Chapter 16.04


16.04.010    Definitions.

16.04.020    Purpose.

16.04.030    Procurement of insurance and services.

16.04.040    Application.

16.04.010 Definitions.

The words defined in this section shall have the meanings set forth below whenever they appear in this title, unless: (1) the context in which they are used clearly requires a different meaning; or (2) a different definition is prescribed for a particular section or provision.

Architectural and engineering services” means:

1. Professional services of an architectural or engineering nature, as defined by the laws of this state which are required to be performed or approved by a person licensed, registered, or certified to provide such services as described in this subsection;

2. Professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property; and

3. Such other professional services of an architectural or engineering nature, or incidental services, which members of the architectural and engineering professions (and individuals in their employ) may logically or justifiably perform, including: studies, investigations, surveying, mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related services.

Blind trust” means an independently managed trust in which the employee-beneficiary has no management rights and in which the employee-beneficiary is not given notice of alterations in, or other dispositions of, the property subject to the trust.

Brand name or equal specifications” means specification limited to one or more items by manufacturers’ names or catalogue numbers to describe the standard of quality, performance and other salient characteristics needed to meet borough requirements, and which provides for the submission of equivalent products.

Brand name specification” means a specification limited to one or more items by manufacturers’ names or catalogue numbers.

Business” means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture or any other private legal entity.

Change order (unilateral)” means a written order signed and unilaterally issued by the chief procurement officer, directing the contractor to make changes which the “changes” clause of the contract authorizes the chief procurement officer to order without the consent of the contractor.

Confidential information” means any information which is available to an employee only because of the employee’s status as an employee of the borough and is not a matter of public knowledge or available to the public on request.

Construction” means the process of building, altering, repairing, improving or demolishing any public infrastructure facility, including any public structure or building or other public improvements of any kind to any public real property. It does not include the routine operation, routine repair, or routine maintenance of existing structures, buildings or real property.

Construction management at-risk” means any contract or process that permits the procurement of a construction manager, prior to the completion of design, to perform, manage or assist in the design and/or construction functions.

Contract” means all types of borough agreements, regardless of what they may be called, for the procurement of supplies, services or construction.

Contract modification” means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity or provision of any contract accomplished by mutual action of the parties to the contract.

Contractor” means any person having a contract with the borough.

Cost analysis” means the evaluation of cost data for the purpose of arriving at costs actually incurred or estimates of costs to be incurred, prices to be paid, and costs to be reimbursed.

Cost data” means factual information concerning the cost of labor, material, overhead and other cost elements which are expected to be incurred or which have been actually incurred by the contractor in performing the contract.

Cost-reimbursement contract” means a contract under which a contractor is reimbursed for costs which are allowable and allocable in accordance with the contract terms and the provisions of this chapter, and a fee or profit, if any.

Direct or indirect participation” means involvement through decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity.

Disadvantaged business” means a small business which is owned or controlled by a majority of persons, not limited to members of minority groups, who have been deprived of the opportunity to develop and maintain a competitive position in the economy because of social disadvantages.

Employee” means an individual drawing a salary from the borough, whether elected or not, and any noncompensated individual performing personal services for the borough or any department, agency, commission, council, board or any other entity established by the executive or legislative branch of the borough.

Financial interest” means:

1. Ownership of any interest or involvement in any relationship from which, or as a result of which, a person within the past calendar year has received, or is presently or in the future entitled to receive, more than $1,000 per year, or its equivalent;

2. Ownership of 10 percent of any property or business; or

3. Holding a position in a business such as an officer, director, trustee, partner, employee, or the like, or holding any position of management.

Gratuity” means a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received.

Immediate family” means spouse, child (step, biological or adoptive), parent (step, biological or adoptive), sibling, grandparent, father-in-law, mother-in-law, or a regular member of the person’s household.

Invitation for bids” means all documents, whether attached or incorporated by reference, utilized for soliciting sealed bids. No confidential or proprietary data shall be solicited in any invitation for bids.

Legal services” means all services which constitute the practice of law.

Lobbyist services” means all services performed representing the Fairbanks North Star Borough before the United States Congress, the Legislature of Alaska or any federal or state administrative agency which does not constitute the practice of law.

Local bidder” means a person who (1) has a place of business located in the Fairbanks North Star Borough; (2) which is staffed by an employee or employees as their permanent employment year-round in the normal course of business.

Local supplier” means a person having a major place of business within the borough.

Medical services” means all services which constitute the practice of medicine as defined by law.

Person” means any business, individual, union, committee, club, other organization, or group of individuals.

Price analysis” means the evaluation of price data, without analysis of the separate cost components and profit as in cost analysis, which may assist in arriving at prices to be paid and costs to be reimbursed.

Price data” means factual information concerning prices for items substantially similar to those being procured. Prices in this definition refer to offered or proposed selling prices, historical selling prices and current selling prices. The definition refers to data relevant to both prime and subcontractor prices.

