City_Procurement_Code_of_the_City_of_Kingman_2020-03.pdf

Procurement Code

Adopted July 1, 2019

Revised March 3, 2020

EXHIBIT II

ARTICLE XIV PROCUREMENT

GENERAL PROVISIONS

2-301 SHORT TITLE

2-302 PURPOSES

2-303 APPLICABILITY

2-304 DEFINITIONS

ADMINISTRATION

2-305 ADMINISTRATION OF PROCUREMENT

2-306 ANTI-DISCRIMINATION

2-307 LITIGATION SETTLEMENT

2-308 APPROVED STANDARD CONTRACT FORMS

2-309 UNAUTHORIZED PURCHASES

2-310 RESERVED

COST PRINCIPLES AND SPECIFICATIONS

2-311 COST PRINCIPLES

2-312 MAXIMUM PRACTICABLE COMPETITION

2-313 VALUE OF CONTRACT; MULTIPLE ITEMS

2-314 MULTI-YEAR CONTRACTS

2-315 TO 320 RESERVED

EXCEPTIONS TO SOLICITATION REQUIREMENTS

2-321 EXCEPTIONS TO SOLICITATION REQUIREMENTS

2-322 COOPERATIVE PROCUREMENT

2-323 SOLE SOURCE PROCUREMENT

2-324 SPECIALIZED SERVICES CONTRACTS

2-325 PURCHASE, SALE, OR LEASE OF REAL PROPERTY

2-326 EMERGENCY PURCHASES

2-327 TO 330 RESERVED

SUBMISSIONS, AMENDMENTS, AND RESPONSIBILITY

2-331 CANCELLED SOLICITATIONS; REJECTED SUBMISSIONS; ADDENDA

2-332 CONTRACT AMENDMENTS

2-333 MISTAKES IN BID

2-334 RESPONSIBILITY OF BIDDERS AND OFFERORS

PROTESTS AND DEBARMENT

2-335 PROTESTS

2-336 DEBARMENT

2-337 ADMINISTRATIVE CONTRACT CLAIM

2-338 TO 340 RESERVED

SOURCE SELECTION

2-341 THRESHOLDS FOR PURCHASES

2-342 PETTY CASH ($100 OR LESS)

2-343 SMALL PURCHASES – DIRECT PURCHASE ($101 TO $5,000)

2-344 INTERMEDIATE PURCHASES ($5,001 TO $50,000)

2-345 FORMAL PURCHASES (GREATER THAN $50,000)

2-346 COMPETITIVE SEALED BIDDING

2-347 COMPETITIVE SEALED PROPOSALS

2-348 ON-LINE BIDDING

2-349 PREFERENCE IN PURCHASING

2-350 RESERVED

MATERIALS MANAGEMENT

2-351 SALE AND DISPOSITION OF SURPLUS PROPERTY

2-352 TO 360 RESERVED

ETHICS IN PROCUREMENT

2-361 ETHICAL STANDARDS

2-362 CONFLICTS OF INTEREST

ARTICLE XIV PROCUREMENT

2-301 SHORT TITLE.

This chapter shall be known and may be cited as the “Procurement Code of the City of

Kingman, Arizona.”

2-302 PURPOSES.

The purposes of this chapter are to establish the rules and procedures governing purchasing of goods, services and construction, to promote the efficient use of the City’s resources, and to provide for the fair and equitable treatment of all persons involved in the purchasing process, in order to obtain the highest possible value in exchange for public funds, and to safeguard the quality and integrity of the purchasing system.

2-303 APPLICABILITY.

This article shall apply to the purchase, rent or lease of non-construction-related supplies, services and personal property for the City of Kingman, including purchases using state and federal assistance monies, except that nothing shall prevent the City from complying with terms and conditions of any grant, gift, bequest, or applicable regulatory guideline.

This article also applies to the disposal of the City’s surplus goods.

For requirements for the procurement of construction services and related materials and architecture and engineering services, see Arizona Revised Statutes Title 34.

2-304 DEFINITIONS.

For the purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

ADDENDUM or ADDENDA. An addition or deletion from, a material change in, or general interest explanation of the solicitation.

BEST INTERESTS OF THE CITY. Advantageous to the City.

BID. An offer in response to an informal request or a competitive sealed bid solicitation.

BRAND NAME. A specification that uses one or more manufacturers’ name(s) or catalog number(s) to describe the standard of quality, performance, and other characteristics needed to meet the City’s requirements, and that provides for the submission of equivalent products.

CHANGE ORDER. A written order signed by the City, which directs the contractor to make changes to the contract.

CITY. Kingman, Arizona.

CONFLICT OF INTEREST. An interest of an employee or other public official of the

City or a relative of an employee or public official of the City that is a substantial interest as defined in A.R.S. § 38-501 et. al., or any other interest of an employee or public official of the City such that the employee or public official cannot apply the provisions of this chapter without bias.

