Chapter 4.05
PROCUREMENT
Sections:
4.05.010 Purpose and authority.
4.05.030 Ethics of procurement.
4.05.040 Procedures according to value and project type.
4.05.050 Grants and federal funding.
4.05.060 Consideration of bids.
4.05.010 Purpose and authority.
The purpose of this chapter is to direct the purchase of goods and services at a reasonable cost. An open and fair, documented, and competitive process is to be used whenever reasonable and possible. The purchasing function’s integrity, efficiency, and effectiveness are critical elements of sound government.
Per RCW 35.27.370, the town’s authority to contract, and be contracted with, is vested in the town council. Town council has delegated authority to the mayor to execute contracts and modifications that meet the criteria of Chapter 3.12. Only the mayor has the designated signature authority to sign contracts and binding agreements for the town.
Thresholds:
|
Amount |
Approval |
|---|---|
|
< $1,000 |
Dept. Head |
|
$1,000--$5,000 |
Mayor |
|
> $5,000 |
Council |
|
Amount |
Approval |
|---|---|
|
< $1,000 |
Dept. Head |
|
$1,000--$5,000 |
Mayor |
|
> $5,000 |
Council |
|
Amount |
Approval |
|---|---|
|
< $1,000 |
Dept. Head |
|
$1,000--$5,000 |
Mayor |
|
> $5,000 |
Council |
(Ord. 605, 2022)
4.05.020 Controlling laws.
All purchases shall comply with appropriate and relevant federal, state, and town laws and policies. If the appropriate and relevant federal or state laws, regulations, grants, or requirements are more restrictive than these guidelines, such laws, regulations, grants, or requirements should be followed.
In the event any bid threshold limits in the Revised Code of Washington (RCW) are different from the values listed within this policy, the RCW limits shall control. The town attorney shall be consulted when questions regarding potential conflicts arise. (Ord. 605, 2022)
4.05.030 Ethics of procurement.
The town is committed to providing a very fair, transparent, and equitable process to our purchases. We ask all staff participating in a solicitation and/or award process to be thoughtful of any perceived or actual conflicts of interest. Many of the situations defined as prohibited conduct in the town’s personnel policies could arise in the procurement context.
A. Reasonable Person Standard. The town seeks to avoid situations that involve conflicts of interests, or the appearance of such conflicts based on inappropriate opportunities to influence the solicitation and/or award process. The town uses the measures of how a reasonable person would perceive the situation. A reasonable person standard might consider how the situation would appear if covered by a news story or viewed from the perspective of a public interest group. Common questions to ask are: Could you comfortably explain your actions? Would taxpayers believe you were acting in their best interest?
B. Limitations on Gifts. Town staff should refuse gifts, meals and invitations to events such as concerts or sporting events, that could be reasonably perceived as: improperly influencing performance of your official duties; a reward for awarding a contract; or offered or given to influence, find favor, or with a reasonable expectation of creating an obligation to the giver.
Vendors are prohibited from offering gifts during the solicitation and ensuing contract award process. Contact the legal department for assistance if you encounter unusual situations.
Former employees as vendors/consultants/contractors: Contact legal before initiating a contract with former town employees to determine if doing so would create an actual conflict of interest or the appearance of a conflict of interest. (Ord. 605, 2022)
4.05.040 Procedures according to value and project type.
A. Local government purchases and projects generally fall into one of five categories:
1. Public Works. All work, construction, alteration, repairs, or improvements to physical property, other than ordinary maintenance, that are paid for by a municipality. Each project must be estimated to correctly apply bid limit dollar amounts to determine if a public works project must be competitively bid. The estimate shall include all phases and anticipated contracts for the entirety of the project, and include materials, supplies, equipment, and labor on the construction of that project and applicable sales and use taxes. If the total project amount is over the bid thresholds, then all contracts, no matter the individual dollar amount, must be procured through the bid process. The estimate may be prepared by an outside third party; however, the final cost estimate must be validated by the town.
2. Professional Architecture and Engineering Services. Architectural and engineering consultants are initially selected based upon their qualifications, rather than price. The defining characteristic of Chapter 39.80 RCW is its strict insistence on qualification-based selection (QBS) of A&E professionals. In contrast to public works contracts, purchases (equipment, materials, and supplies), and purchased service contracts, an agency cannot consider price in the selection process for professional A&E services; it must select the most qualified firm, and then negotiate a price for the work contemplated.
The town will negotiate a contract with the most qualified firm at a price which the Town determines is fair and reasonable. In making its determination the town shall take into account the estimated value of the services to be rendered as well as the scope, complexity, and professional nature. If the town is unable to negotiate a satisfactory contract with the firm selected at a price the town determines to be fair and reasonable, negotiations shall be terminated, and the town shall begin negotiations with the next highest qualified firm.
