City Council Packet - 06/21/2011 71 • City of Tigard
Ti and Workshop Meeting - Agenda
TIGARD _-
TIGARD CITY COUNCIL
MEETING DATE AND TIME: June 21, 2011 - 6:30 p.m.
MEETING LOCATION: City of Tigard - Town Hall - 13125 SW Hall Blvd., Tigard, OR 97223
PUBLIC NOTICE:
Times noted are estimated.
Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council
meetings by noon on the Monday prior to the Council meeting. Please call 503-639-4171, ext. 2410 (voice) or
503- 684 -2772 (TDD - Telecommunications Devices for the Deaf).
Upon request, the City will also endeavor to arrange for the following services:
• Qualified sign language interpreters for persons with speech or hearing impairments; and
• Qualified bilingual interpreters.
Since these services must be scheduled with outside service providers, it is important to allow as much lead time as
possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling:
503- 639 -4171, ext. 2410 (voice) or 503- 684 -2772 (TDD - Telecommunications Devices for the Deaf).
VIEW LIVE VIDEO STREAMING ONLINE:
http: / /www.tvctv.org /government - program fining /govern ment- meetings /tigard
Workshop meetings are cablecast on Tualatin Valley Community TV as follows:
Replay Schedule for Tigard City Council Workshop Meetings - Channel 30
• Every Sunday at 11 a.m.
• Every Monday at 6 a.m.
• Every Tuesday* at 2 pm (*Workshop meetings are not aired live. Tuesday broadcasts are a replay of the most
recent workshop meeting)
• Every Thursday at 12 p.m.
• Every Friday at 3 a.m.
SEE ATTACHED AGENDA
• City of Tigard
r
Tigard Workshop Meeting - Agenda
TIGARD
TIGARD CITY COUNCIL
MEETING DATE AND TIME: June 21, 2011 - 6:30 p.m.
MEETING LOCATION: City of Tigard - Town Hall - 13125 SW Hall Blvd., Tigard, OR 97223
6:30 PM
• EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive
Session is called to order, the appropriate ORS citation will be announced identifying the applicable
statute. All discussions are confidential and those present may disclose nothing from the Session.
Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS
192.660(4), but must not disclose any information discussed. No Executive Session may be held for the
purpose of taking any final action or making any final decision. Executive Sessions are closed to the
public.
1. WORKSHOP MEETING
I. Call to Order- City Council and Local Contract Review Board
2. Roll Call
3. Pledge of Allegiance
4. Council Communications & Liaison Reports
5. Call to Council and Staff for Non - Agenda Items
2. TIGARD MUNICIPAL COURT ANNUAL REPORT 6:35 p.m.
3. ANNUAL JOINT MEETING WITH TIGARD TRANSPORTATION ADVISORY COMMITTEE
6:55 p.m.
4. DISCUSSION ON THE SUBMISSION OF A NON - RENEWAL LETTER TO TERMINATE THE
REGIONAL WATER SALES AGREEMENT WITH THE CITY OF PORTLAND IN 2016
7:35 p.m.
5. REVIEW PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES 7:50 p.m.
6. DISCUSSION ON TIGARD'S PUBLIC CONTRACTING PROCESSES 8:35 p.m.
7. COUNCIL LIAISON REPORTS
8. NON AGENDA ITEMS
9. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive
Session is called to order, the appropriate ORS citation will be announced identifying the applicable
statute. All discussions are confidential and those present may disclose nothing from the Session.
Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS
192.660(4), but must not disclose any information discussed. No Executive Session may be held for
the purpose of taking any final action or making any final decision. Executive Sessions are closed to
the public.
10. ADJOURNMENT
AIS -504 Item #: 2.
Workshop Meeting
Date: 06/21/2011
Length (in minutes): 20 Minutes
Agenda Title: Tigard Municipal Court Annual Report
Submitted By: Nadine Robinson
Administrative Services
Item Type: Receive and File Meeting Type: Council
Workshop Mtg.
ISSUE
Judge Michael O'Brien and Nadine Robinson, Administrative Services Manager, will provide an update on the
status of the Tigard Municipal Court and information on recent activities.
STAFF RECOMMENDATION / ACTION REQUEST
No action required.
KEY FACTS AND INFORMATION SUMMARY
The Court's caseload for 2010 decreased by 23% from the record high levels reached in 2009. While the decrease
was substantial, the total caseload for 2010 was still about 8% higher than the average from the previous three
years. As in past years, minor traffic citations continued to be the primary case type heard in municipal court.
The reduction in caseload allowed court staff to keep the basic workload current as they accommodated staffing
shortages and worked towards the implementation of an on -line credit card payment system and electronic citation
processing. Both programs are regarded as successful as they provide better service to customers by allowing
payments to be made 24 -hours a day, 7 -days a week and customers receive citations that are easily read and error
free. Additionally, the court has experienced efficiencies in processing as much of the data entry associated with the
on -line payments and electronic citations has been automated.
Revenue collection was down for 2010 but not in proportion to the reduction in caseload. Factors that may have
influenced the revenue stream include 2010 being the first full year the court Collected the mandated $45 offense
surcharge. Additionally the ease of on -line payments may have improved access for payment. In the 8 months of
2010 that the program was in place, customers made 1,056 on -line payments.
The court continues to pursue opportunities to educate members of the public concerning traffic safety and
requirements of Oregon law. The judge's monthly Cityscape column is placed on the court's website and is
available through handouts in City Hall.
OTHER ALTERNATIVES
N/A
COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS
N/A
DATES OF PREVIOUS COUNCIL CONSIDERATION
Not Applicable.
Attachments
Annual Court Report
powerPoint
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i 1 M E M O R A N D U M
T1tA 1:.1)
TO: Honorable Mayor and City Council
FROM: Michael J. O'Brien, Presiding Judge
Nadine Robinson, Court Manager
RE: 12th Annual Report from Tigard Municipal Court
DATE: June 7, 2011
Thank you for again giving us the opportunity to meet with Council and the City Manager
for our 12th annual review of Municipal Court operations. The highlights of the 2011 calendar year
and a brief summary of current activities are presented below. Please let us know if you have any
questions or comments.
1. Caseload for CY 2010: As reflected in Table 1, the court's caseload declined by 23% last
year compared to the unprecedented levels of CY 2009:
Table 1- Total Annual Court Caseloads 2006 -10
2010 7,028
2009 9,165
2008 6,229
2007 6,920
2006 6,372
Though the caseload for 2010 represents a significant decline from the previous year's
volume, the court processed cases at an average rate of 585 per month, about 8% higher than the
average for 2006 -08. The caseload for 2009 has proven, so far, to be a statistical "outlier."
As in past years, traffic citations continued to dominate our caseload:
Table 2 - Caseload Fluctuations: 2009 -10
CATEGORY 2009 2010
Traffic and parking 9,107 6,995
Adult city code misd /viol 9 12
Youth Court 35 15
Code enforcement 13 6
1
About 37% of the court's traffic caseload in 2010 consisted of citations for Speeding and
Failure to a Obey Traffic Control Device (primarily stop signs and traffic signals). There were
significant declines in both areas, and in the number of Safety Belt violations:
Table 3 - Changes In Citations For Selected Violations 2009 -10
Violation 2009 2010 % Change
Speeding 2,399 1,794 -25
Traffic control devices* 1,256 841 -33
No safety belt 676 521 -23
*Primarily stop signs and traffic signals
Since Oregon's new cell phone law (ORS 811.507) went into effect on January 1, 2010, the
court has processed 653 violations.
During the period 2008 -09, the latest years for which reliable data is available, 28.9% of
those cited for traffic violations were residents of Tigard.
2. Effect of electronic citations ( "e- cites "): As forecast in our 2009 report, electronic
citations came into wide use among motor officers after July 1, 2010. During the first three months
following their introduction, 1,206 e -cites were filed. E -cites have demonstrated their many
advantages, from time saved by officers in issuing citations to the avoidance of duplicative data
entries by court staff. Compared to handwritten citations, the error rate has also declined
significantly and illegibility is not an issue. On busy days, when as many as 100 e -cites may be filed,
court staff saves several hours of time that would otherwise be required for data entry.
3. New legislation: In October 2009, Oregon legislators adopted a $45 "offense
surcharge" for all violations. Although the surcharge was scheduled to sunset on July 1, 2011, it will
likely be extended to at least December 31st of this year if, as expected, HB 2712A passes in the
current session. In our oral report, we will update the Council on the status of this and other bills
that could have an impact on court operations.
4. Consideration of financial hardships in imposing and collecting fines: Due to
continuing high unemployment and related economic circumstances in Oregon, a relatively small
number of defendants requests special consideration from the court in imposing or collecting fines.
For defendants who are unable to pay the balance due within 30 days, the court has always offered
payment agreements, subject to a $15 fee. If timely payments are not made, the court will suspend
the defendant's right to drive in Oregon and initiate standard collection activities.
As a general rule for most violations, Oregon courts must impose at least 75% of the Base
Fine fixed by law and stated on the front of the citation. Upon a showing of economic hardship,
however, the court has the authority to discharge, or waive, fines.
2
In those cases where a discharge is appropriate, the fine is reduced to zero or suspended in
full but the record of the conviction will be forwarded to DMV and placed on the defendant's
driving record. The court has the additional authority under ORS 135.755 to dismiss citations "in
furtherance of justice," but this authority is rarely invoked in the absence of a recommendation
from the citing officer or City prosecutor.
Where defendants with clean records and /or financial hardship are cited for multiple minor
violations (e.g., Speeding and Failure to Signal a Lane Change), the court may exercise its discretion
to impose a fine on one violation and discharge the fine on the other. Both violations will still
appear on the driving record, but this approach avoids duplicating the costs and assessments that
would otherwise be imposed.
5. Revenues /collections
Table 4 - Collected fines, penalties and assessments
2009 2010
Fine /offense surcharge $729,467 $699,406
Civil penalties $2,414 $2,223
Mandated assessments $316,465 $296,234
Collections total $1,048,346 $997,863
6. Public Information and Education: The judge's monthly "Rules of the Road" column
continues to appear in Cityscape and on the City's website. Recent topics include: "Oregon's Cell
Phone Law Revisited," "Oregon Traffic Law 101," "A Safety Success Story" (on seat belts),
"Flashing Yellow Lights" and "Driving While Distracted." Printed copies of the columns are also
available to the public on a rack next to the court counter.
7. Continuing Education and Training: The judge and a court clerk attended the
Oregon Department of Transportation's annual Judicial Education Program in March, 2010. As in
the past, ODOT assumed most of the costs for this annual conference. The court manager
attended the annual conference of the Oregon Association for Court Administration in October,
2010.
8. Current activities: From January 1 through May 31, 2011, 2,960 citations have been
filed. With the renewal of the Three Flags Safety -Belt Enforcement program, there has been
marked increase in the court's caseload during recent weeks.
Please let us know if you would like us to provide any additional information. Thank you
again for your time and interest.
3
6/13/2011
City
.�r R ' -" %.j '. '•l Respect and Care 1 Do the Right Thing 1 Get it Done
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Tigard •
2010 Annual Report
to Council
Michael J. O'Brien, Presiding Judge
Nadine Robinson, Manager
Tigard Municipal Court
Presented to: Tigard City Council I
June 21, 2011 ,t ,,,•
ad
Municipal Court Programs
1. Traffic
2. Youth Court
3. Civil Infractions
4. Public Information
1
6/13/2011
(:in ,rf 1,,a d
2010 Highlights
7,028 violations: down 23% compared to record volume
of 2009
38% of traffic caseload consisted of Speeding and
Failure to Obey Traffic Control Device violations
Implemented "e- cites" on a large scale as of 7/1/10
/ Number of non - traffic offenses remained very small
/ 28.9% of those cited were Tigard residents (2008 -09 ay.)
liN ara
Caseloads CY 2006 -10
Cases per Year
10000 — -
8000
6000
4000 —
2000
0
2006 2007 2008 2009 2010
2
6/13/2011
rtl I t,Ird
Traffic Program
3,000 --
2,500 -
2,000 l ikir_au
• 2009
• 2010
1,000
500
0
Speeding Traffic control devices No safety belt
OetriN tatiMP1114 OITATKIN AND COMIfterr1
Sample .
EU000343.
Electronic
Citation
/741-
3
6/13/2011
Ciry• nfTigard
Allocation of $295 Base Fine
$18 $ $2
• Fine
$37 ❑ Offense Surcharge
• Unitary Assessment
® County Jail Assessment
$45 ❑ Court Security Assessment
• Medical Liability Fee
City of Tigard
Alternative Sanctions
► Statutory maximum reduction (most violations): 25%
below base fine for defendants with good records
► Payment agreements available if unable to pay fine
within 30 days — subject to statutory $15 fee.
► Alternative sanction on showing of financial hardship:
discharge of fine— citation still appears on driving record
► Dismissals "in furtherance of justice" where
recommended by citing officer or city prosecutor.
4
6/13/2011
Tigard Youth Court
/ Misdemeanors and status offenses such as theft, curfew
violations, minor in possession of tobacco.
/ Crimes reduced to violations: no criminal record
/ About 650 adjudications since the program began
in 2002.
/ Probation: community service, counseling program,
letters of apology, restitution to victims.
Ciro ofTigard
Revenues /Collections
Table 5 — Collected fines, penalties and assessments
2009 2010
Fine $729,467 $699,406
Civil Penalties 2,414 $2,223
Mandated assessments $316,465 $296,234
Collections Total $1,048,346 $997,863
5
6/13/2011
City of Tigard
Current Activities
/ 2,161 violations filed January 1 —May 31, 2011
/ Legislative update
/ Three Flags program resumed— safety belt
enforcement
City ofTigard
Tigard Municipal Court
13125 S.W. Hall Blvd.
Tigard, Oregon 97225
www..tigard -orgov /city _hall /departments /municipal court
6
AIS -282 Item #: 3.
Workshop Meeting
Date: 06/21/2011
Length (in minutes): 45 Minutes
Agenda Title: Annual Joint meeting with Tigard Transportation Advisory Committee
Submitted By: Judith Gray
Community Development
Item Type: Joint Meeting -Board or Other Juris. Meeting Type: Council
Workshop Mtg.
ISSUE
The purpose of the joint meeting is to update Council on the status of the Tigard Transportation Advisory
Committee (TTAC), including actions taken in 2010 and items on the 2011 draft work program. The meeting will
also allow both bodies an opportunity to ask questions and provide information to one another.
STAFF RECOMMENDATION / ACTION REQUEST
Discuss and provide direction on TTAC's work program, especially as it relates to Council Goals.
KEY FACTS AND INFORMATION SUMMARY
Attachment A provides an outline of the items the TTAC will present for discussion with the Council and
is summarized below.
Background
TTAC was formed by Council resolution in March 2009. Initial membership of 8 members appointed in September
2009. Formal recruitment was conducted and a full roster of 11 members was appointed in July 2010. The initial
year was largely educational /updates on projects then underway.
2010 Actions
- TTAC reviewed project alternatives for the regional funds (MTIP) and city fund (CIP) and recommended priority
ranking
- TTAC formed and appointed members for a Pedestrian Bicycle Subcommittee (See Attachment B)
2011 Work Program
- High Capacity Transit — TTAC is the nucleus of the Citizens Advisory Committee for the HCT Land Use Plan.
- Transit Service Requests — In September, TTAC will begin developing a written request for transit service
improvements.
- Pacific Highway /Gaarde- McDonald Improvement — TTAC is involved in reviewing design options for this
intersection design.
Other TTAC Priorities /Topics
• Safety
• Use of the Transportation System Plan (TSP) as a long range planning guide
• Goals, strategies, objectives
• Funding issues
• Receive clarification from Council on their goals
OTHER ALTERNATIVES
None
COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS
• 1 a. Show substantial progress on new Tigard Triangle Master Plan
• lc. Participate in the SW Corridor Study
• Long -term. Continue pursuing opportunities to reduce traffic congestion
DATES OF PREVIOUS COUNCIL CONSIDERATION
None. This is the first joint meeting with TTAC.
Attachments
TTAC presentation outline
TTAC -PBS 2011 Workplan
Outline June 21 TTAC /Council Joint Meeting
Introduction - Judith
Background - Karen Hughart
• Formed by Council resolution in March 2009.
• Initial membership of 8 members appointed in September 2009.
• Formal recruitment conducted and a full roster (11 members, one alternate) in July 2010.
• Initial year — largely educational /updates on projects then underway (TSP, Downtown
Circulation, Pacific Highway /Hall - Greenburg)
Past Year Actions - Karen Hughart /Basil Christopher
• MTIP Funding -- TTAC reviewed project alternatives (Walnut Street; Main Street Green
Street Phase 2; 99W /Gaarde- McDonald) and recommended priority ranking to Council
• CIP -- TTAC reviewed project alternatives and recommended priority ranking to Council for
the CIP; The ranking included a pedestrian- bicycle scoring developed by the PBS
• TTAC formed and appointed members for a Pedestrian Bicycle Subcommittee (PBS)
Future TTAC Agenda Items (Chris Warren, Dennis Mitchell)
Chris: High Capacity Transit - TTAC is the nucleus of the Citizens Advisory Committee for the
HCT Land Use Plan; the HCT CAC includes all 11 TTAC members with two additional community
representatives. The HCT CAC participated in developing the land use concept alternatives and will
make a recommendation to Council on the final Conceptual Station Community Plan for future
HCT station areas.
Related Council Goals:
• la. Show substantial progress on new Tigard Triangle Master Plan
• 1 c. Participate in the SW Corridor Study
Chris: Transit Service Requests — At the suggestion of Tom Mills from TriMet, TTAC will
prepare a written request for transit service improvements serving Tigard. Staff will assist TTAC in
preparing a request for specific improvements to be considered (scheduled to begin in September).
Related Council Goal:
• Long -term. Continue pursuing opportunities to reduce traffic congestion
Dennis: Pacific Highway /Gaarde - McDonald Improvement — TTAC is involved in reviewing
design options for this intersection design, including reviewing design alternatives and making a
recommendation of a preferred design (expected in October).
Related Council Goal:
• Long -term. Continue pursuing opportunities to reduce traffic congestion
Other TTAC Priorities /Topics (Kim Moreland)
• Work with TriMet to explore bus service improvements.
• Safety issues, a priority
• Use of the Transportation System Plan as a long range planning guide
• Goals, strategies, objectives
• Funding issues
• Receive clarification from Council on their goals
TTAC PEDESTRIAN & BICYCLE SUBCOMMITTEE 2011 WORKPLAN
(List of items that PBS plans to work on during 2011)
# Workplan Item Description PBS Expectation
Contact
1 Cityscape Newsletter PBS contribution to the Kristen Submit newsletter article
Cityscape newsletter. monthly or as PBS is
able.
2 Safe Routes To Schools Learn about SRTS program to Basil Invite guest speaker to
(SRTS) better understand its goals and share information on
its potential use in Tigard. statewide SRTS program.
3 Bicycle Safety Training Offer a bicycle safety class to Steve PBS to develop safety
(Bike Safety 101) the community. This would training curriculum to be
likely be for younger riders, but reviewed by TTAC and
could also be offered to adults if city for approved use.
there is interest.
4 Alliance for Community Apply for 2011 ACTS Grant that Steve PBS to submit a grant
Traffic Safety (ACTS) — would be used to sponsor a application with review
Grant Application community bicycle education from TTAC and the city.
class (logistics). There is no
match required with grant.
5 Bicycle and Pedestrian Create a suggested list of Mike Create a list of bike -ped
Projects List bicycle- pedestrian projects and projects based on safety,
prioritize. access, and connectivity.
6 Pedestrian /Bicycle PBS to collect pedestrian and Mike Effort is intended to help
Counts bicycle counts data at various better understand user
locations within the city. data, where people are
walking and biking and
associated numbers.
7 PBS / Beaverton Joint meeting with Beaverton Steve /PBS Meet to acknowledge
Bicycle Committee Bicycle Advisory sometime in bicycling community,
Joint Meeting summer or fall. network, and share
information.
8 PBS Development PBS to invite guest speakers to PBS Guess speakers: WPC
committee meetings to share (done), BTA, Wash. Co.
information and educate group. Bike -Ped Coordinator,
ACTS member (done),
Tigard Police, Mayor
Dirksen, Wash Co TMA,
etc., etc.
9 Regional Trails Counts Metro will lead Regional trails PBS Ask PBS members to
counts in the fall. consider helping with
Fanno Creek trail counts
at appropriate time.
Note: Items that are listed represent a time commitment for PBS members. The assumption is
that, other than time, no other costs should be associate with the workplan.
AIS -540 Item #: 4.
Workshop Meeting
Date: 06/21/2011
Length (in minutes): 15 Minutes
Agenda Title: Discussion on the Submission of a Non - Renewal Letter to Terminate the Regional Water
Sales Agreement with the City of Portland in 2016
Prepared For: Dennis Koellermeier Submitted By: Greer Gaston
Public Works
Item Type: Meeting Type: Council
Workshop Mtg.
ISSUE
The Council and staff will discuss the submission of a non - renewal letter to terminate the Regional Water Sales
Agreement with the City of Portland in 2016.
STAFF RECOMMENDATION / ACTION REQUEST
Staff recommends the Council participate in the discussion and provide direction on the submission of a
non - renewal letter to terminate the Regional Water Sales Agreement with the City of Portland in 2016.
KEY FACTS AND INFORMATION SUMMARY
• The City of Tigard is the managing authority and water provider for 57,000 customers in Durham, King
City, two- thirds of Tigard, and the unincorporated area represented by the Tigard Water District.
• In 2006, Tigard entered into a wholesale water supply contract, the "Regional Water Sales Agreement," with
the City of Portland. Tigard purchases the majority of its water through this agreement. While Portland is a
reliable water supplier, Tigard has little control over cost and other issues like water treatment and water
quality.
• The Regional Water Sales Agreement contains a "take or pay" provision in which Tigard is required to pay
for a specific quantity of water, irrespective of whether or not the City actually uses the water. The
agreement also requires Tigard to obtain 60 percent of its annual water supply from the City of Portland.
• Rather than purchasing water from other entities, the City's long -term goal has been to secure ownership in
its own water supply. For years, Tigard had pursued alternatives to the Portland water supply; Portland was
not willing to offer Tigard ownership in its water system.
• In 2008, Lake Oswego and Tigard entered into a water partnership, the culmination of Tigard's 15 -year
search for ownership in a water supply. Under the partnership, Tigard and Lake Oswego joined forces to
improve and expand Lake Oswego's existing water system to meet both communities' future water needs.
Tigard's share of the partnership projects is estimated at $118 million. For Tigard's investment, it will gain
ownership in the Lake Oswego system and will receive 14 million gallons of high - quality drinking water per
day starting in June 2016.
• Once the new water system is operational, Tigard will no longer need to purchase the majority of its water
from the City of Portland.
• In order for Tigard to terminate the 2006 Regional Water Sales Agreement in June 2016, it must provide the
City of Portland with a "written notice of non - renewal" five years before the agreement is terminated, or on
July 1, 2011.
• Should Tigard fail to terminate the Portland agreement, the agreement will automatically be extended
another year, and Tigard would be obligated to pay the City of Portland for water it does not expect to use in
fiscal year 2016 -2017.
• At its June 8, 2011, meeting, Intergovernmental Water Board members unanimously recommended the City
of Tigard submit the non - renewal notice to terminate the Regional Water Sales Agreement with the City of
Portland in 2016.
• Following submission of the non - renewal notice, Tigard intends to continue its long- standing relationship
with Portland and has proposed the two cities open discussions regarding a replacement contract addressing
regional connectivity, emergency water supplies, surplus water and other issues of mutual interest.
• The Council will be asked to take formal action on the submission of the non - renewal letter on the June 28,
2011 consent agenda.
OTHER ALTERNATIVES
The Council could direct staff not to submit the non - renewal notice. This will automatically extend the Regional
Water Sales Agreement for another year, and Tigard would be obligated to pay the City of Portland for water it
does not expect to use in fiscal year 2016 -2017.
COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS
2011 Tigard City Council Goal No. 5 - "Continue Coordination with Lake Oswego on Water Partnership."
DATES OF PREVIOUS COUNCIL CONSIDERATION
This is the first time this issue has come before the Council.
Fiscal Impact
Cost: See Notes
Budgeted (yes or no): N/A
Where Budgeted (department /program): N/A
Additional Fiscal Notes:
If Tigard does not submit the non - renewal notice by July 1, 2011, the agreement will automatically be extended
another year, to June 30, 2017. Tigard would be obligated to pay the City of Portland for water it does not expect
to use in fiscal year 2016 -2017. The cost of this water is estimated to be nearly $3.9 million.
Attachments
Draft Non - Renewal Letter to Terminate Regional Water Sales Agreement
July 1, 2011
City of Portland
Portland Water Bureau
Attention: David Hasson, Finance Director
1120 SW 5th Avenue, Suite 600
Portland, OR 97204 0 RA
Dear Mr. Hasson:
Re: Five -Year Non - Renewal Notice for the Regional Water Sales Agreement
In 2006, the City of Tigard and the City of Portland entered into a ten -year wholesale water
purchase agreement, known as the Regional Water Sales Agreement. The agreement took
effect on July 1, 2006.
Since that time the City of Tigard has partnered with the City of Lake Oswego to develop a
regional joint water supply project. Tigard anticipates this supply will be operational in June
2016, at which time it will shift from the Portland supply to Lake Oswego - Tigard supply.
Based upon your conversations with Tigard staff, I understand that Tigard must provide the
City of Portland with written notice of non - renewal on July 1, 2011, in order to terminate
our Regional Water Sales Agreement effective June 30, 2016. Please accept this letter as
Tigard's formal written notice of non - renewal.
The City of Tigard and the City of Portland have had a long -term relationship, and both
cities have benefited from our mutual water supply agreements. Tigard hopes to continue its
relationship with Portland and would like to begin a dialogue to develop a replacement
contract addressing regional connectivity, emergency supplies, surplus water, and other
issues of mutual interest. Our goal would be to have such an agreement in place by 2016,
thus providing both parties with a seamless transition.
Sincerely,
Craig Prosser
City Manager
AIS -474 Item #: 5.
Workshop Meeting
Date: 06/21/2011
Length (in minutes): 60 Minutes
Agenda Title: Review Proposed Changes to Tigard's Public Contracting Rules
Prepared For: Joseph Barrett Submitted By: Joseph Barrett
Financial and
Information
Services
Item Type: Update, Discussion, Direct Staff Meeting Type: Local Contract
Review Board
ISSUE
Review proposed changes to the current Public Contracting Rules (PCRs).
STAFF RECOMMENDATION / ACTION REQUEST
Staff recommends the Local Contract Review Board review the proposed changes to the Public Contracting Rules,
discuss possible modifications with staff and provide direction on next steps.
KEY FACTS AND INFORMATION SUMMARY
Under Oregon Revised Statute (ORS) 279A.065(a), Tigard may adopt its own rules of procedure for public
contracts. The rules of procedure constitute Tigard's contracting policies. These rules of procedure must:
1. State that the model rules adopted by the Attorney General do not apply to the city,
2. Prescribe the rules of procedure that city will use for public contracts (which may include portions of the
Attorney General's model rules), and
3. The rules of procedure must be reviewed each time the model rules adopted by the Attorney General are
modified to determine if the city's rules should themselves be modified.
Under ORS 279A.070 further authority is granted to the city to adopt rules that carry out the provision of the Public
Contracting Code, including but not limited to rules for the procurement, management, disposal and control of
goods, services, personal services and public improvement. If city decides not to adopt its own rules of procedure
for public contracts, the city is required to follow the model rules of the Attorney General by default.
The city has chosen over the years to adopt its own rules of procedure for public contracts. These are known as
the Public Contracting Rules (PCRs). The PCRs have been adopted by the City Council acting as the Local
Contract Review Board pursuant to the authority granted to the Board by Tigard Municipal Code Section 2.46. The
rules apply to all contracting, purchasing, and disposing of personal property by the City of Tigard but do not
apply to acquisition, sale or other transfer of real property.
The last update to the rules came in 2005. The changes recommended by staff have been reviewed by the City
Attorney's Office and are overdue. While significant changes ORS 279A, 279B, and 279C have appropriately
been followed by the city since 2005, the city's rules need to be updated to reflect the six years that have passed
since the current rules were adopted. The changes proposed by staff serve to reflect best practice with the
procurement of goods, services and personal services for the city.
OTHER ALTERNATIVES
The LCRB can chose to not discuss the changes and leave the PCRs as they currently are.
The LCRB can chose to not discuss the changes and repeal all the PCRs and have the city follow the Attorney
General's model rules.
COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS
Public Contracting Rules - Local Contract Review Board's model rules for public contracting
DATES OF PREVIOUS COUNCIL CONSIDERATION
The last significant update and adoption of the PCRs occurred in 2005.
Fiscal Impact
Cost: $0
Budgeted (yes or no):
Where budgeted ?:
Additional Fiscal Notes:
There is no direct fiscal impact for this item.
Attachments
Changes Matrix
Current PCRs
Proposed PCRs
Thresholds Memo
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES — 2011 ATTACHMENT 1
PIIMPIEMPIIMI
orm o1k n Both the formal solicitation Both levels would be The proposed change would keep the
hreshold vs. Local level and the LCRB moved to $100,000 & two levels together... anything
Contract Review Boa_vt approval levels are $50,000 I Over — All Types requiring a formal solicitation would
Approval Level & Over — Good and be presented to the LCRB for an
Services award decision.
$75,000 & Over — Public
Improvements The two do not need to remain
together at any certain level. The
LCRB's "signature" authority can
remain at a level in which the Board
determines appropriate.
Small Purchase Less than $5,000 — All Less than $10,000 — All See above. May want to stay with 10.015 (C)
Threshold — "I "he amou Types Types $5,000 after all. We would be only
where the city only needs second city in the area (Oregon City is
ilk' one (vote the other) with a limit above $5k.
The two do not need to remain
together at any certain level. The
LCRB's "signature" authority can
l itilitaA
remain at a level in which the Board
determines appropriate.
' .
Intermediate Solicitation $5,000 - $49,999 — Goods $10,000 - $100,000 — All See above. 10.015 (D)
Threshold —1'he amour ' and Services Types
'' Ii& rc the city needs to $5,000 - $74,999 — Public The two do not need to remain
obtain tbrec or more Improvements together at any certain level. The
I or pro posals LCRB's "signature" authority can
remain at a level in which the Board
d etermines a - ropriate.
