ARTICLE X.
CITY PROCUREMENT CODE1

Sec. 2-159 In general.

(a) The city manager shall be the purchasing agent for the City of Kingman. Unless otherwise required by state law, no purchase or contract for services of any kind or description, payment for which is to be made from funds of the city, shall be made by the purchasing agent, or any officer, employee or agent of the city, except in the manner set forth in this article.

(b) The city manager shall issue direction to staff providing for a centralized purchasing procedure, a procedure for disposition of surplus property and a periodic inventory of city property.

(c) This article shall apply to the purchase, rent or lease of non-construction-related supplies, services and personal property for the City of Kingman. For requirements for the procurement of construction services and related materials and architecture and engineering services, see A.R.S. § 34-201, et seq.

(d) Where applicable, city purchases of, or contracts for, goods or services shall abide by federal purchasing requirements when funded with federal resources; including but not limited to:

(1) The Davis-Bacon Act (29 CFR Part 5).

(2) Suspension and disbarment (2 CFR Part 176).

(e) The artificial division of purchases to avoid the bidding process is prohibited.

(f) The use of city procurement resources for personal benefit is prohibited.

(g) Except as otherwise provided in this article, city purchases of, or contracts for, goods or services, other than in connection with the construction of public buildings and public works improvements, shall be made according to the following procedure:

(1) Under $5,000.00. Whenever any contemplated purchase of, or contract for, goods or services is for the sum of less than five thousand dollars ($5,000.00), the purchasing agent may purchase the item or items as needed without further formality.

(2) $5,000.00 to $50,000.00. Whenever any contemplated purchase of, or contract for, goods or services is for the sum of at least five thousand dollars ($5,000.00) but not more than fifty thousand dollars ($50,000.00), the purchasing agent shall solicit at least three (3) written proposals for the item or service. The purchasing agent shall document the substance of the proposals and shall procure the goods or services from the vendor whose proposal best meets the needs and interests of the city, in terms of cost, specifications and qualifications of the vendor.

(3) $50,000.00 and over. Whenever any contemplated purchase of, or contract for, goods or services is for the sum of fifty thousand dollars ($50,000.00) or more, the purchasing agent shall subject the purchase or contract to the formal competitive bidding process in accordance with section 2-161.

(4) When council approval is required. No contract of fifty thousand dollars ($50,000.00) or more shall be let except with the approval of the common council. Whenever any contemplated purchase or contract for services is for the sum of fifty thousand dollars ($50,000.00) or more, the purchasing agent shall present the bids to the council for approval, and advise the council of the advantages or disadvantages of contract and bid proposals.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Sec. 2-160 Exceptions to the formal bidding requirement.

In the following instances, any applicable formal bidding requirement is waived; provided, that purchases or contracts of fifty thousand dollars ($50,000.00) or more shall be subject to approval by the common council.

(a) Council discretion. Whenever competitive bidding would be otherwise required under this article, if it is determined that the use of competitive sealed bidding is either not practicable or not advantageous to this city, the purchasing agent shall prepare a written report to the common council and the council may authorize an alternative procedure, taking into consideration the need to provide for fair competition and, at the same time, the need to serve the best interests of the city.

(b) Emergency purchases. In case of an emergency which requires immediate purchases of supplies or services and time is of the essence, the mayor shall be empowered to authorize the purchasing agent to purchase or secure services without complying with procedures as set forth above. A full report in writing of the circumstances of any emergency purchase shall be filed by the purchasing agent with the common council at its next meeting.

(c) Sole source. Contracts may be awarded for goods and services covered by this article without competitive bidding if the purchasing agent determines in writing that there is only one source for the required goods or services. The purchasing agent may require the submission of cost or pricing data in connection with an award under this section. Sole source procurement shall be avoided, except when no reasonable alternative sources exist. A written determination of the basis for the sole source procurement shall be included in the contract file.