CONSTRUCTION. The process of building, altering, repairing, improving or demolishing any public structure or building or other public improvements of any kind to any public real property. This does not include the routine operation, routine repair or routine maintenance of existing facilities, structures, buildings or real property or the investigation, characterization, restoration, or remediation due to an environmental issue of existing facilities, structures, buildings, or real property.

CONTRACT. All types of agreements, including purchase orders and change orders, regardless of what they may be called, for the procurement or disposal of goods, services, or construction.

CONTRACT AMENDMENT. A written alteration in the terms and conditions of any contract accomplished by mutual action of the parties to the contract.

CONTRACT AMOUNT. The total amount of remuneration included in a contract prior to change orders.

CONTRACTOR/VENDOR/SUPPLIER. Any person or entity that has a contract with the

City.

COOPERATIVE PURCHASE CONTRACT. A contract previously solicited through a competitive process by another governmental entity, including purchases from the state bid list or from a purchasing cooperative that solicited contracts using a competitive process consistent with public procurement.

COST DATA. Information concerning the actual or estimated cost of labor, materials, overhead and cost elements that have been actually incurred or that are expected to be incurred by the contractor in performing the contract.

DAY. Calendar days unless otherwise specified by this chapter.

DEBARMENT. The disqualification of a person to submit offers or be awarded a contract by the City for a specified period of time commensurate with the seriousness of the offense.

DISADVANTAGED BUSINESS ENTERPRISE. A small business which is owned or controlled by a majority of persons, not limited to members of minority groups, who have been deprived of the opportunity to develop and maintain a competitive position in the economy because of social disadvantages. These businesses may be actively solicited when required.

EMERGENCY. Circumstances that could not have been reasonably foreseen which create a substantial risk of loss, damage, interruption of services, or threat to the public health or safety and which require prompt execution of a contract to remedy the condition.

EMERGENCY PURCHASE. Procurement when there is an emergency.

GOODS. Supplies, equipment, or materials, and any other personal property, including tangible, intangible, and intellectual property and rights and licenses in relation thereto.

INTERGOVERNMENTAL AGREEMENT. An agreement entered into pursuant to

A.R.S. Title 11, Chapter 7, Article 3.

NON-MATERIAL DEFECT. A component in an offer that does not conform to all of the requirements of a solicitation, but which the Purchasing Officer, in the case of purchases that may be approved by the Purchasing Officer or the City Council, determines will not give a competitive advantage to an offeror and is in the best interest of the City.

OFFER. A response to a solicitation. An offer may be either a bid or a proposal.

OFFEROR/BIDDER/PROPOSER. A person submitting a response to a solicitation.

ON-LINE BIDDING. A procurement process in which the City receives bids for goods, services, construction, or information services electronically over the internet in a real-time, competitive bidding event.

PERSON. Any corporation, business, individual, union, committee, club, other organization, or group of individuals.

PRICE AGREEMENT. A contract for goods or services at a set unit price with no guarantee of a minimum or maximum purchase; or an initial order or minimum purchase combined with a continuing contractor obligation to provide goods or services in which the City does not guarantee a minimum or maximum additional purchase.

PROCUREMENT. The purchasing, renting, leasing, or otherwise acquiring of any goods, services or construction, including the process of solicitation. PURCHASING shall have the same meaning as PROCUREMENT.

PROPERTY. Assets with a useful life or more than one year.

PROTESTER. A person who files a protest under this article.

PURCHASING OFFICER. The City Manager or a person appointed by the City Manager to administer the provisions of this chapter.

RESPONSIBLE OFFEROR. A person who has the capability to perform the requirements of a contract and the integrity and reliability that will ensure good faith performance.

RESPONSIVE OFFEROR. A person who has submitted an offer that conforms to the requirements of a solicitation.

SERVICE. The furnishing of labor, time, or effort by a contractor or subcontractor that does not involve the delivery of a specific end product other than required reports and performance.

SMALL BUSINESS. A United States business which is independently owned and which is not dominant in its field of operation or an affiliate or subsidiary of a business dominant in its field of operation.

SOLE SOURCE. A good or service that is available from: one known capable source; no other reasonable alternative exists; or only one source meets the business needs of the

City. A sole source selection requires a written determination.

SOLICITATION. A request for the purpose of soliciting offers.

SPECIALIZED SERVICES. Services in which the primary effort involved in providing the service is intellectual or conceptual rather than physical and where creativity, innovation, interpretation, judgment, unusual talent or treatment are involved, including but not limited to lawyers, certified public accountants, auditors, consultants, appraisers, lobbyists, health benefits, medical, insurance and broker services, marketing, advertising, unemployment, and investigative services. SPECIALIZED SERVICES does not include technical registrants in accordance with Arizona Revised Statutes Title 34. Questions regarding a SPECIALIZED SERVICE shall be referred to the Purchasing Officer.

SPECIFICATION. Any description of the physical or functional characteristics, or of the nature of, a supply, or service item. The term may include a description of any requirements for inspection, testing, delivery, performance requirements, acceptance, licenses and permits.

SUBCONTRACTOR. A person who contracts to render service to a contractor or to another subcontractor as a part of a contract.

