Chapter 41.40
METHODS AND PROCEDURES FOR SOURCE SELECTION
Sections:
41.40.010 Informal solicitations for purchases not exceeding $25,000.
41.40.020 Solicitations for purchases of $25,000 or more.
41.40.030 Nonresponsive bid definition.
41.40.040 Responsible vendor definition.
41.40.050 Solicitation irregularities.
41.40.060 Exemptions to competitive solicitation.
41.40.070 Waiver process to formal competitive bids.
41.40.090 Protested solicitations or awards.
41.40.110 Disagreements about recommendations.
41.40.010 Informal solicitations for purchases not exceeding $25,000.
Any purchase of supplies and services less than $25,000 may be made in accordance with the purchasing procedures set forth in this chapter. Purchases shall not be artificially divided to circumvent the solicitation process. If numerous items are being purchased from one vendor on one order, the aggregate price is the determining factor with regard to solicitation procedures.
(a) Purchase Authority and Process.
(1) The Purchasing Manager or employees with delegated purchasing authority shall have the authority to purchase without formal competition, for the purchase of any materials, professional services, services or construction amounting to more than $5,000 and not exceeding a cost of $25,000. If multiple purchases will be made during one fiscal year with an aggregate amount to warrant annual contracting, the Purchasing Manager may require the department/division to provide data for a formal competitive solicitation, as is in the best interest of the City.
(2) Such negotiated purchases shall be made in the open market; whenever practical or advantageous, the Purchasing Manager or designated representative shall attempt to obtain quotes from a minimum of three vendors. Negotiated purchases of materials, services or construction shall be awarded to the vendor supplying the lowest responsible and responsive quote. The names of the vendors submitting quotations, the amount of each quotation and the date shall be documented and maintained as a public record.
(3) The purchasing procedures adopted pursuant to this chapter shall authorize the purchase of materials, services or professional services in the open market by Department Directors and Division Managers or their designated representatives of other departments of the City; provided, that no such purchase shall exceed the cost of $5,000 without competition.
(4) No contract shall be artificially divided so as to constitute a small purchase.
(5) The Purchasing Division encourages the solicitation process to increase competition and value for the City. Upon request the Purchasing staff will help facilitate the quote process.
(Res. 04-12 (§ 10.1), 1-16-12)
41.40.020 Solicitations for purchases of $25,000 or more.
• Competitive Sealed Bids/Proposals Required. Expenditures for supplies, materials and equipment or any contract obligating the City of Grand Junction of $25,000 or more and all major capital expenditures shall be purchased under formal competitive sealed bid or competitive proposal procedures.
• Public Notice Required. Purchases of commodities and/or services estimated to cost $25,000 or more shall be published in a general circulation newspaper in the City of Grand Junction and be published at least five working days preceding the last day set for the receipt of solicitations. Public notice of solicitations shall state the place, date and time of the bid opening.
• Public Records. Purchasing Division is responsible for record keeping. All submittals, except confidential or proprietary information as defined by law, are public records and must be retained as such. Documents will be retained electronically through the City’s records management system.
• Definition – Competitive Sealed Bid (Formal). A competitive sealed bid is a method of source selection for a procurement of goods and/or commodities estimated to be $25,000 or more. Award is generally made to the lowest responsive and responsible bidder whose bid complies with the specifications contained in the contract (bid) documents. This means that bid price is the decisive criterion for determining the vendor who shall receive the award.
• Definition – Competitive Sealed Proposal (Formal). A competitive proposal (request for proposal) is a method of source selection for a procurement estimated to cost $25,000 or more. Award is generally to the respondent whose offer is considered the best when compared and evaluated against all other offers. Cost is not the primary focus of proposal award. Competitive proposal solicitations are used for the procurement of supplies or services that require a high degree of professional skill and expertise, or when looking for the solution to a problem. The qualification based selection process shall be used for the retention of design professionals (architects and engineers).
(a) Competitive Sealed Bid Procedure.
(1) Invitation for Bids (IFB). An invitation for bids shall be issued and shall include specifications and all contractual terms and conditions applicable to the procurement, as well as the bid opening place, time and date.
(2) Specifications. Specifications shall be made available to all interested parties as stated in the IFB. If for any reason whatsoever it is necessary to change the specifications or any other of the formal data and there is adequate time as determined by the Purchasing Manager prior to the date of bid opening, an addendum shall be issued setting forth the changes. Specification changes must allow adequate notice and mailing time and shall be coordinated between user department and Purchasing. This addendum shall be sent to everyone known to have received a copy of the IFB. In certain cases the bid opening may be postponed to allow adequate time for respondents to prepare their bid based on specification changes. If there is not adequate time, the IFB shall be canceled and a new bid process initiated.