MI IMO= 1
Page 1
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES - 2011
C:
Formal S $50,000 &Over -Good $100,000 & Over — All The last update to the City's 10.015 (A), 10.15 (B)
Threshold —'llbe amours and Services Types Purchasing Rules was completed in
where the city needs to $75,000 & Over — Public 2005. This action serves to bring the
issue an Invitation to Bid . Improvements City more in line with current prices
or Request for Proposal while streamlining the procurement
process. The State of Oregon is
Invitation to Bid = lowest current at $150k. An analysis of local
responsible bidder win agencies shows a range of $30k on the
award low end to $150k on the high side.
Request for Proposal = the The two do not need to remain
city may look at factors li together at any certain level. The
other than pricing when LCRB's "signature" authority can
detcrmining award remain at a level in which the Board
determines appropriate.
mum
Direct Appointment
4 , than $10,000 Less than $25,00(j $25,001 The State of Oregon is 70.015 (C)
Level for Personal currently at $50k for a Direct
Service Agreements Appointment of a personal service.
I he amount where staff An analysis of local agencies shows a
only needs one proposal range of $10k on the low end (where
for a personal service Tigard is now) to $25k on the upper
agreement end (where staff is recommending we
go.) Most agencies have not updated
i ji l lately. $15k -$20k is a typical threshold.
The two do not need to remain
together at any certain level. The
LCRB's "signature" authority can
remain at a level in which the Board
determines appropriate.
INK
. Page 2
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES — 2011
No Exemption – must Adding an exemption In today technology environment, staff 10.125
follow same rules as any that software may be let is not able to look solely at the
Exemptions do not in other purchase without a formal "sticker" price for a software package.
a contract award from competitive process if Other factors, such as hardware
being presented to the determined that little to requirements, staff training, both for
Local Contract Review no competition exists. users and network staff, integration
Board but rather alloy with other City systems with often
solicitation without a Determination of requires customization and special
Request for Proposal or competition shall include training, and data conversion among
Invitation to Bid if proper e following factors: others make a software decision more
documentation exists. complex than simple price.
The extent to which
the software is able While an RFP can and is used in many
to be integrated with cases where the City is looking at
other City systems. software, there are certain license
• The stability of the requirements and upgrade where a new
software company. "version" of existing software may be
• Continuity Savings - considered a software package. In
The overall cost, reality however, the continuity that the —
including hardware upgrade of the current software
requirements, maintains should result in significant
maintenance, cost savings to the City.
programming,
training, initial This exemption would have little to no
installation costs, and impact on what the Local Contract
support of the Review Board would be presented.
software. The exe w ould be to the
solicitation requirements not to any
Contracts for annual approval threshold levels.
I software maintenance
may also extend past the
standard five (5) year
I maximum life as long as
the software remains in
the City's best interest.
Page 3
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES — 2011
F 111! -4 1111
Inter Not addressed Defined what Tigard has not addressed IGAs in the 100.00
Agreements (IGAs) information must be Public Contracting Rules to date.
detailed in an IGA: IGAs have been approved by the
IGAs are agreement with • Which agencies are LCRB, City Council, City Manager,
any other unit or units of involved and Department Heads in the past. By
local government • Functions or including IGAs in the Public
activities to be Contracting Rules, staff hopes to
performed and by develop a policy and subsequent
which party. processes that will lead to consistency
• Payment and funding in regards to how IGAs are treated.
if applicable Under this new section, the Local
• Apportionment of
fees or other revenue Contract Review Board, acting under
if applicable authority granted by the City Council,
shall have the sole authority to approve
• Duration terms of the the City's IGAs. The section also
agreement requires an IGA be entered into any
• Rights to terminate time obligations between the City and
agreement a unit or units of another local
All provisions in ORS
190.010 must also be
iii governmental agency exist. Exchange
of funds does not need to occur for an
followed by the City. IGA to be required. The revised Rules
IGA shall be required also serve to identify what must be
any time obligations detailed with in an IGA.
between the City and any
unit of another local The new additions to the Rules shou
governmental agency serve to both clear confusion
exist. Exchange of funds surrounding the approval process
does not need to occur surrounding the approval of IGAs as
for IGA to be required. well as ensure a proper audit trail of
that process.
The LCRB, acting on
behalf of the Tigard City
Council, shall have the
sole right to award an
IGA for the City
Page 4
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES — 2011
_D
Deve JEx ption \ ddition. Non -Land use condition This is a change to the Rules that can 10.135
exemption added. States be viewed as an overdue addition. The
Develop exemptions allow that the City may city, on occasion, runs into small
the City- to contract with contract with a developer projects that can be handled by a
developers when a project that is in an area to developer and that developers
need exists and the perform a public contractor in a much more efficient
developers contractor is improvement even if it is and cost - effective manner than the
already staged in the area. I not a condition of land City issuing a design- bid -build
use. The City must agreement.
provide determination
that there will be If this situation arises, the city can
significant savings to the make a written determination that a
City to do so. The significant savings exist buy
IM determination must be contracting with the developer for the
made in writing and work and, making the findings part of
made part of the the project's permanent file, sole
permanent file. The source the vendor to perform the
developer shall be seen as work. This exemption would have
a Sole Source for the little to no impact on what the Local
provision of the public Contract Review Board would be
improvement and no presented. The exemption would be
I
competitive process shall to the solicitation requirements not to
be required. approval threshold levels.
OEM
Timing for Addenda No addenda may be issued dding language that There are times when minor changes 30.065 C. 1.
by the City within 72 hours Rows for 48 hour for clarification need to be made in a
The citv at times, issues of the ITB or RFP closing issuance in extreme short time frame to an ITB or RFP.
changes or clarifying date and time. cases. In the event of No addenda issued under 72 hours will
information on Int--itatior less than 72 hour notice be allowed to have significant impact
to Bid or Request for but not less than 48 on a bid schedule or scope of work.
Proposals. Theses addenda hour notice, staff must Staff is trying to address minor issues
to the ITB or RFP must be document the reason such as identifying a mismarked street
release to all packet h behind the shorter name, contact individual or agency, or
\with enough time to sub notification in the project minor adjustment (cosmetic in nature)
their response. file. a o the solicitation. A
.11111111,11111F 41111110111MINEININIMIMMENSI
Page 5
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES — 2011
{ lillinlinillilE
N.
- Pre- Qualification Current Rules allow the City Proposed change now To staff's knowledge, ODOT is the 20.025 A. 1.
to utilize products on an reads "appropriate list only State department that is currently
During various projects, • "appropriate list maintained maintained by the maintaining a pre - qualified products
the cif\ may determine it by the Department of Oregon Department of list. We propose leaving it open to the
hest to pre - qualit■ certai General Services." Transportation (ODOT) General Services Depaitinent in the
products or qualification (Qualified Products List) even the start a list up again.
level to ensure standards or any other list
are net. produced and maintained
I by the Oregon
Department of General
Services."
Hazardous Waste _ .. Not addressed Adding language that The City is seeing an increasing 60.040
Surplus allows the City to amount of technology surplus. With
appropriately recycle or computer boxes, monitors, laptops and
dispose of surplus that printer prices consistently getting
can be deemed lower and lower while technology
hazardous waste without advances on an almost weekly basis,
1 soliciting competitive the City is finding less and less public
1 9I I bids or proposals if the agencies or qualified non - profits to
City has determined that whom the City can donate the
4 no other agency has a equipment.
need for the equipment
and, if the value exceeds This language allows staff to expedite
$500 the City made a the disposal of this hazardous waste,
good faith effort to sell typically through the use of an e -waste
the equipment. recycler (one of which is a State-
certified QRF) so the equipment is
properly disposed of and freeing much
need storage space within the City.
Page 6
PROPOSED CHANGES TO TIGARD'S PUBLIC CONTRACTING RULES — 2011
Ong Current Rules use the term Proposed change is to Staff recommendation to be more 10.070
"Single Seller" switch to "Sole Source" consistent with the common
purchasing vernacular
10.095
Current Rules use the term Proposed change is to Staff recommendation to be consistent
"Qualified Non - Profits" switch to "Qualified with ORS 279.835- 279.855 which uses
Rehabilitative Facilities" "Qualified Rehabilitative Facilities"
Current Rules require the Proposed rules eliminate In the passenger replacement market,
City to make every this requirement. retreaded tires do not provide a
reasonable effort to sufficient economic advantage
purchase and utilize retread compared to the cost of new tires. And
tires rather than purchase nearly 100 % of passenger tires consist
new tires. of radial tires. Light weight tires
contribute to improved fuel efficiency
and high speed stability. Newly
developed high strength compounds
have made this possible.
Manufacturers have decreased side
wall and tread thickness in order to
reduce weight. This has a negative
impact for retreading, since the tire will
require a more technically accurate
procedure, and an additional cost to
the retreader. Competition in the
passenger replacement market is very
tight. Manufacturers have realized that
there is little demand for passenger tire
retreading, and have designed one-
time -use casings.
Page 7
ATTACHMENT 4
•
•
MEMORANDUM
TIGARD
TO: Craig Prosser, City Manager
Toby LaFrance, FIS Director
FROM: Joe Barrett, Sr. Management Analyst
RE: Direct Purchasing Thresholds Comparison
DATE: June 8, 2011
Overview
The city's Public Contracting Rules, under authority provided by Oregon Revised Statue 279B and
279C, allow for various selection methods for classes of purchases. The city has four classes of
purchase currently detailed:
S 5,000 One quote or proposal
Procurement
Intermediate $49,999 (goods or service) Three quotes or proposals
Procurement $74,999 (public improvement)
Di ect $1 0,000 /10m services) One proposal (with conditions)
Appointment
Formal All over the Intermediate threshold Invitation to Bid or Request for Proposal
Procurement
Tigard has not considered these threshold levels since the 2005 update to the Public Contracting
Rules.
I conducted a review of the formal thresholds of various other cities and counties in Oregon along
with the State itself. Agencies compared include:
Cities: Lake Owego, Beaverton, Hillsboro, West Linn, Tualatin, Milwaukie, Gresham, Salem,
Oregon City, Wilsonville, Portland, Eugene, Bend, and Newport.
Counties: Washington County, Multnomah County
States: State of Oregon
Others: Eugene Water and Electric Board, Metro
City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 1 503 - 639 -4171 1 www.tigard- or.gov
The comparison of these agencies to specific components of the City's Public Contracting Rules
should serve as a base moving forward on the proposed changes to the Rules.
Direct Purchasing Thresholds
Of the agencies researched, the vast majority define a Small Purchase (a purchase that may be
directly negotiated without additional competition) as any purchase up to $5,000. Only one agency,
Oregon City, appears to have a different level (any purchase under $10,000). Staff recommends that
Tigard's Small Purchase threshold be increased to $10,000 to streamline the procurement process.
In addition, many agencies had Direct Appointment thresholds defined for personal services (same
concept with no other competition needed.) The threshold for a Direct Appointment ranged from
$10,000 to $50,000. Staff recommends that Tigard's Direct Appointment threshold for personal
services be increased to $25,000 to streamline the procurement and contracting process.
For an Intermediate Purchase (a purchase requiring three quotes or proposals with award based on
qualifications or services, not cost) the agencies had wide ranges. The Intermediate Purchase upper
threshold for goods and services range from $30,000 to $150,000 and show a very definite break at
$100,000 with roughly half below $100,000 and the other half at or above $100,000. The thresholds
can be split out as follows:
aThiggE i'1 1"11 00•`_ and Servilt71515 and Services
Tualatin ($30k) Tigard — proposed ($100k)
Beaverton ($50k) Bend ($100k)
Hillsboro ($50k) Newport ($100k)
West Linn ($50k) Metro ($100k)
Gresham ($50k) Portland ($100k)
Oregon City ($50k) Lake Oswego ($150k)
Tigard — current ($50k) Multnomah County ($150k)
Washington County ($75k) Salem ($150k)
Wilsonville ($150k)
State of Oregon ($150k)
Eugene ($150k)
Eugene Water and Electric Board ($150k)
Staff recommends that Tigard's Intermediate Purchase threshold be raised to $100,000 to streamline
the procurement process.
The Formal Purchase level, defined as any purchase that requires an Invitation to Bid or Request for
Proposal, will cover any purchase in excess of $100,000. Public improvement (construction)
projects have a different threshold in many agencies just as Tigard does. All agencies are bound to
the State and Federal definitions of a public improvement and when prevailing wage and Davis -
Bacon rates must be in effect.
Changing the Purchasing Thresholds does not need to change the purchase level at which point the
award of a contract or purchase is brought before the Local Contract Review Board. The LCRB's
approval authority can remain at the current levels ($50,000 goods /services and $75,000 public
improvements) or they can changed by the LCRB.
ATTACHMENT 3
CITY OF TIGARD - LOCAL CONTRACT REVIEW BOARD
PUBLIC CONTRACTING RULES
The following Public_Contracting Rules (PCRs) have been adopted by the City Council acting as the Local
Contract Review Board pursuant to the authority granted to the Board by Tigard Municipal Code Section
2.46. The rules apply to all contracting, purchasing, and disposing of personal property by the City of
Tigard but do not apply to acquisition, sale or other transfer of real property.
TABLE OF CONTENTS
10.000 COMPETITIVE PROCESS REQUIRED, EXEMPTIONS
10.010 Competitive Process, Exemptions, Definitions
10.015 Exemption of Contracts Under Certain Dollar Amounts
10.020 Contracts for Price Regulated Items
10.025 Library Periodicals
10.030 Advertising Contracts
10.035 Equipment Maintenance Repair and Overhaul
10.040 Purchases under Established Price Agreements
10.045 Gasoline, Diesel Fuel, Heating Oil, Lubricants and Asphalt
10.050 Investment Contracts
10.055 Insurance Contracts
10.060 Employee Benefit Insurance
10.065 Office Copier Purchases
10.070 Sole Source Procurement
10.075 Contract Amendments (Including Change Orders and Extra Work)
10.080 Affirmative Action Contracts
10.085 Purchases Off Contract by Other Public Agencies
10.090 Oil or Hazardous Material Removal
10.095 Contracts with Qualified Non -profit Agencies
10.100 Ammunition
10.105 Public Improvement Contracts Involving Design or Construction Management
10.110 Individual Exemptions
10.115 Class Exemptions
10.120 Justification of Public Improvement Contracts Awarded by Other Than Competitive Bidding
10.125 Software
10.130 Telecommunication Services
10.135 Developer Provision of Public Improvements
15.000 PRICE AGREEMENTS
15.010 Price Agreements
20.000 BRAND NAMES
20.010 Specification of Particular Brand Names or Products
20.015 Copyrighted Materials
20.020 Single Manufacturer or Compatible Products
20.025 Product Pre - qualification
20.030 Brand Name or Mark Exemption
25.000 MINORITY OWNED BUSINESSES, WOMAN OWNED BUSINESSES, EMERGING
SMALL BUSINESSES
Page 1
25.010 Minority Owned Businesses, Woman Owned Businesses, and Emerging Small Businesses
25.015 Authority to Require Contracting with Emerging Small Businesses
30.000 FORMAL COMPETITIVE PROCESSES
30.010 Definitions
30.015 Competition
30.020 Eligibility to Bid on Construction Contracts
30.025 Solicitation Documents
30.030 Bids and Proposals Are Offers
30.035 Public Notice
30.040 Bid or Proposal Preparation
30.045 Bidder Pre - qualification
30.050 Bidder Submissions
30.055 Bid Security
30.060 Pre -Bid or Pre - Proposal Conferences
30.065 Addenda to Solicitation Documents
30.070 Pre - Opening Modification or Withdrawal of Bids of Proposals
30.075 Receipt, Opening, and Recording of Bids and Proposals
30.080 Late Bids, Proposals, Late Withdrawals, and Late Modifications
30.085 Mistakes
30.090 Time for Acceptance
30.095 Extension of Time for Acceptance of Bid
30.100 Evaluation and Award
30.105 Life Cycle Cost Analysis
30.110 Responsibility
30.115 Responsive and Non - responsive Bids or Proposals; Acceptance and Rejection
30.120 Low Tie Bids
30.125 Rejection of Individual Bids or Proposals
30.130 Rejection of All Bids or Proposals
30.135 Protests of Award
30.140 Other Protests
30.145 Negotiation
30.150 Bidder Disqualification
30.155 Cancellation of Invitations to Bid or Requests for Proposals
30.160 Disposition of Bids or Proposals If Bid Is Cancelled
30.165 Documentation of Award
30.170 Foreign Contractor
30.175 Contract Terms and Conditions
30.180 Availability of Award Decisions - Contract Retention
30.185 Requests for Proposals
30.190 Performance and Payment Security
30.195 Right to Audit Records
30.200 Right to Inspect Plant
30.205 Contract Cancellation and Termination Procedures
40.000 PUBLIC IMPROVEMENT CONTRACTS
40.010 Application
40.015 Competitive Bidding
40.020 First Tier Subcontractor Notice
40.025 First Tier Subcontractor Disclosure
Page 2
40.030 Bid Evaluation and Award
40.035 Contract Cancellation Procedures
40.040 Retainage
40.045 Progress Payments
40.050 Final Inspection
40.055 Final Estimate and Final Payment
40.060 Claims for Unpaid Labor or Supplies
40.065 Planning for Public Improvements
40.070 Prevailing Wage Laws
50.000 WAIVER OF SECURITY BID AND PERFORMANCE BOND
50.010 Bid Security Requirements
50.015 Contracts Under $10,000
50.020 Subcontracting to Emerging Small Businesses
60.000 PROPERTY DISPOSITION
60.010 Surplus Personal Property
60.015 Auction Sales of Personal Property
60.020 Sales of Personal Property
60.025 Liquidation Sales of Personal Property
60.030 Donations of Personal Property
60.035 Trade of Personal Property
60.040 Disposal of Surplus Property Meeting Hazardous Waste Definitions
70.000 PERSONAL SERVICES CONTRACTS
70.010 Personal Services Contracts
70.015 Screening and Selection Policy for Personal Services Contracts
70.020 Amendments
80.000 EMERGENCY CONTRACTS: SPECIFIC EXEMPTION REQUIREMENTS; BOARD
EXCEPTION; PROCEDURES; TEMPORARY EXCEPTIONS
80.010 Emergency Contracts
90.000 RECYCLABLE /RECYCLING PURCHASING GUIDELINES
90.010 Recycled Materials and Products Guidelines
90.015 Recycled Materials Preference
90.020 Recycled Materials and Products Purchasing Guidelines
100.000 INTERGOVERNMENTAL AGREEMENTS
100.010 Right to Enter into Intergovernmental Agreements
100.020 Applicability of Intergovernmental Agreements
100.030 Intergovernmental Agreement Approval Authority
Page 3
PCR 10.000 - COMPETITIVE PROCESS REQUIRED, EXEMPTIONS
10.010 COMPETITIVE PROCESS, EXEMPTIONS AND DEFINITIONS
A. All public improvement contracts shall be based upon competitive bidding unless meeting an exception
listed here within. All other public contracts shall be based upon competitive bidding or competitive
proposals (collectively "formal competitive process "), except the following:
1 Contracts made with other public agencies are not subject to these rules, except to the extent that
the rules explicitly allow certain transactions with other public agencies.
2. Contracts which are exclusively for personal services as determined by application of Public
Contract Rule (PCR) 70.010. Such contracts may include incidental materials such as written reports,
architectural or engineering renderings, and similar supplemental materials.
3. Grants and contracts evidencing acceptance of donations by the City.
4. Contracts for professional or expert witnesses or consultants relating to existing or potential
litigation or other legal matters.
5. Transfers of real property or any interest in real property.
6. Energy savings performance contracts.
7. Contracts relating to bonds, certificates of participation, and similar debt repayment obligations, or
to program loans, or to public investments.
•
8. Employee benefit plans.
9. Contracts specifically exempt under the following rules:
10.015 Exemption of Contracts under Certain Dollar Amounts
10.020 Contracts for Price Regulated Items
10.025 Library Periodicals
10.030 Advertising Contracts
10.035 Equipment Maintenance Repair and Overhaul
10.040 Purchases under Established Price Agreements
10.045 Gasoline, Diesel Fuel, Heating Oil, Lubricants, and Asphalt
10.050 Investment Contracts
10.055 Insurance Contracts
10.060 Employee Benefit Insurance
10.065 Office Copier Purchases
10.070 Single Seller of Product
10.075 Contract Amendments (Including Change Orders and Extra Work)
10.080 Affirmative Action Contracts
10.085 Purchases Off Contracts by Other Public Agencies
10.090 Oil or Hazardous Material Removal
10.095 Contracts with Qualified Non - profit Agencies
10.100 Ammunition
10.105 Public Improvement Contracts Involving Design or Construction Management
Page 4
10.110 Individual Exemptions
10.115 Class Exemptions
80.010 Emergency Contracts
B. As used in this Section:
1. "Board" means the City of Tigard Local Contract Review Board.
2. "City" or "The City" means Tigard, Oregon.
3. Competitive bidding" means a competitive sealed bid procedure for awarding contracts following
the rules set forth in PCR 30.000.
4. "Competitive quotes" means the solicitation and receipt of offers by the City from competing
vendors, The solicitation may be by advertisement or by the City initiating a request to vendors to
make an offer. The solicitation and the offer may be written or oral.
5. "Invitation to Bid" means the solicitation of competitive bids in which price among those bidders
meeting specifications will be the predominant award criterion.
6. "LCRB" means the City of Tigard Local Contract Review Board.
7. "Personal property" means everything subject to ownership which is not real property and has
exchangeable value.
8. "Price Agreement" means an agreement in which the vendor agrees to supply all goods or services
of a particular type ordered by the City within a specified time period at a specified price and on
terms specified in the price agreement.
9. "Public agency" means any federal, state or local government, or any department of any federal,
state or local government, including any local school or education City or any special district.
10. "Request for Proposal" means the formal solicitation of competitive written proposals to be used as
a basis for making an acquisition or entering into contract when price will not be the predominant
award criterion, following the rules set forth in Section 30.010 to 30.205.
it "Service" means work performed to meet a demand, especially work that is not connected with
manufacturing a product.
12. "Service contract" means a contract that calls primarily for a contractor's time and effort rather than
an end product.
13. "Telecommunications Services" means the lease or rental of the use of voice and data transmission
facilities or services, or of central office services, but does not include acquisition of switch or
station equipment or acquisition or installation of wire and cable.
C. When a contract is exempt from a formal competitive process, the City shall use reasonable efforts to
ensure it is obtaining goods or services on the best terms (price, quality and other terms). Those efforts
shall normally include seeking out potential contractors and determining price and availability by use of
informal quotes or other similar methods. The City shall not knowingly purchase goods or services if it
Page 5
knows that comparable goods or services are available at lower cost on otherwise similar terms.
10.015 EXEMPTION OF CONTRACTS UNDER CERTAIN DOLLAR AMOUNTS
A. Public Contracts Other Than Public Improvements Contracts
The City may, in its discretion, enter into public contracts other than public improvements contracts
without a formal competitive process if the value of the contract does not exceed $100,000. If this
exemption is applied, the City must use either the small contract or intermediate contract procedures set
forth in Subsections C and D of this section. This exemption does not authorize City employees or
officials to enter into an agreement in excess of their dollar authority to bind the City.
B. Public Improvements Contracts
The City may, in its discretion, enter into public improvement contracts without competitive bidding if
the value of the contract does not exceed $100,000. If this exemption is applied, the City must use
either the small contract or intermediate contract procedures set forth in Subsections C and D of this
section. This exemption does not authorize City employees or officials to enter into an agreement in
excess of their dollar authority to bind the City.
C. Small Contract Procedures
When the amount of the contract does not exceed $10,000, the City may award the contract from any
source known to the City to provide goods or services of acceptable quality at competitive prices. The
City may not knowingly use a more expensive source if the goods or services of equivalent quality are
readily available from alternate sources on the same terms at lower prices.
D. Intermediate Contract Procedures
When the amount of the contract does not exceed $100,000, but is more than $10,000, the City may
award the contract after seeking at least three competitive quotes or proposals. The City shall keep a
written record of the source and amount of the quotes or proposals received. If three suppliers are not
available, a lesser number of actual quotes or proposals will suffice provided that a written record is
made of the good faith effort to obtain the quotes or proposals.
E. No Division or Fragmentation of Contracts
A procurement of goods and /or services may not be artificially divided or fragmented to allow use of
the small or intermediate contract procedures unless an exception or exemption is granted under these
Rules.
F. Amendment of Small and Intermediate Contracts
A contract awarded under the small or intermediate contract procedures may not be amendment if the
amendment would result in a total contract price that exceeds the maximum amount for the procedure
used to award the original contract.
10.020 CONTRACTS FOR PRICE REGULATED ITEMS
The City may, without formal competitive process, contract for the purchase of the goods or services where
Page 6
the rate or price for the goods or services being purchased is established by federal, state, or local regulatory
authority.
10.025 LIBRARY PERIODICALS
Purchases for the library of subscriptions for periodicals including journals, magazines, and similar
publications may be made without formal competitive process. However, this provision does not authorize
the use of a higher priced source if a lower price source of acceptable quality is known to be available.
10.030 ADVERTISING CONTRACTS
The City may purchase advertising without formal competitive process.
10.035 EQUIPMENT MAINTENANCE, REPAIR, AND OVERHAUL
Contracts for equipment maintenance, repair, or overhaul may be let without a formal competitive process,
subject to the following conditions:
A. The services and /or parts required are unknown and the cost cannot be determined without extensive
preliminary dismantling or testing; or
B. The services and /or parts required are for sophisticated equipment for which specially trained personnel
are required and such personnel are available from only one source.
The City should, where possible, use a price agreement rather than relying on this exception.
10.040 PURCHASES UNDER ESTABLISHED PRICE AGREEMENTS
When the price of goods and services has been established by a price agreement entered into by a
competitive process, the City may purchase goods and services from the supplier without a subsequent
competitive process for the duration of the price agreement.
10.045 GASOLINE, DIESEL FUEL, HEATING OIL, LUBRICANTS AND ASPHALT
The City may, without a competitive process, purchase gasoline, heating oil, lubricants, and asphalt subject
to the following:
A. Prior to selection of the contractor, the City gets quotes from at least three vendors in the area;
B. The City makes its purchase from the least expensive source of those providing quotes; and
C. The City retains written justification for the purchase made.
10.050 INVESTMENT CONTRACTS
The City may, without a formal competitive process, contract for the purpose of the investment of public
funds or the borrowing of funds by the City when such investment or borrowing is contracted pursuant to
duly enacted statute, ordinance, charter, or constitution.
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10.055 INSURANCE CONTRACTS
Contracts for insurance where either the annual or aggregate premium exceeds $5,000 must be let by a
formal competitive process or by one of the following procedures:
A. Agent of Record.
The City may appoint a licensed insurance agent ( "agent of record ") to perform insurance services in
connection with more than one insurance contract. Among the services to be provided is the securing of
competitive proposals from insurance carriers for all coverages for which the agent of record is given
responsibility. Proposals for coverage are presented to the City Manager or designee for approval:
1. Prior to the selection of an agent of record, the City shall make reasonable efforts to inform known
insurance agents in the competitive market area that it is considering such selection. These efforts
shall include a public advertisement in at least one newspaper of general circulation in the area. The
advertisement shall generally describe the nature of the insurance that the City will require. If the
amount of the annual premium for insurance other than employee benefits insurance is likely to
exceed $10,000 per year, such notice shall also include a public advertisement in at least one
insurance trade publication of general circulation in the state.
2. An agent's appointment shall not exceed a period of 5 years, but the same agent(s) may be selected
in a subsequent period. Agents must qualify the appointments prior to each period as if each
appointment period were the first.
3. In selecting an agent of record, the City shall select the agent(s) most likely to perform the most cost
effective services at a level of competence acceptable to the City.
B. Specific Proposals for Insurance Contracts.
The City may solicit proposals from licensed insurance agents for the purpose of acquiring specific
insurance contracts subject to the following conditions:
1. The City shall make reasonable efforts to inform known insurance agents in the competitive market
area of the subject matter of the contract and to solicit proposals for providing the services required
in connection with that contract. Such efforts shall include public advertisements in at least one
newspaper of general circulation in the area. If the amount of annual premium for insurance other
than employee benefits insurance is likely to exceed $10,000 per year, such notice shall also include a
public investment in at least one insurance trade publication of general circulation in the state.
2. The City shall select an agent on the basis of the most competitive offer considering coverage,
premium cost, and service to be provided.
10.060 EMPLOYEE BENEFIT INSURANCE
The City may purchase employee benefit insurance without formal competitive process.
10.065 OFFICE COPIER PURCHASES
A. The City may enter into contracts for the purchase or lease of photocopiers without formal competitive
process.
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B. In exercising this exemption, the City shall consider the operating capabilities, limitations, and cost of
each brand or model as well as cost and select the brand and vendor that will produce the best
combination of performance and cost per copy for each application.
10.070 SOLE - SOURCE PROCUREMENT
The City may purchase without a formal competitive process if there is only one seller (sole seller) of a
product or service of the quality required, or if the efficient utilization of existing equipment or supplies
requires specification of a compatible product for which there is only one seller, The determination of a sole
source must be based on written findings as required by ORS 279B.075. A sole source contract may be
awarded only after approval of the findings by the City Manager, Assistant City Manager, or designee. To
the extent reasonably practical, the City shall negotiate with single sellers to obtain the best possible contract
terms for the City.
10.075 CONTRACT AMENDMENTS (INCLUDING CHANGE ORDERS AND EXTRA WORK)
A contract amendment for additional work, including change orders, extra work, field orders, or other
change in the original specifications which increases the original contract price, may be made with the
contractor without a formal competitive process subject to the following conditions:
A. The original contract was let by formal competitive process, and the contract documents included unit
prices or bid alternates were provided that provide a basis for determining the cost for additional work,
and a binding obligation exists on the parties covering the terms and conditions of the additional work;
or
B. The amount of the aggregate cost increase resulting from all amendments does not exceed 25% of the
initial contract. Amendments made pursuant to Section A of this rule are not included in computing the
aggregate amount under this section. The LCRB may, at its sole discretion, approve amendments
exceeding the 25% aggregate total if the Board finds it to be in the public's best interest to do so.
10.080 AFFIRMATIVE ACTION CONTRACTS
A. Public contracts may be awarded without a formal competitive process pursuant to a specific
Affirmative Action plan. Affirmative Action is a program designed to insure equal opportunity in
employment and business for persons otherwise disadvantaged by reason of race, color, religion, sex,
national origin, age, or physical or mental handicap, including but not limited to, personnel practices of
contractors, "set- aside" programs, and minority business enterprises. These rules shall not be construed
to prohibit engaging in practices designed to promote affirmative action goals and policies.
B. In carrying out the affirmative action policy, by appropriate ordinance, resolution or administrative rule,
the City may limit competitive bidding on a public contract for procurement of goods and services or on
any public contract estimated to cost $100,000 or less to contracting entities owned or controlled by
persons described in Subsection A of this section.
