CHAPTER 2
PURCHASING SYSTEM Revised 12/23
(Added by O-2660; Amended by O-2696; O-2987; O-3278; O-3380; O-3432; O-3435; O-3493; O-3520; O-3714; O-3847; O-3923)
22.1.010 PURPOSE.
The purpose of this Chapter is to establish procedures, consistent with Article 931 and 1450 of the City Charter, to ensure the purchase of supplies, services or equipment, and contracts for the construction of public works projects, are made at the lowest cost possible commensurate with both the quality required and the maintenance of practical and effective administrative controls.
22.1.020 CITY MANAGER’S RESPONSIBILITY.
The City Manager shall designate a Purchasing Agent of the City for the purchase of all supplies, services, or equipment for the City.
22.1.030 DEFINITIONS.
a) For the purposes of this Chapter, the term “purchases” shall include leasing or renting or any other transaction by which the City acquires either temporary or permanent use or possession of property or whereby it acquires services.
b) For the purposes of this Chapter, the term “property” shall include all items of property other than real property.
c) For the purposes of this Chapter, the term “services” shall include anything of value, other than property.
d) For the purposes of this Chapter, the term “responsible bid” shall mean an offer submitted by a responsible bidder to furnish property and/or services in conformity with the specifications, delivery terms, conditions and other requirements included in the invitation for bids.
22.1.040 PURCHASING AGENT.
The City Manager may delegate the powers and duties set forth in Section 931(b) of the City Charter to the Purchasing Agent. In addition, subject to the provisions of this Chapter, the Purchasing Agent shall have the power to:
a) Contract for all utility services;
b) For bids not involving public works projects, cancel solicitations and re-solicit bids or proposals when cancellation is in the City’s best interest for reasons including, but not limited to, when the City determines that:
1) The City no longer requires the supplies, services, equipment, or construction of the public works project;
2) The City no longer requires a third party to provide the supplies, services, equipment, or construction of the public works project;
3) Proposed amendments to the solicitation document make a new solicitation desirable or necessary;
4) Prices of costs exceed the City’s cost estimates;
5) No bids or proposals have been received in response to the solicitation; or
6) A procedural irregularity – including but not limited to, failure to properly notice the solicitation or a material error in specifications – exists that could materially affect the outcome of the solicitation.
22.1.050 CENTRALIZED PURCHASING.
All acquisitions and purchases shall be made by and through the Purchasing Agent, except:
a) Purchases of supplies, services, and equipment made from petty cash funds pursuant to regulations and procedures approved by the City Manager;
b) Purchases of supplies, services, and equipment by city procurement cards (“P-Card”) or other credit card, pursuant to regulations and procedures approved by the City Manager;
c) Emergency purchases made in conformance with Section 22.3.090; and
d) Mutual aid agreements.
22.1.060 ADMINISTRATIVE REGULATIONS.
The City Manager is authorized to adopt written administrative regulations and procedures that are consistent with and that further the terms and requirements set forth within this Chapter.
22.2.010 CITY COUNCIL AWARDS.
The City Council shall award:
a) Purchases of goods in an amount that exceeds the delegated authority set by Resolution as part of City Policy 3;
b) Contract service agreements in an amount that exceeds the delegated authority set by Resolution as part of City Policy 3;
c) Consulting service agreements in an amount that exceeds the delegated authority set by Resolution as part of City Policy 3;
d) Public works agreements in an amount that exceeds the delegated authority set by Resolution as part of City Policy 3;
e) Any other purchases and contracts that have not been otherwise authorized under this Chapter, unless the City Council has authorized a City officer or employee to negotiate a contract on behalf of the City without further Council approval.
22.2.020 CITY MANAGER AUTHORITY.
a) The City Manager, or their designee pursuant to subsection (b) below, is authorized to make purchases and award the following:
1) Purchases of goods in an amount that falls within the delegated authority set by Resolution as part of City Policy 3;
2) Contract service agreements in an amount that falls within the delegated authority set by Resolution as part of City Policy 3;
3) Consulting services agreements in an amount that falls within the delegated authority set by Resolution as part of City Policy 3;
4) Public works agreements in an amount that falls within the delegated authority set by Resolution as part of City Policy 3;
5) Agreements to license real property in an amount that falls within the delegated authority set by Resolution as part of City Policy 3; and
6) Emergency purchases in accordance with Section 22.3.090.
b) The City Manager may delegate authority to make purchases and awards under this Section. All such delegations shall be in writing, dated, and specify the limits of the authority delegated. All such delegations shall be kept on file with the Purchasing Agent.
22.2.030 PURCHASING AGENT AUTHORITY.
The Purchasing Agent is authorized to:
a) Issue Purchase Orders awarded in accordance with this Chapter; and
b) Make emergency purchases in accordance with Section 22.3.090.