(3) Bonding. Bid bonds (five percent to 10 percent) and 100 percent performance and payment bonds are required on any City construction project of $50,000 or more or as the Purchasing Manager and/or Department Director deems advisable to protect the City’s interests. Bonding for service contracts shall occur at the discretion of the Purchasing Manager or the Department Director of the using agency.
(4) Bid Opening. The opening of sealed bids shall be a public formal procedure. Bids shall be opened by the Purchasing Manager or his designated representative, at the time and place specified in the invitation for bids. The amount of each bid and such relevant information as the Purchasing Manager or his designated representative deems appropriate, together with the name of each bidder, shall be recorded. Bids must be received prior to the specified time as established in the IFB. Bids received after the specified deadline may be immediately returned to the nonresponsive vendor unopened.
(5) Bid Submission and Bid Evaluation. Bids shall be unconditional and submitted without alteration or correction except as authorized in this subsection. Bids shall be evaluated based on the requirements set forth in the IFB, which may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery and suitability for a particular purpose. Those criteria that shall affect the price and be considered in evaluation for award shall be objectively measurable, such as discounts, allowances, transportation costs and total or life cycle costs. The IFB shall set forth the evaluation criteria to be used.
(6) Correction or Withdrawal of Bids. Correction or withdrawal of inadvertently erroneous bids before and after a bid opening may be permitted in accordance with this subsection. Mistakes discovered before the bid opening may be modified or withdrawn by written, e-mail, or fax notice received in the office designated in the IFB prior to the time set for the bid opening. After the bid opening, corrections in bids shall be permitted only to the extent allowable in the bid documents and that the bidder can show by clear and convincing evidence that the mistake of a nonjudgmental character was made, the nature of the mistake and the bid price actually intended. Except for the foregoing, after the bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the City or fair competition shall be permitted. In lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if: (i) the mistake is clearly evident on the face of the bid document, but the intended correct bid is not similarly evident; or (ii) the bidder submits evidence which clearly and convincingly demonstrates a mistake was made. All decisions to permit the correction or withdrawal of bids shall be supported by a written determination made by the Purchasing Manager or his designated representative.
(7) Award. Generally, an award shall be made by written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the IFB. The City does not have a local preference policy. However, City Administration and City Council reserve the right to review and award bids at their discretion to responsive and responsible companies which may or may not be the low bidder. In the event the low responsive and responsible bid for a construction project exceeds available funds or the engineer’s estimate, the Purchasing Manager or his designated representative is authorized, when time and economic considerations preclude resolicitation of work of a reduced scope, to negotiate an adjustment of the bid price with the low responsible and responsive bidder in order to bring the bid within the amount of available funds. Any such adjustments shall be based only on eliminating independent deductive items specified in the IFB. In the purchase of supplies or services pursuant to this section of whatsoever nature or character amounting in value to $50,000 or more, the Purchasing Manager or his designated representative shall make report and transmit the bids to the next regular session of City Council with recommendation concerning acceptance or solicitation analysis. The City Council shall thereupon approve or disapprove the recommendation of the Purchasing Manager or his designated representative.
(b) Multi-Step Sealed Bidding. When it is considered impractical to initially prepare a purchase description to support an award based on price, a request for information, RFI, may be issued requesting the submission of unpriced offers to be followed by an IFB limited to those bidders whose offers have been determined to be technically acceptable under the criteria set forth in the first solicitation.
(c) Competitive Sealed Proposal/Competitive Negotiation Process. A contract for supplies or services for $25,000 or more may be entered into by use of the competitive sealed proposal/competitive negotiations method when: (1) the Purchasing Manager or his designated representative determines that the complex nature or technical details of a particular procurement make the use of competitive sealed bidding either not practical or not advantageous to the City; (2) specifications cannot fairly or objectively be prepared as to permit competition in the invitation for bids; (3) high technology and electronic equipment is available from a limited number of sources; or (4) specifications cannot practically be prepared except by reference to specifications of the equipment of a single source of supply.
(1) Requests for Proposals (RFP). Proposals shall be solicited through a request for proposals process.
(2) Receipt of Solicitations. No proposals shall be opened until the time designated in the proposal document or addenda. A tabulation/abstract of solicitations shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered.
(3) Evaluation Factors. Proposal evaluation criteria should measure how well each offeror meets the desired performance requirements established before proposals are received. Final consideration for awarding of contract shall not be based solely on price. A combination of qualifications, past experience, demonstrated successes, references, fees and costs, capacity to fulfill all requirements of the contract and other qualifying considerations shall be considered for evaluation purposes.
(4) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of classification to assure full understanding of, and conformance to, the solicitation requirement. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers.