10.085 PURCHASES OFF CONTRACTS BY OTHER PUBLIC AGENCIES
A. The City may purchase any good or service without a formal competitive process if the good or service
is purchased from a bidder that has been awarded a contract for the same good or service, whether by a
requirements contract or by individual contract by another public agency through its public contract
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purchasing procedures if:
1. The original contract was awarded by a competitive bid or proposal process or pursuant to an
exemption equivalent to an exemption provided by these rules.
2. The contract allows other public agency usage of the contract. A contract that does not prohibit
other public agency usage of the contract shall be deemed to allow other public agency use, unless
the agency that awarded the contract objects to the use.
3. The purchase is on the same terms, or terms which are no less favorable to the City in all material
respects, as the contract awarded by the public agency.
B. A purchase under the Oregon Cooperative Purchasing Program or any similar federal or regional
program, including the Electronic Government Act of 2002 (10 USC 381) shall be considered an
exempt purchase under this exemption.
10.090 OIL OR HAZARDOUS MATERIAL REMOVAL
A. The City may enter into public contracts without a formal competitive process when ordered to clean up
oil or hazardous waste pursuant to the authority granted the Department of Environmental Quality
(DEQ) under ORS Chapter 466, especially ORS 466.605 through 466.680, and this order necessitates
the prompt establishment and performance of the contract in order to comply with the statutes
regarding spill or release of oil or hazardous material that has created an emergency condition. in
exercising its authority under this exemption, the City shall:
1. To the extent reasonable under the circumstances, encourage competition by attempting to make
informal solicitations or to obtain informal quotes from potential suppliers of goods or services.
2. Make written findings describing the circumstances requiring cleanup or a copy of the DEQ order
ordering such cleanup.
3. Record the measures taken under Subsection 1 of this section to encourage competition, the amount
of the quotes or proposals obtained, if any, and the reason for selection the contractor selected.
B. The City shall not contract pursuant to this exemption in the absence of an order from DEQ to clean
up a site with a time limitation that would not permit hiring a contractor under the usual formal
competitive process procedures.
10.095 CONTRACTS WITH QUALIFIED REHABILITATIVE FACILITIES
The City may enter into contracts with qualified rehabilitative facilities providing employment for disabled
individuals under ORS 279.835 to 279.855 without a competitive process. The City shall contract with such
agencies when required by law. To the extent competition exists among qualified non -profit agencies, the
City shall select the qualified non - profit agency offering the lowest price for an acceptable level of service.
10.100 AMMUNITION
The City may enter into contracts for the purchase of lethal and non - lethal ammunition, both for service
and for training, without a formal competitive process.
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10.105 PUBLIC IMPROVEMENT CONTRACTS INVOLVING DESIGN OR CONSTRUCTION
MANAGEMENT
The City may enter into public improvement contracts without competitive bidding if the contracts involve
design or construction management or require expertise beyond normal construction work. Unless exempt
under some other exemption, a competitive proposal process must be used. One of the following specific
processes shall be followed:
A. Construction Manager /General Contractor
The City may select a person or firm to act as a Construction Manager /General Contractor (CM /GC)
to construct public improvements by means of a competitive proposal process.
1. A CM /GC performs specified Construction Manager services in addition to traditional General
Contractor services. A CM /GC contract shall require full performance within a negotiated
Guaranteed Maximum Price (GMP). The basis for payment shall be reimbursable direct costs plus a
fee constituting full payment for work and services rendered, which together shall not exceed the
GMP.
2. The solicitation documents shall include:
a. A description of the evaluation process and criteria. The criteria may include cost, quality,
experience, availability, commitment to timely completion, and other factors.
b. The process to be followed for establishing the guaranteed maximum price.
c. A description .of the circumstances under which any of the following activities may be
authorized and undertaken for compensation prior to establishing the GMP, but only after unit
prices are established:
1. Early procurement of materials and supplies;
2. Early release of bid packages for such things as site development; and
3. Other advance work related to critical components of the project.
3. The contract documents shall include:
a. A description of the method by which the CM /GC shall competitively select contractors and
subcontractors.
b. Either the maximum guaranteed price or a process for establishing a guaranteed maximum price.
c. A description of the situations in which the CM /GC may perform the work of the improvement
without subcontracting, including any requirement that the CM /GC compete with others to do
the work and the work that the CM /GC may perform directly without a competitive process.
d. The standards or factors under which changes or additional work that warrants an increase in
the GMP, as well as criteria for decreasing the GMP. The GMP shall not be increased without a
concomitant increase to the scope of the GMP.
e. The disposition of any cost savings resulting from completion of the work below the GMP,
including the CM /GC share, if any, in those cost savings. Normally, the cost savings should
accrue to the City.
f. The items or categories of items are eligible for cost reimbursement within the GMP.
g. A provision for a final audit adjustment and process.
h. A fee that is inclusive of profit, overhead and all other indirect or non - reimbursable costs. Costs
determined to be included within the fee should be expressly defined wherever possible. The fee,
first expressed as a proposed percentage of all reimbursable costs, shall be identified during and
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become an element of the selection process. It shall subsequently be expressed as a fixed amount
when the GMP is established.
i. Any economic incentives, the specific criteria that apply and their relationship to other financial
elements of the Contract (including the GMP).
B. Design -Build Contracts
1. A design -build contract is one in which a single entity designs and constructs a public improvement.
Design -build contracts shall only be used if City staff has the expertise and experience to administer
a design -build contract. The design -build process may be used to:
a. Obtain through a Design -Build team, engineering design, plan preparation, value engineering,
construction engineering, construction, quality control and required documentation as a fully
integrated function with a single point of responsibility;
b. Integrate value engineering suggestions into the design phase, as the construction contractor
joins the project team early with design responsibilities under a team approach, with the
potential of reducing contract changes;
c. Reduce the risk of design flaws, misunderstandings and conflicts inherent in construction
contractors building from designs in which they have had no opportunity for input, with the
potential of reducing contract claims;
d. Shorten project time as construction activity (early submittals, mobilization, subcontracting and
advance work) commences prior to completion of a "biddable" design, or where a design
solution is still required (as in complex or phased projects); or
e. Obtain innovative design solutions through the collaboration of the contractor and design team,
which would not otherwise be possible if the contractor had not yet been selected.
2. A design -build contractor must have an Oregon licensed design professional(s) on staff that will be
assigned to the City's project. The design -build contractor must disclose in its proposal the name of
the Oregon licensed design professional(s) and verify that the professional(s) will be the one(s)
providing primary design services to the City.
3. A design -build contractor awarded a contract shall provide additional security as required by ORS
279C.380(1)(a). The obligation is not intended to be a substitute for professional liability insurance,
and does not include errors and omissions or latent defects coverage.
4. The level or type of design services required must be clearly defined within the solicitation
documents and contract, along with a description of the level or type of any design services
previously performed for the project. The services to be performed shall be clearly delineated as
either design specifications or performance standards.
5. The contract shall clearly identify the liability of design professionals, shall include requirements for
professional liability insurance, and shall clearly identify the extent of any indemnity or warranty.
C. Other Public Improvement Contracts Where Quality Is An Issue
In many situations, including those projects that require a higher than normal level of expertise or skill,
quality of the final product may be important beyond meeting minimum specifications. In those
situations, the City may use a request for proposal process, provided that the cost factor constitutes at
least 75% percent of the total evaluation score. In scoring the cost factor, the proposer submitting the
lowest cost amount shall receive the maximum possible score for the cost factor, and the scores of the
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other proposers shall be reduced by the percentage by which their cost exceeded the lowest cost. For
example, if the maximum score for the cost factor is 80, the lowest cost proposer would get a score of
80. A proposer with a cost that is 10 percent higher would have the score reduced by 10 percent (8
points), to 72.
10.110 INDIVIDUAL EXEMPTIONS
A. The City may exempt a particular contract or contracts from formal competitive process requirements
which are not otherwise exempted under these rules. Staff shall prepare an informational packet for the
Board when requesting the declaration of an individual exemption that contains the following details:
1. The nature and scope of the project or purchase;
2. Estimated cost of the project or purchase;
3. A narrative description of the cost savings anticipated by the exemption from the formal
competitive process and the reasons the formal competitive process would be inappropriate;
4. Proposed alternative contracting and purchasing practices to be employed; and
5. The estimated date by which it would be necessary to let the contract.
B. The Board may require such additional information as it deems necessary to determine whether a
specific contract is to be exempt from the formal competitive process.
C. The Board shall hold a public hearing and adopt findings justifying the individual exemption. The
findings shall at a minimum address include the findings required by ORS 279B.085(3) for contracts
other than public improvements or ORS 279C.335 for public improvement contracts.
D. Notification of the public hearing shall be published in a newspaper of general circulation in the City a
minimum of 14 days prior to the hearing. Notification shall be published in a trade newspaper of general
circulation in the state if required by the Public Contracting Code.
E. The notice shall state that the public hearing is for the purpose of taking comments on the City's draft
findings for an exemption from the formal competitive process requirement. At the time of the notice,
copies of the draft findings shall be made available to the public. At the option of the City, the notice
may describe the process by which the findings are finally adopted and may indicate the opportunity for
any further public comment.
F. At the public hearing, the City shall offer an opportunity for any interested party to appear and present
comment.
G. If the City is required to act promptly due to circumstances beyond its control that do not constitute an
emergency, notification of the public hearing can be published simultaneously with the City's solicitation
of contractors for the alternative public contracting method, as long as responses to the solicitation are
due at least five days after the meeting and approval of the findings.
10.115 CLASS EXEMPTIONS
A. The Board may exempt certain public contracts or classes of public contracts from the formal
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competitive process requirements by amending these rules upon approval of the following findings:
1. It is unlikely that such exemption will encourage favoritism in the awarding of public contracts or
substantially diminish competition for public contracts;
2. The awarding of public contracts pursuant to the exemption will result in substantial cost savings to
the City. In making such findings, the Board may consider the type, cost, amount of the contract,
number of persons available to bid, and such other factors as may be deemed appropriate; and
3. The exemption otherwise substantially supports the public interest in a way that could not be
achieved under existing rules.
B. The Board shall adopt a lass exemption only after a duly noticed public hearing. The notice of the
hearing shall be posted in full public view in the City Hall and published in a newspaper of general
circulation at least 14 days prior to the hearing. If the exemption involves a public improvement, the
notice shall also be published in a trade publication of statewide circulation.
10.120 JUSTIFICATION OF PUBLIC IMPROVEMENT CONTRACTS AWARDED OTHER THAN BY
COMPETITIVE BIDDING
Upon completion of and final payment for any public improvement contract in excess of $100,000 for
which the City did not use the competitive bidding process, the City shall prepare and deliver to the Local
Contract Review Board an evaluation of the public improvement project. The evaluation shall include but
not be limited to:
A. The actual project cost as compared with original project estimates.
B. The amount of any guaranteed maximum price.
C. The number of project change orders issued.
D. A narrative description of successes and failures during the design, engineering and construction of the
project.
E. An objective assessment of the use of the alternative contracting process as compared to the findings
required by ORS 279C.335.
Evaluations required by this section shall be made available for public inspection and shall be completed
within 30 days of acceptance of the project.
10.125 SOFTWARE
The City may award a contract for software without a formal competitive process if it is determined that
little to no competition exists for the required software. In determining whether or not competition exists,
the City may consider the following factors;
A. The extent to which software is able to be integrated with City systems including both hardware and
software.
B. The stability of the software company, which shall include:
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•
1. The software's track record in the industry;
2. The software's companies financial standing; and
3. The frequency of upgrades that enhance the software.
C. The overall cost of the software, which shall include the City's internal costs of upkeep on the software.
Contracts for annual software maintenance may also extend past the standard five (5) year maximum
contract terms detailed in these rules so long as maintaining the software continues to be in the Citys' best
interest.
10.130 TELECOMMUNICATION SERVICES
The City may award a contract for telecommunications services without a formal competitive process if it
determines that no competition exists among services suppliers. In determining whether competition exists,
the City may consider the following factors:
A. The extent to which alternative providers exist in the relevant geographic and service market. The
relevant market will vary from service category to service category and cannot be predetermined in
advance.
B. The extent to which alternative services offered are comparable or substitutable in technology, service
provided, and performance. For example, if the City's requirement is for digital services, analog services
are not comparable or substitutable.
C. The extent to which alternative providers can respond to the City's interests in consistency and
continuity of services throughout its service area, volume discounts, and centralized management. The
City must document for the record its findings on these factors or any other factors used in determining
whether competition exists. In developing its findings, the City may solicit information by any means,
including informal discussions or correspondence or through a formal Request for Information.
10.135 DEVELOPER PROVISION OF PUBLIC IMPROVEMENTS
At times, private developers may provide work on public improvements for the City as required by a
condition of land use approval or to comply with a land use approval or as required by a development
agreement with the City. The developer in those circumstances is conclusively deemed to be a sole source
for the provision of the public improvements, without the need for findings. No competitive process is
required to enter into a development agreement that includes the provision of public services by a developer
or for a developer to provide and the City to accept public improvements as required by a condition of
approval.
There are also times when the City may contract with a developer to provide services on a public
improvement due to the developers work in the area even through the work may not be a condition of land
use. In these circumstances, the City must provide determination that there will be significant savings to the
City to contract with the developer. This determination must be made in writing and made part of the
project's permanent file. In these cases the developer shall conclusively deemed to be a sole source for the
provision of the public improvement. No competitive process is required to enter into a public
improvement contract for the developer to provide services on the public improvements if the savings are
determined to be significant enough to warrant such an exemption.
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PCR 15.000 - PRICE AGREEMENTS
15.010 PRICE AGREEMENTS
The City may enter into price agreements providing the following conditions are met:
A. The contract is awarded by a formal competitive process.
B. The term of the contract including renewals does not exceed 5 years.
15.015 MULTIPLE PRICE AGREEMENTS PERMITTED
The City may enter into price agreements with more than one supplier for the same goods or services.
PCR 20.000 - BRAND NAMES OR MARKS
20.010 SPECIFICATION OF PARTICULAR BRAND NAMES OR PRODUCTS
A. Specifications for public contracts shall not expressly or implicitly require any product of any particular
manufacturer or seller except pursuant to an exemption under PCR 20.015 (Copyrighted Materials),
20.020 (Single Manufacturer or Compatible Products), 20.025 (Product Pre - qualification), or 20.030
(Brand Name or Mark Exemption Applications).
B. If there is no other practical method of specification, the City may designate a particular brand name,
make or product "or equal ", but this practice should be avoided whenever possible.
20.015 COPYRIGHTED MATERIALS
The City may specify a specific copyrighted product. This exemption does not include patented or trade
mark goods.
20.020 SINGLE MANUFACTURER OR COMPATIBLE PRODUCTS
A. If there is only one manufacturer or seller of a product of the quality required, or if the required product
is data processing equipment which will be used for research where there are requirements for exchange
of software and data with other research establishments, or if the efficient utilization of the existing
equipment or supplies requires a compatible product of a particular manufacturer or seller, the City may
specify such particular product subject to the following conditions:
1. The product is selected on the basis of the most competitive offer considering quality and cost. The
term "cost" includes not only the product price, but also other items of expense such as costs
related to quality of conversion.
2. Prior to awarding the contract, the City has made reasonable effort to notify known vendors of
competing or comparable products of the intended specifications and invited such vendors to
submit competing proposals.
3. If the purchase does not exceed $50,000, such notice and invitation may be informal.
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4. If the amount of the purchase exceeds $50,000, such notice shall include advertisement in at least
one newspaper of general circulation in the area where the contract is to be performed and shall be
timely to allow competing vendors a reasonable opportunity to make proposals.
B. If the amount of the purchase exceeds $50,000, the City shall document its actions in the bid file. Such
documentation shall include:
1. A brief description of the proposed contract or contracts.
2. A detailed description of the reasons why the product and /or seller was selected and any competing
products and /or sellers that were rejected. The description shall also include the efforts taken by
the City to notify and invite proposals from competing vendors.
C. If the City intends to make several purchases of the product of a particular manufacturer or seller for a
period not to exceed 2 years, it may so state in the documentation required by subsection (1)(b) and (2)
of this rule, and such documentation shall be sufficient notice as to subsequent purchases.
20.025 PRODUCT PRE - QUALIFICATION
A. When it is impractical to create specific design or performance specification for a type of product to be
purchased, the City may specify a list of approved products by reference to particular manufacturers or
sellers according to the following product pre - qualification procedure:
1. The City has made reasonable efforts to notify known manufacturers or vendors of competitive
products of its intention to accept applications for inclusion in its list of pre - qualified products.
Notification shall include advertisement in a trade journal of statewide distribution when possible.
In lieu of advertising, the City may notify vendors and manufacturers appearing on the appropriate
list maintained by the Oregon Department of Transportation (ODOT) Qualified Products List or
any list produced and maintained by the Oregon Department of General Services.
2. The City permits application for pre - qualification of similar products up to 15 days prior to
advertisement for bids on the product.
B. If an application for inclusion in a list of pre - qualified products is denied, or an existing pre - qualification
revoked, the City shall notify the applicant in writing. The applicant may appeal to the Board for a
review of the denial or revocation in the same manner as an appeal of disqualification or denial provided
in PCR 30.150.
20.030 BRAND NAME OR MARK EXEMPTION
A. The City may apply for and receive a brand name or mark exemption ruling from the Board for current
and contemplated future purchases. Applications shall contain the following information:
1. A brief description of the contract or contracts to be covered. The description should include
contemplated future purchases.
2. The brand name, mark or product to be specified.
3. The reasons the City is seeking the exemption.
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B. The Board may grant brand name or mark exemptions only if either of the following conditions are met:
1. The exemption is not likely to encourage favoritism in public contracts or substantially diminish
competition and will result in cost savings.
2. There is only one manufacturer or seller of the product of the quality required, or efficient utilization
of existing equipment or supplies requires acquisition of compatible equipment or supplies.
PCR 25.000 — MINORITY OWNED BUSINESSES, WOMAN OWNED BUSINESSES, AND
EMERGING SMALL BUSINESSES
25.010 MINORITY OWNED BUSINESSES, WOMAN OWNED BUSINESSES, AND EMERGING SMALL
BUSINESSES
It is the policy of the City to provide opportunities for available contracts to certified minority owned,
woman owned and emerging small business and to cooperate with the State or Oregon Advocate for
Minority, Women and Emerging Small Business to determine the best means by which to make such
opportunities available.
25.015 AUTHORITY TO REQUIRE SUBCONTRACTING WITH CERTIFIED MINORITY OWNED
BUSINESSES, WOMAN OWNED BUSINESSES, AND EMERGING SMALL BUSINESSES
The City may, in solicitation documents, require that some portion of the work to be performed or some
portion of the materials to be provided be provided by a certified emerging small business and establish
other requirements authorized by ORS 279A.105.
PCR 30.000 - FORMAL COMPETITIVE PROCESSES
30.010 DEFINITIONS
For purposes of this chapter, the following definitions apply:
A. "Addenda to the Bid Documents" means additions or changes to the bid documents defined as addenda
shall be labeled as such and distributed according to these rules.
B. "Bid" means an offer submitted in response to an invitation to bid.
C. "Bid Closing" means the date and time announced as the deadline for the receipt of bids.
D. "Bid Opening" means the date, time and place set for opening of bids.
E. "Bid Sample" means a representative specimen of the item that will be available in response to the bid.
F. "Bidder" is a person who submits a bid in response to the City's invitation to bid.
G. "Bidding Period" means the span of time between the date of the invitation to bid and the time and date
set for receipt of bids. A minimum of 14 calendar days shall be provided, unless a shorter time is
deemed necessary in the public interest for a particular procurement.
H. "Board" means Local Contract Review Board.
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I. "Contract" means the written agreement, including the City's solicitation document and the accepted
portions of a bid or proposal, between the City and the contractor describing the work to be done and
the obligations of the parties. Depending upon the goods and services being procured, the City may use
"contract" as meaning a purchase order, price agreement, or other contract document in addition to the
City's solicitation document and the accepted portions of a bid or proposal. If the contract is for a
public improvement, the "contract" may consist of the City's solicitation document, including any
addenda, the general and special conditions governing the work, the accepted portions of the bid or
proposal, the performance and payment bond (if required), plans, technical specifications, approved
shop drawings, and any contract amendments, including approved change orders.
J. "Contract Price" means the total of the awarded bid or proposal amount, including any approved
alternates and any fully executed change orders or amendments.
K. "Contract Release Order" means the document authorizing an additional purchase on an existing
requirement contract.
L. "Contractor" means the individual, firm, or corporation awarded the public contract to furnish the City
the goods, services, or work procured in the City's solicitation.
M. "Descriptive Literature" means materials submitted by prospective vendors to provide information
concerning the products available in response to the bid.
N. "Lowest Responsible Bidder" means the lowest bidder who has substantially complied with all
prescribed public bidding procedures and requirements and who has not been disqualified by the public
contracting agency under ORS 279B.130 or 279C.440.
O. "Proposer" is a person who submits a proposal in response to the City's Request for Proposals.
P. "Solicitation Document" means an Invitation to Bid or Request for Proposals which included all
documents, whether attached or incorporated by reference, utilized for soliciting bids or proposals.
Q. "Specifications" means any description of the physical or functional characteristics or of the nature of a
supply, service, or construction item. Specifications may include a description of any requirement for
inspecting, testing, or preparing a supply, service, or construction item for delivery and the quantities or
qualities of materials to be furnished under the contract. Specifications generally will state the result to
be obtained and may, on occasion, describe the method and manner of doing the work to be performed.
Specifications may be incorporated by reference and /or through attachment to the contract.
30.010 COMPETITION
A. Contracts issued by the City shall be awarded by formal competitive process except as otherwise
exempted under the Oregon Public Contracting Code or these rules.
B. It is the policy of the City to encourage public contracting competition that supports openness and
impartiality in the maximum extent possible.
C. The City finds that:
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1. Competition exists not only in prices, but in the technical competence of suppliers, in their ability to
make timely deliveries, and in the quality and performance of their products and services and that a
balance must exist between performance competition and price competition.
2. The nature of effective competition varies with the product or service being procured and, that
while competitive sealed bids are a common method of procurement, it is not always the most
advantageous, practical or cost - effective method of source selection. The cost of the selection
process must be considered — a costly selection process is not appropriate for contracts with a low
dollar value.
3. Meaningful competition can be achieved through a variety of methods when procuring products or
services. The methods include but are not limited to:
a. Price competition as represented by the initial or acquisition price;
b. Competition as represented by price and performance evaluations of the competing items and
suppliers;
c. Competition as represented by the evaluation of the capabilities of bidders or proposers to
perform needed services;
d. Competition as represented by evaluation of the capabilities of the bidders and proposers to
perform the services followed by a negotiation on price;
e. Competition as represented by another method of procurement that is reasonably determined to
satisfy the City's needs.
D. All public contracts shall be made under conditions that foster or reflect competition among a sufficient
number of potential suppliers that offer a wide spectrum of products and services and that represent a
broad marketplace. Fostering competition shall be reflected in:
1. Research made to determine possible new sources of supply;
2. Attempts made to ensure solicitation documents are simple and inviting;
3. Everyday courtesy shown to prospective suppliers and contractors; and
4. The way information on contracting opportunities is provided to suppliers including but not limited
to advertisement in publications of general circulation or in trade publications and any other
reasonable methods that encourage competition.
E. The City may evaluate every aspect of competition in its efforts to purchase products or services, choose
the appropriate solicitation process, or award contracts according to the criteria described herein and
arrive at offers that represent optimal value to the City.
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30.020 ELIGIBILITY TO BID ON CONSTRUCTION CONTRACTS
A person shall not submit a bid or proposal to work as a construction contractor unless that person is first
registered with the Construction Contractors Board or licensed by the State Landscape Contractor's Board
as required by ORS 671.530. Bids from persons who fail to comply with this requirement shall be deemed
non - responsive and be rejected.
The City may require prequalification of bidders in accordance with ORS 279C.430 and ORS 279C.435.
The City may also disqualify a bidder from consideration for contract award in accordance with ORS
279C.440.
30.025 SOLICITATION DOCUMENTS
Solicitation documents shall include the following:
A. Instructions and information to bidders or proposers concerning the submission requirements,
including the time and date set for opening, the name, address and title of the person designated to
receive bids and a contact person, if different, a statement the bid or proposal must be physically
received by the City by the deadline and any other special information relating to bid submission. The
bid deadline shall be at least seven days after the first publication of notice and 5 days after the last
publication of notice.
B. The date that pre - qualification applications must be filed if pre - qualification is a requirement.
C. The character of the work to be done or the items to be purchased, including, as applicable:
specifications, delivery or performance schedule, inspection and acceptance requirements, and special
evaluation factors;
D. The office where any additional information, including additional specifications, may be reviewed or
obtained;
E. For bids — the contract terms and conditions, including warranty and bonding or other security
requirements, as applicable. For proposals, a list of contract terms required by the City, a list of
additional issues to be included in the contract, and a list of issues for which the proposer is expected to
propose contract terms.
F. That the solicitation may be cancelled or that any or all bids may be rejected for not complying with all
prescribed procedures and requirements;
G. That any and all bids may be rejected for good cause on a finding that it is in the public interest to do so;
H. In invitations to bid, a statement whether the bidders is a resident bidder as defined in ORS 279A.120
( (b);
I. That a contractor must be licensed for asbestos abatement under ORS 468A.710, if applicable;
J. A statement that no bid or proposal for construction shall be received or considered by the City unless
the bidder or proposer is registered with the Construction Contractors Board per PCR 30.020 ;
K. If bid or proposal security is required, a description of the security required;
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L. A description of any performance and payment bonding requirements;
M. For proposals, a description of the manner in which proposals will be evaluated and the relevant value
of each evaluation factor, including price. If a multi - tiered process is used, that process will be
described, including the process for protesting the decision at any stage of the process;
N. If applicable, a statement that no bid will be considered unless the bid contains a statement that the
bidder will comply with ORS 279C.840 or 40 USC 276a; and
O. All addenda issued by the City.
30.030 BIDS AND PROPOSALS ARE OFFERS
A. Bids and proposals constitute an offer to enter into a contract which, if accepted by the City, shall bind
the bidder or proposer to a contract unless the bid or proposal is withdrawn prior to opening.
B. The bid or proposal shall constitute a "firm offer" unless bidders or proposers are specifically
authorized to take exceptions or to leave terms open to negotiation by the invitation to bid or request
for proposals. However, nothing in this provision prohibits the City from negotiating with a bidder or
proposer to the full extent allowed by state law. Unless expressly authorized by the solicitation
documents or these rules, bidders or proposers shall not make their bids or proposals contingent upon
the City's acceptance of specifications or contractual terms that conflict with or are in addition to those
advertised in the solicitation documents.
30.035 PUBLIC NOTICE
A. Distribution
Solicitation documents or notices of the availability of bid documents shall be mailed to likely bidders
and proposers, placed on the Oregon Department of Administrative Service's electronic procurement
system known as the "Vendor Information Program," or otherwise furnished to a sufficient number of
bidders or proposers for the purpose of securing competitive bids or proposals. Notice of availability
shall indicate where, when, and for how long the bid /proposal documents may be obtained. The City
many charge a fee for the bid documents.
B. Advertising
1. Every formal solicitation of bids or proposals shall be advertised. An advertisement for bids or
proposals shall be published at least once in at least one newspaper of general circulation in the City
and in as many additional issues and publications as the City may determine to be necessary or
desirable to ensure competition. If for a construction contract in excess of $100,000 notice shall be
published in at least one trade newspaper of general statewide circulation. The City shall endeavor
to provide information concerning bids and proposals on its website and may post information on
other databases.
2. All advertisements for bids or proposals shall state:
a. The date and time after which bids will not be received, which date shall not be less than five (5)
days after the date of the last publication of the advertisement;
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b. The date that pre - qualification applications must be filed if pre - qualification is a requirement;
c. The work to be done or the items to be purchased;
d. The office where additional documentation, including specifications, specifications may be
reviewed or obtained;
e. The name, title, and address of the person designated to receive bids;
f. The date, time, and place that bids or proposals will be opened;
g. If for a public improvement, whether the prevailing wage provisions of ORS 279C.800 to
279C.870 and /or the Davis -Bacon Act (40 USC 276a) apply.
C. Posting of bid or proposal advertisement
A copy of each bid or proposal advertisement shall be posted at the business office of the City. Bidders
or proposers may obtain a copy upon request.
30.040 BID OR PROPOSAL PREPARATION
Bid and Proposal Preparation Instructions:
A. Except as otherwise allowed, as applicable, bids and proposals shall be typed or prepared in ink and shall
be signed in ink by the submitter or an authorized representative. The City will not accept facsimile
bids, proposals, or signatures.
B. Bids and proposals shall be made on the bid forms provided unless otherwise instructed in the
solicitation document.
C. Alterations or erasures, if any, shall be initialed in ink by the person signing the bid.
D. Bids and proposals shall include all required documents and descriptive literature.
30.045 BIDDER PRE - QUALIFICATION
The City may require mandatory pre - qualification of bidders on forms prescribed in the bid document.
When pre - qualification is required by the bid documents as a condition for bidding, the City shall not
consider the bid(s) of any prospective bidder who is not pre - qualified. The City shall determine
qualifications within 30 days of receipt of an application for prequalification. In determining responsibility
of the applicant, the City shall consider only the criteria listed in ORS 279B.110(2). The City may have a
separate pre - qualification process. If a bidder is currently pre - qualified by the Oregon Department of
Transportation to perform specific classes of work, the bidder shall be presumed qualified to perform
similar work for the City.
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30.050 BIDDER SUBMISSIONS
A. Samples and Descriptive Literature
Samples or descriptive literature may be required when it is necessary to evaluate required characteristics
of an item. Samples may be returned in accordance with provisions contained in the bid documents.
B. Identification of Bids and Proposals
Bids and proposals shall be submitted in a sealed envelope appropriately marked to ensure proper
identification and special handling. The City shall not be responsible for the proper identification and
handling of any bid not submitted in the designated manner or format to the required delivery point.
The City may refuse to accept or may reject any bid or proposal not properly sealed or marked.
C. Receipt of Bid or Proposal
It is the submitter's responsibility to ensure that bids or proposals are received by the City at the
required delivery point prior to the stated bid or proposal closing time regardless of the method used to
submit or transmit them.
30.055 BID SECURITY
A. Public Improvement Contracts
Bid security not to exceed 10 percent of the base bid(s) shall be required for public improvement
contracts where the amount of the contract exceeds $10,000. The bid security shall be forfeited if the
bidder fails to execute the contract promptly and properly if awarded.
B. Other Public Contracts
Bid security not to exceed 10 percent of the bid may be required by the City for other contracts in order
to guarantee acceptance of the award. This requirement shall be stated in the bid documents if in effect.
