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PURCHASING POLICIES
Sections:
3.04.010 Purchasing Manager.
3.04.020 Procedures.
3.04.030 Competitive bidding and exceptions.
3.04.040 Exempted purchases-Approval.
3.04.050 Purchases under twenty-five thousand dollars.
3.04.060 Purchases twenty-five thousand dollars or over.
3.04.070 Purchases over fifty thousand dollars when a competitive
process is not utilized.
3.04.080 Purchases reported to City Council.
3.04.085 Capital improvement construction projects five hundred
thousand dollars or over.
3.04.090 Unbudgeted purchases over fifty thousand dollars.
3.04.100 Bid requirements.
3.04.110 Sealed bids upon recommendations of the City Manager.
3.04.120 Successful bids.
3.04.130 Emergency procedures.
3.04.140 Contracts for public improvements.
3.04.150 Execution of contracts.
3.04.160 Debarment and suspension.
3.04.170 Protested solicitations or awards.
3.04.180 Construction Management-General Contractor (CMGC)
Contracts.
3.04.010 Purchasing Manager.
The Director of Finance is authorized to designate a Purchasing Manager on behalf
of the city. Purchases made by the Purchasing Manager shall be in accordance
with certain policies and procedures as hereinafter set forth in this chapter.
(Ord. O-88-6 § 1, 1988).
3.04.020 Procedures.
In enforcing and administering purchasing procedures the Purchasing Manager
shall:
A. Establish and enforce specifications with respect to supplies, materials
and equipment required by the city. In developing specifications, the Purchasing
Manager shall consult with the various departments concerned in determining
the quality of the goods to be purchased;
B. Supervise the inspection of all deliveries of supplies, materials and equipment
and determine their quality, quantity and conformity with specifications;
C. Have authorization to transfer between offices or other city departments
surplus or unused materials;
D. Procure materials and supplies at the lowest cost consistent with quality.
(Ord. O-88-6 § 2, 1988).
3.04.030 Competitive bidding and exceptions.
A. Before the City makes any purchase, and subject to the provisions hereinafter
set forth, there shall be given ample opportunity for competitive bidding subject
to such exemptions as the City Council may, upon recommendation of the City
Manager, prescribe by ordinance or resolution.
B. The following items are exempted from competitive bidding:
1. Purchases made cooperatively with other units of government such as the State
of Colorado and governmental cooperative groups utilizing extended awards from
other governmental agencies; the City may, when deemed appropriate, extend its
awards to other governmental agencies;
2. Services of individuals possession a high degree of professional skill. Architectural
and engineering services over twenty-five thousand dollars ($25,000) shall be
selected through the City's formal registration process;
3. Departments are encouraged to use a formal selection process whenever possible
for all types of professional services;
4. Purchases from federal, state or other local government units;
5. Purchases made through other governmental entities as may be authorized by
ordinance or statute;
6. Magazines, books or periodicals;
7. Energy fuels, including gasoline and diesel fuel;
8. Clean-up and disposal of hazardous materials;
9. Items or products purchased by the City for retail sale to the public;
10. Supplies, products or services indispensable to the City which are obtainable,
for practical purposes, only from a single or sole source, as identified by
the Purchasing Manager using the procedure set out in the Finance Department
administrative regulations. The Purchasing Manager is authorized to negotiate
with the single or sole source regarding pricing, delivery, and other relevant
factors. (Ord. O-96-62 §, 1, 1996; Ord. O-93-4 § 1, 1993; Ord. O-88-6
§ 3, 1988).
3.04.040 Exempted purchases-Approval.
Exempted purchases shall require approval in accordance with the authorization
limits stated herein. (Ord. 0-88-6 § 4, 1988).
3.04.050 Purchases under twenty-five thousand dollars.
Any purchase costing under twenty-five thousand dollars ($25,000) shall require
approval by the department head or his designee; however, City departments are
authorized to use field purchase orders as defined in Finance Department regulations
for purchases costing not more than five hundred dollars ($500). (Ord. O-96-62
§ 2, 1996; Ord. O-93-4 § 2, 1993; Ord. O-88-6 § 5, 1988).
3.04.060 Purchases twenty-five thousand dollars or over.
Any purchase costing twenty-five thousand dollars ($25,000) or over shall require
approval by the department head or his designee and the City Manager or his
designee. Any purchase not containing the signatures of all the required parties
shall require approval by City Council. (Ord. O-96-62 § 3, 1996; Ord. O-88-6
§ 6, 1988).
3.04.070 Purchases over fifty thousand dollars when a
competitive process is not
utilized.
When a competitive process is not utilized, any purchase costing fifty thousand
dollars ($50,000) or more shall require approval by the department head, the
City Manager and City Council. (Ord. O-96-62 § 4, 1996; Ord. O-88-6 §
7, 1988).
