Item 05 2024-00679 Ordinance Deleting, Amending, and Adding Various Chapters of Title 3 of the Sacramento City Code Relating to the City Manager’s Purchasing and Contracting Authority — Law and Legislation Committee, April 2, 2024 (part 1 of 2)

City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00679 4/2/2024 Discussion Item 5.

Ordinance Deleting, Amending, and Adding Various Chapters of Title 3 of the Sacramento City Code Relating to the City Manager’s Purchasing and Contracting Authority File ID: 2024-00679
Location: Citywide
Recommendation: (1) Review the proposed ordinance deleting, amending, and adding various chapters of Title 3 of the Sacramento City Code (SCC) relating to the City Manager’s purchasing and contracting authority; and (2) pass a Motion forwarding the ordinance and amended administrative Procurement policies to Council for consideration.

Contact: Pete Coletto, Finance Director, 916-808-5416, [email protected], Finance Department; Dayana Reyes Zanaska, Procurement Manager, 916-808-5524, [email protected], Finance Department; Ashley Petralli, Program Specialist, 916 -808-5749, [email protected], Finance Department Presenter: Pete Coletto, Finance Director, 916-808-5416, [email protected], Finance Department
Attachments:
1-Description/Analysis
2-Procurement Ordinance (redline)
3-Procurement Ordinance (clean)
4-Policy-Supplies (redline)
5-Policy-Supplies (clean)
6-Policy-Non-Professional Services (redline)
7-Policy-Non-Professional Services (clean)
8-Policy-Public Projects (redline)
9-Policy-Public Projects (clean)
10-Policy-Non-Discrimination (redline)
11-Policy-Non-Discrimination (clean)
12-Procurement Modernization Presentation
Description/Analysis
Issue Detail: The Finance Department, in collaboration with the City Attorney’s Office, has

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File ID: 2024-00679 4/2/2024 Discussion Item 5.
undertaken an effort to modernize the City’s procurement practices, reorganize and clarify the Procurement sections within SCC, adopt policies that will support local businesses, and increase staff efficiencies by revising procurement thresholds to align with Federal standards and similar cities.

In reviewing the City’s thresholds for which informal and formal competition is required for purchases, staff determined that the City’s thresholds for informal and formal competition were last adjusted in 2010. Staff evaluated existing thresholds for Sacramento County, the Federal Government, and the 10 largest cities in California. Current thresholds are summarized below:

Staff also estimated the cost in labor hours for informal and formal solicitations and utilized existing contract data for fiscal year 2022/23 to estimate the potential cost avoidance of adjusting existing solicitations. Recommended updates to existing thresholds would achieve an estimated cost avoidance of over $1.18 million annually and are outlined below:

In conjunction with these updates, staff recommends adding a requirement at the informal threshold to solicit at least one bid from a local business, as defined in the City’s Local Business Enterprise Policy.

Increasing the City’s thresholds for competition as proposed will lessen the administrative burden on staff, increase efficiencies in procurement, and support local businesses while still aligning with

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File ID: 2024-00679 4/2/2024 Discussion Item 5.

Federal standards and similar cities.

Additional revisions to SCC will further increase staff efficiencies by allowing for alternative methods for competition through Requests for Proposals (RFPs) and by way of piggybacking off of solicitations and contracts already performed by other agencies. Existing code requires additional approvals for both and the allowance of each within SCC will reduce items for council to review as well as allow staff to leverage purchasing power through cooperative agreements and drive competition through solicitation types best suited for a specific service or project.

Policy Considerations: Adopting the proposed changes includes deleting the current chapters 3.56,

3.60, and 3.64; amending various sections of chapters 3.04 and 3.80, and adding new chapters 3.56,

3.60, and 3.64 of the (SCC) related to the City Manager’s purchasing and contracting authority and updating existing applicable policies for consistency. Preliminary edits to policies previously adopted by Council have been redlined and attached and will be finalized upon completion of the Union noticing period. Additional preliminary edits to policies approved by the City Manager’s Office are also redlined and will be presented for approval after the Union noticing period has ended.

Economic Impacts: Businesses qualifying as Local Businesses as defined in the City’s Local Business Enterprise Policy will have additional opportunities to contract with the City as a result of amendments to the informal purchasing threshold and the inclusion of a requirement that at least one of the informal bids solicited at this threshold must be from a local business, unless one does not exist.

Environmental Considerations:

California Environmental Quality Act (CEQA): This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines Section 15060(c)(3)).

Sustainability: Not applicable.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: Increased efficiency and modernization of processes is of the utmost importance as the City faces a significant budget deficit. Approval of the proposed updates to SCC and related procurement policies will allow align the City with thresholds set by the Federal government as well as other similar cities and will support local businesses while creating administrative efficiencies across all departments.

Financial Considerations: Approving updates to SCC, procurement thresholds, and policies as recommended could allow for an estimated $1.18 million in cost avoidance annually.

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File ID: 2024-00679 4/2/2024 Discussion Item 5.

Local Business Enterprise (LBE): The recommended updates include additional requirements for staff to solicit bids from at least one local business, as defined by the City’s Local Business Enterprise Policy, within the informal threshold. In combination with the LBE policy preferences and requirements, staff strives to promote and encourage City departments to contract with local businesses whenever advantageous depending on pricing and/or overall value.

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1 ORDINANCE NO.

Adopted by the Sacramento City Council
[Date Adopted]

AN ORDINANCE DELETING, AMENDING, AND ADDING VARIOUS
CHAPTERS OF TITLE 3 OF THE SACRAMENTO CITY CODE, RELATING

TO PURCHASING AND CONTRACTING AUTHORITY

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

Section 3.04.010 of the Sacramento City Code is hereby amended to read as follows:

3.04.010 City manager’s contracting authority.

A. Income or expenditure less than $250,000.

1. Notwithstanding any other provision of this title, the city manager is authorized, without complying with the competitive bidding procedures of this title, to execute any contract, if the amount of the expenditure or income is less than $250,000.

If no expenditure or income amount is stated in a contract, the amount is the estimated value of the goods or services to be exchanged over the term of the contract, including any renewal options, as determined in good faith by city staff.

2. For purposes of subsection A.1, for any contract regarding real property –

a. The amount of the expenditure or income:

i. Is the amount prior to any discount or reduction in price given or received, and

ii. includes the actual periodic rental or other payments required over the entire term of the contract, including any renewal option periods set forth in the contract.

b. The amount of the expenditure or income excludes:

i. Periodic expenses that the other party is required to pay, including utilities, taxes, insurance, repairs, and maintenance, and

2 ii. Usual costs associated with the sale of real property, including real estate commissions, closing costs, escrow costs, and related costs and fees.

3. For purposes of subsection A.1, for the sale of real property owned by the city, the following procedures must be followed:

a. The price must be established based upon a fair market value appraisal conducted by city staff or under an agreement executed by the city manager with a qualified independent real estate appraiser. If the established price is less than $250,000, the real property shall be listed on the open market by the city manager or with a licensed real estate broker under an exclusive or nonexclusive listing agreement executed by the city manager, unless the city manager determines that it is in the best interest of the city to do otherwise.

b. The entire net income from the sale of the property after reduction for city staff labor reimbursement, if applicable, shall be deposited into the specific city fund which, under city accounting procedures, carries or has carried the parcel or parcels of real estate as an asset of the fund.

4. For purposes of subsection A.1, for any contract establishing an externally funded program or any grant, the contract must also satisfy any restrictions otherwise established by resolution of the city council.

5. The city council may, by resolution, increase the city manager’s authority under this section to execute any contract or category of contracts under circumstances the city council finds appropriate.

B. Income or expenditure of $250,000 or more.

Unless otherwise specified in this title, all contracts involving income or expenditure of $250,000 or more require approval of the city council, for signature of the city manager. The signature of the city manager constitutes certification that there remains unexpended and unapplied balances of the appropriations or applicable funds sufficient to pay for the city’s obligations under the contract.

SECTION 2.

Section 3.04.020 of the Sacramento City Code is hereby deleted.

SECTION 3.

3 A new section 3.04.020 of the Sacramento City Code is hereby added to read as follows:

3.04.020 City manager’s authority to execute contract amendments.

A. Contract amendments that increase the contract amount.

1. For contracts originally awarded for a price of less than $250,000:

a. The city manager is authorized to execute contract amendments that increase the contract amount, provided that the contract amount remains less than $250,000.
b. City council approval is required for a contract amendment that increases the contract amount to $250,000 or more.
c. After the city council approves a contract amendment that increases the contract amount to $250,000 or more, the city manager is authorized to execute contract amendments that further increase the contract amount, provided that the sum of all contract amendments executed by the city manager does not exceed $25,000.

2. For contracts originally awarded for a price of at least $250,000, but less than $1,000,000, the city manager is authorized to execute contract amendments that increase the contract amount, provided that the sum of all such contract amendments executed by the city manager does not exceed 10% of the original contract price.

3. For contracts originally awarded for a price of at least $1,000,000 but less than $10,000,000, the city manager is authorized to execute contract amendments supplements that increase the contract amount, provided that the sum of all such contract amendments executed by the city manager does not exceed 8% of the original contract price.

4. For contracts originally awarded for a price of $10,000,000 or more, the city manager is authorized to execute contract amendments that increase the contract amount, provided that the sum of all contract amendments executed by the city manager does not exceed 6% of the original contract price.

B. Notwithstanding subsection A, any single contract amendment that increases the contract amount by more than $250,000 requires city council approval.

C. The city manager is authorized to execute contract amendments that increase the contract amount in excess of the limitations set forth in subsection A., to the extent that it becomes reasonably necessary in the judgment of the city manager to take such action to:

4 1. Prevent an interruption of work or services that would result in a substantial increase in cost to the city; or

2. Protect any person, property, equipment, materials, or the environment from substantial and immediate risk of damage or injury from any cause, or, where damage or injury has occurred, prevent the occurrence of further damage, injury, or deterioration.

For any action taken pursuant to this subsection, the city manager shall present a report to the city council describing the action taken and the reason for such action as soon as reasonably possible, but in any event not later than 30 days after taking such action.

D. If the city manager executes one or more contract amendments to increase the contract amount pursuant to the city manager’s authority specified in this section, and the city council subsequently ratifies the contract amendment previously executed by the city manager, the city manager’s authority to execute contract amendments is reset to the amounts set forth in subsection A.

E. In executing a contract amendment pursuant to the approval authority specified in this section, the city manager is not required to obtain city council approval for the transfer of funds necessary to pay for the contract amendment from any contingency previously approved for the contract by the city council.

F. For contracts in any amount, the city manager is authorized to execute contract amendments that decrease or do not change the contract amount.

G. The city manager’s authority to execute contract amendments as specified in this section is limited to changes that do not exceed the general scope of the original contract unless in the judgment of the city manager a contract amendment exceeding the general scope of the original contract is necessary to protect any person, property, equipment, materials, or the environment from the risk of damage or injury, or, where damage or injury has occurred, to prevent the occurrence of further damage, injury, or deterioration.

H. The city council may, by resolution, increase the city manager’s authority under this section to execute any contract amendment or category of contract amendments under circumstances the city council finds appropriate.

I. Notwithstanding anything to the contrary in this section, the city manager’s authority to execute amendments for assessment district proceedings is governed by the provisions of any applicable statutes, ordinances, or other laws.

3.04.025 Contracting authority generally.
5 A. The city manager may adopt administrative policies for the delegation of the city manager’s contracting authority.

B. All contracts and contract amendments must be approved as to form by the city attorney before execution.

C. For contracts in any amount, the city manager is authorized to execute options for renewal that decrease or do not change the contract amount.

D. The following definitions apply in this chapter:

“City attorney” means the city attorney or designee.

“City manager” means the city manager or designee.

“Contract” means any written, legally binding agreement between the city and another person.
“Contract amendment” means any written modification to a contract.

SECTION 3.

Chapter 3.56 of the Sacramento City Code is hereby deleted.

SECTION 4.

A new Chapter 3.56 is hereby added to the Sacramento City Code to read as follows:

Chapter 3.56 PROCUREMENT

Article I. In General

3.56.010 Definitions.

The following definitions apply in this title:
“Affiliates” means persons that have the same or substantially the same management, ownership, control, or one or more of the same principal employees. “Bid” means a submission to the city in response to the solicitation of a contract to be awarded to the lowest- responsible bidder.
“Bidder” means any person that submits a bid.
“Change order” means a written amendment to a contract for a public project. 6 “City manager” means the city manager or designee.
“Competitive bidding” means the process of soliciting bids and awarding a contract to the lowest-responsible bidder.
“Contract” means a written agreement to purchase goods, nonprofessional services, or professional services; or to construct, repair, or maintain a public project. “Contract amendment” means a written modification to a contract, including change orders, supplements, task orders, and any other written instrument that modifies the contract.
“Contract amount” means the not-to-exceed amount of a contract, as modified by any contract amendment.
“Cooperative purchasing” means procurement conducted by, or on behalf of, two or more public agencies, to leverage their combined purchasing power. “Debarment” means any action taken by the city manager, or a hearing examiner on appeal, pursuant to this chapter, or by another public agency, to suspend or render a person ineligible to bid upon, be awarded, or contract with any public agency. “Expenditure” means the payment of funds or the provision of goods or services by the city.
“Goods” means supplies, equipment, or materials, including materials required for the maintenance or repair of any street, sewer, or water work. “Lowest-responsible bidder” means the responsible bidder, as determined pursuant to section 3.56.020, whose bid is responsive to the bid requirements, including any local business enterprise program or local hire program requirements included in the bid specifications, and whose bid price is the lowest after all bid prices are calculated to include any applicable bid price preferences. “Maintenance” means recurrent, periodic, or scheduled work required to preserve a facility. It includes:

1. Work required to restore components that have deteriorated from wear and tear; and

2. Other work on a facility to prevent damage or deterioration to that facility which would be more costly to restore.
“Nonprofessional services” means services of a nonprofessional character of any type, description, or variety, including tree-trimming services, janitorial services, and repair services for office machines, equipment, and automotive vehicles. “Piggybacking” means relying on a solicitation process conducted by another public agency, if permitted by the other public agency. 7 “Predecessor-in-interest” means a person whose rights, assets, debts, or obligations are acquired or assumed by another person.
“Principal” means any officer, director, owner, shareholder, partner, responsible managing employee, or person with primary management or supervisory responsibilities, including any person who has a substantial influence or substantive control over performance of a contract.
“Professional services” means services of a professional character, including services rendered by engineers, architects, auditors, actuaries, and attorneys. “Proposal” means an offer in response to a solicitation for a contract to be awarded on a basis other than lowest cost.
“Proposer” means any person that submits a proposal, statement of qualifications, or other response to a solicitation for a contract to be awarded on a basis other than lowest cost.
“Protest” means a claim, filed by a bidder or proposer in accordance with the provisions of this chapter and city policies, alleging improprieties in the solicitation documents or challenging a recommendation to award a contract to a particular bidder or proposer.
“Protested contractor” means a bidder or proposer against whom a protest has been filed.
“Protester” means a potential contractor, or the potential contractor’s authorized representative, who files a protest in accordance with the provisions of this chapter and the city’s protest policy.
“Public project” means the following:

1. A project for the erection, improvement, and remodeling of public buildings and works;

2. Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow;

3. Street, sewer, or water work, except maintenance or repair;

4. Maintenance and repair of public facilities other than street, sewer, or water facilities.

5. Furnishing goods for any such projects.
“Purchase” means the procurement of goods, nonprofessional services, professional services, or public projects, and includes the rental or leasing of goods. “Remodel” means alteration or conversion work on an existing facility to change its use, function, or layout.
8 “Repair” means restoration of a facility or components to such condition that it may be used effectively for its designated purpose, by overhaul, or replacement of constituent parts or materials that have deteriorated by action of the elements, vandalism, or wear and tear that cannot be corrected through maintenance. Repair includes restoring or replacing components of facilities damaged by fire, storm, explosions, the elements, and other disasters.
“Request for bids” means a written request, invitation, or solicitation for bids to perform a contract issued by the city.
“Solicitation” means a written request for proposals, request for bids, request for qualifications, or other appropriate competitive method to select a contractor. “Successor-in-interest” means a person who acquires or assumes the rights, assets, debts, or obligations of another person.
“Work” means the goods, nonprofessional service, professional service, or public project to be provided under a contract.

3.56.020 Determination of lowest-responsible bidder.

Where any provision of the charter, this code, or city policies requires award of a contract to the lowest-responsible bidder, the lowest-responsible bidder is determined as follows:

A. In determining whether a bidder is responsible, consideration shall be given to: (1) the quality and performance of the work to be provided by the bidder; (2) the ability, capacity and skill of the bidder to perform the contract or effectuate the transaction; (3) the ability of the bidder to perform the contract or effectuate the transaction within the time specified, without delay; (4) the character, integrity, reputation, judgment, experience, and efficiency of the bidder, excluding all discriminatory consideration of age, ancestry, color, disability, genetic information, gender (including gender identity and gender expression), marital status, medical condition, national origin, race, religion, sex, sexual orientation, or other legally protected characteristic; (5) the quality of the bidder’s performance on previous contracts with the city; and (6) the ability of the bidder to provide future maintenance, parts, and repair services for the work provided.

B. Based on the information provided in the bids, the city council or the city manager shall identify those bids that are subject to the city’s local sales or use tax under the provisions of part 1.5 of division 2 of the California Revenue and Taxation Code and chapter 3.24 of this code. The lowest- responsible bidder shall be determined after the amount of local sales or use tax that would be received by the city is deducted from the bids. This deduction is in addition to the application of any bid price preferences authorized by subsection C.
9 C. The city council may, by resolution, adopt standard minimum qualifications for bidders on competitively bid contracts for public projects. If the standard minimum qualifications are included in the bid specifications for a contract, no bidder is considered “responsible” unless it is determined to be responsible pursuant to the factors set forth in subsection A, and also meets the standard minimum qualifications at the time of bid opening. The adoption and use of standard minimum qualifications does not in any way limit or affect the city’s right to: (1) review information contained in a bid, and additional relevant information, and determine whether the bidder is a responsive or responsible bidder; or (2) establish different or additional qualification requirements for specific contracts.

D. The city council may, by resolution, adopt programs or policies to provide price preferences, including preferences to promote the participation and utilization of local business enterprises and local workers in city contracts. These preferences shall be in addition to any deduction of sales or use tax required by subsection B.

3.56.030 Contract splitting prohibited.

No person shall reduce the amount of any purchase or the size of a public project where there is a reasonable knowledge that the same goods, services, or work on a public project will be required within the same budgetary term, there are funds available for that purchase or project, and the sole purpose is to knowingly avoid the requirements of this title or city policies.

3.56.040 Administrative procedures.

A. The city manager may adopt administrative policies to carry out the intent of this chapter, including policies for –

1. The solicitation of and contracting for professional services;

2. The use of purchase orders;

3. The control of petty cash funds without prior use of purchase orders or contracts; and

4. The hearing of protests, as set forth in section 3.56.290.

B. The city manager shall prepare, subject to approval by the city council, administrative policies regarding the solicitation of and contracting for goods, nonprofessional services, and public projects, including competitive bidding and alternative procurement methods for those purchases for which competitive bidding is not required.

3.56.050 Prohibition against collusion.
10 No city officer or employee shall provide an unfair advantage to any person in securing a contract to furnish goods, services, or to construct a public project. Additionally, no city officer or employee shall: favor one person over another by giving or withholding information; willfully mislead any person in regard to the character of the work called for; knowingly accept work of a quality inferior to that called for by the contract; or approve any payment for work that has not been received.

3.56.060 Unauthorized contracts.

No city officer or employee shall purchase or contract for work on behalf of the city, other than as prescribed in this chapter or policies established in accordance with section 3.56.040.B. Any purchase or contract made in violation of this section is void.

3.56.070 Transition employment period for displaced janitors.

The 60-day transition employment period set forth in California Labor Code section 1061 is extended to 90 days.

3.56.075 Procurement requirements for recovered organic mulch and paper.

A. To meet its goals for the reduction of short-lived climate pollutants, the city shall comply with article 12 of title 14 of the California Code of Regulations when purchasing organic mulch, such as leaves, bark, or straw, for use or distribution by the city or its contractors.

B. The city shall comply with article 12 of title 14 of the California Code of Regulations when purchasing paper.

C. The city shall comply with the city’s policy regarding the preferred purchase of sustainable products when purchasing organic mulch and paper.

Article II. Contracts

3.56.080 Authority of city manager.

The city manager is authorized to execute any contract – subject to approval as to form by the city attorney, the availability of funds, and the policies adopted pursuant to this chapter – expending less than $250,000 in any one transaction, without competitive bidding or obtaining specific authorization by the city council.

3.56.090 Award of contracts by city council.

Unless otherwise provided in this title, all contracts involving an expenditure of $250,000 or more must be authorized by the city council. Contracts must be executed by the city manager on behalf of the city, subject to approval as to form by the city 11 attorney. The signature by the city manager certifies that there remains unexpended and unapplied balances of the appropriations or funds applicable to the contract sufficient to pay the estimated expense of executing the contract.

Article III. Solicitation

3.56.120 When competitive bidding is required.

A. If the cost of goods or a public project is $250,000 or more, competitive bidding is required. Competitive bidding must comply with applicable policies approved pursuant to section 3.56.040.

B. Competitive bidding is not required for nonprofessional or professional services in any amount. The solicitation of services is subject to the procurement policies approved pursuant to section 3.56.040.

C. If competitive bidding is required by this chapter, any other law, or funding requirements, a solicitation must be advertised in one or more of the following: daily or weekly newspapers; the official city newspaper; the city’s website; trade association publications; trade journals; minority- or trade-oriented publications; or other media directed to minority or women’s business enterprises. The city manager may require more than one advertisement of any solicitation.

3.56.130 Independent price determination.

A. No person submitting any bid or proposal to the city in connection with the procurement of goods, services, or a public project shall:

1. Submit prices that have not been arrived at independently without consultation, communication, or agreement with any other bidder or proposer for the purpose of restricting competition;

2. Unless otherwise required by law, prior to opening of the bids or proposals, knowingly disclose any price to any other bidder or proposer;

3. Make any attempt to induce any other person, firm, or other entity or association to submit or not to submit a bid or proposal for the purpose of restricting competition; or

4. Knowingly be interested in more than one bid or proposal; provided, however, subcontractors to the principal bidders or proposers are excluded from this subsection. In the case of joint venture bids, the joint venture and each of its members is deemed to be the person submitting the bid or proposal for purposes of this subsection.
12 B. Any bid or proposal received or contract awarded where there was a violation of this section is void and the city may proceed in the same manner as if the person involved failed to execute the contract after award.

3.56.140 Forms.

All bids and proposals must be made on forms the city prepares and includes in the solicitation. The preparation of any forms is subject to policies formulated by the city manager, including controls over erasures, corrections, and interlineations.

3.56.150 Security.

12For any purchase or contract the city deems advisable, each bidder or proposer shall submit with the bid or proposal, as security, cash, a cashier’s check, surety bond, or certified check in favor of and payable to the city, in an amount determined to be sufficient, but not to exceed 10% of the aggregate amount of the bid or proposal. If the person to whom the contract is awarded fails to enter into the contract and file the required bonds within 20 calendar days of contract award, the security is forfeited and the city manager shall draw the money due on the security and pay it, or any cash deposited, into the city treasury. The security shall not be returned to the defaulting bidder or proposer in such case unless the city council approves the return thereof in whole or in part. Upon good cause being shown, the city manager may extend the time to enter into the contract for a period not to exceed 30 calendar days.

3.56.160 Opening of bids and proposals —Awards.

All bids and proposals must be submitted to the city at the place and time specified in the solicitation. To the extent it is required by law or funding requirements, bids and proposals shall be opened by the city clerk or the clerk’s designee, in public, at the time and place designated in the solicitation. Bids and proposals received after the specified time will not be accepted and will be returned unopened. The city may reject any and all bids or proposals and waive any informalities or minor irregularities in the bids or proposals.

3.56.170 Re-advertisement or alternative award.

If the city rejects any and all bids or proposals or the person to whom the contract is awarded fails to enter into the contract as required and the council does not award the contract to the next lowest-responsible bidder or other proposer, the city may re- advertise for bids or proposals, or dispense with competitive bidding, as provided in this chapter or in the policies adopted pursuant to section 3.56.040.B.

3.56.180 Disposition of security.

13 All securities and bonds shall be returned to the unsuccessful bidders or proposers after award of the contract. The security of the successful contractor shall be returned after execution of the contract and deposit of the necessary performance and payment bonds.

3.56.190 Faithful performance bonds.

The city may require a faithful performance bond be given on any contract in an amount determined by the city to be sufficient, up to and including 100% of the contract amount. The bond must be in a form approved by the city attorney.

3.56.210 Time of completion.

The contract must specify the time within which the contractor shall furnish goods, nonprofessional services, professional services, or public project to the city and may provide for liquidated damages for the contractor’s failure to comply. The city manager may extend the time for acts of the city, acts of God, weather, strikes, or other circumstances over which the contractor has no control.

3.56.220 Failure of completion.

If the contractor fails to complete the work within the time specified in the contract or any extension approved under section 3.56.210, the city may terminate the contract and the contractor shall not be paid or allowed any further compensation for any work done under the contract. The city council may proceed to complete the contract either by reletting or otherwise, and the contractor and surety, if any, shall be liable to the city for all loss or damage that the city may suffer on account of the failure to complete the contract on time.

Article IV. Exceptions to Competitive Bidding

3.56.230 Generally.

The restrictions and provisions of this chapter requiring the award of contracts by competitive bidding shall not apply to the following:

A. Any transaction where maintenance, remodel, or repair work is to be performed by city employees.

B. When, after advertising for bids as required in this chapter, no valid bids are received.

C. When, after receiving bids, the city rejects all of the bids.

14 D. When the bidder to whom an award is made fails to enter into the contract as required and the city does not make an award to the next lowest- responsible bidder, as provided in this chapter.

E. When, upon a two-thirds vote of the city council or the approval of the city manager, consistent with the thresholds in sections 3.56.080 and 3.56.090 of this chapter, it is determined that it is in the best interests of the city to suspend competitive bidding or utilize an alternative method of procurement for any contract.

F. When any contract is entered into pursuant to or under any special assessment proceedings in which competitive bidding policies are specified by laws of the state of California.

G. Purchases pursuant to sections 3.56.240, 3.56.250, and 3.56.260.

3.56.240 Cooperative purchasing.

The city may utilize piggybacking or cooperative purchasing agreements without separate competitive bidding by the city. Purchases through cooperative purchasing agreements or piggybacking are exempt from chapters 3.54, 3.58, 3.62, and 3.64.

3.56.250 Purchase of surplus goods.

When it is advantageous to the city, the city may purchase surplus goods from any public agency without compliance with the requirements of this chapter.

3.56.260 Emergency purchases.

A. For purchases that do not individually exceed $250,000, the city manager may execute contracts or other purchasing documents, subject to approval as to form by the city attorney, without advertising for bids or proposals, when public interest and necessity demand immediate action, repair, or replacement to safeguard life, health, or property; to permit the continued conduct of city operations or services; or to mitigate further damage.

B. Following any purchase authorized by this section, the city manager shall present a report to the city council, at the next available meeting of the council, describing the emergency, the actions taken, and the number and value of contracts executed.

C. When public interest and necessity demand immediate action, repair, or replacement to safeguard life, health, or property, to permit the continued conduct of city operations or services, or to mitigate further damage, and the cost is estimated to exceed $250,000, the city manager may immediately execute a contract, subject to approval as to form by the city attorney, to initiate the necessary emergency services without advertising for bids or proposals. At the next available council meeting, the city manager shall present a report as outlined above and include the additional remedial 15 actions required, and the total estimated costs. The council may contract for the additional emergency services or authorize the city manager to negotiate and execute change orders to the original contract or execute additional contracts within limits then established by the city council.

Article V. Contracts for Official Advertising

3.56.270 Contracts.

The city shall award a contract for the official advertising for the city. For this purpose, the city shall advertise for two consecutive days, setting forth distinctly and specifically the work contemplated to be done. The city shall award the contract for the official advertising to a person publishing a daily newspaper in the city that is a newspaper of general circulation.

3.56.280 Official newspaper.

The newspaper to which the award of the advertising is made shall be known and designated as the official newspaper. Except when otherwise provided in the charter, city code, or by other law, all official publications made by the city shall be made in the official newspaper.

Article VI. Protests

3.56.290 Protest policies.

The city manager shall establish protest policies, subject to the requirements set forth in this article. Only a bidder or proposer on a contract, or the authorized representative of the bidder or proposer, may file a protest on that contract.

3.56.300 Grounds for protest.

A protest may be filed based on any of the following:

A. Failure to follow the requirements of the solicitation;

B. Failure to comply with applicable law;

C. Alleged error or misconduct in the solicitation process or documents; or

16 D. Any grounds in the city manager’s established protest policy.

3.56.310 Time for filing a protest.

A. Any protest alleging improprieties in the solicitation documents must be filed no later than five business days prior to the deadline for submissions in response to the solicitation.

B. For any protest not covered by subsection A, the protest must be filed with the city no later than five business days after the protestor knew or should have known of the facts giving rise to the protest, but in no event later than five business days after the city issues a written notice of recommendation for award or approval.

3.56.320 Form of protest.

A. Protests must be in writing and must include the following:

1. The name, address, e-mail address, and telephone number of the protester;

2. A description of the contract to which the protest pertains, including the contract number and date that bids or proposals for the contract were received by the city;

3. The city department or division issuing the solicitation;

4. The factual and legal grounds for the protest;

5. The desired relief sought by the protester; and

6. Any written materials that the protester wishes to have considered.

B. Protests shall be addressed to the City Clerk, 915 I Street, New City Hall, Sacramento, CA 95814, or to the contract manager, as set forth in the city’s protest policies.

C. Any protest that does not comply with this section and the city’s protest policies is invalid and shall not be considered.

3.56.330 Protest fee.

A. At the time a protest is filed, the protester shall deposit with the city a protest fee in an amount established by resolution of the city council. Any protest that is not accompanied by the protest fee is invalid and shall not be considered.

B. The city shall use the protest fee to pay costs incurred by the city for the hearing and hearing examiner. If the costs are less than the protest fee, the city shall return any unexpended amounts. If the costs exceed the protest fee deposited, and the protest is denied, the city may invoice the protester for any additional unpaid costs, and the 17 protester shall pay all costs due no later than 30 calendar days after the date of the invoice. Any protester that fails to pay an invoice within 30 days is barred from filing a protest on any subsequent city contract until the city receives payment of all costs due plus interest, at the rate of 10% per annum, beginning 30 calendar days after the date of the invoice.

3.56.340 Consideration of protest.

If a valid protest is filed, either a hearing examiner or the city council may consider the protest, as set forth in the city’s protest policies.

Article VII. Debarment of Contractors

3.56.350 Application.

This article applies to all contracts let by the city, including purchases and contracts for goods, nonprofessional services, public projects, and professional services.

3.56.360 Debarment—Effect.

Notwithstanding any other provision of this code:

A. The city manager, or a hearing examiner on appeal, may debar any person from submitting a bid or proposal, or being awarded, any contract with the city, or from being a subcontractor or supplier at any tier of a contract, in accordance with the procedures established by this article.

B. During the time period that the debarment pursuant to this article of any person is in effect, the city shall not accept bids or proposals from, enter into contracts with, or allow performance of subcontracts or supply contracts by, that person, in accordance with the procedures established by this article.

C. During the time period that the debarment of any person by a state or federal agency is in effect, the city shall not, in conjunction with any city project receiving funds from the state or federal agency, accept bids or proposals from, contract with, or allow performance of subcontracts or supply contracts by, that person, whether or not that person has been debarred pursuant to this article.

3.56.370 Notice.

Whenever notice is required to be given under this article, it is effective on the day the notice is either personally delivered or deposited in the U.S. mail, first class postage prepaid and addressed to the last known address of the person to be notified.

18 3.56.380 Grounds for debarment.

Debarment may be imposed on a person by the city manager, or a hearing examiner on appeal, in accordance with the procedures established by this article on any of the following grounds:

A. Commission by the person of any act of:

1. Fraud, bribery, collusion, or conspiracy;

2. Bid rigging, price fixing, or any other act in violation of any federal, state, or local law in connection with the bidding upon, award or performance of any contract; or

3. Embezzlement, theft, forgery, falsification or fabrication of records, or perjury.

B. Submission by the person of a bid, proposal, or other document pertaining to or required by a city contract, or pertaining to or required by any provision of this code, that is known by the person to be false or contain false information.

C. The person knowingly doing business with a debarred third person in performance of any city contract awarded after debarment of the third person.

D. More than one occurrence of substandard performance by the person on any city contract, including: (1) a material breach of the contract; (2) a failure to complete work required under the contract on time or within budget when the failure is attributable to the person’s negligent or wrongful actions or inactions; (3) substandard quality of work; or (4) any negligent or wrongful failure to cooperate with the city such that timely, satisfactory completion of the work was jeopardized. The occurrences of substandard performance described herein may occur on the same contract or on different contracts.

E. One or more serious violation by the person, during the performance of any city contract, of any labor or safety statutes, regulations, or standards, including applicable local, state, or federal statutes, regulations, or standards governing prevailing wage, occupational safety and health, and nondiscrimination requirements.

F. One or more serious violation by the person of any law or regulation governing the handling, transfer, storage, or disposal of hazardous materials or hazardous waste.

G. One or more serious violation by the person of any law or regulation governing the handling, transfer, storage, or disposal of solid waste generated in connection with construction or demolition.

H. A violation by the person of any law or regulation governing conflict of interest. 19 I. The issuance to the person, within a two-year period, of three final administrative penalty orders for violating any section of chapter 12.20. Multiple administrative penalty orders issued for continuing violations occurring on the same calendar day is considered one administrative penalty order for purposes of this section.

3.56.390 Determination of grounds.

A. The city manager, or a hearing examiner on appeal, may determine that grounds for debarment exist, as described in section 3.56.380. Written notice of proposed debarment must be provided within three years of the date of the events relied upon for the proposed debarment. The following are sufficient to determine that grounds for debarment exist:

1. The person has been convicted of a criminal charge for any act or omission described in section 3.56.380, whether entered upon a verdict or a plea, including a plea of no contest;

2. A final civil judgment arising out of any act or omission described in section 3.56.380 has been entered against the person;

3. A significant penalty or sanction, including monetary penalties and other sanctions, such as debarment, has been imposed on the person by a federal, state, or local agency for any act or omission described in section 3.56.380; or

4. The person has committed one or more acts or omissions described in section 3.56.380 as established by a preponderance of evidence in the record of facts and information presented to the city manager or a hearing examiner on appeal.

B. Conduct may be imputed to a person for whom debarment is being considered as follows:

1. An act or omission, as described in section 3.56.380, of any principal, may be imputed to the person when the conduct occurred in connection with the principal’s performance of duties for or on behalf of the person, or with the person’s knowledge, approval, or acquiescence.

2. An act or omission, as described in section 3.56.380, of a person may be imputed to any principal who participated in, knew of, or had reason to know of the person’s conduct.

3. An act or omission, as described in section 3.56.380, of one person in a joint venture or similar arrangement may be imputed to other participants if the conduct occurred for or on behalf of the joint venture or similar arrangement or with the knowledge, approval, or acquiescence of the participants. Acceptance of the benefits derived from the conduct is evidence of the knowledge, approval, or acquiescence.
20 C. In determining whether to debar a person, and the duration of any debarment, the city manager or a hearing examiner may consider, in addition to any other relevant factors, the following:

1. The degree to which the person cooperated fully with local, state, or federal authorities during any investigation or any administrative or judicial proceeding that forms the grounds for debarment.

2. The degree to which the person has paid or has agreed to pay all criminal, civil, and administrative liability resulting from any of the acts or omissions set forth under section 3.56.380, including any investigative or administrative costs incurred by any public agency, and has made or has agreed to make full restitution for any damages incurred as a result of any of the acts or omissions.

3. Whether the person had effective standards of conduct and internal control systems in place at the time of any of the acts or omissions set forth in section

3.56.380 or had adopted the procedures before any investigation of the acts or omissions.

4. Whether the person brought any of the acts or omissions set forth in section 3.56.380 to the attention of the appropriate public agency or agencies in a timely manner.

5. Whether the person has fully investigated the circumstances surrounding any of the acts or omissions set forth in section 3.56.380 and, if so, has made the result of the investigation available to the city.

6. Whether the person has taken appropriate disciplinary action against the individuals responsible for any of the acts or omissions set forth in section 3.56.380.

7. Whether the person has implemented or agreed to implement remedial measures to prevent a recurrence of any of the acts or omissions set forth in section

3.56.380, including new or revised review and control procedures and ethics training programs, as well as any other measures identified by any public agency.

8. Whether the person has had adequate time to eliminate the circumstances within the organization that led to any of the acts or omissions set forth in section 3.56.380.

3.56.400 Scope of debarment.

A. A debarment of a group, association, firm, corporation, partnership, company, or other entity under this article constitutes debarment of all of the entity’s divisions and other organizational elements from all city contracts, unless the debarment decision is 21 limited by its terms to one or more specifically-identified individuals, divisions, or other organizational elements.

B. The debarment of a person may include any existing affiliate of the person where the affiliate is specifically named and given notice of the proposed debarment and an opportunity to respond. The debarment automatically includes any successor-in- interest or any affiliate of the debarred person formed after the debarment.

C. Debarment of any person includes debarment of any business entity, whether or not the business entity was in existence at the time of the debarment, for which the debarred person acts as a principal during the debarment period.

3.56.410 Period of debarment.

A. The period of debarment must be commensurate with the seriousness of the grounds, as determined by the city manager, or by a hearing examiner on appeal. An initial period of debarment may not exceed three years.

B. Before the debarment period imposed under this article expires, the city manager may review the record of the evidence presented during the debarment proceedings, as well as any additional facts or information relevant to a review of the debarment. The city manager may extend the existing debarment, for successive additional periods of up to two years each, if the city manager determines that the extension is necessary to protect the public interest. If the city manager determines that debarment for an additional period is necessary, the city manager shall follow the procedures established by section 3.56.400 before imposing the extension.

C. Unless the city manager has extended the debarment pursuant to subsection B, the debarment automatically terminates upon expiration of the debarment period.

3.56.420 Debarment procedures.

A. Before debarring any person under this article, the city manager shall mail by certified or registered mail, return receipt requested, or deliver by personal service a written notice of the proposed debarment to the person proposed to be debarred, hereinafter referred to as “respondent.” The notice must contain the following:

1. Notice that a debarment is being considered;

2. The grounds for the proposed debarment, in terms sufficient to put the respondent on notice of the conduct or transactions upon which it is based;

3. The potential period of the debarment;

4. The city’s procedures governing debarment; and

22 5. The address to which a request for a hearing or information and argument in opposition to the proposed debarment must be delivered or mailed.

B. Within 30 days after personal service or mailing of the notice of proposed debarment, the respondent or the respondent’s representative may submit in writing a request for a hearing or information and argument in opposition to the proposed debarment. The written request or information and argument must also specify the address to which subsequent notices and other communications to the respondent should be mailed.

C. If the respondent requests a hearing in accordance with subsection B, the city manager shall, within 30 days after receipt of the request, schedule an informal hearing at which the respondent or the respondent’s representative shall have a reasonable opportunity to provide information and argument, including the presentation and questioning of witnesses, to the city manager. The city manager shall mail the respondent, by certified or registered mail, return receipt requested, written notice of the time, date, and location of the hearing, which must be held no sooner than 10 days from the date of the notice of hearing.

D. The city manager’s debarment decision shall be made within 30 days after expiration of the 30-day period specified in subsection B, or within 30 days after a hearing is held, whichever is later. If the city manager decides it is in the best interest of the city to impose debarment, the decision must be in writing, contain findings of fact, and specify the grounds for debarment based on the record of facts and information presented to the city manager.

E. A copy of the decision by the city manager shall be mailed to the respondent by certified or registered mail, return receipt requested, no later than five days after the decision is made. If the city manager decides to impose debarment, the decision must specify the period of debarment. Except in cases where the city manager’s debarment decision is appealed in accordance with section 3.56.430, the period of debarment begins on the date the decision is mailed to the respondent. If the city manager’s debarment decision is appealed in accordance with section 3.56.430, the period of debarment begins on the date that the hearing examiner makes a decision to uphold or modify the city manager’s debarment decision, in accordance with section 3.56.430.

