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HomeMy WebLinkAboutB 4.0 Competitve Bidding and Contract Requirements 1998-12-11 � � ,� CITY OF GRAPE�VINE $ECTION B , % ADiMIIVISTRATIVE FOLICY NUMBER 4.0 � sue�Ec-r: COMPETITIVE BIDDING AND PAGE � OF 9 CONTRACT REQUIREMENTS PREPARED BY: Adminis#rative Services/Purchasing EFFECTIVE DA7E �ZI��/9H PURPQSE The purpose for competitive bidding and contracting requirements policy is to ensure #hat the City meets all requirements af State. law and City ordinances and policies governing such a process. PROCEDl1RE A. Purchases af less than $15,000 ' 1 . Purchases af less than $1 ,000 do not require a purchase order. Although compefiitive quotations are nat required they are highly recommended. Departments should make every effort tc► utilize Grapevine vendors where ever passibie. Purchase orders must nat be spiit in arder ta keep the purchase under the S 1,000 limit. Purchases of less than $1,000 may be . a' � accomplished by: • Use of a credit/purchasing card • Apprapriate departmental staff signing on the invaice; • Fill out a check request. 2. If the tatal amount of a purchase is anticipated to be greater than $1,000 but less than �3,004, three verbal quotations are required and should be nated an the requisition. Do not place the order. until the purchase order appraval pracedure has been comt�leted. All departments are encouraged to let the Purchasing Division place all orders. 3. If the tatal cost for a purchase is anticipated to be $3,000 or greater, three written quotations are required. A11 quatatians wili be taken by the Purchasing Division. Do not place any order until the purchase order approvat praceciure has been complefed. Ail orders of �3,OOt7 ar mare must be placed by the Purchasing Division. 4. For requisitions of $15,000 or more, a formal bid procedure is required and such items must be coordinated with the Purchasing Division. SECTION B CITY OF GRAP�EVINE AD1V�IlvISTRATIVE POLICY NUMBER 4.0 � sue�ECT: COMPETITIVE BIDDING AND PAGE 2 OF 9 CONTRACT REQUIREMENTS PREPARED BY: A(ij�'�ICIIStCBtIV@ SeCVIC2S/PUl'CI'laSlllg EFFECTIVE DATE 12/11/98 5. Purchases of $15,000 or greater require City Council approval. The City Council may waive informalities or defects in bid responses or accept bid responses as it shall.deem to be in the best interest of the City. B. Competitive Bidding Requirements The following is a general outline of the legal requirements pertaining to competitive bidding located in Tex. Loc. Govt. Code �Ann. § 252.001 et seq.: 1 . Any contract, other than the exceptions listed below, that requires an expenditure of more than $15,000, must be competitively bid. Each bidder (Contractor) will. be required to sign a contract with the City (Purchasing Agent) binding them to a Scope Of Services (see Appendix) as set forth in the bid. '� _ 2. The following procurements do not have to be competitively bid: a. a procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of a municipality's residents or to preserve the property of the municipality; b. a procurement necessary to preserve or protect the public health or safety of the municipality's residents; c. a procurement necessary because of unforeseen damage to public machinery, equipment or other property; d. a procurement for personal or professional services; e. a procurement for work that is performed and paid for by the day as the work progresses; f. a purchase of land or right-of-way; . . % . � CITY OF GRAPEVINE SECTION _ B �,:_ -,. ADMII�TISTRATIVE FOLICY "�""B�R 4.0 �, � SUBJECT: COMPETITIVE BIDDING AND PAGE 3 OF 9 CQNTRACT REQU[REM�NTS PREPARED BY: q�minis#rative Services/Purchasing EFFECTIVE DATE 12l11/98 g. a procurement of items that are avai4able from only one saurce, including: 7� items that are available from only one source because of patents, copyrights; secret processes, or natura) monopolies 2) films, manuscripts, or books 3) electricity, gas, water, and other utility services 4) captive replacement parts or components far equipment 5) books, papers, and other library materials for a public library that are � availab(e only fram the persons halding.exclusive distribution rights to the materials i 6) management services provided by a non-profit organization to a municipal museum, park, zoo, or other faciiity to which the arganization has provided significant financial or other benefits h. a purchase of rare boaks, papers, and ather library materials for a public library; i. paving, drainage, street widening, and ather public improvem�ents, or related matters, if at (east one-third of the cost is to be paid by or thraugh special assessments levied on property that will benefit from the impro�ements; j, a pubiic improvement praject, authorized by the voters af the municipality, for which there is a deficiency of funds for completing the praject in accordance with the plans and purposes authorixed by the voters; k. a payment under a contract by which a developer participates in the construction of a public improvemenfi; CITY OF GRAPEVIN�E SE�T'°" B ,-- ' ADMIIVISTRATIVE POLICY NUMBER 4.0 � � SUBJECT: COMPETITIVE BIDDING AND PAGE q. OF 9 CONTRACT REQUIREMENTS PREPARED BY: A(i�'pI111StC8tIV@ SeCVIC@S/PUCCIIaSlllg EFFECTIVE DATE 12/11/98 I. personal property sold: 1) at an auction by a state licensed auctioneer; 2) at a going out of business sale held in compliance.with subchapter f, Chapter 17, Business and Commerce Code; or 3) by a political subdivision of this state, a state agency of this state or an entity.of the federal government; and � m. services performed by blind.or severely disabled persons. ' 3. The City, in making an expenditure of more than 53,000 but less than $15,000; shall contact at least two (2) disadvantaged businesses on a rotating basis, 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, the City is exempt from this section. Contact the Purchasing Agent for this information. 