SURPLUS PROPERTY. Personal property no longer needed by the City for its operations, obsolete property, property in poor or nonworking conditions, or property that is a byproduct.

TECHNICAL REGISTRANT. A person or firm registered by the state board of technical registration pursuant to A.R.S. Title 32, Chapter 1 to practice architecture, engineering, geology, landscape architecture or land surveying or any combination of those professions and persons employed by the registered individual or firm.

TITLE 34 PROCUREMENT. A procurement governed by A.R.S. Title 34 used in the context of construction.

USED PERSONAL PROPERTY OR EQUIPMENT. Goods that have been placed in their intended use by a previous owner or user for a period of time recognized in the relevant trade or industry as qualifying goods as “used” at the time of the using department purchase. USED PERSONAL PROPERTY OR EQUIPMENT generally does not include goods if the using department was the previous user, whether under a lease, as part of a demonstration, trial or pilot project, or similar arrangement.

USING DEPARTMENT. Any City department using or requesting goods, services, or construction.

WORK. The furnishing of all materials, equipment, labor, and incidentals necessary to successfully complete any individual item or the entire contract and successful completion of all duties and obligations imposed by the contract.

WORKS OF ART OR ENTERTAINMENT. Creative objects and performances that give aesthetic pleasure apart from utilitarian consideration and display form, beauty and/or intricacy. Examples include painting, sculpture, music, literature, theater, and dance.

WRITTEN or WRITING. Conventional paper documents either hand-written or printed, in contrast to spoken words. It also includes electronic transmissions or facsimile documents when required by applicable law or to the extent permitted by the solicitation document or contract.

2-305 ADMINISTRATION OF PROCUREMENT.

A. The City Manager or a designee shall be the Purchasing Officer of the City.

B. Purchasing Officer. The powers and duties of the Purchasing Officer are:

1. Administer the procurement, contracting, and debarment in accordance with this article and applicable state and federal laws and regulations.

2. Administer the operating policies and procedures for the internal management of purchasing in compliance with this chapter.

3. Approve or prepare, in cooperation with the using department, written standards and specifications for goods, services, or construction, including designation of qualified products lists, designation of brand names for the purpose of maintaining compatibility with like goods and standard specifications.

4. Supervise the inspection or testing of deliveries of goods or services to determine conformance with specifications.

5. Maintain programs for consolidation of using department purchasing requirements.

6. Delegate in writing the powers and duties set forth in this section to the director of a using department.

7. Require all parties involved in the negotiation, performance, or administration of City contracts to act in good faith.

C. Competition. All procurement transactions must be conducted in a manner providing full and open competition. Contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or request for proposals may be excluded from competing for such procurements if a determination in writing deems it is necessary to ensure objective contractor performance and eliminate unfair competitive advantage.

D. Confidential Information. Confidential information shall be designated as follows:

1. If a person believes that a bid, proposal, offer, specification, or protest contains information that should be withheld, a statement advising the Purchasing Officer of this fact shall accompany the submission and the information shall be so identified wherever it appears.

2. The information identified by the person as confidential may not be disclosed until the Purchasing Officer makes a written determination.

3. The Purchasing Officer shall review the statement and information and may determine in writing whether the information shall be withheld.

4. If the Purchasing Officer determines to disclose the information, then the

Purchasing Officer shall inform the person in writing of such determination.

2-306 ANTI-DISCRIMINATION.

No contractor while performing work for the City shall discriminate based on race, religion, color, sex, marital status, familial status, national origin, age, mental or physical disability, sexual orientation, gender identity, source of income; or political affiliation in programs, activities, services, benefits, or employment. No contractor shall discriminate against disadvantaged businesses. Contractors shall include a provision in each subcontract requiring subcontractors to comply with the requirements of this chapter.

2-307 LITIGATION SETTLEMENT

Agreements entered into as legal remedies in the settlement of litigation or of threatened litigation may be made by the City Manager, in consultation with the City Attorney, as long as the Agreement does not exceed $50,000.

2-308 APPROVED STANDARD CONTRACT FORMS.

The City Attorney or designee may prepare standard contract forms for use in the procurement of goods, services, and construction. The City’s standard contract forms should be used whenever possible and practical. Any revisions to the terms of standard contracts must be first approved by the City Attorney or designee. All contracts shall be in writing.

2-309 UNAUTHORIZED PURCHASES.

No City employee shall purchase goods or services or make contracts on behalf of the

City other than under the procedures in this chapter and the City shall not be bound by any such purchase or contract. The City Manager may impose discipline on employees who violate the requirements of this chapter in accordance with the City operating policies and procedures.

2-310 RESERVED

2-311 COST PRINCIPLES.

A. The Purchasing Officer shall establish cost principles which shall be used to determine the allowability of incurred costs for the purpose of reimbursing costs under contract provisions which provide for the reimbursement of costs.

B. The submission of current cost or pricing data may be required in connection with an award in situations in which analysis of the proposed price is essential to determine that the price is reasonable and fair.

