Boonville Purchasing code ordinance (§ 2-20)

(a) Purpose. The underlying purposes and policies of this purchasing code are:

(1) To specify, clarify, and modernize the rules governing procurement by the city;

(2) To ensure the fair and equitable treatment of all persons who deal with the procurement system of the city;

(3) To foster effective broad-based competition within the free enterprise system;

(4) To provide safeguards for the maintenance of a procurement system of quality and integrity; and

(5) To maximize to the fullest extent possible, the purchasing value of the public funds of the city.

(b) Definitions. For the purposes of this purchasing code, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

Agencies. City offices, departments, boards, committees, councils and commissions.

Area bidder. A bidder with a business located in Cooper County with at least one permanent staff person working at that business location.

Business. Any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity. Competitive sealed bidding. The process whereby the city accepts sealed bids after public notice by newspaper advertisement.

Competitive sealed proposal. The process whereby the city accepts sealed proposals through request for proposals after adequate public notice.

Construction. The process of building, altering, repairing, improving, or demolishing any structure or building, or other public improvements of any kind to any real property but not including the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property.

Contract modifications. Any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.

Contractor. Any person having a contract with the city.

Contractual services. 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, but not including employment agreements or collective bargaining agreements.

Local bidder. A bidder with a business located in the City of Boonville with at least one permanent staff person working at that business location.

Person. Any business, individual, union, committee, club, other organization, or group of individuals.

Procurement. Buying, purchasing, renting, leasing, or otherwise acquiring any supplies, services, or construction, including all functions that pertain to the obtaining of any supply, service, or construction, such as description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration, construction.

Public works. All fixed works constructed for public use by the city, other than work done directly by any public utility company, whether or not done under public supervision or direction, or paid for wholly or in part, out of public funds. Public

works do not include contracts involving vending, transportation or other service type contracts not specifically related to the construction of a building or structure.

Public works contracts. Any contracts awarded by the city to construct public works.

Supplies. All property, including but not limited to equipment, computer equipment, software, utilities, materials, commodities, printing, insurance, telecommunications equipment and services, and leases of real property, excluding land or a permanent interest in land. The word "supplies" includes both capital and operational needs.

(c) Powers and duties. Without limiting those powers and duties prescribed by law and ordinance, the city administrator and department heads or their agents shall:

a. Purchase supplies, services and construction for all agencies of the city. b. Exercise general supervision and control over all inventories of supplies belonging to the city.

c. Sell, trade, or otherwise dispose of surplus supplies belonging to the city. d. Establish and maintain programs for the inspection, testing and acceptance of supplies, services and construction. e. Open all bids submitted to the city.

f. Make recommendations to the city council concerning the awarding of contracts for which bids have been received.

g. Distribute or cause to be distributed to the various requesting agencies of the city, such supplies as may be purchased by the department.

h. Transfer supplies to or between the various requesting agencies of the city. (d) Methods of source selection. All city contracts involving amounts in excess of $30,000.00 shall be awarded by competitive sealed bidding, pursuant to subsection (d), except as provided in subsections (l), (m), (n), (o), (p), and (q).

(e) Sealed competitive bidding. City contracts shall be let by sealed competitive bidding after advertisement, to the lowest responsible bidder, or to the highest responsible bidder depending upon whether the city is to expend or to receive money.

(f) Advertisement for bids; opening of bids; deposits. All proposals to award contracts involving amounts in excess of $30,000.00 shall be published at least ten days, excluding Sundays and legal holidays, in advance of the date announced for the receiving of bids, in a newspaper of general circulation throughout the city and shall simultaneously be posted on readily accessible bulletin boards in the office of the city. Nothing contained in this section shall be construed to prohibit the city from placing additional announcements in recognized trade journals.

Advertisements for bids shall describe the character of the proposed contract or agreement in sufficient detail to enable the bidders thereon to know what their obligations will be, either in the advertisement itself, or by reference to detailed plans and specifications on file at the time of the publication of the first announcement. Such advertisements shall also state the date, time and place assigned for the opening of bids and no bids shall be received at any time subsequent to the time indicated in the announcement. However, an extension of time may be granted for the opening of such bids upon publication in a newspaper of general circulation throughout the city of the date to which the bid opening has been extended. The time of the bid extension opening shall not be less than five days after the publication thereof, Sundays and legal holidays excluded.

All sealed bids will be publicly opened by the city clerk, or by an officer or employee in the office of the city clerk, and all such bids shall be open to public inspection.

A cashier's check, certified check or bid bond, as a deposit of good faith, in a reasonable amount but not in excess if ten per cent of the contract amount may be required of each bidder by the city in all bids involving amounts in excess of $30,000.00 and, if so required, the advertisement for bids shall so specify.