F. If the respondent fails to submit either a written request for a hearing or written information and argument in opposition to a proposed debarment within the 30 day period specified in subsection B, or if respondent fails to appear at the hearing, the decision of the city manager is final, and is not subject to appeal pursuant to section

3.56.430.

G. The city manager may reverse a decision to debar a person, or may reduce the scope or time period of debarment for any reason that obviates the need for the debarment or that indicates a shorter debarment period will adequately protect the public interest. Those reasons include, but are not limited to, the following:
23 1. Newly discovered material evidence;

2. Reversal of the conviction, civil judgment, or administrative penalty or sanction upon which the debarment was based;

3. Bona fide change in ownership or management; or

4. Elimination of other grounds for which the debarment was imposed.

The reversal or reduction in scope or time period of the debarment may be initiated by the city manager or by the debarred person upon a request submitted to the city manager. The debarred person’s request must be in writing and supported by documentation. The debarred person shall provide any additional documentation requested by the city manager to review the request. The city manager shall notify the debarred person of the decision made upon any such request submitted by a debarred person within 30 days after receipt of the request or any supporting documentation. A debarred person may not submit such a request until a minimum of 12 months have elapsed after the period of debarment begins, and no more than one such request may be submitted during each successive 12-month period thereafter.

3.56.430 Appeal of a debarment decision.

A. Any appeal of a decision of the city manager regarding a debarment or the period or scope of debarment imposed must be heard by a hearing examiner from a panel of hearing examiners designated for this purpose by resolution of the city council.

A hearing examiner may not be a city employee at the time of the hearing.

B. The respondent or respondent’s representative may appeal any decision made by the city manager regarding a debarment or the period or scope of debarment imposed, by delivery to the city clerk of a written notice of appeal no later than 30 calendar days after the date that notice of the city manager’s decision is mailed to the respondent. The written notice of appeal must include a copy of the city manager’s debarment decision and must comply with the requirements set forth in article I of chapter 1.24.

C. If a valid notice of appeal is timely filed, the city clerk shall establish the date of the hearing before the hearing examiner, and shall mail the respondent written notice of the hearing that specifies the location, time, and date of the hearing, which shall be held no sooner than 10 days from the date of the notice of hearing.

D. The hearing by the hearing examiner is a de novo hearing. The hearing examiner has no power to declare the provisions of this article unenforceable or unconstitutional, and the hearing examiner’s decision must be based on the criteria specified in this article.

24 E. The proceedings at the hearing must be recorded. Either party may provide a certified shorthand reporter to maintain a record of the proceedings at the party’s own expense. The hearing examiner may, upon request of either party, grant continuances for good cause shown, or upon his or her own motion. The hearing examiner shall administer the oath or affirmation. California Government Code section 11513, subdivisions (a), (b), and (c) apply to hearings under this section, except that relevant hearsay evidence may be sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs.

F. At the hearing, the city manager bears the burden of showing, by a preponderance of evidence in the record of facts and information presented to the city manager and the hearing examiner, that there exist grounds for debarment in accordance with the provisions of this article. The hearing examiner may take official notice, either before or after the close of the hearing, of any fact that may be judicially noticed by the courts of this state or that may appear in any of the official records of the city or any of its departments.

G. After the close of the hearing, the hearing examiner may uphold, reverse, or modify the city manager’s debarment decision. Any decision upholding or modifying the city manager’s decision must be in writing, contain findings of fact, specify the grounds for debarment based on the record of facts and information presented to the city manager and the hearing examiner, and specify any modifications to the city manager’s decision. A copy of the hearing examiner’s decision must be mailed to the respondent no later than five days after the decision is made.

H. The decision of the hearing examiner is final. Judicial review of any decision made by a hearing examiner pursuant to this section is governed by section 1094.5 of the California Code of Civil Procedure.

3.56.440 Requirement to submit information.

The city may require any person bidding or submitting a proposal on a city contract to certify under penalty of perjury, as a part of any bid or proposal submitted, whether the person, including any principal, affiliate, or predecessor-in-interest of the person:

A. Is currently under debarment, or has been under debarment at any time during the preceding three years, by any federal, state, or local agency; and

B. Has, at any time during the preceding three years, been convicted, been subject to a civil judgment, or been subject to a penalty or sanction by any federal, state, or local agency, for any act or omission described in section 3.56.380.

3.56.450 Doing business with debarred person.

25 In the performance of any city contract, no person shall knowingly utilize the services of any person who is debarred under this chapter. No person shall knowingly use or list, in any bid or proposal for a city contract, any subcontractor or supplier who is debarred.

Violation of this section may result in rejection of the bid or proposal, nonpayment by the city for work performed by the debarred person, annulment of award or termination of contract, issuance of a stop work order, debarment, or any other remedy provided by law. If a person lists a debarred subcontractor or supplier without knowledge of the debarment, the person will be allowed to substitute the debarred subcontractor or supplier listed in accordance with provisions of the contract governing contract changes.

3.56.460 Renewal of existing contracts.

The city shall not renew or extend the term of any existing contract with any person who is debarred in accordance with this chapter, unless the city council upon a two- thirds vote determines that the renewal or extension is in the best interest of the city.

3.56.470 List of debarred persons.

A. The city manager shall maintain a list of all persons who are currently debarred by the city pursuant to this article and the dates of each debarment. The list must not include a person debarred by another local agency or the state or federal government unless the person also has been debarred under this article. The list must be filed with the city clerk. The city clerk shall make the list available for inspection and copying by any person during reasonable hours and upon reasonable notice.

B. The list of persons who are currently debarred shall be included in the solicitation for any city contract governed by this chapter. By including the list, bidders and proposers are deemed to be on notice as to the persons debarred under this article.

SECTION 5.

Chapter 3.60 of the Sacramento City Code is hereby deleted.

SECTION 6.

A new chapter 3.60 is hereby added to the Sacramento City Code to read as follows:

Chapter 3.60 Additional Procurement Requirements for Public Projects

3.60.010 Generally.

26 Contracts for public projects are subject to the requirements of this chapter, in addition to the requirements of chapter 3.56 and the city’s administrative policies.

3.60.020 Exemption of the City of Sacramento from various provisions of the California Public Contract Code.

A. Intent. Senate Bill 974, Chapter 832 of Statutes, 2001, added section 1100.7 to the California Public Contract Code, which provides that all provisions of the California Public Contract Code apply to charter cities unless a particular city’s charter or ordinances expressly exempt the city from those provisions. In enacting this section, the city specifically declares itself exempt from any and all provisions of the California Public Contract Code except as specified in this section.

B. Declaration of general exemption. The city declares that it is exempt from all provisions of the California Public Contract Code including those provisions specified in subsection C, except for:

1. Those California Public Contract Code provisions that have been judicially declared to be matters of statewide concern in a final appellate court decision;

2. Those provisions specified in subsection D;

3. Those provisions that are specifically and expressly included in and made applicable to the city by a contract;

4. Those provisions that the city specifically and expressly agrees are applicable to the city as a condition to receipt of state funding or a required state approval; and

5. Those provisions that are made expressly applicable to the city by resolution adopted by the city council.

C. Specific exemptions from California Public Contract Code. The city is exempt from the following provisions of the California Public Contract Code:

1. Division 2, part 1, chapter 6, sections 6100 through 6108, inclusive;

2. Section 7102;

3. Section 7103;

4. Section 7104;

5. Section 9203;

6. Division 2, part 2, sections 10100 et seq.;

27 7. Division 2, part 3, chapter 1, sections 20100 et seq., except as set forth in subsection D;

8. Division 2, part 3, chapter 1.5, sections 20930 et seq.;

9. Division 2, part 3, chapter 2, sections 22000 et seq.;

10. Division 2, part 3, chapter 2.5, sections 22050 et seq.;

11. Division 2, part 3, chapter 3, sections 22101 et seq.

D. Applicable provisions. The city is subject to the following provisions of division 2, part 3, chapter 1 of the California Public Contract Code :

1. Section 20103.5;

2. Section 20103.8;

3. Section 20104.50;

4. Section 20104.70;

5. Article 27;

6. Article 29;

7. Article 30;

8. Article 31;

9. Article 32;

10. Article 54;

11. Article 56;

12. Article 57;

13. Article 58;

14. Article 59.

3.60.030 Standard specifications.

The city council shall, from time to time, adopt standard specifications setting forth terms and controls for public project contracts and the bidding and award thereof. The 28 standard specifications must conform to the purposes and intent of this chapter, and must include the following:

A. Bid forms and requirements governing the proper completion thereof by the bidder;

B. Bid security forms and requirements for the use thereof, including forfeiture in certain cases and return to unsuccessful bidders;

C. Faithful performance bond forms and requirements;

D. Payment bond forms and requirements;

E. Labor and material bond forms and requirements;

F. Terms governing the time to complete the contract, extending the time to complete the contract, and liquidated damages; and

G. Terms governing a failure of completion by the contractor, payment of the contractor for work performed in the event of failure, and the completion of the contract in such instance.

3.60.040 Payment of prevailing rate of wages—Maximum hours of labor—Penalties.

Every contract for any construction project, as defined in Section 1782 of the California Labor Code, to be performed within the state at the expense of the city, or paid out of city moneys, whether such work be done directly under contract award, or indirectly by or under subcontract or by any other arrangement whatsoever, must provide, in addition to other provisions required by law, that any person performing labor in the state in performance of such contracts, subcontracts, or any other arrangement, shall be paid not less than the general prevailing rate of wages; provided, however, that the requirement to pay the general prevailing rate of wages shall not apply to: (a) contracts for any construction project originally awarded or executed in an amount of $25,000 or less; (b) contracts for any alteration, demolition, repair, or maintenance work originally awarded or executed in an amount of $15,000 or less; (c) materials for which no manufacturing plant exists in the city; or (d) standard materials or commodities carried in stock by dealers or manufacturers generally.

The general prevailing rate of wages shall be the general prevailing rate of wages for the area in which the city is located as determined by the director of the department of industrial relations pursuant to California Labor Code section 1773. Every contract for which the payment of the general prevailing rate of wages is required shall provide that the determination of the director of the department of industrial relations in force at the time the notice to bidders is published with respect to the general prevailing rate of wages in private employment in the city for similar work shall be binding upon the parties any contract awarded as a result of such notice. If any worker is paid less than 29 the general prevailing rate of wages for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, the city may withhold contract payments equal to the amount of underpayment. In addition, the contractor shall forfeit as a penalty to the city not more than $50 for each calendar day, or portion thereof, for each worker paid less than the general prevailing rate of wages, as determined by the director of the department of industrial relations, for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, and every contract shall have inserted therein a clause to that effect.

In the performance of the contract, eight hours shall be the maximum hours of labor on any calendar day, and 40 hours shall be the maximum hours of labor during any one calendar week. Work performed by employees of contractors in excess of eight hours per day, and 40 hours during any one week, is permitted upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. The contractor shall as a penalty forfeit $25 for each worker employed in the execution of the contract by the contractor or by any subcontractor for each calendar day during which the worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this section.

To the extent that there is insufficient money due a contractor to cover all penalties forfeited and amounts due in accordance with this section, and in all cases where the contract does not provide for a money payment by the city to the contractor, the city shall provide notice of the violation to the director of industrial relations, division of labor standards enforcement, for commencement an enforcement action pursuant to California Labor Code, section 1775.

Out of any money withheld or recovered, pursuant to this section, there shall first be paid the amount due each worker, and if insufficient funds are withheld, recovered, or both to pay each worker in full, the money shall be prorated among all workers. At the expiration of 90 days after the completion of the contract and the formal acceptance of the project, all penalties or forfeitures withheld or recovered pursuant to this section shall be deposited in the city’s general fund.

Every contractor or subcontractor, or any firm, corporation, partnership or association in which the contractor or subcontractor has a substantial interest who is found by the city manager to be in willful violation of the provisions of this chapter with intent to defraud shall be ineligible to bid on or receive a contract paid out of moneys deposited in the city’s treasury for a period of not more than five years from the date such determination is made by the city manager.

The specifications for any contract that requires the payment of the general prevailing rate of wages under this section shall include a statement that a copy of the current director of industrial relations prevailing wage determination will be made available to any interested party on request.
30 Every contract falling under the terms of this section shall contain a provision that requires the contractor to insert into every subcontract or subagreement entered into, provisions identical with the provisions set forth in the contract pursuant to this chapter regarding compliance with the requirements for wage rates, hours of labor, and requirements for the employment of apprentices. The stipulations shall fix the responsibility of compliance with sections 3.60.040 and 3.60.050 of this chapter with the prime contractor.

3.60.050 Apprentices.

A. All public project contractors and subcontractors shall comply with Sections 1777.5, 1777.6, and 1777.7 of the California Labor Code and city policies governing the employment of apprentices. This subsection does not apply to construction contracts and subcontracts that are advertised for bid or awarded before December 25, 2014, including, contracts and subcontracts for the construction of public improvements that are to be funded in whole or part through a community facilities district.

B. Contractors and subcontractors shall not discriminate among otherwise qualified employees as apprentices on the ground of age, ancestry, color, disability, genetic information, gender (including gender identity and gender expression), marital status, medical condition, national origin, race, religion, sex, or sexual orientation. The prime contractor is responsible for complying with these provisions for all apprenticeable occupations.

C. If a public project contractor or subcontractor fails to comply with this section, the city may report the contractor or subcontractor to the Department of Industrial Relations and the California Apprenticeship Council for action as necessary under Section 1777.7 of the California Labor Code.

D. All public improvements within a private development project that are constructed in compliance with this section and section 3.60.040 are eligible for public funding, including, funding through a community facilities district, so long as all other relevant requirements have been satisfied or waived in accordance with law.

3.60.060 Fee for substitution of securities for withheld funds on contracts.

If a contractor requests substitution of securities for withheld funds pursuant to section 22300 of the California Public Contract Code, the contractor shall pay any and all costs, fees, or other charges that are authorized or required.

SECTION 7.

Chapter 3.64 of the Sacramento City Code is hereby deleted. 31 SECTION 8.

A new Chapter 3.64 is hereby added to the Sacramento City Code to read as follows:

Chapter 3.64 Participation of Local Business Enterprises

3.64.010 Local business enterprise and local hire programs.

The city council may adopt by resolution programs to promote and provide incentives for the participation of local business enterprises (LBEs) in any city contracts. The city council may also adopt by resolution programs to promote and provide incentives for the hiring of local residents to perform work on public projects. The city manager may adopt administrative procedures to implement the provisions of these programs.

3.64.020 LBE and local hire participation levels.

A. The specifications or request for bids or proposals for any contract may establish goals or minimum levels for participation in the contract by LBEs. No bidder or proposer on the contract is considered responsive unless the bid or proposal meets the minimum LBE participation levels established for the contract , in accordance with the administrative policies authorized by section 3.64.010.

B. The specifications or request for bids for any public project contract may establish goals or minimum levels for hiring local residents to perform work on the project, and may require contractors to obtain referrals when hiring employees and interns for the project from apprenticeship programs, employment and training agencies, and other sources.

3.64.030 Sheltered market program.

The LBE programs and their respective administrative policies authorized by section 3.64.010 may provide for a sheltered market program that restricts bidding and awards for contracts and agreements that do not exceed the contract approval authority of the city manager in sections 3.04.010 and 3.56.080.

3.64.040 MBE/WBE/DBE bid requirements.

The LBE and local hire programs authorized in sections 3.64.010 through 3.64.030, inclusive, do not apply to any contract awarded under or funded by any federal or state program that includes minority business enterprise (MBE), women business enterprise (WBE), or disadvantaged business enterprise (DBE) participation goals. The contracts will 32 be awarded in accordance with the applicable MBE, WBE, or DBE requirements and policies.

3.64.050 Provision of false information a misdemeanor.

A. No person shall submit false information to the city, or to the city’s representative, for the purpose of establishing the status of any business entity, including a sole proprietorship, as a MBE, WBE, DBE, or LBE.

B. No person shall submit false information to the city or the city’s representative in connection with any bid or proposal regarding the MBE, WBE, DBE, or LBE status of any business entity, including a sole proprietorship, or regarding efforts made by that person to meet the MBE, WBE, DBE, or LBE participation levels included in a city contract.

C. No person shall submit false information to the city or the city’s representative in connection with any local hire program, including the location where an employee resides or efforts made to meet the local hire participation levels included in a city contract.

D. Any person who violates this section is guilty of a misdemeanor. This is in addition to any other remedies authorized by any other provisions of this code or provided for by any federal, state, or local law or regulation.

3.64.060 Information to be provided under penalty of perjury.

A. Whenever any bid or proposal to be submitted to the city calls for the bidder or proposer to submit information about the MBE, WBE, DBE, or LBE status of any business entity, including a sole proprietorship, or about the efforts made by the bidder or proposer to meet the MBE, WBE, DBE, or LBE participation goals included in a city contract or agreement, the bidder or proposer shall submit the information under penalty of perjury.

B. Whenever any bid to be submitted to the city calls for the bidder to submit information about the bidder’s local hire plan or about the efforts to be undertaken by the bidder to meet the local hire participation goals included in a city contract, the bidder shall submit the information under penalty of perjury.

SECTION 9.

Chapter 3.80 of the City Code is hereby amended to read as follows:

Chapter 3.80 DISPOSITION OF SURPLUS PERSONAL PROPERTY

3.80.010 Generally.

33 Surplus personal property, defined as personal property belonging to the city that is no longer fit or necessary for use by the city, including any lost or unclaimed property , must be disposed of according to the provisions of this chapter.

3.80.020 Surplus personal property list approval.

Any city department or office may create a list of all surplus personal property held by such city department or office. This list should include photos and descriptions of the property, the contact information for the personnel managing the department or office, and the address at which the property is kept. If approved by the head of the department or office, the property listed shall be known as surplus personal property.

Departments or offices may only dispose of surplus personal property as provided in this chapter.

3.80.030 Methods of disposition.

A. City departments and offices may only dispose of surplus personal property through one of the following methods:

1. Interdepartmental transfer. Departments or offices may transfer any surplus personal property to any city department or office for use by that department or office. If more than one department or office requests any particular item of surplus personal property, the city manager will decide which department or office will receive the property.

2. Sale at public auction to the highest bidder.

a. The procurement division may contract for qualified auction services to dispose of surplus personal property. The service will dispose of the property through a live public auction either in-person or online, or a combination of the two methods.
b. A notice must be placed on the city’s public website instructing interested members of the public to visit the contracted auctioneer service’s website for details about future auctions.
c. The city is under no obligation to publish a list of the surplus personal property in advance of an auction.
d. The city reserves the right to reject any and all bids received for any property.

34 3. Sealed proposal. The city manager may adopt policies for the disposal of surplus personal property through sealed proposals. Any policies must provide that the city reserves the right to reject any and all sealed proposals.

4. Incidental sale. Surplus personal property may be sold through an incidental sale, as provided in section 3.80.040 of this chapter.

5. Consignment. The city council may, by resolution, determine to dispose of surplus personal property by putting such property out to sale on consignment if the council finds that such method of sale is likely to bring the highest price to the city. The resolution must set forth the minimum price at which such property may be sold and call for bids for consignees to sell such property. At the same time council determines to sell such property on consignment, or later, the council may, by a resolution adopted by a two-thirds vote, determine to waive competitive bidding on the consignment contract if it determines that waiver is in the best interest of the city.

6. Sale to another public agency. Surplus personal property may be sold to any other public agency, provided that the price is determined to be fair and reasonable. Such determination shall be made by the head of the department or office for a sale for under$250,000, and by the city council for a sale of $250,000 or more.

7. Donation. By resolution of the city council, surplus personal property may be donated to any other public agency or charitable organization exempt under section 501(c)(3) of the Internal Revenue Code.

8. Disposal. If the head of a department or office, in consultation with the procurement division, determines that an item has little or no resale value, or that the item is broken and irreparable, the department or office may dispose of the item without further action.

B. All dispositions pursuant to subsections A.1 through A.7 must be pursuant to a written document approved as to form by the city attorney or designee.

3.80.040 Incidental sale of certain items.

A. A department or office may sell any item of surplus personal property by incidental sale when it determines that the item:

1. Is scrap or salvage material, including, discarded fire hose, a tire casing, a dead storage battery, or worn-out or wrecked automobile or machine body or part;

2. Is perishable; or

3. Has been offered for public sale and no offer to purchase has been received.

B. For the purpose of this section, the term “incidental sale” means the sale of any item defined in subsection A of this section at a price, and at a time and place to be 35 determined by the head of the department or office in possession of the surplus personal property, to any buyer who is willing to pay the price requested, without first advertising such sale or calling for bids.

C. Nothing in this section limits the ability of the city to sell, as it may deem proper, any item as defined in subsection A by sale at public auction or by sealed proposal as provided in Section 3.80.030 of this chapter.

1 ORDINANCE NO.

Adopted by the Sacramento City Council
[Date Adopted]

AN ORDINANCE DELETING, AMENDING, AND ADDING VARIOUS
CHAPTERS OF TITLE 3 OF THE SACRAMENTO CITY CODE, RELATING

TO PURCHASING AND CONTRACTING AUTHORITY

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

Section 3.04.010 of the Sacramento City Code is hereby amended to read as follows:

3.04.010 City manager’s contracting authority.

A. Income or expenditure less than $250,000.

2. For purposes of subsection A.1, for any contract regarding real property –

a. The amount of the expenditure or income:

i. Is the amount prior to any discount or reduction in price given or received, and

ii. includes the actual periodic rental or other payments required over the entire term of the contract, including any renewal option periods set forth in the contract.

b. The amount of the expenditure or income excludes:

i. Periodic expenses that the other party is required to pay, including utilities, taxes, insurance, repairs, and maintenance, and

2 ii. Usual costs associated with the sale of real property, including real estate commissions, closing costs, escrow costs, and related costs and fees.

3. For purposes of subsection A.1, for the sale of real property owned by the city, the following procedures must be followed:

B. Income or expenditure of $250,000 or more.

SECTION 2.

Section 3.04.020 of the Sacramento City Code is hereby deleted.

SECTION 3.

A new section 3.04.020 of the Sacramento City Code is hereby added to read as follows:
3 3.04.020 City manager’s authority to execute contract amendments.

A. Contract amendments that increase the contract amount.

1. For contracts originally awarded for a price of less than $250,000:

B. Notwithstanding subsection A, any single contract amendment that increases the contract amount by more than $250,000 requires city council approval.

1. Prevent an interruption of work or services that would result in a substantial increase in cost to the city; or

4 2. Protect any person, property, equipment, materials, or the environment from substantial and immediate risk of damage or injury from any cause, or, where damage or injury has occurred, prevent the occurrence of further damage, injury, or deterioration.

F. For contracts in any amount, the city manager is authorized to execute contract amendments that decrease or do not change the contract amount.

3.04.025 Contracting authority generally.

A. The city manager may adopt administrative policies for the delegation of the city manager’s contracting authority.
5 B. All contracts and contract amendments must be approved as to form by the city attorney before execution.

C. For contracts in any amount, the city manager is authorized to execute options for renewal that decrease or do not change the contract amount.

D. The following definitions apply in this chapter:

“City attorney” means the city attorney or designee.

“City manager” means the city manager or designee.

“Contract” means any written, legally binding agreement between the city and another person.
“Contract amendment” means any written modification to a contract.

SECTION 3.

Chapter 3.56 of the Sacramento City Code is hereby deleted.

SECTION 4.

A new Chapter 3.56 is hereby added to the Sacramento City Code to read as follows:

Chapter 3.56 PROCUREMENT

Article I. In General

3.56.010 Definitions.

The following definitions apply in this title:
“Affiliates” means persons that have the same or substantially the same management, ownership, control, or one or more of the same principal employees. “Bid” means a submission to the city in response to the solicitation of a contract to be awarded to the lowest- responsible bidder.
“Bidder” means any person that submits a bid.
“Change order” means a written amendment to a contract for a public project. “City manager” means the city manager or designee.
6 “Competitive bidding” means the process of soliciting bids and awarding a contract to the lowest-responsible bidder.
“Contract” means a written agreement to purchase goods, nonprofessional services, or professional services; or to construct, repair, or maintain a public project. “Contract amendment” means a written modification to a contract, including change orders, supplements, task orders, and any other written instrument that modifies the contract.
“Contract amount” means the not-to-exceed amount of a contract, as modified by any contract amendment.
“Cooperative purchasing” means procurement conducted by, or on behalf of, two or more public agencies, to leverage their combined purchasing power. “Debarment” means any action taken by the city manager, or a hearing examiner on appeal, pursuant to this chapter, or by another public agency, to suspend or render a person ineligible to bid upon, be awarded, or contract with any public agency. “Expenditure” means the payment of funds or the provision of goods or services by the city.
“Goods” means supplies, equipment, or materials, including materials required for the maintenance or repair of any street, sewer, or water work. “Lowest-responsible bidder” means the responsible bidder, as determined pursuant to section 3.56.020, whose bid is responsive to the bid requirements, including any local business enterprise program or local hire program requirements included in the bid specifications, and whose bid price is the lowest after all bid prices are calculated to include any applicable bid price preferences. “Maintenance” means recurrent, periodic, or scheduled work required to preserve a facility. It includes:

1. Work required to restore components that have deteriorated from wear and tear; and

2. Other work on a facility to prevent damage or deterioration to that facility which would be more costly to restore.
“Nonprofessional services” means services of a nonprofessional character of any type, description, or variety, including tree-trimming services, janitorial services, and repair services for office machines, equipment, and automotive vehicles. “Piggybacking” means relying on a solicitation process conducted by another public agency, if permitted by the other public agency. “Predecessor-in-interest” means a person whose rights, assets, debts, or obligations are acquired or assumed by another person.
7 “Principal” means any officer, director, owner, shareholder, partner, responsible managing employee, or person with primary management or supervisory responsibilities, including any person who has a substantial influence or substantive control over performance of a contract.
“Professional services” means services of a professional character, including services rendered by engineers, architects, auditors, actuaries, and attorneys. “Proposal” means an offer in response to a solicitation for a contract to be awarded on a basis other than lowest cost.
“Proposer” means any person that submits a proposal, statement of qualifications, or other response to a solicitation for a contract to be awarded on a basis other than lowest cost.
“Protest” means a claim, filed by a bidder or proposer in accordance with the provisions of this chapter and city policies, alleging improprieties in the solicitation documents or challenging a recommendation to award a contract to a particular bidder or proposer.
“Protested contractor” means a bidder or proposer against whom a protest has been filed.
“Protester” means a potential contractor, or the potential contractor’s authorized representative, who files a protest in accordance with the provisions of this chapter and the city’s protest policy.
“Public project” means the following:

1. A project for the erection, improvement, and remodeling of public buildings and works;

2. Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow;

3. Street, sewer, or water work, except maintenance or repair;

4. Maintenance and repair of public facilities other than street, sewer, or water facilities.

5. Furnishing goods for any such projects.
“Purchase” means the procurement of goods, nonprofessional services, professional services, or public projects, and includes the rental or leasing of goods. “Remodel” means alteration or conversion work on an existing facility to change its use, function, or layout.
“Repair” means restoration of a facility or components to such condition that it may be used effectively for its designated purpose, by overhaul, or replacement of 8 constituent parts or materials that have deteriorated by action of the elements, vandalism, or wear and tear that cannot be corrected through maintenance. Repair includes restoring or replacing components of facilities damaged by fire, storm, explosions, the elements, and other disasters.
“Request for bids” means a written request, invitation, or solicitation for bids to perform a contract issued by the city.
“Solicitation” means a written request for proposals, request for bids, request for qualifications, or other appropriate competitive method to select a contractor. “Successor-in-interest” means a person who acquires or assumes the rights, assets, debts, or obligations of another person.
“Work” means the goods, nonprofessional service, professional service, or public project to be provided under a contract.

3.56.020 Determination of lowest-responsible bidder.

Where any provision of the charter, this code, or city policies requires award of a contract to the lowest-responsible bidder, the lowest-responsible bidder is determined as follows:

C. The city council may, by resolution, adopt standard minimum qualifications for bidders on competitively bid contracts for public projects. If the standard minimum qualifications are included in the bid specifications for a contract, no bidder is 9 considered “responsible” unless it is determined to be responsible pursuant to the factors set forth in subsection A, and also meets the standard minimum qualifications at the time of bid opening. The adoption and use of standard minimum qualifications does not in any way limit or affect the city’s right to: (1) review information contained in a bid, and additional relevant information, and determine whether the bidder is a responsive or responsible bidder; or (2) establish different or additional qualification requirements for specific contracts.

3.56.030 Contract splitting prohibited.

3.56.040 Administrative procedures.

A. The city manager may adopt administrative policies to carry out the intent of this chapter, including policies for –

1. The solicitation of and contracting for professional services;

2. The use of purchase orders;

3. The control of petty cash funds without prior use of purchase orders or contracts; and

4. The hearing of protests, as set forth in section 3.56.290.

3.56.050 Prohibition against collusion.

No city officer or employee shall provide an unfair advantage to any person in securing a contract to furnish goods, services, or to construct a public project. Additionally, no city officer or employee shall: favor one person over another by giving or withholding information; willfully mislead any person in regard to the character of the work called 10 for; knowingly accept work of a quality inferior to that called for by the contract; or approve any payment for work that has not been received.

3.56.060 Unauthorized contracts.

3.56.070 Transition employment period for displaced janitors.

The 60-day transition employment period set forth in California Labor Code section 1061 is extended to 90 days.

3.56.075 Procurement requirements for recovered organic mulch and paper.

B. The city shall comply with article 12 of title 14 of the California Code of Regulations when purchasing paper.

C. The city shall comply with the city’s policy regarding the preferred purchase of sustainable products when purchasing organic mulch and paper.

Article II. Contracts

3.56.080 Authority of city manager.

3.56.090 Award of contracts by city council.

Unless otherwise provided in this title, all contracts involving an expenditure of $250,000 or more must be authorized by the city council. Contracts must be executed by the city manager on behalf of the city, subject to approval as to form by the city attorney. The signature by the city manager certifies that there remains unexpended and unapplied balances of the appropriations or funds applicable to the contract sufficient to pay the estimated expense of executing the contract. 11 Article III. Solicitation

3.56.120 When competitive bidding is required.

A. If the cost of goods or a public project is $250,000 or more, competitive bidding is required. Competitive bidding must comply with applicable policies approved pursuant to section 3.56.040.

3.56.130 Independent price determination.

A. No person submitting any bid or proposal to the city in connection with the procurement of goods, services, or a public project shall:

1. Submit prices that have not been arrived at independently without consultation, communication, or agreement with any other bidder or proposer for the purpose of restricting competition;

2. Unless otherwise required by law, prior to opening of the bids or proposals, knowingly disclose any price to any other bidder or proposer;

3. Make any attempt to induce any other person, firm, or other entity or association to submit or not to submit a bid or proposal for the purpose of restricting competition; or

B. Any bid or proposal received or contract awarded where there was a violation of this section is void and the city may proceed in the same manner as if the person involved failed to execute the contract after award.
12 3.56.140 Forms.

3.56.150 Security.

3.56.160 Opening of bids and proposals —Awards.

3.56.170 Re-advertisement or alternative award.

3.56.180 Disposition of security.

All securities and bonds shall be returned to the unsuccessful bidders or proposers after award of the contract. The security of the successful contractor shall be returned after execution of the contract and deposit of the necessary performance and payment bonds.

13 3.56.190 Faithful performance bonds.

3.56.210 Time of completion.

3.56.220 Failure of completion.

Article IV. Exceptions to Competitive Bidding

3.56.230 Generally.

The restrictions and provisions of this chapter requiring the award of contracts by competitive bidding shall not apply to the following:

A. Any transaction where maintenance, remodel, or repair work is to be performed by city employees.

B. When, after advertising for bids as required in this chapter, no valid bids are received.

C. When, after receiving bids, the city rejects all of the bids.

D. When the bidder to whom an award is made fails to enter into the contract as required and the city does not make an award to the next lowest- responsible bidder, as provided in this chapter.

E. When, upon a two-thirds vote of the city council or the approval of the city manager, consistent with the thresholds in sections 3.56.080 and 3.56.090 of this 14 chapter, it is determined that it is in the best interests of the city to suspend competitive bidding or utilize an alternative method of procurement for any contract.

F. When any contract is entered into pursuant to or under any special assessment proceedings in which competitive bidding policies are specified by laws of the state of California.

G. Purchases pursuant to sections 3.56.240, 3.56.250, and 3.56.260.

3.56.240 Cooperative purchasing.

3.56.250 Purchase of surplus goods.

When it is advantageous to the city, the city may purchase surplus goods from any public agency without compliance with the requirements of this chapter.

3.56.260 Emergency purchases.

C. When public interest and necessity demand immediate action, repair, or replacement to safeguard life, health, or property, to permit the continued conduct of city operations or services, or to mitigate further damage, and the cost is estimated to exceed $250,000, the city manager may immediately execute a contract, subject to approval as to form by the city attorney, to initiate the necessary emergency services without advertising for bids or proposals. At the next available council meeting, the city manager shall present a report as outlined above and include the additional remedial actions required, and the total estimated costs. The council may contract for the additional emergency services or authorize the city manager to negotiate and execute change orders to the original contract or execute additional contracts within limits then established by the city council.

15 Article V. Contracts for Official Advertising

3.56.270 Contracts.

3.56.280 Official newspaper.

Article VI. Protests

3.56.290 Protest policies.

3.56.300 Grounds for protest.

A protest may be filed based on any of the following:

A. Failure to follow the requirements of the solicitation;

B. Failure to comply with applicable law;

C. Alleged error or misconduct in the solicitation process or documents; or

D. Any grounds in the city manager’s established protest policy.

3.56.310 Time for filing a protest.

A. Any protest alleging improprieties in the solicitation documents must be filed no later than five business days prior to the deadline for submissions in response to the solicitation.

16 B. For any protest not covered by subsection A, the protest must be filed with the city no later than five business days after the protestor knew or should have known of the facts giving rise to the protest, but in no event later than five business days after the city issues a written notice of recommendation for award or approval.

3.56.320 Form of protest.

A. Protests must be in writing and must include the following:

1. The name, address, e-mail address, and telephone number of the protester;

2. A description of the contract to which the protest pertains, including the contract number and date that bids or proposals for the contract were received by the city;

3. The city department or division issuing the solicitation;

4. The factual and legal grounds for the protest;

5. The desired relief sought by the protester; and

6. Any written materials that the protester wishes to have considered.

B. Protests shall be addressed to the City Clerk, 915 I Street, New City Hall, Sacramento, CA 95814, or to the contract manager, as set forth in the city’s protest policies.

C. Any protest that does not comply with this section and the city’s protest policies is invalid and shall not be considered.

3.56.330 Protest fee.

B. The city shall use the protest fee to pay costs incurred by the city for the hearing and hearing examiner. If the costs are less than the protest fee, the city shall return any unexpended amounts. If the costs exceed the protest fee deposited, and the protest is denied, the city may invoice the protester for any additional unpaid costs, and the protester shall pay all costs due no later than 30 calendar days after the date of the invoice. Any protester that fails to pay an invoice within 30 days is barred from filing a protest on any subsequent city contract until the city receives payment of all costs due plus interest, at the rate of 10% per annum, beginning 30 calendar days after the date of the invoice.

17 3.56.340 Consideration of protest.

If a valid protest is filed, either a hearing examiner or the city council may consider the protest, as set forth in the city’s protest policies.

Article VII. Debarment of Contractors

3.56.350 Application.

This article applies to all contracts let by the city, including purchases and contracts for goods, nonprofessional services, public projects, and professional services.

3.56.360 Debarment—Effect.

Notwithstanding any other provision of this code:

3.56.370 Notice.

3.56.380 Grounds for debarment.

Debarment may be imposed on a person by the city manager, or a hearing examiner on appeal, in accordance with the procedures established by this article on any of the following grounds:

A. Commission by the person of any act of:
18 1. Fraud, bribery, collusion, or conspiracy;

2. Bid rigging, price fixing, or any other act in violation of any federal, state, or local law in connection with the bidding upon, award or performance of any contract; or

3. Embezzlement, theft, forgery, falsification or fabrication of records, or perjury.

C. The person knowingly doing business with a debarred third person in performance of any city contract awarded after debarment of the third person.

F. One or more serious violation by the person of any law or regulation governing the handling, transfer, storage, or disposal of hazardous materials or hazardous waste.

G. One or more serious violation by the person of any law or regulation governing the handling, transfer, storage, or disposal of solid waste generated in connection with construction or demolition.

H. A violation by the person of any law or regulation governing conflict of interest.

I. The issuance to the person, within a two-year period, of three final administrative penalty orders for violating any section of chapter 12.20. Multiple administrative penalty orders issued for continuing violations occurring on the same calendar day is considered one administrative penalty order for purposes of this section.

19 3.56.390 Determination of grounds.

1. The person has been convicted of a criminal charge for any act or omission described in section 3.56.380, whether entered upon a verdict or a plea, including a plea of no contest;

2. A final civil judgment arising out of any act or omission described in section 3.56.380 has been entered against the person;

B. Conduct may be imputed to a person for whom debarment is being considered as follows:

2. An act or omission, as described in section 3.56.380, of a person may be imputed to any principal who participated in, knew of, or had reason to know of the person’s conduct.

C. In determining whether to debar a person, and the duration of any debarment, the city manager or a hearing examiner may consider, in addition to any other relevant factors, the following:

20 1. The degree to which the person cooperated fully with local, state, or federal authorities during any investigation or any administrative or judicial proceeding that forms the grounds for debarment.

3. Whether the person had effective standards of conduct and internal control systems in place at the time of any of the acts or omissions set forth in section

3.56.380 or had adopted the procedures before any investigation of the acts or omissions.

4. Whether the person brought any of the acts or omissions set forth in section 3.56.380 to the attention of the appropriate public agency or agencies in a timely manner.

6. Whether the person has taken appropriate disciplinary action against the individuals responsible for any of the acts or omissions set forth in section 3.56.380.

7. Whether the person has implemented or agreed to implement remedial measures to prevent a recurrence of any of the acts or omissions set forth in section

3.56.380, including new or revised review and control procedures and ethics training programs, as well as any other measures identified by any public agency.

8. Whether the person has had adequate time to eliminate the circumstances within the organization that led to any of the acts or omissions set forth in section 3.56.380.

3.56.400 Scope of debarment.

A. A debarment of a group, association, firm, corporation, partnership, company, or other entity under this article constitutes debarment of all of the entity’s divisions and other organizational elements from all city contracts, unless the debarment decision is limited by its terms to one or more specifically-identified individuals, divisions, or other organizational elements.

B. The debarment of a person may include any existing affiliate of the person where the affiliate is specifically named and given notice of the proposed debarment 21 and an opportunity to respond. The debarment automatically includes any successor-in- interest or any affiliate of the debarred person formed after the debarment.

3.56.410 Period of debarment.

C. Unless the city manager has extended the debarment pursuant to subsection B, the debarment automatically terminates upon expiration of the debarment period.

3.56.420 Debarment procedures.

1. Notice that a debarment is being considered;

2. The grounds for the proposed debarment, in terms sufficient to put the respondent on notice of the conduct or transactions upon which it is based;

3. The potential period of the debarment;

4. The city’s procedures governing debarment; and

5. The address to which a request for a hearing or information and argument in opposition to the proposed debarment must be delivered or mailed.

B. Within 30 days after personal service or mailing of the notice of proposed debarment, the respondent or the respondent’s representative may submit in writing a 22 request for a hearing or information and argument in opposition to the proposed debarment. The written request or information and argument must also specify the address to which subsequent notices and other communications to the respondent should be mailed.

3.56.430.

1. Newly discovered material evidence;

2. Reversal of the conviction, civil judgment, or administrative penalty or sanction upon which the debarment was based;
23 3. Bona fide change in ownership or management; or

4. Elimination of other grounds for which the debarment was imposed.

3.56.430 Appeal of a debarment decision.

A hearing examiner may not be a city employee at the time of the hearing.