C. Any contract, change order or contract modification under which cost or pricing data is required may contain a provision that the price to the City shall be adjusted to exclude any significant amounts by which the City finds that the price was increased because the contractor-furnished cost or pricing data was inaccurate, incomplete or not current as of the date agreed on between the parties. Such adjustment by the City may include profit or fee.

D. The requirements of this section need not be applied to contracts if any of the following apply:

1. The contract price is based on adequate price competition.

2. The contract price is based on established catalogue prices or market prices.

3. Contract prices are set by law or regulation.

2-312 MAXIMUM PRACTICABLE COMPETITION.

A. All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the City’s needs and shall not be unduly restrictive.

B. To the extent practicable and unless otherwise permitted by this Code, all specifications shall describe the City’s requirements in a manner that does not unnecessarily exclude a material, service, or construction item.

C. Proprietary specifications shall not be used unless the Purchasing Officer determines in writing that such specifications are required by demonstrable technological justification and that it is not practicable or advantageous to use a less restrictive specification. Past success in the material's performance, traditional purchasing practices, or inconvenience of drawing specifications do not justify the use of proprietary specifications.

D To the extent practicable, the City shall use accepted commercial specifications and shall procure standard commercial materials.

2-313 VALUE OF CONTRACT; MULTIPLE ITEMS.

Purchases of multiple items shall not be segregated for the purpose of avoiding the requirements of this chapter.

2-314 MULTI-YEAR CONTRACTS.

A. Unless otherwise provided by law, a contract for materials or services may be entered into for any period of time deemed to be in the best interest of this City, if the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of monies.

B. Prior to use of a multi-term contract, it shall be determined that the estimated requirements cover the period of the contract and are reasonably firm and continuing; and the contract will serve the best interests of the City by encouraging effective competition or otherwise promoting economies in City procurement.

C. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal year, the contract may be cancelled by the City and the contractor may be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies or services delivered under the contract.

D. For procurement purposes, the value of the contract is determined based upon the materials or services provided during the term of the contract.

2-315 to 320 RESERVED

2-321 EXCEPTIONS TO SOLICITATION REQUIREMENTS.

A. Exceptions to solicitation requirements. The following purchases are exempt from the solicitation requirements of this chapter to the extent set forth below:

1. Cooperative purchase contracts.

2. Sole source purchases.

3. Specialized services contracts.

4. Intergovernmental agreements and other contracts with government entities.

5. Purchase, sale, lease, exchange, or development of real property, including but not limited to appraisals, escrow service, title insurance, renters insurance or environmental assessments to the extent that they are required to complete the transaction. The exchange, development, lease, purchase, or sale of real property shall comply with A.R.S. Title 9.

6. Emergency purchases.

7. Agreements entered into as legal remedies in the settlement of litigation or of threatened litigation.

8. Purchases of law enforcement vehicles/equipment for undercover operations.

9. Contracts, agreements, or other documents entered into, issued, or established in connection with (i) the incurring of debt by the City, (ii) the making of program loans and similar extensions or advances of funds, aid or assistance by the City to a public or private body for the purpose of carrying out, promoting, or sustaining activities or programs authorized by law; or (iii) investment of funds by the City as authorized by law, and other financial transactions of the City that by their character cannot practically be established under the competitive contractor selection procedures of A.R.S. Title 41.

10. Procurements by a using department from Arizona Industries for the Blind, certified non-profit agencies for disabled individuals, and Arizona correctional industries program.

11. Development agreements entered into under A.R.S. § 9-500.05.

12. Works of art or entertainment.

13. City and employee certification, training, and membership dues.

14. Travel costs in accordance with City operating policies and procedures.

15. Computer software, computer services, network software, software maintenance, and software upgrades.

16. Information technology equipment and networking including, servers, data storage, computers, telecommunication and mobile devices, which include services for supporting the city network.

17. The purchase of merchandise for resale to the general public.

B. Authority of Purchasing Officer to act in the best interest of the City. Nothing in this section shall preclude the City from soliciting offers for purchases listed in CC 2-321 if the Purchasing Officer or City Council deems it to be in the best interest of the City to do so.

C. A purchase exempt from the solicitation requirements, which exceeds $50,000 requires approval by the City Council.

D. Special provisions for the purchase of used personal property. A using department may purchase used personal property or equipment without competitive solicitation if the

Purchasing Officer makes a written determination that the purchase will be unlikely to encourage favoritism or diminish competition; and result in substantial cost savings or promote the public's best interest. For purchases of used personal property or equipment more than $50,000, then Council approval is required.

2-322 COOPERATIVE PROCUREMENT

A. Authority. The City may award a contract for goods or services without competition when it is determined that the goods or services were procured by another governmental agency utilizing the same or similar procurement processes as the City. Such determination shall be made by the Purchasing Officer for procurements less than or equal to $50,000. For all other procurements the determination shall be made by the City Council. The determination shall be based on written findings that include, where applicable:

1. That the original procurement agency utilized the same or similar City procedures; and

2. That there is a clear cost savings to the City and that a separate procurement process is not likely to result in a lower price for such items or services.

