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HomeMy WebLinkAboutRes 2015 - Purchasing Policy (Repealed by Res 2097) Cover page to Resolution 2015 The full text of the resolution follows this cover page. Resolution 2015 was amended or repealed by the following resolutions. REPEALED Section(s) Repealed Repealed by Res # 2097 Washington Resolution No. Z 015 A RESOLUTION OF THE CITY COUNCIL OF THE CITYOF TUKWILA, WASHINGTON, ADOPTING A PURCHASING POLICY. WHEREAS, the City Council is committed to the highest standard of financial management; and WHEREAS, the expenditu res of pu blic funds forthe purchase of and contracting for goods, services, supplies, and materials must comply with all applicable state and local requirements; and WHEREAS, a comprehensive purchasing policy helps ensure that public funds are spent in the most economical and transparent way possible; and WHEREAS, the City Council desires to minimize confusion and eliminate redundancies or conflicts by consolidating and updating the City's procurement policies; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Purchasing Policy attached hereto as ExhibitA is adopted Section 2. City of Tukwila Administrative Policies 100-09, 300-002, 300-03, 300-07, 300-11, 900-03, are superceded. Section 3. The Purchasing Policy shall be reviewed on at least a biennial basis and updated as necessary. CC:\Legislative Development\Adopting a Purchasing Policy 10-30-20 LH:bjs Review and analysis by Barbara Saxton Page 1 of 2 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this 1-"Vkit day of •-eCerYlkoe-r , 2020. ATTEST/AUTHENTICATED: C?/r/te:cre-9 /tett-9 Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: e,prod yla saar...0o,a.coo, ./te; QS6?/Mtie Office of the City Attorney Attachment: Exhibit A — Purchasing Policy De'Sean Quinn Council President Filed with the City Clerk: 12--Z Ze) Passed by the City Council: lz--4--zP Resolution Number: 2015 CCALeg islative Development\Adopt ng a Purchasing Policy 10-30-20 LH:bjs Review and ana6lsb by Barbara Saxton Page 2 of 2 CITY OF TUKWILA PURCHASING POLICY TABLE OF CONTENTS 1. Procurement Policy Table 1 2. Administration 2 A. Purpose B. Controlling Laws C. Compliance with Policy D. Signing Authority and Approval 3. Determining Total Cost 2 A. Anticipated Cost B. Prohibition on "Bid Splitting" C. Total Costs to Include 4. Vendor Relations 3 A. Ethics of Procurement B. Buy Local C. Environmental Sustainability D. Social Equity 5. Grants and Federal Funding 4 A. General Rule B. Purchases of Goods or Service Reimbursable from a Federal Grant 6. Controlled Commodities 6 7. Types of Projects and Contract Approval Levels 6 A. Public Works B. All Other Types of Purchases 8. Threshold Cost Negotiation Requirements 6 A. $10,000 or Less: Direct negotiation B. $10,000-$50,000: 3 quotes needed C. $50,000 or More: Competitive bids 9. Public Works Projects 7 A. Defining Project Costs B. City Labor C. Bid Requirements D. Small Works Roster E. Limited Public Works Process F. Prevailing Wages G. Bid Deposit, Performance Bond, and Payment Bond H. Retainage I. Public Works over $1 Million J. Alternative Public Works Contracting Procedures 10. Competitive Bidding Process 9 A. Public Notice B. Bid Specifications C. Award D. Cancellation E. Bid Submittal F. Bid Security G. Non -Collusion Affidavit 11. Service Categories 11 A. Professional Architectural and EngineeringServices B. Personal Services C. Purchased Services 12. Materials, Supplies, Equipment (unrelated to Public Works, Services, A&E) 13 13. Exceptions to the Competitive Process 13 14. Disposal of Surplus Property 14 A. Policy Statement B. Definitions C. Procedures 15. Additional Considerations 16 A. Certificates of Insurance B. State Contractor's License C. City Business License 16. References 16 17. Glossary 17 ii 1. PROCUREMENT POLICY TABLE PROJECT TYPE CITY/TOWN COMPETITIVE BIDDING REQUIREMENTS Public Works Project Same Requirement for ALL cities If your project is: <$75,500 $75,500 $350,000 >$350,000 Type of Bidding Required: Minimal Competition Process Small Works Roster Formal Competitive Bidding Agencies may seek quotes directly from individual vendors. No competitive bidding required. List of qualified contractors who can bid for an eligible project below $350,000. (RCW 35.04.155). Requires local agencies to award PW contracts to responsible bidder with lowest responsive bid. Purchase of goods, equipment, supplies, or materials (not connected with PW project) . Citiesunder 20,000 population If your purchase is: <$7,500 $7,500-$15,000 >$15,000 Type of Bidding Required: Minimal Competition Process Vendor List Formal Competitive Bidding Agencies may seek quotes directly from individual vendors. No competitive bidding required. List of vendors who are interested in selling equipment, materials and supplies to the city. (RCW 39.04.190) Required to advertise the solicitation, but there is no required method or timeframe. Sealed bids and public bid opening required. Cities over 20,000 population Type of Bidding Required: State law does not establish any specific bid limits or competitive processes that first-class cities or code cities over 20,000 must follow for purchases. You should establish bid limits and competitive processes in policy. Professional Services Same Requirement for ALL cities Type of Bidding Required: All local governments must follow the same qualifications - based selection (QBS) process outlined in RCW 39.80. You must solicit competitive bids and evaluate them based on qualifications, without regard to cost. Personal Services Same Requirement for ALL cities Type of Bidding Required: State law does not require any thresholds or processes for personal services contracting. If your project receives any federal funding, must comply with federal competitive requirements. Purchased Services Same Requirement for ALL cities Type of Bidding Required: State law does not prescribe any thresholds or processes for purchased services contracting. However, some purchased services may require payment of prevailing wages. 