Division 2. Procurement Of Commodities Or Contractual Services, Article IV. Procurement Of Property And Services, Chapter 2. Administration, Code of Ordinances, Lake Wales

Lake Wales (Current through Ordinance 2023-17, Adopted 7-05-2023)

Code of Ordinances

Chapter 2. Administration

Article IV. Procurement Of Property And Services

Division 2. Procurement Of Commodities Or Contractual Services

§ 2-416. Applicability.

Latest version.

All commodities and contractual services as defined in section 2-401 shall be procured in accordance with the provisions of this division.

(Ord. No. 95-01, § 1, 2-21-95; Ord. No. 2011-32, § 1, 12-20-11; Ord. No. 2013-17, § 1, 11-5-13)

§ 2-417. Commodities or contractual services not exceeding the threshold amount for Category Two (thirty five thousand dollars ($35,000.00)).

Effective on Tuesday, March 17, 2020

(a) Informal bidding. Informal competitive bidding will be required for the purchase of commodities and contractual services when the cost exceeds one thousand dollars ($1,000.00). A minimum of three (3) bids will be required as follows:

(1) Verbal bids may be accepted for commodities or services which do not exceed two thousand five hundred dollars ($2,500.00).

(2) Written bids will be required for purchases in excess of two thousand five hundred dollars ($2,500.00).

(b) Award of bid. Awards shall be made to the qualified bidder with the lowest responsive bid. Preference shall be given to a local vendor when the bid is not more than five (5) percent higher than the low bid.

(c) Documentation. All purchases will be documented and authorized on standard forms or vouchers provided by the finance department. The issuance of a purchase order will be required prior to the purchase of commodities when cost exceeds one thousand dollars ($1,000.00).

(d) Authorization. Authorization for a purchase will be obtained prior to making the purchase as follows:

(1) Department heads or their designees may authorize purchases which do not exceed one thousand dollars ($1,000.00).

(2) The city manager or their designee must authorize all purchases which exceed one thousand dollars ($1,000.00) before the purchase is made.

(3) The city commission must authorize all purchases which exceed the threshold amount in Category One (twenty thousand dollars ($20,000.00)) and all purchases made from unbudgeted fund balances.

(e) Procurement card purchases. The city shall only be financially responsible for procurement card transactions for which the city commission has approved the procurement card vendor to provide such services for the city.

(1) The city manager and/or finance director shall be the authorized agent(s) for obtaining procurement cards from a city commission approved procurement card contract vendor.

(2) All procurement card purchases must follow the rules and procedures defined in the city commission approved purchasing card policy manual.

(3) The city may use procurement cards for the purchase of commodities or contractual services under the following conditions:

a. When the cost of commodities or contractual services does not exceed one thousand dollars ($1,000.00).

b. When the cost of travel expenses does not exceed one thousand five hundred dollars ($1,500.00).

c.When the cost of commodities or contractual service exceeds one thousand dollars ($1,000.00) or when the cost of travel expenses exceed one thousand five hundred dollars ($1,500.00), with prior written authorization of the city manager.

(f) Exceptional purchases. When the purchase price of commodities or contractual services does not exceed the threshold amount for Category Two (thirty five thousand dollars ($35,000.00)), purchases may be excepted from the requirement of informal competitive bidding if the following conditions exist:

(1) Emergency conditions. Purchases may be excepted from informal competitive bidding if the city manager determines that an immediate danger to the public health, safety or welfare or other substantial loss to the public requires emergency action.

a. Emergency procurement shall be made with such competition as is practicable under the circumstances.

b. A statement explaining the need for emergency procurement shall be furnished to the finance director with the voucher authorizing payment.

(2) Single source. Commodities or contractual services available only from a single source may be excepted from the bid requirements if it is determined that such commodities and services are available only from a single source and such determination is documented in writing.

a. No sole source purchase shall be made without the prior authorization of the city manager.

b. A copy of the written determination of single source availability shall be furnished to the finance director with the voucher authorizing payment.

(3) Consolidated purchasing. In accordance with section 2-403 or section 2-404, procurement of commodities and contractual services may be excepted from the informal competitive bid requirements of this section if the city is "piggy-backing" or consolidating its procurement with that of another agency or entity constituted for governmental purposes; provided that the commodities or contractual services to be procured have been subjected to competitive bidding by said other agency or entity and documentation of such competitive bidding is included in the official records of the city.

(g) Encumbrance. No purchase shall be made until sufficient funds are encumbered by the finance department. The finance department shall not process an encumbrance when the remaining balance of budgeted funds in the applicable expenditure account is insufficient to make the purchase.

(h) Administrative procedures. All agencies making purchases will comply with administrative procedures developed by the finance department.