(d) Professional services. The purchasing agent may suspend the application of section 2-159 in the employment of professional services. For purposes of this section, “professional services” means the furnishing of labor, time or effort by a contractor or subcontractor engaged in an activity of special skill or experience which does not involve the delivery of a specific end product other than required reports and performance directly related to his/her specialized field or occupation. Such services shall include, but not be limited to, the following: physicians, attorneys, expert witnesses, appraisers, consultants, maintenance agreements and technical support, etc.

(e) Cooperative purchasing. Section 2-159 shall not apply to purchases made by, through or with any United States Federal, state, or political subdivisions thereof. The city may make purchases or award contracts for services without a formal bidding process whenever other governmental units have done so pursuant to competitive bidding for the same item or service if, in the opinion of the purchasing agent, a separate bidding process is not likely to result in a lower price for such items or services.

(f) Petroleum products. Unless required by the council, this article shall not apply to the purchase of petroleum products, including gas, oil and diesel fuel.

(g) Used items. The purchasing agent may purchase used items without competitive bidding.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1598, § 1, 11-19-07; Ord. No. 1732, § 1, 6-19-12)

Sec. 2-161 Bidding.

Whenever formal bidding is required under this article, the purchasing agent and all parties contracting with the city for the goods and services covered by this article shall follow the procedure hereinafter set forth in relation to all bidding.

(a) The purchasing agent shall cause a notice of invitation for bids to be published in one issue of a newspaper of general circulation within the city no less than ten (10) days prior to the date set for receipt and opening of the bids. All notices shall state the time and place for receipt of bids, the time and place for opening and where the invitation for bids and a complete set of specifications may be obtained. The notice shall also include a general but brief description of the articles to be purchased or the services to be performed in sufficient detail to enable bidders to determine their desire and ability to bid. In addition, the purchasing agent shall post the notice of invitation for bids in the city complex and may also mail a copy of the notice and invitation for bids to responsible prospective suppliers.

(b) All bids shall bear the original signature of a responsible agent of the bidder, shall be physically delivered to the city clerk by mail or other means before the time set for receipt of bids, shall be submitted in a sealed envelope or other container and shall be identified as bids for specified items or services on the envelope or container. Unsealed bids or bids delivered by facsimile or other electronic means shall not be considered.

(c) Bids shall be opened publicly at the time and place designated in the invitation for bids. The amount of each bid, and such other relevant information as may be specified by rule, together with the name of each bidder shall be recorded. This record shall be open to public inspection at the bid opening in a manner prescribed by rule. The bid documents in their entirety shall not be open for public inspection until a contract is brought to council for approval, at which time all bid materials shall be public information in accordance with section 2-164.

(d) A tabulation of all bids received shall be posted for at least five (5) days in the city complex for public inspection.

(e) The purchasing agent may require bid guarantees for up to five (5) percent of the amount of the bid. The bid guarantee shall consist of a certified check, cashier’s check, letter of credit or surety bond and shall guarantee that the contractor or bidder will enter into a contract or provide the product in accordance with the bid, and shall constitute liquidated damages in the event of failure or refusal to enter into the contract or provide the product. The bid guarantee shall be returned to any bidder whose proposal is not accepted, and to the successful bidder upon the execution of a satisfactory contract, or delivery of product or service. The purchasing agent under section 2-159(g)(1) and (2), and the common council under section 2-159(4), may waive minor informalities and may reject any and all bids and parts of all bids and, in its discretion, readvertise or re-solicit bids or delay award.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Sec. 2-162 Determination of lowest responsible bidder.

Unless the council or purchasing agent shall exercise the right of rejection as provided by section 2-161, the purchase or contract shall be made from or with the lowest responsible bidder for the entire purchase or contract or for any part thereof. In determining the lowest responsible bidder, the council and purchasing agent shall consider:

(a) The ability, capacity and skill of the bidder to perform the contract or provide the goods or services required.

(b) Whether the bid is materially responsive to the invitation for bids and whether the bidder can otherwise perform the contract or provide the goods or services promptly or within the specified time, without delay or interference.