3. That the original procurement agreement allows for cooperative purchases.

B. Procedure.

1. A using department seeking authority to award a contract pursuant to this section shall provide written documentation to the Purchasing Officer, signed by the using department director, which includes reasons the goods or services are from a cooperative purchase agreement. Documentation of the method used for selection of the contractor shall be included in the file.

2. If the contract is for $50,000 or less, the City Manager or designee may award the contract. If the contract is for more than $50,000, the contract shall be submitted to the City Council for approval.

2-323 SOLE SOURCE PROCUREMENT.

A. Authority. The City may award a contract for goods or services without competition when it is determined that the goods or services meet the sole source requirements. Such determination shall be made by the Purchasing Officer for procurements less than or equal to $50,000. For all other procurements the determination shall be made by the City Council. The determination shall be based on written findings that include, where applicable:

1. That the efficient utilization of existing goods or services requires the acquisition of compatible goods and/or services; and

2. The findings support the conclusion that there is one known capable source; no other reasonable alternative exists; or only one source meets the business needs of the City.

B. Procedure.

1. A using department seeking authority to award a contract pursuant to this section shall provide written documentation to the Purchasing Officer, signed by the using department director, which includes reasons the goods or services are from a sole source. Such competition as is practicable under the circumstances shall be used. Documentation of the method used for selection of the contractor shall be included in the file.

2. To the extent reasonably practicable, the using department shall negotiate with the sole source to obtain contract terms advantageous to the

City.

3. If the contract is for $50,000 or less, the City Manager or designee may

2-324 SPECIALIZED SERVICES CONTRACTS

A. Authority. The City may award a contract for specialized services without competition when it is determined that the services meet specific requirements.

Such determination shall be made by the Purchasing Officer for procurements less than or equal to $50,000. For all other procurements the determination shall be made by the City Council.

B. Procedure.

1. A using department seeking authority to award a contract pursuant to this section shall provide written documentation to the Purchasing Officer, signed by the using department director, which includes the reasons the specialized services are required.

2. To the extent reasonably practicable, the using department shall negotiate the contract to obtain contract terms advantageous to the City.

3. If the contract is for $50,000 or less, the City Manager or designee may

2-325 PURCHASE, SALE, OR LEASE OF REAL PROPERTY

A. The City may purchase, sell, or lease real property pursuant to A.R.S. §9-401 et. al.

B. The purchase or sale of real property must be approved by the City Council.

B. The City Manager may approve the leasing of real property if the value of the leasing action is $50,000 or less.

2-326 EMERGENCY PURCHASES.

A. Authority. The City may enter into a contract without complying with the requirements for competitive solicitation if an emergency exists.

B. Procedure.

1. A using department seeking authority to enter into an emergency contract shall provide written notice to the Purchasing Officer, signed by the using department director, which includes a description of the emergency, stating the anticipated harm from failure to enter into the contract on an expedited basis. Such competition as is practicable under the circumstances shall be used.

Documentation of the method used for selection of the contractor shall be included in the file.

2. If the contract is for $50,000 or less, the City Manager may award the contract.

If the contract is for more than $50,000, the Mayor may award the contract and the contract shall be submitted to the City Council at the next meeting of the City

Council.

2-327 to 330 RESERVED

2-331 CANCELLED SOLICITATIONS; REJECTED SUBMISSIONS; ADDENDA.

A. Cancellation or rejection of all offers. Any solicitation or part of a solicitation may be cancelled, or all offers or part of an offer may be rejected, when the cancellation or rejection is in the best interest of the City. The reasons for the cancellation or rejection shall be made part of the purchasing file. The City shall not be liable to any offeror for any loss or expense caused by or resulting from the cancellation of a solicitation or rejection of all offers. Any solicitation may be delayed or suspended when the delay or suspension is in the best interest of the City. The City shall make the reasons for the delay or suspension part of the purchasing file.

B. Rejection of an offer. An offer may be rejected for failure to comply with the specifications or the requirements of this chapter. The City may, but is not required to, waive a non-material defect in an offer.

C. Addenda to solicitation. A solicitation document shall only be changed by a written addendum. If required by the solicitation document or an addendum, the offeror shall provide written acknowledgment of receipt of all issued addenda with its offer. All persons who have registered as having obtained a solicitation will be notified of the addendum unless otherwise specified in the solicitation. The solicitation shall set forth how the City will provide notice of addenda and how the City will make the addenda available before closing. Addenda must be issued no less than 5 business days before the deadline for submittal of offers. The Purchasing Officer may extend the deadline for submittals if determined that prospective offerors need additional time to review and respond to addenda.

2-332 CONTRACT AMENDMENTS.

A. General. A contract may be modified by a contract amendment. If the contract was awarded pursuant to a formal competitive process under CC 2-345 or pursuant to bid process or alternative procurement method authorized by A.R.S. Title 34, the contract amendment shall not be used to substantially alter the specifications in the solicitation except that a contract amendment may be approved to increase or decrease quantities or scope items contained in the original specifications, change the contract time, comply with unforeseen needs for a project, or comply with applicable laws.