3.04.080 Purchases reported to City Council.
Any purchase costing more than twenty-five thousand dollars ($25,000) shall
be reported to City Council by the Purchasing Division as part of the regular
monthly financial report. (Ord. O-96-62 § 5, 1996; Ord. O-88-6 § 8,
1988).
3.04.085 Capital improvement construction projects five
hundred thousand dollars
or over.
Any capital improvement construction project five hundred thousand dollars ($500,000)
or over shall require approval by the department head or his designee, the City
Manager or his designee, and City Council (Ord. O-96-62 § 6, 1996).
3.04.090 Unbudgeted purchases over fifty thousand dollars.
Any unbudgeted purchase, or any purchase with a change in funding source, that
is over fifty thousand dollars ($50,000) shall require approval by the City
Council. (Ord. O-96-62 § 7, 1996; Ord. O-88-6 § 9, 1988).
3.04.100 Bid requirements.
A. Whenever possible, the Purchasing Manager or his designee shall solicit a
minimum of two noted oral, faxed informal written or electronically transmitted
bids on any purchase costing at least two thousand five hundred dollars ($2,500)
but less than twenty-five thousand dollars ($25,000).
B. Any purchase costing twenty-five thousand dollars ($25,000) or more shall
require formal written sealed bids unless otherwise exempted herein. Formal
sealed bids may, at the discretion of the Purchasing Manager, include multi-step
bid procedures, total cost or life cycle cost procedures, or formal competitive
proposals as set out in the Finance Department administrative regulations. The
multi-step process may include pre-qualification of a product, a contractor,
or a vendor based on specifications or experience prior to the submission of
cost bids. After pre-qualification, only the products, contractors, or vendors
that meet the specifications or experience will be permitted to submit cost
bids. The total cost or life cycle cost procedure may include analysis of factors
such as maintenance costs, salvage value, and availability of parts. Such factors
may be considered as part of the cost of the product as well as the actual purchase
price. Formal competitive proposals may be used when the cost of a product or
service is not the primary selection factor and where it is not possible to
directly compare a product or a service to another.
C. Notwithstanding anything in this chapter to the contrary, written bids for
the purchase of energy fuels, including gasoline and diesel fuel, and cleanup
and disposal of hazardous materials, shall not be required.
D. Annual service and product contracts may be renewed by the Purchasing Manager
and department head up to four (4) times based on satisfactory performance and
price stability.
E. Small construction projects between twenty-five thousand dollars ($25,000)
and fifty thousand dollars ($50,000) may be bid with a short bid process that
will include a minimum of three firms selected from an approved vendor list
with the concurrence of the purchasing manager and the department head. (Ord.
O-96-62 § 8, 1996; Ord. O-93-4 §§ 3, 4, 1993; Ord. O-88-6 §
10, 1988).
3.04.110 Sealed bids upon recommendations of the City Manager.
Notwithstanding any of the provisions above, upon recommendation of the Purchasing
Manager, the City Manager may require sealed bids on any purchase costing less
than twenty-five thousand dollars ($25,000). (Ord. O-96-62 § 9, 1996; Ord.
O-88-6 § 11, 1988).
3.04.120 Successful bids.
A. Bids shall be awarded to the lowest responsive, responsible, and qualified
bidder as determined by the city. Factors to be considered in evaluating the
lowest responsive, responsible, and qualified bidder may include the quality,
availability, and delivery of the product, qualifications of the contractor
or vendor, and any special requirements relevant to the subject matter of the
bid as determined by the Purchasing Manager.
B. The Purchasing Division of the City of Lakewood will solicit Lakewood firms
to submit bids to the city through local advertising, and other suitable methods.
Where all award factors are equal, a bid will be awarded to the bidder with
its principal place of business located in the City of Lakewood. (Ord. O-93-4
§ 5, 1993; Ord. O-88-6 § 12, 1988).
3.04.130 Emergency procedures.
Notwithstanding any of the provisions above, when by reason of emergency or
immediate public necessity, it is not feasible or practicable to follow the
bidding procedures herein set forth or to obtain Council approval, and it is
necessary to authorize the purchase of equipment, supplies or services, or emergency
repair or maintenance work, without sealed or other bidding procedures, the
City Manager or the City Manager's designee is authorized on behalf of the City
Council to grant authority for such purchase of equipment, supplies, or services
in the event of emergency or immediate public necessity deemed to exist by the
City Manager or the City Manager's designee. As soon as practical after the
purchase, the Director of Finance or the Director of Finance's designee shall
notify City Council of purchases costing more than fifty thousand dollars. Wherever
possible, the Director of Finance or the Director of Finance's designee shall
solicit the bids for the emergency purposes, and shall make certain that whenever
possible the lowest responsive, responsible, and qualified bidder has been selected.
(Ord. O-99-44 § 1, 1999; Ord. O-93-4 § 6, 1993; Ord. O-88-6 §
13, 1988).
3.04.140 Contracts for public improvements.
A. Contracts for public improvements shall be let in accordance with City of
Lakewood bidding procedures. These contracts are subject to approval in accordance
with the authorization limits stated herein.
