CHAPTER 2
PURCHASES OF PERSONAL PROPERTY AND SERVICES Amended Ord. 3923
(Added by O-2660)
ARTICLE 1 - GENERALLY Amended Ord. 3923
22.1.1 PURPOSE. Amended Ord. 3923
Subject to the provisions of this Chapter, all property and services shall be purchased at the lowest cost possible commensurate with both the quality required and the maintenance of practical and effective administrative controls.
22.1.2 CITY MANAGER’S RESPONSIBILITY. Amended Ord. 3923
a) Except as otherwise provided in the City Charter or in this Code, the City Manager shall purchase all property and services for the City.
b) The City Manager may delegate to any employee of the City under his jurisdiction all or any of his authority under this Chapter.
c) All purchases of property or services shall be made in accordance with those Federal and State laws which are applicable to Charter cities in this State and with the provisions of this City’s Charter and Code.
22.1.3 DEFINITIONS. Amended Ord. 3923
(Amended by O-2987; O-3380)
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.
22.1.4 LOWEST RESPONSIBLE BIDDER. Amended Ord. 3923
(Added by O-3493)
The lowest responsible bidder will be determined after a consideration of the following factors:
a) The lowest cost to the City;
b) The ability, capacity, facilities and skill of the bidder to perform the contract;
c) The ability of the bidder to perform the contract within the time specified, without delay;
d) The character, integrity, trustworthiness and reputation of the bidder;
e) The competence, reputation and record of performance and experience of the bidder for the successful recent completion of similar work of comparable magnitude;
f) The previous and existing compliance by the bidder with laws and ordinances relating to the type of work to be performed under the contract;
g) The sufficiency of the bidder’s financial resources as they relate to the ability of the bidder to perform the contract;
h) The quality, availability and adaptability of the supplies and equipment to the particular use required;
i) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;
j) The number and scope of conditions and exceptions attached to the bid by the bidder.
22.1.5 DISASTERS. Amended Ord. 3923
The authority of the City Manager and other City officers to purchase property and services in the event of a disaster is set forth in Section 16.2.7.
22.1.6 UNAUTHORIZED PURCHASES. Amended Ord. 3923
It shall be unlawful for any City officer or employee to purchase any property or services or enter into any contract therefor except in accordance with the provisions of this Chapter. The City shall not be bound by any purchase order or contract which is inconsistent with the provisions of this Chapter.
ARTICLE 2 - PUBLIC WORKS PROJECTS Amended Ord. 3923
22.2.1 PUBLIC WORKS PROJECTS AND CONTRACTS DEFINED. Amended Ord. 3923
a) For the purposes of this Article, the term public works project shall mean any project for the construction or improvement, excluding maintenance and repair, of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds.
b) For the purpose of this Article, the term public works contract shall mean any contract for the construction or improvement, excluding maintenance and repair, of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds and each separate purchase of materials and supplies for the same.
22.2.2 AWARDING PUBLIC WORKS CONTRACTS. Amended Ord. 3923
(Amended by O-3278; O-3380; O-3520)
Except as otherwise provided in Section 1450 of the City Charter, every public works contract involving an estimated expenditure of Fifty Thousand Dollars ($50,000.00) or more, shall be let by the City Council pursuant to those competitive bidding procedures set forth in said Section 1450 and in Article 3 of this Chapter.
22.2.3 OTHER PUBLIC WORKS CONTRACTS. Amended Ord. 3923
(Amended by O-3278; O-3380; O-3520)
a) Every public works contract involving an estimated expenditure of Twenty-Five Thousand Dollars ($25,000.00) or more, but less than Fifty Thousand Dollars ($50,000.00), may be awarded following the procedures set forth in Article 4 of this Chapter, but must be approved by the City Council.
b) Every public works contract involving an estimated expenditure of Five Thousand Dollars ($5,000.00) or more, but less than Twenty-Five Thousand Dollars ($25,000.00), may be let by the City Manager pursuant to the procedures set forth in Article 4 of this Chapter.
c) Every public works contract involving an estimated expenditure of less than Five Thousand ($5,000.00) may be let by the City Manager pursuant to procedures and regulations established by the City Manager.