B. Contract amendments.

1. All amendments to contracts must be in writing and must be signed by an authorized representative of the contractor and the City. The person authorized by this chapter to approve a contract on behalf of the City may execute amendments to the contract. Except under CC 2-332(B)(2), if the contract was approved by the City Council, only the City

Council may approve an amendment.

2. Contract amendments that increase the contract amount may be approved by the City

Manager, department director, or designee if the contract is less than $50,000 and the amendment does not cause the contract to exceed $50,000. Any amendments that increase the contract to over $50,000 require approval of the City Council.

2-333 MISTAKES IN BID

A. Correction or withdrawal of inadvertently erroneous bids before or after bid opening may be permitted where appropriate. Mistakes discovered before bid opening may be modified or withdrawn by written notice received in the City Clerk’s Office prior to the time set for bid opening. After bid opening corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake of a non-judgmental character was made and that the mistake and the intended offer are evident in the uncorrected offer. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the City or fair competition shall be permitted. All decisions to permit the correction or withdrawal of bids shall be supported by written determination made by the Purchasing Officer and approved by the City

Manager.

2-334 RESPONSIBILITY OF BIDDERS AND OFFERORS.

A. Determination of Nonresponsibility. If a bidder or offeror who otherwise would have been awarded a contract is found nonresponsible, a written finding of nonresponsibility, setting forth the basis of the finding, shall be prepared by the Purchasing Officer. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a finding of non-responsibility with respect to such bidder or offeror. The final determination shall be made part of the contract file and be made a public record.

B. Right of Nondisclosure. Confidential information furnished by a bidder, offeror or respondent pursuant to this section shall not be disclosed by the City outside of the department, or using agency, without prior written consent by the bidder, offeror or respondent.

C. Factors to be considered in determining if a prospective contractor is responsible include:

1. The proposed contractor's financial, physical, personnel or other resources, including subcontracts;

2. The proposed contractor's record of performance and integrity;

3. Whether the proposed contractor is qualified legally to contract with the City;

and

4. Whether the proposed contractor supplied all necessary information concerning its responsibility.

D. The Purchasing Officer may establish specific responsibility criteria for a particular procurement. Any specific responsibility criteria shall be set forth in the solicitation.

2-335 PROTESTS.

A. Applicability.

1. Except as provided in subsection A.2, this section applies to protests of awards of contracts, determinations of debarment, and ranking on a short list for qualifications-based selection. Protests against a determination of debarment shall follow the procedures in CC 2-336 prior to filing a protest pursuant to this section.

2. This section shall not apply to petty cash purchases, small purchases, and intermediate purchases.

B. Protest by offeror. Only offerors in the solicitation may file protests pursuant to this section.

C. Delivery. Written protests shall be filed with the Purchasing Officer within seven days of the date of a (i) notice of intent to award a contract, (ii) notice of apparent low bidder,

(iii) notice of short list and rankings, as applicable, or (iv) notice of final decision of debarment pursuant to CC 2-336.

D. Content of protest. The protest shall include (i) the name, address and telephone number of the protester, (ii) a detailed statement of the legal and factual grounds for the protest, including copies of relevant documents, (iii) a description of the resulting harm to the protester, (iv) the relief requested, and (v) the signature of the authorized representative of the protester.

E. In the event of a timely protest, the City may proceed further with the solicitation or with the award of the contract unless the Purchasing Officer makes a written determination that there is a reasonable probability that the protest will be sustained or that the stay of procurement is not contrary to the substantial interests of the City.

F. Response to protest. The Purchasing Officer shall review the protest and issue a written disposition of the protest within fourteen days of filing, provided however, that if the Purchasing Officer determines more time is required to prepare a response, the

Purchasing Officer will notify the protester of the date when a response will be given.

1. The decision of the Purchasing Officer shall contain an explanation of the basis of the decision.

2. The Purchasing Officer shall furnish a copy of the decision to the Protester, by certified mail, return receipt requested, or by any other method that provides evidence of receipt.

3. If the Purchasing Officer sustains the protest in whole or in part and determines that a solicitation, evaluation process, proposed contract award, or contract does not comply with this Code, then the Purchasing Officer shall implement an appropriate remedy.

4. In determining an appropriate remedy, the Purchasing Officer shall consider all the circumstances surrounding the procurement or proposed procurement including but not limited to; the seriousness of the procurement deficiency, the degree of prejudice to other interested parties or to the integrity of the procurement system, the good faith of the parties, the extent of performance, costs to the City, the urgency of the procurement and the impact of the relief on the

Using Department’s mission.

5. An appropriate remedy may include one or more of the following.

a. decline to exercise an option to renew under the contract.

b. reject all bids, responses, or proposals.

c. terminate the contract.

d. reissue the solicitation.

e. issue a new solicitation.

f. award a contract consistent with the Procurement Code.

g. such other relief as determined necessary to ensure compliance with this code.

