated change orders up
to 5% of the original contract award amount or less than $50,000 may be approved by the
Department Director or their designee, as long as there is budget authority. Department
Director or their designee is authorized to approve public works contract change orders
until the total contract value meets or exceeds $50,000.
D. Public Works and Equipment Purchases over $50.000.
1) Accumulated change orders greater than 5% and up to 10% of the original
contract award amount, or greater than $50,000 but less than $300,000 may be
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approved by the City Manager or his or her designee, as long as there is budget
authority.
2) Accumulated change orders over $300,000 or greater than 10% of the original
contract award amount must be approved by the City Council. Such approval
establishes a new contract amount against which the above percentages apply for
subsequent change orders.
E. Processing Contract Amendments. NO CITY EMPLOYEE IS AUTHORIZED TO
VERBALLY AMEND A CONTRACT OR AUTHORIZE A CHANGE ORDER. All
contracts and change orders must be in writing, approved, and signed by the authorized
City official prior to the performance of any service, work, or purchase contained in the
amendment or change order. Failure to comply with this requirement may have serious
adverse consequences to the parties, City, and City employee.
F. Contract Amendment Approval.
1) Amendments that do not change the total value of the contract (i.e.: a new
contract expiration date) may be signed by the Department Head.
2) The City Manager or his or her designee is authorized to approve amendments up
to the accumulated value of which is up to 10% of the original contract award
amount or $299,999, whichever is less.
3) The City Council must approve amendments when the accumulated value is
greater than 10% for the original contract award amount. Such authorization
establishes a new contract amount, against which the above percentages apply for
subsequent amendments.
8.7 CONTRACT CLOSE-OUT AND TERMINATION
A. Contract Termination. Contracts may be terminated prior to the completion date of the
contract either for convenience of the parties, or for cause. Contact the City Attorney's
Office for guidance when considering a contract termination.
Contract termination should be done in writing and routed through the contract process
(refer to the contract for process).
B. Contract Close -Out Process. Invoices that are submitted after contract expiration may
still be paid if the following conditions apply:
1) Invoice or pay estimate must clearly show that services were performed prior to
contract expiration.
2) Sufficient funds existed prior to "close" out.
Note that every effort should be made to process invoices in a timely manner to eliminate
delays and extra steps in payment processing.
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C. Public Works Close -Out Process for Projects >$35,000. A "Notice of Completion of a
Public Works Contract" form shall be filed with the State Department of Revenue for
contracts $35,000 and above. Once the contract is complete it is critical that the Project
Manager (PM) complete the close-out process in a timely manner and stay on a schedule.
1) Project Acceptance Memo (completed by PM) 45 -day lien period starts from the
date of project acceptance.
2) Council Final Acceptance PM requests final acceptance from City Council.
3) Notice of Completion of Public Works Contract (completed and submitted to
Department of Revenue by PM. after acceptance by City Council).
4) Employment Security Release Letter (PM will receive from Employment
Security).
5) Department of Revenue Release Letter (PM will receive from Department of
Revenue).
6) Department of Labor & Industries Release Letter (PM will receive from
Department of Labor & Industries).
D. Final Steps — Releasing Retainage.
1) 5% Retainage — Once the above mentioned letters are received, the PM will
request the finance department to release retainage by memo along with a copy of
the letters received.
2) Retainage Bond — Once the above mentioned letters are received the PM will
release the bond, if additional retainage above the bond amount was retained then
the 5% Retainage release will apply also.
3) Escrow with bank — Once the above mentioned letters are received the PM will
request the bank to release the retainage held, if additional retainage above the
deposited amount was retained then the 5% Retainage release will apply also.
Whenever any valid lien has been filed against the retainage, the City may only
release that amount of the retainage which is in excess of the total amount of the
valid lien claims and an amount sufficient to defray the costs and attorney's fees
of the claimants in foreclosing the liens.
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TIPS & FAQs:
SECTION 1:
Acronyms:
• SOQ — Statement of qualifications
• RFQ — Request for Qualifications
• RFP — Request for Proposal
• ITB — Invitation to Bid (Formal Bid)
• ITQ — Invitation to Quote (Small works)
• MWDBE — Minority, Women and Disadvantaged Business Enterprise
• CIP — Capital Improvement Plan
What constitutes an urgent need:
o Question: The garage door at Public Works is stuck closed. The door must be fixed
immediately. What do we do?
■ Answer: This is defined as an "urgent need."
o Question: Our City water tank has been badly damaged and water pressure is threatened.
Is this an emergency?
• Answer: This is not a natural disaster, but does "present a real, immediate threat" and
makes competitive bidding impractical. This would be treated as a "Declared
Emergency." Follow the Declared Emergency Process.