Public agency” means a public entity subject to, or created by, local ordinance.

Qualified products list” means an approved list of supplies, services or construction items described by model or catalogue numbers, which, prior to competitive solicitation, the borough has determined will meet the applicable specification requirements.

Request for proposals” means all documents, whether attached or incorporated by reference, utilized for soliciting proposals.

Responsible bidder or offeror” means 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 will assure good faith performance.

Responsive bidder” means a person who has submitted a bid which conforms in all material respects to the invitation for bids.

Services” means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. “Services” includes, but is not limited to, consulting, personal, professional, technical, and purchase-of-client services. This term shall not include employment agreements, collective bargaining agreements, labor relation services or expert witness services.

Small business” means a United States business which is independently owned and which is not dominant in its field of operation or an affiliate or subsidiary of a business dominant in its field of operation.

Specification” means any description of the physical or functional characteristics, or of the nature of a supply, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery. (Ord. 2016-40 § 65, 2016; amended during 2004 republication; Ord. 2002-29 § 4, 2002; Ord. 89-044 § 2, 1989; Ord. 89-013 § 2, 1989; Ord. 82-69, 1982. 2004 Code § 16.21.020.)

16.04.020 Purpose.

The purpose of this title is to provide for the fair and equitable treatment of all persons involved in public purchasing by the borough, to maximize to the fullest extent practicable the purchasing value of public funds in the procurement, to foster effective broad-based competition within the free enterprise system, to provide for increased public confidence in borough procurement, and to provide safeguards for maintaining a procurement system of quality and integrity. (Ord. 2002-29 § 2, 2002; Ord. 82-69, 1982. 2004 Code § 16.21.010.)

16.04.030 Procurement of insurance and services.

A. The procurement of all insurance, insurance-related contracts, employee benefits, services and products necessary to administer the self-insurance program for the borough shall be coordinated through the risk manager.

B. Insurance with limits equal to the maximum foreseeable loss shall be purchased:

1. When the potential loss exposure exceeds the retention level previously stated; and

2. When such insurance is available on a fiscally sound basis.

C. Insurance and related services including services to manage employee benefits and self-insured programs shall be purchased from any source determined to be in the best interests of the borough.

D. The objective will be to obtain any required insurance or service at the lowest cost to the borough consistent with the most desirable required level of service, in companies of adequate financial status, expertise and service potential.

E. Procurement methodology shall be at the discretion of the risk manager, and shall include, but not be limited to, open competitive bidding, request for proposals, negotiation with brokers or companies, or designation of a broker-of-record to purchase coverage or service.

F. The maximum terms shall be:

1. Three years for property and casualty insurance;

2. Continuous for fidelity bonds;

3. Continuous for employee benefit programs and plans, subject to the normal right of the insured to cancel at any time with 30-day written notice. (Ord. 2012-08 § 2, 2012; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.050.)

16.04.040 Application.

A. The provisions of this code of ordinances relating to the procurement or purchase of goods and services by the borough, including but not limited to the provisions of this title, shall not apply to Chapter 7.16 FNSBC.

B. This title applies to contracts for the procurement of supplies, services and construction entered into by this borough after the effective date of this title unless the parties agree to its application to contracts entered into prior to the effective date. It shall apply to every expenditure of public funds by the borough irrespective of its source unless specifically exempted by law.

C. When the procurement involves the expenditure of state or federal grant, assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory state or federal law and regulation.

D. Nothing in this title shall prevent the borough from complying with the terms and conditions of any cooperative agreement, grant, gift or bequest which is otherwise consistent with law.

E. This title shall not apply to contracts between the borough and other governments except as provided in FNSBC 16.08.040, Cooperative purchasing.

F. Nothing in this title shall prevent the borough from making a grant or gift, which is otherwise consistent with law and the powers granted to or assumed by the borough, to another governmental or quasi-governmental agency engaging in activities benefiting borough citizens, except that no grant or gift for more than $30,000 may be issued unless the assembly has specifically appropriated funds for the purpose of making the grant or gift or has approved a resolution setting forth the identity of the recipient, the amount, the purpose to which funds are to be used; and how the grant, gift or bequest will be administered.

G. This title does not apply to the procurement of library books, audiotapes, videotapes, movies, bookbinding services, newspapers and periodicals.

H. This title does not apply to the purchase of commercial advertising.

I. If the assembly waives the application of this title for an identified project the mayor shall provide report(s) to the assembly according to a predetermined schedule included in the waiving ordinance and fully identifying each expenditure of project funds including to whom the funds were paid, the amount of the expenditure and what efforts were made to maximize to the fullest extent practicable the purchasing value of public funds. (Ord. 2016-40 § 66, 2016; Ord. 2012-52 § 5, 2012; Ord. 2012-24 § 2, 2012; Ord. 2002-29 § 3, 2002; Ord. 87-069 § 4, 1988; Ord. 82-69, 1982. 2004 Code §§ 3.04.140, 11.01.020, 16.21.015.)