55728.01000\33995632.1
-23-
CITY OF SIGNAL HILL – PURCHASING AND CONTRACTING GUIDELINES
4.7 Exceptions to Contracting Procedures. There shall be no informal bid process, formal bid process, formal RFQ/RFP process for the purchases of Goods, Services, or Public Projects under any of the following circumstances:
• Best Interests of the City. Except where otherwise prohibited by law, the City Council or City Manager may authorize the award and execution of contracts for Goods, Services, and Public Projects subject to the dollar limits consistent with these Guidelines, without following the required procurement methods, provided that the City Council or City Manager finds that such award is in the best interests of the City, or of the public health, safety, and welfare of the community.
• Commodities. On an annual basis, Council will approve a list of commodities exempt from the requirements of these Guidelines. Any approved commodities will be eligible for purchase after procuring three (3) quotes upon the review and approval of the Director of Finance and City Manager, so long as purchases fall within the approved budgets in the Fiscal Year Operating Budget.
• Cooperative Purchasing. Use of cooperative purchasing is encouraged as a way to obtain good and services by aggregating volume, securing value pricing, and reducing administrative overhead. Measured use of cooperative purchasing can significantly reduce the time and resources needed to competitively purchase goods and services. Cooperative purchasing opportunities should be based on competitively awarded contracts that substantially comply with the City’s procurement procedures as outlined in these Guidelines.
Attachment A
55728.01000\33995632.1
-24-
CITY OF SIGNAL HILL – PURCHASING AND CONTRACTING GUIDELINES Cooperative purchasing need not be based on the absolute lowest pricing and may consider factors in addition to price, such as the time and/or resources needed for the City to independently competitively bid for the good or service. The following cooperative purchasing opportunities may be utilized as allowed in these Guidelines. o Cooperative purchasing: To participate in a cooperative competitive bidding procedure processed through another local, state, or federal government agency. ▪ There are numerous purchasing cooperatives that the City can use, including California Multiple Award Schedule (CMAS); the Department of General Services (DGS); OMNIA Partners (formerly U.S. Communities Cooperative Purchasing); Sourcewell (formerly National Joint Powers Alliance); and federal General Services Agency (GSA) procurements.
▪ The cooperative competitive bidding process that the City seeks to utilize must have occurred within twenty-four (24) months from the date the City seeks to obtain the goods or services.
o Piggybacking: To use an existing public contract arrived at after a competitive procurement process as a template to form the City’s own contract with the vendor to acquire the same products/services at the same/lower price. ▪ The City may not piggyback off of a contract that has expired or is no longer utilized by other agencies.
o Multiple awarded bids: A competitive bidding process is conducted for a specific product.
Several vendors are awarded the contract. Maximum item price and contract terms are established. The City may then award a contract to any of the contracted vendors. ▪ The competitive bidding process that the City seeks to utilize must have occurred within twenty-four (24) months from the date the City seeks to obtain the goods or services.
• Disaster Relief. When in the case of a disaster, per SHMC Chapter 2.76. • Emergency. In case of emergency when an emergency on-call contract cannot be utilized. o “Emergency” means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services;
o The City Manager may authorize purchases up to $100,000 without regard to the provisions of these Guidelines. The action shall only be to repair or replace a public facility, take any directly related and immediate action required by an emergency, or procure necessary Goods, Services, and Public Projects. In making such a purchase, at least three (3) vendors should, if practicable, be solicited to submit price quotes. Award shall be made to the vendor offering the lowest acceptable quote that best meets the needs of the City; 55728.01000\33995632.1
-25-
CITY OF SIGNAL HILL – PURCHASING AND CONTRACTING GUIDELINES The City Manager shall terminate the emergency action at the earliest possible date that conditions warrant. If a purchase is made pursuant to this authority, the City Manager shall provide to the City Council for review a written public record showing the nature of the emergency and the City Manager’s authorization to proceed; and o In the case of an emergency which requires the immediate procurement of Goods, Services, or Public Projects in excess of $100,000 dollars, the City Manager upon the notification of the City Council may procure these items without regard to the provisions of these Guidelines. The action shall only be taken to repair or replace a public facility, take any directly related and immediate action required by that emergency, or procure necessary Goods, Services, and Public Projects. In making such a purchase, at least three (3) vendors should, if practicable, be solicited to submit price quotes. Award shall be made to the vendor offering the lowest acceptable quote that best meets the needs of the City. The City Council shall terminate the emergency action at the earliest possible date that conditions warrant.
• Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other non-negotiable permit, use or application fees.
• Minimum Procurement Levels. When procuring Goods or Services up to $3,000 or when procuring Public Projects up to $5,000.
• No Competitive Market. When the City Council determines that a competitive market does not exist or that the City will not gain a competitive advantage by using the formal bidding procedure, the City Council may authorize use of any other procurement method. • Purchase of Recurring Charges. The City may create an open vendor list for the purposes of providing Goods or Services for the fiscal year for ongoing cleanup, maintenance and other routine items that are of a continuing nature. Prices from each vendor shall be obtained in a manner to ensure competitive pricing, in the best interests of the City. The threshold for each vendor may be determined by the City Council, at the recommendation of the City Manager. A vendor list may be approved by the City Council as often as necessary but not less than once every twenty four (24) months.
• Sole Source. Sole source purchasing may be utilized as allowed in these Guidelines. o A sole source purchase means that only one supplier, to the best of staff’s knowledge and belief after conducting a good faith review of the market, is capable of providing the required product or service.
o Similar types of goods and services may exist, but only one supplier, for reasons of expertise, standardization, quality, compatibility, specifications or availability, is the only source that is acceptable to meet a specific need OR
55728.01000\33995632.1
-26-
CITY OF SIGNAL HILL – PURCHASING AND CONTRACTING GUIDELINES o If the City Council shall find by resolution adopted by no less than four fifths (4/5) of its members that such an acquisition may be more economically and efficiently effected through sole source purchasing.
• Task or Job Orders. Unless prohibited by law, on-call services, task orders, or job orders that the City purchases through a duly approved master agreement shall not be subject to further procurement requirements.