Public Contracting
101 & 102
City Council
July 14, 2025
Finance & Public Works
Departments
Public Contracting
101
Finance Department
Procurement
Guidelines /
Processes
Professional Consulting Services
Non-Professional Consulting
Services
Public Works Projects:
Formal Competitive Bidding
Procurement Thresholds
Authorities
Sole Source / Single Source
Professional Consulting Services
Professional Services
• Include, but not limited to,
facility planning and engineering,
information and
telecommunication services
organization development,
environmental impact reports,
financial feasibility studies and
traffic analysis.
Non-Professional Consulting Services
Non-Professional Services
• Include, but not limited to,
janitorial, landscaping, nonspecialized transport, hauling or moving, and minor installations,
repair or maintenance to City
facilities or equipment
Public Work Projects:
Informal Quotes vs. Formal Competitive Bidding
Informal Quotes
• $60,000 - $200,000
• Requires a least three (3) quotes
from qualified vendors
Formal Competitive Bidding
• Over $200,000
• Detailed, written specifications
must be included in bid packets
• Public noticing published not
less than 7 days before sealed
bid opening
Procurement Threshold Authorities
A B C D
1 Maintenance Services
2 Current Amount Purpose Required Authorization Document Approval Authority 3 $25,000 or Less Quotations from competitive sources Purchase Order Department Director or Designee 4 $25,001 - $100,000 Solicitation of at least three sources Non-Professional Services Agreement City Manager 5 $100,001 or Greater Solicitation of at least three sources Non-Professional Services Agreement City Manager & City Council 6 External Professional Services
7 Current Amount Purpose Required Authorization Document Approval Authority 8 $5,000 or Less Quotations from competitive sources Purchase Order Department Director or Designee 9 $5,001 - $60,000 Quotations from competitive sources Professional Services Agreement City Manager 10 $60,001 - $100,000 Solicitation of at least three sources Professional Services Agreement City Manager 11 $101,000-$200,000 Solicitation of at least three sources Professional Services Agreement & Resolution City Manager & City Council 12 $200,001 or Greater Request for Proposal procedure required Professional Services Agreement & Resolution City Manager & City Council 13 Public Works Projects
14 Current Amount Purpose Required Authorization Document Approval Authority 15 $5,000 or Less Quotations from competitive sources Purchase Order Department Director or Designee 16 $5,001 - $100,000 Solicitation of at least three sources Professional Services Agreement City Manager 17 $101,000 - $200,000 Solicitation of at least three sources Professional Services Agreement & Resolution City Manager & City Council 18 $200,001 or Greater Formal bid procedure required Professional Services Agreement & Resolution City Manager & City Council 19 Goods, Material, Equipment, Furnishing, and Supplies 20 Current Amount Purpose Required Authorization Document Approval Authority 21 $60,000 or Less Quotations from competitive sources Purchase Order Department Director or Designee 22 $60,001 - $100,000 Solicitation of at least three sources Purchase Order Department Director or Designee 23 $101,000-$200,000 Solicitation of at least three sources Non-Professional Services Agreement & Resolution City Manager & City Council 24 $200,001 or Greater Formal bid procedure required Non-Professional Services Agreement & Resolution City Manager & City Council
Sole Source / Single Source
A sole source purchase refers to
purchasing without competitive
bidding for goods, materials,
supplies and some services only
available from one vendor.
A single source purchase refers
to purchasing without
competitive bidding for goods,
materials, supplies and some
services from one vendor when
multiple vendors are available.
Departments must submit a
Sole/Single Source request form
with a requisition for review and
approval.
If use of these sources appears
to be necessarily ongoing or
consistent, then City Council
shall by resolution authorize use
of these vendors without
competitive bidding.
Public Contracting
102
Public Works Department
Pre-Design
Feasibility studies
Conceptual design
Public outreach
Professional consulting
services
RFP/RFQ
Design
Development
Preparation of
construction
documents
Professional consulting
services
RFP/RFQ
Construction &
Closeout
Public Works
Contracts
Competitive bidding
Design consultant provides
support during
construction
Capital Improvement Project Phases
• Important risk management tool
• Prepares for changes in scope or errors and omissions • Avoids “cost cutting”
• Allows for flexibility in design process
Designated amount of funds set aside in a
project budget to account for unexpected costs
Contingency
Should not be used to accomplish the
original scope of the project
How is
Percentage of
Contingency
Determined
• Complexity of the work involved
• Amount of unknowns
• Size of contract
Contingency
• Reviewed by Engineering staff and
approved by City Manager or
designee
• Contractor or Consultant must
demonstrate to City’s satisfaction
that work falls outside of original
project scope
Change Orders
Amendment to Contract
that Changes the Scope
of Work and Fee
Regulatory Compliance
Errors & Omissions
Unforeseen Conditions
Design Scope Change
City Requests
3%
10%
5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Individual vs Cumulative Change Orders
3%
10%
5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
• Individual Change Order Limit
• Individual COs that exceed limit require
Council approval
• Independent of other COs
• Focus on cost of single change
• Cumulative Change Order Limit
• Any CO that would cause cumulative
amount to exceed limit requires Council
approval
• Focus on overall budget impact of
approved changes
• Protects against scope creep
Individual and Cumulative Change
Order Limits are used to manage
project scope and budget effectively
Individual Cumulative
Change
Order #1
Change
Order #3
Change
Order #2
Individual
Limit
Cumulative Limit
Change Orders
Memorial Park
• Funds credited back to the project
through Change Order
• Change Order used to better secure
perimeter fence
Bancroft Paving
• Change Order used to lower existing
traffic signal conduits
• Change Order will be utilized to address
EMBUD repairs
Change Order Contingency
Risks of Not Utilizing
Contingency Best Management Practices
Project Delays
Project paused until Council authorizes
Change Orders
Budget Overruns
May result in construction delay claims
Scope Reductions
Key features may be sacrificed to stay on
budget
Less Flexibility
Discourages exploration of alternatives that
could add value and enhancements
Delegate Authority
City Manager, PW Director, or City Engineer may
approve Change Orders up to contingency limits
Classify Change Orders
Improves project understanding
Data can improve future project delivery
Pre-Qualification
Establish pre-qualification process for large or
complex projects
Alternative Contracting
On-Call Construction Services
California Uniform Public Construction Cost
Accounting Act (CUPCCA)