2-336 DEBARMENT.

A. Authority. Upon recommendation of the using department, the Purchasing Officer may debar a prospective offeror after providing notice and a reasonable opportunity to be heard in accordance with this section.

B. Standards for debarment. The Purchasing Officer may debar a person for any of the following reasons:

1. The person has been convicted of a criminal offense related to obtaining or attempting to obtain a public or private contract or subcontract or in the performance of such contract or subcontract.

2. The person has been convicted under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty that currently, seriously, and directly affects the prospective bidder’s or proposer’s responsibility as a contractor.

3. The person has been convicted under state or federal antitrust statutes.

4. The person has committed a violation of a contract provision and debarment for such a violation was listed in the contract terms and conditions as a potential penalty. A violation may include, but is not limited to, failure to have a current business license, failure to have a current contractor’s licenses, a failure to perform the terms of a contract, or an unsatisfactory performance in accordance with the terms of the contract. However, a failure to perform or an unsatisfactory performance caused by acts beyond the control of the contractor may not be considered to be a basis for debarment.

5. The person does not carry workers' compensation or unemployment insurance as required by statute.

6. The person discriminated against a state or a federal certified disadvantaged, minority, or other approved business enterprise.

C. Notice of intent to debar. The Purchasing Officer shall notify the person in writing of a proposed debarment by registered or certified mail, return receipt requested. This notice shall:

1. State that the City intends to debar the person.

2. Set forth the reasons for the debarment.

3. Include a statement that the person has a right to appeal the notice of intent to debar and have a hearing if the person files a written request with the Purchasing

Officer within 10 days after receipt of the notice.

D. Hearing procedure. If a hearing is required under this article, the Purchasing Officer shall appoint a Hearing Officer, who may be an employee of the City. The Hearing

Officer shall arrange for a prompt hearing and notify the parties of its time and place. The hearing shall be conducted in an informal manner without formal rules of evidence or procedure.

E. Recommendation by the Hearing Officer. The Hearing Officer shall make a recommendation to the Purchasing Officer based on the evidence presented. The recommendation shall include findings of fact and conclusions of law. The Purchasing

Officer may affirm, modify, or reject the Hearing Officer’s recommendation in whole or in part, may remand the matter to the Hearing Officer with instructions, or make any other appropriate disposition.

F. Final decision by Purchasing Officer. The decision by the Purchasing Officer shall be final. The decision shall be sent to all parties by certified mail.

G. Costs. The Purchasing Officer may allocate the hearing costs between the person appealing and the using department who made the recommendation for debarment. The allocation shall be based upon facts found by the Purchasing Officer and stated in the final order that, in the Purchasing Officer’s opinion, warrant such allocation of costs.

H. Limited participation. The Purchasing Officer may allow a debarred person to participate in solicitations on a limited basis during the debarment period upon written determination that participation is advantageous to the City.

2-337 ADMINISTRATIVE CONTRACT CLAIM

A. Any administrative claim against the City regarding a contract shall be in writing and shall include the following:

1. The name, address, email address, and telephone number of the claimant;

2. The signature of the claimant or its representative;

3. Identification of the solicitation or contract number;

4. A detailed statement of the legal and factual grounds of the claim including copies of relevant documents; and

5. The form of relief requested.

B. The City Manager shall have the authority to settle and resolve the claim after consultation with the Using Department, the City Attorney, and the Risk Manager. Any decision by the City Manager shall be in writing. If no decision is made within thirty days of the submission of the appeal, then the appeal is determined to be denied.

2-338 to 340 RESERVED

2-341 THRESHOLDS FOR PURCHASES.

These thresholds are based on purchases made with local or state funding. Purchases made with federal funds need to comply with federal purchasing requirements.

A. Petty cash: $100 or less.

B. Small purchases: direct purchase $101 to $5,000.

C. Intermediate purchases: $5,001 to $50,000.

D. Formal purchases: greater than $50,000.

2-342 PETTY CASH ($100 OR LESS).

A. Applicability. This section applies to purchases of incidental and non-recurring goods and services costing $100 or less, including transaction privilege tax.

B. Authority. A using department may establish a petty cash fund for the purchase of non-recurring goods and services costing $100 or less. The Purchasing Officer may approve the purchase from the using department’s petty cash fund in an amount greater than $100; but not to exceed $500.

C. Procedures. The using department shall follow policy and procedures set forth in city operating policies and procedures.

2-343 SMALL PURCHASES – DIRECT PURCHASE ($101 TO $5,000).

A. Applicability. This section applies to purchases of goods and services valued at $101 to $5,000, including transaction privilege tax.

B. Authority. A using department or the Purchasing Officer may award a contract for a small purchase.

C. Procedure. A using department or the purchasing department may make small purchases by direct purchase without quotes or formal solicitation, but shall provide competition when practical.

2-344 INTERMEDIATE PURCHASES ($5,001 TO $50,000).