C. Contracts Under $10.000
Bid security for contracts of less than $10,000 shall be required only in critical circumstances so as not to
discourage competition.
D. Form of Bid Security
The following forms of bid security will be accepted by the City:
1. Surety bond from surety company authorized to do business in the State of Oregon;
2. Cashier's check, certified check, or savings and loan secured check; or
3. Annual surety bond filed with the City (except for public improvement contracts).
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E. Return of Bid Security
The bid security of all unsuccessful bidders shall be returned after a contract has been executed or all
bids have been rejected. The City may return the bid security of unsuccessful bidders after bid opening
but prior to award if the return does not prejudice bid award and provided that the security of at least
the three lowest bidders is retained pending the execution of a contract.
F. Security for Proposals
If contracts are to be awarded based on competitive proposals, the City may, in its discretion, require
proposal security on the same terms as the bid security described in this section. Proposal security shall
normally be required for any public improvement contract to be awarded by a proposal process.
30.060 PRE -BID OR PRE- PROPOSAL CONFERENCES
Pre -bid or pre - proposal conferences may be held by the City to explain the City's requirements, conduct site
inspections, or otherwise supplement or clarify information. The City may require attendance at the
conference as a condition for bidding or submitting a proposal. The conferences shall be announced in the
solicitation documents. The conference shall be held within a reasonable time after the solicitation
documents have been issued but sufficiently before bid closing to allow consideration of the conference
results in preparing submittals. Statements at the conference shall not change the solicitation documents
unless confirmed to all prospective bidders or proposers by means of a written addendum to the solicitation
documents.
30.065 ADDENDA TO SOLICITATION DOCUMENTS
A. Form
Changes to solicitation documents shall be accomplished by addenda. The bidder or proposer shall
acknowledge receipt of all addenda issued, either with the bid or proposal or separately prior to opening.
A solicitation may be delayed or suspended by addendum if in the best interest of the City.
B. Distribution
Addenda shall be sent to all prospective bidders or proposers known to have obtained the solicitation
documents or attended any mandatory conferences.
C. Timeliness
1. Addenda shall be issued within a reasonable time prior to bid closing to allow consideration prior to
submittal of the bid or proposal, but in no case less than 48 hours before the submittal deadline.
The standard minimum notification for City- issued addenda shall be 72 hours prior to the close of
the bid or proposal. If staff has need to issue any addenda with less than 72 hours (but not less than
48 hours) staff shall document for the project file the reasons for the shorter notification timeframe.
If necessary, the City may notify prospective bidders or proposers by telephonic facsimile (fax), e-
mail, or telephone. If telephone is used, the City shall confirm the oral notice with a written
addendum.
2. In its discretion, the City may extend the closing date and time to allow prospective bidders or
proposers to analyze and adjust to changes made by Addenda. The City shall notify prospective
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bidders or proposers of new closing date and time either in the Addendum or in writing
accompanying the Addendum.
D. Addenda to Multi -Tier RFPs
If a multi -tier process is used to evaluate proposals, the City may issue addenda applicable to any tier of
the process at least 5 days before starting that tier of the process. If the City does issue such addenda,
amended or supplemental proposals may be submitted before the next tier of the process is started.
30.070 PRE - OPENING MODIFICATION OR WITHDRAWAL OF BIDS OR PROPOSALS
A. Modifications
Bids or proposals once submitted may be modified in writing prior to the time and date set for bid
closing. Any modifications shall be prepared on the company letterhead, signed by an authorized
officer, and state that the new document supersedes or modifies the prior bid or proposal. To ensure
the integrity of the process, the envelope containing any modifications to a bid or proposal shall be
marked as follows:
Bid /Proposal Modification
Bid /Proposal Title, Number, and /or Other Identification
B. Withdrawals
1. Bids or proposals may be withdrawn by written notification on company letterhead signed by an
authorized person and received prior to the time and date set for closing. Bids or proposals also
may be withdrawn in person prior to the scheduled closing upon presentation of appropriate
identification.
2. Unopened bids or proposals withdrawn under subsection (a) above may be released to the bidder
after voiding any date and time documentation detailed as the result of the initial submittal.
3. Requests to withdraw mailed bids or proposals shall be marked as follows:
Bid /Proposal Withdrawal
Bid /Proposal Title, Number, and /or Other Identification
C. Documentation
All documents relating to the modification or withdrawal of bids or proposals shall be made a part of
the appropriate bid file.
30.075 RECEIPT, OPENING, AND RECORDING OF BIDS AND PROPOSALS
A. Receipt
Upon receipt, each bid, proposal, or modification shall be time- stamped or marked by hand but not
opened and shall be stored in a secure place until opening. If bids, proposals, or modifications are
opened inadvertently or are opened prior to the time and date set for opening because they were
improperly identified, the bids, proposals, or authorized modification documents shall be resealed and
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stored for opening at the correct time. When this occurs, documentation of the procedure shall be
placed in the file.
B. Opening and Recording
Bids and modifications shall be opened publicly, at the time, date, and place designated in the bid
documents. If witnesses are present at the bid opening, and to the extent practicable, the name of each
bidder, the bid price(s), and such other information as considered appropriate, shall be read aloud. On
voluminous bids the City may advise bidders as part of the bid documents that the bid items and prices
will not be read aloud.
Proposals may be opened at any time after the deadline for submittal of proposals. A summary sheet
providing basic information about each proposal shall be prepared.
C. Availability
Opened bids shall be available for public inspection prior to award except to the extent. the bidder
designates trade secrets or other proprietary data to be confidential (ORS 192.501(2)). Proposals shall
not be available for public inspection until after a contract is awarded and entered into. The City shall
verify and determine that the confidential information claimed to be exempt is in fact exempt from
disclosure under the Oregon Public Records Law. Material so designated shall accompany the bid and
shall be readily separable from the bid or proposal in order to facilitate public inspection of the non -
confidential portion of the bid or proposal. Prices, makes, model, or catalog number of items offered,
scheduled delivery dates, and terms of payment shall be publicly available regardless of any designation
to the contrary.
D. Notice of Intent to Award
The City shall provide notice of intent to award to each person that has submitted a bid or proposal.
The notice shall state the date, time and location of the bid award decision. The notice shall include the
name of the person or entity that staff recommends the contract be awarded to. The notice shall
include any bid comparisons sheets or proposal comparison sheets.
30.080 LATE BIDS, PROPOSALS, WITHDRAWALS, AND MODIFICATIONS
Any bid, proposal, withdrawal, or modification received after the deadline for submission set in the
solicitation documents is late and shall not be considered. The City may use any watch or clock to
determine the time and the determination of the City employee or officer receiving the bids as to whether a
bid, proposal, withdrawal, or modification is late shall be final and not subject to challenge.
30.085 MISTAKES
A. General
Under extraordinary circumstances, a bid or proposal may be withdrawn after the deadline for submittal
because of an inadvertent nonjudgmental mistake. If the mistake is attributable to an error in judgment,
the bid or proposal may not be withdrawn or corrected. Correction or withdrawal by reason of
nonjudgmental mistake is permissible but only to the extent it is not contrary to the interest of the City
or the fair treatment of other bidders or proposers.
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B. Mistakes Discovered after Bid Closing but before Award
This section applies to situations where mistakes in bids are discovered after the submission deadline
but before award.
L Minor Informalities
Minor informalities are matters of form rather than substance that are evident from the bid
documents, or insignificant mistakes that can be waived or corrected promptly without prejudice to
other bidders or the City; that is, the informality does not affect price, quantity, quality, delivery, or
contractual conditions except in the case of informalities involving unit prices. Examples include,
but are not limited to, the failure of a bidder to:
a. Return the number of signed bids or number of other documents required by the bid documents
b. Sign the bid form in the designated block so long the bid documents evidence an intent to be
bound; or
c. Acknowledge receipt of an addendum to the bid documents, but only if:
1. It is clear from the bid that the bidder received the addendum and intended to be bound by
its terms; or
2. The addendum involved did not affect price, quantity, quality, or delivery.
C. Mistakes Where Intended Correct Bid is Evident
If the mistake and the intended correct bid are clearly on the face of the bid form, or can be
substantiated from accompanying documents, the City may accept the bid. Examples of mistakes that
may be clearly evident on the face of the bid form are typographical errors, errors in extending unit
prices, transposition errors, and arithmetical errors. Mistakes that are clearly evident on the face of the
bid form or proposal document also may include instances in which the intended correct bid or
proposal item is made clearly evident by simple arithmetic calculations. For example, a missing unit
price may be established by dividing the total bid or proposal item by the quantity of units for that item,
and a missing or incorrect total bid or proposal price for an item may be established by multiplying the
unit price by the quantity when those figures are available on the bid or proposal. For discrepancies
between unit prices and extended prices, unit prices shall normally prevail.
D. Mistakes Where Intended Correct Bid is Not Evident
The City may not accept a bid in which a mistake is clearly evident on the face of the bid form but the
intended correct bid is not clearly evident or cannot be substantiated from accompanying documents.
30.090 TIME FOR ACCEPTANCE
Bids shall be valid and binding offers for 30 days from the deadline to submit bids unless otherwise
specified in the bid documents. Proposals shall be binding and valid offers for 60 days from the date of the
submittal deadline.
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30.095 EXTENSION OF TIME FOR ACCEPTANCE OF BID OR PROPOSALS
The City may request orally or in writing that bidders or proposers extend the time in which the City may
accept their offers.
30.100 EVALUATION AND AWARD
A. General
The contract, if awarded, is to be awarded to the lowest responsive and responsible bidder or the best
responsive and responsible proposer. Consistent with the provisions of the solicitation documents and
in the public interest as determined by the City, awards may be made by item, groups of items, or entire
bid or proposal. The City reserves the right to reject any bid or proposal not in compliance with the
solicitation documents or with state law, City Code, or these rules. The City reserves the right to reject
any or all bids or proposals upon a finding by the City that it is in the public interest to do so.
B. Special Requirements
1. Solicitation documents shall set forth any special requirements and criteria that will be used to
determine the lowest responsible bidder. No bid shall be evaluated for any requirement or criterion
that is not disclosed in the bid documents or City regulation.
2. In determining the lowest responsible bidder, the City shall, for the purpose of awarding the
contract, add a percent increase on the bid of a non - resident bidder equal to the percent, if any, or
of the preference give to that bidder in the state in which the bidder resides.
3. The City may rely on a list provided for by the Oregon Department of Administrative Services
pursuant to ORS 279A.120 (1) (4) for preference provided for by this section.
C. Product Acceptability
1. The solicitation documents shall set forth the evaluation criteria to be used in determining product
acceptability. The City may require the submission of samples, descriptive literature, technical data,
or other material, and may also provide for accomplishing any of the following prior to award.
a. Demonstration, inspection, or testing of a product prior to award for such characteristics as
quality or workmanship;
b. Examination of such elements as appearance, finish, taste, or feel; or
c. Other examinations to determine whether the product conforms to specifications.
2. The acceptability evaluation is conducted only to determine that a bidder's offering is acceptable as
provided in the bid documents. Any bidder's product which does not meet the minimum
requirements shall be rejected.
D. Determination of Lowest Responsive and Responsible Bidder
Following determination of product acceptability as set forth in subsection C, if applicable, bids will be
evaluated to determine which bidder offers the lowest cost to the City in accordance with the evaluation
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criteria set forth in the bid documents. Only objectively measurable criteria, which are set forth in the
bid documents, shall be applied in determining the lowest responsible bidder. Examples of such criteria
include, but are not limited to, transportation cost, volume weighing, trade -in allowances, depreciation
allowances, cartage penalties, and ownership or life cycle cost formulas. Evaluation factors need not be
precise predictors of actual future costs, but to the extent possible, such evaluation factors:
1. Are reasonable estimates based upon information the City has available concerning future use;
2. Treat all bids equitably; and
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at
the least cost.
The City shall take into account any preferences provided by these rules in determining the lowest bid.
E. Determination of Best. Responsive. and Responsible
Proposals will be evaluated to determine which proposer offers the best solution to the City in
accordance with the evaluation criteria set forth in the solicitation documents. Only the criteria set forth
in the solicitation documents shall be applied. The criteria shall be as objective as possible. Examples
of evaluation criteria may include, but are not limited to, cost, quality, service, compatibility, product
reliability, operating efficiency, expansion potential, performance history on other private and public
contracts, experience of key personnel, adequacy of equipment and /or physical plan, financial
wherewithal, sources of supply, references and warranty provisions. Evaluation factors need not be
precise predictors of actual future costs and performance, but to the extent possible, such evaluation
factors shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. To the extent that the proposal involves a public improvement, recognize that public policy requires
public improvements to be accomplished at the least cost.
F. In evaluating proposals, the City may use any of the following methods:
1. An award based solely on an evaluation of the written proposals;
2. Discussions with a number of proposers leading to a best and final offer from each proposer and an
evaluation of the best and final offers;
3. An award based on the written proposals and interview performance;
4. Serial negotiations, staring with the highest ranked proposer;
5. Competitive simultaneous negotiations;
6. A multi-tiered process, with some number of proposer being eliminated at each stage of the process;
7. A multi-stage process, with a qualifications determination at the first stage of the process, followed
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by cost considerations; or
8. Any other method or combination of methods designed to best serve the needs of the City and its
taxpayers.
The solicitation document shall describe the process to be followed.
G. No Assignment or Transfer of Contract Rights
Unless an express provision of the public contract otherwise provides, the contractor shall not assign,
sell or transfer rights, nor delegate responsibilities, under public contract, either in whole or in part,
without first obtaining the City's prior written consent. Unless otherwise agreed by the City in writing,
such consent shall not relieve the contractor of any obligations under a public contract, and any assignee
or transferee shall be considered the agent of the contract and bound to abide by all provisions of the
public contract. Except in the event of a novation, if the City consents in writing to an assignment, sale,
or transfer of the contractor's rights and responsibilities, the contractor and its surety, if any, shall
remain ultimately liable to the City for complete performance of the public contract as if no such
assignment, sale, or transfer had occurred.
30.105 LIFE CYCLE COST ANALYSIS
A. In determining the lowest responsible bidder, in the award of a contract, the City may use the cycle
costing. As used in this rule, life cycle costing means determining the cost of a product for its useful life.
B. The City shall follow these procedures:
1. At the time of writing specifications for the product, the City shall identify those factors which will
have cost implications over the life of the product and which, for evaluation purposes, will be used
to adjust the bid or proposal price of the product.
2. The solicitation documents shall set out clearly the factors and methodology to be used in life cycle
cost adjustments.
3. The results of life cycle costing adjustments shall be applied to the bid or proposal price of the
product(s) offered. The bid or proposal that results in the lowest overall ownership cost, taking into
account the life cycle costing adjustments, shall be considered the lowest bid or best proposal for
purposes of bid or proposal price evaluation.
30.110 RESPONSIBILITY
A. A responsible bidder or proposer is one who has:
1. Adequate financial resources to perform the contract, or the ability to obtain such resources. The
City shall require acceptable evidence of the bidder's or proposer's ability to provide or obtain the
required financial resources. Acceptable evidence normally consists of, but is not limited to, current
and recent balance sheets; income statements; cash flow statements; and /or a performance bond
from an acceptable surety in an amount equal to the bid or proposal price. Such evidence may also
include a commitment of specific arrangement that will be in existence at the time of contract award
to rent, purchase, or otherwise acquire the needed facilities, equipment, or other resources;
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2. The ability to comply with the required or proposed delivery or performing schedule, taking into
consideration all existing commercial and public business commitments;
3. A satisfactory performance record. A bidder or proposer who is, or recently has been, seriously
deficient in contract performance shall be presumed to be non - responsible, unless the City
determines that the circumstances were properly beyond the contractor's control or that the
contractor has taken appropriate corrective action. Record of failure to perform acceptably is strong
evidence of non - responsibility. The City shall consider the number of contracts involved and the
extent of the deficiency of each in making this evaluation. In addition, the City may consider
whether the bidder's performance history demonstrates responsibility as defined in ORS 279B.110
and 279C. 375;
4. Key personnel available of sufficient experience, as determined by the City, to perform the
contracts;
5. The necessary organization, experience, accounting and operational controls, and technical skills, or
the ability to obtain these skills and abilities as required to satisfactorily perform the contract. These
may include, as appropriate, such elements as production control procedures, property control
systems, and quality assurance measures applicable to materials to be produced or services to be
performed by the bidder and its proposed subcontractor(s);
6. The necessary production, construction, and technical equipment and facilities, or the ability to
obtain them;
7. A satisfactory record of integrity;
8. For contractors on public improvement contracts, has not been determined to be not responsible by
the Construction Contractors Board; and
9. Is otherwise qualified and eligible to receive award under applicable laws and regulations.
B. The City shall consult with the Construction Contractor's Board concerning the responsibility of any
person to whom a public improvement contract is proposed to be awarded, and shall comply with the
reporting requirements of ORS 279C.375. The City has the right, prior to awarding any public contract,
to make such investigation as is necessary to determine whether a bidder or proposer is responsible.
This investigation may include, but is not limited to:
1. An inquiry into the responsibility of proposed subcontractors and suppliers.
2. Requiring a bidder or proposer to demonstrate its financial ability to perform the contract as
provided in subsection A.1 of this rule. In exercising this right, the City shall notify the apparent
successful bidder or proposer in writing to submit such documentation as the City deems necessary
to complete a thorough evaluation of financial ability.
3. By submitting a bid or proposal, a bidder or proposer authorizes the City to request any credit
report information the City deems necessary to investigate and evaluate financial responsibility to
perform the contract(s).
C. Failure of a bidder or proposer to promptly supply information requested by the City during its
responsibility investigation shall be grounds for a finding of non - responsibility.
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D. Only bids and proposals from responsible bidders or proposers, as defined in this rule, shall be eligible
for contract award. Bid or proposals from non - responsible bidders or proposers shall be rejected as
provided in PCR 30.115.
30.115 RESPONSIVE AND NON - RESPONSIVE BIDS OR PROPOSALS; ACCEPTANCE AND
REJECTION
A. A "responsive bid or proposal" is one that complies in all material aspects with the solicitation
documents and with all prescribed public bidding procedures and requirements.
B. A "non- responsive bid or proposal" is one which:
1 Omits, or is unclear as to the price and the price cannot be determined in the bid or proposal
documents;
2. Offers goods or services of a quality or quantity inferior to that requested in the solicitation
documents;
3. Does not meet the delivery date requirements specified in the solicitation documents;
4. Takes exception to the terms and conditions of the solicitation documents other than as allowed by
these rules or the solicitation documents;
5. Is conditional upon the City's acceptance of terms and conditions difference from those contained
in solicitation documents, except as allowed by these rules or the solicitation documents; or
6. Contains a deviation which, if the bid or proposal were accepted, would give the bidder or proposer
a substantial advantage or benefit not shared by other bidders or proposers to the solicitation
documents.
C. The City shall accept, and consider for award, only those bids or proposals, which are responsive as
defined in this rule. Non - responsive bids or proposals shall be rejected, as provided in PCR 30.115.
30.120 LOW TIE BIDS
A. Definition
Low tie bids are low responsive bids from responsible bidders that are identical in price, fitness,
availability and quality and which meet all the requirements and criteria set forth in the bid documents.
B. Award
1. If low tie bids are received, a preference shall be given to goods and services that have been
manufactured or produced in Oregon.
2. If the bids remain tied after application of the Subsection 1, preference shall be given to the bidder
whose principal offices or headquarters are located in Oregon.
3. If the bids remain tied after application of Subsections 1 and 2, the award shall be made by drawing lots
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among any tied Oregon bidders. Such bidders shall be given notice and an opportunity to be present
when the lots are drawn.
4. If there are no Oregon bidders after application of subsections 1 and 2, award of the contract shall be
made by drawing lots.
30.125 REJECTION OF INDIVIDUAL BIDS OR PROPOSALS
A. General
This section applies to rejections, in whole or in part, of individual bids or proposals. The City may
reject in whole or in part, any bid not in compliance with all prescribed bidding procedures and
requirements, and may reject for good cause any bid or proposal upon a written finding of the City that
it is in the public interest to do so. No bid shall be considered unless the bid security, properly executed,
has been submitted with the bid as required by the bid documents.
B. Reasons for Rejection
Reasons for rejecting a bid or proposal include but are not limited to:
1. The submitter has not pre - qualified when pre - qualification is required or has been disqualified;
2. The submitter has been declared ineligible by the Commissioner of the Bureau of Labor and
Industries under ORS 279.361;
3. The bid or proposal is non - responsive, that it does not conform in all material respects to bid
documents or requirements, including all prescribed public procurement procedures and
requirements;
4. The supply, service, or construction item offered in the bid or proposal is unacceptable by reason of
its failure to meet the requirements of the solicitation documents or permissible alternates or other
acceptability criteria set forth in the solicitation documents;
5. The submitter is not capable of satisfying the terms and conditions of the public contract in a timely
manner due to financial incapacity; inability to obtain bonding, loss of license, or other objective
cause;
6. The submitter within the last 5 years has been found, in a civil, criminal, or administrative
proceeding, to have committed fraud, misrepresentation, price - rigging, unlawful anti- competitive
conduct, or similar behavior;
7. The submitter has been determined responsible (i.e., adjudicated by a court, or as determined in
writing by the City agency in the case of a public contract) for more than one breach of a public or
private contract(s) in the last 3 calendar years before the scheduled date of the bid opening;
8. The security has not been submitted or properly executed as required by the solicitation documents;
9. When applicable, the bidder has not met the emerging small business, disadvantaged business,
minority business, and women business enterprise requirements, if any, established by the City, and
has not made a good faith effort to comply with the requirements prior to the time bids are opened;
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10. The submitter failed to certify in accordance with Section D of this rule;
11. Other circumstances of the particular bid, proposal, or submitter (including submitter's
subcontractors) indicate that acceptance of the bid or proposal would impair the integrity of the
selection process or result in an imprudent contract by the City; or
12. The contractor has discriminated against subcontractors because the subcontractor is a minority,
women or emerging small business enterprise certified under ORS 200.055.
C. Form of Business Entity
The corporate or business form of bidders or proposers shall be subject to scrutiny, so that previously
disqualified bidders or proposers, or their officers and directors, may not by subterfuge, change of
apparent ownership, or other adjustments in formal appearance, avoid application of this rule.
D. Non - discrimination Certification
The bidder or proposer shall certify as part of the bid that the contractor has not discriminated against
subcontractors because the subcontractor is certified as a minority, women, or emerging small business
enterprise.
30.130 REJECTION OF ALL BIDS OR PROPOSALS
A. Bid Rejection
All bids or proposals may be rejected for good cause upon a written finding by the City that it is in the
public interest to do so. Notification of rejection of all bids or proposals, along with the good cause
justification and finding of public interest shall be sent to all that submitted a bid or proposal.
B. Rejection Criteria
Reasons for rejecting all bids or proposals include but are not limited to:
1. An error in the solicitation documents, including its terms, conditions, or specifications that
unnecessarily restricted competition for the public contract;
2. The price, quality, or performance presented by the lowest or best responsible bidder or proposer is,
in the City's opinion, too costly or of insufficient quality to justify acceptance of the bid or proposal.
This criterion may be satisfied evidence that the same goods or services can be obtained otherwise
for less cost;
3. Misconduct, error, or ambiguous or misleading provisions in the bid documents or process threaten
the fairness and integrity of the competitive process; or
4. Causes other than legitimate market forces threaten the integrity of the competitive procurement
process. These causes include, but are not limited to, those that tend to limit competition such as
restrictions on competition, collusion, corruption, unlawful anti - competitive conduct, and
inadvertent or intentional errors in the bid documents.
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30.135 PROTESTS OF AWARD
A. Purpose
Adversely affected or aggrieved bidders or proposers must exhaust all avenues of administrative review
and relief before seeking judicial review of and decision by the City under the Public Contracting Code
or these rules.
B. Notice of Award
The written notice of award of the contract shall constitute a final decision by the City to award the
contract if no written protest of the notice of award is filed with the City within seven calendar days of
the notice of award or such other period as provided in the City's solicitation. If a protest is timely filed,
the notice of award is a final decision of the City upon issuance of a written decision denying the protest
and affirming the award. The notice of award and any written decision on a protest shall be sent to
every bidder or proposer who provided an address.
C. Right to Protest
Any actual bidder or proposer who is adversely affected or aggrieved by the City's notice of award of the
contract to another bidder or proposer on the same solicitation shall have seven calendar days after
notice of award to submit to the City a written protest of the notice of award or such other time as
provided in the solicitation documents. The written protest shall specify the grounds upon which the
protest is based. In order to be adversely affected or aggrieved, a bidder or proposer must itself claim to
be eligible for award of the contract as the lowest responsible bidder or best proposer and must be next
in line for award; i.e., the protester must claim that all lower bidders or better proposers are ineligible for
award because they are non - responsive or non - responsible. The City shall not entertain a protest
submitted after the time period established in this rule or such different period as may be provided in
the City's solicitation.
D. Authority to Resolve Protests
The City Manager, or designee, shall have the authority to settle or resolve a written protest submitted
under section E of this rule.
E. Decision
If the protest is not settled or resolved by mutual agreement, the City Manager, or designee, shall
promptly issue a written opinion on the protest. If the opinion denies the protest, judicial review of this
decision will be available if provided for by statute. If the City Manager or designee determines that
there is good cause for the protest, the matter shall be submitted to the Board for further action. The
decision of the Board on a protest shall be final. Both the protestor and the person to whom the
contract was awarded shall have a right to present arguments to the Board.
30.140 PROTESTS OTHER THAN NOTICE OF AWARD
A. A protest may be filed to contest the adoption or amendment of these rules, adoption of a class or
contract specific exemption, solicitation documents (including specifications and contract terms), or the
process used in the solicitation. The protest must be filed with the City's Contracts and Purchasing
Office within 7 days of the adoption or amendment of rules or exemptions, the publication of
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solicitation documents, or other action being protested. Grounds for protest are limited to:
1. That the City acted contrary to law;
2. That the City's actions unnecessarily restrict competition; or
3. That the City has improperly specified a brand name.
B. The protest must include:
1. Sufficient information to identify the solicitation;
2. The grounds for the protest;
3. Evidence or supporting information; and
4. The relief sought.
C. The City Manager shall, if possible, issue a written decision on the protest under this section at least
three days before any bid or proposal opening that could be affected by the protest.
D. A bidder or proposer who does not protest a proposed contract term included in the solicitation
documents must accept the contract term as included in the solicitation documents.
E. If protest of a solicitation is timely received, the opening date may be extended if necessary to allow
consideration for the protest and issuance of any addenda to the solicitation documents.
F. Envelopes containing protests of solicitation specifications shall be marked as follows:
Specification Protest
Bid /Proposal Title, Number, and /or Other Identification
30.145 NEGOTIATION
A. Negotiation with Bidders
If a project is competitively bid and all responsive bids from responsible bidders exceed the City's cost
estimate, the City may negotiate with the lowest responsive, responsible bidder, prior to awarding the
contract, in order to solicit value engineering and other options to attempt to bring the project with the
agency's cost estimate.
1. A negotiation with the lowest responsive, responsible bidder pursuant to this paragraph shall not
result in the award of the contract to that bidder if the scope of the project is significantly changed
from the original bid proposal.
2. Notwithstanding any other provision of law, the records of a bidder used in contract negotiation
pursuant to this paragraph are not subject to public inspection until after the negotiated contract has
been awarded or the negotiation process has been terminated.
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B. Negotiation with Proposers
The City may negotiate with proposers after proposal opening in order to try to reach the best possible
contract for the City. Proposals may be revised in the course of negotiations for the best offer, provided
that any revision is not so extensive as to be unfair to other proposers who do not have the opportunity
to negotiate.
30.150 BIDDER DISQUALIFICATION
A. Definitions - As used in this rule:
1. "Disqualification" means the debarment, exclusion or suspension of a person from right to submit
bids or proposals in response to the City's solicitations for a reasonable, specified period of time
named in the order of disqualification. A contractor or vendor so debarred, excluded or suspended,
is disqualified.
2. "Person" means an individual, partnership, or corporation. Disqualification attaches to and follows
the individual, so that an individual who is a partner in a partnership or an officer or principal in a
corporation which is disqualified may not re -form the business entity as a way of avoiding the
disqualification.
B. Grounds for bid - specific disqualification include:
1. The person does not have sufficient financial ability to perform the contract. If a bond is required
to ensure performance of a contract, evidence that the person can acquire a surety bond in the
amount and type required shall be sufficient to establish financial ability;
2. The person does not have equipment available to perform the contract;
3. The person does not have key personnel available of sufficient experience to perform the contract;
or
4. The person has repeatedly breached contractual obligations to public and private contracting
agencies.
5. The person has discriminated against a subcontractor because the subcontractor is a minority,
women, or emerging small business enterprise certified under ORS 200.055.
6. The person has engaged in conduct prohibited by ORS 200.075, including:
a. If the person has entered into any agreement representing that a disadvantaged, minority,
women or emerging small business enterprise, certified pursuant to ORS 200.055, will be
performing or supplying materials under a public improvement contract without the knowledge
and consent of the certified enterprise;
b. If the person exercises management and decision making control over the internal operations, as
defined by ORS 200.075(1)(b), of any certified disadvantaged, minority, women or emerging
small business enterprise;
c. If the person uses a disadvantaged, minority, women or emerging small business enterprise to
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perform contracting services or provide supplies under a public improvement contract to meet
an established Disadvantaged Business Enterprise (DBE) /Minority-owned Business Enterprise
(MBE) /Woman -owned Business Enterprise (WBE) /Emerging Small Business (ESB) goal, when
the enterprise does not perform a commercially useful function, as define by ORS 200.075(3), in
performing its obligations under the contract.
C. Debarment
A prospective bidder or proposer may be debarred from consideration for an award for a period of up
to three years if convicted of a criminal offense relating to a public contract; convicted of a crime
involving dishonesty (as provided in ORS 279B.130(2)(b), convicted under antitrust statutes, has
violated a contract and debarment for violation was listed in the contract terms, or failure to carry
workers compensation or unemployment insurance.
Debarment shall be by written decision explaining the reasons for the debarment and explaining appeal
rights. Appeals shall be provides under ORS 279B.425. Any appeal must be filed with the City's
Contracts and Purchasing Office within three days after receipt of the notice of debarment.
D. Investigation
The City may make such investigation as is necessary to determine whether a person is qualified. If a
bidder or prospective bidder fails to supply information promptly as requested by the City, such failure
is grounds for disqualification.
