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HomeMy WebLinkAboutG03.0 Bid Procedures �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 1 of 15 PURPOSE The purpose of the City of Grapevine Bid Procedures is to ensure all purchases made by the city receive the most cost-effective and quality of product bid possible. POLICY 3.1 Purchases under $3,000 and purchases between $3,000 and $50,000 Multiple quotations are not required on purchases of $2,999.99 or less. It is recommended that cost comparisons be made for all purchases. Departments should utilize the vendors as follows: o Departments should use Grapevine vendors whenever possible. o Departments should utilize vendors who have requested to be notified of purchase opportunities. A list of these vendors will be provided to departments upon request. 3.1.2 At least three written bids are required on any purchase with a total between $3,000 and $50,000. All bids must be in writing and should be handled by the Purchasing Division. 3.1.3 Departments should not take bids with a total value of$3,000 and more before the purchase request is submitted to the purchasing division. This procedure will be strictly enforced for the following reasons: o Local Government Code relating to Historically Underutilized Businesses requires that the City send quotations to at least two HUB businesses for all purchases that total between $3,000 and $50,000. The business must be listed on the States HUB list. Because our vendors have requested to be notified of upcoming bids and quotations, it is importantthat all quotations be posted on the City Internet Web Site. 3.2 AUTOMATED BID LIST The Purchasing Division will maintain an automated bid list that will be �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 2 of 15 provided to the department upon request. 3.3 STATE LAW REGARDING HISTORICALLY UNDERUTILIZED BUSINESS ENTERPRISES Local Government Code requires all Texas governmental entities to contact at least TWO (2) disadvantaged businesses on a rotating basis when making any expenditure of more than $3,000 but less than $50,000. The disadvantaged businesses contacted must be based on information provided by the Office of Small Business Assistance of the Texas Department of Commerce. If the list fails to identify a disadvantaged business in the county in which the city is situated, or if the purchase is declared as an emergency (See 5.14 EMERGENCY PURCHASE ORDERS), the City is exempt from this requirement. 3.4 SEALED BID OR PROPOSAL PROCEDURES 3.4.1 It is the policy of the City of Grapevine to use a sealed bid proposal or design/build procedure in compliance with Chapter 252 (PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES) of the State of Texas Local Government Code for any procurement which will total $50,000 or more. With the exception of Public Works contracts, the Purchasing Agent will prepare and solicit all procurement's requiring sealed bids. 3.4.2 The competitive bidding process has two key purposes. Competitive solicitations for bids help ensure the best available value for funds spent and help ensure that public funds are used appropriately, according to law and only for public projects. The bidding process also gives an equal opportunity to those qualified and responsible vendors who want to do business with the government. A standard bidding procedure assures that public money is properly safeguarded. 3.5 REQUIREMENTS UNDER STATE LAW Before a city may enter into a contract that requires an expenditure of more than $50,000 from one or more municipal funds, the city must: o Comply with certain statutory procedures for competitive and sealed �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 3 of 15 bidding or competitive sealed proposals when purchasing goods or services, including high technology items or insurance; and o Use the reverse auction purchasing procedure or comply with required prescribed methods of construction procurement. 3.6 ADVERTISING AND ADVERTISING TIME REQUIREMENTS 3.6.1 Local Government Code requires that the sealed bid be advertised publicly with notice of the time and place at which the bids will be publicly opened and read aloud. The public notice must be published at least once a week for two consecutive weeks in a newspaper published in the municipality that is listed as the City's paper of record. The date of the first publication must be before the 14th day before the date set to publicly open the bids. In addition to the paper of record, the City, at its option, may also advertise with other publications and/or organizations. 3.6.2 Advertising notices for proposed purchases must include: o Requirements or specifications; or o Statement of where the requirements or specifications may be obtained; o Location and time for receiving and opening solicitations; o Name and position of the employee who receives sent solutions. 