1 City of Tukwila Purchasing Policy 12-1-2020 2. ADMINISTRATION A. Purpose This policy is intended to direct the purchase of goods and services at a reasonable cost. An open, fair, and competitive process is to be used whenever reasonable and possible. It is the City's policy to follow state requirements regarding the expenditure of publicfunds, to provide a fair forum forthose interested in bidding on public contracts and to help ensure that public contracts are performed satisfactorily and efficiently at the least cost to the public while avoid ingfraud and favoritism. B. Controlling Laws The expenditures of publicfundsforthe purchase of and contracting for goods, services, supplies, and materials shall comply with all applicable state law requirements as setforth in the Revised Code of Washington (RCW) and the Washington Administrative Code (WAC), in addition to other applicable local and federal laws and regulations. The City Attorney shall be consulted when questions regarding potential conflicts arise. C. Compliance with Policy The City's department heads shall implement, monitor, and enforce these policies. In the event of any conflict in procurement requirements or questions about proper procedure or other requirements, the matter shall be referred to the Finance Director. Willful or intentional violations of public procurement requirements may result in personal penalties, financial liabilities, and/or discipline per RCW 39.30.020. D. Signing Authority and Approval 1) Per RCW 35A.11.010, the City's authority to contract, and be contracted with, is vested in the City Council. City Council has delegated authority to the Mayor to execute contracts and contract modifications that meet the criteria of this Policy. 2) Any City staff member purchasinggoods on behalf of the City without proper authorization may be personally liable to the vendor and the City, and subject to disciplinary action. 3) Electronic signatures of authorized City staff may be accepted pursuant to the City's Electronic Signature Policy. 4) All work or any purchase authorized with a particular vendor, consultant, or contractor that cumulatively is expected on a particular project to exceed an annual amount of $20,000 must be in writing, and approved according to the authority provided forwithin Section 7. 3. DETERMINING TOTAL COST A. Anticipated Cost The anticipated annual need for a good or service (when it can reasonably be projected) shall be used to determine the cost of that good or service, and thus which contractapproval level, cost threshold, and other related pu rchasing requirements apply. City of Tukwila Purchasing Policy 12-1-2020 B. Prohibition on "Bid Splitting" The breaking of any project into units, or accomplishing any project by phases, is prohibited if it is done for the purposes of avoiding compliance with bidding statutes. RCW 35.23.352(1). To avoid bid splitting: 1) Combine all phases of a public work project when estimating cost. 2) Combine the total of foreseen identical items purchased at the same time or within a calendar year's time, in which the cost exceeds competition limits (i.e. office supplies, laundry services, janitorial paper products, etc.) 3) Items that are designed, or intended to be used together (i.e., water meters and covers), and the cost exceeds competition limits, should be bid together. C. Total Costs to Include Include costs such as taxes, freight, and installation charges when determining which cost threshold applies. Do not include the value of a trade-in. Trade-in value should be considered, however, to determine the lowest bid when competitive bidding is used. Further requirements for the total quantity of an item (when they can be reasonably projected) should be considered when determining which costthreshold and related purchasing requirements apply. Finally, if a projectis to be completed in phases, the total accumulated cost for all phases should be considered when determining which cost threshold applies. 4. VENDOR RELATIONS A. Ethics of Procurement The City is committedto providingaveryfair, transparentand equitable processto our purchases. We ask all staff participating in a solicitation and/or award processto be thoughtful of any perceived or actual conflicts of interest. See Tukwila Municipal Code (TMC) Section 2.95.030 ("Code of Ethics for Employees and Appointed Officials") for more information. The City seeks to avoid situations that involve conflicts of interests orthe appearance of such conflicts based on inappropriate opportunities to influence thesolicitationand/or award process. The City usesthe measures of how a reasonable person would perceive the situation. A reasonable person standard might consider howthe situation would appear if covered by a news story orviewed from the perspective of a public interest group. Common questions to ask are: Could you comfortablyexplain your actions? Would taxpayers believe you were acting in their best interest? City staff should refuse gifts, meals and invitations to events such as concertsor sporting events, that could be reasonably perceived as: improperly influencingperformance of your official duties; a reward for awarding a contract; or offered or given to influence, find favor, or with a reasonable expectation of creatingan obligation to the giver. Vendorsare prohibited from offering gifts during the solicitation and ensuing contract award process. Contact the City Attorney for assistance if you encounter unusual situations. Finally, contact the City Attorney before initiating a contract with a former City employee to determine if doing so would create an actual conflict of interest orthe appearance of a conflict of interest. 3 City of Tukwila Purchasing Policy 12-1-2020 B. Buy Local It is the City's policy to take affirmative steps to encourage local businesses to apply to participate in the procurementprocess. Further,to the extentlegally possible, the City will considerthe use of those local businesses in orderto support and enhance the local economy. C. EnvironmentalSustainability The City is committed to the protection of the environment and has taken steps towards becomingmore sustainable. Accordingly, departments are strongly encouraged to purchase recycled and other environmentally preferable products whenever practicable and to encou ragethis of their contractors. However, nothing in this policy shall be construed as requiring the purchase of products that do not perform adequately or are not available at a reasonable price. D. Social Equity The City shall endeavorto contract with minority-owned businesses and contractorsand materialssuppliers pursuant to the goals outlined in the City's Equity Policy, which provides guidance to City electedofficials, staff, boards and commissions, partners, residents, businesses and guests on howto actively promote equitable access to opportunities and services. 