(i) Review of contract. Each contract for contractual services costing more than the threshold amount for Category One (twenty thousand dollars ($20,000.00)), shall be executed in a form of agreement provided by the city or shall receive legal review and approval as to form before the contract is executed. No contract shall be approved which does not include the minimum provisions required by section 2-406

(j) Record retention. The original executed contract shall be forwarded to the city clerk for addition to the official records of the city and retention in accordance with the requirements of section 2-481

(Ord. No. 95-01, § 1, 2-21-95; Ord. No. 2000-16, § 1, 9-19-00; Ord. No. 2009-27, § 1, 11-3-09; Ord. No. 2011-32, § 1, 12-20-11; Ord. No. 2013-17, § 1, 11-5-13; Ord. No. 2020-05, § 1, 3-17-20)

§ 2-418. Commodities or contractual services in excess of the threshold amount for Category Two (thirty-five thousand dollars ($35,000.00)).

Latest version.

(a) Competitive sealed bidding. Unless otherwise authorized by this article, all contracts for purchasing commodities or contractual services when the cost exceeds the threshold amount for Category Two (thirty-five thousand dollars ($35,000.00)) shall be awarded by competitive sealed bidding.

(1) An invitation to bid shall be issued which shall include:

a. A detailed description of the commodities or contractual services required.

b. The date, time and place for submittal of bids.

c. All contractual terms and conditions applicable to the procurement of commodities or contractual services.

d. The criteria to be used in determining acceptability of the bid which shall include, but need not be limited to, price.

(2) The invitation to bid shall be advertised by the publication of a notice in the legal section of a newspaper of general circulation in the county at least once, or by posting three (3) notices in three (3) conspicuous places in the city, one (1) of which shall be the public notices board in city hall. A minimum of fifteen (15) days shall elapse between the date of publication or posting of such notice and the date of receiving bids. In addition, an invitation to bid may be mailed to any known prospective bidders.

(3) If the renewal of the contract is contemplated, it shall be so stated in the invitation to bid, and the bid shall include the price for each year for which the contract may be renewed. Evaluation of bids shall include consideration of the total cost for each year as quoted by the bidder.

(4) No criteria may be used in determining acceptability of the bid that were not set forth in the invitation to bid.

(5) All bid proposals, disclosures, bonds and affidavits shall be submitted on forms provided by the city.

(6) The contract shall be awarded with reasonable promptness by written notice to the qualified and responsive bidder who submits the lowest responsive bid after the city manager obtains the formal approval of the city commission for the bid award. This bid must be determined in writing to meet the requirements and criteria set forth in the invitation to bid. Preference shall be given to a local vendor when the bid is not more than five (5) percent higher than the low bid.

(b) Competitive sealed proposals. When the city manager determines that the use of competitive sealed bidding is not practicable, commodities or contractual services shall be procured by competitive sealed proposals.

(1) A request for proposals shall be issued which shall include:

a. A detailed description of the commodities or contractual services required.

b. The date, time and place for submittal of proposals.

c. All contractual terms and conditions applicable to the procurement of commodities or contractual services.

d. The criteria to be used in determining acceptability of the proposal which shall include, but need not be limited to, price.

(2) The request for proposals shall be advertised by the publication of a notice in the legal section of a newspaper of general circulation in the county at least once. A minimum of fifteen (15) days shall elapse between the date of publication of such notice and the date of receiving bids. In addition, a request for proposals may be mailed to any known prospective offerors.

(3) If the renewal of the contract is contemplated, it shall be so stated in the request for proposals, and the proposal shall include the price for each year for which the contract may be renewed. Evaluation of proposals shall include consideration of the total cost for each year as quoted by the offeror.

(4) To ensure full understanding of and responsiveness to the solicitation requirements, discussions may be conducted with qualified offerors. The offerors shall be accorded fair and equal treatment prior to the submittal date specified in the request for proposals.

(5) All bid proposals, disclosures, bonds and affidavits shall be submitted on forms provided by the city.

(6) The contract shall be awarded, after obtaining approval of the city commission, to the qualified and responsive offeror whose proposal is determined in writing to be the most advantageous to the city, taking into consideration the price and the other criteria set forth in the request for proposals. The contract file shall contain the basis on which the award is made.

(c) Exceptional purchases. When the purchase price of commodities or contractual services exceeds the threshold amount for Category Two (thirty-five thousand dollars ($35,000.00)), purchases may be excepted from the requirement of competitive sealed bids or competitive sealed proposals if the following conditions exist:

(1) Emergency conditions. Purchases may be excepted from competition if the city manager determines that an immediate danger to the public health, safety or welfare or other substantial loss to the public requires emergency action.

a. Emergency procurement shall be made with such competition as is practicable under the circumstances.

b. The city manager shall furnish copies to the city commission of a written statement certifying the emergency and any other documents relating to the emergency action.

c. A copy of the statement shall be furnished to the finance director with the voucher authorizing payment.

d. The city shall comply with requirements of section 2-456 when procurement pertains to construction of municipal public works.

a. The city manager shall furnish copies to the city commission of the written determination of single source availability.

b. No purchase shall be made without the prior authorization of the city commission.

c. A copy of the written determination shall be furnished to the finance director with the voucher authorizing payment.

d. The city shall comply with requirements of section 2-456 when procurement pertains to construction of municipal public works.