22.3.010 PURCHASE OF GOODS.
a) Goods are physical items, including but not limited to, materials, supplies, and equipment.
b) Goods shall be solicited applying the criteria for lowest responsible bidder as set forth in Section 22.3.050.
22.3.020 CONTRACTUAL SERVICES AGREEMENTS.
a) Contractual services are services for non-professional functions that are predominantly physical, manual or routine. Contractual services include, but are not limited, to custodial services, temporary agency services, and security services.
b) Contractual services agreements shall be solicited applying the criteria for lowest responsible bidder as set forth in Section 22.3.050.
22.3.030 CONSULTING SERVICES AGREEMENTS.
a) Consulting services are services that require specialized expertise, training in a professional field, or other developed skills or training. Consulting services include but are not limited to, services performed by vendors, including but not limited to, accountants, doctors, lawyers, engineers, architects, and land surveyors.
b) Consulting services agreements shall be solicited applying the criteria for best qualified person or firm as set forth in Section 22.3.060.
22.3.040 PUBLIC WORKS AGREEMENTS.
a) A public works agreement is a contract paid for in whole or in part with public funds for the construction, alteration, repair, improvement, reconstruction or demolition of any public building, facility, street, sidewalk, utility, park or open space improvement, or other public improvement.
b) Public works agreements shall be solicited applying the criteria for lowest responsible bidder as set forth in Section 22.3.050.
22.3.050 LOWEST RESPONSIBLE BIDDER.
In determining the lowest responsible bidder in response to a Notice Inviting Bids, the City shall consider all of the following criteria that are relevant to the solicitation:
a) Lowest cost to the City;
b) The quality, availability and adaptability of the material or services offered;
c) The ability, capacity, facilities and skill of the bidder to perform or provide the materials or services;
d) The capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference;
e) The sufficiency of the bidder’s financial resources as they relate to the ability of the bidder to perform the contract;
f) The character, trustworthiness, integrity, reputation, judgement, training, experience and efficiency of the bidder;
g) The previous and existing compliance by the bidder with laws and ordinances relating to the type of work to be performed under the contract;
h) The competence, reputation and record of performance and experience of the bidder for the successful recent completion of similar work of comparable magnitude;
i) The number and scope of conditions and exceptions attached to the bid by the bidder; and
j) The ability of the bidder to provide such future maintenance and service as may be needed.
22.3.060 REQUESTS FOR PROPOSALS.
In determining the best qualified person or firm for award of a request for proposal, the City shall consider all of the following criteria that are relevant to the solicitation:
a) The training, credentials and experience of the person or firm;
b) The demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the service promptly, within the time specific, and without delay;
c) The sufficiency of the person or firm’s financial and other resources;
d) The character, integrity, reputation, and judgement of the person of firm;
e) The ability of the person or firm to provide such future service as may be needed; and
f) The price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive.
The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the proposal with the lowest price.
22.3.070 FORMAL PROCEDURES.
Formal solicitations shall be subject to the following procedures, when a procurement is estimated to be above the formal procurement threshold set by Resolution as part of City Policy 3:
a) The Purchasing Agent shall issue a formal notice inviting bids or requests for proposals and shall solicit bids and proposals by:
1) Public works agreements shall be advertised in a newspaper of general circulation twice, the first of which shall be at least ten days before the time for opening received bids. If there is no newspaper of general circulation a notice shall be posted on a public bulletin board at City Hall; and
2) Posting on the City’s online vendor portal website, mail, or electronic mail.
b) At the time specified in the notice inviting bids or request for proposals, all bids or proposals timely received shall be opened and declared publicly, either in person or through the City’s online vendor portal website.
c) The Purchasing Agent shall compile and tabulate all bids or proposals timely received and refer them to the appropriate City Department for evaluation. For public works agreements or purchases of goods or contractual services, the City Department shall make a recommendation of lowest responsible bidder by applying the criteria set forth in Section 22.3.050. For purchases of professional services, the City Department shall make a recommendation of best qualified person or firm by applying the criteria in Section 22.3.060.
d) The Purchasing Agent shall provide notice of the recommended award to all bidders or proposers through the City’s online vendor portal website or by other means as determined by the Purchasing Agent.
e) The City Manager shall present the recommendation to City Council for award after the time to file a protest has expired or after a final determination on a protest has been made in accordance with Section 22.3.110.
f) The City Manager may reject any and all bids or proposals, except those bids for public works agreements as required in Article 1450 of the City Charter whenever, in the opinion of the City Manager any of the below criteria are met. The City Council may reject any and all bids for public works agreements received whenever, in the opinion of the City Council:
1) The bid(s) or proposal(s) received do not comply with the specifications of the notice inviting bids or request for proposals;
2) The proposed project or purchase should be abandoned or delayed;
3) The materials or services may be purchased more reasonably on the open market or the work done less expensively by City personnel;
4) The bids or proposals are higher than anticipated and a new solicitation would result in savings to the City; or
5) The best interests of the City would be served by a rejection of any or all bids or proposals.