(g) Awarding of contracts; filing of purchase order or contract; public inspection. The award of any contract involving amounts in excess of $30,000.00 shall be made by the city council to the lowest responsible bidder or the highest responsible bidder as provided in subsection (e). Each bid, with the name of the bidder, shall be entered on a record which record, with the name of the successful bidder indicated thereon, shall, after award of the contract, be open to public inspection in the office of the city clerk. An official copy of each awarded contract together with all necessary attachments, including assignments, shall be retained by the city clerk in an appropriate file open to public inspection.

(h) Responsibility of bidders; determination.

(1) The city administrator is empowered to award and execute contracts and settle claims on behalf of the city within the purview of this article that are for $30,000.00 or less. The city council shall award all other contracts in excess of $30,000.00 and approve the settlement of claims in excess of $30,000. (2) Contracts subject to bidding requirements shall be awarded to the lowest responsible bidder as determined at the sole discretion of the city council. In determining the lowest responsible bidder, the city council may consider the following as well as other criteria:

a. The ability, capacity and skill of the bidder to perform the contract or provide the service required;

b. The capacity of the bidder to perform the contract or provide the service promptly, or within the time specified, without delay or interference;

c. The character, integrity, reputation, judgment, experience and efficiency of the bidder including but not limited to past performance record; default under previous contracts, whether or not such contract was with the city; competency; and failure to pay or satisfactorily settle all bills due for labor and material on former contracts;

d. The quality of performance of previous contracts or services;

e. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

f. The sufficiency of the financial resources and financial ability of the bidder to perform the contract or service; g. The quality, availability and adaptability of the supplies, machinery, plant or other equipment or contractual services to the particular use required; h. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract, including guarantees;

i. Whether the bidder is entitled to local or area preference as set forth in the chapter, either through residency of the bidder or sub-contractors.

(3) When the recommendation of award is not to the lowest bidder, the city administrator shall prepare a statement of the reasons for such award recommendation.

(4) When two or more responsible bidders submit the same low bid, the contract award shall be determined by drawing lots in public at a meeting of the city council; unless one bidder is a local or area bidder and one is a non-local or area bidder, in which event the local or area bidder shall be awarded the contract.

(i) Bid; waiver of defects. In awarding a contract pursuant to sealed competitive bidding, the city council may waive any variation from the bid requirements or defect in a bid that does not materially affect the competitive nature of the bid, is not in violation of any ordinance, statute or law and does not prejudice the right of the public.

A variance or defect does not materially affect the bid if the terms of the bid are clear and unambiguous, the bid contains all essential elements of the contract, if the amount or competitive nature of the bid is not affected and if the bidder has not received an unfair advantage from having seen the competitor's bid documents.

In considering any waiver, the city administrator shall attempt to secure the best work or materials at the lowest price practicable and shall make such determination in a manner as to fairly and reasonably accomplish such purpose with sole reference to the public interest.

(j) Bid; clarification. The city administrator may request clarification of a bid or any part thereof. Clarification shall mean the communication between the city, or its designated agents, and the bidder regarding the bid. Such communication shall not change the bid, the competitive nature of all bids or violate any ordinance, statute or law.

In considering any clarification the city administrator shall attempt to procure the best supply, service or construction at the lowest practicable price and shall make such clarifications in such a manner as to fairly and reasonably accomplish such purpose with the sole reference to the promotion of public interest.

(k) Performance bonds of bidders. A bond, with sufficient sureties, in such amount as shall be deemed adequate, not only to insure performance of contract in the time and manner prescribed in the contract, but also to save, indemnify, and keep harmless the city against all loss, damages, claims, liabilities, judgments, costs and expenses which may in anywise accrue against the city in consequence of the granting of the contract, or which may in anywise result therefrom, may be required of each bidder upon contracts involving accounts in excess of $30,000.00 when, in the opinion of the purchasing agent, the public interest will be served thereby.

(l) Competitive sealed proposals.

(1) If the city administrator determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the city in a particular instance, a contract may be entered into by competitive sealed proposals. The purchasing agent may also provide by regulation that it is either not practicable or not advantageous to the city to procure specified types of supplies, services or construction by competitive sealed bidding.

(2) In the event a contract is to be entered into pursuant to paragraph (2) of this subsection, the following shall apply:

a. Proposals shall be solicited through a request for proposals.

b. Adequate public notice of the request for proposals shall be given in accordance with the rules and regulations promulgated by the purchasing agent.

c. The request for proposals shall state the relative importance of price and other evaluation factors.

d. Proposals shall be opened in a manner so as to avoid disclosure of contents thereof to competing offerors during the process of negotiations.

e. The award of any contract pursuant to a competitive sealed proposal in excess of $30,000.00 shall be made by the city council.

