Administrative Instruction Section IV: Purchasing Policies and Procedures Section 4 - Competitive Procurement Requirements
1. Prevailing Wage Requirements. The payment of prevailing wages is required for public projects and maintenance contracts exceeding $1,000, as defined in Labor Code section 1720 et seq. Please note that the definition for projects qualifying for prevailing wages is broader than that for public works projects requiring bidding. There will be public works projects that do not require competitive bidding but require the payment of prevailing wages. As such, it is important to verify that prevailing wages are required and ensure contractor compliance. Additionally, such public projects/maintenance work must follow California Department of Industrial Relations (DIR) contractor registration requirements for contractors and their subcontractors for construction contracts greater than $25,000 and maintenance contracts greater than $15,000 (see also Subsection 5.1.9 Key Contracting: Prerequisites).
2. Purchases Using Federal Grant Funds. If a purchase is being made using federal grant funds, the competitive bidding thresholds and requirements are established in 2CFR200.318 to 326 and are adjusted/amended from time to time. The current bid threshold amount is $10,000. The federal requirements are contained in the City's Procurement Standards for Federal Awards, accessed here: Section 4.04.080 of the Municipal Code. Federally funded procurements must use specific contract templates approved by the City Attorney's Office.
4.11 Competitive Bidding/Procurement Exemptions
Certain procurements may be exempt from competitive bidding (for public works projects) or procurement (for goods and services), such as those specified by law, emergency circumstances, or if in the City's best interests, subject to approval by the appropriate award authority and other requirements as specified below.
1. Enumerated Bid Exemptions. The following enumerated items are examples of purchases that may be appropriately justified as exempt from competitive bidding:
a. Emergency procurements as defined below.
b. Situations where solicitations of bids or proposals would be unavailing or impossible.
c. Public library collection materials or related items as specified in the Library JP A Agreement.
d. Single or sole source goods or services as defined herein. e. Highly specialized equipment (and associated operational costs) where compatibility with existing equipment is an overriding consideration. f. Procurements funded by grants, donations, or gifts when any special conditions require the purchase of particular materials and/or services. g. Goods, services, or surplus property obtained from or through agreements with other governmental agencies.
h. Membership dues, conventions, training, travel arrangements, or advertisements in magazines, newspapers, or other media.
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