5. GRANTS AND FEDERAL FUNDING A. General Rule Not all grant funded projects are covered by this policy because many of the grants have their own procurementrequirements. Grant Managers are responsible forgrant purchases, but shall consult with Finance Director or designee priorto initiating any grant purchases. Grant managers are responsible for ensuring all grant purchases comply with grant procurement requirements. B. Purchases of Goods or Service Reimbursable from a Federal Grant When spending federal funding, the City complies with the UniformAdministrative Requirement, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance) published in Title 2 of the Code of Federal Regulations (2 CFR 200), specifically 2CFR 200.318 through 200.326, which can be accessed HERE. Please note that all grants are different, so one size does not fit all. Some grants simply require youto use your own procurement rules, while others requireyouto insert their contracting clauses into your contract. However, some general guidelines from the Uniform Standards are outlined below: 1) Section 200.62 of the UniformGuidance requires and defines internal control over compliance requirements forfederal awards to mean a process implemented by the City designedto provide reasonable assurance regarding the achievement of the following objectivesfor Federal awards: a. Transactions are properly recorded and accounted for, in orderto: i. Permit the preparation of re liablefinancialstatements and Federal reports; ii. Maintain accountabilityover assets; and iii. Demonstrate compliance with Federal statutes, regulations, andthe terms and conditions of the Federal award; 4 City of Tukwila Purchasing Policy 12-1-2020 b. Transactions are executed in compliance with: i. Federal statutes,regulations, and the terms and conditionsof the Federal award that could have a direct and material effect on a Federal program; and ii. Any other Federalstatutesand regulations that are identified in the Compliance Supplement; and iii. Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition. 2) Section 200.320 of the Uniform Guidance requires the City to ensure that purchasesare procured in accordance with the following guidelines: a. Procurement of $3,000 and under: To the extent practicable, the City must distribute these purchases equitably among qualifiedsuppliers. Purchases may be awarded withoutsoliciting competitive quotations if the City considers the price to be reasonable. b. Procurement between $3,000and$150,000: Price or rate quotations must be obtained from an adequate number of qualified sources. c. Procurementabove$150,000: Sealed Bids or Competitive Proposals or Sole Source: i. Sealed Bids— Bids are publicly solicited and a fixed price contract (lumpsum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowestin price. ii. Competitive Proposals— Used when more than one source has submitted an offer, and eithera fixed price orcost-reimbursement type contract is awarded. It is generally used when conditions are not appropriateforthe use of sealed bids. 3) Appendix II to Part 200— Contract provisionsforcity contract under federal awards requires the City to verify that all contractors are not suspended ordebarredfrom Federal funding. Priorto executing a federal -aid agreement, the City must verify status with the System for Award Management(SAM) at https://www.sam.gov/SAM/pages/public/searchRecords/search.jsf to detemmine if the contractor/consultant has been excluded from biddingon a federal aid contract. SAM isthe electronic version of the Lists of Parties Excluded from Federal Procurement and Non -Procurement Programs (Lists), which identifiesthose parties that have been suspended, debarred, otherwise excludedfrom bidding on federal contracts orconsultants that will not be eligible forfederal aid reimbursement. 4) Pursuant to the Washington Secretary of State Local Government Records Retention Schedu le, financial records pertainingto the purchase must be retained in accordance withthe applicable Washington State Records Retention schedule. Further, each City Department awarded grant services shall maintain recordsof all purchases and be responsible forfollowinggrant requirements. 5 City of Tukwila Purchasing Policy 12-1-2020 6. CONTROLLED COMMODITIES If the cost of the following item(s) is over$75.00, purchase of the item requires approval from the Tukwila Technology and Innovation Services Department Director or designee: A. Computers and related equipment, fax machines, printers, scanners and copiers, cell phones, telephone equipment, pagers, software or systems. B. Anything the Tukwila Technologyand Innovation Services Department is requested or required to install, connect, and/or service. 7. TYPES OF PROJECTS AND CONTRACTAPPROVAL LEVELS The following types of projects and contract approval levels are intended to be for projects with previously allocated fundsapproved by City Council. A. PublicWorks: 1) $20,000 or less Approved by Department Director 2) $20,001 to $39,999 Approved by Mayor, provided the project is in the Capital Improvement Program (CIP). 3) $40,000 or more Approved by City Council All public works projects must be within the CIP budget. If additional funds are required, the request must be approved by City Council. B. All other types of purchases (professional services, personal services, purchase d services, materials/supplies/equipment): Professional services provided by a consultant thatfall under architecture, engineering, land surveying, or landscape architecture. Contract approval levels: 1) $20,000 or less Approved by Department Director 2) $20,001 to $39,999 Approved by Mayor 3) $40,000 or more Approved by City Council Cost modifications that, either singly or combined with all previous modifications, increase the total contract amount from underto overthe $40,000 signature threshold shall be approved by City Council. 8. THRESHOLD COST NEGOTIATION REQUIREMENTS The following cost thresholds apply for purchases of supplies, equipment, and non-professional services. Non-professional services include routine and continuing functions predominately related to physical activities. The cost thresholds below do not apply to purchase constituting public works or professional services (including architectural or engineering services). Referto Section 13 for situations involving sole source or emergency purchases. City of Tukwila Purchasing Policy 12-1-2020 A. $10,000 or Less: Direct negotiation Purchases in this price range may be entered into through direct negotiation. Competition is not required, though departments should still make every effort to receive the best price possible. Documentation on all quotes should be retained. B. $10,000 to $50,000: 3 quotes needed For purchases in this price range, at least three quotes shall be obtained. Quotes may be obtained by telephone or in writing. Documentation on all quotes will be retained. The documentation will include the date, time, vendor contact name, phone number, email (if applicable), price quoted and any reasons for acceptance or refusal of the quote. C. $50,000 or More: Competitive Bids For purchases in this price range, competitive bids shall be obtained from at least 3 vendors. Bids do not need to be sealed but shall be in writing. See Section 10 on competitive bidding fora detailed description of the procedures to be followed. 