Chapter 3.16
PROCUREMENT POLICY
Sections:
3.16.010 Contract and purchase procedure.
3.16.020 Limitation on administrator’s authority.
3.16.025 Purchase splitting.
3.16.026 Types of vendor solicitations.
3.16.027 Alternative contracting methods.
3.16.030 Purchases or contracts exceeding fifty thousand dollars.
3.16.031 Purchases or contracts from twenty-five thousand to fifty thousand dollars.
3.16.032 Purchases or contracts of less than twenty-five thousand dollars.
3.16.040 Advertising.
3.16.050 Processing of bids.
3.16.060 Exceptions to competitive requirements.
3.16.070 Lowest responsive and responsible bidder.
3.16.080 [Reserved.]
3.16.090 [Reserved.]
3.16.100 Change orders—Administrator authority.
3.16.110 [Reserved.]
3.16.120 Procurement procedure manual.
3.16.010 Contract and purchase procedure.
The administrator or his or her designee may carry out any of the following:
A. Contract for, purchase or issue purchase authorizations for all supplies, materials, equipment, and services for the offices, departments, and agencies of the city and borough; and
B. Contract for the construction, repair, or improvements of city and borough facilities.
3.16.020 Limitation on administrator’s authority.
The administrator may not make an acquisition or contract authorized by Section 3.16.010 if the value of the property, service or contract exceeds the assembly approved appropriation without first obtaining assembly approval of the increased appropriation.
(Ord. 16-12 § 4 (part), 2016: Ord. 09-58 § 4 (part), 2009: Ord. 04-16 § 4 (part), 2004.)
3.16.025 Purchase splitting.
Purchases for a single project or task shall not be split into smaller transactions with the intent to allow a lower level of review and approval.
(Ord. 16-12 § 4 (part), 2016.)
3.16.026 Types of vendor solicitations.
The following three types of bidding arrangements are acceptable forms of solicited procurement. Specific procedures governing the applicability of each will be set forth in the procedures manual:
A. Requests for Bids: These bids shall be awarded on the basis of the lowest price to a responsive and responsible bidder as determined by the city administrator.
B. Requests for Proposals: If the administrator determines that use of competitive bidding is not in the best interest of the city and borough, supplies, services, materials, and equipment may be procured by competitive proposals. These proposals shall be awarded based on scoring against the criteria defined in the specification including but not limited to price. Additionally, the administrator is empowered to negotiate terms which are in the best interest of the city and borough of Sitka.
C. Requests for Qualifications: If the administrator determines that use of competitive bidding or proposals are not in the best interest of the city and borough, supplies, services, materials, and equipment may be procured by competitive statement of qualifications. Vendor award shall be made on a qualification based criteria as defined in the specifications. Additionally, the administrator is empowered to negotiate terms which are in the best interest of the city and borough of Sitka.
(Ord. 16-12 § 4 (part), 2016.)
3.16.027 Alternative contracting methods.
When the administrator determines it is in the best interest of the city and borough he or she may utilize alternative contracting methods such as: design build, energy services contracts, guaranteed maximum price, and on call contracting. These methods shall be defined within the city and borough purchasing procedures.
(Ord. 16-12 § 4 (part), 2016.)
3.16.030 Purchases or contracts exceeding fifty thousand dollars.
A. If the value of the goods or service exceeds fifty thousand dollars, the administrator may authorize the acquisition or contract with the written certification by the finance director that appropriated funds are available, and seeking competitive formal sealed bids or as exempted by Section 3.16.060. Purchases or contracts authorized by Section 3.16.010 having an estimated value exceeding fifty thousand dollars must be made in the open market and meet the requirements of Section 3.16.040.
B. Bids or proposals are considered formal bids and must be sealed and delivered to the submission point by the appointed time. Submission may be paper or electronic methods.
(Ord. 16-12 § 4 (part), 2016: Ord. 15-15 § 4 (part), 2015; Ord. 14-03A § 4 (part), 2014; Ord. 09-58 § 4 (part), 2009: Ord. 04-16 § 4 (part), 2004.)
3.16.031 Purchases or contracts from twenty-five thousand to fifty thousand dollars.
A. If the value of the property, service or contract exceeds twenty-five thousand dollars but does not exceed fifty thousand dollars, the administrator may authorize the acquisition or contract with the written certification by the finance director that appropriated funds are available, and upon seeking at least three competitive quotes from a minimum of three vendors or as exempted by Section 3.16.060. Purchases or contracts authorized by Section 3.16.010 having an estimated value that does not exceed fifty thousand dollars may be made in the open market without publishing notice in a newspaper.
B. All solicitations shall be awarded on the basis of Section 3.16.026.
(Ord. 16-12 § 4 (part), 2016.)