(c) The quality of performance of previous contracts with the city and/or other government agencies; i.e., previous and current demonstration of the bidder’s ability to complete projects in a timely manner, within the bid price submitted and in accordance with bid specifications and contract terms and conditions.

(d) The previous and existing compliance by the bidder with laws and ordinances of the city.

(e) The financial resources and ability of the bidder to perform the contract.

(f) The quality, availability and adaptability of the supplies or services.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Sec. 2-163 Performance and payment bonds.

In an invitation for bids, the purchasing agent may require a performance and/or payment bond for such amount as he may deem sufficient to secure the execution of the contract for the best interest of the city. An acceptable performance or payment bond shall consist of a certified check, cashier’s check, letter of credit or surety bond. Failure to post the required performance and/or payment bond constitutes a failure to execute a satisfactory contract and shall result in the forfeiture of the bidder’s bid guarantee.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Sec. 2-164 Public information.

All bids and materials submitted in connection with bids or informal proposals shall be open to the public once a successful bid is to be brought to council for approval or the decision to purchase has been made. Except to the extent the bidder specifically designates in a timely response to the invitation for bids and the purchasing agent concurs, trade secrets or other proprietary data contained in the bid documents or material submitted for proposal shall be public information once a successful bid is to be brought to council for approval or the decision to purchase has been made. For purposes of this article, the terms “trade secrets” and “proprietary data” shall be limited to plans or processes, tools, mechanisms or compounds known only to the bidder and those of his employees with the “need to know.” The terms shall not include any information, including but not limited to pricing and promotional data and literature, submitted in direct response to an invitation for bids.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Secs. 2-1652-177. Reserved.

Sec. 2-178 Mistakes in bids.

(a) A bidder may modify or withdraw its bid at any time before bid opening if the modification or withdrawal is received in writing before the time and date set for bid opening in the location designated in the invitation for bids for receipt of bids. A bidder or the bidder’s authorized representative may withdraw the bid in person if, before the time and date set for bid opening, the identity of the person requesting withdrawal is established and that person signs a receipt for the bid.

(b) After bid opening, a bid mistake may not be corrected or withdrawn, except that the bid may be withdrawn, in which event the bidder shall forfeit any bid guarantee.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Sec. 2-179 Protests and appeals.

Any bidder wishing to protest the bidding procedure shall file a written objection setting forth the grounds for the protest with the city clerk within five (5) days of the bid opening. The city manager shall review and decide on the protest as soon as practicable, but not less than ten (10) days after the protest is filed. The city manager shall immediately notify the objecting bidder of his determination. The objecting bidder may appeal the city manager’s decision by filing a written notice with the city clerk within five (5) days of the decision. Council shall conduct a hearing at the next regular or special meeting.

(Ord. No. 1239, § 2, 12-20-99; Ord. No. 1732, § 1, 6-19-12)

Secs. 2-1802-189. Reserved.2


1

Editor’s note: Section 1 of Ord. No. 1239, adopted Dec. 20, 1999, repealed Art. X, purchasing policy, and section 2 enacted similar provisions to read as herein set out. Former Art. X contained §§ 2-159—2-179 and derived from Ord. No. 591, adopted Oct. 21, 1985; Ord. No. 596, adopted Jan. 20, 1986; Ord. No. 693, adopted Dec. 7, 1987; Ord. No. 746, adopted June 5, 1989; Ord. No. 828, adopted June 4, 1990; Ord. No. 829-R, adopted June 18, 1990; Ord. No. 890, adopted Dec. 2, 1991; and Ord. No. 1070, adopted Feb. 5, 1996.


2

Editor’s note: Ord. No. 1734, § 1, adopted July 17, 2012, repealed § 2-180 as derived from Ord. No. 1694, § 1, adopted Dec. 7, 2010, and Ord. No. 1732, § 1, adopted June 19, 2012.