3.7 BID SPECIFICATIONS 3.7.1 All sealed bids must include complete and detailed specifications of the item or items and/or services to be purchased. THE CREATION AND SUBMISSION OF SPECIFICATIONS IS THE SOLE RESPONSIBILITY OF THE USER DEPARTMENT. Purchasing will assist the user department in any way necessary, but will not be responsible for the final content of the specifications. The Purchasing Division is responsible for all remaining parts of the bids/proposals terms, conditions and document requirements including any legal terminology required by law. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 4 of 15 3.7.2 Vendors can be consulted as a source for specification information as long as they are advised that a sealed bid procedure will be used and the vendor cannot be treated with any type of favoritism. The Purchasing Division may be able to obtain specifications used by other governmental entities or sources; and, therefore, should be contacted if needed for this assistance. In addition, previous specifications submitted to Purchasing will be kept available for reference. 3.8 BID PREPARATION AND ADMINISTRATION All sealed bids and proposals will be prepared and administered by the Purchasing Division. The only exceptions are certain road, highway or building Public Works projects that involve engineering and architectural design services. The Public Works Division will be responsible for notifying the Purchasing Division on any bid or proposal that they issue, the dates of any advertisements, pre-bid conferences and bid opening dates. Purchasing will be responsible for posting the bids on the City Website to insure all bid information is available on the Web site. On both Purchasing Division and Public Works Division bids and proposals, a bid number will be assigned and advertising dates, pre-bid meeting dates and the bid opening date set. The Purchasing Agent or his designee or the designee assigned for Public Works bids/proposals will be responsible for the bid opening and reading of the bids received. Once opened, a pre-audit bid tabulation will be created. Once an audit and bid tabulation is completed, the tabulation along with all bids will be sent to the initiating department for review. When all bids have been reviewed, the initiating department will be responsible for submitting to purchasing a WRITTEN recommendation of bid award and background wording to be included in the Agenda Memo to the City Council. 3.9 BID OPENING AND PRE-BID MEETING PROCEDURES In order to establish a standardized format of bid openings and pre-bid meetings the following procedures should be adhered to: 3.9.1 The Purchasing Agent or his designee or the Public Works Division designee assigned for Public Works bids shall conduct all bid �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 5 of 15 openings and pre-bid meetings. 3.9.2 In addition to the Purchasing Agent or the Purchasing Agent's representative there will be at least one city employee from the department who submitted the purchase request at all bid openings and pre-bid meetings. This employee will be knowledgeable of the bid specifications and at pre-bid meetings should be prepared to answer all questions that pertain to the specifications. At bid openings the purchasing employee will act as the recorder of all information that is read at the bid opening and will publicly confirm that all information was read completely and truthfully. 3.9.3 At Bid Openings all bids will be opened and all pricing will be called out in accordance with the bid opening procedures. 3.10 BID RECOMMENDATIONS AND STATE LAW REGARDING BID AWARDS 3.10.1 The requesting department is solely responsible for reviewing the specifications offered in each bid to insure the specifications meet the bid requirements and must provide a written review of any bid that did not meet the specifications. If the bids offered meet the specifications requested, the recommendation may then be made based on the procedures set out in the State of Texas Local Government Code Chapter 252, Sub Chapter C, 252.043. Under this chapter entitled Award of Contract, the City may award the contract based on: 3.10.2 Sub-section (a) of the competitive sealed bidding requirement applies to the contract for goods or services, the contract must be awarded to the lowest responsible bidder or the bidder who provides goods or services at the best value for the municipality. 3.10.3 Sub-section (b) in determining the best value for the municipality, the municipality may consider: o The purchase price; o The reputation of the bidder and of the bidder's goods or services; �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 6 of 15 o The quality of the bidder's goods or services; o The extent to which the goods or services meet the municipality needs; o The bidder's past relationship with the municipality; o The impact on the ability of the municipality to comply with laws and rules relating to contacting with historically underutilized businesses and non-profit organizations employing persons with disabilities; o The total long-term cost to the municipality to acquire the bidder's goods or services; and o Any relevant criteria specifically listed in the request for bids or proposals. 3.10.4 Sub-section (c) Before awarding a contract under this section, a municipality must indicate in the bid specifications and requirements that the contract may be awarded either to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the municipality. 