(3) Consolidated purchasing. In accordance with section 2-403 or section 2-404, procurement of commodities and contractual services may be excepted from the competitive sealed bid requirements of this section if the city is "piggy-backing" or consolidating its procurement with that of another agency or entity constituted for governmental purposes; provided that the commodities or contractual services to be procured have been subjected to competitive sealed bidding by said other agency or entity and documentation of such competitive sealed bidding is included in the official records of the city. The city shall comply with requirements of section 2-456 of this chapter when procurement pertains to construction of municipal public works.

(4) Direct purchases. Florida Statute provides that, when feasible, governmental entities may structure contracts to avoid sales tax on public works project materials by purchasing those materials directly from the supplier rather than having the contractor make those purchases. In accordance with the rules of the department of revenue, a direct purchase program is the only way to avoid the sales tax on materials incorporated into a public project. To conform to F.S. § 212.08(6), the city will comply with all basic requirements to qualify for the direct purchase exemption:

a. The city must issue its own purchase order directly to the supplier;

b. The city must provide the supplier with a copy of the government's exemption certificate;

c. Payment must be made by the city directly to the supplier;

d. The city must take title directly from the supplier upon delivery rather than from the contractor after the job is completed; and

e. The city rather than the contractor must bear the risk of loss of the materials, which is generally established through the contract provisions concerning casualty insurance.

(5) Informal competitive selection. Where the scope of a project is small in size, specialized in nature, or possesses such other characteristics that, in combination with existing conditions in the construction market, make it difficult or impossible to obtain responsive bids and a fair and reasonable price through the formal competitive sealed bidding process, procurement through informal competitive selection may be authorized by the city manager.

a. Procurement shall be made with such competition as is practicable after due public notice in accordance with section 2-418(a)(2) and after receipt of written quotes.

b. The city manager shall furnish copies to the city commission of a written statement certifying the need for informal competitive selection.

c. No purchase shall be made without the prior authorization of the city commission.

d. The city shall comply with requirements of section 2-456 of this chapter when procurement pertains to construction of municipal public works.

e. A copy of the statement shall be furnished to the finance director with the voucher authorizing payment.

(6) Competitive sealed bid requirements exempted by F.S. ch. 247. The following contractual services are not subject to the competitive sealed bid requirements of this section:

a. Artistic services.

b. Auditing services.

c. Legal services, including attorney, paralegal, expert witness, appraisal or mediator services.

d. Health services involving examination, diagnosis, treatment, prevention, medical consultation, or administration.

e. Training and education services provided to injured employees pursuant to workers' compensation laws.

f. Services provided by governmental agencies.

g. Other contractual services exempted from competitive sealed bid requirements by F.S. ch. 247.

(7) Specialized or standardized equipment. Where specialized or standardized equipment is determined by the city manager to be in the best interest of the public, procurement shall be exempt from the requirements of competitive sealed bidding, provided that such procurement of specialized or standardized equipment shall be made with such competition as is practicable under the circumstances. Documents certifying the need for specialization or standardization shall be furnished to the city commission and shall be furnished to the finance director with the voucher authorizing payment.

(8) Surplus property. Purchase of surplus property shall be exempt from the requirements of competitive sealed bidding. The city manager may provide written authorization to any officer, employee or agency to enter a bid or bids, or make any payment required in connection with such bidding, in the city's behalf for any surplus property offered for lease, sale or other disposal by any governmental agency or private entity if the purchase of such surplus property is deemed by the city manager to be in the best interest of the public.

(9) Noncompetitive bid or proposal. If fewer than three (3) responsive bids or proposals for commodity or contractual services purchases are received, the city manager may negotiate or authorize the negotiation of the best terms and conditions.

(d) Procurement without competition. In any procurement that is accomplished without competition, the individuals taking part in the development or selection of criteria for evaluation, the evaluation process, and the award process shall attest in writing that they are independent of, and have no conflict of interest in, the entities evaluated and selected.

(e) Compliance with competitive sealed bidding requirements. An agency shall not divide the procurement of commodities or contractual services in order to avoid the requirements of subsections (a) or (b).