4. The Notice Requirements for Competitive Bidding are as follows: a. notice of the time and place at which the bids will be publicly opened . and read aloud must be published at least once a week for two (2) i consecutive weeks in a newspaper of general circulation in the � municipality. The date of the first publication must be before the ' fourteenth (14) day before the date set to publicly open the bids and read them aloud; b. if the contract is for the purchase of machinery for the construction or maintenance of roads or streets, the notice for bids and the order for purchase must include a general specification of the machinery desired. CITY�OF GIZAPEVINE SECTION B ---. ADMIIVISTRATIVE POLICY NUMBER 4.0 'f SUBJECT: COMPETITIVE BIDDING AND PAGE 5 OF 9 CONTRACT REQUIREMENTS PREPARED BY: Administrative Services/Purchasing EFFECTIVE DATE 12/11/98 5. Generally, the notice requirements are handled by the Purchasing Agent, with the exception of certain capital construction projects which are undertaken under the auspices of the Public Works Department or when an engineer or architect is handling the notice provisions for the City. 6. Procurements of high technology equipment and software systems and certain other items of a proprietary nature may be acquired via a request for proposal process, pursuant to State Laws. Contact the Purchasing Agent for information on these procedures. � C. Performance and Payment Bonds The following is a general outline of the legal requirements pertaining to Performance and Payment Bonds located in Tex. Loc. Govt. Code Ann. § 2253.021 et seq.: ` 1 . Whenever the City makes a public works contract for more than $25,000, it shall require the contractor, before beginning the work, to execute to the City a performance bond and a payment bond. 2. If the amount of the contract exceeds $100,000 the surety must: - a. Hold a certificate of authority from the United State Secretary of the Treasury to qualify as a surety on obligations permitted or required under federal law; or b. Have obtained re-insurance for any liability in excess of $100,0.00 from a re-insurer that is authorized and admitted as a re-insurer in this state and is the holder of a certificate of authority from the United States Secretary of the Treasury to qualify as a surety or re-insurer o.n obligations permitted or required under federal law. 3. The performance bond is: a. solely for the protection of the City awarding the public work contract; r b. in the amount of the contract; and ., � CI'TY OF GRAPEVINE . ._��sE�T�°" B ADMIrTISTR�TIVE FOLICY NUMBER 4.0 ��' � sue�ecT: COMPETITIVE BIDDING AND PA�E 6 OF 9 GONTRACT REQUIRENIENTS PREPARED BY: q�ministrative Services/Purchasing EFFECTIVE DATE 12/7 7/98 c. conditioned on the faithful perfarmance of the work in accordance wifih the plans, specifications, and contract documents. 4. The payment bond is: a. solely far the protectian and use of payment bond beneficiaries who have a direct contractual relationship with the .cantractor or a subcantractor to supply Cabor or materials; and b. in the amount af the cantract. 5. A band required by this section must be executed by a corporate surety. 6. The City will not require a band far a public work cantract far $25;4a0.C}� � or less. _ 3 - 7. !f the City fails to obtain a payment bond as is required: a. the Gity is subject to the same liability that a surety would have if the surety had issued a payment bond; and b. a payment bond beneficiary is entifiled to a lien on money due the contractor. D. Accepting the BidlAwarding the Gontract The following is a general outline of the legal requirements pertaining ta accepting the bid/awarding the contract located in Tex. Loc. Govt. Code Ann. § 252.441 et seq.: 1 . lf the campetitive sealed bidding requirement applies to the contrac#, the cantract must be awarded to the lowest responsible bidder. The City may r�ject any and all bids. CITY OF Grapevine S��T'°" B _--, ADMI1vISTRATIVE POLICY NUMBER 4.0 ` � SUBJECT: COMPETITIVE BIDDING AND PAGE 7 OF 9 C06VTRACT REQUIREMENTS PREPARED BY: A(��pIC11StC8tIV� S@CVICES/PUI'CI18Si11g EFFECTIVE DATE 12/1"1/98 2. If changes in plans or specifications are necessary after the performance of the contract is begun or if it is necessary to decrease or increase the quantity. of work to be performed or of materials, equipment, or supplies to be furnished, the City may approve change orders making the changes. 3. The total contract price may not be increased because of the changes unless additional money for increased costs is appropriated for that purpose. 4. If a change order involves a decrease or an increase of S 15,000 or less, the City has granted general authority to the City Manager to approve change orders. 