E. Notice of Disqualification
The bidder or prospective bidder will be notified in writing by personal service or certified mail of the
City's decision to disqualify the person from bidding with the City. The notice shall contain:
1. The effective date of the disqualification and the effective period of disqualification;
2. The grounds for disqualification from bidding; and
3. A statement of the contractor's appeal rights and applicable appeal deadlines.
F. Appeal of Disqualification
If a contractor wishes to appeal the City's decision to disqualify, the contractor must notify the City in
writing within three business days after receipt of the notification. The City shall mail its notice to the
contractor by Certified Mail Return Receipt Requested, if not personally served. Appeals shall be
conducted under the procedures and standards of ORS 279C.445 and 279C.450. A protest of a denial,
revocation, or revision of a prequalification shall be filed within three business days after receipt of
notice of the decision. On receipt of the protest, a hearing shall be set before the Local Contract
Review Board and the hearing shall be held and the decision issued within 30 days of receipt of the
protest. The Local Contract Review Board will consider the action de novo, based on applicable
standards. If the denial is upheld, the person filing the protest shall reimburse the City for costs of
processing the protest.
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30.155 CANCELLATION OF INVITATIONS TO BID OR REQUESTS FOR PROPOSALS
A. Cancellation in the Public Interest
An invitation to bid or request for proposal may be canceled, in whole or in part, and all bids received
may be rejected when it is in the public interest as determined by the City. The reasons therefore shall
be made part of the file.
B. Notice of Cancellation
When an invitation to bid or request for proposal is canceled prior to the submission deadline, notice of
cancellation shall be sent to all known holders of the documents. When an invitation to bid or request
for proposals is canceled after deadline for submission, notice shall be sent to those who submitted a bid
or proposal. The notice of cancellation shall:
1. Identify the specification documents;
2. Briefly explain the reason for cancellation; and
3. Where appropriate, explain that an opportunity will be given to compete on any re- solicitation.
30.160 DISPOSITION OF BIDS OR PROPOSALS IN EVENT OF CANCELLATION
A. Prior to Bid Opening
When an invitation for bids or request for proposals is canceled prior to opening of the bids or
proposals, all submissions will be returned unopened, if submitted with a clearly visible return address.
If there is no return address on the envelope, the submissions will be opened to determine the source
and then returned to sender.
B. After Opening
When all bids or proposals are rejected, those received shall be retained and become part of the City's
permanent project file.
30.165 DOCUMENTATION OF AWARD
A. Basis of Award
Following award, a record showing the basis for determining the successful bidder shall be made a part
of the file.
B. Contents of Award Record
The record shall consist of:
1. Completed bid tabulation sheet; or
2. Completed proposal evaluations; and
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3. Written justification of any rejection of lower bids; or
4. Written explanation for any rejection of proposals for failing to meet mandatory requirements of the
Request for Proposals.
30.170 FOREIGN CONTRACTOR
If a contractor is not domiciled in or registered to do business in the State of Oregon, the City shall require
the contractor to promptly provide the Oregon Department of Revenue and the Secretary of State
Corporation Division with any and all information required by those agencies relative the contract between
the contract and City. The City shall have the right to withhold final payment to the contractor under this
Rule until the contractor has met the requirement under the Rule.
30.175 CONTRACT TERMS AND CONDITIONS
A. Required Terms and Conditions
The City shall establish standard terms and conditions for contracts. Contracts shall include provisions
relating to the following, if applicable. For those provisions referring to statutes, the contract language
shall comply with and implement the statutes.
1. Payment of laborers and material suppliers; contributions to Industrial Accident Fund; liens and
withholding taxes, and drug testing (ORS 279B.220, 279C.505);
2. Payment of claims by public officers, payments to first tier subcontractors and claims by labor and
materials suppliers (ORS 279C.515),
3. Hours of labor (ORS 279B.020, 279B.235, 279C.520, 279C.540);
4. Environmental and natural resources regulations (279B.525);
5. Payment for medical care, compliance with or exemption from workers compensation laws (ORS
279B.230, 279C.530);
6. Prevailing wage rates (ORS 279C.830);
7. Salvaging, recycling, composting or mulching yard waste material, and salvage and recycling of
construction and demolition debris (ORS 279B.225, 270C.510);
8. Certification by contractor of compliance with the Oregon tax laws according to ORS 305.385;
9. Certification by contractor of nondiscrimination as to relations with subcontractors (ORS
279A.110);
10. Inclusion of provisions in contracts with subcontractors, as required by ORS 279C.580;
11. Progress payments and retainage;
12. Bonding requirements (performance and payment bonds, and bonds required to be filed with the
Construction Contractors Board or BOLI); and
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13. Any other requirement imposed by federal or state law, regulation, rule or ordinance, which is
applicable to the contract.
B. The City may develop and require contract provisions relating to the following:
1. Termination of the contract;
2. Suspension of the work;
3. Labor and materials liens;
4. Liability in absence of bond;
5. Use of recovered resources and recycled and recyclable materials, including paper, oils, and tires;
6. Any other term to further the City's and the public interest.
C. Terms and Conditions Applicable to Construction Contracts
In cases where the contract calls for work as described in ORS 701.005(2) (i.e.; construction work), the
contracts shall contain:
1. Certification by the "contractor" that the contractor is registered with the Construction Contractors
Board according to ORS 701.035 to 701.055, unless prohibited by federal regulations.
2. Certification by the contractor that all subcontractors performing work as described in ORS
701.005(2) will be registered with the Construction Contractors Board according to ORS 701.035 to
701.055 before the subcontractors commence work under this contractor.
D. Special Terms and Conditions
The City may also establish special terms and conditions applicable to specified categories of contracts.
Any special terms and conditions shall be included in the bid documents and become an integral part of
those contracts.
E. Compliance and Exceptions to Terms and Conditions
1 Bidders and proposers shall be responsible for noting the terms and conditions included applicable
to each set of solicitation documents.
2. By submitting a bid or proposal, the bidder or proposer acknowledges acceptance of and the intent
to abide by the terms and conditions specified in the invitation to bid or request for proposals and
agrees to enter into a contract consistent with state public contracting law requirements. Submission
of a bid or proposal without objection to provisions listed in the form contract included in the
solicitation documents constitutes an offer to enter into a contract on those terms and no
negotiation of those terms is permitted after the contract award.
3. The City has the right to reject any bid or proposal that takes exception to specifications or to
contract terms unless the right to take exception is expressly granted in the Invitation to Bid or
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Request for Proposals. Bids or proposals which take exception to the specifications or contract
terms, or which are made contingent upon the City's acceptance of different or additional
specifications or terms, may be rejected because they are not responsive to the Invitation to Bid or
the Request for Proposals.
4. Any exceptions to any proposed terms and conditions must be clearly stated in writing by the bidder
or proposer in the signed bid or proposal. The City reserves the right to reject or accept any bid or
proposal that takes exception to the terms and conditions, but must take into account any objections
in comparing the bid or proposal to other bids or proposals. Exceptions to the terms and
conditions become contractual obligations only upon written acceptance by the City.
F. Commentary
The following is a list of federal, state, and local agencies of which the City has knowledge that have
enacted ordinances or regulations dealing with the prevention of environmental pollution and the
preservation of natural resources that may affect the performance of contracts:
FEDERAL AGENCIES:
Agriculture
Department of Forest Service
Soil Conservation Service
Defense
Department of Army Corps of Engineers
Energy
Department of Federal Energy Regulatory Commission
Environmental Protection Agency
Department of Health and Human Services
Housing and Urban Development
Department of Solar Energy Conservation Bank
Interior, Department of
Bureau of Sports Fisheries and Wildlife
Bureau of Outdoor Recreation
Bureau of Land Management
Bureau of Mines
Bureau of Indian Affairs
Bureau of Reclamation
Geological Survey
Minerals Management Service
Labor, Department of
Mine Safety and Health Administration
Occupational Safety and Health Administration
Transportation, Department of
Coast Guard
Federal Highway Administration
Water Resources Council
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STATE AGENCIES:
Administrative Services, Department of
Agriculture, Department of
Columbia River Gorge Commission
Consumer & Business Services, Department of Oregon Occupational Safety & Health Division
Energy, Department of
Environmental Quality, Department of
Fish and Wildlife, Department of
Forestry, Department of
Geology and Mineral Industries, Department of
Human Resources, Department of
Land Conservation and Development Commission
Parks and Recreation, Department of
Soil and Water Conservation Commission
State Engineer
State Land Board
Water Resources Board
LOCAL AGENCIES:
City Council
County Court
County Commissioners, Board of
Port Districts
Metropolitan Services Districts
County Service Districts
Sanitary Districts
Water Districts
Fire Protection Districts
30.180 AVAILABILITY OF AWARD DECISIONS — CONTRACT RETENTION
A. Contract Documents
A signed purchase order, agreement, or contract, as applicable, shall be executed with the person to
whom the contract is awarded.
B. Notification to Unsuccessful Bidders
Unsuccessful bidders and proposers will be provided with the notice of intent to award. Tabulations of
awarded bids shall be posted on the City's website or may be obtained in accordance with the City's
Public Record Request policies.
C. Availability of Files
Completed files, other than confidential materials, shall be available for public review at the City in
accordance with the City's Public Records policies.
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D. Copies from Files
Copies of material from files may be obtained in accordance with the City's Public Records policies.
E. Contract Retention
The following requirements on retention of contract documents after award shall apply:
1. For all service contracts the original must be kept for six (6) years after the contract has been
completely executed;
2. Capital improvement contracts must be kept a minimum of 10 years after substantial completion;
3. Goods contracts must be kept for six (6) years after maturity;
4. Intergovernmental and interagency agreements must be kept a minimum of 10 years after substantial
completion; and
5. Other purchasing related documents should be retained according to City retention schedules;
Any copies of the originals must be kept for two (2) years after maturity in all of the categories listed
above.
30.185 REQUESTS FOR PROPOSALS
A. The City may use the request for proposal process for any contract for which price is not the sole factor
for awarding the contract. When the City uses a request for proposal, the solicitation document shall
state:
1. The necessary contract terms;
2. The evaluation criteria to be applied in awarding the contract and the role of an evaluation
committee, if any;
3. The criteria for awarding the contract, which may include but are not limited to cost, quality, service,
experience, expertise, compatibility with existing or future City assets, product reliability, operating
efficiency, and expansion potential;
4. Complaint processes and remedies available;
5. The provisions made for vendors to comment on any specifications that they believe limit
competition; and
6. The location where sealed written proposals are to be submitted and the date and deadline for
submittal.
B. All requests for proposals shall be published at least once in a newspaper, journal, trade publication or
similar periodical. In deciding where to advertise, the City shall consider what publication is most likely
to be read by qualified proposers.
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C. The City may establish an ad hoc proposal review committee to evaluate any proposal and may provide
for an interview of selected proposers as part of the evaluation process. Any use of a proposal review
committee or interview process shall be detailed in the request for proposals.
30.190 PERFORMANCE AND PAYMENT SECURITY
A. Public Improvements Contract
Except in emergencies, when the requirement may be waived, or unless the requirement is exempted
under these rules, all persons entering into public improvements contracts with the City will be required
to provide:
1. A performance bond in a sum equal to the contract price, and
2. A payment bond in a sum equal to the contract price.
3. Proof that a public works bond with a corporate surety in the amount of $30,000 has been filed with
the Construction Contractors Board for contracts subject to Prevailing Wage Rate Law.
Public improvement contracts of $10,000 or less are exempt from the bond requirements.
B. Other Public Contracts
The City may require performance security for other public contracts. Such requirements shall be stated
in the solicitation documents.
C. Contracts Under $10.000
Performance bonds for a contract under $10,000 shall be utilized only in critical circumstances, so as not
to discourage competition.
D. Requirement for Surety Bond
A surety bond furnished by a surety company authorized to do business in Oregon is the only
acceptable form of performance security unless otherwise specified in the solicitation documents.
E. Time for Submission
Upon request by the City, the apparent successful bidder or proposer must furnish the required
performance bond within ten days of contract award. Prompt submittal of the performance bond is
required to ensure timely project initiation. Failure to furnish the bond prior to the deadline shall result
in rejection of the bid or proposal, forfeiture of bid security, and award to the next lowest responsible
bidder or next highest- scoring proposer.
F. Claims on Payments Bonds
Claims on payment bonds shall comply with ORS 279C600 to 279C.625 and Section 40.060.
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30.195 RIGHT TO AUDIT RECORDS
A. Records Maintenance; Access
Contractors and subcontractors shall maintain all fiscal records relating to public contracts in accordance
with generally accepted accounting principles. In addition, contractors and subcontractors shall
maintain any other records necessary to clearly document (i) their performance and (ii) any claims arising
from or relating to their performance under a public contract. Contractors and subcontractors shall
make all records pertaining to their performance and any claims under a public contract accessible to the
City at reasonable times and places, regardless whether litigation has been filed as to such claims.
B. Audit of Cost or Pricing Data
The City may, at reasonable times and places, audit the books and records of any person who has
submitted cost or pricing data according to the terms of a contract to the extent that such books and
records relate to such cost or pricing data. Any person who receives a contract, for which cost or
pricing data are required, shall maintain such books and records that relate to such cost or pricing data
for three (3) years from the date of final payment under the contract, unless a shorter period is otherwise
authorized in writing.
C. Contract Audit
The City shall be entitled to inspect, examine, copy, and audit the books and records of a contractor or
any subcontractor under any contract or subcontract to the extent that such books and records relate to
the performance of such contract or subcontract. Such books and records shall be maintained by the
contractor for a period of three (3) years from the date of final payment under the prime contract and
by the subcontract for a period of three (3) years from the date of final payment under the subcontract,
or until the conclusion of any audit, controversy or litigation arising out of or related to the contract,
whichever date is later, unless a shorter period is otherwise authorized in writing.
30.200 RIGHT TO INSPECT PLANT
A. Time for Inspection
The City may, at reasonable times, inspect the part of the plant or place of business of a contractor or
any subcontractor that is related to the performance of any contract awarded.
B. Access to Plant or Place of Business
As a condition of bidding, bidders agree that the City may enter a contractor's or subcontractor's plant
or place of business during normal business hours for the following purposes:
1. Inspect and /or test supplies or services for acceptance by the City pursuant to the terms of the bid;
or
2. Investigate in connection with a bidder's application, a minority business certification, or bidder
disqualification.
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C. Contractual Provisions
Contracts may provide that the City may inspect supplies and services at the contractor's or
subcontractor's facility and perform tests to determine whether they conform to the bid documents, or,
after award, to contract requirements, and are therefore acceptable. Such inspections and tests shall be
conducted in accordance with the terms of the contract.
D. Procedures for Trial Use and Testing
The City may establish operational procedures governing the testing and trial use of equipment,
materials, and the application of resulting information and data to specifications or procurements.
E. Conduct of Inspections
1. Inspectors
Inspections or tests shall be performed so as not to unduly delay the work of the contractor or
subcontractor. No change of any provision of the specifications or the contract may be required by
the inspector without written authorization of the City, unless otherwise specified in the solicitation
documents. The presence or absence of an inspector shall not relieve the contractor or
subcontractor from any requirement of the contract.
2. Location
When an inspection is made in the plant or place of business of a contractor or subcontractor, such
contractor or subcontractor shall provide without charge all reasonable facilities and assistance for
the safety and convenience of the person performing the inspection or testing.
3. Time of Testing or Inspection
Inspection or testing of supplies and services performed at the plant or place of business of any
contractor or subcontractor shall be performed at reasonable times during normal business hours.
F. Inspection of Construction Projects
On -site inspection of construction shall be performed in accordance with the terms of the contract.
30.205 CONTRACT CANCELLATION AND TERMINATION PROCEDURES
A. A contract may be canceled by the City for any violation of the provisions of the contract or for
violation of the certification of non - discrimination against minority, women, and emerging small
business enterprises.
B. The City may terminate any contract if insufficient funds are appropriated to complete the contract.
C. No cancellation of a public contract shall, unless limited by the terms of the particular contract, restrict
or abrogate any other remedy available to the City that is provided either by law or under the particular
contract.
D. The City shall provide the contractor written notice of the grounds for cancellation or termination and
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of its intention to cancel the contract or terminate the contractor's performance. If the contractor
provided a performance and payment bond, the surety shall also be provided with a copy of the notice
of contract cancellation or contractor termination. The notice shall include the effective date of the
intended cancellation or termination, the grounds for cancellation or termination and notice of the
amount of time (if any) in which the City will permit the contractor to correct the failure to perform.
The public contract may provide contract cancellation or contractor termination procedures that are
different from or in addition to, those provided in this rule.
E. If the contractor has provided a performance and payment bond, the City may afford the contractor's
surety the opportunity, upon the surety's receipt of a contractor termination notice, to provide a
substitute contractor to complete performance of the contract. Performance by the substitute
contractor shall be rendered pursuant to all material provisions of the original contract, including the
provisions of the performance and payment bond. Such substitute performance does not involve the
award of a new public contract and shall not be subject to competitive procurement requirements.
PCR 40.000 - PUBLIC IMPROVEMENT CONTRACTS
40.010 APPLICATION
In addition to the requirements set forth in Section 30 of these rules, the following rules apply to public
improvement contracts. The requirements in Section 40 are intended to be complementary to those in
Section 30, with the rules in Section 40 supplementing the Section 30 requirements, where necessary, to
meet the City's needs when administering contracts for public improvements.
40.015 COMPETITIVE BIDDING
Except as otherwise specifically permitted by these rules, public improvement contracts shall be awarded by
competitive bidding. If the public improvement contract includes design aspects, including value
engineering under a CM /GC covered project, the City may award the contract by a competitive proposal
process.
40.020 FIRST TIER SUBCONTRACTOR NOTICE
If the public improvement contract may be for more than $100,000, the solicitation documents must
provide notice that the contractors must disclose first -tier subcontractors who will furnish labor or materials
greater than five percent of the total bid or $15,000, whichever is greater, or $350,000 regardless of the
percentage of the total bid within two working hours after the deadline for bid submission. The disclosure
must state the name of each subcontractor and the category of work the subcontractor will perform.
40.025 FIRST TIER SUBCONTRACTOR DISCLOSURE
A. Bidders for public contracts with a value of more than $100,000 must submit a first -tier contractor
disclosure sheet within two hours of the deadline for submitting a bid. The disclosure sheet must list all
first -tier subcontractors who will furnish labor or materials greater than five percent of the total bid or
$15,000, whichever is greater, or $350,000 regardless of the percentage of the total bid. The disclosure
must state the name of each subcontractor, the category of work the subcontractor will perform and the
dollar value of each subcontract. If no first -tier subcontractor meets the threshold level for disclosure
and the bid price is more than $100,000, the disclosure sheet must still be submitted with the
information that no subcontractors meet the threshold level for disclosure.
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B. Bid and proposals for public improvement contracts with a value of greater than $100,000 for which a
first -tier subcontractor disclosure is not submitted within two hours of the submittal deadline shall be
considered non - responsive.
C. The closing for submission of bids subject to first -tier subcontractor disclosure shall be on Tuesday,
Wednesday or Thursday between 2 and 5 pm.
D. First tier subcontractors may be substituted if only in compliance with ORS 279C.585.
E. The City may require first -tier subcontractor disclosure in any invitation to bid, even if disclosure is not
otherwise required by statute or these rules.
40.030 BID EVALUATION AND AWARD
A. General
Unless exempted by these rules, a public improvement contract, if awarded, is to be awarded to the
lowest, responsive and responsible bidder.
B. Special Requirements
The solicitation documents shall set forth any special requirements and criteria, which will be used to
determine the lowest, responsive and responsible bidder. No bid shall be evaluated for any requirement
or criterion that is not disclosed in the solicitation documents or City regulation.
C. Bid Evaluation and Award
The evaluation format for competitive bid pricing can be lump sum, unit price, or a combination of the
two.
1. Lump sum
If the bid form includes a lump sum base bid, plus additive or deductive alternates, the total bid
price, for the purpose of comparing bids, shall be the total sum computed from adding or deducting
alternates, as selected by the City, to the base bid. If the alternates, or if the City has selected no
additive or deductive alternates for award, bids shall be compared on the basis of lump sum prices,
or lump sum base bid prices, as applicable.
2. Unit Price
If the bid includes unit prices and extensions for estimated quantities, the total bid price, for the
purpose of comparing bids, will be the total sum computed from multiplying the bidder, with due
adjustments being made for additive or deductive alternates, if any, selected for award. Note: In
case of a conflict between a unit price and the corresponding extended amount, the unit price shall
govern.
3. Combination Lump Sum and Unit Price
The City shall select a combination of factors for purposes of bid evaluation and contract award and
use the methods described in (a) and (b) to compute and compare bids. Note: In case of a conflict
between a unit price and the corresponding extended amount, the unit price shall govern.
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D. Proposal Evaluation and Award
If a selection method other than competitive bids is authorized by these rules for a public improvement,
proposals will be evaluated to determine which proposer offers the best solution to the City in
accordance with the evaluation criteria set forth in the solicitation documents and in the City's rules.
The solicitation evaluation criteria may include, but are not limited to, cost, quality, relevant experience,
service, performance history on other private and public contracts, experience and availability of key
personnel, adequacy of equipment and physical plant, financial wherewithal, sources of supply, and
references. Evaluation factors need not be precise predictors of actual future costs and performance,
but, to the extent possible, such evaluation factors shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at
the least cost.
E. 1\_k_aignment or transfer of contract rights
A contractor shall not assign, sell, or transfer rights, nor delegate responsibilities under a public contract
either in whole or in part, without first obtaining the City's prior written consent. Such written consent
shall not relieve a contractor of any obligations under a public contract, and any transferee shall be
considered the agent of the contractor and bound to abide by all provisions of the public contract.
Except in the event of a novation, if the City consents in writing to an assignment, sale, or transfer of
the contractor's rights and responsibilities, the contractor shall remain ultimately liable to the City for
complete performance of the public contract as if on such assignment, sale, or transfer had occurred.
40.035 CONTRACT CANCELLATION PROCEDURES
A. Termination Due to Circumstances Beyond the Control of the Contractor
1. Reasons for Termination
The City may, in its sole discretion, by written order or upon written request from the contractor,
terminate the contract or a portion thereof if any of the following occur:
a. The contractor is prevented from completing the work for reasons beyond the control of the
City;
b. Completion of the project is beyond the control of the contractor;
c. For any reason considered by the City to be in the public interest (other than a labor dispute or
reason of any third party judicial proceeding relating to the work other than a suit or action filed
in regards to a labor dispute). These reasons may include, but are not necessarily limited to,
non - availability of materials, phenomenon of nature of catastrophic proportions or intensity,
executive orders of the President related to national defense, congressional or state acts related
to funding;
d. Any third party judicial proceeding relating to the work other than a suit or action filed in
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regards to a labor dispute;
e. If the circumstances or conditions are such that it is impracticable within a reasonable time to
proceed with a substantial portion of the public works;
f. The City does not have funds budgeted or available to complete the contract; or
g. Any other reason allowed as a basis for termination under the contract.
2. Payment When Contract is Terminated
When the contract, or any portion thereof, is terminated before completion of all items of work in
the contract, payment will be made for the actual items of work completed under the contract, or by
mutual agreement, for items of work partially completed. No claim for loss of anticipated profits
will be allowed.
3. Responsibility for Completed Work if Contract Terminated
Termination of the contract or a portion thereof shall not relieve the contractor of responsibility for
the work completed, nor shall it relieve the surety of its obligation for any claims arising from the
work performed.
B. Termination of Contract for Default
1. Declaration of Default
The City may, after giving the contractor or the surety seven (7) days' written notice and an
opportunity to cure deficient performance, terminate the contractor's performance for any
reasonable cause, including but not limited to those set forth in subsection 2(a)(1) to (6) of this rule.
Upon such termination, the City may immediately take possession of the premises and of all
materials, tools and appliances thereon as well as all other materials, whether on the premises or not,
on which the contractor has received partial payment. The agency may finish the work by whatever
method it may deem expedient.
a. If the contractor should persistently or repeatedly refuse to or fail to supply an adequate number
of properly skilled workers or proper materials for the efficient execution of the project; or
b. If the contractor should fail to make prompt payment to subcontractors for material or labor, or
persistently disregard laws, ordinances, or the instruction of the City, or otherwise be guilty of a
substantial violation of any provision of the contract; or
C. If the Contractor should voluntarily or involuntarily seek protection under the U.S. Bankruptcy
Code and its Debtor in Possession or Trustee for the estate fails to assume the contract within a
reasonable time; or
d. If the contractor should make a general assignment for the benefit of the contractor's creditors;
or
e. If a receiver should be appointed on account of the contractor's insolvency; or
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f. If the contractor is otherwise in material breach of any part of the contract.
2. Required Response to Declaration of Default
If the above action is taken, the contractor or the surety shall provide the City with immediate and
peaceful possession of all of the materials, tools, and appliances located on the premises, as well as
all other materials whether on the premises or not, on which contractor has received any progress
payment. Further, the contractor shall not be entitled to receive any further payment until the work
is completed. On the completion of the work, determination shall be made by the City of the total
amount under the terms of the contract, had the contractor completed the work. If the difference
between said total amount and the sum of all amounts previously paid to the contractor, which
difference will hereinafter be called the "unpaid balance," exceeds the expense incurred by the City
in completing the work, including expense for additional managerial and administrative services,
such excess will be paid to the contractor, with the consent of the surety. If, instead, the expense
incurred by the City exceeds the unpaid balance, the amount of the excess shall be paid to the City
by the contractor or the surety.
3. Expense of Completion
The expense incurred by the City shall be as determined and certified by the City.
4. Substitution of Contractor
As provided in PCR 30.205, termination of the contractor and substitution of another contractor to
complete the work does not constitute the award of a new public contract and shall not be subject
to the provisions of ORS 279A.015 (5), ORS 279B.050 to ORS 279B.085, or ORS 279C.300 to ORS
279C.470.
5. Refusal to Perform
In addition to and apart from the above - mentioned right of the City to terminate the employment of
the contractor, the contract may be canceled by the City for any willful failure or refusal on the part
of the contractor to perform faithfully the contract according to all of its terms and conditions;
however, in such event neither the contractor nor the surety shall be relieved from damages or
losses suffered by the City on account of the contractor's breach of contract.
6. Remedies are Cumulative
The City may, at its discretion, avail itself of any or all of the above rights or remedies without
prejudice or preclude the City from subsequently invoking any other right or remedy set forth above
or elsewhere in the contract.
40.040 RETAINAGE
A. Retainage of Five Percent
The City will retain amounts from progress payments so that the total value of all amounts retained will
not exceed 5 percent of the value of completed work. If the contract work is 50 percent completed and
the work is progressing satisfactorily, the retainage may be reduced on the remaining progress payments.
Any reduction or elimination of retainage shall be allowed only upon written application of the
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contractor, which application shall include written approval of the contractor's surety; except that when
the contract work is 97-1/2 percent completed, the City may without application by the contractor,
reduce the retained amount to 100 percent of the value of the contract work remaining to be done. If
retainage has been reduced or eliminated, the City reserves the right in protecting its interests to
reinstate at any time retainage from further progress payments.
B. Alternatives to Cash Retainage
In lieu of cash retainage to be held by the City, the contractor may select one of the following options:
1. Deposit of Securities
The contractor may deposit bonds or securities with the City or in any bank or trust company to be
held for the benefit of the City. In such event, the City shall reduce the retainage in an amount equal
to the value of the bonds and securities. This reduction in retainage will be made in the progress
payments made subsequent to the time the contractor deposits the bonds and securities.
The value of the bonds and securities will be determined periodically by the City and the amount
retained on progress payments will be adjusted accordingly. The bonds and securities deposited by
the contractor shall be fully assigned to the City or be payable to the City on demand and shall be of
a character approved by the Finance Director, including but not limited to the following:
a. Bills, certificates, notes or bonds of the United States.
b. Other obligations of the United States or its agencies.
c. Obligations of any corporation wholly owned by the Federal Government.
d. Indebtedness of the Federal National Mortgage Association.
e. Time certificates of deposit or savings account passbooks issued by a commercial bank, savings
and loan association, or mutual savings bank, duly authorized to do business in Oregon.
f. Corporation bonds rated A or better by a recognized rating service.
g. General obligation bonds of the State of Oregon or any political subdivision thereof.
h. General obligation improvement warrants issued pursuant to ORS 287.502.
i. Irrevocable letters of credit from a bank doing business in Oregon.
At the time the City determines that all requirements for the protection of the City's interest has
been fulfilled, all bonds and securities deposited as above provided will be released to the contractor.
2. Deposit in Interest - Bearing Accounts
Upon written request of the contractor, the City shall deposit any amounts withheld as retainage in
an interest- bearing account in a bank, savings bank, trust company, or savings association for the
benefit of the City. Interest earned on such account shall accrue to the contractor.
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3. The City may, at its discretion, allow the contractor to deposit a surety bond in a form acceptable to
the City in lieu of all or a portion of funds retained to be retained. The contractor shall accept like
bonds from subcontractors and suppliers when the City allows surety bonds for retainage.
C. Recovery of Costs
If the City incurs additional costs as a result of the exercise of any of the options for retainage described
herein, the City may recover such costs from the contractor by reduction of the final payment. As work
on the contract progresses, the City shall, upon request, inform the contractor of all accrued costs.
40.045 PROGRESS PAYMENTS
A. Request for Progress Payments
At a regular time each month, the contractor shall, if required by the contract documents, submit to the
City a request for payment based upon an estimate of the amount of work completed and of the value
of acceptable material to be incorporated in the completed work which has been delivered and
acceptably stored. Upon verification and approval of the City, the sum of these values will be referred
to the "value of completed work." With these estimates as a base, a progress payment will be made to
the contractor, which shall be equal to the value of completed work, less such amounts as may have
been previously paid, less such other amounts as may be deductible or as may be owing and due to the
City for any cause, and less an amount to be retained in protection of the City's interests.
B. Progress Payments Do Not Constitute Acceptance of Work
Progress payments shall not be construed as an acceptance or approval of any part of the work covered
thereby, and they shall in no manner relieve the contractor of responsibility for defective workmanship
or material.
C. Estimates for Progress Payments
The estimates upon which progress payments are based are not represented to be accurate estimates,
and all quantities shown therein are subject to correction in the final estimate. If the contractor uses
such estimates as a basis for making payments to subcontractors, this is at the contractor's own risk, and
the contractor shall bear all loss that may result.
D. Contractor Certified Payroll Payment Withholding
The City shall withhold 25% of any amount owed to a contractor if the contractor does not file certified
payroll records with the City along with any invoice for payment on any project covered by Prevailing
Wage Rate Law.