3.16.032 Purchases or contracts of less than twenty-five thousand dollars.
A. If the value of the property, service or contract is below twenty-five thousand dollars, the administrator may authorize the acquisition or contract on the open market with such competition as is reasonable and practical in the circumstances as long as doing so does not interfere with the ability of the city and borough of Sitka to receive grants and other funding sources or as exempted by Section 3.16.060. It is the city and borough of Sitka’s intent to promote local purchases whenever the availability, quality, price and delivery is:
1. Within a four percent advantage to what is available outside the municipality for purchases under two thousand five hundred dollars; and
2. Within a two percent advantage to what is available outside the municipality for purchases two thousand five hundred dollars and above.
(Ord. 16-12 § 4 (part), 2016.)
3.16.040 Advertising.
Unless other procedures are authorized under this chapter, purchases or contracts authorized by Section 3.16.010 having an estimated value of more than fifty thousand dollars may be made only after a notice is printed in a newspaper of general circulation within the city and borough, unless another form of media is authorized by the administrator. The notice shall contain a general description of the property, work or service; state where the bid forms and/or specifications may be obtained; specify the place for submission of bids and the time by which they must be received.
(Ord. 16-12 § 4 (part), 2016: Ord. 09-58 § 4 (part), 2009: Ord. 04-16 § 4 (part), 2004.)
3.16.050 Processing of bids.
Notwithstanding other provisions of this chapter relating to the award after competitive bid for purchases and contracts, the city and borough may take one or more of the following steps during procurement:
A. Reject defective or nonresponsive bids;
B. Waive any irregularities in any and all bids;
C. Reject all bids;
D. Readvertise for bids with or without making changes in the plans, specifications, or scope of work.
3.16.060 Exceptions to competitive requirements.
A. Unless otherwise authorized by law, all procurement actions shall follow a competitive process. The following is a list of authorized exceptions which can be approved by department heads based on approval authority describing situations in which a competitive process is not required:
1. Negotiated procurement following unsuccessful efforts to obtain a qualified bid through competitive bidding.
2. Small procurement, below two thousand five hundred dollars.
3. Emergency acquisitions approved by the administrator or department head based on authorization limits.
4. Procurement of consultant and technical services.
5. Procurement of real estate.
6. [Reserved].
7. Interagency agreements.
8. Utilization of state or local government contracts.
9. Specialized equipment where standardization is a primary criteria.
10. Sole-Source Procurement.
a. [Reserved].
b. Placement of insurance coverage as defined in this chapter.
c. Contracts for electronic data processing and system control software and hardware systems and other software systems shall be by professional services contract; provided, however:
i. To be exempt from competitive bidding the service in question must be truly a “system” which is professionally designed.
ii. The purchase of hardware which is not an inextricable part of the system and can be bid separately shall be competitively bid.
iii. Software and systems readily available to the open market (e.g., computer operating systems) are not subject to this exception. Competition will be sought to the maximum extent practicable.
d. Best interest of the city and borough.
B. The provisions of subsection A of this section notwithstanding, all procurement actions utilizing federal support or funding, which are subject to the procurement standards outlined in applicable federal regulations, will comply with those procurement standards in all respects except in cases where city and borough procurement code is stricter than applicable federal regulations. In such a case, the code must be followed. The administrator shall ensure that sufficient documents and records required by applicable federal regulations are retained in order to detail all procurements utilizing federal support or funding.
(Ord. 18-50 § 4, 2018: Ord. 16-12 § 4 (part), 2016: Ord. 15-15 § 4 (part), 2015; Ord. 14-03A § 4 (part), 2014; Ord. 04-16 § 4 (part), 2004.)
3.16.070 Lowest responsive and responsible bidder.
The lowest responsive and responsible bidder is deemed to be the lowest qualified bidder under Section 11.14(a) of the Charter. In determining the lowest responsive and responsible bidder for purposes of award, the city and borough shall consider:
A. The price;
B. The ability, capacity and skill of the bidder to perform the contract within the time and price specified;
C. The reputation and experience of the bidder; and
D. The bidder performance and payment under previous contract.
3.16.080 [Reserved.]
(Ord. 16-12 § 4 (part), 2016: Ord. 15-15 § 4 (part), 2015: Ord. 14-03A § 4 (part), 2014: Ord. 04-16 § 4 (part), 2004.)
3.16.100 Change orders—Administrator authority.
The administrator is authorized, without assembly approval, to enter into change orders where the amount of additional expenditure occasioned by the change order or orders does not, in the aggregate, exceed any contingency fund previously established with respect to the particular project or materially change the scope of work. Change orders exceeding in the aggregate the foregoing limitation or which change the scope of work beyond the assembly approved project are not binding without prior approval of the assembly.
3.16.120 Procurement procedure manual.
A. The administrator will create, maintain and update a procurement procedures manual in compliance with the Sitka General Code. The manual may be updated by approval of the administrator with assembly notification. The procurement procedures may be more restrictive than the Sitka General Code where the municipal administrator deems necessary.
B. A copy of the manual shall be available to the public at all times through the municipal clerk at the Sitka City Hall.