9. PUBLIC WORKS PROJECTS Public works projects are defined by RCW 39.04.010 to include but are not limited to work, construction, alteration, repair, or improvement(otherthan ordinary maintenance, engineering analysis, and design and other professional services) executed at the City's cost, or which is by law a lien or charge on any property therein. If the Citycontractsoutfor maintenance orrepairs, the work is a public work for bidding and prevailing wage purposes. A. Defining Project Costs The cost of a public works project includesthe costsof materials, supplies, equipment, and labor on the construction of that project. It is important to determine the estimated total construction of each project in orderto correctlyapply bid limit dollar amountsto determine if the public works project mustbe competitively bid. If the total project amount is overthe bidthresholds,then all contracts, no matterthe individual dollar amount, must be procuredthrough the bid process. The estimate maybe prepared byan outsidethird party; however, the final cost estimate must be validated by the City. B. City Labor The City may use Public Works staff to perform and execute all projects not exceeding $116,155 (multiple crafts), or not exceeding $75,000 (single craft). RCW 35.23,352. These projects include equipment, material, supplies, and labor costs. However, the City must provide a report tothe state auditorof the costs of all public worksin excess of $5,000 that are not let by contract. For any project using Cityworkersthat costs in excess of $25,000, the City must publish a description ofthe project and its estimated cost in its offidal newspaper at least 15 days before beginning the work. RCW39.04.020. C. Bid Requirements Washington State law requiresthe Cityto call for bids whenever the cost of a public work will exceed $116,155, if more than one craftortrade is involved. If onlya single craft ortrade is involved, or if the projectis for street signalization or street lighting, bids must be called for if the cost is greaterthan $75,000. The City has establishedthefollowing additional guidelinesforthe biddingprocess: 7 City of Tukwila Purchasing Policy 12-1-2020 1) Public Works Projects $0 to $500: No competitive bidding is needed. 2) Public Works Projects $501 to $2,500: Solicit 3 informal quotes by telephone or in writing. 3) Public Works Projects $2,501 to $10,000: Solicit 3 informal quotes by telephone or in writing, preferablyfrom the Small Works Roster. 4) Public Works Projects $10,001 to$35,000: Solicit 3 quotes from the Small Works Roster. 5) Public Works Projects$35,001to $150,000: Solicit quotes from at least five contractors on the Small Works Rosterin a manner that will equitably distribute opportunities. 6) Public Works Projects$150,001 to $300,000: Solicit 5 quotes from Small Works Roster and notifythe remainingcontractorson the Rosterthat quotes on the workare being sought. 7) Exceptions. If the public works project is$250,000 or greater and is funded in whole or in part with federal funds, a formal bid process is required. This threshold is set by the federal government at 2 CFR § 200.88 and 48 CFR § 2.101 ("Simplified acquisition threshold") and is subject to periodic adjustment for inflation pursuant to 41 U.S.C. § 1908. 8) Public Works Projects More than $300,000: Advertise and call for bids using the formal bid process. All contracts are to be awarded to the lowest responsible bidder. RCW 39.04.350 outlines criteria that a bidder must meet in orderto be considered responsible. D. Small Works Roster If the public works contract is less than $350,000, state law authorizes citiesto use a small works roster process rather than the general competitive bidding requirementsto award public contracts. The City has contracted with MRSC (Municipal Research and Services Center) for the use ofa statewide electronic databaseforsmall public works contractors, consultingservices, and vendors. E. Limited PublicWorks Process The limited publicworks process is a type of small works roster process that applies only to contracts estimated to cost less than $50,000. While no advertisement is required, the Citymuststill solicit electronic orwritten quotations from a minimum of three contractorsfrom the appropriate Small Works Roster. This process is described in RCW39.04.155(3) and allows the Cityto waive the payment and performance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW. However, prevailingwage affidavits and insurance are still required. Consult with the CityAttomey for prior approval when waiving both of these requirements. F. PrevailingWages The City is required by RCW39.12.040to require contractors to pay prevailing wages on all pu blic works contracts. A "Statement of Intent to Pay Prevailing Wages" must be received from a contractor before any payment is made, and an "Affidavit of Wages Paid" must be received followingfinal acceptance of the work. 8 City of Tukwila Purchasing Policy 12-1-2020 G. Bid Deposit, Performance Bond, and Payment Bond The City may require a bid deposit when soliciting competitive quotes or bids. The bid deposit can be in the form of a certified check or bid bond in an amount equal to and not lessthan5%ofthetotal bid and shall bespecifiedin the call for bids. All public workscontractorsshall fumisha performance bond and a payment bond in an amount equal to the total amount ofthe contracton a form approved by the City Attorney. In lieuofa performance bond on contracts of $150,000 or less, a contractor may re questto have 10% of the contract retained fora period of 30 days afterthe date of final acceptance. The request will be evaluated and accepted or rejected by the City Attorney. H. Retainage Chapter 60.28 RCW outlines the requirements related to retainage. The intentof the retainage is to guaranteethat laborersand material suppliers will be protected for paymentof any claims arising underthecontract and with respectto taxes, increases, penalties or liens related to a public inn provement project (RCW 60.28). Retainage may also be used to satisfytaxclaims bythe Department of Revenue and/or the City, prevailing wage related claims by the De partmentof Laborand Industries, unemployment com pensation re lated claims by the EmploymentSecurity De partment, and contract performance claims bythe City itself. State law requiresthe Cityto withhold up to 5% of the contract price for retainage purposes. I. Public Works over$1 Million RCW 39.30.060 spedfiesthat in orderfortheirbid to be considered responsive, every bidderfor a publicworks contractof over $1 million mustsubmit(eitherwiththeirbid orwithin one hourof the bidsubmittaltime)the names of all subcontractorsthatwill be usedfor heating, ventilation and air conditioning, plumbingand electrical work. J. Alternative Public Works Contracting Procedures Chapter39.10 RCW permits alternative public works contracting procedures. The State legislature finds that the traditional process of awarding public works contracts in lump sum to the lowest responsible bidder is a fair and objective method of selecting a contractor. However, under certain circumstances, alternative public works contracting procedures may best serve the public interest if such procedures are implemented in an open and fair process based on objective and equitable criteria. If the City desires to utilize the alternative procedures, it shall follow the requirements set out in RCW 39.10. 