B. When a contract for public improvements is awarded in excess of fifty thousand
dollars, the following bonds or security shall be delivered to the city and
shall become binding on the parties upon execution of the contract:
1. A performance bond satisfactory to the city, executed by a surety company
authorized to do business in the State of Colorado or otherwise secured in a
manner satisfactory to the city, in an amount equal to one hundred percent of
the price specified in the contract; and
2. A payment bond satisfactory to the city, executed by a surety company authorized
to do business in the State of Colorado or otherwise secured in a manner satisfactory
to the city, for the protection of all persons supplying labor and material
to the contractor or its subcontractors for the performance of the work provided
for in the contract. The bond shall be in an amount equal to one hundred percent
of the price specified in the contract.
C. Nothing in this section shall be construed to limit the authority of the
city to require a performance bond or other security in addition to those bonds
or in circumstances other than those specified in subsection (B) of this section.
(Ord. O-93-4 § 7, 1993; Ord. O-88-6 § 14, 1988).
3.04.150 Execution of contracts.
Unless otherwise authorized or directed by City Council, all contracts obligating
the city may be executed on behalf of the city by the Mayor or the City Manager
and attested by the City Clerk, after approval of the form of the contract by
the City Attorney. (Ord. O-88-6 § 15, 1988).
3.04.160 Debarment and suspension.
A. Debarment procedures.
1. After reasonable notice to the person involved and reasonable opportunity
for that person to be heard, the Director of Finance or the Purchasing Manager,
after consultation with the City Attorney, shall have the authority to debar
a person or firm for any reason set forth in subsection (B) of this section
from consideration of award of contracts. The period of debarment shall be determined
by the Director of Finance or the Purchasing Manager on a case by case basis
based upon criteria set forth in the Finance Department administrative regulations.
2. The Director of Finance or the Purchasing Manager, after consultation with
the City Attorney, shall have the authority to debar a person or firm from consideration
for award of contracts if there is probable cause to believe such person or
firm has engaged in activities that may lead to debarment. The period of debarment
shall be determined by the Director of Finance or the Purchasing Manager on
a case by case basis based upon criteria set forth in the Finance Department
administrative regulations.
3. Debarment and suspension procedures shall be set out in the Finance Department
Administrative regulations.
B. Reason for debarment.
1. Conviction of a criminal offense as an incident to obtaining or attempting
to obtain a public or private contract or subcontract or in the performance
of such contract or subcontract;
2. Conviction under state or federal statutes of embezzlement, theft, forgery,
bribery, falsification or destruction of records, or receiving stolen property;
3. Conviction under state or federal antitrust statutes arising out of the submission
of bids or proposals;
4. Failure without good cause to perform in accordance with the terms of any
contract or unsatisfactory performance of any contract; or
5. Debarment by another governmental entity for any of the above reasons. (Ord.
O-96-62 § 10, 1996; Ord. O-93-4 § 8, 1993).
3.04.170 Protested solicitations or awards.
A. Any actual or prospective bidder, contractor, or vendor who is aggrieved
in connection with the solicitation or award of a contract may protest to the
Purchasing Manager, the City Manager, or the City Council as set out in this
section. The protest shall be submitted in writing within seven working days
after such aggrieved person knows or should have known of the facts giving rise
thereto.
1. Protests in connection with the solicitation or award of a contract involving
an amount less than twenty-five thousand dollars ($25,000) shall be filed with
and determined by the Purchasing Manager.
2. Protests in connection with the solicitation or award of a contract involving
twenty-five thousand dollars ($25,000) or over shall be filed with an be determined
by the City Manager.
3. Protests in connection with the solicitation or award of a contract involving
an award by City Council shall be filed with and determined by the City Council.
B. The Purchasing Manager, City Manager, or City Council as set out in subsection
(A) of this section, shall have the authority to settle and resolve a protest
of an aggrieved bidder, contractor, or vendor, actual or prospective, concerning
the solicitation or award of a contract. A written decision regarding the protest
shall be rendered within thirty (30) working days after the protest is filed.
This authority shall be exercised in accordance with the Finance Department
administrative regulations. (Ord. O-96-62 § 11, 1996; Ord. O-93-4 §
9, 1993).
3.04.180 Construction Management-General Contractor (CMGC)
Contracts.
Notwithstanding anything in Chapter 3.04 of the Lakewood Municipal Code to the
contrary, the City may negotiate Construction Management-General Contractor
(CMGC) Contracts and a variety of Construction Management-General Contractor
(CMGC) Contracts, that may include Design Build and Construction Management,
provided:
A. The total amount of the project has been appropriated and approved by City
Council, in accordance with Section 3.04.085.
B. The City seeks, at a minimum, two requests for proposal to complete the contract
project;
C. The contract is awarded to the most qualified, responsible and responsive
contractor, considering the purpose and nature of the contract. (Ord. O-2000-36
§ 1, 2000).
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