(f) Extension of contracts. Extension of a contract for contractual services shall be in writing for a period not to exceed six (6) months and shall be subject to the same terms and conditions set forth in the initial contract. There shall be only one (1) extension of a contract unless the failure to meet the criteria set forth in the contract for the completion of the contract is due to events beyond the control of the contractor.

(g) Renewal of contracts. Except for those contracts initially procured pursuant to subsection (c), contracts for commodities or contractual services may be renewed on a yearly basis for no more than two (2) years or for a period no longer than the term of the original contract, whichever period is longer. Renewal of a contract shall be in writing and shall be subject to the same terms and conditions set forth in the original contract. The cost of any contemplated renewals shall be included in the invitation to bid or request for proposals. Renewals shall be contingent upon satisfactory performance evaluation by the agency.

(h) Selection committee. For requests for proposals, the city manager will appoint a selection committee of three (3) employees who have experience and knowledge in the program areas and service requirements for which contractual services are required to aid in the selection of contractors for contracts of more than the threshold amount provided for Category Four (one hundred ninety-five thousand dollars ($195,000.00)).

(i) Preference to minority business enterprise. Whenever two (2) or more bids which are equal with respect to price, quality and service are received for the procurement of commodities or contractual services, a bid received from a business which certifies that it is a minority business enterprise shall be given preference in the award process.

(j) Preference to businesses with drug-free workplace programs. Whenever two (2) or more bids which are equal with respect to price, quality and service are received for the procurement of commodities or contractual services, a bid received from a business which certifies that it has implemented a drug-free workplace program shall be given preference in the award process. In order to have a drug-free workplace program, a business shall:

(1) Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition.

(2) Inform employees about the dangers of drug abuse in the workplace, the business's policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation, and employee assistance programs, and the penalties that may be imposed upon employees for drug abuse violations.

(3) Give each employee engaged in providing commodities or contractual services that are under bid a copy of the statement specified in paragraph (1).

(4) In the statement specified in paragraph (1), notify employees that, as a condition of working on the commodities or contractual services that are under bid, the employee will abide by the terms of the statement and will notify the employer of any conviction of, or plea of guilty or nolo contendere to, any violation of F.S. ch. 893, or of any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than five (5) days after such conviction.

(5) Impose a sanction on, or require the satisfactory participation in a drug assistance or rehabilitation program if such is available in the employee's community by any employee who is so convicted.

(6) Make a good faith effort to continue to maintain a drug-free workplace through implementation of this section.

(k) Review of contract. Each contract for services procured under this section shall be executed in a form of agreement provided by the city or shall receive legal review and approval as to form before the contract is executed. No contract shall be approved which does not include the minimum provisions required by section 2-406

(l) Contract manager. For each contractual services contract, an employee shall be designated to function as contract manager who shall be responsible for enforcing performance of the contract terms and conditions and serve as a liaison with the contractor. It will be the responsibility of this employee to maintain a contract file and to ensure that contractual services have been rendered in accordance with the contract terms prior to processing any invoice for payment.

(m) Record retention. For procurement of commodities and contractual services in excess of the threshold amount for Category Two (thirty-five thousand dollars ($35,000.00)), the following shall be forwarded to the city clerk for addition to the official records of the city and retention in accordance with the requirements of section 2-481

(1) One (1) copy of the invitation to bid or request for proposals;

(2) One (1) copy of all competitive sealed bid or competitive sealed proposal tabulations;

(3) A copy of the city commission minutes documenting the bid award;

(4) The original executed contract.

(n) Validity of existing contracts. Nothing in this section shall affect the validity or effect of any contract in existence prior to the adoption of this article.

(o) Bid protest.

(1) Any actual or prospective bidder, offerer, or contractor who wishes to challenge a solicitation or an award of contract may make a protest to the city manager.

(2) Protests must be in writing and received by the purchasing department and the city manager's office no later than seventy-two (72) hours of the electronic posting of award or intended award. The written protest shall identify the protester and the solicitation involved; include a plain, clear statement of the grounds on which the protest is based; and refer to the statutes, laws, ordinances, or other legal authorities which the protester deems himself entitled by application of such authorities to such grounds.

(3) The city manager will review the matter and shall render a written settlement decision within twenty-one (21) days of the written protest. At the city manager's discretion a hearing over the subject matter might be held.

(4) In no case will the protesting bidder or offerer be entitled to any costs incurred with the solicitation, including bid preparation costs and attorney's fees.

(5) In the event of a timely protest under this section, the city manager shall not proceed further with the award of the contract until he issues a written settlement decision.

(Ord. No. 95-01, § 1, 2-21-95; Ord. No. 2000-16, § 1, 9-19-00; Ord. No. 2009-27, § 1, 11-3-09; Ord. No. 2011-32, § 1, 12-20-11; Ord. No. 2013-17, § 1, 11-5-13)