22.3.080 INFORMAL SOLICITATION PROCEDURES.
Informal solicitations shall be subject to the following procedures, when a procurement is estimated to be below the formal procurement threshold set by Resolution as part of City Policy 3:
a) The Purchasing Agent or the City Manager’s designee shall issue a request for quotations or solicit not less than three quotations, where feasible, via mail, or electronic mail. The Purchasing Agent may require additional notice as the Purchasing Agent deems appropriate, including, for example, requiring that the solicitation be posted on the City’s online vendor portal website.
b) The Purchasing Agent or the City Manager’s designee shall compile and tabulate all submissions timely received and refer them to the appropriate City Department for evaluation. For public works agreements or purchases of goods or contractual services, the City Department shall make a recommendation of lowest responsible bidder by applying the criteria set forth in Section 22.3.050. For purchases of professional services, the City Department shall make a recommendation of best qualified person or firm by applying the criteria in Section 22.3.060.
c) The Purchasing Agent or the City Manager’s designee shall provide notice of the recommended award to all solicitors through the City’s online vendor portal website or by other means as determined by the Purchasing Agent.
d) The City Manager, or designee shall award the solicitation.
e) The Purchasing Agent may reject any and all quotations received whenever, in the opinion of the City Manager, or designee:
1) The quotation(s) received do not comply with the specifications of the request for quotations;
2) The proposed project or purchase should be abandoned or delayed;
3) The materials or services may be purchased more reasonably on the open market or the work done less expensively by City personnel;
4) The quotations are higher than anticipated and a new solicitation would result in savings to the City; or
5) The best interests of the City would be served by a rejection of any or all quotations.
22.3.090 PROCEDURES FOR EMERGENCY NEEDS.
a) In the event of an emergency (other than where a disaster type emergency has been proclaimed or exists as provided in Section 16.2.6), the City Manager, the Purchasing Agent, or one of their designees pursuant to subsection (b) below is authorized to do the following for the preservation of the health, safety or welfare of the residents of the City or for the protection of property therein:
1) Shorten or waive all required notice periods and competitive solicitation procedures set forth in this Chapter;
2) Secure in the open market at the best reasonable price, contracts for public works projects, goods and services;
3) Negotiate or execute such contracts, agreements, applications or other documents with such other federal, state or local agencies or other groups and organizations as are necessary to provide or obtain emergency aid, assistance or services to the City of Torrance; and
4) Contract for the immediate expenditure of public funds to safeguard life, health or property.
b) The City Manager may delegate authority to make purchases and awards under this Section. All such delegations shall be in writing, dated, and specify the limits of the authority delegated. All such delegations shall be kept on file with the Purchasing Agent.
c) The City Manager will report such emergency purchases that exceeds the delegated authority set by resolution as part of City Policy 3.
22.3.100 EXCEPTIONS TO THE COMPETITIVE PROCESS.
The competitive selection processes set forth in this Chapter do not apply in the following categories however purchases shall be made in accordance with procedures and regulations established by the City Manager:
a) Funds are expended to secure membership or participation in professional organizations, meetings, or conventions;
b) Competition does not reasonably exist because only one vendor possesses the unique ability or capability to meet the particular requirements of the solicitation, such as when a good or service is copyrighted, patented or otherwise only available from one license holder, including, for example, proprietary goods of original equipment manufacturers and/or their authorized exclusive distributors. No sole-source purchases may be made where to do so would show favoritism, improvidence, extravagance, fraud or corruption, or result in the waste of public funds, but may be used to only obtain the best economic result for the public;
c) Competitive procedures were followed by a governmental agency, including a federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency consisting of one or more such agencies, that are equivalent to the procedures set forth in this Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency;
d) A proposed purchase is at or below the current market price and will result in significant cost savings to the City, or that the proposed purchase is not more than the current market price, and that significant time will be saved by such a purchase;
e) The purchase of computer and networking hardware and software;
f) The purchase of parts and/or services to conduct time-sensitive repairs of City equipment;
g) The purchase of professional services, which entail a high degree of specialized technical or mental skill. Such services included, but are not limited to the service of attorneys, physicians, auditors, architects and appraisers;
h) Special conditions attached to a grant, donation, gift or other legal document that require the use of particular goods and/or services;
i) A solicitation is made under the emergency procedures set forth in Section 22.3.090.
22.3.110 PROTESTS.
a) Any bidder may protest an award pursuant to the Bid Protest Procedures in Policy 3.
b) Bid Protest Procedures shall be set by Resolution as part of City Policy Number 3 and may be revised from time to time by Resolution.