3.10.5 Sub-section (f) The Governing body may reject any and all bids. 3.10.6 Sub-section (h) if the competitive sealed proposals requirement applies to the contract, the contract must be awarded to the responsible offer whose proposal is determined to be the most advantageous to the municipality considering the relative importance of price and the other evaluation factors included in the request for proposals. 3.10.7 In addition under the State of Texas Local Government Code Chapter 271 , Sub Chapter 271 .9051 a municipality may consider a bidders principal place of business. 3.10.8 Other considerations of a bid award may be: o The safety record of the bidder considered; o Companies or individuals indebted to the municipality; o Inclusion of required bonding and insurance; �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 7 of 15 o Any other consideration as listed in the State of Texas Local Government Code. 3.11 EXEMPTIONS FROM THE COMPETITIVE SEALED BID PROCESS State of Texas Local Government Code allows certain exemptions to the Competitive Sealed Bid process per Sec. 252.022. General Exemptions. 3.12 This procedure does not apply to an expenditure for: 3.12.1 A procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the municipality's residents or to preserve the property of the municipality. 3.12.2 A procurement necessary to preserve or protect the public health or safety of the municipality's residents. 3.12.3 A procurement necessary because of unforeseen damage to public machinery, equipment, or other property. 3.12.4 A procurement for personal, professional, or planning services. 3.12.5 A procurement for work that is performed and paid for by the day as the work progresses. 3.12.6 A purchase of land or a right-of-way. 3.12.7 A procurement of items that are available from only one source, including: o Patents, copyrights, secret processes, or natural monopolies; o Films, manuscripts, or books; o Gas, water, and other utility services; o Captive replacement parts or components for equipment; o Books, papers, and other library materials for a public �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 8 of 15 library that are available only from the persons holding exclusive distribution rights to the materials; and o Management services provided by a nonprofit organization to a municipal museum, park, zoo, or other facility to which the organization has provided significant financial or other benefits. 3.12.8 A purchase of rare books, papers, and other library materials for a public library. 3.12.9 Paving drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements. 3.12.10 A public improvement project, already in progress, authorized by the voters of the municipality, for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters. 3.12.11 A payment under a contract by which a developer participates in the construction of a public improvement as provided by Subchapter C, Chapter 212. 3.12.12 Personal property sold: o At an auction by a state licensed auctioneer; o At a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; o By a political subdivision of this state, a state agency of this state, or an entity of the federal government; or o Under an Interlocal contract for cooperative purchasing administered by a regional planning commission established under Chapter 391 . 3.12.13 Services performed by blind or severely disabled persons. 3.12.14. Goods purchased by a municipality for subsequent retail sale by the municipality. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 9 of 15 3.12.15. Electricity. 3.12.16. Advertising, other than legal notices. 3.12.17 This chapter does not apply to bonds or warrants issued under Subchapter A, Chapter 571 . 3.12.18 This chapter does not apply to expenditures by a municipally owned electric or gas utility or unbundled divisions of a municipally owned electric or gas utility in connection with any purchases by the municipally owned utility or divisions of a municipally owned utility made in accordance with procurement procedures adopted by a resolution of the body vested with authority for management and operation of the municipally owned utility or its divisions that sets out the public purpose to be achieved by those procedures. This subsection may not be deemed to exempt a municipally owned utility from any other applicable statute, charter provision, or ordinance. 3.12.19 This chapter does not apply to an expenditure described by Section 252.021(a) if the governing body of a municipality determines that a method described by Subchapter H, Chapter 271 , provides a better value for the municipality with respect to that expenditure than the procedures described in this chapter and the municipality adopts and uses a method described in that subchapter with respect to that expenditure. 3.13 AGENDA REQUIREMENT RESPONSIBILITIES 3.13.1 Items purchased by the City which total $ 15,000 or more MUST BE SUBMITTED TO THE CITY COUNCIL FOR APPROVAL THROUGH THE AGENDA MEMO PROCESS. 