10. COMPETITIVE BIDDING PROCESS A. Public Notice RCW 35.23.352(1) sets out the advertising re quirementsfor the public works bidding process. Forallcontracts that require bids, notice shall be published in the official newspaper at least 13 days prior to the due date for bids. B. Bid Specifications Bid specifications should incorporate a clear and accurate description of the technical requirementsforthe material, product, orserviceto be purchased. Such descriptions should not contain features that unduly restrict competition. 9 City of Tukwila Purchasing Policy 12-1-2020 When it is impractical or uneconomical to make clear and accurate description requirements, a "brand name or equal" description may be used. The responsibility of demonstrating to the City's satisfaction that a product is "equal" to that specified shall be on the vendor proposingthe substitution. Requestsfor approval of substitutions must be made with sufficienttimeto allow the Cityto adequately review the proposal, including time for vendors to respond to questions and requestsfor additional information or clarification. The City has no obligation to accept proposed substitutions. Acceptance of a substitute product proposed as an "equal" to that specified will be made in writing. Ifthis acceptance occurs priorto the bid, other bidders will be notified to the extent practical. C. Award The contract will be awardedto the lowest responsive and responsible bidder whose bid meets the requirementsand criteria included in the invitationfor bids, or all bids will be rejected. RCW 39.04.350 outlines criteria that a bidder must meet in orderto be considered responsible. The City also requires thatthe contractor must: • Have or agree to obtain a current City businesslicense • Be current with all applicable licenses,taxes, and fees owed to the City of Tukwila In addition, the Cityadopts thefollowingsupplemental criteria which may be used in connection with specified projects: • The ability, capacity, and skill of the bidderto performthe contractor providethe service required • The character, integrity, reputation, judgment, experience, and efficiency of the bidder • Whetherthe bidder can performthecontractwithin thetimespecified • The quality of performance of previous contractsor services • The previous and existing compliance by the bidder with laws relating to the contractor services • Such other information as may be secured having a bearing on the decisionto award the contract When using the supplemental criteria described above, the Citywill include the supplemental criteria in the bidding documents,togetherwith a basis for evaluation, deadline for bidderto submit required documentation, and deadline for bidderto appeal a "not responsible" determination. When a trade-in option exists and is in the City's best interest, the price offered on the trade-in will be considered when determining the lowest responsive and responsible bid. RCW 39.30.040 allows any local sales tax revenue generated by the purchase to be considered in determining the lowest responsive and responsible bid. Other preferencesfavoring local businesses are not permitted. D. Cancellation An invitation for bids may be cancelled. Additionally, the City (at is sole discretion) may choose to reject any or all bids, in whole or in part. A resolution is the preferred method for rejecting all bids; examples may be found in the City's Digital Records Center or by contacting the City Clerk's Office. 10 City of Tukwila Purchasing Policy 12-1-2020 E. Bid Submittal Bids will be submitted as specified in the Invitation for Bid by the appointed date and time listed in the invitation. Each bid will be dated, and time stamped as it is received. Late bids will not be accepted. If the bid is fora sealed bid process, all qualified bids will be opened and read aloud publiclyatthe appointed time. No City representative shall inform a contractorof the terms or amount of any other contractor's bid for the same projectpriorto the bid opening date and time. Once bids have been submitted (and opened, if the bids are sealed), the City may not negotiate with bidders. The contract must be awarded to the lowest responsive and responsible bidder, or else all bids must be rejected. A written recordshall be made of each contractor's bid on a project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotationsshall be recorded, open to public inspection, and available by telephone inquiry. F. Bid Security RCW 35.23.352(1) provides thateach bid must be accompanied by a bid proposal deposit in theformof a cashier's check, postal moneyorder, or surety bond to the City Council for at least 5% of the bid amount, includingsalestax. The statute adds that "no bid shall be considered unlessaccompanied by such bid proposal deposit." G. Non -Collusion Affidavit Each bidder shall be required to warrantthat their bid is genuine, and thattheyhave not entered into collusion with other bidders, by submitting with their bid an executed and notarized affidavit on a form approved by the City Attorney. 11. SERVICE CATEGORIES There are several different categories of services, so it is importantto determine what service you need because that may guide the manner of solicitation. A. Professional Architectural and Engineering Services Professional architectural and engineering (A&E) services are services provided by any person, other than an employee of the agency, that fall underthe general statutory definitions of: • Chapter18.08 RCW (Architects) • Chapter 18.43 RCW (Engineers and Land Surveyors) • Chapter 18.96 RCW (Landscape Architects) 1) Purchase of A&E services. By law, A&E consultants are first selected based upon their qualifications as opposed to price. See Chapter 39.80 RCW. This statute says that a city may not consider price in the selection process for p rofessional A&E services. Rather, the City must select the most qualified firm and then negotiate a price for the work contemplated. There are two ways to select an A&E consultant: • Use a Request forProposal(RFP). This requires the City to draft a written scope ofthe project and list the criteria used to selectthe consultant from the City's MRSC architectural, landscape architectural, and engineering service roster pursuant to the process in Chapter 39.80 RCW. 11 City of Tukwila Purchasing Policy 12-1-2020 • Use a RequestforQualifications (RFQ). This requires following the formal RFQ process in Chapter39.80 RCW. Once consultants have submitted their proposals or qualifications, as applicable, the City will negotiate a contract with the most qualified firm at a price the City deems fair and reasonable. In making its determination, the City will take into account the estimated value of the services to be rendered as well as the scope, complexity, and professional nature of the service to be provided. If the City is unable to negotiate a satisfactory contract with the firm selected at a price that is determined fair and reasonable, negotiations with that firm will be formally terminated. Anotherfirm will then be selected, and the process continued until an agreement is reached or the process terminated. 