22.2.4 EMERGENCIES. Amended Ord. 3923
The City Council may let public works contracts without advertising for bids in emergencies as set forth in Section 1450 of the City Charter.
22.2.5 FORCE ACCOUNT PROJECTS. Amended Ord. 3923
a) Public works projects may be performed by employees of the City (force account) without contracting therefor or advertising for contract bids.
b) Public works projects may be performed by employees of the City (force account) where contract bids therefor have been advertised and rejected pursuant to the procedures set forth in Section 1450 of the City Charter.
ARTICLE 3 - FORMAL BIDDING Amended Ord. 3923
22.3.1 FORMAL BIDS. Amended Ord. 3923
(Amended by O-3714)
Except as otherwise provided in this Chapter, every contract for the purchase of property or services involving an estimated expenditure in excess of $39,999 shall be let by the City Council pursuant to the procedures set forth in this Article.
22.3.2 NOTICES INVITING BIDS. Amended Ord. 3923
Notices inviting bids will include a general description of the property to be purchased or work to be performed and will state both where bid documents and specifications may be secured and the time and place for opening bids.
22.3.3 PUBLICATION AND POSTING OF NOTICES. Amended Ord. 3923
a) Notices inviting bids for non-public works contracts will be published in a newspaper of general circulation within this City at least once, which insertion will be at least ten (10) days before the time for opening bids. Notices inviting bids for public works contracts will be published by two (2) or more insertions, the first of which will be at least ten (10) days before the time for opening bids.
b) Notices inviting bids will also be posted on a public bulletin board in the City Hall.
22.3.4 BIDDERS’ LIST. Amended Ord. 3923
The City Manager may also solicit sealed bids from responsible prospective suppliers whose names are on any City Bidders’ List. The term Bidders’ List will mean a current file of sources of supply of each category of commodities or services repetitively purchased for City use, which list will be maintained by the City Manager.
22.3.5 BIDDERS’ SECURITY. Amended Ord. 3923
a) When deemed necessary by the City Manager, bidders’ security may be required in the public notices inviting bids. Bidders will be entitled to return of bid security; provided, however, that a successful bidder will forfeit his bid security upon his refusal or failure to execute the contract within a reasonable time after the notice of award of contract has been mailed, unless in the latter event the City is solely responsible for the delay in executing the contract.
b) The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. In such case, if the City Council awards the contract to the next lowest responsible bidder, the amount of the lowest responsible bidders’ security will be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, will be returned to the lowest bidder. However, if in any such case, the City Council rejects all other bids presented and re-advertises, the amount of the lowest bidders’ security may be used to offset the cost of receiving new bids, and the surplus, if any, will be returned to the lowest bidder.
22.3.6 BID OPENING PROCEDURE. Amended Ord. 3923
a) Sealed bids will be submitted to the City Clerk and will be identified as bids on the envelope. Bids will be opened in public at the time and place stated in the public notices. A tabulation of all bids received will be available for public inspection during regular business hours for a period of not less than thirty (30) calendar days following the bid opening.
b) Nothing in this Chapter will be deemed to require the disclosure of confidential financial or trade secret information submitted with bids.
22.3.7 REJECTION OF BIDS. Amended Ord. 3923
In its discretion, the City Council may reject any and all bids presented and re-advertise for bids pursuant to the procedures prescribed in this Article.
22.3.8 TIE BIDS. Amended Ord. 3923
If two (2) or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council may in its discretion accept the one it chooses or, in the alternative, direct the City Manager to enter into negotiations with the tie bidders and thereafter accept the lowest resulting bid.
22.3.9 AWARD OF CONTRACTS. Amended Ord. 3923
a) Except as otherwise provided in this Article, contracts will be awarded by the City Council to the lowest responsible bidder.
b) For the purpose of this Section, the lowest responsible bidder will be determined pursuant to the criteria set forth in Section 22.1.4. of this Chapter.
c) The City is authorized to award contracts to the second lowest responsible bidder when:
1) The apparent lowest bidder is non-responsive due to defects, technicalities or informalities in their bid proposal or the required bonds and insurance documents; or
2) Any owner, officer or employee who has a proprietary interest in the apparent lowest bidder, has been disqualified, removed, debarred, or otherwise prevented from bidding on, or completing a federal, state, or local project because of a violation of law or a safety regulation.