E. The proceedings at the hearing must be recorded. Either party may provide a certified shorthand reporter to maintain a record of the proceedings at the party’s own expense. The hearing examiner may, upon request of either party, grant continuances for good cause shown, or upon his or her own motion. The hearing examiner shall administer the oath or affirmation. California Government Code section 11513, 24 subdivisions (a), (b), and (c) apply to hearings under this section, except that relevant hearsay evidence may be sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs.

3.56.440 Requirement to submit information.

A. Is currently under debarment, or has been under debarment at any time during the preceding three years, by any federal, state, or local agency; and

3.56.450 Doing business with debarred person.

In the performance of any city contract, no person shall knowingly utilize the services of any person who is debarred under this chapter. No person shall knowingly use or list, in any bid or proposal for a city contract, any subcontractor or supplier who is debarred.

Violation of this section may result in rejection of the bid or proposal, nonpayment by the city for work performed by the debarred person, annulment of award or termination of contract, issuance of a stop work order, debarment, or any other remedy 25 provided by law. If a person lists a debarred subcontractor or supplier without knowledge of the debarment, the person will be allowed to substitute the debarred subcontractor or supplier listed in accordance with provisions of the contract governing contract changes.

3.56.460 Renewal of existing contracts.

3.56.470 List of debarred persons.

SECTION 5.

Chapter 3.60 of the Sacramento City Code is hereby deleted.

SECTION 6.

A new chapter 3.60 is hereby added to the Sacramento City Code to read as follows:

Chapter 3.60 Additional Procurement Requirements for Public Projects

3.60.010 Generally.

Contracts for public projects are subject to the requirements of this chapter, in addition to the requirements of chapter 3.56 and the city’s administrative policies.

3.60.020 Exemption of the City of Sacramento from various provisions of the California Public Contract Code.

A. Intent. Senate Bill 974, Chapter 832 of Statutes, 2001, added section 1100.7 to the California Public Contract Code, which provides that all provisions of the California 26 Public Contract Code apply to charter cities unless a particular city’s charter or ordinances expressly exempt the city from those provisions. In enacting this section, the city specifically declares itself exempt from any and all provisions of the California Public Contract Code except as specified in this section.

B. Declaration of general exemption. The city declares that it is exempt from all provisions of the California Public Contract Code including those provisions specified in subsection C, except for:

1. Those California Public Contract Code provisions that have been judicially declared to be matters of statewide concern in a final appellate court decision;

2. Those provisions specified in subsection D;

3. Those provisions that are specifically and expressly included in and made applicable to the city by a contract;

4. Those provisions that the city specifically and expressly agrees are applicable to the city as a condition to receipt of state funding or a required state approval; and

5. Those provisions that are made expressly applicable to the city by resolution adopted by the city council.

C. Specific exemptions from California Public Contract Code. The city is exempt from the following provisions of the California Public Contract Code:

1. Division 2, part 1, chapter 6, sections 6100 through 6108, inclusive;

2. Section 7102;

3. Section 7103;

4. Section 7104;

5. Section 9203;

6. Division 2, part 2, sections 10100 et seq.;

7. Division 2, part 3, chapter 1, sections 20100 et seq., except as set forth in subsection D;

8. Division 2, part 3, chapter 1.5, sections 20930 et seq.;

9. Division 2, part 3, chapter 2, sections 22000 et seq.;

10. Division 2, part 3, chapter 2.5, sections 22050 et seq.; 27 11. Division 2, part 3, chapter 3, sections 22101 et seq.

D. Applicable provisions. The city is subject to the following provisions of division 2, part 3, chapter 1 of the California Public Contract Code :

1. Section 20103.5;

2. Section 20103.8;

3. Section 20104.50;

4. Section 20104.70;

5. Article 27;

6. Article 29;

7. Article 30;

8. Article 31;

9. Article 32;

10. Article 54;

11. Article 56;

12. Article 57;

13. Article 58;

14. Article 59.

3.60.030 Standard specifications.

The city council shall, from time to time, adopt standard specifications setting forth terms and controls for public project contracts and the bidding and award thereof. The standard specifications must conform to the purposes and intent of this chapter, and must include the following:

A. Bid forms and requirements governing the proper completion thereof by the bidder;

B. Bid security forms and requirements for the use thereof, including forfeiture in certain cases and return to unsuccessful bidders;
28 C. Faithful performance bond forms and requirements;

D. Payment bond forms and requirements;

E. Labor and material bond forms and requirements;

F. Terms governing the time to complete the contract, extending the time to complete the contract, and liquidated damages; and

G. Terms governing a failure of completion by the contractor, payment of the contractor for work performed in the event of failure, and the completion of the contract in such instance.

3.60.040 Payment of prevailing rate of wages—Maximum hours of labor—Penalties.

The general prevailing rate of wages shall be the general prevailing rate of wages for the area in which the city is located as determined by the director of the department of industrial relations pursuant to California Labor Code section 1773. Every contract for which the payment of the general prevailing rate of wages is required shall provide that the determination of the director of the department of industrial relations in force at the time the notice to bidders is published with respect to the general prevailing rate of wages in private employment in the city for similar work shall be binding upon the parties any contract awarded as a result of such notice. If any worker is paid less than the general prevailing rate of wages for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, the city may withhold contract payments equal to the amount of underpayment. In addition, the contractor shall forfeit as a penalty to the city not more than $50 for each calendar day, or portion thereof, for each worker paid less than the general prevailing rate of wages, as determined by the director of the department of industrial relations, for the work or craft in which the worker is employed by the contractor or any 29 subcontractor for any work done under the contract, and every contract shall have inserted therein a clause to that effect.

Every contract falling under the terms of this section shall contain a provision that requires the contractor to insert into every subcontract or subagreement entered into, provisions identical with the provisions set forth in the contract pursuant to this chapter regarding compliance with the requirements for wage rates, hours of labor, and requirements for the employment of apprentices. The stipulations shall fix the 30 responsibility of compliance with sections 3.60.040 and 3.60.050 of this chapter with the prime contractor.

3.60.050 Apprentices.

3.60.060 Fee for substitution of securities for withheld funds on contracts.

SECTION 7.

Chapter 3.64 of the Sacramento City Code is hereby deleted.

SECTION 8.

A new Chapter 3.64 is hereby added to the Sacramento City Code to read as follows:

31 Chapter 3.64 Participation of Local Business Enterprises

3.64.010 Local business enterprise and local hire programs.

3.64.020 LBE and local hire participation levels.

3.64.030 Sheltered market program.

3.64.040 MBE/WBE/DBE bid requirements.

The LBE and local hire programs authorized in sections 3.64.010 through 3.64.030, inclusive, do not apply to any contract awarded under or funded by any federal or state program that includes minority business enterprise (MBE), women business enterprise (WBE), or disadvantaged business enterprise (DBE) participation goals. The contracts will be awarded in accordance with the applicable MBE, WBE, or DBE requirements and policies.

3.64.050 Provision of false information a misdemeanor.

32 B. No person shall submit false information to the city or the city’s representative in connection with any bid or proposal regarding the MBE, WBE, DBE, or LBE status of any business entity, including a sole proprietorship, or regarding efforts made by that person to meet the MBE, WBE, DBE, or LBE participation levels included in a city contract.

3.64.060 Information to be provided under penalty of perjury.

SECTION 9.

Chapter 3.80 of the City Code is hereby amended to read as follows:

Chapter 3.80 DISPOSITION OF SURPLUS PERSONAL PROPERTY

3.80.010 Generally.

Surplus personal property, defined as personal property belonging to the city that is no longer fit or necessary for use by the city, including any lost or unclaimed property , must be disposed of according to the provisions of this chapter.

3.80.020 Surplus personal property list approval.

Any city department or office may create a list of all surplus personal property held by such city department or office. This list should include photos and descriptions of the property, the contact information for the personnel managing the department or office, 33 and the address at which the property is kept. If approved by the head of the department or office, the property listed shall be known as surplus personal property.

Departments or offices may only dispose of surplus personal property as provided in this chapter.

3.80.030 Methods of disposition.

A. City departments and offices may only dispose of surplus personal property through one of the following methods:

2. Sale at public auction to the highest bidder.

3. Sealed proposal. The city manager may adopt policies for the disposal of surplus personal property through sealed proposals. Any policies must provide that the city reserves the right to reject any and all sealed proposals.

4. Incidental sale. Surplus personal property may be sold through an incidental sale, as provided in section 3.80.040 of this chapter.

5. Consignment. The city council may, by resolution, determine to dispose of surplus personal property by putting such property out to sale on consignment if the council finds that such method of sale is likely to bring the highest price to the city. The resolution must set forth the minimum price at which such property may be sold and call for bids for consignees to sell such property. At the same time council determines to sell such property on consignment, or later, the council may, by a resolution adopted by 34 a two-thirds vote, determine to waive competitive bidding on the consignment contract if it determines that waiver is in the best interest of the city.

B. All dispositions pursuant to subsections A.1 through A.7 must be pursuant to a written document approved as to form by the city attorney or designee.

3.80.040 Incidental sale of certain items.

A. A department or office may sell any item of surplus personal property by incidental sale when it determines that the item:

1. Is scrap or salvage material, including, discarded fire hose, a tire casing, a dead storage battery, or worn-out or wrecked automobile or machine body or part;

2. Is perishable; or

3. Has been offered for public sale and no offer to purchase has been received.

B. For the purpose of this section, the term “incidental sale” means the sale of any item defined in subsection A of this section at a price, and at a time and place to be determined by the head of the department or office in possession of the surplus personal property, to any buyer who is willing to pay the price requested, without first advertising such sale or calling for bids.

Procurement of SuppliesGoods

FULL POLICY CONTENTS

Policy Statement
Purpose
Forms/Instructions
Procedures
Contacts

ADDITIONAL DETAILS
Definitions
Appendices
FAQ
Related Information
History

Policy Number: AP-4001
Document Type: Policy
Version: 1.2
Initially Adopted: February 2010
(Resolution 2010-084)

Update Effective: March 13, 2020

Responsible Department/Division:

Finance / Procurement Division
Policy Statement
This Administrative Policy sets forth City policies that apply to the procurement of suppliesgoods.

This policy supplements requirements set forth in the Sacramento City Charter and City Code, including City Code Chapter 3.56.

Special Situations
Not Applicable
Exclusions
Not Applicable

Purpose
To ensure that all procurement functions are performed in compliance with applicable federal, state and City laws, regulations, ordinances and policies, to ensure the uniform and consistent application of the procurement process, and to ensure fairness, open competition, and competitive pricing.

Forms/Instructions
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Procedures

Contacts
Department of Finance, Procurement Division
Office of the City Clerk
Office of the City Attorney

Definitions
Addendum
An amendment to an invitation for bid (IFB) or request for proposals (RFP). solicitation.

Best Value
Best value means the expected outcome of a procurementcontract that, in the City’s estimation, provides the greatest overall benefit to the City. in response to the requirement.

Buyer
Either (1) A position or employee in the Procurement Services Division authorized by the City Manager or Director of Finance to administer the procurement of supplies goods on behalf of one or more City Departments, or (2) a position or employee outside of the Procurement Services Division authorized by the applicable Department Director to administer the procurement of supplies goods on behalf of the Department. A Buyer is not authorized to execute supply goods contracts on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

City-wide Contract
A contract administered by the Procurement Services Division to procure supplies goods for multiple Departments.

Competitive Bidding
The process of soliciting bids and awarding a contract to the lowest responsive and responsible bidder.

Contract
Any binding contract document, regardless of what it is called, for the procurement of suppliesgoods. References to a “contract” shall be deemed to include all documents attached to or incorporated in the contract.

Contractor
A person, firm or other entity that contracts with the City to provide suppliesgoods.

Emergency Contract
A contract initiated when the public interest and necessity demand immediate procurement of supplies goods to safeguard life, health, or property, to permit the continued conduct of City operations or services, or to mitigate further damage.

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Emerging and Small Business Enterprise (ESBE) Requirements The procurement requirements and procedures imposed pursuant to the program established by the City Council to promote and provide incentives for the participation of emerging and small business enterprises in City contracts.

Federal Micropurchase Threshold
The dollar amount at which the federal government has determined no competition is required for purchasing.

Invitation for Bid or Request for Bid (IFB or RFB)
A written notice issued to potential bidders that includes bid specifications and specifies, among other things, the procedures for bid submittal and place, date and time of bid opening invitation or request for bids, for a contract to be awarded to the lowest responsible bidder.

Local Business
A business operating within the City of Sacramento or unincorporated County of Sacramento consistent with the City’s Local Business Enterprise Policy.

Lowest Responsible Bidder
The lowest responsible bidder determined in accordance with the criteria specified in City Code Section 3.56.020, that includes a bid evaluation deduction for local bidders subject to the City’s local sales or use tax.

Market Price
Current prices that are established in the course of ordinary trade competition between buyers and sellers free to bargain, and prices that can be substantiated through competition or from sources independent of vendors that respond to a particular solicitation or request for information.

Payment Voucher
A document that records the accounting, distribution and payment of the invoice.

Procurement
Contracting, purchasing, renting, leasing or otherwise acquiring for the City any supplies.

Unless indicated otherwise by the context, this term is intended to include all functions that pertain to obtaining the suppliesgoods, including the preparation of specifications and requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

Procurement GuidelinesProcedures
Written guidelines procedures developed by the Procurement Division City staff and approved by the City Manager that specify more detailed operational requirements guidance for City procurement, consistent with applicable provisions of the City Charter, City Code and Administrative Policy Instructions (APIs).

Purchase Order
A written authorization for a vendor to supply goods or services at a specified price and Formatted: Heading 3
over a specified period of time. In the absence of a contract executed by the City and Contractor, Aacceptance of the purchase order shall constitutes a binding contract.

The use of a purchase order instead of a fully executed contract is subject to approval of the Procurement Division, the City Attorney’s Office, and the Risk Division.

Request for Proposals (RFP)
A written request for proposals to p rovide specified supplies for a contract to be awarded on a basis other than the lowest responsible bid der.to provide supplies, if permitted under Section 2 (When Competitive Bidding is Not Required) below.

Request for Qualifications (RFQ)
A written request for the submission of qualifications to provide specified nonprofessional services. RFQs are used to identify contractors with a dequate qualifications to provide the specified services.

Responsive Bidder
A bidder whose bid meets all of the bidding requirements in the IFBsolicitation.

Specifications
A complete description of the physical and/or functional characteristics and quantity of the supplies goods to be provided. Specifications may also include a description of any requirement for
inspecting, testing or preparing a material item for delivery. Specifications shall be included with the IFB and RFPsolicitation.

SupplementAmendment

An amendment modification to the terms of a contract for supplies that must be approved in accordance with applicable provisions of City Code.

SuppliesGoods
Any goods supplies, equipment, materials or other tangible items to be purchased, rented, leased or otherwise acquired by the City, including materials for the maintenance or repair of any street, sewer, or water work.

Definitions set forth in Chapter 3.56 of the City Code also apply.

Appendices
None
Frequently Asked Questions
Related Information
• City Charter-Article XIV Public Contracts and Supplies • City Code Chapter 3.04, 3.54, 3.56, 3.58, 3.60 & 3.80 • Resolution No. 2010-084
• Administrative Policy Regarding Delegation of Signature Authority • Procurement Guidelines
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• Procurement Ethics and Standards of Conduct

Document History
Amended: March 13, 2020
Supersedes: API # 1 – Procurement of Supplies and Non-Professional Services Adopted: February 2010

Policy

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.1 GENERAL REQUIREMENTS APPLICABLE TO ALL PURCHASES

(a) The City Code Section 3.56.030 prohibits splitting or separating into smaller units any requirement for supplies goods, for the purpose of evading the applicable requirements for competitive bidding and or City Council award that apply to contracts of $250,000 or more. The City Code defines this prohibited practice as reducing the amount of supplies goods to be furnished under circumstances where there is a reasonable knowledge that the same supplies goods will be required within the same budgetary term, that there are funds available for such additional supplies goods, and the purpose is to knowingly avoid formal competitive bidding.

(b) To the extent practical, Departments shall include representatives from the Procurement Services Division in Departmental meetings that discuss long- range planning for the procurement of suppliesgoods and logistical supplygoods requirements, and whenever possible:

1. Departments shall use City-wide contracts, and

2. Departments and the Procurement Services Division shall work together to plan annual requirements for suppliesgoods, in order to maximize economic efficiencies, and to avoid impermissible contract splitting.

(c) The Procurement Services Division shall direct and manage the procurement process for all suppliesgoods defined as City-wide suppliesgoods. Authority for the management of a City-wide contract may be delegated by the Procurement Services Manager.

(d) The solicitation and award procedures specified in this policy for the purchase of suppliesgoods vary depending on the amount of the procurement. For purposes of determining which solicitation and award procedures apply:

1. When a City-wide contract is used, the procurement amount is the total amount of the City-wide contract.

2. When a City-wide contract is not used, the procurement amount for a specific purchase is the sum of:
a) the total amount to be spent over the potential life of the contract, or purchase order for that specific purchase, and
b) if no contract exists, the total amount that the Department will pay for Formatted: Highlight
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the same suppliesgoods in the same fiscal year under any other existing contract or purchase order within that Department (excluding existing contracts that have been awarded or approved by the City Council).

3. The determination of what constitutes the “same supplies goods” under subsection 2, above, shall be made by the Procurement Services Division Manager or his/her their authorized designee,. based on criteria specified in the Procurement Guidelines Manual.

(e) City Code Section 3.56.080 states that cContracts less than $250,000 do not require the approval of the City Council and may be executed on behalf of the City by the City Manager or the City Manager’s designee. Delegations of approval authority are specified in API # 22 (Signing Authority). In the event of a declared emergency pursuant to the City Code Chapter 2.116, the City Manager or the City Manager’s designee may supplement an existing contract by up to $249,999.99 execute any contract or contract supplement (without regard to the original contract value) for transactions less than (e) $250,000 and related to the emergency response.

(f) For purchases of any amount, the purchase amount shall be calculated based on the full cost of any term and/or quantity extensions provided for in the contract including all associated costs such as tax and shipping.

(g) When purchase of equipment or suppliesgoods includes onsite delivery, installation or training services, general liability and workers compensation insurance (including a waiver of subrogation) shall be required. If a vehicle is used to deliver the goods or otherwise perform the services, auto liability insurance shall be required. If goods will be delivered by a common carrier and no vehicle will otherwise be used, auto liability insurance shall not be required.

(h) Staff must work with the Procurement Division to open a purchase order before the Finance Department can pay an invoice. Blanket purchase orders may be utilized to fulfill temporary and/or unpredictable goods requirements.

(g)(i) When purchases utilize non-city funding (i.e. federal, state, or local grand funds or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, special terms may be required in the solicitation and/or contract. Buyers must consult with the City Attorney’s office to determine what additional or different terms may apply based on the funding source prior to issuing a solicitation.

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.2 1.1 GOODS PURCHASES OF $10,0005,000 OR LESS (MICROPURCHASING)

(a) Micropurchasing (Ppurchases of $10,000 5,000 or less) does not require competitive bidding and the provider of the supplies goods may be selected at the discretion of the Buyer. No minimum number of price Formatted: List Paragraph, Indent: Left: 0.65",
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quotations is required.
(a)(b) The City Manager may approve adjustments to the threshold for micropurchasing, but may not exceed the Federal Micropurchase Threshold.
(c) Price quotations shall be written1.
(d) Although not required, if price quotations are requested from more than oneAll prospective contractor,s contacted must be given the same information must be provided to all contractors and they must be allowed adequate time to respond.
(b)(e) The City’s Local Business Enterprise (LBE) Policy requirements do not apply to micropurchases, but contracting with Local Businesses is encouraged.

1.3 1.2 GOODS PURCHASES OF MORE THAN $10,0005,000 UP TO AND INCLUDING $100,00025,000 (INFORMAL BIDDING)
(a) The Buyer shall be responsible for soliciting bids from at least three prospective bidderscontractors , unless the Buyer documents that the supplies goods are not reasonably available from at least three bidderscontractors. (b) In addition to the application of the 5% LBE Preference, as described in the City’s Local Business Enterprise Policy2 At least one of the bids solicited must be from a local business unless the Buyer documents that the goods are not reasonably available from a local business.
(a)
(b)(c) Price quotations Bids shall must be written3. All prospective vendors contractors contacted must be given the same information and the same amount of time to respond with a quotation.
(d) Contract award shall be made to the lowest responsive and responsible bidder.
(c)
(d)(e) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this policy.

1.4 1.3 GOODS PURCHASES OF MORE THAN $100,00025,000 AND LESS THAN $250,000 (FORMAL COMPETITIVE BIDDING)
(a) The issuance of ana formal Invitation for Bids (IFB) or Request for Bids (RFB) and advertising on the City’s web site for Contracting Opportunities areis required.
(b) Bids must be obtained in writing, and all prospective vendors must be

1 If quotations are obtained over the phone, the buyer must document the information received utilizing a standard form provided by the Procurement Division.
2 While the City’s LBE policy does not apply to federally funded contracts, the requirement to solicit at least one bid from a local business as part of the informal bidding process does apply to federally funded contracts as it is not a prohibited “preference.”
3 If quotations are obtained over the phone, the buyer must document the information received utilizing a standard form provided by the Procurement Division.

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given the same information and the same time to respond. (c) The minimum time required for advertising bids an IFB or RFB on the City’s web site for Contracting Opportunities is ten calendar days. The length of the Aadvertisement periodof IFBs should be appropriate to the industry standards for the particular suppliesgoods, to achieve the maximum practical public notice and competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(e) Bids shall be received and opened by the Buyer.
(f) Contract award shall be made to the lowest responsive and responsible bidder.
(g) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is not Required) of this policy.
(g) Notice of contractor selection shall be provided to all bidders as soon as reasonably practical to trigger the protest period.
(h) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is not Required) of this policy.
(h)

1.5 1.4 GOODS PURCHASES OF $250,000 OR MORE (FORMAL COMPETITIVE BIDDING) (a) The issuance of a formal IFB or RFB and advertising on the City’s website for Contracting Opportunities is required.
(a) City Code Section 3.56.120 requires advertising through the City Clerk's office and formal competitive bidding is required for purchases of supplies of $250,000 or more.
(b) Bids must be obtained in writing and all prospective bidders must be given the same information and same time to respond.
(c) The minimum time required for advertising solicitations on the City’s website for Contracting Opportunities is ten calendar days. The length of the advertisement period should be appropriate to the industry standards for the particular goods to achieve maximum competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(b) All such purchases shall be advertised on the City’s web site for Contracting Opportunities for a minimum of ten calendar days prior to the date set for receiving bids.
(c)(d) Bidding shall be conducted in accordance with the requirements of City Code Chapter 3.56 including A public bid opening of bids by the City Clerk or designee shall be conducted.
(d) Circumstances under which the City Code does not require competitive bidding for contracts of $250,000 or more are summarized in Section 2 of this policy. (e) City Code Section 3.56.090 requires cContracts of $250,000 or more to must be approved awarded by the City Council.

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(f) A Nnotice of intent to awardcontractor selection shall be provided to all bidders as soon as reasonably practical to trigger the bid protest period. (e)
(f)(g) Award iswill be made to the lowest responsive and responsible bidder, unless a different action is taken by the City Council pursuant to the City Charter or City Code.
(h) Notice of contractor selection shall be provided to all bidders as soon as reasonably practical.Circumstances under which the City Code does not require competitive bidding for contracts of $250,000 or more are summarized Exceptions to the above requirements are provided for in Section 2 (when Competitive Bidding is not Required) of this policy.
(g)

2. WHEN COMPETITIVE BIDDING IS NOT REQUIRED

2.1 PURCHASES OF MORE THAN $10,0005,000 AND LESS THAN $250,000 (a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s Office if using non-city funds. (a)(b) The bidding requirements specified in Section 1 (Solicitation Thresholds and Requirements) of this policy do not apply if any of the following conditions are met:

1. After advertising for bids as required, no bids are received, or all bids received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

3. It is in the City's best interest to use a different procurement method. This justification must be documented by the Buyer, and the request to use a different procurement method must be approved by the applicable Department Director and Procurement Services Manager, in accordance with applicable provisions of the Procurement Guidelinesprocedures.

Examples of alternative procurement methods areinclude:
(i) Competitive negotiation: The Buyer negotiates with two or more suppliers to obtain a contract for the lowest price. Documentation shall be maintained of all negotiation discussions, terms, and offers. (ii) Sole source/sole brand procurement: After conducting a good faith review of available sources, the Buyer determines there is only one reasonable and practicable source for the required suppliesgoods.

A requirement for a particular proprietary item does not justify a Formatted: Indent: Left: 1.03", No bullets or
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sole source procurement if more than one potential bidder or offeror for that item is reasonably and practicably available. (1) The following are other examples of circumstances that could necessitate a sole source procurement:
• When the goods are only available from a sole or single source based on that source’s unique capability or intellectual property rights. A requirement for a particular proprietary item does not justify a sole source procurement if more than one potential bidder or offeror for that item is reasonably and practicably available.
• When, in the case of a follow -on contract for highly specialized goods, it is likely that award to another contractor will result in: (1) substantial duplication costs that are no expected to be recovered through competition; or (2) unacceptable delays, th e cost of which will exceed the costs expected to be recovered through competition.

1.• Compatibility of equipment, accessories, or replacement parts is the paramount consideration.;
• A sole supplier’s item is needed for trial use or testing or is to be procured for resale.; or

2. 3. The City receives an unsolicited written offer to provide supplies.
(2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of supply will be suitable or acceptable to meet the need. Documentation shall be maintained of all negotiation discussions, terms, and offers..
(iii) Use of a Request For Proposal (RFP) process: A RFP process is used to allow the award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors in addition to price, such as the need for more than one contract or if authorized.
consistent with applicable provisions of the Procurement Guidelines.
(iv) 4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

5. Cooperative agreements or piggybacking: The Buyer may obtain suppliesgoods through competitively bid procured cooperative purchasing agreements or by piggybacking off of other governmental jurisdictions or public agencies’ competitive contracts without separate competitive bidding by the City., when supported by a market analysis showing that the prices and terms are below or meet market rates.

Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.
(v) 6. Surplus Goods: Under City Code Section 3.80, when it is Formatted: Numbered + Level: 1 + Numbering Style:
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advantageous to the City, the City Manager may direct the purchase of surplus goods from the United States Government, or any agency thereof, or from the state of California, or any agency thereof, or any public body, without separate competitive bidding.

2.2 PURCHASES OF $250,000 OR MORE
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s office if non-City funding will be used. (b) These exceptions do not affect the requirement for City Council to approve of all contracts for $250,000 or more.
(c) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interests of the City. Questions concerning the applicability of competitive bidding requirements should be directed to the City Attorney’s Office. (a)(d) Under City Code Section 3.56.230, competitive bidding is not required for purchases of $250,000 or more under the following circumstances:

1. After advertising for bids as required, no valid bids are received or all bids received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.by the City Council consistent with applicable provisions of the City Code.

1.2. The contractor awarded a contract fails to enter into the contract. If this occurs the next lowest bidder, if there is one, shall be awarded the contract, if such bidder’s price is acceptable. If there is no such bidder, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

2.3. The City Council determines on a 2/3 vote that it is in the best interests of the City to suspend competitive bidding. The suspension of competitive bidding can be recommended for various reasons, including :
(i) Other competitive methods: Alternative methods for contractor selection, such as using a RFP process to allow award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors, such as the need for more than oneand/or selecting a contractor, based on factors other than or in addition to price.
(ii) Competitive negotiation: The Buyer negotiates with two or more suppliers to obtain a contract for the lowest price.
(iii) Sole source/sole brand procurement: After conducting a good faith review of available sources, the Buyer determines there is only one reasonable and practicable source for the required suppliesgoods.

A requirement for a particular proprietary item does not justify a sole source procurement if more than one potential bidder or offeror for that item is reasonably and practicably available.

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(iii) (1) The following are other examples of circumstances that could necessitate a sole source procurement:
• When the goods are only available from a sole or
single source based on that source’s unique capability
or intellectual property rights. A requirement for a
particular proprietary item does not justify a sole source procurement if more than one potential bidder or
offeror for that item is reasonably and practicably
available.
• When, in the case of a follow-on contract for services, it is likely that award to another contractor will result in:
(1) substantial duplication costs that are not expected to be recovered through competition; or (2)
unacceptable delays, the cost of which will exceed the
costs expected to be recovered through competition.

1.• Compatibility of equipment, accessories, or
replacement parts is the paramount consideration.;

2.• A sole supplier’s item is needed for trial use or testing or is to be procured for resale.; or

3. The City receives an unsolicited written offer to provide supplies. (2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other
source of supplygoods will be suitable or acceptable to meet the need. Documentation shall be maintained of all
negotiation discussions, terms, and offers.
(iv) Council reports and resolutions prepared
for a recommendation to suspend
competitive bidding must set forth factual
justification to support a finding that such
action is in the best interests of the City.

Questions concerning the applicability of
competitive bidding requirements should be
directed to the City Attorney’s Office.
(b) 4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.
(c) 5. Cooperative purchase agreements or piggybacking: Under City Code Section 3.56.240, the City Manager, w here advantageous to the City, The Buyer may by obtain goods through a competitively procured cooperative purchasing agreements approved by the City Council or piggybacking off , purchase supplies through legal contracts of other governmental jurisdictions or public agencies’ competitive contracts without Formatted: Indent: Left: 1.65", No bullets or
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separate competitive bidding by the City.

6. Surplus suppliesgoods: Under City Code Section 3.56.250, when it is advantageous to the City, the City Manager, on approval by the City Council, may direct the purchase of surplus suppliesgoods from the United States Government, or any agency thereof, or from the state of California, or any agency thereof, or any public body, without separate competitive bidding.

(d)

2. BLANKET PURCHASE ORDERS

Blanket purchase orders shall be utilized to fulfill temporary and/or unpredictable supply requirements that have not or cannot be efficiently obtained through the normal purchasing process.

3. ITEMS REQUIRING REVIEW PRIOR TO PURCHASE
(a) Certain purchases require review by other City departments or divisions before a purchase can be made. Such reviews are intended to ensure consistency and conformity with City standards. Unless otherwise specified, these reviews are required regardless of the purchase amount. Review of proposed supplies goods by the noted departments/divisions prior to contracting for such supplies goods is required as follows:

1. Department of Information Technology
a. Computer equipment, software, and other information technology items
b. Radios, telephones, cell phones, pagers, and other communications

2. Procurement Services Division Manager or authorized designee a. Cooperative purchase agreements — for less than $250,000 contracts

3. Department of Public Works -Fleet D i v i s i o n Operations a. Vehicles and related equipment that require at least two of the following (or other criteria set forth in Fleet’s
Purchasing/Budgeting policies):
(i) fuel to be operated (including electricity)
(ii) tires or tracks
(iii) license/titling with DMV
(iv) mounting to fleet equipment that use fuel
(v) an operator to ride on to operate

4. Department of Finance - – Facilities and Real Property Management Division (in consultation with the department in which the facilities reside)
a. Purchases for supplies goods at facilities or sites that require electrical, mechanical, plumbing, or structural changes (except facilities or sites within the street right of way)
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4. SOLICITATION METHODS

4.4.1 INVITATION FOR BID (IFB) / REQUEST FOR BID (RFB) (a) IFBs o r R F B s are required for the procurement of supplies goods costing over more than $100,00025,000, except as otherwise provided in Sections 2 (When Competitive Bidding is Not Required) and 3 (Blanket Purchase Orders) of this policy. This does not preclude the use of IFBs or RFBs for procurements below this threshold.
(b) The Buyer shall bear the overall responsibility for the preparation of bid specifications, utilizing a standardized IFB/RFB format, as provided byin the Procurement Division Guidelines or otherwise approved by the City Attorney’s office.

5. REQUEST FOR PROPOSAL (RFP)
(a) RFPs are generally used to solicit services, but may be used to procure supplies where appropriate and practical as authorized under Section 2 (When Competitive Bidding is not Required) of this policy.
(b) RFPs shall comply with applicable provisions of the Procurement Guidelines.

4.2 OTHER PROCUREMENT METHODS
(a) Alternative procurement methods to IFB or RFB should only be used where appropriate and practical, and as authorized under Section 2 (When Competitive Bidding is not Required) of this policy.
(b) Requests for Proposals (RFPs) must meet the requirements set forth in AP 4101 – Non-Professional Services, and applicable Procurement procedures, unless an alternative to the standard RFP process is specifically approved pursuant to Section 2.
(c) Request for Qualifications (RFQ) must meet the requirements set forth AP 4101 – Non-Professional Services and applicable Procurement procedures, unless an alternative to the standard RFQ process is specifically approved pursuant to Section 2.

6. 5. AMENDING OR CANCELING AN IFB OR RFP SOLICITATION (a) An addendum shall be used to modify an IFB or RFP solicitation, and shall be issued not less than 3 working days before the deadline specified for receipt of bids or proposals. Addendums extending the deadline or canceling the IFB or RFPsolicitation may be issued less than 3 working days before such date if necessary.

(b) The minimum components required for addendums are identified in the applicable Procurement Guidelines procedures.
(c) The addendum shall be published using the same media used to advertise the original solicitation IFB or RFP, including the City website. Addendums shall be sent to all prospective bidders/proposers known to have received a Formatted: Font: Not Italic
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solicitationn IFB or RFP.

7.6 PUBLIC DISCLOSURE
(a) IFBs and RFPsSolicitations for purchases of $100,00025,000 or more shall be available for public inspection at the issuing Department and shall be posted on the City website.
(b) After bid opening, bids shall be made available in response to a request for public inspection, in accordance with the California Public Records Act. (c) Proposals shall be made available in response to a request for public inspection a f t e r t h e s o l i c i t a t i o n p r o c e s s i s c o m p l e t e , in accordance with the California Public Records Act after the proposal evaluation process is completed.
(d) If the bidder or proposer designates any portion of its bid as proprietary or confidential, or any other public disclosure issues are presented, the Buyer shall consult with the City Attorney’s Office prior to any response or disclosure.

8.7 ACCEPTANCE AND EVALUATION OR REJECTION OF BIDS OR PROPOSALS

7.1 LATE BIDS OR PROPOSALS

(a) (a) A bid or proposal is late if it is received at the location designated in the IFB solicitation or RFP after the deadline specified in the IFB or RFPsolicitation.

(b) (b) A late bid or proposal shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.

(c) ( c ) A late bid or proposal shall not be opened, except (if necessary), for identification purposes. Delivery and return of late bids or proposals shall be handled in the following manner:

1. (d) If delivered in person, a late bid or proposal shall be rejected and returned to the person delivering it (failure to reject it at the time of delivery does not constitute acceptance);

2. 1. If not delivered in person, a late bid or proposal shall be returned by certified mail;

3. 2. Bidders or proposers submitting late bids or proposals that will not be considered for award shall be notified as soon as practicable.

8.2 7.2 GENERAL REQUIREMENTS FOR ACCEPTANCE AND EVALUATION (a) (a) Bids or proposals shall not be altered or corrected after opening, except for minor irregularities as specified in the bid solicitation document and/or the City Code. A bid or proposal may be withdrawn by the bidder only if so authorized in the Procurement Guidelinessolicitation or under State law.
(b) (b) Only the City Council has the authority to waive minor irregularities for bids or proposals of $250,000 or more. For bids or Formatted: Outline numbered + Level: 1 + Numbering
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proposals valued less than
$250,000, the City Manager or designee has the authority to waive minor irregularities.
(c) (c ) No criteria shall be used in bid or proposal evaluations that are not referenced in the bid specifications or RFP solicitation or in applicable provisions of the City Code or other applicable laws or regulations.
(d) (d) When leasing is proposed, a lease cost vs. buy cost analysis shall be conducted as part of the bid or proposal evaluation; if this analysis shows that buying the supplies goods is a lower cost option, a written justification for selecting the lease option shall be prepared and approved by the Buyer for consideration by the approving authority prior to contract approval.
(e) (e ) When an RFP process is used (if authorized instead of an IFB/RFB, as noted above), no discussions for any purpose other than administrative clarification may be conducted with proposers after submission of proposals, except during the presentation phase, if any.

8.3 7.3 DETERMINATION OF LOWEST BID
(a) (a) For an IFB or RFB, the contract shall be awarded to the lowest responsive and responsible bidder. Deferred cost factors, such as life cycle cost and disposal cost, may be considered in determining the bid amount, but only if specifically provided in the IFBsolicitation.
(b) (b) If a bidder that otherwise would have been the lowest responsible bidder is determined to be non-responsible, after consulting with the City Attorney’s office, the Buyer shall prepare a written determination of non- responsibility, setting forth the basis of the finding of non-responsibility and advising the bidder that it may request a hearing on the matter, and shall send such determination to the bidder by certified mail. (c) (c ) If there are two or more low responsive bids from responsible bidders that are identical in price, quality and service, and both meet all the requirements and criteria set forth in the IFB or RFB, then award, if made, shall be made by a drawing of lots.

8.4 7.4 REJECTION OF BIDS

(a) (a) For contracts less than $250,000, the Department Director or the Buyer shall have the authority to reject a bids, after consulting with the City Attorney’s office.

(b) (b) For contracts of $250,000 or more, only the City Council has the authority to reject any valid bids.

7.5 NOTICE OF INTENT TO AWARD
A notice of intent to award shall be provided for all published solicitations as soon as reasonably practical to trigger the protest period. The Bid Protest Policy approved by the City Manager may also apply to informal solicitations.

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8.5 7.6 CONTRACT FORM AND DOCUMENTATION
(a) (a) For all levels of contract award, a current standard supplies contract form,s as approved by the City Attorney’s Office shall be usedexecuted prior to starting any services. Current citywide approved forms are available on the Procurement page on the City’s intranet.
(b) (b) For contracts of $250,000 or more, the contract must be signed by the contractor and the City Attorney’s Office, and submitted to the City Clerk, prior to City Council award of the contract.
(c) (c )For all levels of contract award, contract documents must be fully executed (obtain all signatures and provide any required contract documents) prior to performance of the contract.
8 BID SECURITY/BONDS AND INSURANCE

9. 9.1 8.1 BID SECURITY
(a) (a) The Buyer shall determine whether to require bid security, consistent with the level of risk associated with the purchase, and the requirement shall be specified in the IFBsolicitation.
(b) (b)_ Bids received without the required security shall be considered non- responsive and will be rejected.
(c) (c )Bid security shall be returned to unsuccessful bidders after a successful bidder is selected and awarded the contract. (d) (d) Bid security may be forfeited and applied as specified in City Code Section 3.56.150.

9.2 8.2 PERFORMANCE BONDS
(a) (a) The Buyer shall determine whether to require a performance bond, consistent with the level of risk associated with the purchase, and the requirement shall be specified in the IFB.
(b) (b) Performance bond requirements shall be described in the IFB or RFPsolicitation, and shall conform to applicable provisions of the Procurement Guidelinesprocedures.
(c) (c ) Performance bonds shall be accepted only from sureties admitted and duly authorized to transact business in the State of California, and shall be approved as to form by the City Attorney’s office.
(d) Failure to submit the required bond within the time specified in the notice of award may be just cause for annulment of the award and forfeiture of the bidder's bid security.

8.3 INSURANCE
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(a) All insurance requirements specified in the current standard contract form must be satisfied prior to approval and execution of the contract by the City, unless otherwise approved by Risk Management.
(b) Additional insurance requirements may apply depending upon the type of goods being purchased. Departments must consult with the Risk Division on any additional insurance requirements to be added to solicitations and/or contracts.
(c) All changes to contractual provisions including insurance requirements must be approved by the City Attorney’s Office and the Department Director prior to contract approval and execution by the City.

9. BID PROTEST

10. 10.1 CONTRACTS OF MORE THAN $5000 AND LESS THAN $250,000

(a) A bBidders or proposers responding to a solicitation on a contract may file a bid protest in accordance with policies adopted by the City Manager’s office and posted on the City’s website. (1) claiming that one or more bidders on the contract should be disqualified or rejected for any reason, or (2) contesting a City staff recommendation to award the contract to a particular bidder, or (3) contesting a City staff recommendation to disqualify or reject one or more bidders on the contract. Only a bidder may file a bid protest on a contract.