2) Publication. RCW 39.80.030 requires that the City shall publish in advance the City's requirement for professional services. The City may comply with this section by: (1) publishing an announcement on each occasion when professional services provided by a consultant are required by the City; or (2) announcinggenerallyto the public its projected requirements for any category or type of professional service to create a Consultant Roster. Advertising forthe Consultant Roster must be done at least once a year by MRSC on the City's behalf. The MRSC Consultant Roster will distinguish between professional architectural and engineering services as defined in RCW 39.80.020 and other consulting services. Firms or persons providing consulting services shall be added to the appropriate Roster at any time they submit a written request and necessary records. The City reserves the right to publish an announcement on each occasion when professional services or other consulting services are required. B. Personal Services Personal services are those provided by independent consultantsthat require specialized knowledge, advanced education, and/or professional licensing to provide intellectual service. This includes but is not limited to accountants, attorneys, strategic planners, studies/analysis, and trainings. Purchases of Personal Services. Personal services can be purchased in a variety of ways. The City can send a written solicitation to qualified firms or individuals describing the needed services. This solicitation should request prices, schedules, and qualifications. If helpful, utilize the MRSC Consultant Roster. Alternatively, develop a formal RFP and advertise forthe services desired. C. Purchased Services Purchased services include those provided by vendors for routine, necessary and continuing functions of the City. These services are usually repetitive, routine, or mechanical in nature, supportthe agency's day- to-day operations, involve the completion of specific tasks or projects, and involve minimal decision - making. There are a number of purchased services, however, that hoveroverthatthin gray line between purchased services and public works contracting. For example, the Department of Labor and Industries considers some service contracts, such as HVAC maintenance or road striping, to be public works projects and subject to public bidding requirements. If a particular contract is very nearthe gray line, the conservative approach is to consider it a public works contract. 12 City of Tukwila Purchasing Policy 12-1-2020 Purchases of Purchased Services. Similar to personal services, purchased services can be procured in a variety of ways. The City can obtain quotes, or use a formal bid, or an RFP. If obtaining quotes, include request for price, schedules, and qualifications. Evaluate proposals received and determine the lowest responsive bidder. 12. MATERIALS, SUPPLIES, EQUIPMENT (UNRELATED TO PUBLIC WORKS, SERVICES, A&E) Distinguishing between public works and materials, supplies, and equipment not used in public works is important because different bidding requirements apply to each. Some "materials, supplies, and equipment" not used in connection with a public works project or improvement are fairly easyto identify (rubber bands, fire trucks, copy machines), as well as many "services." Some materials, supplies, and equipment are more ambiguous. Other materials, including telecommunications, data processing, and software have specific purchasing guidelines established in state law. A. Telecommunications, Data Processing and Software. The State Legislature, recognizing the unique aspects of computer and telecommunication systems, established an alternative process for making such purchases. RCW 39.04.270, which is available to all municipalities, allows purchases through use of an alternative competitive negotiation process requiring, at a minimum, the following steps: 1) A request for proposals (RFP) must be published in a newspaper of general circulation at least 13 days before the last date on which the proposals will be received. 2) The RFP must identify significant evaluation factors, including price, and their relative importance. 3) The City must provide reasonable procedures fortechnical evaluation of the proposals, identification of qualified sources, and selection for awarding the contract. 4) The award must be made to the qualified bidder whose proposal is "most advantageous" to the City. 5) The City may reject all proposals for good cause and request new proposals. B. Additional guidance regarding purchases of materials, supplies and equipment can be found in Section 8. Referto the Procurement Policy Table in Section 1 of this policy, and ask questions if you are uncertain. 13. EXCEPTIONS TO THE COMPETITIVE PROCESS State law provides for exceptions to the bidding requirements outlined in above sections. These exceptions only waive the competitive bidding requirements, not the contractual requirements, approvals, or insurance requirements. City staff may not use personal preference as the basis for claiming a single source of supply. Exceptions to the competitive bidding requirements include: • Purchases thatare clearlyand legitimately limited to a single source of supplysuch as: o Licensed or patented good or service o Items that are uniquely compatible with existingequipment, inventory, systems, programs or services 13 City of Tukwila Purchasing Policy 12-1-2020 o Meets Citystandards (Le. watermeters) o Factory -authorized warrantyservices A resolution is the preferred method for sole source purchases; examples may be found in the City's Digital Records Centeror by contacting the City Clerk's Office. • Purchases involving special facilities or market conditions o Item is of special design, shape or manufacturethat matchesorfits with existingequipment, inventory, systems o Item will be sold before the Citycan conduct the bid process when over bid thresholds • Purchases in an emergency(see TMC Chapter 2.57, "Emergency Management") A resolution is the preferred method for declaring an emergency as a prerequisite to purchases during an emergency; examples may be found in the City's Digital Records Centeror by contacting the City Clerk's Office. • Inter -Governmental Cooperative Purchases • Purchases of insurance or bonds • Pollution control facilities and some neighborhood "self-help" projects may be exempt from bidding requirements • Cities may hire the state or county to do road projectswithout going outfor bids • Real property. Acquisition of real property is exempt from the competitive bidding requirements of this policy. Upon approval ofthe City Council, the City Administrator may proceed to acquire real property through negotiation. Such negotiations shall be based upon an independentfeeappraisal ofthe property. 