5. The original contract price may not be increased under this section by more than 25%. The original contract price may not be decreased under this section by more than 25% without the consent of the contractor. ` __ The above generally covers the legal requirements relative to competitive , bidding. E. Minimum Contract Requirements � In addition to the competitive bidding requirements, it is equally important that the City execute a contract. In many instances, the City will either draft the contract or use a previously drafted and approved form contract. It is also possible that the contractor will provide its own contract. All contractor or supplier submitted contracts must be reviewed by the City Attorney prior to the contract being signed. The only employees authorized to sign contracts for the City are department directors and their designee, the City Purchasing Agent, and the City Manager or the manager's designees. In any event, it is required that the following terms.and provisions be incorporated into all contracts: 1 . Parties to the Contract - The contract should state who the parties are to � the contract. Also, the contract should state whether or not the contractor is a corporation, general partnership, limited partnership, or sole proprietorship. , . CITY OF GRAPEVINE SE�T'°" B ADMIlvISTRATIVE POLICY NUMBER 4.0 ( SUBJECT: COMPETITIVE BIDDING AND PAGE g OF 9 � CONTRACT REaUIREMENTS PREPARED BY: Administrative �ervices/Purchasing EFFECTIVE DATE 12/1.1/98 2.. Scope of Services and Compensation - The contract should state exactly what goods and services are to be provided and what compensation is to be paid. 3. Pavment - If payment by the City to the contractor is to be made in increments, the contract should so state. Also, if the City is to retain any payments until the project is complete, the contract should so state. 4. Termination and Default - The contract shall stipulate that the City may� terminate the contract with or without cause by giving written notice to the contractor. While there is no specific notification period required, a 30-60 day notice period will normally suffice. It should be noted that if the City terminates the contract prior to completion, it will be responsible for � payment of work and services satisfactorily completed to date.. The contract should state that the City is not required to make any. payments to � -- ' the contractor when the contractor is in default; and, the City has the right - to bring legal action for damages or to force specific performance of the contract. 5. Insurance, Indemnitv and Hold Harmless - The contract shall stipulate that the contractor will at its own expense purchase and maintain the minimum insurance coverage for worker's compensation, comprehensive general liability, and comprehensive automobile and truck liability. The requirement , for such minimum coverage shall be a part of the contract. Amounts of coverage may be obtained from the City's Risk Manager. Also, the contract should state that the contrac#or will pay, indemnify, release, and hold harmless the City from all suits, actions, claims, demands, , losses, expenses, including attorneys' fees, costs, and judgments, resulting from or growing out of any act of the contractor and his subcontractors. The City, however, may not legally indemnify the contractor. 6. Compliance with all Laws Enforcement, and Notices - The contract should state that it is performable in Grapevine, Texas, and if legal action is necessary by either party with respect to the contract, exclusive venue shall lie in Tarrant County, Texas. Also, the contract should state that it is CITY OF GRAPEVINI,�i SECTION B -� ADMIr1ISTRA.TIVE FO�ICY "�""BEp �r 4:0 ,_ sue�ECT: COMPETITIVE �IDQING AND � PA�� 9 OF 9 GONTRACT REQUIREMENTS PREPARED BY: qdministrative Services/Purchasing EFFECTIVE DATE 12/11/98 governed by and canstrued in accordance with the laws and court decisions of the State of Texas, and subject to the Charfier and Ordinances of the City of Grapevine. The contract shauld specify where and to whom ali notices shali be mai(ed or delivered. T. Assignment - The contract shauid state that it cannot be assigned without written appraval af the City. . 8. Amendments - The cantract shauld state that this is the entire agreemenfi between the parties and may only be amended by written agreement of the parties. 9. Term - The contract should state that same is for a period of __ [time �eriod] __ commencing an fihe [c3atel and ending on the [datel Each and every contraefi is different. As such, each and every contract will have specific terms and conditions that are specific ta the type of contracts. Many of these functions are handled an a daily basis by the Purchasing Agent. The above are guidelines that, at a minimum should be drafted or negotiated into a!! contracts. It is suggested that if a contractor desires to exclude one or more of these provisians, same should be reviewed and discussed with the City Manager and the City Attarney. �S t _L ' Gity of Grapevine Purchasing Approval and �idding Requirernents A�proving Department Purchases Be#ween $0.00 & $2,999.99 �' Does not re uire urchase re uest form Requesting Department Requires Supervisor approval Requesting Department Quotes not necessary but recommended Requesting Department ; � be paid by purchasing card, check request or invoice Requesting Department �ne-time urchases ma not be s lit to avoid $3,000 and above biddin re uirements Re uestin De artment Purcha�es �etween �3000.00 � $24,999.99 Re uires urchase re