(b) The bid protest shall be in writing and shall be filed with the Buyer not later than 5 working days after City staff provides notice of the recommended contract award to the bidders. The bid protest shall provide the name, address, telephone and telecopier numbers of the protesting bidder, shall identify the contract to which the bid protest pertains, including the contract number and date that bids for such contract were received by the City, and shall identify the City department or division requesting bids. The bid protest shall identify and explain the factual and legal grounds for the protest, and shall include and attach any written materials that the protesting bidder wishes to have considered in determining the protest.

(c) At the time a bid protest is filed, the protesting bidder also shall make payment to the Buyer of a bid protest fee in the amount established by
resolution of the City Council, which fee shall be used to pay the City’s costs of processing the protest as provided herein.
(d) Any bid protest that is received by the Buyer after the time period specified above, or that is not accompanied by the bid protest fee, shall be untimely and invalid, and shall not be considered. (e) The protesting bidder and any other bidder(s) potentially affected by the bid protest shall be provided written notice of an Formatted: Indent: Left: 1.15", No bullets or
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informal hearing to be held not less than five working days after receipt of the bid protest. The hearing shall be conducted by the Director of the Department requesting bids or his or her authorized designee. The protesting bidder and any other bidder on the contract shall promptly provide any information requested by City staff prior to the informal hearing.

(f) As soon as practicable after the informal hearing, the Department Director or authorized designee shall issue a written response to the bid protest, including an explanation of the reason or reasons for the decision made. The written response shall be provided to the protesting bidder and any other bidder(s) potentially affected by the bid protest.

10.2 CONTRACTS OF $250,000 OR MORE

(a) The bid protest procedures specified in subsection 11.1, above, also shall apply to contracts of $250,000 or more, provided that nothing specified in this section shall limit or otherwise affect the City Council’s discretionary authority to accept, reject or modify the bid protest response issued by the Department Director or authorized designee or take any other action authorized under the City Charter or City Code.

(b)i. Subsection 11.2(a) shall not apply in cases where the Invitation for Bids provides that bid protests shall be filed in accordance with the provisions of Article X of Chapter 3.60 of the Sacramento City Code (commencing with City Code Section 3.60.460).

11. 10. MULTI-YEAR CONTRACTS
(a) No contract term shall extend beyond a total term, including extensions and renewals, of five years, provided that:

1. For contracts less than $250,000 (in total including extensions), a longer term may be approved if the department head or authorized designee determines that special circumstances require a total term of more than five years, and the City Manager or the City Manager’s authorized designee approves such extended term.

2. For contracts of $250,000 or more, a longer term may be approved by the City Council.

3. The total contract amount shall be determined based on the Formatted: List Paragraph, Right: 0.63", Numbered +
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compensation paid during the total term, including any extensions or renewals authorized by the contract.
(b) An extension or renewal of a contract must be authorized in the contract and must occur prior to expiration of the contract term to be valid. (c) Contracts must be authorized by the City Council when the total price of the contract, including any extended or renewed term(s) authorized by the contract terms, will be $250,000 or more.
(d) The contract price shall be determined includeing the cost to the City of tax, shipping and any other applicable charge.
(e) All multi-year contracts and contract extensions or renewals shall serve the best interest of the City. The decision whether to approve contract extensions or renewals shall consider factors such as market price adjustments, product and service availability, impact on cCity operations and the utilization of small and local businesses.

11. ESBE SMALL AND/OR DISADVANTAGED BUSINESS

PARTICIPATION AND REPORTING REQUIREMENTS

12. The City may adopt an ordinance or program which allows departments to give preference to small and /or disadvantaged businesses during bid or proposal evaluation.

Upon adoption of any such ordinance or program, the following will apply:

(a) Emerging and Small Business Enterprise (ESBE) Program requirements shall be met for all purchases as specified in the Procurement Guidelinesprocedures, unless these requirements are reduced or waived by the Office of Small Business Development (OSBD) Department Director, or an external funding source prohibits the use of such preferences or requires the use of other business enterprise requirements.
(b) Any modification or waiver of an ESBE applicable requirements must be requested in writing and approved by the OSBD Department Director prior to any advertisement or posting to the City’s website for Contracting Opportunities.
(c) Departments shall be responsible for meeting a n y r e l a t e d annual ESBE participation goals on a Department-wide basis.
(d) The OSBD Procurement Division shall compile data relative to ESBE program expenditures and utilization and submit periodic reports to the City Manager detailing contract amounts and ESBE participation rates. (e) 12. EQUAL BENEFITS CITY ORDINANCES

13. Various City Ordinances may apply to solicitations for goods. Solicitations for which such ordinances apply shall contain ordinance requirements and standard forms and declarations as available. The buyer is responsible for reviewing required forms and declarations and applying preferences as required during the evaluation process. (a) Equal Benefits Ordinance: Contracts exceeding $25,000 thresholds set in City Code section 3.54 are subject to applicable provisions of the City’s Non - Discrimination in Employee Benefits Code, codified at Chapter 3.54 of the City Code (commonly referred to as the Equal Benefits Ordinance, or EBO) and as Formatted: Justified
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outlined in API #53.
(b) All solicitations shall contain the City’s standard EBO Requirements. (c) All contracts to which the EBO applies shall contain an executed EBO Declaration of Compliance.

More detailed information concerning the EBO requirements is set forth in API # 53.
(b) Local Business Enterprise (LBE) Preference: Bidders or proposers qualifying as Local Businesses as defined in the City’s LBE Program may receive an evaluation preference as outlined in the Requirements of the LBE Program. (c) Sustainable Purchasing Policy Preference: Buyers must apply this preference as outlined in the AP4003 Sustainable Purchasing Policy, as applicable. (d) SB 1383 Reporting Requirements: Contracts for the purchase of recovered organic waste products as defined in SB 1383 sha ll be subject to additional reporting as outlined in the bill. Buyers are responsible for including reporting requirements in applicable solicitations and contracts. (e) Other State or Local Requirements as applicable.
(d) (f) When purchases utilize non-city funding (i.e. federal, state, or local gran t funds or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, City ordinances may not apply.

14. 13. SUPPLEMENTAL AGREEMENTS CONTRACT AMENDMENTS
(a) Supplemental agreementsContract Amendments may be approved by the City Manager or authorized designee, within the limits of approval authority specified in Article VI of City Code Chapter 3.04.02056 and this policy.

Supplemental agreementsAmendments exceeding these limits must be approved by the City Council.
(b) Delegations of the City Manager’s approval authority are specified in API #22 (Signing Authority).
(c) Any supplemental agreementamendments extending the term of a contract must be approved by the appropriate approval authority prior to expiration of the unextended term.

15. 14. PAYMENT METHODS AND PAYMENT TERMS

15.1 14.1 PAYMENT METHODS
(a) Original invoices shall be required for all payments. (b) No advance payments are allowed, unless approved by the Finance Department.

15.2 14.2 PAYMENT TERMS
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(a) Vendor invoices must contain all information required by the contract. (b) Payment terms are NET 30 days unless the vendor offers a prompt payment discount that is accepted by the City.
(c) All payment discounts shall be computed from the date of acceptance of suppliesgoods, or from the date an invoice is received, whichever occurs later.
(d) The Finance Department, Accounting Division must approve payment terms that are inconsistent with this policy.

16. 15. TRANSACTION NUMBER LOG

(a) Each Department shall establish and maintain a transaction number log for all Department solicitations for which an formal IFB or RFP (or other published solicitation) is issued. The transaction number log shall be organized based on solicitations initiated within each Department.

(b) A transaction number shall be assigned to each IFB or RFPpublished solicitation, and will be used to identify and track all related activity through requisition and payment, if applicable.

(c) Transaction numbers will be prominently displayed on the IFB or RFPpublished solicitation and on the City's web site for Contracting Opportunities (if applicable).
(d) Transaction numbers shall be created in accordance with procedures established by the Procurement ProceduresServices Division Manager or authorized designee.

17. 16. EMPLOYEE CONFLICT OF INTEREST/ETHICS
(a) City employees who are tasked with the responsibility of making procurement decisions, awarding contracts or making recommendations for contract award must discharge their duties impartially so as to assure fair competitive access to City procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the City’s procurement process. To achieve this purpose, it is essential that those performing procurement functions for the City observe this ethical standard and other City established standards that promote fairness, transparency, integrity and accountability in all procurement transactions.

Pursuant to the City’s adopted Conflict of Interest Code, no employee, officer, or agent of the City may participate in the solicitation, award or administration of a contract (including purchases made through other means – such as P-Card purchases or purchase orders) if they have a real or apparent conflict of interest. A real or apparent conflict of interest would arise if any prospective or existing consultant or contractor (or any subcontractor) considered for an award is:

a. An employee, officer, or agent of the City;
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b. A member of an employee’s, officer’s, or agent’s immediate family; c. A business partner of any employee, officer, or agent of the City; or d. An organization that employs any of the persons identified above, or with which any of the persons listed above has a financial or other interest, including an arrangement concerning prospective employment.

2. No employee, officer, or agent of the City who participates in the solicitation, award, or administration of a contract shall have, directly or indirectly, any other financial or personal interest in any contract made or influenced by the employee, officer, or agent in their official capacity.

3. No employee, officer, or agent of the City shall solicit or accept gratuities, favors, or anything of monetary value from potential or existing consultants, contractors, or parties to subcontracts. Any gifts received shall be reported consistent with the Fair Political Practices Commission’s requirements.

4. Violations of these standards may result in sanctions, or other forms of discipline up to and including termination as necessary, consistent with applicable Collective Bargaining Agreements, Memorandums of Understanding and the rules and regulations of the Civil Service Board, including:

a. Discipline Procedures & Review Standards:
https://records.cityofsacramento.org/ViewDoc.aspx?ID=s6tFBnt4W+IJi2YxhaLQ5nZ 3jqzJu8Xg
b. Civil Service Board Rules: https://www.cityofsacramento.org/- /media/Corporate/Files/HR/Divisions/Admin/CivilServiceBoardRules62012.pdf?la=e n
c. Collective Bargaining Agreements:
https://www.cityofsacramento.org/HR/Divisions/Labor-Relations/Labor-Agreements d. In addition, the City’s Conflict of Interest Code provides that employees may be subject to any form of discipline that is statutorily available for those participating in the selection, award or administration of a contract if a conflict of interest exists, as set forth in California Government Code, sections 81000- 91014.

INDEX

$250,000 . 5, 6, 7, 9, 10, 12, 13, 15
$25,000....................... 6, 10, 11, 16
$5,000........................................6, 7

E
Electrical ......................................10
Emergency ............................... 3, 8
Emergency Contract .....................3
Procurement Guidelines.2, 4, 5, 8,
11, 12, 13, 16
Prohibited .....................................5
Protest.................................. 14, 15
Purchase Order ............................4
Emerging and Small Business
2 2/3 Vote .........................................9
A
Addendum ....................................2
Advertising .......................... 6, 7, 9
Altered.........................................12
Award .................3, 5, 6, 12, 13, 14
B
Best Value.....................................2
Bid Security ................................13
Bids ............... 3, 6, 7, 9, 11, 12, 13
Blanket ........................................10
Blanket Purchase Orders .........10
Buyer .............................................2
C
City Charter ..................... 1, 2, 4, 7
City's Best Interest ........................ 8
Enterprise ......................... 3, 16
Equal Benefits .............................16
ESBE....................................... 3, 16
Evaluation ............................ 11, 12
Extension ................................... 15
I
Invitation For Bid IFB2, 3, 4, 6, 10,
11, 12, 13
Late Bids......................................11
Lease Option ...............................12
Lowest Bid ...................................12
Lowest Responsible Bidder .. 3, 12
Lowest Responsible Bidder ....... 3
Lowest Responsive And
Responsible Bidder ... 3, 6, 12
M
Market Price ..................................3
Mechanical ..................................10
R
Reject Bids .................................13
Renewal ......................................15
Request for Proposals (RFP)......4
Required .. 5, 6, 7, 8, 9, 10, 11, 13,
14, 17
Required .......................................7
Requires ................................ 7, 16
Responsive Bidder ......................4
Review ........................................10
Rfp................. 2, 4, 8, 9, 11, 12, 13

Sole ...........................................8, 9
Sole Brand ................................8, 9
Sole Source ..............................8, 9
Specifications ..............................4
Splitting ........................................5
Structural.....................................10
Supplement ............................ 4,16
Goods Supplies 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,
12 Supplies Goods ............. 1, 2, 4, 10
Suspend Competitive Bidding ...9
City-Wide Contract........................ 3
Competitive Bidding...................... 3
Competitive Bidding...................... 7
Multi-Year.............................15,16
Must .............. 4, 6, 8, 9, 13, 15, 16 T
Competitive Negotiation ..........8, 9 Transaction Number ................... 17 Computer Equipment ...............10
Conflict ................................ 14, 18
Contract . 3, 4, 5, 6, 7, 8, 9, 12, 13,
15, 16
N

Notice .........................................7 V
Contract Forms .........................13 Vehicle ................................... 6, 10 Contractor...................................... 3
Cooperative ....................... 8, 9, 10
P

Payment ................................. 3, 17
Vehicles and Related
Equipment .............................. 10
Payment ...................................17

D
Disclosure.................................... 11
Documentation ............................ 13
Payment Voucher..........................3
Performance Bonds ...................13
Performance Bonds .................13
Plumbing .................................... 10
Procurement ................................ 3
W

Waive ..........................................12
Will .....................5, 8, 9, 12, 13, 15

Procurement of Goods

FULL POLICY CONTENTS

Policy Statement
Purpose
Forms/Instructions
Procedures
Contacts

ADDITIONAL DETAILS
Definitions
Appendices
FAQ
Related Information
History

Policy Number: AP-4001
Document Type: Policy
Version: 1.2
Initially Adopted: February 2010
(Resolution 2010-084)

Update Effective: March 13, 2020

Responsible Department/Division:

Finance / Procurement Division
Policy Statement
This Administrative Policy sets forth City policies that apply to the procurement of goods.

This policy supplements requirements set forth in the Sacramento City Charter and City Code, including City Code Chapter 3.56.

Special Situations
Not Applicable
Exclusions
Not Applicable

Forms/Instructions

Procedures

Contacts
Department of Finance, Procurement Division
Office of the City Clerk
Office of the City Attorney

Definitions
Addendum
An amendment to a solicitation.

Best Value
Best value means the contract that, in the City’s estimation, provides the greatest overall benefit to the City.

Buyer
Either (1) A position or employee in the Procurement Division authorized by the City Manager or Director of Finance to administer the procurement of goods on behalf of one or more City Departments, or (2) a position or employee outside of the Procurement Division authorized by the applicable Department Director to administer the procurement of goods on behalf of the Department. A Buyer is not authorized to execute goods contracts on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

City-wide Contract
A contract administered by the Procurement Division to procure goods for multiple Departments.

Competitive Bidding
The process of soliciting bids and awarding a contract to the lowest responsive and responsible bidder.

Contract
Any binding contract document, regardless of what it is called, for the procurement of goods. References to a “contract” shall be deemed to include all documents attached to or incorporated in the contract.

Contractor
A person, firm or other entity that contracts with the City to provide goods.

Emergency Contract
A contract initiated when the public interest and necessity demand immediate procurement of goods to safeguard life, health, or property, to permit the continued conduct of City operations or services, or to mitigate further damage.

Federal Micropurchase Threshold
The dollar amount at which the federal government has determined no competition is required for purchasing.

Invitation for Bid or Request for Bid (IFB or RFB)
A written invitation or request for bids, for a contract to be awarded to the lowest responsible bidder.

Local Business
A business operating within the City of Sacramento or unincorporated County of Sacramento consistent with the City’s Local Business Enterprise Policy.

Payment Voucher
A document that records the accounting, distribution and payment of the invoice.

Procurement
Unless indicated otherwise by the context, this term is intended to include all functions that pertain to obtaining the goods, including the preparation of specifications and requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

Procurement Procedures
Written procedures developed by the Procurement Division that specify more detailed operational guidance for City procurement, consistent with applicable provisions of the City Charter, City Code and Administrative Policy Instructions (APIs).

Purchase Order
A written authorization for a vendor to supply goods or services at a specified price and over a specified period of time. In the absence of a contract executed by the City and Contractor, acceptance of the purchase order shall constitute a binding contract. The use of a purchase order instead of a fully executed contract is subject to approval of the Procurement Division, the City Attorney’s Office, and the Risk Division.

Request for Proposals (RFP)
A written request for proposals to provide specified supplies for a contract to be awarded on a basis other than the lowest responsible bidder.

Request for Qualifications (RFQ)
A written request for the submission of qualifications to provide specified nonprofessional services. RFQs are used to identify contractors with adequate qualifications to provide the specified services.

Responsive Bidder
A bidder whose bid meets all of the bidding requirements in the solicitation.

Specifications
A complete description of the physical and/or functional characteristics and quantity of the goods to be provided. Specifications may also include a description of any requirement for inspecting, testing or preparing a material item for delivery. Specifications shall be included with the solicitation.

Amendment
A modification to the terms of a contract.

Goods
Any supplies, equipment, materials or other tangible items to be purchased, rented, leased or otherwise acquired by the City, including materials for the maintenance or repair of any street, sewer, or water work.

Definitions set forth in Chapter 3.56 of the City Code also apply.

Appendices
None
Frequently Asked Questions
Related Information
 City Charter-Article XIV Public Contracts and Supplies  City Code Chapter 3.04, 3.54, 3.56, , 3.60 & 3.80
 Resolution No. 2010-084
 Administrative Policy Regarding Delegation of Signature Authority

Document History
Amended: March 13, 2020
Supersedes: API # 1 – Procurement of Supplies and Non-Professional Services Adopted: February 2010

Policy

GENERAL REQUIREMENTS APPLICABLE TO ALL PURCHASES

(a) The City Code prohibits splitting or separating into smaller units any requirement for goods, for the purpose of evading the applicable requirements for competitive bidding or City Council award. The City Code defines this prohibited practice as reducing the amount of goods to be furnished under circumstances where there is a reasonable knowledge that the same goods will be required within the same budgetary term, that there are funds available for such additional goods, and the purpose is to knowingly avoid formal competitive bidding.

(b) To the extent practical, Departments shall include representatives from the Procurement Division in Departmental meetings that discuss long- range planning for the procurement of goods and logistical goods requirements, and whenever possible:

1. Departments shall use City-wide contracts, and

2. Departments and the Procurement Division shall work together to plan annual requirements for goods, in order to maximize economic efficiencies, and to avoid impermissible contract splitting.

(c) The Procurement Division shall direct and manage the procurement process for all goods defined as City-wide goods. Authority for the management of a City-wide contract may be delegated by the Procurement Manager.

(d) The solicitation and award procedures specified in this policy for the purchase of goods vary depending on the amount of the procurement. For purposes of determining which solicitation and award procedures apply:

1. When a City-wide contract is used, the procurement amount is the total amount of the City-wide contract.

2. When a City-wide contract is not used, the procurement amount for a specific purchase is the sum of:
a) the total amount to be spent over the potential life of the contract, or b) if no contract exists, the total amount that the Department will pay for the same goods in the same fiscal year.

3. The determination of what constitutes the “same goods” under subsection 2, above, shall be made by the Procurement Division Manager or their authorized designee.

(e) Contracts less than $250,000 do not require the approval of the City Council and may be executed on behalf of the City by the City Manager or the City Manager’s designee. Delegations of approval authority are specified in API # 22 (Signing Authority). In the event of a declared emergency pursuant to the City Code Chapter 2.116, the City Manager or the City Manager’s designee may supplement an existing contract by up to $249,999.99 (without regard to the original contract value) for transactions related to the emergency response.

(g) When purchase of goods includes onsite delivery, installation or training services, general liability and workers compensation insurance (including a waiver of subrogation) shall be required. If a vehicle is used to deliver the goods or otherwise perform the services, auto liability insurance shall be required. If goods will be delivered by a common carrier and no vehicle will otherwise be used, auto liability insurance shall not be required.

(i) When purchases utilize non-city funding (i.e. federal, state, or local grand funds or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, special terms may be required in the solicitation and/or contract. Buyers must consult with the City Attorney’s office to determine what additional or different terms may apply based on the funding source prior to issuing a solicitation.

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.1 GOODS PURCHASES OF $10,000 OR LESS (MICROPURCHASING)

(a) Micropurchasing (purchases of $10,000 or less) does not require competitive bidding and the provider of the goods may be selected at the discretion of the Buyer. No minimum number of price quotations is required.
(b) The City Manager may approve adjustments to the threshold for micropurchasing, but may not exceed the Federal Micropurchase Threshold.
(c) Price quotations shall be written1.
(d) Although not required, if price quotations are requested from more than one prospective contractor, the same information must be provided to all contractors and they must be allowed adequate time to respond. (e) The City’s Local Business Enterprise (LBE) Policy requirements do not apply to micropurchases, but contracting with Local Businesses is encouraged.

1.2 GOODS PURCHASES OF MORE THAN $10,000 UP TO AND INCLUDING $100,000 (INFORMAL BIDDING)
(a) The Buyer shall be responsible for soliciting bids from at least three prospective contractors unless the Buyer documents that the goods are not reasonably available from at least three contractors.
(b) In addition to the application of the 5% LBE Preference, as described in the City’s Local Business Enterprise Policy2 At least one of the bids solicited must be from a local business unless the Buyer documents that the goods are not

1 If quotations are obtained over the phone, the buyer must document the information received utilizing a standard form provided by the Procurement Division.
2 While the City’s LBE policy does not apply to federally funded contracts, the requirement to soli cit at least one bid from a local business as part of the informal bidding process does apply to federally funded contracts as it is not a prohibited “preference.”
reasonably available from a local business.
(c) Bids must be written3. All prospective contractors contacted must be given the same information and the same amount of time to respond. (d) Contract award shall be made to the lowest responsive and responsible bidder.
(e) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this policy.

1.3 GOODS PURCHASES OF MORE THAN $100,000 AND LESS THAN $250,000 (FORMAL COMPETITIVE BIDDING)
(a) The issuance of a formal Invitation for Bids (IFB) or Request for Bids (RFB) and advertising on the City’s website for Contracting Opportunities is required.
(b) Bids must be obtained in writing, and all prospective vendors must be given the same information and the same time to respond. (c) The minimum time required for advertising an IFB or RFB on the City’s website for Contracting Opportunities is ten calendar days. The length of the advertisement period should be appropriate to the industry standards for the particular goods, to achieve the maximum competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(d) Bids shall be received and opened by the Buyer.
(e) Contract award shall be made to the lowest responsive and responsible bidder.
(f) Notice of contractor selection shall be provided to all bidders as soon as reasonably practical to trigger the protest period.
(g) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is not Required) of this policy.

1.4 GOODS PURCHASES OF $250,000 OR MORE (FORMAL COMPETITIVE BIDDING) (a) The issuance of a formal IFB or RFB and advertising on the City’s website for Contracting Opportunities is required.
(b) Bids must be obtained in writing and all prospective bidders must be given the same information and same time to respond.
(c) The minimum time required for advertising solicitations on the City’s website for Contracting Opportunities is ten calendar days. The length of the advertisement period should be appropriate to the industry standards for the particular goods to achieve maximum competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.

3 If quotations are obtained over the phone, the buyer must document the information receive d utilizing a standard form provided by the Procurement Division.
(d) A public bid opening by the City Clerk or designee shall be conducted. (e) Contracts of $250,000 or more must be awarded by the City Council. (f) A notice of intent to award shall be provided to all bidders as soon as reasonably practical to trigger the bid protest period.

(g) Award will be made to the lowest responsive and responsible bidder, unless a different action is taken by the City Council pursuant to the City Charter or City Code.
(h) Exceptions to the above requirements are provided for in Section 2 (when Competitive Bidding is not Required) of this policy.

2. WHEN COMPETITIVE BIDDING IS NOT REQUIRED

2.1 PURCHASES OF MORE THAN $10,000 AND LESS THAN $250,000 (a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s Office if using non-city funds. (b) The bidding requirements specified in Section 1 (Solicitation Thresholds and Requirements) of this policy do not apply if any of the following conditions are met:

2. The contractor awarded a contract fails to enter into the contract. If this occurs, the next lowest bidder, if there is one, shall be awarded the contract, if such bidder’s price is acceptable. If there is no such bidder, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

3. It is in the City's best interest to use a different procurement method. This justification must be documented by the Buyer, and the request to use a different procurement method must be approved by the applicable Department Director and Procurement Manager, in accordance with applicable Procurement procedures.

Examples of alternative procurement methods include:
(i) Competitive negotiation: The Buyer negotiates with two or more suppliers to obtain a contract for the lowest price. Documentation shall be maintained of all negotiation discussions, terms, and offers. (ii) Sole source/sole brand procurement: After conducting a good faith review of available sources, the Buyer determines there is only one reasonable and practicable source for the required goods. (1) The following are other examples of circumstances that could necessitate a sole source procurement:
• When the goods are only available from a sole or single source based on that source’s unique capability or intellectual property rights. A requirement for a particular proprietary item does not justify a sole source procurement if more than one potential bidder or offeror for that item is reasonably and practicably available.
• When, in the case of a follow-on contract for highly specialized goods, it is likely that award to another contractor will result in: (1) substantial duplication costs that are no expected to be recovered through competition; or (2) unacceptable delays, the cost of which will exceed the costs expected to be recovered through competition. • Compatibility of equipment, accessories, or replacement parts is the paramount consideration.
• A sole supplier’s item is needed for trial use or testing or is to be procured for resale.
(2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of supply will be suitable or acceptable to meet the need.

Documentation shall be maintained of all negotiation
discussions, terms, and offers.
(iii) Use of a Request For Proposal (RFP) process: A RFP process is used to allow the award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors in addition to price, such as the need for more than one contractor if authorized.

4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

5. Cooperative agreements or piggybacking: The Buyer may obtain goods through competitively procured cooperative purchasing agreements or by piggybacking off of other public agencies’ competitive contracts without separate competitive bidding by the City.. Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

6. Surplus Goods: Under City Code Section 3.80, when it is advantageous to the City, the City Manager may direct the purchase of surplus goods from the United States Government, or any agency thereof, or from the state of California, or any agency thereof, or any public body, without separate competitive bidding.

2.2 PURCHASES OF $250,000 OR MORE
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s office if non-City funding will be used.
(b) These exceptions do not affect the requirement for City Council to approve of all contracts for $250,000 or more.
(c) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interests of the City. Questions concerning the applicability of competitive bidding requirements should be directed to the City Attorney’s Office.
(d) Under City Code Section 3.56.230, competitive bidding is not required for purchases of $250,000 or more under the following circumstances:

1. After advertising for bids as required, no bids are received or all bids received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

2. The contractor awarded a contract fails to enter into the contract. If this occurs the next lowest bidder, if there is one, shall be awarded the contract, if such bidder’s price is acceptable. If there is no such bidder, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

1. The following are other examples of circumstances that could necessitate a sole source procurement:
 When the goods are only available from a sole or
single source based on that source’s unique capability
or intellectual property rights. A requirement for a
particular proprietary item does not justify a sole source procurement if more than one potential bidder or
offeror for that item is reasonably and practicably
available.
 When, in the case of a follow-on contract for services, it is likely that award to another contractor will result in:
(1) substantial duplication costs that are not expected to be recovered through competition; or (2)
unacceptable delays, the cost of which will exceed the
costs expected to be recovered through competition.
 Compatibility of equipment, accessories, or
replacement parts is the paramount consideration.
 A sole supplier’s item is needed for trial use or testing or is to be procured for resale.

2. All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of goods will be suitable or acceptable to meet the need.

Documentation shall be maintained of all negotiation
discussions, terms, and offers.

4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

5. Cooperative purchase agreements or piggybacking: The Buyer may by obtain goods through a competitively procured cooperative purchasing agreements or piggybacking off of other public agencies’ competitive contracts without separate competitive bidding by the City.

6. Surplus goods: Under City Code Section 3.56.250, when it is advantageous to the City, the City Manager, on approval by the City Council, may direct the purchase of surplus goods from the United States Government, or any agency thereof, or from the state of California, or any agency thereof, or any public body, without separate competitive bidding.

3. ITEMS REQUIRING REVIEW PRIOR TO PURCHASE
(a) Certain purchases require review by other City departments or divisions before a purchase can be made. Such reviews are intended to ensure consistency and conformity with City standards. Unless otherwise specified, these reviews are required regardless of the purchase amount. Review of proposed goods by the noted departments/divisions prior to contracting for such goods is required as follows:

1. Department of Information Technology
a. Computer equipment, software, and other information technology items
b. Radios, telephones, cell phones, pagers, and other communications

2. Procurement Division Manager or authorized designee
a. Cooperative purchase agreements — for less than $250,000 contracts

3. Fleet D i v i s i o n s
a. Vehicles and related equipment that require at least two of the following (or other criteria set forth in Fleet’s
Purchasing/Budgeting policies):
(i) fuel to be operated (including electricity)
(ii) tires or tracks
(iii) license/titling with DMV
(iv) mounting to fleet equipment that use fuel
(v) an operator to ride on to operate

4. Facilities Division (in consultation with the department in which the facilities reside)
a. Purchases for goods at facilities or sites that require electrical, mechanical, plumbing, or structural changes (except facilities or sites within the street right of way)

4. SOLICITATION METHODS

4.1 INVITATION FOR BID (IFB) / REQUEST FOR BID (RFB)
(a) IFBs o r R F B s are required for the procurement of goods costing more than $100,000, except as otherwise provided in Section 2 (When Competitive Bidding is Not Required) of this policy. This does not preclude the use of IFBs or RFBs for procurements below this threshold. (b) The Buyer shall bear the overall responsibility for the preparation of bid specifications, utilizing a standardized IFB/RFB format, as provided by the Procurement Division or otherwise approved by the City Attorney’s office.

4.2 OTHER PROCUREMENT METHODS
(c) Alternative procurement methods to IFB or RFB should only be used where appropriate and practical, and as authorized under Section 2 (When Competitive Bidding is not Required) of this policy.
(d) Requests for Proposals (RFPs) must meet the requirements set forth in AP 4101 – Non-Professional Services, and applicable Procurement procedures, unless an alternative to the standard RFP process is specifically approved pursuant to Section 2.
(e) Request for Qualifications (RFQ) must meet the requirements set forth AP 4101 – Non-Professional Services and applicable Procurement procedures, unless an alternative to the standard RFQ process is specifically approved pursuant to Section 2.

5. AMENDING OR CANCELING A SOLICITATION
(a) An addendum shall be used to modify a solicitation, and shall be issued not less than 3 working days before the deadline specified for receipt of bids or proposals. Addendums extending the deadline or canceling the solicitation may be issued less than 3 working days before such date if necessary.

(b) The minimum components required for addendums are identified in applicable Procurement procedures.
(c) The addendum shall be published using the same media used to advertise the original solicitation, including the City website. Addendums shall be sent to all prospective bidders/proposers known to have received a solicitation.

6. PUBLIC DISCLOSURE
(a) Solicitations for purchases of $100,000 or more shall be available for public inspection at the issuing Department and shall be posted on the City website. (b) After bid opening, bids shall be made available in response to a request for public inspection, in accordance with the California Public Records Act. (c) Proposals shall be made available in response to a request for public inspection a f t e r t h e s o l i c i t a t i o n p r o c e s s i s c o m p l e t e , in accordance with the California Public Records Act.
(d) If the bidder or proposer designates any portion of its bid as proprietary or confidential, or any other public disclosure issues are presented, the Buyer shall consult with the City Attorney’s Office prior to any response or disclosure.

7. ACCEPTANCE AND EVALUATION OR REJECTION OF BIDS OR PROPOSALS

7.1 LATE BIDS OR PROPOSALS
(a) A bid or proposal is late if it is received at the location designated in the solicitation or after the deadline specified in the solicitation. (b) A late bid or proposal shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.
(c) A late bid or proposal shall not be opened, except (if necessary), for identification purposes. Delivery and return of late bids or proposals shall be handled in the following manner:
(d) If delivered in person, a late bid or proposal shall be rejected and returned to the person delivering it (failure to reject it at the time of delivery does not constitute acceptance);

1. If not delivered in person, a late bid or proposal shall be returned by certified mail;

2. Bidders or proposers submitting late bids or proposals that will not be considered for award shall be notified as soon as practicable.

7.2 GENERAL REQUIREMENTS FOR ACCEPTANCE AND EVALUATION
(a) Bids or proposals shall not be altered or corrected after opening, except for minor irregularities as specified in the solicitation document and/or the City Code. A bid or proposal may be withdrawn by the bidder only if authorized in the solicitation or under State law.
(b) Only the City Council has the authority to waive minor irregularities for bids or proposals of $250,000 or more. For bids or proposals valued less than $250,000, the City Manager or designee has the authority to waive minor irregularities.
(c) No criteria shall be used in bid or proposal evaluations that are not referenced in the solicitation or in applicable provisions of the City Code or other applicable laws or regulations.
(d) When leasing is proposed, a lease cost vs. buy cost analysis shall be conducted as part of the bid or proposal evaluation; if this analysis shows that buying the goods is a lower cost option, a written justification for selecting the lease option shall be prepared and approved by the Buyer for consideration by the approving authority prior to contract approval. (e) When an RFP process is used (if authorized instead of an IFB/RFB, as noted above), no discussions for any purpose other than administrative clarification may be conducted with proposers after submission of proposals, except during the presentation phase, if any.

7.3 DETERMINATION OF LOWEST BID
(a) For an IFB or RFB, the contract shall be awarded to the lowest responsive and responsible bidder. Deferred cost factors, such as life cycle cost and disposal cost, may be considered in determining the bid amount, but only if specifically provided in the solicitation.
(b) If a bidder that otherwise would have been the lowest responsible bidder is determined to be non-responsible, after consulting with the City Attorney’s office, the Buyer shall prepare a written determination of non-responsibility, setting forth the basis of the finding of non-responsibility and advising the bidder that it may request a hearing on the matter, and shall send such determination to the bidder by certified mail.
(c) If there are two or more low responsive bids from responsible bidders that are identical in price, quality and service, and both meet all the requirements and criteria set forth in the IFB or RFB, then award, if made, shall be made by a drawing of lots.

7.4 REJECTION OF BIDS
(a) For contracts less than $250,000, the Department Director or the Buyer shall have the authority to reject a bid, after consulting with the City Attorney’s office.
(b) For contracts of $250,000 or more, only the City Council has the authority to reject any valid bid.

7.6 CONTRACT FORM AND DOCUMENTATION
(a) For all levels of contract award, a current supplies contract form, as approved by the City Attorney’s Office shall be executed prior to starting any services. Current citywide approved forms are available on the Procurement page on the City’s intranet.
(b) For contracts of $250,000 or more, the contract must be signed by the contractor and the City Attorney’s Office prior to City Council award of the contract.
(c) For all levels of contract award, contract documents must be fully executed (obtain all signatures and provide any required contract documents) prior to performance of the contract.

8. BID SECURITY/BONDS AND INSURANCE

8.1 BID SECURITY
(a) The Buyer shall determine whether to require bid security, consistent with the level of risk associated with the purchase, and the requirement shall be specified in the solicitation.
(b) Bids received without the required security shall be considered non- responsive and will be rejected.
(c) Bid security shall be returned to unsuccessful bidders after a successful bidder is selected and awarded the contract.
(d) (Bid security may be forfeited and applied as specified in City Code Section

3.56.150.

8.2 PERFORMANCE BONDS
(a) The Buyer shall determine whether to require a performance bond, consistent with the level of risk associated with the purchase, and the requirement shall be specified in the IFB.
(b) Performance bond requirements shall be described in the solicitation, and shall conform to applicable Procurement procedures.
(c) Performance bonds shall be accepted only from sureties admitted and duly authorized to transact business in the State of California, and shall be approved as to form by the City Attorney’s office.
(d) Failure to submit the required bond within the time specified in the notice of award may be just cause for annulment of the award and forfeiture of the bidder's bid security.

8.3 INSURANCE
(a) All insurance requirements specified in the current standard contract form must be satisfied prior to approval and execution of the contract by the City, unless otherwise approved by Risk Management.
(b) Additional insurance requirements may apply depending upon the type of goods being purchased. Departments must consult with the Risk Division on any additional insurance requirements to be added to solicitations and/or contracts.
(c) All changes to contractual provisions including insurance requirements must be approved by the City Attorney’s Office and the Department Director prior to contract approval and execution by the City.

9. BID PROTEST
Bidders or proposers responding to a solicitation on a contract may file a bid protest in accordance with policies adopted by the City Manager’s office and posted on the City’s website.

10. MULTI-YEAR CONTRACTS
(a) No contract term shall extend beyond a total term, including extensions and renewals, of five years, provided that:

2. For contracts of $250,000 or more, a longer term may be approved by the City Council.

3. The total contract amount shall be determined based on the compensation paid during the total term, including any extensions or renewals authorized by the contract.
(b) An extension or renewal of a contract must be authorized in the contract. (c) Contracts must be authorized by the City Council when the total price of the contract, including any extended or renewed term(s) authorized by the contract terms, will be $250,000 or more.
(d) The contract price shall include the cost to the City of tax, shipping and any other applicable charge.
(e) All multi-year contracts and contract extensions or renewals shall serve the best interest of the City. The decision whether to approve contract extensions or renewals shall consider factors such as market price adjustments, product and service availability, impact on City operations and the utilization of small and local businesses.

11. SMALL AND/OR DISADVANTAGED BUSINESS PARTICIPATION AND REPORTING

REQUIREMENTS
The City may adopt an ordinance or program which allows departments to give preference to small and/or disadvantaged businesses during bid or proposal evaluation. Upon adoption of any such ordinance or program, the following will apply:

(a) Program requirements shall be met for all purchases as specified in Procurement procedures, unless these requirements are reduced or waived by the Department Director, or an external funding source prohibits the use of such preferences or requires the use of other business enterprise requirements.
(b) Any modification or waiver of applicable requirements must be requested in writing and approved by the Department Director prior to any advertisement or posting to the City’s website for Contracting Opportunities.
(c) Departments shall be responsible for meeting a n y r e l a t e d annual participation goals on a Department-wide basis.
(d) The Procurement Division shall compile data relative to program expenditures and utilization and submit periodic reports to the City Manager detailing participation rates.

12. CITY ORDINANCES
Various City Ordinances may apply to solicitations for goods. Solicitations for which such ordinances apply shall contain ordinance requirements and standard forms and declarations as available. The buyer is responsible for reviewing required forms and declarations and applying preferences as required during the evaluation process. (a) Equal Benefits Ordinance: Contracts exceeding thresholds set in City Code section 3.54 are subject to applicable provisions of the City’s Non - Discrimination in Employee Benefits Code, codified at Chapter 3.54 of the City Code (commonly referred to as the Equal Benefits Ordinance, or EBO) and as outlined in API #53.
(b) Local Business Enterprise (LBE) Preference: Bidders or proposers qualifying as Local Businesses as defined in the City’s LBE Program may receive an evaluation preference as outlined in the Requirements of the LBE Program. (c) Sustainable Purchasing Policy Preference: Buyers must apply this preference as outlined in the AP4003 Sustainable Purchasing Policy, as applicable. (d) SB 1383 Reporting Requirements: Contracts for the purchase of recovered organic waste products as defined in SB 1383 shall be subject to additional reporting as outlined in the bill. Buyers are responsible for including reporting requirements in applicable solicitations and contracts. (e) Other State or Local Requirements as applicable.
(f) When purchases utilize non-city funding (i.e. federal, state, or local grant funds or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, City ordinances may not apply.

13. CONTRACT AMENDMENTS
(a) Contract Amendments may be approved by the City Manager or authorized designee, within the limits of approval authority specified in City Code Chapter 3.04.020 and this policy. Amendments exceeding these limits must be approved by the City Council.
(b) Delegations of the City Manager’s approval authority are specified in API #22 (Signing Authority).
(c) Any amendments extending the term of a contract must be approved by the appropriate approval authority prior to expiration of the unextended term.

14. PAYMENT METHODS AND PAYMENT TERMS

14.1 PAYMENT METHODS
(a) Original invoices shall be required for all payments. (b) No advance payments are allowed, unless approved by the Finance Department.