Note: emergencies involving FEMA reimbursements or work in critical areas may have different
or additional requirements. Please contact the City Attorney for Finance Department with
assistance with either emergency.
SECTION 2:
Tips:
• How do I find what contracts the state has available to use?
o For State contracts:
www.des.wa. gov/services/contractingpurchasing/currentcontracts/pages/default. asix
o For DIS contracts:
www.des.wa. gov/services/contractingi)urchasing/ITcontracts/ITmastercontractspages/
default.aspx
• Some vehicle and heavy equipment purchased through the state do require a state
purchase order prior to purchase.
• State contracts typically have good pricing. However, keep in mind that they may not
always be the lowest cost option. These contracts offer a good starting point in the quote
process.
• When purchasing telecommunications and data processing (computer) equipment or
software costing above $15,000, the City may follow a "competitive negotiation" process
as an alternative to the bid process. RCW 39.04.270(3) allows purchases through use of
an alternative competitive negotiation process requiring, at minimum, the following
steps:
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o A request for proposals (RFP) must be published in the newspaper of general
circulation at least 13 days before the last date on which the proposals will be
received.
o The RFP must identify significant evaluation factors, including price and their
relative importance.
o The City must provide reasonable procedures for technical evaluation of the
proposals, identification of qualified sources and selection for awarding the contract.
o The award must be made to the qualified bidder whose proposal is "most
advantageous" to the City. The City may reject all proposals for good cause and
request new proposals.
SECTION 3:
• Tips:
• Sales Tax Exemptions:
o Question: does the exemption from the sales and use tax for labor and services on a
City street project apply if a private contractor does the work?
■ Answer: Yes. It makes no difference, for the purposes of the exemption, whether
the City does the work or has it done by someone else.
• Advertising requirements are found in the following codes:
o RCW 35.23.352(1)—Public Works
o RCW 39.04.155(2)(a) —Public Works Small Works Roster
• Access to the Small Works Roster is available at: www.mrscrosters.ore
• When the City executes any public work exceeding $5,000 by any means or method other
than by contract or small works roster, it must keep a full, true and accurate account and
record of the costs of executing such work as prescribed in RCW 39.04.070. The Public
Works Record form to be used is prescribed by the BARS manual is found in the
appendix.
• Prior to commencement of the public work project, the finance department, upon request,
will build a project number and account numbers for use in coding all costs associated
with the project.
• The statutory requirement of 13 -days advertising for a public works project in formal bid
process does not apply to small works roster or limited public works process; advertising
is not required. However, depending on the complexity of the project, it is suggested that
7 to 14 days (or longer) should be allowed for contractors to submit a proposal so they
have adequate time to properly research the specifications.
• Invitations to Bid:
o Per RCW 39.04.155(2)(c) quotations may be invited from all appropriate contractors
on the roster. As an alternative, quotations may be invited from at least five
contractors on the roster who have indicated the capability of performing the kind of
work being contracted, in a manner that will equitably distribute the opportunity
among the contractors on the roster.
o "Equitably Distribute" means that the City may not favor certain contractors on the
roster over other contractors on the roster who perform similar services.
o If the estimated cost of the work is $150,000 to $300,000, the City may choose to
solicit bids from less than all appropriate contractors on the roster but must notify the
remaining contractors on the roster that quotations on the work are being sought. The
City has the sole option of determining whether this notice to the remaining
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contractors is made by: Publishing notice in a legal newspaper in the general
circulation in the area where the work is to be done; Mailing a notice to these
contractors; or Sending a notice to these contractors by facsimile or email.
Public Works that are federally funded have additional advertisement requirements.
Term: Equipment/Material Cost + Cost of Installation = Project Cost.
SECTION 6:
• Tips:
• Advertising requirements are found in the following codes:
o RCW 39.80.030—Professional Services
• Examples of Professional Services:
o Programmers, accountants, attorneys, physicians, consultants, graphic artists.
• Examples of A&E Services:
o Engineers, land surveyors, architects and landscape architects.
• RFP/Q:
o Question: State law does not require any formal competition for services. Why do I
have to do an RFP/Q?
■ Answer: It's true, state law does not require competition for services. However,
City policy is more restrictive than that of the state.
• Example of General Services:
o Customized accounting software and ongoing support services.
o Cemetery, landscaping, building and grounds maintenance contracts.
o Contracts for snow and ice removal.
o Garbage collection and disposal (solid waste collection and disposal contracts do not
have to be bid). An RFQ/RFP process as noted in RCW 35.21.156 can be used.
o Maintenance contracts for office equipment, including computers.
o Official newspaper [must call annually forbids per RCW 35.23.352(7)].
RFP and RFQ:
o Question: What is the difference between and RFP and RFQ?
■ Answer: An RFP will typically focus on a specific project and includes price as
one of the submittal requirements and evaluation factors.