40.050 FINAL INSPECTION
A. Notification of Completion
When the contractor determines that all construction work on the project has been completed, the
contractor shall so notify the City in writing. The City shall make an inspection of the project and
project records within fifteen (15) days of receiving said notice. If, at such inspection, all construction
provided for and ordered under the contract is complete and satisfactory to the City, and all
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certifications, bills, forms, and documents have been submitted properly, such inspection shall constitute
the final inspection.
B. Instructions to Complete the Work
If, however, at any inspection, any work in whole or in part is found unsatisfactory, or it is found that all
certifications, bills, forms, and documents have not been submitted properly, the City shall within fifteen
(15) days provide instructions to the contractor on outstanding requirements to complete the project.
At such time as the contractor determines full compliance with, and the execution of such instructions,
the contractor shall notify the City in writing. The City shall make another inspection within fifteen (15)
days after such notice, and this inspection shall constitute the final inspection provided construction
work has been completed satisfactorily.
C. Acknowledgment of Acceptance
Upon satisfactory completion of all work required under the contract, the City shall acknowledge
acceptance of the work in writing.
40.055 FINAL ESTIMATE AND FINAL PAYMENT
A. Submission of Final Estimate
As soon as practicable after final inspection of the work under the contract, if unit prices were
applicable, the City shall prepare a final estimate of the quantities of the various classes of work
performed. Following a determination of the total amount due the contractor, and following final
acceptance of the work by the City, final payment shall be made to the contractor.
B. Set -off of Prior Payments
All prior partial estimates and payments shall be subject to correction in the final estimate and payment.
C. Retainage
Any retainage help by the City shall be included in and paid to the contractor as part of a contract's final
payment.
D. Interest
In accordance with ORS 279C.570 (8), the City shall pay a contractor interest at the rate of 1.5 percent
per month on the final payment due to a contractor, with the interest to commence thirty (30) days after
the work under the contract has been completed and accepted and shall run until the date when the final
payment is paid to the contractor.
40.060 CLAIMS FOR UNPAID LABOR OR SUPPLIES
A. Right of Action
A person claiming to have supplied labor or materials for work on a public improvement contract led by
the City for which the person has not been paid by the prime contractor or any subcontractor, has a
right of action on the contractor's payment bond. This right arises if the person has not been paid in
full and has given written notice of a claim within 120 days of last providing labor or furnishing
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materials, or within 150 days of providing labor or furnishing materials if the claim is for a required
contribution to a fund of any employee benefit plan.
B. Notice of Claim
1. To initiate a claim against the contractor's bond, a person should file a Notice of Claim in the form
and manner attached as PCR 40.061 - Exhibit A. Such notice must be given to the contractor and
the City.
2. Any notice of claim should include the following information:
a. Name and address of the claimant;
b. Name of prime contractor;
c. Title of project and contract date;
d. Name of the City;
e. Name of bonding company (may be obtained from City); and
f. Name of contractor or subcontractor to whom labor or material supplied.
C. Response to Notice of Claim
Upon receipt of such Notice of Claim, the City shall:
1. Send an acknowledgment to claimant;
2. Send a copy of the notice to the prime contractor; and
3. File a copy of the Notice with the bonding (surety) company.
D. Referral to Surety Company
If the contract has been completed and all funds disbursed to the prime contractor, all claims shall be
referred to the surety company for resolution. The City shall not arrange for second payments directly
to subcontractors or suppliers for work already paid for by the City.
E. Discretionary Payment of Claim
If the contract is still in force, the City may pay a valid claim to the person furnishing the labor or
services and charge the amount of the payment against funds due or to become due to the contractor
under the contract.
F. Liability of Claim
If the City chooses to make a payment as provided in Subsection E, the contractor or the contractor's
surety shall not be relieved from obligation with respect to any unpaid claims.
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40.061 EXHIBIT A
To: (insert name of the public body)
NOTICE IS HEREBY GIVEN that the undersigned, (insert name of subcontractor or supplier), a (corporation,
partnership, sole proprietorship, etc.), as claimant, has a claim for (labor performed by the claimant, materials supplied by
the claimant, etc.), generally consisting of (brief description) in the sum of $ against the payment bond taken
from (name of prime contractor), as principal, and (name of bonding company if known), as surety, for the construction of
the (title or description of project). The material or labor was supplied to (name of contractor).
(Insert a brief description of the work concerning which the bond was taken.)
DA1'D this day of , 20_.
By
(claimant's name)
40.065 PLANNING FOR PUBLIC IMPROVEMENTS
The City will prepare a file with the Commissioner of the Bureau of Labor and Industries a list of planned
public improvements at least 30 days before adoption of the City's budget and otherwise comply with ORS
279C.305.
40.070 PREVAILING WAGE LAWS
Contractors shall comply with all Prevailing Wage Rate Laws (ORS 279C.800 to 279C.870 or the Davis -
Bacon Act, 40 US 276a) if applicable.
PCR 50.000 - WAIVER OF SECURITY (BID, PERFORMANCE AND PAYMENT BONDS) (Also
see PCR 30.055)
50.010 BID SECURITY REQUIREMENTS
The City shall require bid security unless an exception under the Public Contracting Code or these rules
apply. The City may, in its discretion, waive bid security requirements for contracts other than those for
public improvements. In its discretion, the City may accept blanket bid bonds. The City may require
proposal security bonds.
50.015 CONTRACTS UNDER $10,000
The City may, in its discretion, waive the bid security and performance bond requirements if the amount of
the contract is less than $10,000.
50.020 EMERGING SMALL BUSINESS CONTRACTS UNDER $100,000
A. The City may, in its discretion, waive bid security requirements and performance bond requirements
when the public improvement project:
1. Has estimated direct construction costs not exceeding $100,000;
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2. Is being undertaken through a program where the bidders are drawn exclusively from a list of
certified Emerging Small Businesses maintained by the Advocate of Minority, Women and
Emerging Small Business; and
3. The City has been provided funds by the legislature for the purpose of assisting Emerging Small
Businesses.
B. The City may waive bid security requirements and /or performance bond requirements under the
following conditions:
1. There exists an emerging small business account or like source of funds containing an unexpended
and unobligated balance;
2. The City has authority to encumber and make payments from the account; and
3. The City encumbers an amount in the account to cover the total cost of each project wherein the
bid security and /or the performance bond is waived.
PCR 60.000 - PROPERTY DISPOSITION
60.010 SURPLUS PERSONAL PROPERTY
A. Personal property owned by the City and under the dollar value of $500 may be disposed of with the
approval of any department head or the City Manager. Personal property that exceeds that dollar value
may be disposed of only after being declared surplus by the City Manager. The method of disposal will
be determined based on condition, value, demand, and /or use.
B. Personal property may be declared surplus by the City Manager or designee if it is scheduled for
replacement in an adopted budget or it is no longer necessary to provide City services.
60.015 AUCTION SALES OF PERSONAL PROPERTY
Personal property may be sold at auction if the City determines that an auction will probably result in the
best net return for the City. Auctions that are widely publicized, including internet auctions, do not require
notice by the City.
60.020 SALES OF PERSONAL PROPERTY
A. When the current market value per item is estimated to be more than $25,000, the personal property
must be offered for competitive bid and be advertised in a newspaper of general circulation in the City.
The City at its discretion may choose between sealed written bids or a public auction. If no bids are
received or if a determination is made that the market value of the property exceeds the offer of the
highest responsible bidder, all bids may be rejected, and the City may negotiate a sale subject to the
following conditions:
1. An appraisal of the market value of the property is obtained and documented, and the negotiated
sale price exceeds the market value; or
2. The sale amount exceeds the highest bid received through the bidding or auction process.
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B. The City may sell personal property by a negotiated sale if the value of the property is estimated to be
less than $25,000 and the City has determined that a sale without competitive bidding will result in at
least as much net revenue as would a competitive bidding process. The City shall endeavor to get as
many quotes as is reasonable under the circumstances (normally at least three) and shall negotiate to
maximize the proceeds for the City.
60.025 LIQUIDATION SALES OF PERSONAL PROPERTY
The City may sell personal property through a commercially recognized third party liquidator if the City has
determined that a liquidation sale will result in increased net revenue and the selection of the liquidator was
conducted by the competitive request for proposal process under these rules.
60.030 DONATIONS OF PERSONAL PROPERTY
A. The City may transfer personal property, including recyclable or reclaimed materials, without
remuneration or only nominal remuneration without competitive bids to the following entities:
1. Another public agency;
2. Any sheltered workshop, work activity center or group care home which operates under contract or
agreement with, or grant from, any state agency and which is certified to receive federal surplus
property; or
3. Any recognized non -profit activity, which is certified to receive federal surplus property.
B. The City may donate or sell, without competitive bids, surplus personal property to recognized private,
non -profit social or health service activities, subject to the following conditions:
1. A determination has been made that the property is not needed for other public purposes; and
2. If the property has a current market value of $500 or more, the donation or sale shall:
a. Be approved by the City Manager or designee; and
b. Be documented by the City to be clearly in the public interest.
C. The City shall maintain a record of all transfers, donations, or sales authorized by sections A and B of
this rule.
60.035 TRADE OF PERSONAL PROPERTY
The City may trade personal property owned by the City to other government agencies or to other entities
provided the following conditions apply:
A. Trades to other government agencies are exempt from public bidding by PCR 10.010A.1; however, such
trades must be approved by the City Manager.
B. Trades of personal property with parties other than government agencies must proceed as follows:
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1. The market value of both the item to be traded and the item requested must be documented.
2. The proposal to trade an item for another item must be made available to an adequate number of
potential vendors to encourage competition.
3. Such trades must be approved by the City Manager.
60.040 DISPOSAL OF SURPLUS PERSONAL PROPERTY MEETING HAZARDOUS WASTE
DEFINITIONS
If personal property has been declared surplus by the City and can be defined as a hazardous material or
waste, including electronic material, or e- waste, the City may appropriately recycle or dispose of the property
without competitive bids subject to the following conditions:
A. A determination has been made that the property is not needed for other public purposes,
B. If the property has a current market value of $500 or more, staff made a good faith effort to locate a
seller and documentation of the effort will be made part of the City's files.
PCR 70.000 - PERSONAL SERVICES CONTRACTS
70.010 PERSONAL SERVICES CONTRACTS
A. Personal service contracts are not "public contracts" subject to formal competitive process under the
Oregon Public Contracting Code. This Section of the PCRs describes a method for distinguishing
between personal service contracts and public contracts, particularly service contracts, and provides
examples of contracts or classes of contracts which are or are not personal service contracts.
B. The determination whether a contract is a public contracts or a personal service contract shall be based
on the following:
1. Whether the City has developed or is reasonably able to develop reasonably adequate design and /or
performance specifications and whether selecting a contractor on the basis of lowest price and
meeting minimum specifications would likely meet the City's needs. If the tasks to be performed
can reasonably be performed based solely on compliance with minimum specifications, then the
tasks should be performed pursuant to a public contract awarded by a competitive bidding process.
Conversely, if the City is reasonably unable to develop adequate design and /or performance
specifications but must instead have the assistance of the contractor's training, knowledge, and
expertise to develop a scope of work statement and selecting the contractor on the basis of lowest
price would be unlikely to meet the City's needs, then the tasks would most appropriately be
performed under a personal service contract.
2. Whether selecting the contractor on the basis of qualifications rather than lowest price will result in
the City obtaining the best value for its money.
3. A personal service contract is appropriate where the contract is awarded primarily on the basis of
the contractor's qualifications, including but not limited to, such criteria as experience, training,
knowledge, and expertise, technical skill, creativity, artistic ability, performance history, and
demonstrated ability to exercise sound professional judgment. Price will be a secondary criterion for
awarding a personal service contract.
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4. A personal service contract is not appropriate where price is or should be the primary or a major
selection criterion.
C. Personal service contracts may include, but are not limited to, the following:
1. Contracts for services performed as an independent contractor in the professional capacity,
including but not limited to the services of an accountant; attorney; architectural or land use
planning consultant; physician or dentist; registered professional engineer; appraiser or surveyor;
aerial photographer; timber cruiser; broadcaster; or data processing consultant.
2. Contracts for such services as an artist in the performing of fine arts, including but not limited to
photographer, filmmaker; painter; weaver; or sculptor.
3. Contracts for services of a specialized creative and research oriented, noncommercial nature.
4. Contracts for educational and human custodial care services.
D. The following are NOT personal service contracts:
1. Contracts, even though in a professional capacity, if predominately for a product, e.g., a contract
with a landscape architect to design a garden is for personal services, but a contract to design a
garden and supply all the shrubs and trees is predominately a tangible product.
2. A service contract, including a contract with a temporary service or personnel agency, to supply
labor which is of a type that can generally be done by any competent worker, e.g., data entry,
janitorial, security guard, crowd management, crop spraying, laundry, and landscape maintenance
service contracts
3. Contracts for trade related activities considered to be labor and material contracts.
4. Contracts for services of a trade- related activity, to accomplish routine, continuing, and necessary
functions, even though a specific license is required to engage in the activity. Examples are repair
and /or maintenance of all types of equipment or structures.
70.015 SCREENING AND SELECTION POLICY FOR PERSONAL SERVICES CONTRACTS
It is the City's policy to select as expeditiously as possible the best qualified consultant available, consistent
with financial considerations. The selection procedures in this section shall be used to select the personal
services contractors, except where ORS 279C.110 requires a different procedure. The selections procedures
do not apply to the appointment or hiring of City officials and employees, to employment or services
contracts with City officials and employees (except if providing services outside the scope of employment or
official duties), or to collective bargaining agreements.
A. Formal Selection Procedure
This procedure shall be used for personal service contracts when the total cost of the contract exceeds
$100,000. The City may elect to use the Formal Selection Procedure for any personal service contract,
regardless of price.
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1. Announcement
The City will make at least one public announcement of its need for personal services in an
appropriate trade periodical or newspaper of general circulation. The announcement shall include a
description of the proposed project, the scope of the services required, project completion dates,
and a description of any special requirements, if present. The announcement shall invite qualified
prospective contractors to indicate to the requesting department their interest in performing the
services required. The announcement will specify a closing date by which the statement must be
received by the appropriate department.
2. Application
Prospective contractors must submit a statement which describes their capabilities, credentials, and
performance data sufficient to establish their qualification for the project.
3. Initial Screening
The Department Head or designee shall evaluate the qualifications of all applicants responding to
the announcement by the closing date and select from among the respondents a minimum of three
prospective contractors whose statements evidence the highest level of qualification. Should fewer
than three (3) statements be received, then each prospective contractor submitting statements that
meet the minimum qualifications will be interviewed.
4. Final Selection Procedure
a. Interviews
The Department Head or designee may hold discussions with the finalists selected for initial
screening. Applicant capability, experience, and compensation requirements shall determine the
department's final selection. The interviews may be in person or by phone.
b. Award of Contracts
The Department Head or designee shall make a recommendation to the Board for award of the
contract based on the written materials and the interview evaluation. The designee may be a
committee.
B. Informal Selection Procedure
1. This procedure may be used when the estimated fee to the contractor does not exceed $100,000.
2. The department will contact a minimum of three (3) prospective contractors with which it has had
previous successful experience or which are known by the department to be qualified to offer the
sought -after services. A projected fee will be requested and a selection made by the Department
Head or designee based upon the consultant's capability, experience, project approach, and
compensation requirements.
C. Direct Appointment Procedure
1. A qualified consultant may be appointed directly from the City's current list of consultants, another
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public contracting agency's current list of consultants pursuant to an interagency or
intergovernmental agreement entered into in accordance with ORS Chapter 190; or from
consultants offering the necessary services that the City reasonably can locate. Direct appointment
procedure may be used when:
a. The consultant's estimated fee does not exceed $25,000; or
b. When the project consists of work that has been substantially described, planned, or otherwise
previously studied or rendered in an earlier departmental contract, provided that the original
selection procedure used for the project was a formal procedure and the consultant's estimated
fee does not exceed $100,000.
2. A direct appointment shall be competitive to the extent practicable and may be based on the
consultant's availability, capabilities, staffing experience, compensation requirements and the
project's location.
D. Emergency Appointment Procedure
Nothing in the rule shall be inferred to prohibit or otherwise impede the Department Head's or
designee's right to make direct consultant appointments when conditions require a prompt action to
protect life or property. In such instances, the recommended appointment and a written description of
the conditions requiring the use of this appointment procedure shall be submitted by the Department
Head or designee to the City Manager or designee for action. The City Manager or designee will
determine if an emergency exists, declare the emergency, and when appropriate, approve the
appointment.
E. Responsible Parties' Actions
1. Professional Consultants
Submit qualifications, credentials, and performance data relating to their capabilities to the
appropriate division in response to project announcement.
2. Division /Department
a. Determine that the work on a project requires the services of a consultant.
b. Announce project as required by this section.
c. Request the City Manager's approval of the required actions.
d. Determine appropriate selection /appointment procedure.
e. Select consultant /candidates as specified under this rule.
f. Interview the top candidates and make the final selection.
g. Execute contracts and awards to consultants, with the City Manager's prior approval.
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h. Maintain a file on the selection process, including:
1. The method and copy of the announcement.
2. The names of firms /individuals and cost estimates considered.
3. A justification of need for the contract.
4. The basis for selection.
5. The means by which rates were established.
6. How reasonableness of price was determined.
7. A copy of the resulting contract.
3. City Manager
a. Approves each project's scope and budget as necessary.
b. Makes direct and emergency appointments as required.
c. Approves /disapproves Personal Services Contract and all subsequent amendments unless the
amount of the contract requires the Board's approval.
70.020 AMENDMENTS
Amendments for additional work on personal service contracts shall be permitted only if the City requests
additional work of the same type. Any such amendment may not exceed 25% of the original contract value.
If an additional personal services contract is to be awarded for work related to an existing personal service
contract, the total value of the new and old contracts is to be considered in determining the type of selection
procedure required. If a contract was originally awarded by the informal selection procedure, amendments
that would result in a total contract price of more than $50,000 are not permitted. If a contract was
originally awarded by the direct appointment procedure under Section 70.015C.1.a, amendments that would
result in a total contract price of more than $10,000 are not permitted.
PCR 80.000 - EMERGENCY CONTRACTS; SPECIFIC EXEMPTION REQUIREMENTS;
BOARD EXCEPTION; PROCEDURES; TEMPORARY EXEMPTIONS
80.010 EMERGENCY CONTRACTS
A. The City Manager or designee may, at the City Manager's or designee's discretion, authorize or let public
contracts without a formal competitive process if an emergency exists and the emergency consists of
circumstances creating a substantial risk of loss, damage, interruption of service, or threat to public
health or safety that could not have been reasonably foreseen and requires prompt execution of a
contract to remedy the condition.
B. The City Manager or designee must declare the existence of an emergency, which shall authorize the
City to enter into an emergency contract with a price under $50,000 and make detailed written findings
describing the emergency conditions necessitating prompt execution of the contract. A copy of the
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findings together with the amount of the contract and the name of the contractor shall 'be immediately
forwarded by the City Manager to the Board.
C. Any contract awarded under this exemption shall be awarded within sixty (60) days following declaration
of the emergency unless an extension is granted.
D. The City may enter into a public contract without a formal competitive process when circumstances that
could not reasonably be anticipated, require prompt establishment and performance of the contract in
order to preserve public funds, property, or the uninterrupted provision of government services. In
exercising its authority under this exemption, the City shall:
1. To the extent reasonable under the circumstances, encourage competition by attempting to make
informal solicitations or to obtain informal quotes from potential suppliers of goods or services;
2. Make written findings describing the circumstances that require the prompt performance of the
contract and of the harm anticipated to result from failing to establish the contract on an expedited
basis; and
3. Record the measures taken under subsection (a) of this section to encourage competition, the
amounts of the quotes or proposals obtained, if any, and the reason for selecting the contractor.
E. The City shall not contract pursuant to the exemption in the absence of a substantial risk of loss,
damage, or interruption of services that would occur if contract performance awaited the time necessary,
given the complexity of the project, to solicit, receive and analyze bids or proposals.
PCR 90.000 - RECYCLABLE /RECYCLED PURCHASING GUIDELINES
90.010 RECYCLED MATERIALS AND PRODUCTS GUIDELINES
The City shall make a good faith effort to prefer, specify, and purchase recyclable items and materials with
recycled content in accordance with ORS 279A.125.
Incentives for recycled materials shall be applied whenever economically feasible.
A preference of 5% shall be applied for materials and supplies manufactured from recycled materials, as
provided in PCR 90.015 with the exception of recycled paper and paper products, which receive a higher
preference percentage as stated in PCR 90.020.
The bidder or proposer shall indicate in its bid or proposal, the materials it considers subject to the 5%
preference. The 5% preference will only apply to the value of that portion of a bid or proposal that offers
products containing verifiable recycled contents. The "5% preference" shall be applied by dividing the bid
amount for the recycled goods by 1.05 and using the resulting number in calculating the total bid amount.
90.015 RECYCLED MATERIALS PREFERENCE
A. In order to qualify for a recycled materials preference, bidders and proposers, in their bids and
proposals, shall certify the minimum or the exact percentage of recycled product in all materials and
supplies offered and both the post- consumer and secondary waste content thereof.
B. Bids that contain false information about the percentage of recycled product, post- consumer and
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secondary waste content, and verifiable recycled content shall be rejected as non - responsive.
C. Contracts awarded as a result of a preference under this rule are subject to investigation, including but
not limited to, audits, plant visitations, examination of invoices and other documents, etc., as the City
deems necessary to confirm that the products supplied contain the percentages of recycled product,
post - consumer and secondary waste stated in the bid or proposal.
D. Failure to provide products containing the percentages of recycled product, post - consumer and
secondary waste stated in the bid may result in:
1. The contractor being required to reimburse the City for the portion of the contract price that is
attributable to the preference; and
2. Contract termination; or
3. Both 1 and 2, or such other remedies the City deems appropriate.
90.020 RECYCLED MATERIALS AND PRODUCTS PURCHASING GUIDELINES
A. Purchase of Paper Products
The City promotes the use of recycled paper and paper products. Purchase of recycled paper and paper
products is preferred even when the cost of the such recycled paper or paper products is up to seven
percent (7 %) higher than the cost of the same quality paper or paper products containing little or no
recycled paper. "Recycled paper" shall be defined as a paper product with not less than fifty percent
(50 %) of its total weight consisting of secondary waste materials or twenty five percent (25 %) of its total
weight consisting of post - consumer waste.
1. In the specification and purchase of City high speed copier and small offset press application paper
and fine printing paper including book, bond, cover, gum, index, bristols, boards, ledger, and
duplicator papers:
a. The City shall use recycled paper wherever possible if available and compatible with existing
printing and copying equipment;
b. The City shall try to eliminate excessive or unnecessary paper use, including but not limited to
over - purchase of paper, over - printing of materials, purchases of too high a grade of paper,
purchase of paper which is not recyclable; and purchase of virgin paper when recycled paper is
available in the same grade;
c. Procurement specifications for the purchase of new printing and copying equipment shall
require the acceptance and operational use of recycled paper and shall be capable of two -sided
copying;
d. The procurement of unbleached, recycled paper is encouraged and the use of bright, hard to
bleach colored or otherwise non - recyclable papers shall be discouraged; and
e. In the specification and purchase of other paper items including corrugated and fiberboard
boxes, folding box board and cartons, stationery, envelopes, legal and scratch pads, manifold
business forms (including computer paper), toilet tissue, paper towels, facial tissue, paper
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napkins and industrial wipes, and brown and coarse papers, the City shall actively solicit
information from vendors with regard to the availability of other paper products (as listed
above) with recycled paper content and promote its use.
B. Purchase of Composted Waste Materials
In the specification and purchase of landscape cover, soil amendment, and fill materials:
1 The City shall eliminate from procurement specifications any exclusions or barriers to the purchase
of recycled compost materials except for exclusions based upon plant or human health or safety; and
2. The City shall make every effort to utilize and specify functionally equivalent composted waste
products in the place of products manufactured from virgin materials.
C. Purchase of Re- refined Petroleum Products
In the purchase of lubricating oils for vehicles and equipment in the City fleet:
1 The City shall make every reasonable effort to utilize lubricating oils with re- refined oil content
unless:
a. The product does not meet performance specifications recommended by the original equipment
manufacturer and related warranties would be voided; and
b. The product is found to not be economically or technically feasible.
2. The City shall review current procurement specifications in order to eliminate (wherever
economically and technically feasible) an exclusion of lubricants refined from recycled waste
materials.
D. Purchase of Building Insulation Products
In the specification and purchase of building insulation products:
1 The City shall make every effort to prefer, specify and purchase insulation products manufactured
from recovered or recycled materials for maintenance and repair operations, building construction
projects and work or projects which are let to private contractors; and
2. A decision not to purchase insulation products with the highest percentage of recovered material
content shall be based upon a determination that such products:
a. Are not available within a reasonable period of time;
b. Are not available at a reasonable price; and /or
c. Fail to meet reasonable performance standards set forth in applicable specifications.
E. Purchase of Recyclable Plastic Products
In the specifications and purchase of disposable food service products and bags:
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1. The City shall specify and utilize products, which are exclusively recyclable where available and
locally marketed. Preference shall be given to products manufactured from materials which are
readily recyclable with developed recycling markets and processes; and
F. Recycling /Reuse
The City shall also recycle or reuse materials and supplies of purchases as much as possible. Following
is a listing of some basic items which shall be recycled or reused: paper, cardboard, scrap metal, tires,
lubricants, and solvents, lead acid batteries, roadside brush and chipped wood waste, plastic materials,
and surplus property.
PCR 100.00 — INTERGOVERNMENTAL AGREEMENTS
100.010 RIGHT TO ENTER INTERGOVERNMENTAL AGREEMENTS
The City may as set forth in ORS 190.010, enter into a written agreement with any other unit or units of
local government for the performance of any or all functions and activities that a party to the agreement, its
department, offices, officers, agents, or employees, have authority to perform. The Intergovernmental
Agreement shall serve to define roles and responsibilities for each party.
Any agreement let by the City under this Section of the PCRs shall specify the functions or activities to be
performed and by what means they shall be performed. Information provided in the let Intergovernmental
Agreements shall include:
A. The agencies involved along with contact departments or divisions;
B. The functions or activities to be carried out, and by which party, during the terms of the agreement;
C. The payment and funding terms, if applicable;
D. The apportionment of fees or other revenue derived from the functions or activities under the
agreement, if applicable;
E. The duration terms of the agreement;
F. The rights of the parties to terminate the agreement;
All other provisions carried out in ORS 190.010 relating to Intergovernmental Agreements shall be followed
by the City.
100.020 APPLICABILITY OF INTERGOVERNMENTAL AGREEMENTS
The City shall require an Intergovernmental Agreement be let any time obligations between the City and a
unit or units of another local governmental agency exist. Exchange of funds does not need to occur for an
Intergovernmental Agreement to be required.
100.030 INTERGOVERNMENTAL AGREEMENT APPROVAL AUTHORITY
The Local Contract Review Board, serving in the role as the City's contracting agency, shall have, on behalf
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of the Tigard City Council, the right, and the sole right, to award the City's Intergovernmental Agreements.
Upon award of an Intergovernmental Agreement by the Local Contract Review Board either the Mayor or
City Manager shall be authorized to execute and sign the Agreement.
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ATTACHMENT 2
CITY OF TIGARD
LOCAL CONTRACT REVIEW BOARD RULES
The following Public Contracting Rules (PCR) have been adopted by the City Council acting as the
Local Contract Review Board pursuant to the authority granted to the Board by Tigard Municipal
Code Section 2.46. The rules apply to all contracting, purchasing, and disposing of personal
property by the City of Tigard but do not apply to acquisition, sale or other transfer of real property.
TABLE OF CONTENTS
10.000 COMPETITIVE PROCESS REQUIRED, EXEMPTIONS
10.010 Competitive Process, Exemptions, Definitions
10.015 Exemption of Contracts Under Certain Dollar Amounts
10.020 Contracts for Price Regulated Items
10.025 Library Periodicals
10.030 Advertising Contracts
10.035 Equipment Maintenance Repair and Overhaul
10.040 Purchases under Established Price Agreements
10.045 Gasoline, Diesel Fuel, Heating Oil, Lubricants and Asphalt
10.050 Investment Contracts
10.055 Insurance Contracts
10.060 Employee Benefit Insurance
10.065 Office Copier Purchases
10.070 Single Seller of Product
10.075 Contract Amendments (Including Change Orders and Extra Work)
10.080 Affirmative Action Contracts
10.085 Purchase Off Contract by Other Public Agencies
10.090 Oil or Hazardous Material Removal
10.095 Contracts with Qualified Non - profit Agencies
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10.100 Ammunition
10.105 Public Improvement Contracts Involving Design or Construction Management
10.110 Individual Exemptions
10.115 Class Exemptions
10.120 Justification of Public Improvement Contracts Awarded by Other Than Competitive
Bidding
15.000 PRICE AGREEMENTS
15.010 Price Agreements
20.000 BRAND NAMES OR MARKS
20.010 Specification of Particular Brand Names or Products
20.015 Copyrighted Materials
20.020 Single Manufacturer or Compatible Products
20.025 Product Pre - qualification
20.030 Brand Name or Mark Exemption
25.000 EMERGING SMALL BUSINESSES
25.010 Emerging Small Businesses
25.015 Authority to Require Contracting with Emerging Small Businesses
30.000 FORMAL COMPETITIVE PROCESSES
30.010 Definitions
30.015 Competition
30.020 Eligibility to Bid on Construction Contracts
30.025 Solicitation Documents
30.030 Bids and Proposals Are Offers
30.035 Public Notice
30.040 Bid or Proposal Preparation
30.045 Bidder Pre - qualification
30.050 Bidder Submissions
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30.055 Bid Security
30.060 Pre -Bid or Pre - Proposal Conferences
30.065 Addenda to Solicitation Documents
30.070 Pre - Opening Modification or Withdrawal of Bids of Proposals
30.075 Receipt, Opening, and Recording of Bids and Proposals
30.080 Late Bids, Proposals, Late Withdrawals, and Late Modifications
30.085 Mistakes
30.090 Time for Acceptance
30.095 Extension of Time for Acceptance of Bid
30.100 Evaluation and Award
30.105 Life Cycle Cost Analysis
30.110 Responsibility
30.115 Responsive and Non - responsive Bids or Proposals; Acceptance and Rejection
30.120 Low Tie Bids
30.125 Rejection of Individual Bids or Proposals
30.130 Rejection of All Bids or Proposals
30.135 Protests of Award
30.140 Other Protests
30.145 Negotiation
30.150 Bidder Disqualification
30.155 Cancellation of Invitations to Bid or Requests for Proposals
30.160 Disposition of Bids or Proposals If Bid Is Cancelled
30.165 Documentation of Award
30.170 Foreign Contractor
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30.175 Contract Terms and Conditions
30.180 Availability of Award Decisions - Contract Retention
30.185 Requests for Proposals
30.190 Performance and Payment Security
30.195 Right to Audit Records
30.200 Right to Inspect Plant
30.205 Contract Cancellation and Termination Procedures
40.000 PUBLIC IMPROVEMENT CONTRACTS
40.010 Application
40.015 Competitive Bidding
40.020 First Tier Subcontractor Notice
40.025 First Tier Subcontractor Disclosure
40.030 Bid Evaluation and Award
40.035 Contract Cancellation Procedures
40.040 Retainage
40.045 Progress Payments
40.050 Final Inspection
40.055 Final Estimate and Final Payment
40.060 Claims for Unpaid Labor or Supplies
40.065 Planning for Public Improvements
40.070 Prevailing Wage Laws
50.000 WAIVER OF SECURITY BID AND PERFORMANCE BOND
50.010 Bid Security Requirements
50.015 Contracts Under $10,000
50.020 Subcontracting to Emerging Small Businesses
4
60.000 PROPERTY DISPOSITION
60.010 Surplus Personal Property
60.015 Auction Sales of Personal Property
60.020 Sales of Personal Property
60.025 Liquidation Sales of Personal Property
60.030 Donations of Personal Property
60.035 Trade of Personal Property
70.000 PERSONAL SERVICES CONTRACTS
70.010 Personal Services Contracts
70.015 Screening and Selection Policy for Personal Services Contracts
70.020 Amendments
80.000 EMERGENCY CONTRACTS: SPECIFIC EXEMPTION REQUIREMENTS;
BOARD EXCEPTION; PROCEDURES; TEMPORARY EXCEPTIONS
80.010 Emergency Contracts
90.000 RECYCLABLE /RECYCLING PURCHASING GUIDELINES
90.010 Recycled Materials and Products Guidelines
90.015 Recycled Materials Preference
90.020 Recycled Materials and Products Purchasing Guidelines
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TIGARD LOCAL CONTRACT REVIEW BOARD
PUBLIC CONTRACTING RULES
PCR 10.000 - COMPETITIVE PROCESS REQUIRED, EXEMPTIONS
10.010 COMPETITIVE PROCESS, EXEMPTIONS AND DEFINITIONS
A. All public improvement contracts shall be based upon competitive bidding and all other public
contracts shall be based upon competitive bidding or competitive proposals (collectively "formal
competitive process "), except the following:
1. Contracts made with other public agencies. Contracts made with other public agencies are
not subject to these rules, except to the extent that the rules explicitly allow certain
transactions with other public agencies.