3.13.2 Purchasing Division will be responsible for processing ALL agenda memos for procured materials, except for Public Works projects. Departments SHOULD NOT submit agenda memos for procured materials directly to the City Secretary. The �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 10 of 15 following information will be required from the department BEFORE an agenda memo can be created: 3.13.3 The originating department reviews the bid/quotations and then submits an agenda memo to Purchasing. The agenda memo must include wording describing in detail why the item is needed. 3.14 PURCHASING RESPONSIBILITIES The Purchasing Division is responsible for soliciting offers for procurements of $50,000.00 or more and for providing to the requesting department/division all bid information and tabulations. 3.15 DEPARTMENT RESPONSIBILITIES It is the department/division's responsibility to submit to Purchasing a recommendation of award and agenda wording describing why the item is being procured. In addition, the department should submit any additional information that they deem necessary in order to initiate the agenda memo process. It is the responsibility of the requesting department to answer any questions regarding the recommendation by the City Council. 3.16 SEALED PROPOSAL PROCEDURES 3.16.1 According to the Local Government Code, formal competitive proposals are similar to competitive bids but are limited in scope by Texas statutes. Municipalities can only use this method for procurements of high-technology products. "High technology item" is a service, equipment or good of a highly technical nature, including data processing equipment and software used in conjunction with data processing equipment; telecommunications, radio, and microwave systems; electronic distributed control systems, including building energy management systems; and technical services related to those �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 11 of 15 items. "Item" refers to any service, equipment, good or other tangible or intangible personal property, and high technology items. 3.16.2 The chief differences between bids and proposals are: o The specification is written using performance standards rather than the description of the good or service in a proposal. The specification also lists the factors by which the proposal will be judged, and the weight to be given to each factor. o Vendors submit proposals of their own design for a system to satisfy the requirement set forth in the proposal. Proposals may incorporate entirely different hardware or services to accomplish the same performance. o After proposals are received, the City may enter into negotiations with as many vendors as have submitted feasible proposals to find the best possible proposal for each vendor. 3.17 Although there is no legal requirement to do so, proposals are often used to procure professional or personal services. While the Professional Services Procurement Act prohibits using competitive bids to procure those covered professional services, there is no problem with using a concept based on the competitive proposal to obtain qualifications and rates charged for professional services from interested professionals. The only requirement is that a governmental entity may not select a provider of professional services or award a contract for the services on the basis of competitive bids. 3.18 BIDS AND REQUESTS FOR PROPOSALS (RFP'S) 3.18.1 Requests for Proposals (RFP) are documents notifying vendors that the City has specific requirements for materials and supplies and is offering vendors an opportunity to fulfill those requirements. 3.18.2 These documents are designed to solicit bids or proposals from well-qualified vendors. They are usually sent to those vendors known to provide the particular commodity. The Bid/RFP is also �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 12 of 15 advertised in the local newspaper according to statutory requirements. 3.18.3 Bids must be advertised as widely as possible to ensure fair competition. 3.18.4 At any time before the date is set for opening bids, the City may cancel Bids and RFP's. Notices should be made to all vendors receiving bid/proposal invitations. 3.18.5 Bids and RFP's may also be amended after being issued. When amendments are made, the same requirements for notification and advertising must be made. The amendments notice should state whether the bid opening date has been extended. The bid opening date must be extended if the period from the date the modification or amendment is issued is less than the required notification period. 3.18.6 A bid invitation or a proposal solicitation is a set of documents needed by the vendor in order to respond to the requirements. Generally, the proposal includes: 3.18.6.1 Standard Terms and Conditions Standard terms and conditions are all conditions of doing business with the City that remain constant for all contracts and purchases, unless specifically deleted. They are usually presented in an attachment that goes out with all bid invitations and proposal requests. Standard terms and conditions are also frequently incorporated into the City's purchase order forms. 