14.2 PAYMENT TERMS
(a) Vendor invoices must contain all information required by the contract. (b) Payment terms are NET 30 days unless the vendor offers a prompt payment discount that is accepted by the City.
(c) All payment discounts shall be computed from the date of acceptance of goods, or from the date an invoice is received, whichever occurs later. (d) The Finance Department, Accounting Division must approve payment terms that are inconsistent with this policy.

15. TRANSACTION NUMBER LOG

(a) Each Department shall establish and maintain a transaction number log for all Department solicitations for which a formal IFB or RFP (or other published solicitation) is issued. The transaction number log shall be organized based on solicitations initiated within each Department.

(b) A transaction number shall be assigned to each published solicitation and will be used to identify and track all related activity through requisition and payment, if applicable.

(c) Transaction numbers will be prominently displayed on the published solicitation and on the City's website for Contracting Opportunities (if applicable).
(d) Transaction numbers shall be created in accordance with Procurement Procedures.

16. EMPLOYEE CONFLICT OF INTEREST/ETHICS

a. An employee, officer, or agent of the City;
b. A member of an employee’s, officer’s, or agent’s immediate family; c. A business partner of any employee, officer, or agent of the City; or d. An organization that employs any of the persons identified above, or with which any of the persons listed above has a financial or other interest, including an arrangement concerning prospective employment.

1. No employee, officer, or agent of the City who participates in the solicitation, award, or administration of a contract shall have, directly or indirectly, any other financial or personal interest in any contract made or influenced by the employee, officer, or agent in their official capacity.

2. No employee, officer, or agent of the City shall solicit or accept gratuities, favors, or anything of monetary value from potential or existing consultants, contractors, or parties to subcontracts. Any gifts received shall be reported consistent with the Fair Political Practices Commission’s requirements.

3. Violations of these standards may result in sanctions, or other forms of discipline up to and including termination as necessary, consistent with applicable Collective Bargaining Agreements, Memorandums of Understanding and the rules and regulations of the Civil Service Board, including:

INDEX

$250,000 . 5, 6, 7, 9, 10, 12, 13, 15
$25,000 ..................... 6, 10, 11, 16
$5,000 ..................................... 6, 7

E
Electrical .................................... 10
Emergency .............................. 3, 8
Emergency Contract .................... 3
Procurement Guidelines.2, 4, 5, 8,
11, 12, 13, 16
Prohibited .................................... 5
Protest ................................. 14, 15
Purchase Order ........................... 4
Emerging and Small Business
2 2/3 Vote ....................................... 9
A
Addendum ................................... 2
Advertising ........................... 6, 7, 9
Altered ....................................... 12
Award ................ 3, 5, 6, 12, 13, 14
B
Best Value ................................... 2
Bid Security ............................... 13
Bids ............... 3, 6, 7, 9, 11, 12, 13
Blanket ...................................... 10
Blanket Purchase Orders ......... 10
Buyer ........................................... 2
C
City Charter ..................... 1, 2, 4, 7
City's Best Interest ....................... 8
Enterprise ......................... 3, 16
Equal Benefits ........................... 16
ESBE ..................................... 3, 16
Evaluation ............................ 11, 12
Extension ................................... 15
I
Invitation For Bid IFB2, 3, 4, 6, 10,
11, 12, 13
Late Bids ................................... 11
Lease Option ............................. 12
Lowest Bid ................................. 12
Lowest Responsible Bidder ... 3, 12
Lowest Responsible Bidder ......... 3
Lowest Responsive And
Responsible Bidder ..... 3, 6, 12
M
Market Price ................................ 3
Mechanical ................................ 10
R
Reject Bids ................................ 13
Renewal .................................... 15
Request for Proposals (RFP) ....... 4
Required .. 5, 6, 7, 8, 9, 10, 11, 13,
14, 17
Required ...................................... 7
Requires ................................ 7, 16
Responsive Bidder ...................... 4
Review ...................................... 10
Rfp ................. 2, 4, 8, 9, 11, 12, 13

Sole ......................................... 8, 9
Sole Brand .............................. 8, 9
Sole Source ............................. 8, 9
Specifications .............................. 4
Splitting........................................ 5
Structural ................................... 10
Supplement ............................ 4,16
Goods1, 2, 3, 4, 5, 6, 7, 8, 9, 10,
12 Goods............................ 1, 2, 4, 10
Suspend Competitive Bidding ...... 9
City-Wide Contract ...................... 3
Competitive Bidding ..................... 3
Competitive Bidding ..................... 7
Multi-Year.............................15,16
Must .............. 4, 6, 8, 9, 13, 15, 16 T
Competitive Negotiation ..........8, 9 Transaction Number .................. 17 Computer Equipment ............... 10
Conflict ................................ 14, 18
Contract . 3, 4, 5, 6, 7, 8, 9, 12, 13,
15, 16
N

Notice .........................................7 V
Contract Forms .........................13 Vehicle................................... 6, 10 Contractor .................................... 3
Cooperative ....................... 8, 9, 10
P

Payment ................................ 3, 17
Vehicles and Related
Equipment ............................ 10
Payment ...................................17

D
Disclosure .................................. 11
Documentation .......................... 13
Payment Voucher ........................ 3
Performance Bonds .................. 13
Performance Bonds ................ 13
Plumbing ................................... 10
Procurement ................................ 3
W

Waive ........................................ 12
Will .................... 5, 8, 9, 12, 13, 15

Non-Professional Services

FULL POLICY CONTENTS

Policy Statement
Purpose
Forms/Instructions
Procedures
Contacts

ADDITIONAL DETAILS
Definitions
Appendices
FAQ
Related Information
History

Policy Number: AP-4101
Document Type: Policy
Version: 1.2
Initially Adopted: February 2010
(Resolution 2010-084

Update Effective: March 13, 2020

Responsible Department/Division:

Finance / Procurement Division
Policy Statement
This Administrative Policy sets forth City policies that apply to contracting for Non- Professional Services and supplements requirements set forth in the Sacramento City Charter and City Code Chapter 3.56.

Special Situations
Not Applicable
Exclusions
Not Applicable

Purpose
To ensure that all contracting functions are performed in compliance with applicable Federal, State and City laws, regulations, ordinances and policies, to ensure the uniform and consistent application of the procurement process, and to ensure fairness, open competition, and competitive pricing.

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Forms/Instructions
• Non-Professional Services Agreement (see intranet)

Procedures

Contacts
Department of Finance, Procurement Division
Office of the City Clerk
Office of the City Attorney

Definitions
Addendum
An amendment to a solicitation.n invitation for bid (IFB) or request for proposals (RFP)

Best Value
Best value means the contract that, in the City’s estimation, provides the greatest overall benefit to the City.

Bid Scope of Work or sSpecifications
Complete directions, provisions and requirements for the performance of non- professional services. Bid Scope of Work or sSpecifications shall be included with the IFBsolicitation.

City-wide Contract
A contract administered by the Procurement Services Division to procure non- professional services for multiple Departments.

Competitive Bidding
The process of soliciting bids and awarding a contract to the lowest responsive and responsible bidder.

Competitive Solicitation
The process of soliciting bids and awarding a contract on the basis of best value when factors other than cost must be considered.

Contract
Any binding contract document, regardless of what it is called, for the procurement of suppliesnon-professional services . References to a “contract” shall be deemed to include all documents attached to or incorporated in the contract.

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Contracts Manager
A position or employee authorized by the Department Director to administer the contracting process for non-professional services on behalf of the Department. A Contracts Manager is not authorized to execute non-professional service contracts on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

Contractor
A person, firm or other entity that contracts with the City to perform non-professional services.

Emergency Contract
A contract initiated when the public interest and necessity demand immediate procurement of non-professional services to safeguard life, health, or property, to permit the continued conduct of City operations or services, or to mitigate further damage.

Emerging and Small Business Enterprise (ESBE) Requirements The procurement requirements and procedures imposed pursuant to the program established by the City Council to promote and provide incentives for the participation of emerging and small business enterprises in City contracts.

Federal Micropurchase Threshold
The dollar amount at which the federal government has determined no competition is required for purchasing.

Invitation for Bid (IFB) or Request for Bid (RFB)
A written notice issued to potential bidders that includes bid specifications and specifies, among other things, the procedures for bid submittal and place, date and time of bid opening.invitation or request for bids, for a contract to be awarded to the lowest responsibly bidder.

Local Business
A business operating within the City of Sacramento or unincorporated County of Sacramento consistent with the City’s Local Business Enterprise Policy.

Master On-Call Services Contract
A contract for on- call services for a specified term.

Non-professional service
A service of a non-professional character of any type, description or variety such as:
tree trimming services, janitorial services, appliance repair, pest control, window washing, canvas awning repairs, street/parking lot sweepers, pressure washing, carpet cleaning, repair services for office machines and equipment or automotive vehicles, landscape maintenance services, and work performed by a licensed contractor that does not constitute “public project” work under City Code Chapter 3.5660, such as sidewalk maintenance and repair.

Payment Voucher
A document that records the accounting, distribution and payment of the invoice.

Procurement
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The term is intended to include all functions that pertain to obtaining the service or work, including the preparation of specifications and requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

Procurement GuidelinesProcedures
Written guidelines procedures developed by the Procurement divisionCity staff and approved by the City Manager that specify more detailed operational requirements guidance for City procurement, consistent with applicable provisions of the City Charter City Code and Administrative Policy Instructions (APIs).

Project Manager
The employee designated as the project manager responsible for administering the performance of a contract for non-professional services. A Project Manager is not authorized to execute non-professional service contracts on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

Purchase Order
A written authorization for a contractor to supply goods or services at a specified price and over a specified period of time. In the absence of a contract, Aacceptance of the purchase order shall constitutes a binding contract. The use of a purchase order instead of a fully executed contract is subject to approval by the Procurement Division, the City Attorney’s Office, and the Risk Division.

Request for Proposals (RFP)
A written request for proposals to provide specified nonprofessional services for a contract that will be awarded on a basis other than the lowest responsible bidto provide non- professional services if permitted under Section 4 (Request for Proposal) below.

Request for Qualifications (RFQ)
A written request for the submission of qualifications to provide specified nonprofessional services. RFQs are used to identify contractors with adequate qualifications to provide the specified services.

Responsive Bidder
A bidder whose bid meets all of the bidding requirements in the IFB solicitation.

Statement of Qualification
A written document submitted by a potential contractor in response to an RFQ.

Supplemental AgreementAmendment

An amendmentmodification to the terms of a contract for non-professional services that must be approved in accordance with the provisions of Article VI of Chapter 3.56 of the City Code.

Definitions set forth in Chapter 3.56 of the City Code also apply.

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Appendices
• City Charter-Article XIV Public Contracts and Supplies • City Code 3.56
Frequently Asked Questions
Related Information
• City Charter-Article XIV Public Contracts and Supplies • City Code 3.04, 3.54, 3.56, 3.58, 3.60, 3.62
• Resolution No. 2010-084
• Administrative Policy (Signing Authority # 22)
• Procurement Guidelines
• Procurement Ethics and Standards of Conduct

Document History
Amended: March 13, 2020
Supersedes: API # 1 – Procurement of Supplies and Non-Professional Services Adopted: February 2010

Policy

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.1 GENERAL REQUIREMENTS APPLICABLE TO ALL NON-PROFESSIONAL

SERVICES
(a) The City Code prohibits splitting or separating into smaller units any requirement for non-professional services for the purpose of evading the applicable requirements for competitive bidding andor City Council award that applyto contracts of $250,000 or more. The City Code defines this prohibited practice as reducing the amount of non-professional services to be furnished under circumstances where there is a reasonable knowledge that the same services will be required within the same budgetary term, that there are funds available for such additional services, and the purpose is to knowingly avoid formal competitive bidding.
(b) To the extent practical, (1) the Contracts Manager shall use master on-call services contracts or City-wide contracts for various routine, recurring or on-callnonprofessional services, and (2) Departments and the Procurement Services Division shall work together to plan annual requirements for non- professional services to maximize economic efficiencies. Information about master City-wide services contracts can be found on the Procurement page of the City’s intranet site.website (www.cityofsacramento.org/pss).

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(c) The solicitation and award procedures specified in this Policy for non- professional services vary depending on the amount of the procurement.

For purposes of determining which solicitation and award procedures apply:

1. When an masteron-call services contract is used, the procurement amount is the total amount to be spent over the potential life of the masteron-call services contract or contracts (if multiple master on-call services contracts are being let to multiple contractors for the same services), or

2. When a City-wide contract is used, the procurement amount is the total amount of the City-wide contract, or

3. When an master on-call services contract or City-wide contract is not used, the procurement amount for a specific contract is the sum of (i) the amount of the contract and (ii) the total amount that the Department will pay for the same services in the same fiscal year under any other existing contract within that Department (excluding existing contracts that have been awarded or approved by the City Council)..

4. The determination of what constitutes the “same services” under subsection 1 and 3 above, shall be made by the Procurement Services Division Manager or his/her their authorized designee, based on criteria specified in the Procurement Guidelines Manual. (d) Contracts less than $250,000 do not require the approval of the City Council and may be executed on behalf of the City by the City Manager or the City Manager’s designee. Delegations of approval authority are specified in API # 22 (Signing Authority). In the event of a declared emergency pursuant to City Code Chapter 2.116, the City Manager or the City Manager’s designee may supplement an existing contract by up to $249,999.99 (without regard to the original contract value)execute any contract or contract supplement for transactions less than $250,000 and related to the emergency response.

(e) For services of any amount, the contract amount shall be calculated based on the full cost of any term extensions provided for in the contract (e.g., the amount for a two-year contract in the amount of $40,000 per year, with an optional extension for year 3, shall be based on the total three year term, for a contract amount of $120,000).

(f) When purchase of non-professional services includes services to be performed onsite, general liability and workers compensation insurance (including a waiver of subrogation) shall be required. If a vehicle is used to perform the services, auto liability insurance shall be required.

(e)(g) When purchases utilize non-city funding (i.e., federal, state, or local grant funds, or other outside funding sources), purchasing must be Formatted: Font: 12 pt
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completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, special terms may be required in the solicitation and/or the contract. Contracts managers must consult with the City Attorney’s office to determine what additional or different terms may apply based on the funding source prior to issuing a solicitation.

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.21.1 NON-PROFESSIONAL SERVICES OF $10,0005,000 OR LESS (MICROPURCHASING)

(a) Micropurchasing (The pProcurement of non-professional services at a cost of $10,0005,000 or less) does not require competitive bidding and the contractor may be selected at the discretion of the Project Manager, provided that the Contracts Manager shall approve the procurement process. No minimum number of price quotations is required. (a)(b) The City Manager may approve adjustments to the threshold for micropurchasing, but may not exceed the Federal Micropurchase Threshold.

(c) Price quotations shall must be written.1
(d) Although not required, if price quotations are requested from more than oneAll prospective contractors contacted must be given the same information must be provided to all contractors and they must be allowed adequate time to respond.
(b)(e) The City’s Local Business Enterprise (LBE) Policy requirements do not apply to micropurchases, but contracting with Local Businesses is encouraged.

1.31.2 NON-PROFESSIONAL SERVICES OF MORE THAN $10,0005,000 UP TO AND INCLUDING $100,00025,000 (INFORMAL SOLICITATIONS )

(a) The Project Manager shall be responsible for soliciting at least three prospective bidderscontractors, unless the Contracts Manager documents that the non-professional services are not reasonably available from at least three bidderscontractors.
(a)(b)In addition to the application of the 5% LBE Preference as described in

1 If quotes are obtained over the phone, the contracts manager must document the information received. The Procurement Division has a standard form available for this purpose.

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Start at: 1 + Alignment: Left + Aligned at: 0.65" +
Indent at: 1.03"
Formatted: Not Expanded by / Condensed by
the City’s Local Business Enterprise Policy2, at least one of the bids solicited must be from a local business unless the Project Manager documents that the service(s) cannot be reasonably performed by a local business or that a local business does not exist at the time of the solicitation.
(b)(c) Price quotations Responses shall must be written.3 All prospective bidders contractors contacted must be given the same information and the same amount of time to respond.
(d) Award shall be made to the lowest responsive and responsible bidder and shall be approved by the Contracts Manager.Award based on informal solicitations must be made to the contractor scoring the highest on evaluation criteria established in the original request, or to the lowest responsive and responsible bidder. Award must be made on the basis indicated in the informal solicitation.
(c)
(d)(e)Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding Solicitation is Not Required) of this Policy.

1.41.3 NON-PROFESSIONAL SERVICES OF MORE THAN $100,00025,000 AND LESS THAN $250,000 (FORMAL COMPETITIVE SOLICITATIONS ) (a) The issuance of an formal solicitation Invitation for Bids (IFB) and advertising on the City’s web site for Contracting Opportunities are is required.
(c) Bids Responses must be obtained in writing, and all prospective bidders contractors must be given the same information and the same time to respond.
(d) The minimum time required for advertising bids solicitations on the City’s web site for Contracting Opportunities is ten calendar days. The length of the Aadvertisement period of IFBs should be appropriate to the industry standards for the particular services, to achieve the maximum practical public notice and competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(e) BidsResponses shall be received and opened by the Contracts Manager. (f) Contract awards resulting from IFBs/RFBs shall be made to the lowest responsive and responsible bidder.
(g) Contract awards resulting from RFPs shall be made to the proposer scoring highest on the evaluation criteria established within the RFP as

2 While the City’s LBE policy does not apply to federally funded contracts, the requirement to solicit at least one bid from a local business as part of the informal bidding process does apply to federally funded contracts as it is not a prohibited “preference.” 3 If bid information is obtained over the phone, the contracts manager must document the information received. The Procurement Division has a standard form available for this purpose.

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outlined in section 3. Solicitation Methods.
(f)(h) Contract awards resulting from RFQs shall be made as outlined in section 3. Solicitation Methods.
(g) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.
(i) Notice of contractor selection shall be provided to all bidders respondents as soon as reasonably practical to trigger the protest period. (j) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.
(c)

1.51.4 NON-PROFESSIONAL SERVICES OF $250,000 OR MORE (FORMAL

COMPETITVE SOLICITATIONS )
(a) The issuance of a formal solicitation and advertising on the City’s website for Contracting Opportunities is required.
(a) Advertising through the City Clerk's office and formal competitive bidding is required for non-professional service contracts with a cost of $250,000 or more.
(b) Responses must be obtained in writing and all prospective contractors must be given the same information and the same time to respond. (b)(c) All bids shall be advertised on the The minimum time required for advertising solicitations on the City’s web site for Contracting Opportunities for a minimum ofis ten calendar days. prior to the date set for receiving bids. The length of the advertisement period should be appropriate to the industry standards for the particular services, to achieve the maximum practical competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(c)(d) Bidding shall be conducted in accordance with the requirements of City Code, Chapter 3.56, including When an IFB or RFB is used, a public opening of bids opening by the City Clerk’s office or designee shall be conducted.
(d) Circumstances under which the City Code does not require competitive bidding for contracts of $250,000 or more are summarized in Section 2 (When Competitive Bidding is Not Required) of this Policy. (e) Staff recommendations for awarding cContracts of $250,000 or more must be presented toawarded by the City Council for approval. (f) Contract Aawards resulting from IFBs/RFBs is shall be made to the lowest responsive and responsible bidder, unless a different action is taken by the City Council pursuant to the City Code.
(g) Contract awards resulting from an RFP shall be made to the proposer scoring highest on the evaluation criteria established in the RFP, unless Formatted: Left, Numbered + Level: 1 + Numbering
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a different action is taken by the City Council pursuant to the City Code. (h) Contract awards resulting from RFQs shall be made as outlined in section 3.

Solicitation Methods.
(f)
(i) Notice of contractor selection shall be provided to all bidders respondents as soon as reasonably practical to trigger the protest period. (j) Circumstances under which the City Code does not require competitive bidding for contracts of $250,000 or more are Exceptions to the above requirements are summarizedprovided for in Section 2 (When Competitive Solicitations are Not Required) of this Policy. (g)

2. WHEN COMPETITIVE BIDDING SOLICITATION IS NOT REQUIRED

2.1 NON-PROFESSIONAL SERVICES OF MORE THAN $10,0005,000 AND LESS THAN $250,000
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s office if using non- City funds.
(a)(b) The bidding requirements specified in Section 1(Solicitation Thresholds and Requirements), above, do not apply if any of the following conditions are met:

1. After advertising for bids, proposals, or qualifications as required, no bids responses are received, or all bidsresponses received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

2. The contractor awarded a contract resulting from a City bid fails to enter into the contract. If this occurs, the next lowest bidder (for IFBs/RFBs) or second highest scoring prospective contractor (for RFPs and RFQs), if there is one, shall be awarded the contract, if such bidder’s respondent’s price is acceptable. If there is no such bidderrespondent, a different procurement method m ay be used, provided the use of such method is documented and approved as provided in subsection 3 of this policy.

3. It is in the City's best interest to use a different procurement method.

This justification must be documented by the Project Manager, and the request to use a different procurement method must be approved by the Department Director and Procurement Services Division Manager, in accordance with applicable provisions of the Procurement Guidelines procedures. Examples of alternative procurement methods areinclude:
(i) Competitive negotiation: The Project Manager negotiates with two Formatted: Right, Indent: Left: 1.03", No bullets or
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or more service providers to obtain a contract for the lowest price.

Documentation shall be maintained of all negotiation discussions, terms, and offers.
(ii) Sole source procurement: After conducting a good faith review of available sources, the Project Manager determines there is only one reasonable and practicable source for the required non- professional services.
(1) The following are other examples of circumstances that could necessitate a sole source procurement:A requirement for a particular proprietary service does not justify sole source procurement if more than one potential provider for that service is reasonably and practicably available. All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of service will be suitable or acceptable to meet the need. Documentation shall be maintained of all negotiation discussions, terms, and offers.
• When the services are only available from a sole or single source based on that source’s unique capabilities. A requirement for a particular proprietary service does not justify sole source procurement if more than one potential provider for that service is reasonably and practicably available.
• When, in the case of a follow-on contract for highly specialized services, it is likely that an award to another contractor will result in: (1) substantial duplication costs that are not expected to be recovered through competition; or (2) unacceptable delays the cost of which will exceed the costs expected to be recovered through competition.
(ii) (2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of supply will be suitable or acceptable to meet the need. Documentation shall be maintained of all negotiation discussions, terms, and offers.
(iii) Use of RFP process: An RFP process is used consistent with the provisions of the Procurement Guidelines.
(iv) 4. Emergency contracts: When emergency
conditions render competitive bidding impractical, and the determination of an emergency is approved by the
Department Director.
(v) 5. Cooperative service agreements or piggybacking: The contracts manager may obtain services through A competitively bid procured cooperative service agreements or by piggybacking off of another governmental jurisdiction or public agencies’y competitive contract without separate competitive bidding by the City.may be used, when supported by a market analysis showing that the prices and terms for the services to be
performed are below or meet market rates. Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

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2.2 NON-PROFESSIONAL SERVICES OF $250,000 OR MORE
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s Office if non-City funding will be used.
(b) The exceptions in this subsection do not affect the requirement for City Council to approve of all contracts for $250,000 or more. (c) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interest of the City. Questions concerning the applicability of competitive bidding requirements should be directed to the City Attorney’s Office.
(d) Under City Code Section 3.56.230, competitive bidding solicitation is not required for contracts of $250,000 or more under the following circumstances:

1. After advertising for bids, proposals, or qualifications as required, no valid bidsresponses are received or all responses received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is approved by the City Council consistent with applicable provisions of the City Codedocumented and approved as provided in subsection 3, below.

2. The contractor awarded a contract fails to enter into the contract. If this occurs, the next lowest bidder (for IFBs/RFBs) or second highest scoring proposer (for RFPs), if there is one, shall be awarded the contract, if such bidder’s or proposers’ price is acceptable. If there is no such bidder or proposer, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3 of this policy.

1. 2.3. The City Council determines on a 2/3 vote that it is in the best interests of the City to suspend use an alternative method to competitive biddingsolicitation. The suspension of the competitive bidding solicitation requirement can be recommended for various reasons, including:
(i) Other Competitive Methods: Alternative competitive methods for contractor selection are recommended due to special
circumstances, such as using a RFP process and/or selecting a contractor based on factors other than or in addition to price.
(ii) Competitive negotiation: The Project Manager negotiates with two or more service providers to obtain a contract for the lowest price.

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Documentation shall be maintained of all negotiation discussions, terms, and offers.
(iii) Sole source procurement: After conducting a good faith review of available sources, the Department determines there is only one reasonable and practicable source for the required non- professional service.
(1) The following are other examples of circumstances that could necessitate a sole source procurement:A requirement for a particular proprietary service does not justify a sole source procurement if more than one potential provider for that service is reasonably and practicably available. All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of service will be suitable or acceptable to meet the need.

Documentation shall be maintained of all negotiation
discussions, terms, and offers.
• When the services are only available from a sole or
single source based on that source’s unique capabilities.

A requirement for a particular proprietary service does not justify sole source procurement if more than one
potential provider for that service is reasonably and
practicably available.
• When, in the case of a follow-on contract for highly
specialized services, it is likely that an award to another contractor will result in: (1) substantial duplication costs that are not expected to be recovered through
competition; or (2) unacceptable delays the cost of which will exceed the costs expected to be recovered through
competition.
(2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of supply will be suitable or acceptable to meet the need.

Documentation shall be maintained of all negotiation
discussions, terms, and offers.
(iii)
(iv) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interests of the City. Questions concerning the applicability of competitive bidding requirements should be directed to the City Attorney’s Office.

3. 4. Emergency contracts: When emergency conditions
render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

4. 5. Cooperative purchase agreements or piggybacking: City Code section 3.56.240 provides that, where advantageous to the City, the City Manager or authorized designee The contracts manager Formatted: Numbered + Level: 1 + Numbering Style:
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may obtain non-professional services through competitively procured cooperative purchasing service agreements or
piggybacking off of other governmental
jurisdictions or public agencies’ competitive contracts that are approved by the City Council, without separate competitive bidding by the City.

Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

3. SOLICITATION METHODS

3.3.1 INVITATION FOR BID (IFB) OR REQUEST FOR BID (RFB) (a) IFBs or RFBs mustmay be used for the procurement of non-professional services costing more than $100,00025,000, except as otherwise provided in Section 2 (When Competitive Bidding is Not Required). This does not preclude the use of IFBs or RFBs for procurements below this threshhold.
(b) The Project Manager shall bear the overall responsibility for the preparation of bid specifications, utilizing a standardized IFB/RFB format, as provided inby the Procurement GuidelinesDivision or otherwise approved by the City Attorney’s office.
(c) The bid specifications shall contain a complete scope of work for the non- professional services to be performed.

4.3.2 REQUEST FOR PROPOSAL (RFP)
A one-step RFP method may be used for project-specific contracts when the scope of work is well-defined or for multi-phased contracts where the defined scope of work is divided into phases. (Prior to issuing an RFP for a multi-phase project, the Project Manager should consult with the City Attorney’s office to discuss options to prevent the selected contractor for an early phase of work from being disqualified from bidding on a later phase due to a conflict of interest).RFPs are used to solicit professional services, but generally are not used to solict non-professional services. However, an RFP may be used where appropriate and practical as authorized under Section 2 (When Competitive Bidding is Not Required) in this policy.
(a) RFPs are used to communicate the City’s requirements to prospective contractors and to solicit proposals.
(b) The Project Manager shall bear the overall responsibility for the preparation of an RFP, utilizing a standard RFP format or template otherwise approved by the City Attorney’s office, and including the required minimum RFP components per procurement procedures.
(a)(c) RFPs shall include a clear, accurate detailed scope of work, technical requirements, qualifications, including deliverables to be provided and method of payment (e.g., specific rate of compensation, cost-plus fixed fee, cost per unit of work, lump-sum payment), and method and criteria and Formatted: List Paragraph, Right: 0.51", Space Before:
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weights for selection.

RFPs shall comply with applicable provisions of the
Procurement Guidelines.

3.3 REQUEST FOR QUALIFICATIONS (RFQ) and RFP
A two-step RFQ/RFP method may be used to procure on-call contracts through a single solicitation for a specific category of work or area of expertise (i.e., an on-call list) or when the scope of work is not clearly known, is very complex, or unusual.
(a) An RFQ may be used to evaluate and rank consultants based on their qualifications to pre-qualify a list of consultants. The RFQ should include a general description of the services or type or project(s), general scope of work, technical requirements, qualifications, method of payment (e.g., specific rate of compensation, cost-plus fixed fee, cost per unit of work, lump-sum payment), and method and criteria and weights for selection. (b) An RFP must then be issued to the pre-qualified consultants for a specific project, task, or service to evaluate a consultant’s specific technical approach, special qualifications for the specific project, and price estimate. (b) (c) The requirement for a subsequent RFP can be waived by the Department Director or Assistant City Manager consistent with the Signing Authority Policy for urgent projects or projects that do not exceed $250,000.

4. OTHER PROCUREMENT METHODS
Alternative procurement methods to those set forth in this Section 3 should only be used where appropriate and practical, and as authorized under section 2 (When Competitive Bidding is not Required) of this policy.

5. AMENDING OR CANCELING AN IFB OR RFP SOLICITATION
(a) An addendum shall be used to modify or cancel a solicitationn IFB or RFP, and shall be issued not less than three working days before the deadline specified for receipt of bids or proposals. Addendums extending the deadline or cancelling the solicitation may be issued less than three working days before such date if necessary.
(b) The minimum components required for addendums are identified in the applicable Procurement Guidelines procedures.
(c) The addendum should be published using the same media used to advertise the original solicitationIFB or RFP , including the City website.

Addendums shall be sent to all prospective bidders/proposers known to have received a solicitationn IFB or RFP .

6. PUBLIC DISCLOSURE
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(a) IFBs and RFPSolicitations for non-professional services of $100,00025,000 or more shall be available for public inspection at the office of the Contracts Manager and shall be posted on the City website for Contracting Opportunities.
(b) After bid opening, bids shall be made available in response to an official request for public inspection, in accordance with the California Public Records Act.
(c) Proposals submitted in response to a RFP shall be made available in response to a n official request for public inspection after the proposal evaluationsolicitation process is complete, in accordance with the California
Public Records Act.
(d) (e)€ If the bidder or proposer designates any portion of its bid as proprietary or confidential, or any other public disclosure issues are presented, the Contracts Manager shall consult with the City Attorney’s Office prior to any response or disclosure.

7. ACCEPTANCE AND EVALUATION OR REJECTION OF BIDS OR PROPOSALS

7.1 LATE BIDS OR PROPOSALS

(a) A bid or proposal is late if it is received at the location designated in the IFB or RFPsolicitation after the deadline specified in the IFB or RFPsolicitation. (b) A late bid or proposal shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.
(c) A late bid or proposal shall not be opened, except (if necessary), for identification purposes. Delivery and return of late bids or proposals shall be handled in the following manner:

1. If delivered in person, a late bid or proposal shall be rejected and returned to the person delivering it (failure to reject it at the time of delivery does not constitute acceptance);

2. If not delivered in person, a late bid or proposal shall be returned by certified mail;

3. Bidders or proposers submitting late bids or proposals that will not be considered for award shall be notified as soon as practicable.

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numbered + Level: 2 + Numbering Style: 1, 2, 3, … +
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+ Level: 3 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.65" + Indent at: 1.03" (b) Only the City Council has the authority to waive minor irregularities for bids or proposals of $250,000 or more. For bids or proposals valued at less than $250,000, the City Manager or designee has the authority to waive minor irregularities.
(c) No criteria may be used in bid or proposal evaluations that are not referenced in the bid specifications or RFPsolicitation or in applicable provisions of the City Code or other applicable laws or regulations. (d) When an RFP process is used (if authorized instead of an IFB, as noted above), no discussions for any purpose other than administrative clarification may be conducted with proposers after submission of proposals, except during the presentation phase, if any.

7.3 DETERMINATION OF LOWEST BID OR BEST VALUE
(a) For an IFB or RFB, the contract shall be awarded to the lowest responsive and responsible bidder.
(b) For an RFP, the contract shall be awarded to the proposer scoring the highest on the evaluation criteria established in the RFP. (a)(c)For an RFQ, the contract shall be awarded as outlined in Section 3.

Solicitation Methods.
(b)(d) If a bidder prospective contractor that otherwise would have been the lowest responsible bidder or highest scoring proposer is determined to be non-responsible, after consulting with the City Attorney’s office, the Contracts Manager shall prepare a written determination of non- responsibility, setting forth the basis of the finding of non-responsibility and advising the bidder respondent that theyit may request a hearing on the matter, and shall send such determination to the bidder respondent by certified mail.
(c)(e)If there are two or more low responsive bids from responsible bidders that are identical in price, quality and service, and both meet all the requirements and criteria set forth in the IFB or RFB, then award, if made, shall be made by a drawing of lots.

7.4 REJECTION OF BIDS, PROPOSALS, OR QUALIFICATIONS

(a) For contracts less than $250,000, the Department Director or the Contracts Manager shall have the authority to reject a bid, proposal, or statement of qualificationss, after consulting with the City Attorney’s office.

(b) For contracts of $250,000 or more, only the City Council has the authority to reject any valid bid, proposal, or statement of qualifications.

7.5 NOTICE OF INTENT TO AWARD

7.6 A notice of intent to award shall be provided for all published solicitations as soon as reasonably practical to trigger the protest period. The Bid Protest Policy Formatted: Left, Outline numbered + Level: 2 +
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approved by the City Manager may also apply to informal solicitations.

7.57.7 CONTRACT FORM AND DOCUMENTATION
(a) TheA current standard non-professional services contract form, as approved by the City Attorney’s office, or other appropriate contract form as approved by the City Attorney’s office, shall be executed prior to starting any services.

Current Citywide Aapproved forms are available on the Procurement page on the City’s intranet (www.cityofsacramento.org/pss).
(b) For contracts of $250,000 or more, the contract must be signed by the contractor and the City Attorney’s Office, and submitted to the City Clerk, prior to City Council award of the contract.
(c) For all levels of contract award, contract documents must be fully executed (obtain all signatures and provide any required contract documents) prior to performance of the contract.

8. BID SECURITY/BONDS AND INSURANCE

8.1 BID SECURITY
(a) The Contracts Manager shall determine whether to require bid security, consistent with the level of risk associated with the non-professional services, and the requirement shall be specified in the IFBsolicitation. (b) Bids received without the required security shall be considered non- responsive and will be rejected.
(c) Bid security shall be returned to unsuccessful bidders after a successful bidder is selected and awarded the contract.
(d) Bid security may be forfeited and applied as specified in City Code Section

3.56.150.

8.2 PERFORMANCE BONDS
(a) The Contracts Manager shall determine whether to require a performance bond, consistent with the level of risk associated with the non-professional services.
(b) Performance bond requirements shall be described in the IFB or RFPsolicitation, and shall conform to applicable provisions of the Procurement Guidelines procedures.
(c) Performance bonds shall be accepted only from sureties admitted and duly authorized to transact business in the State of California, and shall be approved as to form by the City Attorney’s office.
(d) Failure to submit the required bond within the time specified in the notice of award may be just cause for annulment of the award and forfeiture of the bidder'’s bid security.

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8.3 INSURANCE
(a) All insurance requirements specified in the current standard contract form must be satisfied prior to award/approval/execution of the contract by the City, unless otherwise approved by Risk Management.
(b) Additional insurance requirements may apply depending upon the type of services being purchased. Departments must consult with the Risk Division on any additional insurance requirements to be added to solicitations and/or contracts.
(b)(c)All changes to contractual provisions including insurance requirements proposed by contractors must be approved by the City Attorney's Office and the Department Director prior to contract award/approval and/ execution by the City.
(c)(d)All changes to insurance requirements proposed by contractors must be reviewed by Risk Management and approved by the Department Director prior to contract award/approval/execution by the City.

9. BID PROTEST PROCEDURES

9.1 CONTRACTS OF MORE THAN $5000 AND LESS THAN $250,000 (a) A bidder on a Prospective contractors who respond to a solicitation on a contract may file a bid protest in accordance with policies adopted by the City Manager’s office and posted on the City’s website.(1) claiming that one or more bidders on the contract should be disqualified or rejected for any reason, or (2) contesting a City staff recommendation to award the contract to a particular bidder, or (3) contesting a City staff recommendation to disqualify or reject one or more bidders on the contract. Only a bidder may file a bid protest on a contract.

(b) The bid protest shall be in writing and shall be filed with the Contracts Manager not later than five working days after City staff provides notice of the recommended contract award to the bidders. The bid protest shall provide the name, address, telephone and telecopier numbers of the protesting bidder, shall identify the contract to which the bid protest pertains, including the contract number and date that bids for such contract were received by the City, and shall identify the City department or division requesting bids. The bid protest shall identify and explain the factual and legal grounds for the protest, and shall include and attach any written materials that the protesting bidder wishes to have considered in determining the protest.
(c) At the time a bid protest is filed, the protesting bidder also shall make payment to the Contracts Manager of a bid protest fee in the amount established by resolution of the City Council, which fee shall be used to pay the City’s costs of processing the protest as provided herein. (d) Any bid protest that is received by the Contracts Manager after the time Formatted: Left, Indent: Hanging: 0.44", Outline
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period specified above, or that is not accompanied by the bid protest fee, shall be untimely and invalid, and shall not be considered.

(e) The protesting bidder and any other bidder(s) potentially affected by the bid protest shall be provided written notice of an informal hearing to be held not less than five working days after receipt of the bid protest. The hearing shall be conducted by the Director of the Department requesting bids or his or her authorized designee. The protesting bidder and any other bidder on the contract shall promptly provide any information requested by City staff prior to the informal hearing.

The written response shall be provided to the protesting bidder and any other bidder(s) potentially affected by the bid protest.

9.2 CONTRACTS OF $250,000 OR MORE

(a) The bid protest procedures specified in subsection 9.1, above, also shall apply to contracts of $250,000 or more, provided that nothing specified in this section shall limit or otherwise affect the City Council’s discretionary authority to accept, reject or modify the bid protest response issued by the Department Director or authorized designee or take any other action authorized under the City Charter or City Code.
(b) Subsection 9.2 (a) shall not apply in cases where the Invitation for Bids provides that bid protests shall be filed in accordance with the provisions of Article X of Chapter 3.60 of the Sacramento City Code (commencing with City Code Section 3.60.460).

10. MULTI-YEAR CONTRACTS
(a) No contract term shall extend beyond a total term, including extensions and renewals, of five years, provided that:

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2. For contracts of $250,000 or more, a longer term may be approved by the City Council.

3. The total contract amount shall be determined based on the compensation paid during the total term, including any extensions or renewals authorized by the contract.
(b) An extension or renewal of a contract must be authorized in the contract and must occur prior to expiration of the contract term to be valid. (c) Contracts must be authorized by the City Council when the total price of the contract, including any extended or renewed term(s) authorized by the contract terms, will be $250,000 or more.
(d) The contract price shall be determined includeing the cost to the City of tax, shipping and any other applicable charge.
(e) All multi-year contracts and contract extensions or renewals shall serve the best interest of the City. The decision whether to approve contract extensions or renewals shall consider factors such as market price adjustments, product and service availability, impact on Ccity operations and the utilization of small and local businesses.

11. ESBE SMALL AND/OR DISADVANTAGED BUSINESS PARTICIPATION AND

REPORTING REQUIREMENTS

11. The City may adopt an ordinance or program which allows departments to give preference to small and/or disadvantaged businesses during proposal evaluation.

Upon adoption of any such ordinance or program, the following will apply:
(a) Emerging and Small Business Enterprise (ESBE) Program requirements shall be met for all contracts as specified in the Procurement Guidelinesprocedures, unless these requ irements are reduced or waived by the Office of Small Business Development (OSBD) Department Director, or an external funding source prohibits the use of such preferences or requires the use of other business enterprise requirements.
(b) Any modification or waiver of an ESBEapplicable requirements must be requested in writing and approved by the OSBD Department Director prior to any advertisement or posting to the City’s website for Contracting Opportunities.
(c) Departments shall be responsible for meeting a n y r e l a t e d annual ESBE
participation goals on a Department-wide basis.
(d) The OSBDProcurement Division shall compile data relative to ESBEprogram expenditures and
utilization and submit periodic reports to the City Manager detailing contract amounts and ESBE participation rates.