2. Contracts which are exclusively for personal services as determined by application of PCR
70.010. Such contracts may include incidental materials such as written reports, architectural
or engineering renderings, and similar supplemental materials.
3. Grants and contracts evidencing acceptance of donations by the City.
4. Contracts for professional or expert witnesses or consultants relating to existing or potential
litigation or other legal matters.
5. Transfers of real property or any interest in real property.
6. Energy savings performance contracts.
7. Contracts relating to bonds, certificates of participation, and similar debt repayment
obligations, or to program loans, or to public investments.
S. Employee benefit plans.
9. Contracts specifically exempt under the following rules:
10.015 Exemption of Contracts under Certain Dollar Amounts
10.020 Contracts for Price Regulated Items
10.025 Library Periodicals
10.030 Advertising Contracts
10.035 Equipment Maintenance Repair and Overhaul
10.040 Purchases under Established Price Agreements
10.045 Gasoline, Diesel Fuel, Heating Oil, Lubricants, and Asphalt
10.050 Investment Contracts
10.055 Insurance Contracts
10.060 Employee Benefit Insurance
10.065 Office Copier Purchases
10.070 Single Seller of Product
6
10.075 Contract Amendments (Including Change Orders and Extra Work)
10.080 Affirmative Action Contracts
10.085 Purchase Off Contract by Other Public Agencies
10.090 Oil or Hazardous Material Removal
10.095 Contracts with Qualified Non -profit Agencies
10.100 Ammunition
10.105 Public Improvement Contracts Involving Design or Construction Management
10.110 Individual Exemptions
10.115 Class Exemptions
80.010 Emergency Contracts
B. As used in this Section:
1. "Board" means the City of Tigard Local Contract Review Board.
2. "City" or "The City" means Tigard, Oregon.
3. Competitive bidding" means a competitive sealed bid procedure for awarding contracts
following the rules set forth in PCR 30.000.
4. "Competitive quotes" means the solicitation and receipt of offers by the City from
competing vendors, The solicitation may be by advertisement or by the City initiating a
request to vendors to make an offer. The solicitation and the offer may be written or oral.
5. "Invitation to Bid" means the solicitation of competitive bids in which price among those
bidders meeting specifications will be the predominant award criterion.
6. "Personal property" means everything subject to ownership which is not real property and
has exchangeable value.
7. "Price Agreement" means an agreement in which the vendor agrees to supply all goods or
services of a particular type ordered by the City within a specified time period at a specified
price and on terms specified in the price agreement.
8. "Public agency" means any federal, state or local government, or any department of any
federal, state or local government, including any local school or education City or any special
district.
9. "Request for Proposal" means the formal solicitation of competitive written proposals to be
used as a basis for making an acquisition or entering into contract when price will not be the
predominant award criterion, following the rules set forth in Section 30.010 to 30.205.
10. "Service" means work performed to meet a demand, especially work that is not connected
with manufacturing a product.
11. "Service contract" means a contract that calls primarily for a contractor's time and effort
rather than an end product.
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12. "Telecommunications Services" means the lease or rental of the use of voice and data
transmission facilities or services, or of central office services, but does not include
acquisition of switch or station equipment or acquisition or installation of wire and cable.
C. When a contract is exempt from a formal competitive process, the City shall use reasonable
efforts to ensure it is obtaining goods or services on the best terms (price, quality and other
terms). Those efforts shall normally include seeking out potential contractors and determining
price and availability by use of informal quotes or other similar methods. The City shall not
knowingly purchase goods or services if it knows that comparable goods or services are available
at lower cost on otherwise similar terms.
10.015 EXEMPTION OF CONTRACTS UNDER CERTAIN DOLLAR AMOUNTS
A. Public Contracts Other Than Public Improvements Contracts
The City may, in its discretion, enter into public contracts other than public improvements
contracts without a formal competitive process if the value of the contract does not exceed
$50,000. If this exemption is applied, the City must use either the small contract or intermediate
contract procedures set forth in Subsections C and D of this section. This exemption does not
authorize City employees or officials to enter into an agreement in excess of their dollar
authority to bind the City.
B. Public Improvements Contracts
The City may, in its discretion, enter into public improvement contracts without competitive
bidding if the value of the contract does not exceed $75,000 ($50,000 for a transportation public
improvement contract). If this exemption is applied, the City must use either the small contract
or intermediate contract procedures set forth in Subsections C and D of this section. This
exemption does not authorize City employees or officials to enter into an agreement in excess of
their dollar authority to bind the City.
C. Small Contract Procedures
When the amount of the contract does not exceed $5,000, the City may award the contract from
any source known to the City to provide goods or services of acceptable quality at competitive
prices. The City may not knowingly use a more expensive source if the goods or services of
equivalent quality are readily available from alternate sources on the same terms at lower prices.
D. Intermediate Contract Procedures
When the amount of the contract does not exceed $50,000, or $75,000 for a public improvement
contract or $50,000 for a transportation public improvement contract, the City may award the
contract after seeking at least three competitive quotes or proposals. The City shall keep a
written record of the source and amount of the quotes or proposals received. If three suppliers
are not available, a lesser number of actual quotes or proposals will suffice provided that a
written record is made of the effort to obtain the quotes or proposals.
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E. No Division or Fragmentation of Contracts
A procurement of goods and /or services may not be artificially divided or fragmented to allow
use of the small or intermediate contract procedures. However, each order of library materials
for the City library shall be considered a separate contract and may be made by using the small
contract or intermediate contract procedures if within the dollar amounts for those procedures.
F. Amendment of Small and Intermediate Contracts
A contract awarded under the small or intermediate contract procedures may not be amendment
if the amendment would result in a total contract price that exceeds the maximum amount for
the procedure used to award the original contract.
10.020 CONTRACTS FOR PRICE REGULATED ITEMS
The City may, without formal competitive process, contract for the purchase of the goods or
services where the rate or price for the goods or services being purchased is established by federal,
state, or local regulatory authority.
10.025 LIBRARY PERIODICALS
Purchases for the library of subscriptions for periodicals including journals, magazines, and similar
publications may be made without formal competitive process. However, this provision does not
authorize the use of a higher priced source if a lower price source of acceptable quality is known to
be available.
10.030 ADVERTISING CONTRACTS
The City may purchase advertising without formal competitive process.
10.035 EQUIPMENT MAINTENANCE, REPAIR, AND OVERHAUL
Contracts for equipment maintenance, repair, or overhaul may be let without a formal competitive
process, subject to the following conditions:
A. The services and /or parts required are unknown and the cost cannot be determined without
extensive preliminary dismantling or testing; or
B. The services and /or parts required are for sophisticated equipment for which specially trained
personnel are required and such personnel are available from only one source.
The City should, where possible, use a price agreement rather than relying on this exception.
10.040 PURCHASES UNDER ESTABLISHED PRICE AGREEMENTS
When the price of goods and services has been established by a price agreement entered into by a
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competitive process, the City may purchase goods and services from the supplier without a
subsequent competitive process.
10.045 GASOLINE, DIESEL FUEL, HEATING OIL, LUBRICANTS AND ASPHALT
The City may, without a competitive process, purchase gasoline, heating oil, lubricants, and asphalt
subject to the following:
A. Prior to selection of the contractor, the City gets quotes from at least three vendors in the area;
B. The City makes its purchase from the least expensive source of those providing quotes; and
C. The City retains written justification for the purchase made.
10.050 INVESTMENT CONTRACTS
The City may, without a formal competitive process, contract for the purpose of the investment of
public funds or the borrowing of funds by the City when such investment or borrowing is
contracted pursuant to duly enacted statute, ordinance, charter, or constitution.
10.055 INSURANCE CONTRACTS
Contracts for insurance where either the annual or aggregate premium exceeds $5,000 must be let by
a formal competitive process or by one of the following procedures:
A. Agent of Record.
The City may appoint a licensed insurance agent ( "agent of record ") to perform insurance
services in connection with more than one insurance contract. Among the services to be
provided is the securing of competitive proposals from insurance carriers for all coverages for
which the agent of record is given responsibility. Proposals for coverage are presented to the
City Manager or designee for approval:
1. Prior to the selection of an agent of record, the City shall make reasonable efforts to inform
known insurance agents in the competitive market area that it is considering such selection.
These efforts shall include a public advertisement in at least one newspaper of general
circulation in the area. The advertisement shall generally describe the nature of the insurance
that the City will require. If the amount of the annual premium for insurance other than
employee benefits insurance is likely to exceed $10,000 per year, such notice shall also
include a public advertisement in at least one insurance trade publication of general
circulation in the state.
2. An agent's appointment shall not exceed a period of 5 years, but the same agent(s) may be
selected in a subsequent period. Agents must qualify the appointments prior to each period
as if each appointment period were the first.
3. In selecting an agent of record, the City shall select the agent(s) most likely to perform the
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most cost effective services at a level of competence acceptable to the City.
B. Specific Proposals for Insurance Contracts.
The City may solicit proposals from licensed insurance agents for the purpose of acquiring
specific insurance contracts subject to the following conditions:
1. The City shall make reasonable efforts to inform known insurance agents in the competitive
market area of the subject matter of the contract and to solicit proposals for providing the
services required in connection with that contract. Such efforts shall include public
advertisements in at least one newspaper of general circulation in the area. If the amount of
annual premium for insurance other than employee benefits insurance is likely to exceed
$10,000 per year, such notice shall also include a public investment in at least one insurance
trade publication of general circulation in the state.
2. The City shall select an agent on the basis of the most competitive offer considering
coverage, premium cost, and service to be provided.
10.060 EMPLOYEE BENEFIT INSURANCE
The City may purchase employee benefit insurance without formal competitive process.
10.065 OFFICE COPIER PURCHASES
A. The City may enter into contracts for the purchase or lease of photocopiers without formal
competitive process.
B. In exercising this exemption, the City shall consider the operating capabilities, limitations, and
cost of each brand or model as well as cost and select the brand and vendor that will produce
the best combination of performance and cost per copy for each application.
10.070 SINGLE SELLER OF PRODUCT OR SERVICE
A. General
The City may purchase without a formal competitive process if there is only one seller of a
product or service of the quality required, or if the efficient utilization of existing equipment or
supplies requires specification of a compatible product for which there is only one seller, The
determination of a sole source must be based on written findings as required by ORS 279B.075.
A sole source contract may be awarded only after approval of the findings by the City Manager
or acting, interim or temporary City Manager. To the extent reasonably practical, the City shall
negotiate with single sellers to obtain the best possible contract terms for the City.
B. Telecommunications Services
The City may award a contract for telecommunications services without a formal competitive
process if it determines that no competition exists among services suppliers. In determining
whether competition exists, the City may consider the following factors:
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1. The extent to which alternative providers exist in the relevant geographic and service market.
The relevant market will vary from service category to service category and cannot be
predetermined in advance.
2. The extent to which alternative services offered are comparable or substitutable in
technology, service provided, and performance. For example, if the City's requirement is for
digital services, analog services are not comparable or substitutable.
3. The extent to which alternative providers can respond to the City's interests in consistency
and continuity of services throughout its service area, volume discounts, and centralized
management. The City must document for the record its findings on these factors or any
other factors used in determining whether competition exists. In developing its findings, the
City may solicit information by any means, including informal discussions or correspondence
or through a formal Request for Information.
C. Developer Provision of Public Improvements
At times, private developers provide public improvements for the City as required by a
condition of land use approval or as required by a development agreement with the City. The
developer in those circumstances is conclusively deemed to be a sole source for the provision of
the public improvements, without the need for findings. No competitive process is required to
enter into a development agreement that includes the provision of public services by a developer
or for a developer to provide and the City to accept public improvements as required by a
condition of approval.
10.075 CONTRACT AMENDMENTS (INCLUDING CHANGE ORDERS AND EXTRA WORK)
A contract amendment for additional work including change orders, extra work, field orders, or
other change in the original specifications which increases the original contract price, may be made
with the contractor without a formal competitive process subject to the following conditions:
A. The original contract was let by formal competitive process, and the contract documents
included unit prices or bid alternates were provided that provide a basis for determining the cost
for additional work, and a binding obligation exists on the parties covering the terms and
conditions of the additional work; or
B. The amount of the aggregate cost increase resulting from all amendments does not exceed 25%
of the initial contract. Amendments made pursuant to Section A of this rule are not included in
computing the aggregate amount under this section. The LCRB may, at its sole discretion,
approve amendments exceeding the 25% aggregate total if the Board finds it to be in the public's
best interest to do so.
10.080 AFFIRMATIVE ACTION CONTRACTS
A. Public contracts may be awarded without a formal competitive process pursuant to a specific
Affirmative Action plan. Affirmative Action is a program designed to insure equal opportunity
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in employment and business for persons otherwise disadvantaged by reason of race, color,
religion, sex, national origin, age, or physical or mental handicap, including but not limited to,
personnel practices of contractors, "set- aside" programs, and minority business enterprises.
These rules shall not be construed to prohibit engaging in practices designed to promote
affirmative action goals and policies.
B. In carrying out the affirmative action policy, by appropriate ordinance, resolution or
administrative rule, the City may limit competitive bidding on a public contract for procurement
of goods and services or on any public contract estimated to cost $50,000 or less to contracting
entities owned or controlled by persons described in Subsection A of this section.
10.085 PURCHASE OFF CONTRACT BY OTHER PUBLIC AGENCIES
A. The City may purchase any good or service without a formal competitive process if the good or
service is purchased from a bidder that has been awarded a contract for the same good or
service, whether by a requirements contract or by individual contract by another public agency
through its public contract purchasing procedures if:
1. The original contract was awarded by a competitive bid or proposal process or pursuant to
an exemption equivalent to an exemption provided by these rules.
2. The contract allows other public agency usage of the contract. A contract that does not
prohibit other public agency usage of the contract shall be deemed to allow other public
agency use, unless the agency that awarded the contract objects to the use.
3. The purchase is on the same terms, or terms which are no less favorable to the City in all
material respects, as the contract awarded by the public agency.
B. A purchase under the Oregon Cooperative Purchasing Program or any similar federal or regional
program, including the Electronic Government Act of 2002 (10 USC 381) shall be considered an
exempt purchase under this exemption.
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10.090 OIL OR HAZARDOUS MATERIAL REMOVAL
A. The City may enter into public contracts without a formal competitive process when ordered to
clean up oil or hazardous waste pursuant to the authority granted the Department of
Environmental Quality (DEQ) under ORS Chapter 466, especially ORS 466.605 through
466.680, and this order necessitates the prompt establishment and performance of the contract
in order to comply with the statutes regarding spill or release of oil or hazardous material that
has created an emergency condition. in exercising its authority under this exemption, the City
shall:
1. To the extent reasonable under the circumstances, encourage competition by attempting to
make informal solicitations or to obtain informal quotes from potential suppliers of goods or
services.
2. Make written findings describing the circumstances requiring cleanup or a copy of the DEQ
order ordering such cleanup.
3. Record the measures taken under Subsection 1 of this section to encourage competition, the
amount of the quotes or proposals obtained, if any, and the reason for selection the
contractor selected.
B. The City shall not contract pursuant to this exemption in the absence of an order from DEQ to
clean up a site with a time limitation that would not permit hiring a contractor under the usual
formal competitive process procedures.
10.095 CONTRACTS WITH QUALIFIED NON - PROFIT AGENCIES
The City may enter into contracts with qualified non - profit agencies providing employment for
disabled individuals under ORS 279.835 to 279.855 without a competitive process. The City shall
contract with such agencies when required by law. To the extent competition exists among qualified
non - profit agencies, the City shall select the qualified non -profit agency offering the lowest price for
an acceptable level of service.
10.100 AMMUNITION
The City may enter into contracts for the purchase of lethal and non - lethal ammunition, both for
service and for training, without a formal competitive process.
10.105 PUBLIC IMPROVEMENT CONTRACTS INVOLVING DESIGN OR CONSTRUCTION
MANAGEMENT
The City may enter into public improvement contracts without competitive bidding if the contracts
involve design or construction management or require expertise beyond normal construction work.
Unless exempt under some other exemption, a competitive proposal process must be used. One of
the following specific processes shall be
followed:
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A. Construction Manager /General Contractor
The City may select a person or firm to act as a Construction Manager /General Contractor
(CM /GC) to construct public improvements by means of a competitive proposal process.
1. A CM /GC performs specified Construction Manager services in addition to traditional
General Contractor services. A CM /GC contract shall require full performance within a
negotiated Guaranteed Maximum Price (GMP). The basis for payment shall be reimbursable
direct costs plus a fee constituting full payment for work and services rendered, which
together shall not exceed the GMP.
2. The solicitation documents shall include:
a. A description of the evaluation process and criteria. The criteria may include cost,
quality, experience, availability, commitment to timely completion, and other factors.
b. The process to be followed for establishing the guaranteed maximum price.
c. A description of the circumstances under which any of the following activities may be
authorized and undertaken for compensation prior to establishing the GMP, but only
after unit prices are established:
1. Early procurement of materials and supplies;
2. Early release of bid packages for such things as site development; and
3. Other advance work related to critical components of the project.
3. The contract documents shall include:
a. A description of the method by which the CM /GC shall competitively select contractors
and subcontractors.
b. Either the maximum guaranteed price or a process for establishing a guaranteed
maximum price.
c. A description of the situations in which the CM /GC may perform the work of the
improvement without subcontracting, including any requirement that the CM /GC
compete with others to do the work and the work that the CM /GC may perform
directly without a competitive process.
d. The standards or factors under which changes or additional work that warrants an
increase in the GMP, as well as criteria for decreasing the GMP. The GMP shall not be
increased without a concomitant increase to the scope of the GMP.
e. The disposition of any cost savings resulting from completion of the work below the
GMP, including the CM /GC share, if any, in those cost savings. Normally, the cost
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savings should accrue to the City.
f. The items or categories of items are eligible for cost reimbursement within the GMP.
g. A provision for a final audit adjustment and process.
h. A fee that is inclusive of profit, overhead and all other indirect or non - reimbursable
costs. Costs determined to be included within the fee should be expressly defined
wherever possible. The fee, first expressed as a proposed percentage of all reimbursable
costs, shall be identified during and become an element of the selection process. It shall
subsequently be expressed as a fixed amount when the GMP is established.
i. Any economic incentives, the specific criteria that apply and their relationship to other
financial elements of the Contract (including the GMP).
B. Design -Build Contracts
1. A design -build contract is one in which a single entity designs and constructs a public
improvement. Design -build contracts shall only be used if City staff has the expertise and
experience to administer a design -build contract. The design -build process may be used to:
a. Obtain through a Design -Build team, engineering design, plan preparation, value
engineering, construction engineering, construction, quality control and required
documentation as a fully integrated function with a single point of responsibility;
b. Integrate value engineering suggestions into the design phase, as the construction
contractor joins the project team early with design responsibilities under a team
approach, with the potential of reducing contract changes;
c. Reduce the risk of design flaws, misunderstandings and conflicts inherent in
construction contractors building from designs in which they have had no opportunity
for input, with the potential of reducing contract claims;
d. Shorten project time as construction activity (early submittals, mobilization,
subcontracting and advance work) commences prior to completion of a "biddable"
design, or where a design solution is still required (as in complex or phased projects); or
e. Obtain innovative design solutions through the collaboration of the contractor and
design team, which would not otherwise be possible if the contractor had not yet been
selected.
2. If a design -build contractor is not an Oregon licensed design professional, the design -build
contractor shall disclose in its proposal that it is not an Oregon licensed design professional
and identify the Oregon licensed design professional(s) who will provide design services.
3. A design -build contractor awarded a contract shall provide additional security as required by
ORS 279C.380(1)(a). The obligation is not intended to be a substitute for professional
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liability insurance, and does not include errors and omissions or latent defects coverage.
4. The level or type of design services required must be clearly defined within the solicitation
documents and contract, along with a description of the level or type of any design services
previously performed for the project. The services to be performed shall be clearly
delineated as either design specifications or performance standards.
5. The contract shall clearly identify the liability of design professionals, shall include
requirements for professional liability insurance, and shall clearly identify the extent of any
indemnity or warranty.
C. Other Public Improvement Contracts Where Quality Is An Issue
In many situations, including those projects that require a higher than normal level of expertise
or skill, quality of the final product may be important beyond meeting minimum specifications.
In those situations, the City may use a request for proposal process, provided that the cost factor
constitutes at least 75% percent of the total evaluation score, In scoring the cost factor, the
proposer submitting the lowest cost amount shall receive the maximum possible score for the
cost factor, and the scores of the other proposers shall be reduced by the percentage by which
their cost exceeded the lowest cost. For example, if the maximum score for the cost factor is 80,
the lowest cost proposer would get a score of 80. A proposer with a cost that is 10 percent
higher would have the score reduced by 10 percent (8 points), to 72.
10.110 INDIVIDUAL EXEMPTIONS
A. The City may exempt a particular contract or contracts from formal competitive process
requirements which are not otherwise exempted under these rules. The City shall prepare an
application for an individual exemption containing the following information:
1. The nature of the project;
2. Estimated cost of the project;
3. A narrative description of the cost savings anticipated by the exemption from the formal
competitive process and the reasons the formal competitive process would be inappropriate;
4. Proposed alternative contracting and purchasing practices to be employed; and
5. The estimated date by which it would be necessary to let the contract.
B. The Board may require such additional information as it deems necessary to determine whether
a specific contract is to be exempt from the formal competitive process.
C. The Board shall hold a public hearing and adopt findings justifying the individual exemption.
The findings shall at a minimum address include the findings required by ORS 279B.085(3) for
contracts other than public improvements or ORS 279C.335 for public improvement contracts.
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D. Notification of the public hearing shall be published in a newspaper of general circulation in the
City a minimum of 14 days prior to the hearing. Notification shall be published in a trade
newspaper of general circulation in the state if required by the Public Contracting Code.
E. The notice shall state that the public hearing is for the purpose of taking comments on the City's
draft findings for an exemption from the formal competitive process requirement. At the time
of the notice, copies of the draft findings shall be made available to the public. At the option of
the City, the notice may describe the process by which the findings are finally adopted and may
indicate the opportunity for any further public comment.
F. At the public hearing, the City shall offer an opportunity for any interested party to appear and
present comment.
G. If the City is required to act promptly due to circumstances beyond its control0 that do not
constitute an emergency, notification of the public hearing can be published simultaneously with
the City's solicitation of contractors for the alternative public contracting method, as long as
responses to the solicitation are due at least five days after the meeting and approval of the
findings.
10.115 CLASS EXEMPTIONS
A. The Board may exempt certain public contracts or classes of public contracts from the formal
competitive process requirements by amending these rules upon approval of the following
findings:
1. It is unlikely that such exemption will encourage favoritism in the awarding of public
contracts or substantially diminish competition for public contracts;
2. The awarding of public contracts pursuant to the exemption will result in substantial cost
savings to the City. In making such findings, the Board may consider the type, cost, amount
of the contract, number of persons available to bid, and such other factors as may be
deemed appropriate; and
3. The exemption otherwise substantially supports the public interest in a way that could not be
achieved under existing rules.
B. The Board shall adopt a class exemption only after a duly noticed public hearing. ruling. The
notice of the hearing shall be posted in full public view in the City Hall and published in a
newspaper of general circulation at least 14 days prior to the hearing. If the exemption involves a
public improvement, the notice shall also be published in a trade publication of statewide
circulation.
10.120 JUSTIFICATION OF PUBLIC IMPROVEMENT CONTRACTS AWARDED OTHER
THAN BY COMPETITIVE BIDDING
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Upon completion of and final payment for any public improvement contract in excess of $100,000
for which the City did not use the competitive bidding process, the City shall prepare and deliver to
the Local Contract Review Board an evaluation of the public improvement project. The evaluation
shall include but not be limited to:
A. The actual project cost as compared with original project estimates.
B. The amount of any guaranteed maximum price.
C. The number of project change orders issued.
D. A narrative description of successes and failures during the design, engineering and construction
of the project.
E. An objective assessment of the use of the alternative contracting process as compared to the
findings required by ORS 279C.335.
Evaluations required by this section shall be made available for public inspection and shall be
completed within 30 days of acceptance of the project.
PCR 15.000 - PRICE AGREEMENTS
15.010 PRICE AGREEMENTS
The City may enter into price agreements providing the following conditions are met:
A. The contract is awarded by a formal competitive process.
B. The term of the contract including renewals does not exceed 5 years.
15.015 MULTIPLE PRICE AGREEMENTS PERMITTED
The City may enter into price agreements with more than one supplier for the same goods or
services.
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PCR 20.000 - BRAND NAMES OR MARKS
20.010 SPECIFICATION OF PARTICULAR BRAND NAMES OR PRODUCTS
A. Specifications for public contracts shall not expressly or implicitly require any product of any
particular manufacturer or seller except pursuant to an exemption under PCR 20.015
(Copyrighted Materials), 20.020 (Single Manufacturer or Compatible Products), 20.025 (Product
Pre - qualification), or 20.030 (Brand Name or Mark Exemption Applications).
B. If there is no other practical method of specification, the City may designate a particular brand
name, make or product "or equal ", but this practice should be avoided whenever possible.
20.015 COPYRIGHTED MATERIALS
The City may specify a specific copyrighted product. This exemption does not include patented or
trade mark goods.
20.020 SINGLE MANUFACTURER OR COMPATIBLE PRODUCTS
A. If there is only one manufacturer or seller of a product of the quality required, or if the required
product is data processing equipment which will be used for research where there are
requirements for exchange of software and data with other research establishments, or if the
efficient utilization of the existing equipment or supplies requires a compatible product of a
particular manufacturer or seller, the City may specify such particular product subject to the
following conditions:
1. The product is selected on the basis of the most competitive offer considering quality and
cost. The term "cost" includes not only the product price, but also other items of expense
such as costs related to quality of conversion.
2. Prior to awarding the contract, the City has made reasonable effort to notify known vendors
of competing or comparable products of the intended specifications and invited such
vendors to submit competing proposals.
3. If the purchase does not exceed $50,000, such notice and invitation may be informal.
4. If the amount of the purchase exceeds $50,000, such notice shall include advertisement in at
least one newspaper of general circulation in the area where the contract is to be performed
and shall be timely to allow competing vendors a reasonable opportunity to make proposals.
B. If the amount of the purchase exceeds $50,000, the City shall document its actions in the bid
file. Such documentation shall include:
1. A brief description of the proposed contract or contracts.
2. A detailed description of the reasons why the product and /or seller was selected and any
competing products and /or sellers that were rejected. The description shall also include the
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efforts taken by the City to notify and invite proposals from competing vendors.
C. If the City intends to make several purchases of the product of a particular manufacturer or
seller for a period not to exceed 2 years, it may so state in the documentation required by
subsection (1)(b) and (2) of this rule, and such documentation shall be sufficient notice as to
subsequent purchases.
20.025 PRODUCT PRE - QUALIFICATION
A. When it is impractical to create specific design or performance specification for a type of
product to be purchased, the City may specify a list of approved products by reference to
particular manufacturers or sellers according to the following product pre - qualification
procedure:
1. The City has made reasonable efforts to notify known manufacturers or vendors of
competitive products of its intention to accept applications for inclusion in its list of pre -
qualified products. Notification shall include advertisement in a trade journal of statewide
distribution when possible. In lieu of advertising, the City may notify vendors and
manufacturers appearing on the appropriate list maintained by the Department of General
Services of the State of Oregon.
2. The City permits application for pre - qualification of similar products up to 15 days prior to
advertisement for bids on the product.
B. If an application for inclusion in a list of pre - qualified products is denied, or an existing pre-
qualification revoked, the City shall notify the applicant in writing. The applicant may appeal to
the Board for a review of the denial or revocation in the same manner as an appeal of
disqualification or denial provided in PCR 30.150.
20.030 BRAND NAME OR MARK EXEMPTION
A. The City may apply for and receive a brand name or mark exemption ruling from the Board for
current and contemplated future purchases. Applications shall contain the following
information:
1. A brief description of the contract or contracts to be covered. The description should
include contemplated future purchases.
2. The brand name, mark or product to be specified.
3. The reasons the City is seeking the exemption.
B. The Board may grant brand name or mark exemptions only if either of the following conditions
are met:
1. The exemption is not likely to encourage favoritism in public contracts or substantially
diminish competition and will result in cost savings.
