close
When a procurement is subject to federal procurement requirements, the city's procurement procedures must be followed. In addition, the city must follow the provisions of this chapter. In the event of a conflict, this chapter and the requirements specified in 2 CFR 200.318 through 200.326, as amended from time to time, will prevail.
(Ord. 808 § 2, 2019)
Consideration will be given to the most economical approach for purchases, including, but not limited to, the following options:
A. 
Consolidating or breaking out purchases;
B. 
Lease versus purchase options;
C. 
State and local intergovernmental or inter-entity agreements for procurement or use of common or shared goods or services;
D. 
Use of federal excess and surplus property in lieu of purchasing new equipment and property;
E. 
Use of value engineering clauses in contracts for construction projects;
F. 
Avoidance of duplicative or unnecessary purchases; and
G. 
Any other appropriate analysis.
(Ord. 808 § 2, 2019)
A. 
Contracts will only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
B. 
The city will not award to any person or firm that is debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities.
(Ord. 808 § 2, 2019)
The city will maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
(Ord. 808 § 2, 2019)
A. 
All procurement transactions will be conducted in a manner providing full and open competition consistent with the standards of this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bid, or requests for proposals must be excluded from competing for such procurements.
B. 
Situations considered to be restrictive of competition are prohibited. Such situations include, but are not limited to, the following:
1. 
Placing unreasonable requirements on firms in order for them to qualify to do business;
2. 
Requiring unnecessary experience and/or excessive bonding;
3. 
Noncompetitive pricing practices between firms or between affiliated companies;
4. 
Noncompetitive contracts to consultants that are on retainer contracts;
5. 
Organizational conflicts of interest;
6. 
Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other relevant requirements of the procurement; and
7. 
Any arbitrary action in the procurement process.
(Ord. 808 § 2, 2019)
No geographical preference is permitted in any procurement that uses federal funds, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(Ord. 808 § 2, 2019)
All city procurements utilizing federal funds must comply with the following provisions:
A. 
Solicitations must incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description may not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product, or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications will be avoided if possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equivalent" description may be used. The specific features of the named brand which must be met must be clearly stated.
B. 
Solicitations must identify all requirements which the bidders must fulfill and all other factors to be used in evaluating bids or proposals.
C. 
The city must ensure that all prequalified lists of persons, firms, or products are current and include enough qualified sources to ensure maximum open and free competition.
D. 
The city must not preclude potential bidders from qualifying during the solicitation period.
(Ord. 808 § 2, 2019)
A. 
Procurement by Micro-Purchase Method. In addition to all other requirements contained in this chapter, to the extent practicable, micro-purchases of supplies or services, as defined by 2 CFR 200.67 and as amended from time to time, must be distributed equitably among qualified vendors.
B. 
Procurement by Small Purchase Method. In addition to all other requirements contained in this chapter, price or rate quotations for small purchases defined as those purchases of services, supplies or other property, that do not exceed the simplified acquisition threshold as set forth in 2 CFR 200.88 and as amended from time to time, must be obtained from an adequate number of qualified sources.
C. 
Procurement by Formal Bidding. Public projects using federal funds which exceed the simplified acquisition threshold must use the formal bidding (sealed bid) method set forth in this chapter. In addition, the following provisions also apply:
1. 
A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in the bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of.
2. 
Any or all bids may be rejected if there is a sound documented reason.
D. 
Requests for Qualifications. Requests for qualifications (RFQ) may only be used in the procurement of architectural or engineering services. The RFQ method may not be used to procure other types of services, even though architectural or engineering firms may be a potential source to perform the work.
(Ord. 808 § 2, 2019)
The city must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. Affirmative steps include:
A. 
Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
B. 
Assuring that small and minority businesses and women's business enterprises are solicited whenever they are potential sources;
C. 
Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women's business enterprises;
D. 
Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women's business enterprises;
E. 
Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
F. 
Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in subsections A through E of this section.
(Ord. 808 § 2, 2019)
A. 
Time and Materials Contracts. The city may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. If such a contract is used, the city will assert a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.
B. 
Cost or Price Analysis. For procurements in excess of the simplified acquisition threshold, the city must perform a cost or price analysis prior to receiving bids or proposals.
C. 
Negotiation When No Competition. The city must negotiate profit as a separate element of the price for each contract for which there is no price competition, and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.
D. 
Prohibited Method of Contracting. Cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.
(Ord. 808 § 2, 2019)
Each contract that the city enters into as a result of a procurement subject to this chapter, must contain all applicable provisions described in Appendix II to Part 200-Contract Provisions for non-Federal Entity Contracts Under Federal Awards.
(Ord. 808 § 2, 2019)
No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the city may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. There is no real or apparent conflict of interest if the financial interest was not substantial or the gift was an unsolicited item of nominal value. When determining whether a financial interest is "not substantial" or if an unsolicited item is of "nominal value," the materiality standards set forth in the California Code of Regulations (2 CCR Section 18700, et seq.) pursuant to the California Political Reform Act (Government Code Section 81000, et seq.) shall govern.
(Ord. 808 § 2, 2019)