12. EQUAL BENEFITS CITY ORDINANCES
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12. Various City Ordinances may apply to solicitations for non-professional services.

Solicitations for which such ordinances apply shall contain ordinance requirements and standard forms and declarations as available. The contracts manager is responsible for reviewing required forms and declarations and applying preferences as required during the evaluation process.
(a) Equal Benefits Ordinance: Contracts exceeding $25,000thresholds set in City Code section 3.54 are subject to applicable provisions of the City’s Non-Discrimination in Employee Benefits Code, codified at Chapter

3.54 of the City Code (commonly referred to as the Equal Benefits Ordinance, or EBO) and as outlined in API#53.
(b) All solicitations shall contain the City’s standard EBO Requirements. (c) All contracts to which the EBO applies shall contain an executed EBO Declaration of Compliance.

More detailed information concerning the EBO requirements is set forth in API

53. (a) ( b) Living Wage Ordinance (LWO): Departments that administer non-professional services contracts shall be responsible for compliance with applicable provisions of the City’s Living Wage Ordinance (LWO) codified at Chapter 3.58 of the City Code, including ensuring all applicable solicitations and contracts include LWO requirements and executed
Declarations of Compliance as outlined in City Code and the City’s LWO requirements.
• (1) City Council reports that request approval for non- professional service contracts shall include a discussion on whether the LWO provisions are applicable in the Policy Considerations section of the report.
• (2) Contracts for laundry, window washing and janitorial services are not subject to the LWO, because these contracts are subject to the prevailing wage requirements specified in City Code section 3.60.040
( c ) Ban the Box Ordinance: Contracts exceeding thresholds set in City Code section

3.62 are subject to the provisions of the City’s Ban the Box Ordinance and contracts manager must include ordinance requirements and declarations as applicable. ( d ) Local Business Enterprise Preference: Contractors qualifying as Local Businesses as defined in City’s LBE Program may receive an evaluation preference as outlined in the Requirements for the LBE Program.
( e ) Local Business Enterprise Requirement: Contracts meeting thresholds set in the City’s LBE Program may be required to be performed by contractors who qualify as Local Businesses per the City’s LBE Program, or whom are subcontracting with a percentage of subcontractors qualifying as Local Businesses as outlined in the Requirements for the LBE Program.
( f ) Sustainable Purchasing Policy Preference: Buyers must apply this preference as outlined in the AP4003 Sustainable Purchasing Policy, as applicable. ( g) SB 1383 Reporting Requirements: Contracts for the purchase of recovered organic waste products as defined in SB 1383 shall be subject to additional reporting as outlined in the bill. Contracts managers are responsible for including reporting Formatted: Left, Indent: Left: 0.4", No bullets or
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requirements in applicable solicitations and contracts. ( h) Other State or Local Requirements as applicable.
(f) When purchases utilize non-city funding (i.e. federal, state, or local grant funds or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, City ordinances may not apply.
(d)

1. LIVING WAGE ORDINANCE/PREVAILING WAGES

(b) Departments that administer non-professional services contracts shall be responsible for compliance with applicable provisions of the City’s Living Wage Ordinance (LWO) codified at Chapter 3.58 of the City Code.

(c) All solicitations for non-professional services shall inform prospective bidders or proposers of the City’s standard LWO Requirements.

(d) All contracts for non-professional services to which the LWO applies shall contain an executed LWO Declaration of Compliance.

(e) City Council reports that request approval for non-professional service contracts shall include a discussion on whether the LWO provisions are applicable in the Policy Considerations section of the report.

(f) Contracts for laundry, window washing and janitorial services are not subject to the LWO, because these contracts are subject to the prevailing wage requirements specified in City Code Section 3.56.070.

13. SPECIAL REQUIREMENTS FOR CONTRACTORS WHO ARE SOLE

PROPRIETORS (INDIVIDUALS)
(a) The City Code requires that contracts for construction related services, including work performed during the design and other preconstruction phases (such as land surveying and materials testing), as well as postconstruction phases (such as inspection services) originally awarded in an amount exceeding $25,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773. (b) The City Code also requires that contracts for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773.
(c) More specific requirements relating to prevailing wages requirements and apprentice requirements are specified in City Code Section

3.60.040 and AP 4002 – Public Projects.

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(a) When the contractor is not a business entity such as a corporation, partnership, etc. and utilizes a personal social security number as their Federal or State tax identification number, all transactions with such individuals must be entered into the City's financial system within ten working days after execution of a contract, or ten working days after the date services are commenced, whichever occurs first.
(b) This includes any City contract with a contractor who is a sole proprietor.

14. 14. SUPPLEMENTAL AGREEMENTS CONTRACT AMENDMENTS

2. (a) Supplemental agreements Contract Amendments may be approved by the City Manager or authorized designee, within the limits of approval authority specified in Article VI of City Code Chapter 3.04.02056 and this policy. Supplemental agreements Amendments exceeding these limits must be approved by the City Council.
(b) Delegations of the City Manager’s approval authority are specified in API #22.
(c) Any supplemental agreement am endm en t extending the term of a contract must be approved by the appropriate approval authority prior to expiration of the unextended term.

14. 15. PAYMENT METHODS AND PAYMENT TERMS

14.1 a. PAYMENT METHODS
(a) i. Original invoices shall be required for all payments. (b) ii. No advance payments are allowed, unless approved by the Finance Department.

14.2 b. PAYMENT TERMS
(a) i. Contractor invoices must contain all information required by the contract.
(b)(a) ii. Payment terms are NET 30 days unless the contractor offers a prompt payment discount that is accepted by the City.
(c) iii. All payment discounts shall be computed from the date of completion and acceptance of services, or from the date an invoice is received, whichever occurs later.
iv. The Finance Department, Accounting Division must approve payment terms that are inconsistent with this policy.

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(d) v. For state or federally funded contracts, restrictions may apply to the method of payment.

15. 16. TRANSACTION NUMBER LOG

(a) Each Department shall establish and maintain a transaction number log for all Department solicitations for which a formal solicitation n IFB or RFP is issued. The transaction number log shall be organized based on solicitations initiated within each Department.
(b) A transaction number shall be assigned to each IFB or RFPpublished solicitation, and will be used to identify and track all related activity through requisition and payment, if applicable.

(c) Transaction numbers will be prominently displayed on the IFB or RFPpublished solicitation and on the City's web site for Contracting Opportunities (if applicable).
(d) Transaction numbers shall be created in accordance with procedures established by the Procurement proceduresServices Division Manager or authorized designee.

16. 17. EMPLOYEE CONFLICT OF INTEREST/ETHICS
(a) All procurement activities shall be performed in compliance with the provisions of the Procurement Ethics and Standards of Conduct.

Pursuant to the City’s adopted Conflict of Interest Code, no employee, officer, or agent of the City may participate in the solicitation, award or administration of a contract (including purchases made through other means such as P-Card or purchase orders) if they have a real or apparent conflict of interest. A real or apparent conflict of interest would arise if any prospective or existing consultant or contractor (or any subcontractor) considered for an award is:

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a. Discipline Procedures & Review Standards:
https://records.cityofsacramento.org/ViewDoc.aspx?ID=s6tFBnt4W+IJi2YxhaL Q5nZ3jqzJu8Xg
b. Civil Service Board Rules: https://www.cityofsacramento.org/- /media/Corporate/Files/HR/Divisions/Admin/CivilServiceBoardRules62012.pdf ?la=en
c. Collective Bargaining Agreements:
https://www.cityofsacramento.org/HR/Divisions/Labor-Relations/Labor- Agreements
d. In addition, the City’s Conflict of Interest Code provides that employees may be subject to any form of discipline that is statutorily available for those participating in the selection, award or administration of a contract if a conflict of interest exists, as set forth in California Government Code, sections 81000-91014.

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INDEX

$ D N
$250,000 ...... 5, 6, 7, 8, 9, 12, 13, Determination of Lowest Bid... 12 Non-Professional Service .......... 4 14, 15, 16 Non -Professional Services of
$25,000 .................... 7, 10, 11, 17 $250,000 or More .................. 7 $5,000 .................................6, 7, 8 E Non -Professional Services of

2 2/3 Vote .......................................9

Emergency ............................ 3, 9
Emerging and Small Business
Enterprise ....................... 3, 16
Employee Conflict of
Interest/Ethics .................... 19
$5,000 or Less ...................... 6
Non -Professional Services of
More Than $25,000 And Less
Than $250,000...................... 7
Notice ..................................... 7, 8
Esbe ............................. 3, 16, 17
A
Acceptance and Evaluation or
Rejection of Bids or
Proposals ........................... 11
Esbe Participation and Reporting
Requirements ..................... 16
Evaluation ................................ 12
Extension ................................ 16
O
Office of Small Business
Development ...................... 16
Other Competitive Methods ....... 9
Addendum ......................... 2, 11
Advertising ........................ 7, 8, 9
Amending or Canceling an IFB
or Rfp .................................. 11
G
P
General Requirements

Award ............. 4, 5, 7, 12, 13, 14 Applicable To All Non - Professional Services ............5

Payment Methods and Payment
Terms ...................................18
Payment Voucher .......................4

B
I
Best Interest ........................ 8, 16

Procurement .... 2, 3, 4, 5, 6, 8, 9,
10, 11, 12, 13, 16, 19
Procurement Guidelines2, 4, 6, 8

Bid Security/Bonds and
Insurance............................. 13
Bid Specifications ................. 2, 3
IFB-Invitation For Bid... 2, 3, 4, 7,
10, 11, 12, 13, 18, 19
Project Manager .4, 6, 7, 8, 9, 10
Public Disclosure ..................... 11
Purchase Order...........................4
L
C R
Late Bids or Proposals .......... 11
City Charter ........................... 1, 2
City Clerk .....................2, 7, 8, 13
City-Wide ........................... 3, 5, 6
City-Wide Contract ................... 3
Competitive Bidding ...3, 7, 8, 10
Living Wage
Ordinance/Prevailing Wages
............................................. 17
Lowest Responsible Bidder........3
Rejected ............ 8, 11, 12, 13, 14
Rejection of Bids ...................... 13
Renewal ................................... 16
Request For Proposal (RFP)2, 4,
9, 10, 11, 12, 13, 18, 19
Competitive Negotiation....... 8, 9 Required .... 5, 7, 8, 9, 10, 11, 13, Conflict .................................... 14
Contract ................ 3, 4, 7, 13, 16
Contract Form and
Documentation ................... 13
Contractor ........................... 3, 18
Contracts Manager 3, 5, 6, 7, 11,
12, 13, 14, 15
Contracts of $250,000 or More
. ........................................... 15
Cooperative Purchase ............. 10
Cooperative Service ...................9
M
Master Services Contract ......... 6
Multi-Year Contracts ............... 16
Must.................................... 13, 16
14, 18
Responsive Bidder ................... 4
S
Same Services ...................... 5, 6
Special Requirements for
Contractors Who are Sole
Proprietors (Individuals)...... 17
Splitting ..................................... 5
Supplemental Agreement ......... 5
T
Ten Calendar Days................... 7
Transaction Number Log ....... 18
Shall ...3, 5, 6, 7, 8, 9, 10, 11, 12, Supplemental Agreements.. 18 13, 14, 15, 16, 17, 18, 19
Sole Source Procurement......... 9, 10
Solicitation ............................ 4, 5
Solicitation Thresholds and
Requirements ....................... 5
Supplies.......................................1
Supplies ..................................... 2
Suspend Competitive Bidding . 9,
10 Suspension of Competitive
Bidding ................................. 9
W
When Competitive Bidding is Not
Required ............................... 8
Will ........................................... 16

Non-Professional Services

FULL POLICY CONTENTS

Policy Statement
Purpose
Forms/Instructions
Procedures
Contacts

ADDITIONAL DETAILS
Definitions
Appendices
FAQ
Related Information
History

Policy Number: AP-4101
Document Type: Policy
Version: 1.2
Initially Adopted: February 2010
(Resolution 2010-084

Update Effective: March 13, 2020

Responsible Department/Division:

Special Situations
Not Applicable
Exclusions
Not Applicable

Forms/Instructions
 Non-Professional Services Agreement (see intranet)

Procedures

Contacts
Department of Finance, Procurement Division
Office of the City Clerk
Office of the City Attorney

Definitions
Addendum
An amendment to a solicitation.

Best Value
Best value means the contract that, in the City’s estimation, provides the greatest overall benefit to the City.

Scope of Work or Specifications
Complete directions, provisions and requirements for the performance of non- professional services. Scope of Work or Specifications shall be included with the solicitation.

City-wide Contract
A contract administered by the Procurement Division to procure non- professional services for multiple Departments.

Competitive Bidding
The process of soliciting bids and awarding a contract to the lowest responsive and responsible bidder.

Competitive Solicitation
The process of soliciting bids and awarding a contract on the basis of best value when factors other than cost must be considered.

Contract
Any binding contract document, regardless of what it is called, for the procurement of non-professional services. References to a “contract” shall be deemed to include all documents attached to or incorporated in the contract.

Contracts Manager
A position or employee authorized by the Department Director to administer the contracting process for non-professional services on behalf of the Department. A Contracts Manager is not authorized to execute non-professional service contracts on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

Contractor
A person, firm or other entity that contracts with the City to perform non-professional services.

Federal Micropurchase Threshold
The dollar amount at which the federal government has determined no competition is required for purchasing.

Invitation for Bid (IFB) or Request for Bid (RFB)
A written invitation or request for bids, for a contract to be awarded to the lowest responsibly bidder.

Local Business
A business operating within the City of Sacramento or unincorporated County of Sacramento consistent with the City’s Local Business Enterprise Policy.

On-Call Services Contract
A contract for on-call services for a specified term.

Payment Voucher
A document that records the accounting, distribution and payment of the invoice.

Procurement
The term is intended to include all functions that pertain to obtaining the service or work, including the preparation of specifications and requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

Procurement Procedures
Written procedures developed by the Procurement division that specify more detailed operational guidance for City procurement, consistent with applicable provisions of the City Charter City Code and Administrative Policy Instructions (APIs).

Purchase Order
A written authorization for a contractor to supply goods or services at a specified price and over a specified period of time. In the absence of a contract, acceptance of the purchase order shall constitute a binding contract. The use of a purchase order instead of a fully executed contract is subject to approval by the Procurement Division, the City Attorney’s Office, and the Risk Division.

Request for Proposals (RFP)
A written request for proposals to provide specified nonprofessional services for a contract that will be awarded on a basis other than the lowest responsible bid.

Request for Qualifications (RFQ)
A written request for the submission of qualifications to provide specified nonprofessional services. RFQs are used to identify contractors with adequate qualifications to provide the specified services.

Responsive Bidder
A bidder whose bid meets all of the bidding requirements in the solicitation.

Statement of Qualification
A written document submitted by a potential contractor in response to an RFQ.

Amendment
A modification to the terms of a contract.

Definitions set forth in Chapter 3.56 of the City Code also apply.

Appendices
 City Charter-Article XIV Public Contracts and Supplies  City Code 3.56
Frequently Asked Questions
Related Information
 City Charter-Article XIV Public Contracts and Supplies  City Code 3.04, 3.54, 3.56, 3.58, 3.60, 3.62
 Resolution No. 2010-084
 Administrative Policy (Signing Authority # 22)

Document History
Amended: March 13, 2020
Supersedes: API # 1 – Procurement of Supplies and Non-Professional Services Adopted: February 2010

Policy

GENERAL REQUIREMENTS APPLICABLE TO ALL NON-

PROFESSIONAL SERVICES
(a) The City Code prohibits splitting or separating into smaller units any requirement for non-professional services for the purpose of evading the applicable requirements for competitive bidding or City Council award.

The City Code defines this prohibited practice as reducing the amount of non-professional services to be furnished under circumstances where there is a reasonable knowledge that the same services will be required within the same budgetary term, that there are funds available for such additional services, and the purpose is to knowingly avoid formal competitive bidding.
(b) To the extent practical, (1) the Contracts Manager shall use on-call services contracts or City-wide contracts for various routine, recurring or nonprofessional services, and (2) Departments and the Procurement Division shall work together to plan annual requirements for non- professional services to maximize economic efficiencies. Information about City-wide service contracts can be found on the Procurement page of the City’s intranet site.
(c) The solicitation and award procedures specified in this Policy for non- professional services vary depending on the amount of the procurement.

For purposes of determining which solicitation and award procedures apply:

1. When an on-call services contract is used, the procurement amount is the total amount to be spent over the potential life of the on-call services contract or contracts (if multiple on-call services contracts are being let to multiple contractors for the same services), or

2. When a City-wide contract is used, the procurement amount is the total amount of the City-wide contract, or

3. When an on-call services contract or City-wide contract is not used, the procurement amount for a specific contract is the total amount that the Department will pay for the same services in the same fiscal year within that Department.

4. The determination of what constitutes the “same services” under subsection 1 and 3 above, shall be made by the Procurement Division Manager or their authorized designee.
(d) Contracts less than $250,000 do not require the approval of the City Council and may be executed on behalf of the City by the City Manager or the City Manager’s designee. Delegations of approval authority are specified in API # 22 (Signing Authority). In the event of a declared emergency pursuant to City Code Chapter 2.116, the City Manager or the City Manager’s designee may supplement an existing contract by up to $249,999.99 (without regard to the original contract value) for transactions related to the emergency response.

(g) When purchases utilize non-city funding (i.e., federal, state, or local grant funds, or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, special terms may be required in the solicitation and/or the contract. Contracts managers must consult with the City Attorney’s office to determine what additional or different terms may apply based on the funding source prior to issuing a solicitation.

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.1 NON-PROFESSIONAL SERVICES OF $10,000 OR LESS
(MICROPURCHASING)

(a) Micropurchasing (Procurement of non-professional services at a cost of $10,000 or less) does not require competitive bidding and the contractor may be selected at the discretion of the Project Manager, provided that the Contracts Manager shall approve the procurement process. No minimum number of price quotations is required.
(b) The City Manager may approve adjustments to the threshold for micropurchasing, but may not exceed the Federal Micropurchase Threshold.
(c) Price quotations must be written.1
(d) Although not required, if price quotations are requested from more than one prospective contractors the same information must be provided to all contractors and they must be allowed adequate time to respond. (e) The City’s Local Business Enterprise (LBE) Policy requirements do not apply to micropurchases, but contracting with Local Businesses is encouraged.

1.2 NON-PROFESSIONAL SERVICES OF MORE THAN $10,000 UP TO AND INCLUDING $100,000 (INFORMAL SOLICITATIONS)

(a) The Project Manager shall be responsible for soliciting at least three prospective contractors, unless the Contracts Manager documents that the non-professional services are not reasonably available from at least three contractors.
(b) In addition to the application of the 5% LBE Preference as described in the City’s Local Business Enterprise Policy2, at least one of the bids solicited must be from a local business unless the Project Manager documents that the service(s) cannot be reasonably performed by a local business or that a local business does not exist at the time of the solicitation.
(c) Responses must be written.3 All prospective contractors contacted must be given the same information and the same amount of time to respond. (d) Award based on informal solicitations must be made to the contractor scoring the highest on evaluation criteria established in the original request, or to the lowest responsive and responsible bidder. Award must be made on the basis indicated in the informal solicitation. (e) Exceptions to the above requirements are provided for in Section 2 (When Competitive Solicitation is Not Required) of this Policy.

1 If quotes are obtained over the phone, the contracts manager must document the information received. The Procurement Division has a standard form available for this purpose.
2 While the City’s LBE policy does not apply to federally funded contracts, the requirement to solicit at least one bid from a local business as part of the informal bidding process does apply to federally funded contracts as it is not a prohibited “preference.” 3 If bid information is obtained over the phone, the contracts manager must document the information received. The Procurement Division has a standard form available for this purpose.

1.3 NON-PROFESSIONAL SERVICES OF MORE THAN $100,000AND LESS THAN $250,000 (FORMAL COMPETITIVE SOLICITATIONS)
(a) The issuance of a formal solicitation and advertising on the City’s website for Contracting Opportunities is required.
(b) Responses must be obtained in writing, and all prospective contractors must be given the same information and the same time to respond. (c) The minimum time required for advertising solicitations on the City’s website for Contracting Opportunities is ten calendar days. The length of the advertisement period should be appropriate to the industry standards for the particular services, to achieve the maximum competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(d) Responses shall be received and opened by the Contracts Manager. (e) Contract awards resulting from IFBs/RFBs shall be made to the lowest responsive and responsible bidder.
(f) Contract awards resulting from RFPs shall be made to the proposer scoring highest on the evaluation criteria established within the RFP as outlined in section 3. Solicitation Methods.
(g) Contract awards resulting from RFQs shall be made as outlined in section 3. Solicitation Methods.
(h) Notice of contractor selection shall be provided to all respondents as soon as reasonably practical to trigger the protest period. (i) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.

1.4 NON-PROFESSIONAL SERVICES OF $250,000 OR MORE (FORMAL

COMPETITVE SOLICITATIONS)
(a) The issuance of a formal solicitation and advertising on the City’s website for Contracting Opportunities is required.
(b) Responses must be obtained in writing and all prospective contractors must be given the same information and the same time to respond. (c) The minimum time required for advertising solicitations on the City’s website for Contracting Opportunities is ten calendar days. The length of the advertisement period should be appropriate to the industry standards for the particular services, to achieve the maximum practical competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements. (d) When an IFB or RFB is used, a public bid opening by the City Clerk’s office or designee shall be conducted.
(e) Contracts of $250,000 or more must be awarded by the City Councill. (f) Contract awards resulting from IFBs/RFBs shall be made to the lowest responsive and responsible bidder, unless a different action is taken by the City Council pursuant to the City Code.
(g) Contract awards resulting from an RFP shall be made to the proposer scoring highest on the evaluation criteria established in the RFP, unless a different action is taken by the City Council pursuant to the City Code. (h) Contract awards resulting from RFQs shall be made as outlined in section 3.

Solicitation Methods.

(i) Notice of contractor selection shall be provided to all respondents as soon as reasonably practical to trigger the protest period. (j) Exceptions to the above requirements are provided for in Section 2 (When Competitive Solicitations are Not Required) of this Policy.

2. WHEN COMPETITIVE SOLICITATION IS NOT REQUIRED

2.1 NON-PROFESSIONAL SERVICES OF MORE THAN $10,000 AND
LESS THAN $250,000
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s office if using non- City funds.
(b) The bidding requirements specified in Section 1(Solicitation Thresholds and Requirements), above, do not apply if any of the following conditions are met:

1. After advertising for bids, proposals, or qualifications as required, no responses are received, or all responses received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

2. The contractor awarded a contract fails to enter into the contract. If this occurs, the next lowest bidder (for IFBs/RFBs) or second highest scoring prospective contractor (for RFPs and RFQs), if there is one, shall be awarded the contract, if such respondent’s price is acceptable.

If there is no such respondent, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3 of this policy.

3. It is in the City's best interest to use a different procurement method.

This justification must be documented by the Project Manager, and the request to use a different procurement method must be approved by the Department Director and Procurement Division Manager, in accordance with applicable Procurement procedures. Examples of alternative procurement methods include:
(i) Competitive negotiation: The Project Manager negotiates with two or more service providers to obtain a contract for the lowest price.

1. The following are other examples of circumstances that could necessitate a sole source procurement:
a. When the services are only available from a sole or
single source based on that source’s unique
capabilities. A requirement for a particular proprietary service does not justify sole source procurement if
more than one potential provider for that service is
reasonably and practicably available.
b. When, in the case of a follow-on contract for highly specialized services, it is likely that an award to another contractor will result in: (1) substantial duplication costs that are not expected to be recovered through
competition; or (2) unacceptable delays the cost of
which will exceed the costs expected to be recovered
through competition.

2. All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of supply will be suitable or acceptable to meet the need.

Documentation shall be maintained of all negotiation
discussions, terms, and offers.

4. Emergency contracts: When emergency conditions render competitive bidding impractical, and the determination of an emergency is approved by the Department Director.

5. Cooperative service agreements or piggybacking: The contracts manager may obtain services through competitively procured cooperative service agreements or by piggybacking off of other public agencies’ competitive contract without separate competitive bidding by the City. Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

2.2 NON-PROFESSIONAL SERVICES OF $250,000 OR MORE
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s Office if non-City funding will be used.
(b) The exceptions in this subsection do not affect the requirement for City Council to approve of all contracts for $250,000 or more. (c) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interest of the City. Questions concerning the applicability of competitive bidding requirements should be directed to the City Attorney’s Office.
(d) Under City Code Section 3.56.230, competitive solicitation is not required for contracts of $250,000 or more under the following circumstances:

1. After advertising for bids, proposals, or qualifications as required, no responses are received or all responses received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

3. The City Council determines on a 2/3 vote that it is in the best interests of the City to use an alternative method to competitive solicitation. The suspension of the competitive solicitation requirement can be recommended for various reasons, including:
(i) Other Competitive Methods: Alternative competitive methods for contractor selection are recommended due to special
circumstances.
(ii) Competitive negotiation: The Project Manager negotiates with two or more service providers to obtain a contract for the lowest price.

Documentation shall be maintained of all negotiation discussions, terms, and offers.
(iii) Sole source procurement: After conducting a good faith review of available sources, the Department determines there is only one reasonable and practicable source for the required non- professional service.

2. All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of supply will be suitable or acceptable to meet the need.

Documentation shall be maintained of all negotiation
discussions, terms, and offers.

4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

5. Cooperative purchase agreements or piggybacking: The contracts manager may obtain services through competitively procured cooperative service agreements or piggybacking off of other public agencies’ competitive contracts without separate competitive bidding by the City. Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

3. SOLICITATION METHODS

3.1 INVITATION FOR BID (IFB) OR REQUEST FOR BID (RFB)
(a) IFBs or RFBs may be used for the procurement of non-professional services costing more than $100,000. This does not preclude the use of IFBs or RFBs for procurements below this threshold.
(b) The Project Manager shall bear the overall responsibility for the preparation of bid specifications, utilizing a standardized IFB/RFB format, as provided by the Procurement Division or otherwise approved by the City Attorney’s office.
(c) The bid specifications shall contain a complete scope of work for the non- professional services to be performed.

3.2 REQUEST FOR PROPOSAL (RFP)

A one-step RFP method may be used for project-specific contracts when the scope of work is well-defined or for multi-phased contracts where the defined scope of work is divided into phases. (Prior to issuing an RFP for a multi-phase project, the Project Manager should consult with the City Attorney’s office to discuss options to prevent the selected contractor for an early phase of work from being disqualified from bidding on a later phase due to a conflict of interest). (a) RFPs are used to communicate the City’s requirements to prospective contractors and to solicit proposals.
(b) The Project Manager shall bear the overall responsibility for the preparation of an RFP, utilizing a standard RFP format or template otherwise approved by the City Attorney’s office, and including the required minimum RFP components per procurement procedures.
(c) RFPs shall include a clear, accurate detailed scope of work, technical requirements, qualifications, including deliverables to be provided and method of payment (e.g., specific rate of compensation, cost-plus fixed fee, cost per unit of work, lump-sum payment), and method and criteria and weights for selection.

3.3 REQUEST FOR QUALIFICATIONS (RFQ) and RFP
A two-step RFQ/RFP method may be used to procure on-call contracts through a single solicitation for a specific category of work or area of expertise (i.e., an on-call list) or when the scope of work is not clearly known, is very complex, or unusual. (a) An RFQ may be used to evaluate and rank consultants based on their qualifications to pre-qualify a list of consultants. The RFQ should include a general description of the services or type or project(s), general scope of work, technical requirements, qualifications, method of payment (e.g., specific rate of compensation, cost-plus fixed fee, cost per unit of work, lump-sum payment), and method and criteria and weights for selection. (b) An RFP must then be issued to the pre-qualified consultants for a specific project, task, or service to evaluate a consultant’s specific technical approach, special qualifications for the specific project, and price estimate. (c) The requirement for a subsequent RFP can be waived by the Department Director or Assistant City Manager consistent with the Signing Authority Policy for urgent projects or projects that do not exceed $250,000.

5. AMENDING OR CANCELING A SOLICITATION
(a) An addendum shall be used to modify or cancel a solicitation, and shall be issued not less than three working days before the deadline specified for receipt of bids or proposals. Addendums extending the deadline or cancelling the solicitation may be issued less than three working days before such date if necessary.
(b) The minimum components required for addendums are identified in applicable Procurement procedures.
(c) The addendum should be published using the same media used to advertise the original solicitation, including the City website.

Addendums shall be sent to all prospective bidders/proposers known to have received a solicitation.

6. PUBLIC DISCLOSURE
(a) Solicitations for non-professional services of $100,000 or more shall be available for public inspection at the office of the Contracts Manager and shall be posted on the City website for Contracting Opportunities. (b) After bid opening, bids shall be made available in response to an official request for public inspection, in accordance with the California Public Records Act.
(c) Proposals submitted in response to a RFP shall b e made available in response to an official request for public inspection after the solicitation process is complete, in accordance with the California
Public Records Act.
(d) If the bidder or proposer designates any portion of its bid as proprietary or confidential, or any other public disclosure issues are presented, the Contracts Manager shall consult with the City Attorney’s Office prior to any response or disclosure.

7. ACCEPTANCE AND EVALUATION OR REJECTION OF BIDS OR PROPOSALS

7.1 LATE BIDS OR PROPOSALS

(a) A bid or proposal is late if it is received at the location designated in the solicitation after the deadline specified in the solicitation. (b) A late bid or proposal shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.
(c) A late bid or proposal shall not be opened, except (if necessary), for identification purposes. Delivery and return of late bids or proposals shall be handled in the following manner:

1. If delivered in person, a late bid or proposal shall be rejected and returned to the person delivering it (failure to reject it at the time of delivery does not constitute acceptance);

2. If not delivered in person, a late bid or proposal shall be returned by certified mail;

3. Bidders or proposers submitting late bids or proposals that will not be considered for award shall be notified as soon as practicable.

7.3 DETERMINATION OF LOWEST BID OR BEST VALUE
(a) For an IFB or RFB, the contract shall be awarded to the lowest responsive and responsible bidder.
(b) For an RFP, the contract shall be awarded to the proposer scoring the highest on the evaluation criteria established in the RFP. (c) For an RFQ, the contract shall be awarded as outlined in Section 3.

Solicitation Methods.
(d) If a prospective contractor that otherwise would have been the lowest responsible bidder or highest scoring proposer is determined to be non- responsible, after consulting with the City Attorney’s office, the Contracts Manager shall prepare a written determination of non-responsibility, setting forth the basis of the finding of non-responsibility and advising the respondent that they may request a hearing on the matter, and shall send such determination to the respondent by certified mail. (e) If there are two or more low responsive bids from responsible bidders that are identical in price, quality and service, and both meet all the requirements and criteria set forth in the IFB or RFB, then award, if made, shall be made by a drawing of lots.

7.4 REJECTION OF BIDS, PROPOSALS, OR QUALIFICATIONS

(a) For contracts less than $250,000, the Department Director or the Contracts Manager shall have the authority to reject a bid, proposal, or statement of qualifications, after consulting with the City Attorney’s office.

(b) For contracts of $250,000 or more, only the City Council has the authority to reject any valid bid, proposal, or statement of qualifications.

7.6 CONTRACT FORM AND DOCUMENTATION
(a) A current non-professional services contract form, as approved by the City Attorney’s office, or other appropriate contract form as approved by the City Attorney’s office, shall be executed prior to starting any services. Current Citywide approved forms are available on the Procurement page on the City’s intranet
(b) For contracts of $250,000 or more, the contract must be signed by the contractor and the City Attorney’s Office, prior to City Council award of the contract.
(c) For all levels of contract award, contract documents must be fully executed (obtain all signatures and provide any required contract documents) prior to performance of the contract.

8. BID SECURITY/BONDS AND INSURANCE

8.1 BID SECURITY
(a) The Contracts Manager shall determine whether to require bid security, consistent with the level of risk associated with the non-professional services, and the requirement shall be specified in the solicitation. (b) Bids received without the required security shall be considered non- responsive and will be rejected.
(c) Bid security shall be returned to unsuccessful bidders after a successful bidder is selected and awarded the contract.
(d) Bid security may be forfeited and applied as specified in City Code Section

3.56.150.

8.2 PERFORMANCE BONDS
(a) The Contracts Manager shall determine whether to require a performance bond, consistent with the level of risk associated with the non-professional services.
(b) Performance bond requirements shall be described in the solicitation, and shall conform to applicable Procurement procedures. (c) Performance bonds shall be accepted only from sureties admitted and duly authorized to transact business in the State of California, and shall be approved as to form by the City Attorney’s office.
(d) Failure to submit the required bond within the time specified in the notice of award may be just cause for annulment of the award and forfeiture of the bidder’s bid security.

8.3 INSURANCE
(a) All insurance requirements specified in the current standard contract form must be satisfied prior to award/approval/execution of the contract by the City, unless otherwise approved by Risk Management.
(b) Additional insurance requirements may apply depending upon the type of services being purchased. Departments must consult with the Risk Division on any additional insurance requirements to be added to solicitations and/or contracts.
(c) All changes to contractual provisions including insurance requirements must be approved by the City Attorney's Office and the Department Director prior to contract approval and execution by the City. (d)

9. BID PROTEST PROCEDURES
Prospective contractors who respond to a solicitation on a contract may file a bid protest in accordance with policies adopted by the City Manager’s office and posted on the City’s website.

10. MULTI-YEAR CONTRACTS
(a) No contract term shall extend beyond a total term, including extensions and renewals, of five years, provided that:

2. For contracts of $250,000 or more, a longer term may be approved by the City Council.

11. SMALL AND/OR DISADVANTAGED BUSINESS PARTICIPATION AND REPORTING

REQUIREMENTS
The City may adopt an ordinance or program which allows departments to give preference to small and/or disadvantaged businesses during proposal evaluation.

Upon adoption of any such ordinance or program, the following will apply:
(a) Program requirements shall be met for all contracts as specified in Procurement procedures, unless these requirements are reduced or waived by the Department Director, or an external funding source prohibits the use of such preferences or requires the use of other business enterprise requirements.
(b) Any modification or waiver of applicable requirements must be requested in writing and approved by the Department Director prior to any advertisement or posting to the City’s website for Contracting Opportunities.
(c) Departments shall be responsible for meeting a n y r e l a t e d annual participation goals on a Department-wide basis.
(d) The Procurement Division shall compile data relative to program expenditures and
utilization and submit periodic reports to the City Manager detailing participation rates.

12. CITY ORDINANCES
Various City Ordinances may apply to solicitations for non-professional services.

Solicitations for which such ordinances apply shall contain ordinance requirements and standard forms and declarations as available. The contracts manager is responsible for reviewing required forms and declarations and applying preferences as required during the evaluation process.
(a) Equal Benefits Ordinance: Contracts exceeding thresholds set in City Code section 3.54 are subject to applicable provisions of the City’s Non- Discrimination in Employee Benefits Code, codified at Chapter

3.54 of the City Code (commonly referred to as the Equal Benefits Ordinance, or EBO) and as outlined in API#53.

(b) Living Wage Ordinance (LWO): Departments that administer non- professional services contracts shall be responsible for compliance with applicable provisions of the City’s Living Wage Ordinance (LWO) codified at Chapter 3.58 of the City Code, including ensuring all applicable solicitations and contracts include LWO requirements and executed Declarations of Compliance as outlined in City Code and the City’s LWO requirements.
• City Council reports that request approval for non-
professional service contracts shall include a
discussion on whether the LWO provisions are
applicable in the Policy Considerations section of the
report.
• Contracts for laundry, window washing and janitorial services are not subject to the LWO, because these
contracts are subject to the prevailing wage
requirements specified in City Code section 3.60.040
(c) Ban the Box Ordinance: Contracts exceeding thresholds set in City Code section 3.62 are subject to the provisions of the City’s Ban the Box Ordinance and contracts manager must include ordinance requirements and declarations as applicable.
(d) Local Business Enterprise Preference: Contractors qualifying as Local Businesses as defined in City’s LBE Program may receive an evaluation preference as outlined in the Requirements for the LBE Program. (e) Local Business Enterprise Requirement: Contracts meeting thresholds set in the City’s LBE Program may be required to be performed by contractors who qualify as Local Businesses per the City’s LBE Program, or whom are subcontracting with a percentage of subcontractors qualifying as Local Businesses as outlined in the Requirements for the LBE Program.
(f) Sustainable Purchasing Policy Preference: Buyers must apply this preference as outlined in the AP4003 Sustainable Purchasing Policy, as applicable.
(g) SB 1383 Reporting Requirements: Contracts for the purchase of recovered organic waste products as defined in SB 1383 shall be subject to additional reporting as outlined in the bill. Contracts managers are responsible for including reporting requirements in applicable solicitations and contracts.
(h) Other State or Local Requirements as applicable.
(i) When purchases utilize non-city funding (i.e. federal, state, or local grant funds or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, City ordinances may not apply.

13. SPECIAL REQUIREMENTS FOR CONTRACTORS WHO ARE SOLE PROPRIETORS (INDIVIDUALS)
(a) The City Code requires that contracts for construction related services, including work performed during the design and other preconstruction phases (such as land surveying and materials testing), as well as postconstruction phases (such as inspection services) originally awarded in an amount exceeding $25,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773. (b) The City Code also requires that contracts for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773.
(c) More specific requirements relating to prevailing wages requirements and apprentice requirements are specified in City Code Section

3.60.040 and AP 4002 – Public Projects.

14. CONTRACT AMENDMENTS
(a) Contract Amendments may be approved by the City Manager or authorized designee, within the limits of approval authority specified in City Code Chapter 3.04.020 and this policy. Amendments exceeding these limits must be approved by the City Council.
(b) Delegations of the City Manager’s approval authority are specified in API #22.
(c) Any amendment extending the term of a contract must be approved by the appropriate approval authority prior to expiration of the unextended term.

15. PAYMENT METHODS AND PAYMENT TERMS

15.1 PAYMENT METHODS
(a) Original invoices shall be required for all payments. (b) No advance payments are allowed, unless approved by the Finance Department.

15.2 PAYMENT TERMS
(a) Contractor invoices must contain all information required by the contract. (b) Payment terms are NET 30 days unless the contractor offers a prompt payment discount that is accepted by the City.
(c) All payment discounts shall be computed from the date of completion and acceptance of services, or from the date an invoice is received, whichever occurs later.
(d) The Finance Department, Accounting Division must approve payment terms that are inconsistent with this policy.
(e) For state or federally funded contracts, restrictions may apply to the method of payment.

16. TRANSACTION NUMBER LOG

(a) Each Department shall establish and maintain a transaction number log for all Department solicitations for which a formal solicitation is issued. The transaction number log shall be organized based on solicitations initiated within each Department.
(b) A transaction number shall be assigned to each published solicitation, and will be used to identify and track all related activity through requisition and payment, if applicable.

17. EMPLOYEE CONFLICT OF INTEREST/ETHICS

Pursuant to the City’s adopted Conflict of Interest Code, no employee, officer, or agent of the City may participate in the solicitation, award or administration of a contract (including purchases made through other means such as P-Card or purchase orders) if they have a real or apparent conflict of interest. A real or apparent conflict of interest would arise if any prospective or existing consultant or contractor (or any subcontractor) considered for an award is:

a. Discipline Procedures & Review Standards:
https://records.cityofsacramento.org/ViewDoc.aspx?ID=s6tFBnt4W+IJi2YxhaL Q5nZ3jqzJu8Xg
b. Civil Service Board Rules: https://www.cityofsacramento.org/- /media/Corporate/Files/HR/Divisions/Admin/CivilServiceBoardRules62012.pdf ?la=en
c. Collective Bargaining Agreements:
https://www.cityofsacramento.org/HR/Divisions/Labor-Relations/Labor- Agreements
d. In addition, the City’s Conflict of Interest Code provides that employees may be subject to any form of discipline that is statutorily available for those participating in the selection, award or administration of a contract if a conflict of interest exists, as set forth in California Government Code, sections 81000-91014.