22.3.10 WAIVER OF DEFECTS AND TECHNICALITIES. Amended Ord. 3923
The City may waive defects, technicalities or informalities when to do so is in the best interests of the City.
22.3.11 PERFORMANCE AND PAYMENT BONDS. Amended Ord. 3923
The City Manager will have authority to require a performance bond and a payment bond before entering a contract in such amount as the City Manager finds reasonably necessary to protect the best interests of the City. If the City Manager requires a performance bond and a payment bond, the form and amount of the bonds will be described in the notice inviting bids.
22.3.12 EMERGENCIES. Amended Ord. 3923
Notwithstanding any other provision of this Article, where the City Manager determines that an emergency exists (other than where a disaster type emergency has been proclaimed or exists as provided in Section 16.2.7.), he may purchase such property or services as, in his opinion, are required for the preservation of the health, safety or welfare of the residents of the City or for the protection of property therein. The City Manager will report such emergency purchases to the City Council at the next regular or adjourned regular Council meeting.
22.3.13 EXCEPTION; PROFESSIONAL SERVICES. Amended Ord. 3923
a) The provisions of this Article will not apply to contracts for the purchase of professional services, which contracts will be let pursuant to such regulations and procedures as will be established by the City Manager.
b) For the purposes of this Section, the term professional services, means services entailing a high degree of specialized technical or mental skill. Such services include, but are not limited to the service of attorneys, physicians, architects, engineers and appraisers.
22.3.14 EXCEPTION; AUDITORS. Amended Ord. 3923
The provisions of this Chapter will not apply to any certified public account or accountants retained to audit the accounts of the City. Such person(s) will be selected by the City Council pursuant to such procedures as that body may from time to time adopt.
22.3.15 EXCEPTION; COOPERATIVE PURCHASES. Amended Ord. 3923
a) The provisions of this Article will not apply to purchases made pursuant to any cooperative governmental purchase program, which purchases will be made in accordance with such procedures and regulations as will be established by the City Manager.
b) For the purposes of this Section, the term cooperative governmental purchase program means any combination between the City of Torrance and any other public agency or public agencies for the joint purchase of property or services.
22.3.16 EXCEPTION; REPAIRS. Amended Ord. 3923
The provisions of this Article will not apply to the purchase of parts or service for repairs upon City equipment, which purchases will be made in accordance with such procedures and regulations as will be established by the City Manager.
22.3.17 EXCEPTION; SOLE-SOURCE PURCHASES. Amended Ord. 3923
a) The provisions of this Article will not apply to purchases of sole-source services or property, which purchases will be made in accordance with such procedures and regulations as will be established by the City Manager.
b) For purposes of this Section, "sole-source purchases" means those purchases where it would be undesirable or impossible for the City to advertise for bids for particular work or for patented items, or experimental or unique services or products, or where competitive purchases would be unavailable or would not prove advantageous for the City. 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 only to obtain the best economic result for the public.
22.3.18 EXCEPTION; SPECIAL OPPORTUNITY PURCHASES. Amended Ord. 3923
Special opportunity purchases may be made by the City Manager where:
a) The City Council finds that a proposed purchase that is subject to this Article is either below the current market price and will result in a 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 in delivery or installation of the equipment by such a purchase; and
b) The City has a current need for the item or items of property to be purchased.
22.3.19 EXCEPTION; COMPUTER AND NETWORKING HARDWARE AND SOFTWARE PURCHASES. Amended Ord. 3923
The provisions of this Article do not apply to contracts for the purchase of computer and networking hardware and software. The purchase of computer and networking hardware and software will be done pursuant to regulations and procedures established by the City Manager.