(5) Award. Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the City, taking into consideration price and evaluation factors set forth in the request for proposals. No other factors or criteria shall be used for this evaluation. The contract file shall contain the basis on which the award was made. In the purchase of supplies or services amounting in value to $50,000 or more, the Purchasing Manager or his designated representative shall make report and transmit the offers to the next regular session of City Council with recommendation concerning acceptance or rejection thereof. City Council shall thereupon approve or disapprove the recommendation of the Purchasing Manager or his designated representative. If the value of the award is between $25,000 and $50,000, the Purchasing Manager or his designated representative shall make report and recommendation and transmit same to the City Manager to approve or disapprove the award. If the value of the award is between $15,000 and $25,000, the Purchasing Manager or his designated representative shall make report and recommendation and transmit same to the appropriate Department Director or designee to approve or disapprove the award.
(Res. 04-12 (§ 10.2), 1-16-12)
41.40.030 Nonresponsive bid definition.
A responsive bid is one that is in substantial conformance with the requirements of the IFB. Bidders who substitute their standard terms and conditions for that of the City’s bid documents or who qualify their bids in such a manner as to nullify or limit their liability to the City are nonresponsive bidders.
(a) Determination of Nonresponsive. The following are examples of nonresponsive bidders:
(1) A bidder who fails to deliver a bid prior to the specified place, time and date as shown on the IFB. Such is considered late and the bid shall not be opened.
(2) A bidder who fails to conform to required delivery schedules as set forth in the bid documents or in the permissible alternatives.
(3) A bidder who qualifies prices in such a manner that the firm’s bid price cannot be determined (“price in effect at time of delivery”).
(4) A bidder who fails to offer goods or services that comply with the specifications of the bid.
(5) A bidder who makes the purchasing authority the responsible party for determining that the bidder’s products conform to the specifications.
(6) A bidder who fails to furnish bid surety.
(7) A bidder who limits the rights of the City under any contract clause.
(b) Appeal. When a bid is declared nonresponsive, the City purchasing rules and regulations require that the bidder be notified and given an opportunity to appeal that determination. If he believes that the nonresponsive determination was erroneous, arbitrary or capricious, the bidder has the right to protest according to the rules and regulations for protested solicitations or awards contained herein (GJMC 41.40.090).
(Res. 04-12 (§ 10.3), 1-16-12)
41.40.040 Responsible vendor definition.
A responsible vendor is a person who has the capability in all respects to perform fully the contract requirements and the tenacity, perseverance, experience, integrity, reliability, capacity, facilities, equipment and credit which shall assure good, full and faithful performance.
(a) Determination of Nonresponsibility. The following are reasons a bidder may be declared non-responsible:
(1) The bidder is not a regular dealer or supplier of the goods or services offered;
(2) The bidder does not have the ability to comply with the required delivery or performance schedule;
(3) The bidder does not have a satisfactory record of performance as documented by the requesting agency’s Department Director or designated representative or as referenced by other jurisdictions or customers;
(4) The bidder does not have a satisfactory record of integrity or the bidder is currently disbarred or suspended by the State of Colorado or other Colorado jurisdiction or political subdivision;
(5) The bidder does not have the necessary facilities, organization, experience, technical skills or financial resources to fulfill the terms of the contract/purchase order;
(6) The bidder of construction and/or maintenance services has a demonstrated record of safety violations; or
(7) Inability to meet the required contract performance schedule.
(b) Appeal. When a bid is declared “nonresponsible,” the City purchasing rules and regulations require that the bidder be notified and given an opportunity to appeal that determination. If he believes that the nonresponsible determination was erroneous, arbitrary or capricious, the bidder has the right to protest according to the rules and regulations for protested solicitations or awards contained herein (GJMC 41.40.090).
(Res. 04-12 (§ 10.4), 1-16-12)
41.40.050 Solicitation irregularities.
The Purchasing Manager has authority to waive irregularities if: (a) the item being waived is only a matter of form or is an immaterial variation from the exact requirements of the solicitation; (b) the item being waived has trivial or no effect on price, quality, quantity, delivery or performance; and (c) such a waiver would not affect the relative standing of bidders or be otherwise prejudicial to them. Examples of minor irregularities that may be waived are:
(a) Failure to furnish with the bid certain required information regarding the vendor’s qualifications to perform the contract.
(b) Failure to submit required descriptive information on the products offered.
(c) Failure to return the proper number of executed bids or attachments, including certifications and affidavits.
(d) Failure to return a bid addendum or amendment if on the face of such bid the bidder acknowledges receipt of addendum or amendment or if the addendum or amendment does not have material effect on the bidder’s liability under the terms of the contract.
(e) Failure to sign a bid, when evidence is submitted with the bid that clearly shows that the bid was the one intended by the bidder and that failure to sign was strictly an oversight.