3. Personal Services. Technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement, not including professional architecture and engineering services.
First, research and send a written solicitation to qualified firms or individuals describing the needed services. The MRSC consultant roster can be used if desired. Request prices, schedules, and qualifications.
If a formal request for proposals is needed, contact the town clerk/treasurer.
Submit all proposals and any evaluation documents to the mayor and town council who then administer contract process.
4. Purchased Services. Services provided by vendors for the routine, necessary, and continuing functions of a local agency, mostly related to physical work. These services are usually repetitive, routine, or mechanical in nature, support the agency’s day-to-day operations, involve the completion of specific tasks or projects, and involve minimal decision-making. For most purchased services, the main determinant of award is price and there are no bid limits or requirements for advertising, bonds and/or retainage, or, depending on the specific facts, prevailing wages.
5. Materials, Supplies, Equipment. Purchases of goods, equipment, supplies, or materials that are not connected with a public works project.
B. Materials, Supplies and Equipment (Excluding Public Works).
|
Quotes Allowed |
Vendor List Allowed |
Competitive Bids Required |
|---|---|---|
|
≤ $7,500 |
≤ $15,000 |
> $15,000 |
Reference: RCW 35.23.352
C. Personal and Purchased Services (Excluding Public Works).
|
Noncompetitive Process |
Consultant Roster |
Formal RFP |
|---|---|---|
|
≤ $25,000 |
$25,000--$150,000 |
> $150,000 |
D. Professional Services (Architects and Engineers).
|
Noncompetitive Process |
Consultant Roster |
Formal RFP |
|---|---|---|
|
≤ $25,000 |
$25,000--$150,000 |
> $150,000 |
Reference: Chapter 39.80 RCW
E. Public Works.
|
Solicit Quotes/Day Labor |
Small Works Roster |
Formal Bid Process |
|---|---|---|
|
≥ $75,500 single-craft |
≤ $350,000 |
> $350,000 |
Reference: Chapter 39.04 RCW, ESSB 5418
F. Small Works Roster (SWR). When the estimated cost of a public works project is three hundred fifty thousand dollars or less, the town may follow the small works roster (SWR) process for construction of a public work or improvement as an alternative to the general competitive bidding requirements. The town of Wilbur has contracted with the Municipal Research and Services Center of Washington (MRSC) for the town use of a statewide electronic database for small public works roster and consulting services developed and maintained by MRSC.
G. Formal Bid Process. Public works competitive bidding is designed to prevent favoritism in awarding public work contracts and to enable local governments to obtain the best work or supplies at the most reasonable prices. It is also designed to provide a fair forum for bidders and to protect the public interest.
1. The town engineer submits the project information, including technical specifications, bid and contract time frames, pre-bid conference dates/times (if applicable), to the clerk/treasurer.
2. The clerk/treasurer shares the project information with the mayor and town council.
3. The notice to bid is to be published in the town’s official newspaper, or a newspaper of general circulation most likely to bring responsive bids, at least thirteen days prior to the submittal deadline. The notice shall state the nature of the work for which plans and specs will then be available free of charge online and on file.
4. Bids must be sealed and filed with the town clerk within the time specified.
5. Public bid opening is required.
6. The town engineer verifies the bids meet the requirements of the invitation to bid and notifies the town clerk of the lowest responsive bid to be shared and approved by town council. (Ord. 605, 2022)
4.05.050 Grants and federal funding.
Purchases or work that have received a grant or federal funding may not be covered by this chapter. These types of purchases often have their own procurement requirements. All grants are different, so one size does not fit all. Some grants simply require you to use your own procurement rules, while others require you to insert their contracting clauses into your contract. (Ord. 605, 2022)
4.05.060 Consideration of bids.
A. Responsive Bid. Responsive bids are bids that are submitted on time with all of the information the town requested. Bids submitted after the submittal deadline or at the wrong location should be rejected as nonresponsive–-in other words, the town will neither accept nor open late bids. If a contractor claims extenuating circumstances, refer them to the town attorney.
B. Responsible Bidder. The town is required to award public works contracts to a responsible bidder with the lowest responsive bid. This applies to informal bidding, such as a small works roster, as well as formal competitive bids. Responsible bidders must meet a number of mandatory criteria. The bidder must:
1. At the time of bidding be a registered contractor in compliance with Chapter 18.27 RCW.
2. Have a current Washington State Unified Business Identifier (UBI) number.
3. If applicable, have industrial insurance/workers’ comp coverage required in RCW Title 51.
4. Have a Washington State Employment Security Department (ESD) account as required in RCW Title 50.
5. Have a state excise tax registration number as required in RCW Title 82.
6. Not be disqualified from bidding under RCW 39.06.010 or 39.12.065(3).
7. Not have any apprenticeship violations, if applicable. (Ord. 605, 2022)