■ An RFQ does not have price/cost considerations and is dependent on
qualifications only. An RFQ is commonly issued for architects and engineers per
RCW 39.80. An RFQ can be used for specific projects when hiring an A&E firm,
but will not include price/cost as one of the evaluation factors.
SECTION 7:
• Tips:
• All public works, including maintenance when performed by contract, shall comply with
RCW 39.12.020 as it pertains to prevailing wage requirements. According to RCW
39.04.010(4) there are clearly two categories of work that must comply with prevailing
wage requirements: (1) Public Works and (2) Maintenance when performed by contract.
• Prevailing Wages:
o Question: do I have to include the entire Prevailing Wage rates in the contract as an
attachment or can I just put in a link to the L&I website?
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• Answer: Per RCW 39.12.030 all bid specifications and contracts shall include a
list of the applicable wage rages.
If federal funds are involved, all bid specifications and contracts shall include the Davis -
Bacon Act.
SECTION 8:
• Tips:
• Renewals vs. Year to Year Contracts:
o Keep in mind that including additional periods and/or renewal language in your
solicitation and/or contract document provides for greater continuity with terms and
conditions such as pricing, scope and availability. More often than not, contractors
will give discounts for longer term contracts.
o To enter into a series of year -t -year (or stand-alone) contracts, opens up the terms and
conditions for contractors to modify their price and availability. Stand-alone
contracts require a competitive process at each contract period and therefore may
result in higher costs to the City.
o However, if a contract includes "options to renew" language, the contract must be
routed to include all future renewals of the "potential value" of the contract.
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SOURCES:
• City of Pasco Municipal Code
• Washington State RCWs
• Municipal Research and Services Center
• The Bidding Book
TERMS:
The following terms are often used interchangeably. We typically use these terms as described
below.
• Purchasing, Procurement:
o Purchasing is the act, function and responsibility for the acquisition of equipment,
materials, supplies and services. The term describes the process of buying
o Procurement includes all functions that pertain to the acquisition, including description of
requirements, selection and solicitation of sources, preparation and award of contract and
all phases of contract administration.
• Vendor, Contractor and Consultant:
o Vendor is typically used when referring to a supplier, one who sells goods, materials or
supplies.
o Contractor is typically used when referring to a construction or maintenance company.
Can also apply to an individual or business having a contract with the City.
o Consultant is typically used when working on a Professional Service Contract. The term
means a person with education and/or experience which uniquely qualifies them to
perform some specialized services.
Bid, Quote, Proposal:
o Bid is an offer submitted by a contractor in response to an invitation to bid (ITB) or
advertisement. Typically, bids result in contracts awarded to the lowest responsive,
responsible bidder.
o Quote is a statement of prices, terms of sale and description of goods or services offered
by a vendor to the City. Commonly used in more informal solicitations.
o Proposal is the document submitted by the offer or in response to an RFP/Q. Proposals
allow contract award based on factors other than cost and may result in negotiations.
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APPENDIX A
COOPERATIVE PURCHASING AGREEMENTS
(Pending)
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APPENDIX B
SOLE SOURCE WORKSHEET
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SOLE SOURCE WORKSHEET
Sole source purchases are defined as clearly and legitimately limited to a single supplier. Sole source
purchases are normally not allowed except when based upon strong technological grounds such as
operational compatibility with existing equipment and related parts or upon a clearly unique and cost
effective feature requirement.
Requisition Item:
Prior Purchase Order Number (if item had been approved previously):
Please describe the items and its function:
2. This is a sole source because:
Requisition No.
❑ sole provider of a licensed or patented good or service
❑ sole provider of items that are compatible with existing equipment, inventory, systems,
programs or services
❑ sole provider of goods and services for which the City has established a standard
❑ sole provider of goods or services that will meet the specialized needs of the City or
perform the intended function (please detail below or in an attachment)
❑ the vendor/distributor is a holder of a used item that would represent good value and is
advantageous to the City (please attach information on market price survey, availability,
etc.)
3. What necessary features does this vendor provide which are not available from other vendors?
Please be specific.
4. What steps were taken to verify that these features are not available elsewhere?
❑ Other brands/manufacturers were examined (please list phone numbers and names, and
explain why these were not suitable).
❑ Other vendors were contacted (please list phone numbers and names, and explain why
these were not suitable).
5. Sole source vendor certifies that the City is getting the lowest price offered for the item.
Certification of Need
This recommendation for sole source is based upon on objective review of the product/service required
and appears to be in the best interest of the City. I know of no conflict of interest on my part of personal
involvement in any way with this request. No gratuities, favors or comprising actions have been taken.
Neither has my personal familiarity with particular brands, types or equipment, materials or firm been a
deciding influence on my request to sole source this purchase.
M
Date:
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