3.18.6.2 Special Provisions Special Provisions refers to any terms and conditions not always required but required for a particular contract or purchase. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 13 of 15 3.18.6.3 Pricing The vendor quotes prices in accordance with the specification requirements in the offer and acceptance page. Prices are usually provided for each unit and the total cost for the estimated amount required. 3.18.6.4 Specification In place of enclosing the actual specification, information about where the specification can be obtained may be substituted. 3.19 Bids or Request for Proposals (RFP) Solicitation A Bid or RFP requires certain information from the bidder or vendor making the proposal. Requirements on the bid invitation or RFP solicitation should cover the solicitation details including: 3.19.1 A Bid/RFP identification number. Vendors must be able to refer to the number when making inquiries, and purchasing staff must be able to trace all transactions to determine their status. 3.19.2 A brief description of the materials or supplies to be provided. 3.19.3 The closing date and hour for receiving bids or proposals. This should state that the time is determined by a designated time source, for example, the purchasing office's clock. 3.19.4 The place where bids or proposals are to be sent, including the address and office. Information on where specifications may be obtained, if not included in the package. 3.19.5 Person to contact for information and instructions to bidders. 3.19.6 The factors to be used to evaluate the proposals and the weights �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 14 of 15 attached to each factor (for RFP's only). Evaluation factors may include price, experience of requester's staff, ability to respond in a timely manner, past recommendations, safety record, financial soundness, as well as any other necessary factors. 3.20 BRAND NAME OR EQUAL SPECIFICATIONS Brand-name specifications list a good or service by brand name, model and other identifying specifications to limit the bidding to a single preferred product. This type of specification discourages competition and should be avoided unless the item is the only one that will satisfy the City's requirement. It is useful when purchasing replacement parts where only the brand name item will work. It should be noted that the City might have to explain in a court of law why another brand will not work, so this type of specification should be used judiciously. Equal specifications are similarto brand-name specifications, except that equal products are acceptable in place of the named brand. 3.21 BONDING REQUIREMENTS 3.21.1 Bids may be subject to bonding requirements. Typically, a bid bond may be required for public works projects or on bids exceeding a specified dollar level. This ensures that if the bidder attempts to withdraw after the bid is accepted, the City will not suffer loss. 3.21.2 In Texas, the successful bidder on a public works contract exceeding a dollar level set by law must post a performance bond. The successful bidder on any other contract exceeding certain dollar levels may have to post a performance bond if required by the City. 3.21.3 Surety companies authorized to do business in this state should execute the bonds. 3.21.4 The City should always consider the ramifications in deciding whether to require a bond when there is a choice. If there is substantial risk of loss, a bond should be required. The cost of bonding will undoubtedly be passed along in the contract price. 3.22 INSURANCE REQUIREMENTS �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- BID PROCEDURES SECTION. G NUMBER: 3.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 15 of 15 3.22.1 Whenever the City contracts with an outside party (contractor, consultant, vendor, or concessionaire) for goods or services, the bid or request for proposal that is released to the public should include an indemnity clause (hold harmless clause), along with a contractual agreement, to be executed upon award of the contract, that transfers the risk of the project from the City to the contractor. Because the contractor may or may not have the financial resources to handle the risks that are transferred in the contract, the City may require that insurance be purchased and maintained by the contractor for financial security. 3.22.2 Most contracts are tailored for individual projects and programs; therefore, certain elements of the insurance required should be addressed in every contract document. One of the most important elements is the actual insurance coverage, which include the coverage types and limits that are dependent upon the nature of the project/program. 3.22.3 Although, not all types and level of insurance are required for every project (and limits will vary by exposure), understanding the coverage's provided by these policies is important to assure that all of the City's potential liabilities and exposures from the project are properly protected. Should any questions arise about the amounts and types of insurance requirements the initiating department should contact the City's Risk Manager's department.