A. Applicability. This section applies to purchases of goods and services valued at $5,001 to $50,000, including transaction privilege tax.

B. Authority. A using department or the Purchasing Officer may award a contract for an intermediate purchase.

C. Procedure. A using department or the Purchasing Officer may make intermediate purchases after obtaining at least 3 written quotes.

1. The using department shall establish written specifications for the good or service.

2. The using department shall establish criteria for award of the contract, including but not limited to price, experience, expertise, product functionality, or suitability for a particular purpose.

3. Requests for quotes shall be in writing. Quotes may be by mail, electronic, facsimile transmission, or email. A minimum of 3 quotes shall be solicited from vendors who can reasonably be expected to provide the required goods and/or services.

4. The using department shall make a written record of all vendors from whom quotes were solicited and the amount of the quotes.

5. If 3 potential vendors are not available, a lesser number may be requested provided a written record is made of the effort to obtain 3 quotes.

6. The using department shall award the contract to the responsive, responsible offeror who provides the lowest quote, or if criteria other than price are to be considered, whose proposal is the highest scoring proposal.

7. A price agreement solicited pursuant to this section may be used for contracts with a term up to 5 years and for a maximum total dollar amount less than or equal to $50,000 within each fiscal year.

2-345 FORMAL PURCHASES (GREATER THAN $50,000).

A. Applicability. This section applies to purchases of goods and services with a value greater than $50,000.

B. Authority. The City Council shall award contracts for formal purchases.

C. Procedure. Formal purchases may either be by competitive sealed bids or competitive sealed proposals.

1. Prior to bid or proposal opening, the Purchasing Officer shall have the authority to extend the deadline for submittal of bids or proposals when unforeseen circumstances arise.

2. The Purchasing Officer may require the submission of security to guarantee faithful bid and contract performance. Security shall be in the form specified within the City’s bid solicitation, and may include but not limited to a performance bond, fidelity bond or irrevocable letter of credit. In determining the amount of security required for each contract, the Purchasing Officer shall consider the nature of the performance and the need for future protection to the

City. The requirement for security must be included in the invitation for bid or requests for proposals. Failure to timely submit security in the amount and type required may result in the rejection of the bid or proposal.

2-346 COMPETITIVE SEALED BIDDING.

A. Bid specifications.

1. The using department shall prepare written specifications and plans for the solicitation, which may include the form of the contract that the City will require the successful bidder to execute.

2. When the using department considers it impractical to initially prepare specifications for a solicitation to support an award based on price, the City may issue a multi-step solicitation requesting the submission of unpriced submittals and then later issue a solicitation limited to the offerors whom the using department has determined to be eligible to submit a priced offer under the criteria set forth in the initial solicitation of unpriced submittals.

B. Notice. Notice of the solicitation shall be published on the City’s website and in compliance with A.R.S. § 39-203. The notice shall include:

1. A time and date by which the offers must be received and a place at which the offers must be submitted.

2. The name and title of the person designated for the receipt of offers and the person designated by the using department as the contact person for the solicitation, if different.

3. The time, date, and location of any pre-bid conference, whether attendance at the conference will be mandatory or voluntary; and a statement that statements made by the City’s representatives at the conference are not binding upon the city unless confirmed by written addendum.

4. The location of where offer packages may be obtained or reviewed.

5. The time, date, and place of offer opening.

6. A statement that each offeror must identify whether the offeror is a resident offeror, if applicable.

7. A statement that all required forms and information must be submitted with the offer.

8. A statement of how the City will notify offerors of addenda and how the City will make addenda available.

9. A statement of whether bid security is required to be submitted with the offer.

10. A statement that the City may cancel the solicitation or reject any or all offers in accordance with CC 2-331.

C. Offer opening.

1. Offers shall be opened publicly at the time and place designated in the solicitation or the time and date as extended by the Purchasing Officer.

2. The amount of each offer and such other relevant information as may be specified by the Purchasing Officer or using department's director, together with the name of each offeror shall be recorded. This record shall be open to public inspection after the offer opening. Confidential, Trade secrets or other proprietary data designated in the offers will remain confidential unless otherwise required by the public records law.

3. Offers received after the deadline shall be returned unopened to the offeror.

4. Bids shall be evaluated based on the requirements set for in the Invitation for

Bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose.

Those criteria that will affect the bid price and considered in evaluation for award, shall be objectively measurable. No criteria may be used in bid evaluations that are not set forth in the Invitation for Bids.

D. Contract award.

1. The contract shall be awarded to the lowest responsible, responsive bidder, after applying any applicable preference under CC 2-349.

2. The successful offeror shall submit all required information and documents as a condition of final award of the contract.

E. Protests. Protests on the award of a contract shall be filed in compliance with CC 2-

335.

2-347 COMPETITIVE SEALED PROPOSALS.

A. Proposal specifications.

1. The using department shall prepare written specifications for the solicitation, which may include the form of the contract that the City will require the successful proposer to execute, subject to any negotiations pursuant to this section.

2. The specifications shall include…