14. DISPOSAL OF SURPLUSPROPERTV A. Policy Statement City assets in excess of $500 that are no longer useable, are no longer of value to the City, or are surplus to the City's needs may not be removed from City ownership, sold, or in any other way disposed without a declaration by resolution of the City Council. Similarly, items in excess of $100 that are no longer useable, are no longer of value to the City, or are surplus to the City's needs may not be removed from City ownership, sold, or in any other way disposed without approval by the Mayor or City Adm inistrator. All items of $100 or less may be disposed in accordance with the direction of department directors. B. Definitions City Asset means any tangible item purchased with City funds valued in excess of $100. TIS Asset means computers and related equipment, fax machines, printers, scanners and copiers, cell phones, telephone equipment, pagers, software or systems, and anythingthe Tukwila Technology and Innovation Services Department is requested or required to install, connect, or service. 14 City of Tukwila Purchasing Policy 12-1-2020 C. Procedures 1) Disposal of City property valued less than $499 shall follow this process: o When a City department determines an item of this value is surplus to its needs, the department shall notify the Mayor's Office and all otherCity departments of the item's availability, seeking first to reassign its use to anotherCity department. TIS Assets shall be exempt from this notification requirementto City departments otherthan the Mayor's Office. o If no other departments are interested in the item, it may be disposed in the method seen most prudent by the department director. The director should first notify the Mayor's Office and Finance Department of the intended method of disposal prior to finalizing the process for disposal. 2) Disposal of City property valued at $500 or more shall follow this process: o Reassignment of Assets. When a City department makes a determination that a City or TIS Asset with a value of $500 or more is surplus to its needs, the department shall notify the Mayor's Office. The Mayor's Office shall assess whetherthe City Asset can be reassigned within another City department where it can be of use or value. TIS Assets shall be exempt from the requirementto be reassigned to otherCity departments. o Minimum Requirements. If it is not possible to reassign the City Asset or the item is a TIS Asset, the Mayor's Office shall prepare the asset for a declaration of surplus by the City Council. Each asset requiring a declaration of surplus must have a value assigned and a recommended method of disposal. o Methods of Disposal. The primary method of disposal to the general public is by sale. Recognized methods of sale include direct sale, sealed bid, trade-in or auction. Other methods of disposal to the general public must be clearly detailed in writing and must have the consent of the City Council. o Transfer to Another Public Agency. The City Council may transfera surplus asset to another publicagency upon written request and a determination that it is in the public interest to do so. Such request shall specify the asset and the inability of the other publicagencyto otherwise afford to buy it. The City Council may elect to trade assets, authorize the Mayor to negotiate paymentortransferthe asset without compensation. A resolution is the preferred method forsurplussing of City property; examples may be found in the City's Digital Records Center or by contacting the City Clerk's Office. 3) Additional Requirements: o Assets over $50,000. If the value of the asset is estimated to be more than $50,000, and if the sale or conveyance is to another governmental entity, the provisions of RCW Section 39.33.020 shall apply. This includes several requirements, includinga public hearing and certain notice provisions. o Utility Assets. If the asset was originally purchased for utility purposes, the provisions of RCW Section 35.94.040 shall apply. This includes several requirements, including a resolute and public hearing. o Trade -Ins: Trade-inof old equipmentto upgrade similar or reasonablyrelated equipment is permitted when it is in the best interest of the City. The requesting Department Director shall be responsible for the sale, trade, or other disposition of surplus propertyand scrap belonging to the City of Tukwila when usedfor a trade-in. Trade-ins must be negotiated,documented at "Fair MarketValue" by the Department Director, and 15 City of Tukwila Purchasing Policy 12-1-2020 declared surplus ahead of time by the City. Fair Market Value can be determined by finding comparable units that have been sold at online auctions. 0 Other: If the asset proposed as surplus is evidence released by the Court, seized assets or unclaimed property, the Mayor's Office shall review the appropriate statutes prior to asking the City Council to declare it surplus. 4) Final Determination of Value When disposal is made to the general publicthroughdirectsale,sealed bid or auction, final determination of value shall be the highestresponsible bid or offer. 5) Prohibited Benefit It is recognized that City Council members and Mayor are prohibited by state law from benefiting from the disposal of public assets ofthe City. Great care should be takento assure that a perception of benefit to employees and others doing businesswith the City does not occur. 6) Delegation of Authority The City Council may elect to delegate the taskof deciaringitems surplusto the Mayor by amending oraddingtothis policy and identifying the conditions thereofwithinthis policy. If such a delegation is made,the prohibition of benefitingfromthe disposal of public assets is extended to the Mayor and his/her immediate staff. 15. ADDITIONAL CONSIDERATIONS A. Certificates of Insurance The contractororconsultant may be required to provide the City with a Certificate of Insurance, naming the City as a primary and noncontributory additional insured with an additional attached endorsement. Insurance requirements are determined by WCIA (Washington Cities Insurance Authority) and the CityAttorney. B. State Contractor's License It is unlawfulforthe City to hire anyone to perform publicworkon our propertythat does not have a valid State of Washington Contractor's License. If someone is not properly licensed, DO NOT HIRETHEM. You may lookup a contractor to determine if they have a valid Contractor's License at via the Washington State Department of Labor and Industry'swebsite: https://Ini.wa.gov/licensing-permits/contractors/hiring-a-contractor/verify- contractor-tradesperson-business C. City Business License A City of Tukwila business license may be requiredfor any person or businessworking inside the city limits. See TMC Title 5, "Business Licenses and Regulations" for specifics. 