INDEX

$ D N
$250,000 ..... 5, 6, 7, 8, 9, 12, 13, Determination of Lowest Bid... 12 Non-Professional Service ......... 4 14, 15, 16 Non-Professional Services of
$25,000 ................... 7, 10, 11, 17 $250,000 or More ................. 7 $5,000 ............................... 6, 7, 8 E Non-Professional Services of

2 2/3 Vote .................................... 9

Emergency ............................ 3, 9
Emerging and Small Business
Enterprise ....................... 3, 16
Employee Conflict of
Interest/Ethics .................... 19
$5,000 or Less ...................... 6
Non-Professional Services of
More Than $25,000 And Less
Than $250,000 ..................... 7
Notice .................................... 7, 8
Esbe ............................. 3, 16, 17
A
Acceptance and Evaluation or
Rejection of Bids or
Proposals ........................... 11
Esbe Participation and Reporting
Requirements ..................... 16
Evaluation ............................... 12
Extension ................................ 16
O
Office of Small Business
Development ...................... 16
Other Competitive Methods ....... 9
Addendum ......................... 2, 11
Advertising ........................ 7, 8, 9
Amending or Canceling an IFB
or Rfp ................................ 11
G
P
General Requirements

Award ............. 4, 5, 7, 12, 13, 14 Applicable To All Non- Professional Services ........... 5

Payment Methods and Payment
Terms ................................. 18
Payment Voucher ...................... 4

B
I
Best Interest ....................... 8, 16

Procurement ..... 2, 3, 4, 5, 6, 8, 9,
10, 11, 12, 13, 16, 19
Procurement Guidelines2, 4, 6, 8

Bid Security/Bonds and
Insurance ............................13
Bid Specifications ................. 2, 3
IFB-Invitation For Bid... 2, 3, 4, 7,
10, 11, 12, 13, 18, 19
Project Manager .4, 6, 7, 8, 9, 10
Public Disclosure ..................... 11
Purchase Order ......................... 4
L
C R
Late Bids or Proposals ............ 11
City Charter .......................... 1, 2
City Clerk .................... 2, 7, 8, 13
City-Wide .......................... 3, 5, 6
City-Wide Contract ................... 3
Competitive Bidding .... 3, 7, 8, 10
Living Wage
Ordinance/Prevailing Wages
. .......................................... 17
Lowest Responsible Bidder ....... 3
Rejected ............ 8, 11, 12, 13, 14
Rejection of Bids ..................... 13
Renewal .................................. 16
Request For Proposal (RFP)2, 4,
9, 10, 11, 12, 13, 18, 19
Competitive Negotiation....... 8, 9 Required .... 5, 7, 8, 9, 10, 11, 13, Conflict ................................... 14
Contract ................ 3, 4, 7, 13, 16
Contract Form and
Documentation ................... 13
Contractor ........................... 3, 18
Contracts Manager 3, 5, 6, 7, 11,
12, 13, 14, 15
Contracts of $250,000 or More
. ......................................... 15
Cooperative Purchase ............ 10
Cooperative Service ................. 9
M
Master Services Contract .......... 6
Multi-Year Contracts ................ 16
Must .................................. 13, 16
14, 18
Responsive Bidder ................... 4
S
Same Services ..................... 5, 6
Special Requirements for
Contractors Who are Sole
Proprietors (Individuals) ..... 17
Splitting ..................................... 5
Supplemental Agreement ......... 5
T
Ten Calendar Days ................... 7
Transaction Number Log ......... 18
Shall ...3, 5, 6, 7, 8, 9, 10, 11, 12, Supplemental Agreements.. 18 13, 14, 15, 16, 17, 18, 19
Sole Source Procurement ...... 9, 10
Solicitation ............................ 4, 5
Solicitation Thresholds and
Requirements ...................... 5
Supplies .................................... 1
Supplies .................................... 2
Suspend Competitive Bidding . 9,
10 Suspension of Competitive
Bidding ................................. 9
W
When Competitive Bidding is Not
Required ............................... 8
Will .......................................... 16

Public Projects

FULL POLICY/GUIDELINE CONTENTS
Policy/Guideline Statement
Reason for Policy/Guideline
Procedures
Forms/Instructions
Contacts

ADDITIONAL DETAILS
Definitions
Appendices
FAQ
Related Information
History

Policy Number: AP-4002
Document Type: Policy
Version: 1.2
Initially Adopted: February 2010
(Resolution 2010-084)
Update Effective: March 13, 2020

Responsible Department/Division:

Finance / Procurement Division
Policy Statement
This Administrative Policy sets forth City policies that apply to contracting for public project work and supplements requirements set forth in the Sacramento City Charter and City Code, including City Code Chapters 3.56 and 3.60.

Special Situations
Not Applicable
Exclusions
Not Applicable

Purpose
To ensure that all contracting functions are performed in compliance with applicable Federal, State and City laws, regulations, ordinances and policies, to ensure the uniform and consistent application of the contracting process, and to ensure fairness, open competition, and competitive pricing.

Procedures
Formatted: Highlight
Formatted: Highlight

Forms/Instructions

Contacts
Department of Finance, Procurement Division
Office of the City Clerk
Office of the City Attorney

Related Information
• City Charter-Article XIV Public Contracts and Supplies • City Code 3.04, 3.56, 3.60
• Resolution No. 2010-084
• Administrative Policy (Signing Authority # 22)
• Procurement Guidelines
• Procurement Ethics and Standards of Conduct

Document History
Last Amended: March 13, 2020
Supersedes: API 48-Contracts for Public Projects
Adopted: February 2010

Definitions
Addendum
An amendment to a request for bid (RFB) or request for qualifications (RFQ) or proposals (RFP)solicitation.

Bid Specifications
Complete directions, provisions, requirements, plans and specifications for the performance of a public project. Bid specifications shall be included with the RFBsolicitation.

Change Order
An amendment to a contract for construction of a public project, that must be approved in accordance with the provisions of article VI of Chapter 3.04.02060 of the City Code.

Competitive Bidding
The process of soliciting bids and awarding a contract to the lowest responsive and responsible bidder.

Contract
Any binding contract document, regardless of what it is called, for the procurement of public projects. References to a “contract” shall be deemed to include all documents attached to or incorporated in the contract, which also may be referred to as the Formatted: Highlight
Formatted: Highlight
Formatted: Highlight
Formatted: Highlight
Formatted: Indent: Left: 0"
“contract documents.”.

Contracts Manager
A position or employee authorized by the Department Director to administer the contracting process for public projects on behalf of that Department. A Contracts Manager is not authorized to execute public project contracts or change orders on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

Contractor
A person, firm or other entity that contracts with the City to perform public project work.

Emergency Contracts
A contract initiated when the public interest and necessity demand immediate action, repair or replacement to safeguard life, health, or property, to permit the continued conduct of City operations or services, or to mitigate further damage.

Federal Micropurchase Threshold
The dollar amount at which the federal government has determined no competition is required to select a contractor.

Invitation for Bid or Request for Bids (IFB or RFB)
A written invitation or request for bids for a contract to be awarded to the lowest responsible bidder.notice issued to potential bidders that includes bid specifications and specifies, among other things, the procedures for bid submittal and place, date and time of bid opening.

Local Business
A business operating within the City of Sacramento or unincorporated County of Sacramento consistent with the City’s Local Business Enterprise Policy .

Lowest Responsible Bidder
The lowest responsible bidder determined in accordance with the criteria specified in City Code Section 3.560.020.

Master On-Call Contract
A contract for on- call work for a specified term.

Procurement
This term is intended to include all functions that pertain to obtaining the work, including the preparation of specifications and requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

Procurement GuidelinesProcedures
Written guidelines procedures developed by the Procurement Division City staff and approved by the City Manager that specify more detailed operational requirements Formatted: Font: Not Bold, Underline
Formatted: Not Highlight
guidance for City procurement, consistent with applicable provisions of the City Charter, City Code and Administrative Policy Instructions (APIs).

Project Manager
A position or employee authorized by the Department Director to administer a public project on behalf of the applicable Department. A Project Manager is not authorized to execute public project contracts or change orders on behalf of the City unless such signature authority has been delegated by the City Manager in accordance with applicable provisions of the City Code.

Purchase Order
A written authorization for a contractor to perform work at a specified price and over a specified period of time. In the absence of a contract executed by the City and Contractor, Aacceptance of the purchase order shall constitutes a contract and is legally binding agreement.on all parties. The use of a purchase order instead of a fully executed contract is subject to approval of the Procurement Division, the City Attorney’s Office, and the Risk Division.

Public Project
(1) A project for the erection, improvement and remodeling of public buildings or other public improvements, (2) street, sewer and water work (except maintenance or repair)*, and (3) furnishing supplies goods or materials for such projects. Maintenance and repair of public facilities, other than street, sewer or water facilities, constitutes public project work.
*The terms “maintenance” and “repair” are defined in City Code section 3.560.010.

Request for Bids (RFB)
A written notice issued to potential bidders that includes bid specifications and specifies, among other things, the procedures for bid submittal and place, date and time of bid opening.

Request for proposals (RFP)
A written request for proposals to perform specified public work for a contract that will be awarded on a basis other than the lowest responsible bid.to perform public project work, if permitted under Section 4 (Requirements for RFPs) below.

Request for Qualifications (RFQ)
A written request for the submission of qualifications to perform specified public project work. RFQs are used to solicit SOQs from prospective contractors, in order to identify contractors with adequate qualifications to perform the specified work.

Responsive Bidder
A bidder whose bid meets all of the bidding requirements in the RFBsolicitation.

Statement of Qualification (SOQ)
The written document submitted in response to an RFQ.

Standard Specifications
The City’s current Standard Specifications for Public Construction, which constitute one Formatted: Not Highlight
of the contract documents.

Definitions set forth in Chapter 3.56 of the City Code also apply.

Policy

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.1 GENERAL REQUIREMENTS APPLICABLE TO ALL PUBLIC

PROJECT WORK
(a) The City Code prohibits splitting or separating into smaller units any requirement for public project work for the purpose of evading the applicable requirements for competitive bidding and or City Council award that apply to contracts of $250,000 or more. The City Code defines this prohibited practice as reducing the size of the public project under circumstances where there is a reasonable knowledge that the remaining work after such reduction will be additionally required within the same budgetary term, that there are funds available for that project, and the purpose is to knowingly avoid formal competitive bidding. For emergency contracts, work requirements may be split into separate contracts of $250,000 or less, provided the requirements of City Code Section

3.56.26060.070 are met.

(b) To the extent practical, Departments shall use master on-call contracts for routine, recurring or on-call work, to maximize economic efficiencies.

(c) The solicitation and award procedures specified in this Policy for public project work vary depending on the amount of the procurement. For purposes of determining which solicitation and award procedures apply:

1. When an masteron-call contract is used, the amount of the procurement is the total amount to be spent over the potential life of the masteron-call contract or contracts (if multiple master on-call contracts are being let to multiple contractors for the same scope of work), or.

2. When an master on-call contract is not used, the amount of the procurement is the amount of the contract for a specific project and shall does not include any payments made under other contracts with the same contractor for different projects, subject to the requirements specified in subsection (a) above.

(d) The Contracts Manager shall be responsible for maintaining all bid documentation including analysis of bids, contractor notifications and contract award correspondence in accordance with the City's record retention policy. This shall include the responsibility for compiling and reporting data that will assist with ascertaining the utility of City community workforce training programs associated with the procurement process, such as the City’s equal benefits, disadvantaged business enterprise and any applicable emerging/small business enterprise requirements. The Formatted: Highlight
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numbering
Formatted: Font: 12 pt
Formatted: Not Highlight
Contracts Manager shall use standardized solicitation templatesRFB and RFP formats, as provided inby the Procurement Guidelines Division or another solicitation form approved by City Attorney’s Office . (e) Standard City contracts must be executed prior to the performance of any work and must be “approved as to form” by the City Attorney. A purchase order may be used in lieu of a contract for work of $5,000 or less, provided that the purchase order shall incorporate all applicable requirements for the work, and tThe contractor shall be required to meet the City’s standard insurance requirements, obtain a City Business Operations Tax Certificate and any other requirements specified in the applicable Procurement Guidelines procedures.
(f) Contracts less than $250,000 do not require the approval of the City Council and may be executed on behalf of the City by the City Manager or the City Manager’s designee. Delegations of approval authority are specified in API # 22. In the event of a declared emergency pursuant to City Code Chapter 2.116, the City Manager or the City Manager’s designee may supplement an existing contract by up to $249,999.99 (without regard to the original contract value)execute any contract or contract supplement for transactions less than $250,000 and related to the emergency response.

(g) For the performance of work in any amount, the contract amount shall be calculated based on the full cost of any term extensions provided for in the contract (e.g., the amount for a two-year contract in the amount of $40,000 per year, with an optional extension for year three, shall be based on the total three year term, for a contract amount of $120,000).

(g)(h) When purchases utilize non-city funding (i.e., federal, state, or local grant funds, or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, special terms may be required in the solicitation and/or the contract. Contract managers must consult with the City Attorney’s office to determine what additional or different terms may apply based on the funding source prior to issuing a solicitation.

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.21.1 PUBLIC PROJECT WORK OF $10,0005,000 OR LESS (MICROPURCHASING)

(a) Micropurchasing (Tthe procurement of public project work at a cost of $10,0005,000 or less) does not require competitive bidding and the contractor may be selected at the discretion of the Project Manager; provided that the Contracts Manager shall approve the procurement process. No minimum number of price quotations is required. (a)(b) The City Manager may approve adjustments to the threshold for micropurchasing, but may not exceed the Federal Micropurchase Threshold.

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(i) Price quotations shall must be written.1
(c) If price quotations are requested from more than one prospective contractor (even though they are not required), Aall prospective contractors contacted must be given the same information and they must be allowed adequate time to respond.
(b)(d) The City’s Local Business Enterprise (LBE) policy requirements do not apply to micropurchases, but contracting with a Local Business is encouraged.

1.31.2 PUBLIC PROJECT WORK OF MORE THAN $10,0005,000 UP TO AND INCLUDING $100,00025,000 (INFORMAL BIDDING)
(a) The Project Manager shall be responsible for soliciting bids from at least three prospective bidderscontractors, unless the Contracts Project Manager documents that the nature of the work is such that at least three bidders are not reasonably available to bid on the work. (a)(b) In addition to the application of the application of the 5% LBE Preference, as described in the City’s Local Business Enterprise Policy2, at least one of the bids solicited must be from a local business unless the Project Manager documents that the nature of the work cannot be provided by a local business or that a local business does not exist at the time of the solicitation.
(b)(c) Price quotations Bids shall must be written.3 All prospective bidders contractors contacted must be given the same information and the same amount of time to respond.
(c)(d) Contract award shall be made to the lowest responsive and responsible bidder as recommended by the Contracts Manager. (d)(e) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.

1.41.3 PUBLIC PROJECT WORK OF MORE THAN $100,00025,000 AND LESS THAN
$250,000 (FORMAL COMPETITIVE BIDDING)

(a) The issuance of a formal Invitation for Bids (IFB) or Request for Bids (RFB) and advertising on the City’s web site for Contracting Opportunities are is required.

1 If quotes are obtained over the phone, the contracts manager must document the information received. The Procurement Division has a standard form available for this purpose.
2 While the City’s LBE policy does not apply to federally funded contracts, the requirement to solicit at least one bid from a local business as part of the informal bidding process does apply to federally funded contracts as it is not a prohibited “preference.” 3 If bid information is obtained over the phone, the project manager must document the information received. The Procurement Division has a standard form available for this purpose.

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+ Level: 3 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.84" + Indent at: 1.15" Formatted: Indent: Left: 0.4", Hanging: 0.37", Outline numbered + Level: 2 + Numbering Style: 1, 2, 3, … +
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+ Level: 3 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.84" + Indent at: 1.15" (b) Bids must be obtained in writing, and all prospective bidders must be given the same information and the same time to respond. (c) All such bids shall be advertised on the City’s web site for Contracting Opportunities for a minimum of ten calendar days prior to the date set for receiving bids. The length of the Aadvertisement period of RFBs should be appropriate to the industry standards for the particular work, to achieve the maximum practical public notice and competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(d) Bids shall be received and opened by the Contracts Manager. (e) Contract award shall be made to the lowest responsive and responsible bidder as recommended by the Contracts Manager.
(f) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.
(f) Notice of the contract award shall be provided to all bidders as soon as reasonably practical to trigger the protest period. Notice may be provided by any form of media used by those participating in the bid process.
(g) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.
(g)

1.51.4 PUBLIC PROJECT WORK OF $250,000 OR MORE4 (FORMAL COMPETITIVE

BIDDING)
(a) The issuance of a formal IFB or RFB and advertising on the City’s website for Contracting Opportunities is required.
(a) Advertising through the City Clerk's office and competitive bidding is required for public project contracts with a cost of $250,000 or more. (b) Bids must be obtained in writing, and all prospective bidders must be given the same information and the same time to respond. (b)(c) The minimum time required for advertising solicitations All such bids shall be advertised on the City’s web site for Contracting Opportunities for a minimum of is fifteen calendar days prior to the date set for receiving bids . The length of the advertisement period should be appropriate to the industry standards for t he project to achieve maximum competition, and may be longer if necessary t o satisfy

4 For construction projects exceeding $1,000,000, based on the engineer’s estimate or actual contract price, the City must comply with its Community Workforce Training Agreement (CWTA) and Local Hire program.

Documents to include in bid documents, as well as internal implementation procedures for staff use can be found on Procurement’s website at:
https://nexus.sacramento.ca.gov/departments/finance/divisions/procurement/solicitation-templates. For projects that are subject to the CWTA and Local Hire program, staff should contact the City Attorney’s office with questions.

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Start at: 1 + Alignment: Left + Aligned at: 0.84" +
Indent at: 1.15"
requirements imposed by law or regulations, or applicable funding requirements.
(c)(d) Bidding shall be conducted in accordance with the requirements of City Code, Chapter 3.60, including A public bid opening of bids by the City Clerk’s office or designee shall be conducted.
(d)(e) Circumstances under which the City Code does not require competitive bidding for contracts of $250,000 or more are summarized in Section 2 (When Competitive Bidding is Not Required) of this Policy. (e)(f) Staff recommendations for awarding cContracts of $250,000 or more must be presented toawarded by the City Council for approval. (g) A Nnotice of contractor selectionintent to award shall be provided to all bidders as soon as reasonably practical to trigger the bid protest period.

(f)(h) Award is will be made to the lowest responsive and responsible bidder, unless a different action is taken by the City Council pursuant to the City Code.
(g)(i) Notice of contractor selection shall be provided to all bidders as soon as reasonably practical.Circumstances under which the City Code does not require competitive bidding for contracts of $250,000 or more Exceptions to the above requirements are summarizedprovided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.

2. WHEN COMPETITIVE BIDDING IS NOT REQUIRED

2.1 PUBLIC PROJECT WORK OF MORE THAN $10,0005,000 AND LESS THAN $250,000

(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s Office if using non-City funds.
(a)(b)The bidding requirements specified in Section 1 (Solicitations Thresholds and Requirements) of this policy, do not apply if any of the following conditions are met:

2. The contractor awarded a contract resulting from a City bid fails to enter into the contract. If this occurs, the next lowest bidder, if there is one, shall be awarded the contract, if such bidder’s price is acceptable. If there is no such bidder, a different procurement method may be used, provided the use of such method is documented and Formatted: Indent: Hanging: 0.38", Outline numbered
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approved as provided in subsection 3, below.

3. It is in the City's best interest to use a different procurement method.

This justification must be documented by the Project Manager, and the request to use a different procurement method must be approved by the Department Director and Procurement Manager in
accordance with applicable provisions of the Procurement Guidelines procedures. Examples of alternative procurement methods areinclude:
(i) Competitive negotiation: The Project Manager negotiates with two or more prospective contractors to obtain a contract for the lowest price.

Documentation shall be maintained of all negotiation discussions, terms, and offers.
(ii) Sole source procurement: After conducting a good faith review of available sources, the Project Manager determines there is only one reasonable and practicable source for the required public project work. (1) The following are other examples of circumstances that could necessitate a sole source procurement:
• When public project work is only available from a sole or single source based on that source’s unique capability or intellectual property rights. A requirement for a particular proprietary service does not justify a sole source procurement if more than one potential provider for that service is reasonably and practicably available.
• When, in the case of a follow-on contract for highly specialized project, it is likely that award to another contractor will result in: (1) substantial duplication costs; or (2) unacceptable delays the cost of which will exceed the costs expected to be recovered through competition. (ii) (2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of work or service will be suitable or acceptable to meet the need. Documentation shall be maintained of all negotiation discussions, terms, and offers. (iii) Prequalification: A Two-Step Request For Qualifications (RFQ)/Request for Proposals (RFP) process can be used to limit participation in the bidding process that follows to only those persons or firms determined to be qualified in accordance with the provisions of the preceding RFQ process. This can be done for a single project, or for multiple projects, as would be the case for approval of an on-call master list of contractors by trade or specialty to be used on specified projects. An RFQ/RFP process must be consistent with requirements of section 3 of this Policy. (iv) Use of One-Step Request For Proposals process: An RFP process is used to allow the award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors in addition to price, consistent with the provisions requirements of section 34 of this Policy.

Formatted: Indent: Left: 1.4", Hanging: 0.25", Outline numbered + Level: 5 + Numbering Style: i, ii, iii, … +
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(v) 4. Emergency contracts: When emergency conditions
render competitive bidding impractical, and the
determination of an emergency is approved by the
Department Director.
(vi)(i) 5. Cooperative service agreements or piggybacking: Aa competitively bid procured cooperative service agreement of another governmental jurisdiction or public agencies’y competitive contract without separate competitive bidding by the City.may be used, when supported by a market analysis showing that the prices and terms for the work to be performed are below or meet market rates. Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

4. 6. Federal or state law requires other selection procedures to be utilized.

5. 7. Maintenance, remodel, or repair work is performed by City employees.

2.2 PUBLIC PROJECT WORK OF $250,000 OR MORE
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used.
(b) These exceptions in this subsection do not affect the requirement for City Council to approve all contracts for $250,000 or more.
(c) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interest of the City. Questions concerning the applicability of competitive bidding requiremetns should be directed to the City Attorney’s Office.
(a)(d) Under City Code Section 3.56.23060.170, competitive bidding is not required for contracts of $250,000 or more under the following circumstances:

1. After advertising for bids as required, no valid bids are received or all bids received are rejected because they are invalid or nonresponsive. If this occurs, a different procurement method may be used, provided the use of such method is documented and approved by the City Council consistent with applicable provisions of the City Codeas provided in subsection 3 below.

1.2. The contractor awarded a contract fails to enter into the contract. If this occurs, the next lowest bidder, if there is one, shall be awarded the contract, if such bidder’s price is acceptable. If there is no such bidder, a different procurement method may be used, provided the use of such method is documented and approved as provided in subsection 3, below.

2.3. The City Council determines on a 2/3 vote that it is in the best Formatted: Indent: Left: 1.65", No bullets or
numbering
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+ Level: 3 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.84" + Indent at: 1.15" Formatted: Not Highlight
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interests of the City to suspend competitive bidding. The suspension of competitive bidding can be recommended for various reasons, including:
(i) Other competitive methods: Alternative methods for contractor selection, such as using a RFP process to allow the award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors in addition to price, a design-build or design- assist process, and/or selecting a contractor based on factors other than or in addition to price, may be utilized for contracts of
$250,000 or more if the City Council determines prior to conducting such alternative process (on a 2/3 vote) that it is in the City's best interests to suspend competitive bidding for this purpose. Any RFP process must be consistent with requirements of section 3 of this Policy.
(ii) Sole source procurement: After conducting a good faith review of available sources, the Department determines there is only one reasonable and practicable source for the required non- professional service.
(1) The following are examples of circumstances that could necessitate a sole source procurement:
• When the services are only available from a sole or single source based on that source’s unique capability or intellectual property rights. A requirement for a particular proprietary service does not justify a sole source procurement if more than one potential provider for that service is reasonably and practicably available.
• When, in the case of a follow-on contract for services, it is likely that award to another contractor will result in: (1) substantial duplication costs that are not expected to be recovered through competition; or (2) unacceptable delays, the cost of which will exceed the costs excpected to be recovered through competition.
(ii) The exceptions in this subsection may not be valid if certain state or federal fuds are used. (2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other source of work or service will be suitable or acceptable to meet the need. Documentation shall be maintained of all negotiation discussions, terms, and offers.
(iii) Prequalification: A RFQ process can be used to limit participation in the bidding process that follows to only those persons or firms determined to be qualified in accordance with the provisions of the preceding RFQ process. This can be done for a single project, or for multiple projects, as would be the case for approval of a master list of contractors by trade or specialty to be used on specified projects. An RFQ/RFP process must be consistent with requirements of section 3 of this Policy.

Formatted: Indent: Left: 1.47", Outline numbered +
Level: 5 + Numbering Style: i, ii, iii, … + Start at: 1 + Alignment: Left + Aligned at: 1.34" + Indent at: 1.65" Formatted: Numbered + Level: 1 + Numbering Style:
1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at:

1.78" + Indent at: 2.03"
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numbering
Formatted: Indent: Left: 1.47", Outline numbered +
Level: 5 + Numbering Style: i, ii, iii, … + Start at: 1 + Alignment: Left + Aligned at: 1.34" + Indent at: 1.65" (iv) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interests of the City. Questions concerning the applicability of competitive bidding requirements should be directed to the City Attorney’s Office.

4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

5. Cooperative service agreements or piggybacking: Services may be obtained through a competitively bid cooperative service agreement or piggybacking of other public agencies’ contracts. Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

3. 6. Maintenance, remodel, or repair work is performed by City employees.

4. 3. REQUESTS FOR BIDS (RFB)SOLICITATION METHODS

3.3.1 INVITATION FOR BIDS (IFB) / REQUESTS FOR BIDS (RFB) (a) IFBs or RFBs must be used for the procurement of public project work costing more than $100,00025,000, except as otherwise provided in Section 2 (When Competitive Bidding is Not Required) of this Policy.

This does not preclude the use of IFBs or RFBs for procurements below this threshold.
(b) The Project Manager shall bear the overall responsibility for the preparation of bid specifications, utilizing a standardized IFB/RFB format, as provided in by the Procurement GuidelinesDivision or otherwise approved by the City Attorney’s office.
(c) The bid specifications shall contain a complete scope of work for the construction work to be performed, and shall conform to the City's Standard Specifications.

4.2. 3.2 REQUIREMENTS FOR RFPSOTHER PROCUREMENT METHODS (WHEN

COMPETITIVE BIDDING IS WAIVED)
(a) Alternative procurement methods to IFB or RFB should only be used where appropriate and practical, and as authorized under Section 2 (When Competitive Bidding is not Required) of this Policy. (b) A one-step RFP or RFQ must meet the requirements set forth in AP 4102 – Professional Services, and applicable Procurement procedures, unless an alternative to the standard RFP or RFQ process is specifically approved pursuant to Section 2.

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Left + Aligned at: 0.4" + Indent at: 0.78"
Formatted: Left
(c) A two-step RFP/RFQ must meet the requirements set forth AP 4102 – Professional Services and applicable Procurement procedures, unless an alternative to the standard RFP/RFQ process is specifically approved pursuant to Section 2.
(a) An RFP may be used to solicit public project work if authorized as required under Section 2 (When Competitive Bidding is Not Required) of this policy.
(b) The Project Manager shall bear the overall responsibility for the preparation of an RFP, in compliance with all applicable provisions of the Procurement Guidelines Manual.

5.4. ITEMS REQUIRING REVIEW PRIOR TO AN RFB OR RFP SOLICITATION (a) Public project contracts that will include the provision of materials or equipment to be installed, configured or maintained may require a materials or equipment review by other City departments or divisions before the selection process is initiated. Such reviews are intended to ensure consistency and conformity with City standards and building codes. These reviews are required regardless of the contract amount. (b) Materials or equipment review prior to issuance of a solicitationRFB or RFP is required in the following situations by the Department or divisions indicated below:

1. Installed computer-related equipment such as UPS, energy management, fiber connections, SCADA and other information technology items or services — review by Department of Information Technology.

2. Green Building Rating SystemTM LEED (Leadership in Energy and Environmental Design) materials or equipment — review by the Facilities and Real Property Management Division (Department of Public Works).

3. Installations at facilities or sites that require new construction, remodeling, modifications, electrical, mechanical, plumbing, or structural changes in City facilities, as well as the installation of systems furniture or interior design work (except facilities or sites within the street right of way) — review by the Facilities and Real Property Management Division (Department of Public Works).

6.5. AMENDING OR CANCELING AN RFB OR RFP SOLICITATION
(a) An addendum shall be used to amend or cancel a solicitationn RFB or RFP, and shall be issued not less than three working days before the deadline specified for receipt of bids or proposals. Addendums extending the deadline or cancelling the solicitation may be issued less than three working days before such date if necessary.

Formatted: Indent: Left: 0.15", Hanging: 0.5", Outline numbered + Level: 1 + Numbering Style: 1, 2, 3, … +
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(b) The minimum components required for addendums are identified in applicablethe Procurement Guidelinesprocedures.
(c) The addendum should be published using the same media used to advertise the original solicitationRFB or RFP, including the City website. Addendums shall be sent to all prospective
bidders/proposers known to have received a solicitationn RFB or RFP.

7.6. PUBLIC DISCLOSURE
(a) RFBs and RFPsSolicitations for public project work of $100,000 25,000 or more shall be available for public inspection at the office of the Contracts Manager and shall be posted on the City website for Contracting Opportunities.
(b) After bid opening, bids shall be made available in response to an official request for public inspection, in accordance with the California Public Records Act.
(d) Proposals submitted in response to an RFP shall be made available in response to an official request for public inspection after the proposal evaluation solicitation process is complete, in accordance with the California Public Records Act.
(e) If the bidder or proposer designates any portion of its bid as proprietary or confidential, or any other public disclosure issues are presented, the Contracts Manager shall consult with the City Attorney’s Office prior to any response or disclosure.

8.7. ACCEPTANCE AND EVALUATION OR REJECTION OF BIDS OR PROPOSALS

8.17.1 LATE BIDS OR PROPOSALS
(a) A bid or proposal is late if it is received at the location designated in the RFB or RFPsolicitation after the deadline specified in the RFB or RFPsolicitation.
(b) A late bid or proposal shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.
(c) A late bid or proposal shall not be opened, except (if necessary), for identification purposes. Delivery and return of late bids or proposals shall be handled in the following manner:

1. If delivered in person, a late bid or proposal should be rejected and returned to the person delivering it (failure to reject it at the time of delivery does not constitute acceptance);

2. If not delivered in person, a late bid or proposal should be returned by certified mail;
Formatted: Left, Indent: Left: 0.15", Hanging: 0.31", Outline numbered + Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 0.15" + Indent at: 0.4"
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+ Level: 3 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.84" + Indent at: 1.15" Formatted: Indent: Left: 1.22", Hanging: 0.25", Outline numbered + Level: 4 + Numbering Style: 1, 2, 3, … +
Start at: 1 + Alignment: Left + Aligned at: 1.03" +
Indent at: 1.34"

3. Bidders or proposers submitting late bids or proposals that will not be considered for award shall be notified as soon as practicable.

8.27.2 GENERAL REQUIREMENTS FOR ACCEPTANCE AND EVALUATION (a) Bids or proposals shall not be altered or corrected after opening, except for minor irregularities as specified in the bid solicitation specifications and/or the City Code. A bid or proposal may be withdrawn only if so authorized in the bid solicitation specifications or under State law. (b) For bids or proposals of $250,000 or more, only Council has the authority to waive minor irregularities. For bids or proposals valued at less than $250,000, the City Manager or designee has the authority to waive minor irregularities.
(c) No criteria may be used in bid or proposal evaluations that are not referenced in the bid specifications or RFPsolicitation or in applicable provisions of the City Code, other applicable laws or regulations or contract documents.
(c)(d) When an RFP process is used (if authorized instead of an IFB, as noted above), no discussions for any purpose other than administrative clarification may be conducted with proposers after submission of proposals, except during the presentation phase, if any.

8.37.3 DETERMINATION OF LOWEST BID
(a) For an IFB or RFB, the contract shall be awarded to the lowest responsive and responsible bidder.
(b) If a bidder that otherwise would have been the lowest responsible bidder is determined to be non-responsible, after consulting with the City Attorney’s office, the Contracts Manager shall prepare a written determination of non-responsibility, setting forth the basis of the finding of non-responsibility and advising the bidder that it may request a Bid Protest hearing on the matter, and shall send such determination to the bidder by certified mail.
(c) If there are two or more low responsive bids from responsible bidders that are identical in price, and both meet all the requirements and criteria set forth in the IFB or RFB, then award, if made, shall be made by a drawing of lots.

8.47.4 ADDITIVE OR DEDUCTIVE BID ITEMS
(a) The evaluation of bids for public projects containing additive or deductive items shall comply with Public Contract Code Section 20103.8.

8.57.5 REJECTION OF BIDS

(a) For contracts less than $250,000, the Department Director or the Formatted: Indent: Left: 0.47", Hanging: 0.43", Outline numbered + Level: 2 + Numbering Style: 1, 2, 3, … +
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Indent at: 1.15"
Contracts Manager shall have the authority to reject a bids, after consulting with the City Attorney’s office.
(b) For contracts of $250,000 or more, only the City Council has the authority to reject any valid bids.

7.6 NOTICE OF INTENT TO AWARD
A notice of intent to award shall be provided for all published solicitations as soon as reasonably practical to trigger the protest period. The Bid Protest Policy approved by the City Manager may also apply to informal solicitations.

8.67.7 CONTRACT FORM AND DOCUMENTATION
(a) AThe current standard contract form, as approved by the City Attorney’s office, or other appropriate contract form as approved by the City Attorney’s office shall be executed prior to starting any work., provided that a purchase order may be used in lieu of a contract for work of $5,000 or less, so long as the purchase order incorporates all applicable requirements for the work, and tCurrent citywide approved forms are available on the Procurement page on the City’s intranet. The contractor must meets the City’s standard insurance requirements and any other requirements, and obtains a Business Operations Tax Certificate number, as specified in the Procurement Guidelines Manualprocedures. (b) For contracts of $250,000 or more, the contract must be signed by the contractor and the City Attorney’s Office, and submitted to the City Clerk, prior to City Council award of the contract.
(c) For all levels of contract award, contract documents must be fully executed (obtain all signatures and provide any required contract documents) prior to performance of the contract.

9.8. BID SECURITY, BONDS AND INSURANCE

9.18.1 BID SECURITY
(a) Bids require bid security (such as a bid bond or cashier’s check) unless this requirement is waived as specified in the Standard Specifications. Bid security shall be provided in a standardized format specified in the Procurement Guidelines and/or Standard Specifications and included in of the RFBsolicitation. (b)(a) Bids received without the required security shall be considered non- responsive and will be rejected.
(c)(b)Bid security shall be returned to unsuccessful bidders after a successful bidder is selected and awarded the contract. (d)(c) Bid security may be forfeited and applied as specified in the Standard Specifications.

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+ Level: 3 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.84" + Indent at: 1.15" Formatted: Justified, Indent: Left: 0.15", Hanging:

0.31", Outline numbered + Level: 1 + Numbering Style:
1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at:

0.15" + Indent at: 0.4"
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Formatted: Indent: Left: 0.84", Outline numbered +
Level: 3 + Numbering Style: a, b, c, … + Start at: 1 +
Alignment: Left + Aligned at: 0.84" + Indent at: 1.15"

9.28.2 PERFORMANCE AND PAYMENT BONDS
(a) Performance and payment bonds are required for public project contracts exceeding $25,000, as provided in the Standard Specifications and as required by State law (for payment bonds). (b) The bond requirements shall be described in the RFB or RFPsolicitation, and shall conform to applicable provisions of the Procurement Guidelinesprocedures.
(c) Bonds shall be accepted only from sureties admitted and duly authorized to transact business in the State of California, and shall be approved as to form by the City Attorney’s office.
(d) Failure to submit the required bonds within the time specified in the notice of award shall be just cause for annulment of the award and forfeiture of the bidder's bid security.

9.38.3 INSURANCE
(a) All insurance requirements specified in the current standard contract form must be satisfied when and as specified in the contractprior to approval and execution of the contract by the City, unless otherwise approved by Risk Management.
(b) Additional insurance requirements may apply depending upon the project being contracted for. Departments must consult with the Risk Division on any additional insurance requirements to be added to solicitations and/or contracts.
(b)(c)All changes to contractual provisions including insurance requirements proposed by contractors must be reviewed by Risk Management and approved by the Department Director prior to contract award/approval and /execution by the City.

10.9. BID PROTEST

10.1 CONTRACTS OF MORE THAN $100,0005000 AND LESS THAN $250,000 (a) A bidderBidders or proposers who respond to a solicitation on a contract may file a bid protest in accordance with policies adopted by the City Manager’s office and posted on the City’s website. (1) claiming that one or more bidders on the contract should be disqualified or rejected for any reason, or (2) contesting a City staff recommendation to award the contract to a particular bidder, or (3) contesting a City staff recommendation to disqualify or reject one or more bidders on the contract. Only a bidder may file a bid protest on a contract.

(b) The bid protest shall be in writing and shall be filed with the Contracts Manager not later than five working days after City staff provides notice Formatted: Indent: Left: 0.47", Hanging: 0.43", Outline numbered + Level: 2 + Numbering Style: 1, 2, 3, … +
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of the recommended contract award to the bidders. The bid protest shall provide the name, address, telephone and telecopier numbers of the protesting bidder, shall identify the contract to which the bid protest pertains, including the contract number and date that bids for such contract were received by the City, and shall identify the City department or division requesting bids. The bid protest shall identify and explain the factual and legal grounds for the protest, and shall include and attach any written materials that the protesting bidder wishes to have considered in determining the protest.

(c) At the time a bid protest is filed, the protesting bidder also shall make payment to the Contracts Manager of a bid protest fee in the amount established by resolution of the City Council, which fee shall be used to pay the City’s costs of processing the protest as provided herein.

(d) Any bid protest that is received by the Contracts Manager after the time period specified above, or that is not accompanied by the bid protest fee, shall be untimely and invalid, and shall not be considered.

(g) Any bid protest, notice or bid protest response provided by or to the City shall be provided by registered or certified mail (return receipt requested), by telecopy, by personal delivery or by any other method that provides reliable evidence of the date of receipt. Written notice provided by telecopy shall be deemed received on the date that it is transmitted and transmission is confirmed by the transmitting machine. Written notice provided by personal delivery shall be deemed received on the date of Formatted: List Paragraph, Indent: Hanging: 0.5",
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delivery.

10.2 CONTRACTS OF $250,000 OR MORE

Bid protests on contracts of $250,000 or more shall be filed and processed in accordance with the provisions of Article X of Chapter 3.60 of the Sacramento City Code (commencing with City Code Section 3.60.460 ).

10. ESBE SMALL AND/OR DISADVANTAGED BUSINESS PARTICIPATION AND

REPORTING REQUIREMENTS

11. The City may adopt an ordinance or program which allows departments to give preference to small and/or disadvantaged businesses during bid or proposal evaluation.

Upon adoption of any such ordinance or program, the following will apply:

(a) Emerging and Small Business Enterprise (ESBE) Program requirements shall be met for all contracts as specified in the Procurement Guidelines procedures, unless these requirements are reduced or waived by the Office of Small Business Development (OSBD) Department Director, or an external funding source prohibits the use of such preferences or requires the use of other business enterprise requirements.

(b) Any modification or waiver of an ESBE applicable requirements must be requested in writing and approved by the OSBD Department Director prior to any advertisement or posting to the City’s website for Contracting Opportunities.
(c) Departments shall be responsible for meeting any related annual ESBE participation goals on a Department-wide
basis.
(d) The OSBD Procurement Division shall compile data relative to ESBE program expenditures and utilization and submit periodic reports to the City Manager detailing contract amounts and ESBE participation rates.