When such minor irregularities are discovered by the purchasing authority, the offeror is requested to remedy the problem within a reasonable time frame by later submitting omitted data or by providing a written statement of intent.
(Res. 04-12 (§ 10.5), 1-16-12)
41.40.060 Exemptions to competitive solicitation.
(a) The following items are exempted from competitive bidding:
(1) Supplies, materials, services costing less than $25,000;
(2) Purchases made cooperatively with other units of government such as the State of Colorado and government cooperative groups utilizing extended awards from other governmental agencies. The City may, when deemed appropriate, extend its award to other governmental agencies;
(3) Purchases/contracts with federal and local government and not-for-profit units;
(4) Magazines, books and periodicals;
(5) Supplies, products or services indispensable to the City which are obtainable, for practical purposes, only from a single source, as identified by the Purchasing Manager using the procedure herein set forth;
(6) The material qualifies as an object of fine art;
(7) A particular material is required to match materials currently in use by the City;
(8) Original equipment manufacturer (OEM) repair parts purchased from the source vendor; or
(9) Annual maintenance and service agreements on purchases originally obtained by competitive solicitation or sole source when the terms of the agreement specify the original provider performs ongoing maintenance.
(b) Miscellaneous Exemptions. Any procurement resulting from a formal competitive bid or proposal may be used as the basis for the negotiated purchase of additional quantities of the same materials or services at any time within a period of three years from the date of approval; provided, however, that subsequent procurements are expressly limited to the specific terms, conditions and pricing established by the original solicitation. Additional quantity negotiations must be accomplished by the Purchasing designee.
(c) Construction change orders may be permitted without competition as described in Chapter 41.32 GJMC.
(Res. 04-12 (§ 10.6), 1-16-12)
41.40.070 Waiver process to formal competitive bids.
The formal bid process may be waived by the Purchasing Manager under the following conditions:
(a) Where the process may cause undue delay or hardship for a department, division or office of the City; and
(b) When deemed in the best interest of the City.
(Res. 04-12 (§ 10.7), 1-16-12)
41.40.080 Rejection of bids.
All bids may be rejected when one or more of the following occur:
(a) All bids exceed the budgeted amount;
(b) There are no responsible bidders;
(c) There are no responsive bidders;
(d) The project is abandoned;
(e) The specifications, scope and/or terms and conditions are revised; or
(f) Irregularities in the procurement process as determined by the Purchasing Manager and/or the City Manager.
(Res. 04-12 (§ 10.8), 1-16-12)
41.40.090 Protested solicitations or awards.
(a) Protest. Any actual or prospective bidder, contractor or vendor who is aggrieved in connection with the solicitation or award of a contract and purchase order may protest to the Purchasing Manager or City Manager as set out in this section. The protest shall be submitted in writing to the Purchasing Manager or his designated representative, within seven working days after the aggrieved person knows or should have known of the facts giving rise thereto.
(1) Protests in connection with a solicitation or award of a contract involving an amount less than $50,000 shall be filed with and determined by the Purchasing Manager.
(2) Protests in connection with a solicitation or award of a contract involving an amount of $50,000 or more shall be filed with and determined by the City Manager.
(b) Authority. The City Purchasing Manager or City Manager, as set out in this section, shall have the authority to settle and resolve a protest of an aggrieved bidder, contractor or vendor, actual or prospective, concerning a solicitation or award of a contract. A written decision regarding the protest shall be rendered within 30 working days after the protest is filed. This authority shall be exercised in accordance with the City procurement rules and regulations set forth herein. The City reserves the right to make determinations that are deemed in the best interest of the City. If 30 days have passed without a decision, the written protest shall be forwarded to the City Attorney’s office for resolution.
(Res. 04-12 (§ 10.9), 1-16-12)
41.40.100 Confidentiality.
After solicitations are opened and reviewed at the solicitation opening, they become confidential documents until the Purchasing Manager or designee awards the contract or the solicitation project is cancelled. Staff shall not discuss solicitations with competing vendors. Vendor questions must be referred to the Purchasing Division. Staff shall not discuss with any vendor the recommended award or the reasons for awarding or not awarding.
(Res. 04-12 (§ 10.10), 1-16-12)
41.40.110 Disagreements about recommendations.
If the Department and the Purchasing Division disagree about the award recommendation, the Department Director or designee and the Purchasing Manager or designee shall meet personally to review the reasons for the disagreement. The mutual goal of the Department and the Purchasing Division is to award to the lowest responsive and responsible bidder for goods or services that meet the Department’s requirements contained in the specifications. Disagreements that cannot be resolved shall be forwarded to the City Manager’s office for final determination.
(Res. 04-12 (§ 10.11), 1-16-12)