16. REFERENCES Revised Code of Wash ington (RCW) 39.80 (Contractsfor Architectural and EngineeringSe rvices) RCW 39.04 ( Public Works) RCW 39.34 (Interlocal Cooperation Act) RCW 35A.40 (Fiscal Provisions applicable to Code Cities), 35.23 (Second Class Cities) 16 City of Tukwila Purchasing Policy 12-1-2020 Municipal Research ServicesCenter (MRSC) publication: "City Bidding Book—Washington State" Federal Office of Management and Budget(OMB) Uniform GuidanceCFRs: Title 2CFR 200. et al City of Tukwila Grants Policy (TBD) Procurement Card (Pcard) UserManual City of Tukwila Administrative Policy- Equity Policy City of Tukwila Administrative Policy 400-05— Processingof Contracts/Agreements City of Tukwila Capital Improvement Program Policies and Procedures 17. GLOSSARY Amendment— Written modification or addition to a purchase order orcontractauthorized by the appropriate authority. Bid — The executed document submitted by a bidder in response to a notice inviting bids, a proposal, or a request for qualifications. Bid Bond—A bond or deposit submitted with a bid, fora sum not less than 5% of the bid amount (including sales tax). Designed to help ensure that a bid has been made in goodfaith and thatthe bidder will enter into a contract if a bid is accepted. Bidder—A person or legal entity who submits a bid in response to a solicitation. Competitive Bidding — The submission of prices by individuals orfirmscompetingfora contract, privilege, or right to supply merchandise or services. Contract— A verbal or written, legally binding mutual promise between at Yeast two parties. Designee — A duly authorized and appointed representative of an employee that holds a superior position to the person appointed to represent him or her. Emergency— Unforeseen circumstances beyond the City's control that present a real, immediate threattothe proper performance of essential functions, or that will likely result in material lossto property, bodily injury, or loss of life if immediate action is not taken. "Equitably distribute"— Means the City may not favor certain contractors on the appropriate Small Works Roster over other contractors on the appropriate Small Works Roster who perform similar services. Lowest (Responsive and) Responsible Bidder—The bidder submitting the lowest price that is also capable of performing the proposed contract. See also "responsive bidder" and "responsible bidder." Non -Professional Services or Purchased Services —Services provided by vendors for routine, necessary and continuing functions of a local agency, relative to a physical activity. Examples include, but are not limited to: • Courierservices • Janitorial services • Disposal services • Vehicle inspection, repairorup-fitting • Office furnishing installation • HVAC system maintenance 17 City of Tukwila Purchasing Policy 12-1-2020 Ordinary Maintenance— Work not performed by contract and that is performed on a regular basis (daily, weekly, monthly— but not less than once peryear)to service, check or replace itemsthat are not broken. Also defined as work not performed by contract that is not regularlyscheduled, but is required to maintain an asset so that repair does not become necessary. Prevailing Wages— The hourly wages, usual benefits, and overtime paid in the largest city in each countyto the majority of workers, laborers, and mechanics. Prevailing wages are established by the Washington State Department of Labor and Industriesforeach trade and occupation employed in the performance of public work. Theyare established separatelyfor each county, and are reflective of local wage conditions. Professional Services— Services which provide professional or technical expertise to accomplish a specific study, project, task, or other workstatement. Examples include, but are notlimitedto: • Architectural, engineeringor design services • Accountingand auditing • Bond or insurance brokerage • Consulting services • Legal services • Real estate appraisals or title abstracts • Relocation assistance • Surveying • Soils analysis or core testing • Water quality monitoring Public Work— All work, construction, alteration, repair, or improvement otherthan ordinary maintenance, executed at the cost of the City, or which is by law a lien or charge on any propertytherein. Quotation—A statement of price, terms of sale, and description of goods or services offered by a prospective seller to a prospective purchaser, usuallyfor purchases below the amount requiring formal bidding. For professional service contracts, quotes would typically include the qualifications of the providerand may or may not include pricing information depending on the situation. Requestfor Proposal (RFP) — All documents, whether attached or incorporated by reference, utilized for soliciting competitive proposals. The RFP procedure permits negotiation of proposals and prices, as distinguished from competitive bidding and a notice inviting bids. The procedure allows changes to be made after proposals are opened and contemplatesthat the nature of the proposals and/or prices offered will be negotiated priorto award. Request for Qualification (RFQ) —A document generally used for obtaining summary of qualification from prospective providers of professional services. Responsible Bidder— A person or legal entitywho has the capabilityin all respects to perform in fullthe contract requirements, and the integrity and reliabilitywhich will assure good faith performance. Responsive Bidder— A person or legal entity who has submitted a bid conforming in all material respects to the terms and conditions,specifications and other requirements in a request for bids. Sealed Bid —A bid which has been submitted in a sealed envelope to prevent its contents from being revealed before the deadline for the submission of all bids. 18 City of Tukwila Purchasing Policy 12-1-2020 Sole Source—An award fora purchase to the only reasonably known capable vendor due to the unique nature of the requirement, thevendor, or market conditions. Specifications—A description of what the purchaser seeksto buy or accomplish — and consequentlywhat a bidder must be responsiveto in orderto be consideredfor award of a contract. May be a description of the physical orfunctional characteristics, orthe nature of a supply orservice. May also include a description of any requirementsfor inspecting,testing, or preparinga supply or service item for delivery. Surplus property— Any tangible, personal property owned by the Citythat is no longer needed or usable, presently or in the foreseeable future. 19 City of Tukwila Purchasing Policy 12-1-2020