22.3.20 MULTI-STEP SEALED BIDDING. Amended Ord. 3923
a) Definition. Multi-step sealed bidding is a two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the City, and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered. It is designed to obtain the benefits of competitive sealed bidding by award of a contract to the lowest responsive, responsible bidder, and at the same time obtain the benefits of the competitive sealed proposals procedure through the solicitation of technical offers and the conduct of discussions to evaluate and determine the acceptability of technical offers.
b) Conditions for Use. The multi-step sealed bidding method may be used when it is not practical to prepare initially a definitive purchase description which will be suitable to permit an award based on price. Multi-step sealed bidding may thus be used when it is considered desirable:
1) To invite and evaluate technical offers to determine their acceptability to fulfill the purchase description requirements;
2) To conduct discussions for the purposes of facilitating understanding of the technical offer and purchase description requirements and, where appropriate, obtain supplemental information, permit amendments of technical offers, or amend the purchase description;
3) To accomplish Subsections 22.3.20.b(1) and (2) of this Section prior to soliciting priced bids; and
4) To award the contract to the lowest responsive and responsible bidder in accordance with the competitive sealed bidding procedures.
22.3.21 PRE-BID CONFERENCES IN MULTI-STEP SEALED BIDDING. Amended Ord. 3923
Prior to the submission of unpriced technical offers, a pre-bid conference may be conducted. The City may also hold a conference of all potential bidders at any time during the evaluation of the unpriced technical offers.
22.3.22 PROCEDURE FOR PHASE ONE OF MULTI-STEP SEALED BIDDING. Amended Ord. 3923
a) Form. Multi-step sealed bidding will be initiated by the issuance of a notice inviting bids. In addition to the normal bid requirements, the multi-step notice inviting bids will state:
1) That unpriced technical offers are requested;
2) Whether priced bids are to be submitted at the same time as unpriced technical offers; if they are, the priced bids must be submitted in a separate sealed envelope;
3) That it is a multi-step sealed bid procurement, and priced bids will be considered only in the second phase and only from those bidders whose unpriced technical offers are found acceptable in the first phase;
4) The criteria to be used in the evaluation of the unpriced technical offers;
5) That the City, to the extent it finds necessary, may conduct oral or written discussions of the unpriced technical offers;
6) That bidders may designate those portions of the unpriced technical offers that contain trade secrets or other proprietary data which are to remain confidential; and
7) That the item being procured must be furnished generally in accordance with the bidder’s technical offer, as found to be finally acceptable, and must meet the requirements of the notice inviting bids.
b) Amendment to the Notice Inviting Bids. After receipt of unpriced technical offers, amendments to the notice inviting bids will be distributed only to bidders who submitted unpriced technical offers, and they will be permitted to submit new unpriced technical offers or to amend those submitted. If, in the opinion of the City, a contemplated amendment will significantly change the nature of the procurement, the notice inviting bids will be canceled, and a new notice inviting bids issued.
c) Receipt and Handling of Unpriced Technical Offers. Unpriced technical offers will not be opened publicly but will be opened in front of two or more City officials. Offers will not be disclosed to unauthorized persons. Bidders may request nondisclosure of trade secrets and other proprietary data identified in writing.
d) Evaluation of Unpriced Technical Offers. The unpriced technical offers submitted by bidders will be evaluated solely in accordance with the criteria set forth in the notice inviting bids. The unpriced technical offers will be categorized as:
1) Acceptable;
2) Potentially acceptable, that is, reasonably susceptible of being made acceptable; or
3) Unacceptable. The City will record in writing the basis for finding an offer unacceptable and make it part of the procurement file.
The City may initiate Phase Two of the procedure if, in its opinion, there are sufficient acceptable unpriced technical offers to assure effective price competition in the second phase without technical discussions. If the City finds that such is not the case, the City will issue an amendment to the notice inviting bids or engage in technical discussions.
e) Discussion of Unpriced Technical Offers. The City may conduct discussions with any bidder who submits an acceptable or potentially acceptable technical offer. During the course of those discussions the City will not disclose any information derived from one unpriced technical offer to any other bidder. Once discussions are begun, any bidder who has not been notified that its offer has been finally found unacceptable may submit supplemental information amending its technical offer at any time until the closing date established by the City. Submissions of supplemental information may be made at the request of the City or upon the bidder’s own initiative.
f) Notice of Unacceptable Unpriced Technical Offer. When the City determines a bidder’s unpriced technical offer to be unacceptable, no additional opportunity to supplement its technical offer will be afforded.