(m) Local preference in contract award.

a. For purchases in excess of $30,000.00:

1. If the lowest bidding local vendor is a responsible bidder; and 2. The lower responsible bidders are not local vendors; and

3. If the lowest bidding local vendor's bid is higher than the nonlocal vendor by no more than two percent or $2,000.00, whichever is less, then that local vendor should be considered the lowest responsible bidder. This provision shall not be applied to a contract if the funding source prohibits it through law, rule or regulation. b. Unless prohibited by law, rule or regulation, the city shall give this same preference to firms who sub-contract with local vendors, based upon the aforementioned variance, as a percentage of the total portion of the sub-contract with the local vendor.

(n) Local preference for small purchases. Any procurement not exceeding $30,000.00, if the lowest bidding local vendor's bid is higher than the non-local vendor by no more than two percent, that local vendor should be considered the lowest responsible bidder.

(o) Area preference in contract award.

(1) For purchases in excess of $30,000:

a. If the lowest bidding area vendor is a responsible bidder; and

b. The lower responsible bidders are not area vendors; and

c. If the lowest bidding area vendor's bid is higher than the non-area vendor by no more than one per cent or $1,000.00, whichever is less, then that area vendor should be considered the lowest responsible bidder. This provision shall not be applied to a contract if the funding source prohibits it through law, rule or regulation.

d. Unless prohibited by law, rule or regulation, the city shall give this same preference to firms who sub-contract with area vendors, based upon the aforementioned variance, as a percentage of the total portion of the sub-contract with the local vendor.

(p) Area preference for small purchases. Any procurement not exceeding $30,000.00, if the lowest bidding area vendor's bid is higher than the non-area vendor by no more than one percent, that area vendor should be considered the lowest responsible bidder.

(q) Sole source procurement. A contract in excess of $30,000.00 may be awarded by the city council for a supply, service or construction item without competition when the city administrator determines in writing that there is only one source for the required supply, service, or construction item.

(r) Emergency contracts. Purchases where an emergency immediately affects the public health, safety or welfare may be made without sealed competitive bidding or sealed competitive proposals if authorized by the mayor; provided, however, that the mayor shall declare the emergency in writing setting out the nature of the emergency. The mayor (or in the absence of the mayor, the mayor pro tem) shall inform the city council of contracts entered into or purchases made pursuant to this section.

(s) Professional services. Contracts for the services of individuals possessing a high degree of professional skill where the ability or fitness of the individual plays an important role shall not be subject to sealed competitive bidding.

(t) Assignment of contracts. No contract shall be assignable or sublet by the successful bidder without the written consent of the city council.

(u) Modification of contracts. Any modification of a contract involving the expenditure of more than $30,000.00 shall be approved by the city council.

(v) Debarment or suspension. The mayor is authorized to debar or suspend a vendor or contractor for just cause. No vendor or contractor shall be debarred or suspended until an opinion regarding the same has been obtained from the city counselor and until procedures recommended by the city counselor have been followed. The period of debarment shall be determined by the mayor on a case-by-case basis, but shall not exceed three years. Reasons for debarment or suspension include without limitation the following:

(1) Commission of fraud or a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract or in the performance of such a contract or sub-contract;

(2) Conviction or indictment under a state or federal statute of embezzlement, theft, forgery, bribery, falsification or destruction of records, or receiving stolen property;

(3) Conviction or indictment under a state or federal antitrust statute;

(4) Failure or default without good cause to perform in accordance with the terms of any contract or unsatisfactory performance of any contract; or

(5) Debarment, disqualification or suspension by another government entity for any reason.

(w) Prohibited contracts and bids.

(1) No contract shall be let or bid accepted without prior approval of the council, nor shall any person contracting with the city, without prior approval of the council, subcontract, assign or sublet any contract for services or materials for the city with any person that:

a. Is delinquent more than 60 days in paying any indebtedness owed to the city in any sum in excess of $100.00;

b. Is in violation of any of the ordinances of the city and has so continued in the violation for more than 30 days after notice to abate has been serviced; or c. Is delinquent more than 30 days in the payment of any tax, fee or fine which accrues to the city.

(2) Any contract let or any bid accepted in violation of this subsection is void.

(x) Joint purchasing. The city is authorized to purchase supplies in cooperation with:

(1) The State of Missouri pursuant to Chapter 67, Section 67.360.

(2) The federal government pursuant to the "Federal Property and Administrative Service Act of 1949, as amended, when authorized by the U.S. General Services Administration in accordance with its rules and regulations.