11. EQUAL BENEFITS CITY ORDINANCES

12. Various City Ordinances may apply to solicitations for Public Projects.

Solicitations for which such ordinances apply shall contain ordinance requirements and standard forms and declarations as available. The contracts manager is responsible for reviewing required forms and declarations and applying preferences as required during the evaluation process.
(a) Equal Benefits Ordinance: Contracts exceeding $25,000 thresholds set in City Code section 3.54 are subject to applicable provisions of the City’s Non-Discrimination in Employee Benefits Code, codified at Chapter

3.54 of the City Code (commonly referred to as the Equal Benefits Ordinance, or EBO) and as outlined in API#53.
(b) All solicitations shall contain the City’s standard EBO Requirements.

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(c) All contracts to which the EBO applies shall contain an executed EBO Declaration of Compliance.

More detailed information concerning the EBO requirements is set forth in API 53
(b) Drug Free Workplace: All contractors for public projects comply with the City’s drug-free workplace requirements as outlined in the City Council Resolution 90-498.
(c) Ban the Box: Contracts exceeding thresholds set in City Code section

13.12. PREVAILING WAGES; USE OF APPRENTICES
(a) The City Code mandates requires that public project contracts for construction originally awarded in an amount exceeding $25,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773. “Construction” includes work performed during the design and other preconstruction phases, including, but not limited to, land surveying and materials testing, as well as postconstruction phases including, but not limited to, inspection services.
(a)(b) The City Code also requires that contracts for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773.

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(c) Bid specifications for public projects for construction exceeding $25,000 shall include prevailing wage requirements.
(b)(d) Bid specifications for public projects for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 shall include prevailing wage requirements.
(c)(e)More specific requirements relating to prevailing wages for public projects are specified in City Code Section 3.60.040180.
(f) Apprentices are required on all public project contracts originally awarded in an amount exceeding $30,000. More specific requirements relating to the use of apprentices are specified in City Code section 3.60.050the Procurement Guidelines Manual.
(d)(g) The City Manager may approve adjustments to the thresholds above for prevailing wage and apprentice requirements to maintain consistency with State law.

14.13. SPECIAL REQUIREMENTS FOR CONTRACTORS WHO

ARE SOLE PROPRIETORS (INDIVIDUALS)
(a) The City Code requires that contracts for construction related services, including work performed during the design and other preconstruction phases (such as land surveying and materials testing), as well as postconstruction phases (such as inspection services) originally awarded in an amount exceeding $25,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773. (b) The City Code also requires that contracts for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773.
(c) More specific requirements relating to prevailing wages requirements and apprentice requirements are specified in City Code Section

3.60.040 and AP 4002 – Public Projects.
(a) When the contractor is not a business entity (such as a corporation, partnership, etc.) and utilizes a personal social security number as their Federal or State tax identification number, all transactions with such individuals must be entered into the City's financial system within ten working days after execution of a contract, or ten working days after the date services are commenced, whichever occurs first.
(b) This includes any City contract with a contractor who is a sole proprietor.

15.14. CHANGE ORDERS AND CONTRACT AMENDMENTS
(a) Change orders a n d c o n t r a c t a m e n d m e n t s for public projects may be approved by the City Manager or authorized Formatted: Not Highlight
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designee, within the limits of approval authority specified in article VI of City Code Chapter 3.60City Code section 3.04.020. Change orders or amendments exceeding these limits must be approved by the City Council.
(b) Delegations of approval authority are specified in API 22. (c) Any change order or am endm ent extending the term of a contract must be approved prior to expiration of the contract term.

16.15. PAYMENT METHODS AND PAYMENT TERMS

16.1 15.1 PAYMENT METHODS
(a) Original invoices are required for payment of all contracts. (b) Payments for contracts over $25,000 must include an approved Pay Request Application and Schedule of Values.
(c) More specific requirements are set forth in the contract documents and Procurement Guidelines.

16.2 15.2 PAYMENT TERMS
(a) Progress payments and project retention, as applicable, may be reduced by any deduction or withholding authorized under the contract, and shall be reduced by the amount of any stop notice until a verified release of stop notice is provided on a City-approved form or a release bond is accepted by the City.

(b) Time limits for progress payments and the release of retention are shall be set forth in the contract documents. and Procurement Guidelines.

(c) A Notice of Completion must be filed with the Sacramento County Recorder’s Office within ten days after the date that the City accepts the work as complete.

17.16.TRANSACTION NUMBER LOG

(a) Each Department shall establish and maintain a transaction number log for all Department solicitations for which an formal solicitation IFB or RFP is issued. The transaction number log shall be organized based on solicitations initiated within each Department.

(b) A transaction number shall be assigned to each IFB or RFPpublished solicitation, and will be used to identify and track all related activity through requisition and payment, if applicable.

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18.17. EMPLOYEE CONFLICT OF INTEREST/ETHICS
(a) All procurement activities shall be performed in compliance with the provisions of the Procurement Ethics and Standards of Conduct Policy.

Pursuant to the City’s adopted Conflict of Interest Code, no employee, officer, or agent of the City may participate in the solicitation, award or administration of a contract (including purchase orders) if they have a real or apparent conflict of interest. A real or apparent conflict of interest would arise if any prospective or existing consultant or contractor (or any subcontractor) considered for an award is:

a. Discipline Procedures & Review Standards:
https://records.cityofsacramento.org/ViewDoc.aspx?ID=s6tFBnt4W+IJi2YxhaL Q5nZ3jqzJu8Xg
b. Civil Service Board Rules: https://www.cityofsacramento.org/- /media/Corporate/Files/HR/Divisions/Admin/CivilServiceBoardRules62012.pdf?l a=en
c. Collective Bargaining Agreements:
https://www.cityofsacramento.org/HR/Divisions/Labor-Relations/Labor- Agreements
d. In addition, the City’s Conflict of Interest Code provides that employees may be subject to any form of discipline that is statutorily available for those participating in the selection, award or administration of a contract if a conflict of interest exists, as set forth in California Government Code, sections 81000-91014.

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Index

$ D P

$250,000........ 5, 6, 7, 8, 9, 13, 14
$25,000....6, 7, 10, 12, 14, 16, 17
$5,000...............................6, 8, 13

2 2/3 Vote .......................................9
A
Addendum ........................... 2, 11
Additive or Deductive Bid Items
Delegations of Approval
Authority ......................... 6, 17
Documentation ........................ 13
E
Emergency Contracts ............... 9
Emergency Contracts ............... 3
Equal Benefits Ordinance ...... 16
ESBE ........................................ 16
Ethics ....................................... 18
Evaluation .......................... 12, 13
Payment Methods ................... 17
Payment Terms ................. 17, 18
Performance ............................ 14
Prequalification ................... 9, 10
Prevailing Wages .................... 17
Procurement ... 2, 3, 5, 6, 8, 9,10,
11, 14, 16, 17, 18
Project Manager ... 4, 6, 8, 10, 11
Proprietary or Confidential ... 12
Public Disclosure .................... 12
Public Project ...................... 4, 11
Purchase Order ......................... 4

.......................................... 13 R
Advertising ........................ 7, 8, 9
Alternative Procurement
Methods ................................ 8
Apprentices ............................. 17
Award ....3, 5, 6, 7, 12, 13, 14, 15
B
Bid Opening ........................ 4, 12
Bid Security ............................. 14
G

General Requirements ....... 5, 13
Green Building Rating System tm
Leed .................................... 11

History ....................................... 2

Rejection ........................... 12, 13
Responsive Bidder......................4
RFB 2, 4, 6, 7, 10, 11, 12, 13, 14
RFP 2, 4, 6, 9, 10, 11, 12, 13, 14
RFQ..............................2, 4, 9, 10
S
Shall.......................................... 18
Bid Specifications.... 2, 4, 10, 13 Sole Proprietors ....................... 17 Bidders ........... 4, 6, 7, 11, 13, 14
Bidding ........... 4, 5, 6, 7, 8, 9, 10
Bonds ...................................... 14
Business Operations Tax
I
Insurance ........................... 14, 15
Sole Source.................................8
SOQ ........................................... 4
Standard Specifications 4, 10, 14
Supplies ..................................... 2
Certificate ...................... 6, 14
L
C Late........................................... 12
Lowest Bid ............................... 13
Change Order ..................... 2, 17
City Charter ............................... 2
City Clerk ............................. 7, 14
Competitive Bidding ................. 3
Lowest Responsible Bidder........3
Lowest Responsive and
Responsible Bidder 3, 7, 8, 13
Competitive Negotiation........... 8
Computer.................................. 11
Conflict ..................................... 15
Conflict Of Interest ................... 18
Contract ................ 2, 3, 7, 13, 14
Contract Form ......................... 13
M

Maintenance .................... 4, 9, 10
Master .............................. 5, 9, 10
Contractor ................................ 3
Contracts Manager... 3, 6, 12, 13 N
Notice ..........................................8
Notice of Completion ............... 18
O
Office of Small Business
Development (OSBD) ........ 16

Public Projects

FULL POLICY/GUIDELINE CONTENTS
Policy/Guideline Statement
Reason for Policy/Guideline
Procedures
Forms/Instructions
Contacts

ADDITIONAL DETAILS
Definitions
Appendices
FAQ
Related Information
History

Policy Number: AP-4002
Document Type: Policy
Version: 1.2
Initially Adopted: February 2010
(Resolution 2010-084)
Update Effective: March 13, 2020

Responsible Department/Division:

Special Situations
Not Applicable
Exclusions
Not Applicable

Purpose
To ensure that all contracting functions are performed in compliance with applicable Federal, State and City laws, regulations, ordinances and policies, to ensure the uniform and consistent application of the contracting process, and to ensure fairness, open competition, and competitive pricing.

Procedures

Forms/Instructions

Contacts
Department of Finance, Procurement Division
Office of the City Clerk
Office of the City Attorney

Related Information
 City Charter-Article XIV Public Contracts and Supplies  City Code 3.04, 3.56, 3.60
 Resolution No. 2010-084
 Administrative Policy (Signing Authority # 22)

Document History
Last Amended: March 13, 2020
Supersedes: API 48-Contracts for Public Projects
Adopted: February 2010

Definitions
Addendum
An amendment to a solicitation.

Bid Specifications
Complete directions, provisions, requirements, plans and specifications for the performance of a public project. Bid specifications shall be included with the solicitation.

Change Order
An amendment to a contract for construction of a public project, that must be approved in accordance with the provisions of Chapter 3.04.020 of the City Code.

Competitive Bidding
The process of soliciting bids and awarding a contract to the lowest responsive and responsible bidder.

Contractor
A person, firm or other entity that contracts with the City to perform public project work.

Federal Micropurchase Threshold
The dollar amount at which the federal government has determined no competition is required to select a contractor.

Invitation for Bid or Request for Bid (IFB or RFB)
A written invitation or request for bids for a contract to be awarded to the lowest responsible bidder.

Local Business
A business operating within the City of Sacramento or unincorporated County of Sacramento consistent with the City’s Local Business Enterprise Policy.

Lowest Responsible Bidder
The lowest responsible bidder determined in accordance with the criteria specified in City Code Section 3.56.020.

On-Call Contract
A contract for on-call work for a specified term.

Purchase Order
A written authorization for a contractor to perform work at a specified price and over a specified period of time. In the absence of a contract executed by the City and Contractor, acceptance of the purchase order shall constitute a binding agreement. The use of a purchase order instead of a fully executed contract is subject to approval of the Procurement Division, the City Attorney’s Office, and the Risk Division.

Public Project
(1) A project for the erection, improvement and remodeling of public buildings or other public improvements, (2) street, sewer and water work (except maintenance or repair)*, and (3) furnishing goods or materials for such projects. Maintenance and repair of public facilities, other than street, sewer or water facilities, constitutes public project work.
*The terms “maintenance” and “repair” are defined in City Code section 3.56.010.

Request for proposals (RFP)
A written request for proposals to perform specified public work for a contract that will be awarded on a basis other than the lowest responsible bid..

Request for Qualifications (RFQ)
A written request for the submission of qualifications to perform specified public project work. RFQs are used to identify contractors with adequate qualifications to perform the specified work.

Responsive Bidder
A bidder whose bid meets all of the bidding requirements in the solicitation.

Statement of Qualification (SOQ)
The written document submitted in response to an RFQ.

Standard Specifications
The City’s current Standard Specifications for Public Construction, which constitute one of the contract documents.

Definitions set forth in Chapter 3.56 of the City Code also apply.

Policy

GENERAL REQUIREMENTS APPLICABLE TO ALL PUBLIC PROJECT
WORK
(a) The City Code prohibits splitting or separating into smaller units any requirement for public project work for the purpose of evading the applicable requirements for competitive bidding or City Council award. The City Code defines this prohibited practice as reducing the size of the public project under circumstances where there is a reasonable knowledge that the remaining work after such reduction will be additionally required within the same budgetary term, that there are funds available for that project, and the purpose is to knowingly avoid formal competitive bidding. For emergency contracts, work requirements may be split into separate contracts of $250,000 or less, provided the requirements of City Code Section 3.56.260 are met.

(b) To the extent practical, Departments shall use on-call contracts for routine, recurring work, to maximize economic efficiencies.

1. When an on-call contract is used, the amount of the procurement is the total amount to be spent over the potential lifeof the on-call contract or contracts (if multiple on-call contracts are being let to multiple contractors for the same scope of work), or

2. When an on-call contract is not used, the amount of the procurement is the amount of the contract for a specific project and does not include any payments made under other contracts with the same contractor for different projects, subject to the requirements specified in subsection (a) above.

(d) The Contracts Manager shall be responsible for maintaining all bid documentation including analysis of bids, contractor notifications and contract award correspondence in accordance with the City's record retention policy. This shall include the responsibility for compiling and reporting data that will assist with ascertaining the utility of City community workforce training programs associated with the procurement process, such as the City’s equal benefits, disadvantaged business enterprise and any applicable emerging/small business enterprise requirements. The Contracts Manager shall use standardized solicitation templates, as provided by the Procurement Division or another solicitation form approved by City Attorney’s Office.
(e) City contracts must be executed prior to the performance of any work and must be “approved as to form” by the City Attorney. The contractor shall be required to meet the City’s standard insurance requirements, obtain a City Business Operations Tax Certificate and any other requirements specified in applicable Procurement procedures.
(f) Contracts less than $250,000 do not require the approval of the City Council and may be executed on behalf of the City by the City Manager or the City Manager’s designee. Delegations of approval authority are specified in API # 22. In the event of a declared emergency pursuant to City Code Chapter 2.116, the City Manager or the City Manager’s designee may supplement an existing contract by up to $249,999.99 (without regard to the original contract value) for transactions related to the emergency response.

(h) When purchases utilize non-city funding (i.e., federal, state, or local grant funds, or other outside funding sources), purchasing must be completed in accordance with all requirements imposed by the funding entity and applicable laws and regulations. As a result, special terms may be required i n the solicitation and/or the contract. Contract managers must consult with the City Attorney’s office to determine what additional or different terms may apply based on the funding source prior to issuing a solicitation.

1. SOLICITATION THRESHOLDS AND REQUIREMENTS

1.1 PUBLIC PROJECT WORK OF $10,000OR LESS (MICROPURCHASING)

(a) Micropurchasing (the procurement of public project work at a cost of $10,000or less) does not require competitive bidding and the contractor may be selected at the discretion of the Project Manager; provided that the Contracts Manager shall approve the procurement process. No minimum number of price quotations is required.
(b) The City Manager may approve adjustments to the threshold for micropurchasing, but may not exceed the Federal Micropurchase Threshold.
(c) Price quotations must be written.1
(d) If price quotations are requested from more than one prospective contractor (even though they are not required), all prospective contractors contacted must be given the same information and they must be allowed adequate time to respond.
(e) The City’s Local Business Enterprise (LBE) policy requirements do not apply to micropurchases, but contracting with a Local Business is encouraged.

1.2 PUBLIC PROJECT WORK OF MORE THAN $10,000 UP TO AND INCLUDING $100,000 (INFORMAL BIDDING)
(a) The Project Manager shall be responsible for soliciting bids from at least three prospective contractors, unless the Project Manager documents that the nature of the work is such that at least three bidders are not reasonably available to bid on the work.

1 If quotes are obtained over the phone, the contracts manager must document the information received. The Procurement Division has a standard form available for this purpose.
(b) In addition to the application of the application of the 5% LBE Preference, as described in the City’s Local Business Enterprise Policy2, at least one of the bids solicited must be from a local business unless the Project Manager documents that the nature of the work cannot be provided by a local business or that a local business does not exist at the time of the solicitation.
(c) Bids must be written.3 All prospective contractors contacted must be given the same information and the same amount of time to respond. (d) Contract award shall be made to the lowest responsive and responsible bidder as recommended by the Contracts Manager. (e) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.

1.3 PUBLIC PROJECT WORK OF MORE THAN $100,000 AND LESS THAN $250,000 (FORMAL COMPETITIVE BIDDING)

(a) The issuance of a formal Invitation for Bids (IFB) or Request for Bids (RFB) and advertising on the City’s website for Contracting Opportunities is required.
(b) Bids must be obtained in writing, and all prospective bidders must be given the same information and the same time to respond. (c) All such bids shall be advertised on the City’s website for Contracting Opportunities for a minimum of ten calendar days prior to the date set for receiving bids. The length of the advertisement period should be appropriate to the industry standards for the particular work, to achieve the maximum competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(d) Bids shall be received and opened by the Contracts Manager. (e) Contract award shall be made to the lowest responsive and responsible bidder.
(f) Notice of the contract award shall be provided to all bidders as soon as reasonably practical to trigger the protest period. Notice may be provided by any form of media used by those participating in the bid process.
(g) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.

2 While the City’s LBE policy does not apply to federally funded contracts, the requirement to solicit at least one bid from a local business as part of the informal bidding process does apply to federally funded contracts as it is not a prohibited “preference.” 3 If bid information is obtained over the phone, the project manager must document the information received. The Procurement Division has a standard form available for this purpose.

1.4 PUBLIC PROJECT WORK OF $250,000 OR MORE4 (FORMAL COMPETITIVE

BIDDING)
(a) The issuance of a formal IFB or RFB and advertising on the City’s website for Contracting Opportunities is required.
(b) Bids must be obtained in writing, and all prospective bidders must be given the same information and the same time to respond. (c) The minimum time required for advertising solicitations on the City’s website for Contracting Opportunities is fifteen calendar days. The length of the advertisement period should be appropriate to the industry standards for the project to achieve maximum competition, and may be longer if necessary to satisfy requirements imposed by law or regulations, or applicable funding requirements.
(d) A public bid opening by the City Clerk or designee shall be conducted. (e)
(f) Contracts of $250,000 or more must be awarded by the City Council. (g) A notice of intent to award shall be provided to all bidders as soon as reasonably practical to trigger the bid protest period.

(h) Award will be made to the lowest responsive and responsible bidder, unless a different action is taken by the City Council pursuant to the City Code.
(i) Exceptions to the above requirements are provided for in Section 2 (When Competitive Bidding is Not Required) of this Policy.

2. WHEN COMPETITIVE BIDDING IS NOT REQUIRED

2.1 PUBLIC PROJECT WORK OF MORE THAN $10,000 AND LESS THAN $250,000

(a) The exceptions in this subsection may not be valid if certain state or federal funds are used. Consult with the City Attorney’s Office if using non-City funds.
(b) The bidding requirements specified in Section 1 (Solicitations Thresholds and Requirements) of this policy, do not apply if any of the following conditions are met:

Documents to include in bid documents, as well as internal implementation procedures for staff use can be found on Procurement’s website at:
https://nexus.sacramento.ca.gov/departments/finance/divisions/procurement/solicitation -templates. For projects that are subject to the CWTA and Local Hire program, staff should contact the City Attorney’s office with questions.

3. It is in the City's best interest to use a different procurement method.

This justification must be documented by the Project Manager, and the request to use a different procurement method must be approved by the Department Director and Procurement Manager in accordance with applicable Procurement procedures. Examples of alternative procurement methods include:
(i) Competitive negotiation: The Project Manager negotiates with two or more prospective contractors to obtain a contract for the lowest price.

Documentation shall be maintained of all negotiation discussions, terms, and offers.
(iii) Prequalification: A Two-Step Request For Qualifications (RFQ)/Request for Proposals (RFP) process can be used to limit participation in the bidding process that follows to only those persons or firms determined to be qualified in accordance with the provisions of the preceding RFQ process. This can be done for a single project, or for multiple projects, as would be the case for approval of an on-call list of contractors by trade or specialty to be used on specified projects. An RFQ/RFP process must be consistent with requirements of section 3 of this Policy. (iv) Use of One-Step Request For Proposals process: An RFP process is used to allow the award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors in addition to price, consistent with the requirements of section 3 of this Policy.

4. Emergency contracts: When emergency conditions render competitive bidding impractical, and the determination of an emergency is approved by the Department Director.

5. Cooperative service agreements or piggybacking: Aa competitively procured cooperative service agreement of other public agencies’ competitive contract without separate competitive bidding by the City.

Cooperative purchasing or piggybacking shall comply with applicable Procurement procedures.

6. Federal or state law requires other selection procedures to be utilized.

7. Maintenance, remodel, or repair work is performed by City employees.

2.2 PUBLIC PROJECT WORK OF $250,000 OR MORE
(a) The exceptions in this subsection may not be valid if certain state or federal funds are used.
(b) These exceptions in this subsection do not affect the requirement for City Council to approve all contracts for $250,000 or more.
(c) Council reports and resolutions prepared for a recommendation to suspend competitive bidding must set forth factual justification to support a finding that such action is in the best interest of the City. Questions concerning the applicability of competitive bidding requiremetns should be directed to the City Attorney’s Office.
(d) Under City Code Section 3.56.230, competitive bidding is not required for contracts of $250,000 or more under the following circumstances:

3. The City Council determines on a 2/3 vote that it is in the best interests of the City to suspend competitive bidding. The suspension of competitive bidding can be recommended for various reasons, including:
(i) Other competitive methods: Alternative methods for contractor selection, such as using a RFP process to allow the award of the contract on a best value or other basis (not to the lowest bidder) due to the need to take into account other factors in addition to price, a design-build or design- assist process, and/or selecting a contractor based on factors other than or in addition to price, may be utilized for contracts of
$250,000 or more if the City Council determines prior to conducting such alternative process (on a 2/3 vote) that it is in the City's best interests to suspend competitive bidding for this purpose. Any RFP process must be consistent with requirements of section 3 of this Policy.
(ii) Sole source procurement: After conducting a good faith review of available sources, the Department determines there is only one reasonable and practicable source for the required service. (1) The following are examples of circumstances that could necessitate a sole source procurement:
a. When the services are only available from a sole or single source based on that source’s unique capability or
intellectual property rights. A requirement for a particular proprietary service does not justify a sole source
procurement if more than one potential provider for that service is reasonably and practicably available.
b. When, in the case of a follow-on contract for services, it is likely that award to another contractor will result in: (1) substantial duplication costs that are not expected to be recovered through competition; or (2) unacceptable delays, the cost of which will exceed the costs excpected to be recovered through competition.
(2) All requests for this restrictive method of procurement shall be accompanied by an explanation as to why no other
source of work or service will be suitable or acceptable to meet the need. Documentation shall be maintained of all negotiation discussions, terms, and offers.
(iii) Prequalification: A RFQ process can be used to limit participation in the bidding process that follows to only those persons or firms determined to be qualified in accordance with the provisions of the preceding RFQ process. This can be done for a single project, or for multiple projects, as would be the case for approval of a master list of contractors by trade or specialty to be used on specified projects. An RFQ/RFP process must be consistent with requirements of section 3 of this Policy.

4. Emergency contracts: When emergency conditions render competitive bidding impractical and the determination of an emergency is approved by the Department Director.

6. Maintenance, remodel, or repair work is performed by City employees.

3. SOLICITATION METHODS

3.1 INVITATION FOR BIDS (IFB) / REQUESTS FOR BIDS (RFB) (a) IFBs or RFBs must be used for the procurement of public project work costing more than $100,000, except as otherwise provided in Section 2 (When Competitive Bidding is Not Required) of this Policy. This does not preclude the use of IFBs or RFBs for procurements below this threshold.
(b) The Project Manager shall bear the overall responsibility for the preparation of bid specifications, utilizing a standardized IFB/RFB format, as provided by the Procurement Division or otherwise approved by the City Attorney’s office.
(c) The bid specifications shall contain a complete scope of work for the construction work to be performed, and shall conform to the City's Standard Specifications.

3.2 OTHER PROCUREMENT METHODS (WHEN COMPETITIVE BIDDING IS

WAIVED)
(a) Alternative procurement methods to IFB or RFB should only be used where appropriate and practical, and as authorized under Section 2 (When Competitive Bidding is not Required) of this Policy. (b) A one-step RFP or RFQ must meet the requirements set forth in AP 4102 – Professional Services, and applicable Procurement procedures, unless an alternative to the standard RFP or RFQ process is specifically approved pursuant to Section 2.
(c) A two-step RFP/RFQ must meet the requirements set forth AP 4102 – Professional Services and applicable Procurement procedures, unless an alternative to the standard RFP/RFQ process is specifically approved pursuant to Section 2.

4. ITEMS REQUIRING REVIEW PRIOR TO A SOLICITATION
(a) Public project contracts that will include the provision of materials or equipment to be installed, configured or maintained may require a materials or equipment review by other City departments or divisions before the selection process is initiated. Such reviews are intended to ensure consistency and conformity with City standards and building codes. These reviews are required regardless of the contract amount. (b) Materials or equipment review prior to issuance of a solicitation is required in the following situations by the Department or divisions indicated below:

1. Installed computer-related equipment such as UPS, energy management, fiber connections, SCADA and other information technology items or services — review by Department of Information Technology.

5. AMENDING OR CANCELING A SOLICITATION
(a) An addendum shall be used to amend or cancel a solicitation, and shall be issued not less than three working days before the deadline specified for receipt of bids or proposals. Addendums extending the deadline or cancelling the solicitation may be issued less than three working days before such date if necessary.
(b) The minimum components required for addendums are identified in applicable Procurement procedures.
(c) The addendum should be published using the same media used to advertise the original solicitation, including the City website.

Addendums shall be sent to all prospective bidders/proposers known to have received a solicitation.

6. PUBLIC DISCLOSURE
(a) Solicitations for public project work of $100,000 or more shall be available for public inspection at the office of the Contracts Manager and shall be posted on the City website for Contracting Opportunities. (b) After bid opening, bids shall be made available in response to an official request for public inspection, in accordance with the California Public Records Act.
(d) Proposals submitted in response to an RFP shall be made available in response to an official request for public inspection after the solicitation process is complete, in accordance with the California Public Records Act.
(e) If the bidder or proposer designates any portion of its bid as proprietary or confidential, or any other public disclosure issues are presented, the Contracts Manager shall consult with the City Attorney’s Office prior to any response or disclosure.

7. ACCEPTANCE AND EVALUATION OR REJECTION OF BIDS OR PROPOSALS

7.1 LATE BIDS OR PROPOSALS
(a) A bid or proposal is late if it is received at the location designated in the solicitation after the deadline specified in the solicitation. (b) A late bid or proposal shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.
(c) A late bid or proposal shall not be opened, except (if necessary), for identification purposes. Delivery and return of late bids or proposals shall be handled in the following manner:

1. If delivered in person, a late bid or proposal should be rejected and returned to the person delivering it (failure to reject it at the time of delivery does not constitute acceptance);

2. If not delivered in person, a late bid or proposal should be returned by certified mail;

3. Bidders or proposers submitting late bids or proposals that will not be considered for award shall be notified as soon as practicable.

7.2 GENERAL REQUIREMENTS FOR ACCEPTANCE AND EVALUATION
(a) Bids or proposals shall not be altered or corrected after opening, except for minor irregularities as specified in the solicitation specifications and/or the City Code. A bid or proposal may be withdrawn only if authorized in the solicitation specifications or under State law. (b) For bids or proposals of $250,000 or more, only Council has the authority to waive minor irregularities. For bids or proposals valued at less than $250,000, the City Manager or designee has the authority to waive minor irregularities.
(c) No criteria may be used in bid or proposal evaluations that are not referenced in the solicitation or in applicable provisions of the City Code, other applicable laws or regulations or contract documents. (d) When an RFP process is used (if authorized instead of an IFB, as noted above), no discussions for any purpose other than administrative clarification may be conducted with proposers after submission of proposals, except during the presentation phase, if any.

7.3 DETERMINATION OF LOWEST BID
(a) For an IFB or RFB, the contract shall be awarded to the lowest responsive and responsible bidder.
(b) If a bidder that otherwise would have been the lowest responsible bidder is determined to be non-responsible, after consulting with the City Attorney’s office, the Contracts Manager shall prepare a written determination of non-responsibility, setting forth the basis of the finding of non-responsibility and advising the bidder that it may request a hearing on the matter, and shall send such determination to the bidder by certified mail.
(c) If there are two or more low responsive bids from responsible bidders that are identical in price, and both meet all the requirements and criteria set forth in the IFB or RFB, then award, if made, shall be made by a drawing of lots.

7.4 ADDITIVE OR DEDUCTIVE BID ITEMS
(a) The evaluation of bids for public projects containing additive or deductive items shall comply with Public Contract Code Section 20103.8.

7.5 REJECTION OF BIDS

(a) For contracts less than $250,000, the Department Director or the Contracts Manager shall have the authority to reject a bid, after consulting with the City Attorney’s office.
(b) For contracts of $250,000 or more, only the City Council has the authority to reject any valid bid.

7.7 CONTRACT FORM AND DOCUMENTATION
(a) A current contract form, as approved by the City Attorney’s office, or other appropriate contract form as approved by the City Attorney’s office shall be executed prior to starting any work. Current citywide approved forms are available on the Procurement page on the City’s intranet. The contractor must meet the City’s standard insurance requirements and any other requirements, and obtain a Business Operations Tax Certificate number, as specified in the Procurement procedures.
(b) For contracts of $250,000 or more, the contract must be signed by the contractor and the City Attorney’s Office prior to City Council award of the contract.
(c) For all levels of contract award, contract documents must be fully executed (obtain all signatures and provide any required contract documents) prior to performance of the contract.

8. BID SECURITY, BONDS AND INSURANCE

8.1 BID SECURITY
(a) Bids require bid security (such as a bid bond or cashier’s check) unless this requirement is waived as specified in the Standard Specifications.

Bid security shall be provided in a standardized format specified in Standard Specifications and of the solicitation.
(b) Bids received without the required security shall be considered non- responsive and will be rejected.
(c) Bid security shall be returned to unsuccessful bidders after a successful bidder is selected and awarded the contract.
(d) Bid security may be forfeited and applied as specified in the Standard Specifications.

8.2 PERFORMANCE AND PAYMENT BONDS
(a) Performance and payment bonds are required for public project contracts exceeding $25,000, as provided in the Standard Specifications and as required by State law (for payment bonds). (b) The bond requirements shall be described in the solicitation, and shall conform to applicable Procurement procedures.
(c) Bonds shall be accepted only from sureties admitted and duly authorized to transact business in the State of California, and shall be approved as to form by the City Attorney’s office.
(d) Failure to submit the required bonds within the time specified in the notice of award shall be just cause for annulment of the award and forfeiture of the bidder's bid security.

8.3 INSURANCE
(a) All insurance requirements specified in the current standard contract form must be satisfied prior to approval and execution of the contract by the City, unless otherwise approved by Risk Management.
(b) Additional insurance requirements may apply depending upon the project being contracted for. Departments must consult with the Risk Division on any additional insurance requirements to be added to solicitations and/or contracts.
(c) All changes to contractual provisions including insurance requirements must be reviewed by Risk Management and approved by the Department Director prior to contract approval and execution by the City.

9. BID PROTEST

Bidders or proposers who respond to a solicitation on a contract may file a bid protest in accordance with policies adopted by the City Manager’s office and posted on the City’s website.

10. SMALL AND/OR DISADVANTAGED BUSINESS PARTICIPATION AND REPORTING

REQUIREMENTS

The City may adopt an ordinance or program which allows departments to give preference to small and/or disadvantaged businesses during bid or proposal evaluation.

Upon adoption of any such ordinance or program, the following will apply:

(a) Program requirements shall be met for all contracts as specified in Procurement procedures, unless these requirements are reduced or waived by the Department Director, or an external funding source prohibits the use of such preferences or requires the use of other business enterprise requirements.

(b) Any modification or waiver of applicable requirements must be requested in writing and approved by the Department Director prior to any advertisement or posting to the City’s website for Contracting Opportunities.
(c) Departments shall be responsible for meeting any related annual participation goals on a Department-wide basis.
(d) The Procurement Division shall compile data relative to p r o g r a m expenditures and utilization and submit periodic reports to the City Manager detailing participation rates.

11. CITY ORDINANCES
Various City Ordinances may apply to solicitations for Public Projects. Solicitations for which such ordinances apply shall contain ordinance requirements and standard forms and declarations as available. The contracts manager is responsible for reviewing required forms and declarations and applying preferences as required during the evaluation process.
(a) Equal Benefits Ordinance: Contracts exceeding thresholds set in City Code section 3.54 are subject to applicable provisions of the City’s Non- Discrimination in Employee Benefits Code, codified at Chapter

3.54 of the City Code (commonly referred to as the Equal Benefits Ordinance, or EBO) and as outlined in API#53.
(b) Drug Free Workplace: All contractors for public projects comply with the City’s drug-free workplace requirements as outlined in the City Council Resolution 90-498.
(c) Ban the Box: Contracts exceeding thresholds set in City Code section

12. PREVAILING WAGES; USE OF APPRENTICES
(a) The City Code requires that public project contracts for construction originally awarded in an amount exceeding $25,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773. “Construction” includes work performed during the design and other preconstruction phases, including, but not limited to, land surveying and materials testing, as well as postconstruction phases including, but not limited to, inspection services.
(b) The City Code also requires that contracts for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 require the payment of prevailing wages, as determined by the Director of the Department of Industrial Relations pursuant to Labor Code Section 1773.
(c) Bid specifications for public projects for construction exceeding $25,000 shall include prevailing wage requirements.
(d) Bid specifications for public projects for alteration, demolition, repair, or maintenance work in an amount exceeding $15,000 shall include prevailing wage requirements.
(e) More specific requirements relating to prevailing wages for public projects are specified in City Code Section 3.60.040.
(f) Apprentices are required on all public project contracts originally awarded in an amount exceeding $30,000. More specific requirements relating to the use of apprentices are specified in City Code section 3.60.050. (g) The City Manager may approve adjustments to the thresholds above for prevailing wage and apprentice requirements to maintain consistency with State law.

13. SPECIAL REQUIREMENTS FOR CONTRACTORS WHO ARE SOLE

3.60.040 and AP 4002 – Public Projects.

14. CHANGE ORDERS AND CONTRACT AMENDMENTS
(a) Change orders a n d c o n t r a c t a m e n d m e n t s for public projects may be approved by the City Manager or authorized designee, within the limits of approval authority specified in City Code section 3.04.020. Change orders or amendments exceeding these limits must be approved by the City Council.
(b) Delegations of approval authority are specified in API 22. (c) Any change order o r amendmen t extending the term of a contract must be approved prior to expiration of the contract term.

15. PAYMENT METHODS AND PAYMENT TERMS

15.1 PAYMENT METHODS
(a) Original invoices are required for payment of all contracts. (b) Payments for contracts over $25,000 must include an approved Pay Request Application and Schedule of Values.
(c) More specific requirements are set forth in the contract documents and Procurement Guidelines.

15.2 PAYMENT TERMS
(a) Progress payments and project retention, as applicable, may be reduced by any deduction or withholding authorized under the contract, and shall be reduced by the amount of any stop notice until a verified release of stop notice is provided on a City-approved form or a release bond is accepted by the City.

(b) Time limits for progress payments and the release of retention shall be set forth in the contract documents.

(c) A Notice of Completion must be filed with the Sacramento County Recorder’s Office within ten days after the date that the City accepts the work as complete.

16. TRANSACTION NUMBER LOG

(b) A transaction number shall be assigned to each published solicitation, and will be used to identify and track all related activity through requisition and payment, if applicable.

17. EMPLOYEE CONFLICT OF INTEREST/ETHICS

Pursuant to the City’s adopted Conflict of Interest Code, no employee, officer, or agent of the City may participate in the solicitation, award or administration of a contract (including purchase orders) if they have a real or apparent conflict of interest. A real or apparent conflict of interest would arise if any prospective or existing consultant or contractor (or any subcontractor) considered for an award is:

a. Discipline Procedures & Review Standards:
https://records.cityofsacramento.org/ViewDoc.aspx?ID=s6tFBnt4W+IJi2YxhaL Q5nZ3jqzJu8Xg
b. Civil Service Board Rules: https://www.cityofsacramento.org/- /media/Corporate/Files/HR/Divisions/Admin/CivilServiceBoardRules62012.pdf?l a=en
c. Collective Bargaining Agreements:
https://www.cityofsacramento.org/HR/Divisions/Labor-Relations/Labor- Agreements
d. In addition, the City’s Conflict of Interest Code provides that employees may be subject to any form of discipline that is statutorily available for those participating in the selection, award or administration of a contract if a conflict of interest exists, as set forth in California Government Code, sections 81000-91014.

Index

$ D P

$250,000 ...... 5, 6, 7, 8, 9, 13, 14
$25,000 .. 6, 7, 10, 12, 14, 16, 17
$5,000 ............................ 6, 8, 13

2 2/3 Vote .................................... 9
A
Addendum .......................... 2, 11
Additive or Deductive Bid Items
Delegations of Approval
Authority ......................... 6, 17
Documentation ........................ 13
E
Emergency Contracts ............... 9
Emergency Contracts ............... 3
Equal Benefits Ordinance ....... 16
ESBE ...................................... 16
Ethics ...................................... 18
Evaluation ......................... 12, 13
Payment Methods ................... 17
Payment Terms ................. 17, 18
Performance ............................ 14
Prequalification .................... 9, 10
Prevailing Wages .................... 17
Procurement .... 2, 3, 5, 6, 8, 9,10,
11, 14, 16, 17, 18
Project Manager .... 4, 6, 8, 10, 11
Proprietary or Confidential...... 12
Public Disclosure ..................... 12
Public Project ...................... 4, 11
Purchase Order ......................... 4

.......................................... 13 R
Advertising ........................ 7, 8, 9
Alternative Procurement
Methods ............................... 8
Apprentices............................. 17
Award ....3, 5, 6, 7, 12, 13, 14, 15
B
Bid Opening........................ 4, 12
Bid Security ............................ 14
G

General Requirements ........ 5, 13
Green Building Rating Systemtm
Leed ................................... 11

History ...................................... 2

Rejection ........................... 12, 13
Responsive Bidder .................... 4
RFB 2, 4, 6, 7, 10, 11, 12, 13, 14
RFP 2, 4, 6, 9, 10, 11, 12, 13, 14
RFQ ............................ 2, 4, 9, 10
S
Shall ........................................ 18
Bid Specifications.... 2, 4, 10, 13 Sole Proprietors ...................... 17 Bidders ........... 4, 6, 7, 11, 13, 14
Bidding ........... 4, 5, 6, 7, 8, 9, 10
Bonds ..................................... 14
Business Operations Tax
I
Insurance .......................... 14, 15
Sole Source .............................. 8
SOQ .......................................... 4
Standard Specifications 4, 10, 14
Supplies .................................... 2
Certificate ...................... 6, 14
L
C Late ......................................... 12
Lowest Bid .............................. 13
Change Order ..................... 2, 17
City Charter .............................. 2
City Clerk ............................ 7, 14
Competitive Bidding .................. 3
Lowest Responsible Bidder....... 3
Lowest Responsive and
Responsible Bidder 3, 7, 8, 13
Competitive Negotiation........... 8
Computer ................................. 11
Conflict .................................... 15
Conflict Of Interest ................... 18
Contract ................ 2, 3, 7, 13, 14
Contract Form......................... 13
M

Maintenance ................... 4, 9, 10
Master ............................. 5, 9, 10
Contractor ................................ 3
Contracts Manager... 3, 6, 12, 13 N
Notice ....................................... 8
Notice of Completion ............... 18
O
Office of Small Business
Development (OSBD) ........ 16
City of Sacramento
Administrative Policy Instructions
API No. 53
Non-Discrimination in Employee Benefits By City Contractors

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Law and Legislation CommitteeApril 2, 2024

Law and Legislation Committee
April 2, 2024