22.3.23 MISTAKES DURING MULTI-STEP SEALED BIDDING. Amended Ord. 3923
Mistakes may be corrected or bids may be withdrawn at any time during Phase One. During Phase Two, mistakes may be corrected or withdrawal permitted only by the City Council in the exercise of its discretion.
22.3.24 PROCEDURE FOR PHASE TWO. Amended Ord. 3923
a) Initiation. Upon the Completion of Phase One, the City must either:
1) Open priced bids submitted in Phase One (if priced bids were required to be submitted) from bidders whose unpriced technical offers were found to be acceptable; or
2) If priced bids have not been submitted, technical discussions have been held, or amendments to the notice inviting bids have been issued, invite each acceptable bidder to submit a priced bid.
b) Conduct. Phase Two will be conducted as any other competitive sealed bid procurement except:
1) As specifically set forth in the Multi-Step Sealed Bidding Process;
2) No public notice need be given of this invitation to submit priced bids because notice was previously given;
3) After award the unpriced technical offer of the successful bidder will be disclosed as follows. The City will examine written requests of confidentiality for trade secrets and proprietary data in the bidder’s technical offer to determine the validity of any requests. If the parties do not agree as to the disclosure of data, the City will inform the bidder in writing what portion of the unpriced technical offer will be disclosed and that, unless the bidder timely protests, the offer will be so disclosed. The City Council will hear and resolve any protests. The technical offer will be open to public inspection subject to any continuing prohibition on the disclosure of confidential data; and
4) Unpriced technical offers of bidders who are not awarded the contract will not be open to public inspection unless the City determines in writing that public inspection of such offers is essential to assure confidence in the integrity of the procurement process; provided, however, that the provisions of Subsection 22.3.24(b)(3) of this Section will apply with respect to the possible disclosure of trade secrets and proprietary data.
ARTICLE 4 - INFORMAL PRICE QUOTATIONS Amended Ord. 3923
22.4.1 OPEN MARKET PURCHASES. Amended Ord. 3923
(Amended by O-3278; O-3380; O-3714; O-3714; O-3847)
Purchases of property or services may be made by the City Manager in the open market and shall be exempt from the procedures set forth in this chapter. The amount of the City Manager’s authority for making open market purchases shall be set by resolution as part of City Policy Number 3 and may be revised from time to time by resolution.
Purchases of property or services by the City Manager shall be let pursuant to such regulations and procedures as shall be promulgated by the City Manager. The City Manager shall report to the City Council on purchases made in the preceding thirty (30) days. The threshold amount and limit for reportable purchases shall be set by resolution as part of City Policy Number 3 and may be revised from time to time by resolution.
22.4.2 MINIMUM NUMBER OF QUOTATIONS. Amended Ord. 3923
(Amended by O-3380)
Purchases of the type described in Section 22.4.1. of this Article may be made on the open market, but wherever practicable, as determined by the City Manager, shall be based on at least three (3) price quotations and be awarded to the lowest responsible bidder.
22.4.3 NOTICE INVITING QUOTATIONS. Amended Ord. 3923
(Amended by O-3380)
The City Manager shall solicit price quotations by written requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board in the City Hall or by any combination thereof.
22.4.5 SPECIAL OPPORTUNITY PURCHASES. Amended Ord. 3923
(Added by O-2987; O-3380)
Special opportunity purchases may be made by the City Manager where:
a) The City Manager finds that the proposed purchase that is subject to this Article is either below the current market price and will result in a 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 in delivery or installation of the equipment by such a purchase; and
b) The City has a current need for the item or items of property to be purchased.
22.4.6 AUTHORITY FOR LEGAL CONTRACTS. Amended Ord. 3923
(Added by O-3847)
The City Manager may authorize contracts for legal services subject to the limitations of Section 1010 of the Charter. Purchases of legal services shall be exempt from the procedures set forth in this Chapter. The amount of the City Manager’s authority for approval of legal services shall be set by resolution as part of City Policy Number 3 and may be revised from time to time by resolution.
Authorization of contracts for legal services by the City Manager shall be let pursuant to such regulations and procedures as shall be promulgated by the City Manager subject only to the limitations of Section 1010 of the Charter.
ARTICLE 5 - PURCHASES OF LESS THAN ONE THOUSAND DOLLARS Amended Ord. 3923
(Repealed by O-3278)