uest form Requestin De artment R uires Supervisor approval Requestin Department Re uires Finance account check Finance Department Requires State of Texas HUB check(required by law) Purchasing If request is$5,000 and above-requires Budget Manager approval Finance Department If request is$10,000 and above-requires City Manager(or designate) approval City Managers Office If re uest is$15,000 and above-requires a enda memo and Ci Council approval Ci Council Requires three written quotations (A"no bid"from a vendor can be accepted but must be in writing) Because of HUB checks quotaQions should be taken by Purchasing and not by the Department. De artments should reference any recommended vendors on the urchase request form. Purchasin Requires Purchase Order Purchasing Requires receipt of material and approval of pa ent Requestin Department Paid for b Ori inal Invoice Accounts Pa able Purchases of$25.000.00 and above Requires purchase request form Requesting Department Requires a complete set of specifications and, if required, a complete set of drawings Requesting Department Requires Supervisor approval Requestin De artment Re uires Director approval Requestin Department Requires Finance account check& approval Finance Department Requires Bud et Mana er approval Finance De artment Re uires C' Manager or Desi nate approval Cit Managers Office quires advertisement in local newspaper. Purchasing ...,quires either a sealed bid, sealed proposal or request for qualifications Purchasing Requires agenda memo and City Council approval City Council Requires Purchase Order Purchasin Re uires receipt of material and ap roval of pa ent Requesting De artment Paid for b Ori inal Invoice Accounts Pa able Credit card Purchases Authorization to obtain a card requires both Department Director and City Manager(or designate) approval Limited to one-time purchases of$2,999.99 and under Limited to single purchase credit limit set&approved by Department Director Limited to monthl purchase credit limit set&approved b Department Director One-time urchases ma not be s lit to avoid $3,000 and above biddin re uirements For purch�ses requiring City Council approval th� followinq tvaes of purchases must aiso include a resolution in addition to the aqenda merr�o Sole source urchases Inter-local purchases Emergency purchases An urchase that is exempted from the normal bidding requirements Fteauests for �rintinq, aaqers, and cellular ahones All requests for printing (regardless of cost) should be put on a purchase request form with a copy of the item to be printed, approved by the requestors immediate supervisor and sent to purchasing for ordering. Requests should include the account number to charge. ���-st time printing requests will require a proof which will be sent by purchasing to the department to be .1 )roved 1�equests for new pagers or cellular phones should be put on a purchase request form and approved by the requestors immediate supervisor and sent to purchasing for ordering. Purchasing will provide the department with the es of pa ers, phones and service plans available upon request. I � �- � � @urchases exem t frorra com etitive biddin and ro osa! re uirements Page 2 'procurement made because of the 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 munici alit ; a procurement necessary to preserve or protect the public health or safety of the municipality's residents; a procurement necessary because of unforeseen damage to public machinery, equipment, or other pro e a procurement for personal, professional, or planning services; defined as Doctor, Lawyer, Engineer, Design a procurement for work that is performed and paid for by the day as the work progresses; a urchase of land or a ri ht-of-wa ; a rocurement of items that are available from onl one source, includin : items that are available from only one source because of patents, copyright, secret processes, or natural monopolies; films, manuscripts, or books; �lectrici , as, water, and other utili services; captive replacement parts or com onents for equipment; books, papers, and other library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and managemenYs 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; a procurement of rare books, papers, and other library materials for a public library; 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; a public improvement project, 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 b the voters; NOTE: Sole source purchases must include a sole source letter from the vendor specifying that they are the onl vendor that can suppl the material or service. Emergency purchases require a written explanation of the type of emergency that exists to be attached to the urchase re uest. Purchases exempt from comnetitive biddinq and qroposal requirements Page 3 a payment under a contract by which a developer participates in the construction of a public improvement as rovided b Subchapter C, Cha ter 212 of the LGC; personal property sold: at an auction by a state licensed auctioneer; at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; � by a political subdivision of this state, a state agency of this state, or an entity of the federal govemment; or under an interlocal contract for cooperative purchasing administered by a regional planning commission established under Chapter 391 of the LGC; or services performed bli�i or severel disabled persons.