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2. There is only one manufacturer or seller of the product of the quality required, or efficient
utilization of existing equipment or supplies requires acquisition of compatible equipment or
supplies.
PCR 25.000 - EMERGING SMALL BUSINESSES
25.010 EMERGING SMALL BUSINESSES
It is the policy of the City to provide opportunities for available contracts to emerging small business
and to cooperate with the State or Oregon Advocate for Minority, Women and Emerging Small
Business to determine the best means by which to make such opportunities available.
25.015 AUTHORITY TO REQUIRE SUBCONTRACTING WITH EMERGING SMALL
BUSINESSES
The City may, in solicitation documents, require that some portion of the work to be performed or
some portion of the materials to be provided be provided by a certified emerging small business and
establish other requirements authorized by ORS 279A.105.
PCR 30.000 - FORMAL COMPETITIVE PROCESSES
30.010 DEFINITIONS
For purposes of this chapter, the following definitions apply:
A. "Addenda to the Bid Documents" means additions or changes to the bid documents defined as
addenda shall be labeled as such and distributed according to these rules.
B. "Bid" means an offer submitted in response to an invitation to bid.
C. "Bid Closing" means the date and time announced as the deadline for the receipt of bids.
D. `Bid Opening" means the date, time and place set for opening of bids.
E. "Bid Sample" means a representative specimen of the item that will be available in response to
the bid.
F. `Bidder" is a person who submits a bid in response to the City's invitation to bid.
G. "Bidding Period" means the span of time between the date of the invitation to bid and the time
and date set for receipt of bids. A minimum of 14 calendar days shall be provided, unless a
shorter time is deemed necessary in the public interest for a particular procurement.
H. "Contract" means the written agreement, including the City's solicitation document and the
accepted portions of a bid or proposal, between the City and the contractor describing the work
to be done and the obligations of the parties. Depending upon the goods and services being
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procured, the City may use "contract" as meaning a purchase order, price agreement, or other
contract document in addition to the City's solicitation document and the accepted portions of a
bid or proposal. If the contract is for a public improvement, the "contract" may consist of the
City's solicitation document, including any addenda, the general and special conditions
governing the work, the accepted portions of the bid or proposal, the performance and payment
bond (if required), plans, technical specifications, approved show drawings, and any contract
amendments, including approved change orders.
I. "Contract Price" means the total of the awarded bid or proposal amount, including any
approved alternates and any fully executed change orders or amendments.
J. "Contract Release Order" means the document authorizing an additional purchase on an
existing requirement contract.
K. "Contractor" means the individual, firm, or corporation awarded the public contract to furnish
the City the goods, services, or work procured in the City's solicitation.
L. "Descriptive Literature" means materials submitted by prospective vendors to provide
information concerning the products available in response to the bid.
M. "Facsimile" or "fax" means the electronic equipment that communicates and reproduces both
printed and handwritten material. If used in conjunction with a reference to a document; i.e.,
facsimile bid, the term refers to a document (in the example given, a bid) that has been
transmitted to and received by the City via facsimile.
N. "Lowest Responsible Bidder" means the lowest bidder who has substantially complied with all
prescribed public bidding procedures and requirements and who has not been disqualified by the
public contracting agency under ORS 279.037(ORS 279.029(1)).
O. "Proposer" is a person who submits a proposal in response to the City's Request for Proposals.
P. "Solicitation Document" means an Invitation to Bid or Request for Proposals which included all
documents, whether attached or incorporated by reference, utilized for soliciting bids or
proposals.
Q. "Specifications" means any description of the physical or functional characteristics or of the
nature of a supply, service, or construction item. Specifications may include a description of any
requirement for inspecting, testing, or preparing a supply, service, or construction item for
delivery and the quantities or qualities of materials to be furnished under the contract.
Specifications generally will state the result to be obtained and may, on occasion, describe the
method and manner of doing the work to be performed. Specifications may be incorporated by
reference and /or through attachment to the contract.
30.010 COMPETITION
A. Contracts issued by the City shall be awarded by formal competitive process except as otherwise
exempted under the Oregon Public Contracting Code or these rules.
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B. It is the policy of the City to encourage public contracting competition that supports openness
and impartiality in the maximum extent possible.
C. The City finds that:
L Competition exists not only in prices, but in the technical competence of suppliers, in their
ability to make timely deliveries, and in the quality and performance of their products and
services and that a balance must exist between performance competition and price
competition.
2. The nature of effective competition varies with the product or service being procured and,
that while competitive sealed bids are a common method of procurement, it is not always
the most advantageous, practical or cost - effective method of source selection. The cost of
the selection process must be considered — a costly selection process is not appropriate for
contracts with a low dollar value.
3. Meaningful competition can be achieved through a variety of methods when procuring
products or services. The methods include but are not limited to:
a. Price competition as represented by the initial or acquisition price;
b. Competition as represented by price and performance evaluations of the competing
items and suppliers;
c. Competition as represented by the evaluation of the capabilities of bidders or proposers
to perform needed services;
d. Competition as represented by evaluation of the capabilities of the bidders and
proposers to perform the services followed by a negotiation on price;
e. Competition as represented by another method of procurement that is reasonably
calculated to satisfy the City's needs.
D. All public contracts shall be made under conditions that foster or reflect competition among a
sufficient number of potential suppliers that offer a wide spectrum of products and services and
that represent a broad marketplace. Fostering competition shall be reflected in:
1. Writing specifications and procurement documents in a simple and easy to read format;
2. Searching for new sources of supply;
3. Attempting to make solicitation documents simple and inviting;
4. Everyday courtesy shown to prospective suppliers and contractors; and
5. The way information on contracting opportunities is provided to suppliers including but not
24
limited to advertisement in publications of general circulation or in trade publications and
any other reasonable methods that encourage competition.
E. The City may evaluate every aspect of competition in its efforts to purchase products or services,
choose the appropriate solicitation process, or award contracts according to the criteria
described herein and arrive at offers that represent optimal value to the City.
30.020 ELIGIBILITY TO BID ON CONSTRUCTION CONTRACTS
A person shall not submit a bid or proposal to work as a construction contractor unless that person
is first registered with the Construction Contractors Board or licensed by the State Landscape
Contractor's Board as required by ORS 671.530. Bids from persons who fail to comply with this
requirement shall be deemed non - responsive and be rejected.
30.025 SOLICITATION DOCUMENTS
Solicitation documents shall include the following:
A. Instructions and information to bidders or proposers concerning the submission requirements,
including the time and date set for opening, the name, address and title of the person designated
to receive bids and a contact person, if different, a statement the bid or proposal must be
physically received by the City by the deadline and any other special information relating to bid
submission. The bid deadline shall be at least seven days after the first publication of notice and
5 days after the last publication of notice.
B. The date that pre - qualification applications must be filed if pre - qualification is a requirement.
C. The character of the work to be done or the items to be purchased, including, as applicable:
specifications, delivery or performance schedule, inspection and acceptance requirements, and
special evaluation factors;
D. The office where any additional information, including additional specifications, may be
reviewed or obtained;
E. For bids — the contract terms and conditions, including warranty and bonding or other security
requirements, as applicable. For proposals, a list of contract terms required by the City, a list of
additional issues to be included in the contract, and a list of issues for which the proposer is
expected to propose contract terms.
F. That the solicitation may be cancelled or that any or all bids may be rejected for not complying
with all prescribed procedures and requirements;
G. That any and all bids may be rejected for good cause on a finding that it is in the public interest
to do so;
H. In invitations to bid, a statement whether the bidders is a resident bidder;
25
I. That a contractor must be licensed for asbestos abatement under ORS 468A.710, if applicable;
J. That no bid or proposal for construction shall be received or considered by the City unless the
bidder or proposer is registered with the Construction Contractors Board, as required by ORS
Chapter 701 or licensed by the State Landscape Contractors Board, as required by ORS 671.530;
K. If bid or proposal security is required, a description of the security required;
L. A description of any performance and payment bonding requirements;
M. For proposals, a description of the manner in which proposals will be evaluated and the relevant
value of each evaluation factor, including price. If a multi -tierd process is used, that process will
be described, including the process for protesting the decision at any stage of the process;
N. If applicable, a statement that no bid will be considered unless the bid contains a statement that
the bidder will comply with ORS 279C.840 or 40 USC 276a; and
O. All addenda issued by the City.
30.030 BIDS AND PROPOSALS ARE OFFERS
A. Bids and proposals constitute an offer to enter into a contract which, if accepted by the City,
shall bind the bidder or proposer to a contract unless the bid or proposal is withdrawn prior to
opening.
B. The bid or proposal shall constitute a "firm offer" unless bidders or proposers are specifically
authorized to take exceptions or to leave terms open to negotiation by the invitation to bid or
request for proposals. However, nothing in this provision prohibits the City from negotiating
with a bidder or proposer to the full extent allowed by state law. Unless expressly authorized by
the solicitation documents or these rules, bidders or proposers shall not make their bids or
proposals contingent upon the City's acceptance of specifications or contractual terms that
conflict with or are in addition to those advertised in the solicitation documents.
30.035 PUBLIC NOTICE
A. Distribution
Solicitation documents or notices of the availability of bid documents shall be mailed to likely
bidders and proposers, placed on the Oregon Department of Administrative Service's electronic
procurement system known as the "Vendor Information Program," or otherwise furnished to a
sufficient number of bidders or proposers for the purpose of securing competitive bids or
proposals. Notice of availability shall indicate where, when, and for how long the bid /proposal
documents may be obtained. The City many charge a fee for the bid documents.
B. Advertising
1. Every formal solicitation of bids or proposals shall be advertised. An advertisement for bids
26
or proposals shall be published at least once in at least one newspaper of general circulation
in the City and in as many additional issues and publications as the City may determine to be
necessary or desirable to ensure competition. If for a construction contract in excess of
$75,000 ($50,000 for a transportation public improvement contract), notice shall be
published in at least one trade newspaper of general statewide circulation. The City shall
endeavor to provide information concerning bids and proposals on its website and may post
information on other databases.
2. All advertisements for bids or proposals shall state:
a. The date and time after which bids will not be received, which date shall not be less than
five (5) days after the date of the last publication of the advertisement;
b. The date that pre - qualification applications must be filed if pre - qualification is a
requirement;
c. The work to be done or the items to be purchased;
d. The office where additional documentation, including specifications, specifications may
be reviewed or obtained;
e. The name, title, and address of the person designated to receive bids;
f. The date, time, and place that bids or proposals will be opened;
g. If for a public improvement, whether the prevailing wage provisions of ORS 279C.800
to 279C.870 or the Davis -Bacon Act (40 USC 276a) apply.
C. Posting of bid or proposal advertisement
A copy of each bid or proposal advertisement shall be posted at the business office of the City.
Bidders or proposers may obtain a copy upon request.
30.040 BID OR PROPOSAL PREPARATION
Bid and Proposal Preparation Instructions:
A. Except as otherwise allowed, as applicable, bids and proposals shall be typed or prepared in ink
and shall be signed in ink by the submitter or an authorized representative. The City will not
accept facsimile bids or signatures.
B. Bids and proposals shall be made on the bid forms provided unless otherwise instructed in the
solicitation document.
C. Alterations or erasures, if any, shall be initialed in ink by the person signing the bid.
D. Bids and proposals shall include all required documents and descriptive literature.
27
30.045 BIDDER PRE - QUALIFICATION
The City may require mandatory pre - qualification of bidders on forms prescribed in the bid
document. When pre - qualification is required by the bid documents as a condition for bidding, the
City shall not consider the bid(s) of any prospective bidder who is not pre - qualified. The City shall
determine qualifications within 30 days of receipt of an application for prequalification. In
determining responsibility of the applicant, the City shall consider only the criteria listed in ORS
279B.110(2). City may have a separate pre - qualification process.
If a bidder is currently pre - qualified by either the State Department of Transportation or the State
Department of Administrative Services to perform contracts, the bidder shall be presumed qualified
to perform similar work for the City.
30.050 BIDDER SUBMISSIONS
A. Samples and Descriptive Literature
Samples or descriptive literature may be required when it is necessary to evaluate required
characteristics of an item. Samples may be returned in accordance with provisions contained in
the bid documents.
B. Identification of Bids and Proposals
Bids and proposals shall be submitted in a sealed envelope appropriately marked to ensure
proper identification and special handling. The City shall not be responsible for the proper
identification and handling of any bid not submitted in the designated manner or format to the
required delivery point. The City may refuse to accept or may reject any bid or proposal not
properly sealed or marked.
C. Receipt of Bid or Proposal
It is the submitter's responsibility to ensure that bids or proposals are received by the City at
the required delivery point prior to the stated bid or proposal closing time regardless of the
method used to submit or transmit them.
30.055 BID SECURITY
A. Public Improvement Contracts
Bid security not to exceed 10 percent of the base bid(s) shall be required for public improvement
contracts where the amount of the contract exceeds $10,000. The bid security shall be forfeited
if the bidder fails to execute the contract promptly and properly if awarded.
B. Other Public Contracts
Bid security not to exceed 10 percent of the bid may be required by the City for other contracts
28
in order to guarantee acceptance of the award. This requirement shall be stated in the bid
documents.
C. Contracts Under $10.000
Bid security for contracts of less that $10,000 shall be required only in critical circumstances so
as not to discourage competition.
D. Form of Bid Security
The following forms of bid security will be accepted by the City:
1. Surety bond from surety company authorized to do business in the State of Oregon;
2. Cashier's check, certified check, or savings and loan secured check; or
3. Annual surety bond filed with the City (except for public improvement contracts).
E. Return of Bid Security
The bid security of all unsuccessful bidders shall be returned after a contract has been executed
or all bids have been rejected. The City may return the bid security of unsuccessful bidders after
bid opening but prior to award if the return does not prejudice bid award and provided that the
security of at least the three lowest bidders is retained pending the execution of a contract.
F. Security for Proposals
If contracts are to be awarded based on competitive proposals, the City may, in its discretion,
require proposal security on the same terms as the bid security described in this section.
Proposal security shall normally be required for any public improvement contract to be awarded
by a proposal process.
30.060 PRE -BID OR PRE- PROPOSAL CONFERENCES
Pre -bid or pre - proposal conferences may be held by the City to explain the City's requirements,
conduct site inspections, or otherwise supplement or clarify information. The City may require
attendance at the conference as a condition for bidding or submitting a proposal. The conferences
shall be announced in the solicitation documents. The conference shall be held within a reasonable
time after the solicitation documents have been issued but sufficiently before bid closing to allow
consideration of the conference results in preparing submittals. Statements at the conference shall
not change the solicitation documents unless confirmed to all prospective bidders or proposers by
means of a written addendum to the solicitation documents.
30.065 ADDENDA TO SOLICITATION DOCUMENTS
A. Form
29
Changes to solicitation documents shall be accomplished by addenda. The bidder or proposer
shall acknowledge receipt of all addenda issued, either with the bid or proposal or separately
prior to opening. A solicitation may be delayed or suspended by addendum if in the best
interest of the City.
B. Distribution
Addenda shall be sent to all prospective bidders or proposers known to have obtained the
solicitation documents or attended any mandatory conferences.
C. Timeliness
1. Addenda shall be issued within a reasonable time prior to bid closing to allow consideration
prior to submittal of the bid or proposal, but in no case less than 72 hours before the
submittal deadline. If necessary, the City may notify prospective bidders or proposers by
telegram, telephonic facsimile (fax), e -mail, or telephone. If telephone is used, the City shall
confirm the oral notice with a written addendum.
2. In its discretion, the City may extend the closing date and time to allow prospective bidders
or proposers to analyze and adjust to changes made by Addenda. The City shall notify
prospective bidders or proposers of new closing date and time either in the Addendum or in
writing accompanying the Addendum.
D. Addenda to Multi -Tier RFPs
If a multi -tier process is used to evaluate proposals, the City may issue addenda applicable to any
tier of the process at least 5 days before starting that tier of the process. If the City does issue
such addenda, amended or supplemental proposals may be submitted before the next tier of the
process is started.
30.070 PRE- OPENING MODIFICATION OR WITHDRAWAL OF BIDS OR PROPOSALS
A. Modifications
Bids or proposals once submitted may be modified in writing prior to the time and date set for
bid closing. Any modifications shall be prepared on the company letterhead, signed by an
authorized officer, and state that the new document supersedes or modifies the prior bid or
proposal. To ensure the integrity of the process, the envelope containing any modifications to a
bid or proposal shall be marked as follows:
Bid (or Proposal) Modification
Bid Number or Other Identification
B. Withdrawals
L Bids or proposals may be withdrawn by written notification on company letterhead signed
by an authorized person and received prior to the time and date set for closing. Bids or
30
f 5 p/1 /e men Z'cc-r
/ -?/
"1-y item
CITY OF TIGARD -Lpormatted: Font: 12 pt
- LOCAL CONTRACT REVIEW BOARD-RULES. ' Formatted: Left: 0.75 ", Right: 0.75 ", Top:
PI JBLIC CONTRACTING RI ILF,$ 0.75 ", Bottom: 0.75"
Formatted: Font: 12 pt
Formatted: Font: 12 pt, Underline
The following Public Contracting Rules (P PCRs) have been adopted by the City Council acting as the Formatted: Font: 12 pt
Local Contract Review Board pursuant to the authority granted to the Board by Tigard Municipal Code
Section 2.46. The rules apply to all contracting, purchasing, and disposing of personal property by the City
of Tigard but do not apply to acquisition, sale or other transfer of real property.
Formatted: Left
TABLE OF CO NTENT S ,, , Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.000 COMPETITIVE PROCESS REQUIRED, EXEMPTIONS . Formatted: Indent: Left: 0 ", Tab stops:
10.010 Competitive Process, Exemptions, Definitions .' 0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
10.015 Exemption of Contracts Under Certain Dollar Amounts i 0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
10.020 Contracts for Price Regulated Items 0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
10.025 Library Periodicals 0.75 ", Left +Not at 1"
, Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.030 Advertising Contracts , Fonnatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.035 Equipment Maintenance Repair and Overhaul • , Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.040 Purchases under Established Price Agreements f : , Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.045 Gasoline, Diesel Fuel, Heating Oil, Lubricants and Asphalt Fonnatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.050 Investment Contracts : " , Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.055 Insurance Contracts • Formatted: Indent: Left: 0", Tab stops:
0.75", Left + Not at 1"
10.060 Employee Benefit Insurance Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
10.065 Office Copier Purchases ' ,' 0.75 ", Left + Not at 1"
, Formatted: Indent: Left: 0 ", Tab stops:
10.070 Finglc Seller of ProductSole Source Procurement .-' 0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
• 10.075 Contract Amendments (Including Change Orders and Extra Work) 0.75 Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
10.080 Affirmative Action Contracts t ' ; 0.75 ", Left + Not at 1^
Formatted: Indent: Left: 0 ", Tab stops:
10.085 Perehas. ePurchases Off Contract by Other Public Agencies 0.75 ", Left + Not at 1"
, Fonnatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.090 Oil or Hazardous Material Removal , Fonnatted: Default Paragraph Font, Font:
Garamond, 12 pt
10.095 Contracts with Qualified Non - profit Agencies ; , Formatted: Font: Garamond
10.100 Ammunition Formatted : , Tab stops: 7 ", Right
Field Code Changed
se
•
10.105 Public Improvement Contracts Involving Design or Construction Management • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
10.1 Individual Exemptions • { Formatted: Indent: Left: 0 ", Tab stops:
I 0.75 ", Left + Not at 1"
10.115 Class Exemptions • { Formatted: Indent: Left: 0 ", Tab stops:
1 0.75 ", Left + Not at 1"
10.120 Justification of Public Improvement Contracts Awarded by Other Than Competitive Bidding • Formatted: Indent: Left: 0 ", Tab stops:
10.125 Software 0.75 ", Left + Not at 1"
10.130 Telecommunication Services
10.135 Developer Provision of Public Improvements
10.140 Instrumentation and Programmable Control Systems
15.000 PRICE AGREEMENTS
15.010 Price Agreements • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", left + Not at 1"
20.000 BRAND NAMES-OR-MARKS
20.010 Specification of Particular Brand Names or Products • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
20.015 Copyrighted Materials • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
20.020 Single Manufacturer or Compatible Products - -- Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
20.025 Product Pre - qualification • - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
20.030 Brand Name or Mark Exemption • t Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
25.000 MINORITY OWNED BUSINESSES, WOMAN OWNED BUSINESSES, EMERGING
SMALL BUSINESSES
25.010 Minority Owned Businesses. Woman Owned Businesses. and Emerging Small Businesses • { Formatted: Indent: Left: 0 ", Tab stops:
` 0.75 ", Left + Not at 1"
25.015 Authority to Require Contracting with Emerging Small Businesses • - f Formatted: Indent: Left: 0", Tab stops:
0.75 ", Left + Not at 1"
30,000 FORMAL COMPETITIVE PROCESSES
30.010 Definitions • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.015 Competition • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.020 Eligibility to Bid on Construction Contracts • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.025 Solicitation Documents • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.030 Bids and Proposals Are Offers • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.035 Public Notice • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.040 Bid or Proposal Preparation •-- ----- Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.045 Bidder Pre-qualification • ------ Formatted: Indent: Left: 0", Tab stops:
0.75 ", Left + Not at 1"
Formatted: Footer, Widow /Orphan control
2 •
30.050 Bidder Submissions Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.055 Bid Security Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.060 Pre - Bid or Pre - Proposal Conferences * -- ---- Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.065 Addenda to Solicitation Documents - - - -- - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.070 Pre Opening Modification or Withdrawal of Bids of Proposals Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
t, Opening, and Recording of Bids and Proposals Formatted: Indent: Left: o ^, Tab stops:
30.075 Recei
P g P 0.75", Left + Not at 1"
30.080 Late Bids, Proposals, Late Withdrawals, and Late Modifications r - 0.75 Left + Indent: Left: 0", Tab stops:
P 0.75 ", Left Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
30.085 Mistakes . 0.75 ", Left + Not at 1"
.- Formatted: Indent: Left: 0 ", Tab stops:
30.090 Time for Acceptance t 0.75 ", Left + Not at 1"
. • Formatted: Indent: Left: 0 ", Tab stops:
30.095 Extension of Time for Acceptance of Bid 0.75 ", Left + Not at 1^
Formatted: Indent: Left: 0 ", Tab stops:
30.100 Evaluation and Award • 0.75 ", Left + Not at 1"
r
Formatted: Indent: Left: 0 ", Tab stops:
• 0.75 ", Left + Not at 1"
30.105 Life Cycle Cost Analysis Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.110 Responsibility
• Formatted: Indent: Left: 0 ", Tab stops:
0.75", Left + Not at 1"
30.115 Responsive and Non - responsive Bids or Proposals; Acceptance and Rejection •' , Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.120 Low Tie Bids .' • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.125 Rejection of Individual Bids or Proposals , Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.130 Rejection of All Bids or Proposals . -' Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
• . Formatted: Indent: Left: 0 ", Tab stops:
30.135 Protests of Award 0.75", Left + Not at 1"
30.140 Other Protests � i Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
• . Formatted: Indent: Left: 0 ", Tab stops:
30.145 Negotiation 0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
30.150 Bidder Disqualification : • , 0.75 ", Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
30.155 Cancellation of Invitations to Bid or Requests for Proposals : 0.75 Left + Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
30.160 Disposition of Bids or Proposals If Bid Is Cancelled 0.75 , Left +Not at 1"
Formatted: Indent: Left: 0 ", Tab stops:
• F Left t Not at 1"
30.165 Documentation of Award , Formatted
30.170 Foreign Contractor • 1, Formatted: Font: Garamond
Formatted: Left, Tab stops: 7 ", Right
• Field Code Changed
PAgkitil
30.175 Contract Terms and Conditions • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", LeR + Not at 1"
30.180 Availability of Award Decisions - Contract Retention • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.185 Requests for Proposals • - - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.190 Performance and Payment Security Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.195 Right to Audit Records Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.200 Right to Inspect Plant • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
30.205 Contract Cancellation and Termination Procedures • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.000 PUBLIC IMPROVEMENT CONTRACTS
40.010 Application • ( Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.015 Competitive Bidding Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.020 First Tier Subcontractor Notice • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.025 First Tier Subcontractor Disclosure • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.030 Bid Evaluation and Award • ' Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.035 Contract Cancellation Procedures • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", LeR + Not at 1"
40.040 Retainage • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.045 Progress Payments • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.050 Final Inspection • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.055 Final Estimate and Final Payment • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.060 Claims for Unpaid Labor or Supplies • { Formatted: Indent: Left: 0 ", Tab stops:
I 0.75 ", Left + Not at 1"
40.065 Planning for Public Improvements • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
40.070 Prevailing Wage Laws • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
50.000 WAIVER OF SECURITY BID AND PERFORMANCE BOND
50.010 Bid Security Requirements • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
50.015 Contracts Under $10,000 • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
50.020 Subcontracting to Emerging Small Businesses • - - - - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
60.000 PROPERTY DISPOSITION Formatted: Indent: Left: 0 ", Tab stops:
60.010 Surplus Personal Property • 0 .75 ", Left + Not at 1"
- Formatted: Footer, Widow /Orphan control
1 4
60.015 Auction Sales of Personal Property Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
60.020 Sales of Personal Property ` Formatted: Indent: Left: 0 ", Tab stops: l
0.75 ", Left + Not at 1" J
60.025 Liquidation Sales of Personal Property - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
60.030 Donations of Personal Property - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
60.035 Trade of Personal Property F ------ Formatted: Indent: Left: 0 ", Tab stops: 1
60.040 Disposal of Surplus Property Meeting Hazardous Waste Definitions , 0.75 ", Left+ Not at 1"
70.000 PERSONAL SERVICES CONTRACTS
70.010 Personal Services Contracts - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 0.63" + 1"
70.015 Screening and Selection Policy for Personal Services Contracts - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 0.63" + 1"
70.020 Amendments - Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 0.63" + 1"
80.000 EMERGENCY CONTRACTS: SPECIFIC EXEMPTION REQUIREMENTS: BOARD
EXCEPTION: PROCEDURES; TEMPORARY EXCEPTIONS
80.010 Emergency Contracts t -I---• -' Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
90.000 RECYCLABLE /RECYCLING PURCHASING GUIDELINES
90.010 Recycled Materials and Products Guidelines • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
90.015 Recycled Materials Preference • Formatted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
90.020 Recycled Materials and Products Purchasing Guidelines {F
ratted: Indent: Left: 0 ", Tab stops:
0.75 ", Left + Not at 1"
, Formatted: Default Paragraph Font, Font:
Garamond, 12 pt
, Formatted: Font: Garamond
nmatted: Left, Tab stops: 7 ", Right
f field Code Changed
100.00 INTERGOVERNMENTAL AGREEMENTS
100.010 Ri. ht to Enter into Inter. ovemmental A • eem -nts
100.020 Applicability of Intergovemmental Agreements
100.030 Intergovernmental Agreement Approval Authority
{ Formatted: Footer, Widow /Orphan control
6
I -- Formatted: Font: 12 pt, Underline
Formatted: Font: 12 pt
FCR 10.000 - COMPETITIVE PROCESS REQUIRED, EXEMPTIONS �- Formatted: Font: 12 pt
10.010 COMPETITIVE PROCESS, EXEMPTIONS AND DEFINITIONS
A. All public improvement contracts shall be based upon competitive bidding arm - allunless meeting an
exception listed here within. All other public contracts shall be based upon competitive bidding or
competitive proposals (collectively "formal competitive process "), except the following:
1. Contract.; made with other public agencies. Contracts made with other public agencies are not
subject to these rules, except to the extent that the rules explicitly allow certain transactions with
other public agencies.
2. Contracts which are exdusively for personal services as determined by application of Public
Contract Rule (PCR) 70.010. Such contracts may include incidental materials such as written reports,
architectural or engineering renderings, and similar supplemental materials.
3. Grants and contracts evidencing acceptance of donations by the City.
4. Contracts for professional or expert witnesses or consultants relating to existing or potential
litigation or other legal matters.
5. Transfers of real property or any interest in real property.
6. Energy savings performance contracts.
7. Contracts relating to bonds, certificates of participation, and similar debt repayment obligations, or
to program loans, or to public investments.
8. Employee benefit plans.
9. Contracts specifically exempt under the following rules:
10.015 Exemption of Contracts under Certain Dollar Amounts
10.020 Contracts for Price Regulated Items
10.025 Library Periodicals
10.030 Advertising Contracts
10.035 Equipment Maintenance Repair and Overhaul
10.040 Purchases under Established Price Agreements
10.045 Gasoline, Diesel Fuel, Heating Oil, Lubricants, and Asphalt
10.050 Investment Contracts
10.055 Insurance Contracts
10.060 Employee Benefit Insurance
10.065 Office Copier Purchases
10.070 Single Seller of Product
10.075 Contract Amendments (Including Change Orders and Extra Work) Formatted: Default Paragraph Font, Font:
Garamond, 12 pt
10.080 Affirmative Action Contracts _
10.085 PurchasePurchases Off Geetf8E[COntraCtS by Other Public Agencies I Formatted: Font: Garamond
10.090 Oil or Hazardous Material Removal , -,, Formatted: Left, Tab stops: 7 ", Right
Field Code Changed
Paean,
a 9`
10.095 Contracts with Qualified Non -profit Agencies
10.100 Ammunition
10.105 Public Improvement Contracts Involving Design or Construction Management
10.110 Individual Exemptions
10.115 Class Exemptions
80.010 Emergency Contracts
B. As used in this Section:
1. `Board" means the City of Tigard Local Contract Review Board.
2. "City" or "The City" means Tigard, Oregon.
3. Competitive bidding" means a competitive sealed bid procedure for awarding contracts following
the rules set forth in PCR 30.000.
4. "Competitive quotes" means the solicitation and receipt of offers by the City from competing
vendors, The solicitation may be by advertisement or by the City initiating a request to vendors to
make an offer. The solicitation and the offer may be written or oral.
5. "Invitation to Bid" means the solicitation of competitive bids in which price among those bidders
meeting specifications will be the predominant award criterion.
6. "LCRB" means the City of Tigard Local Contract Review Board.
6:7 "Personal property" means everything subject to ownership which is not real property and has
exchangeable value.
M. "Price Agreement" means an agreement in which the vendor agrees to supply all goods or services
of a particular type ordered by the City within a specified time period at a specified price and on
terms specified in the price agreement.
&Q_ "Public agency" means any federal, state or local government, or any department of any federal,
state or local government, including any local school or education City or any special district.
910. "Request for Proposal" means the formal solicitation of competitive written proposals to be
used as a basis for making an acquisition or entering into contract when price will not be the
predominant award criterion, following the rules set forth in Section 30.010 to 30.205.
i&11. "Service" means work performed to meet a demand, especially work that is not connected
with manufacturing a product.
1L.12. "Service contract" means a contract that calls primarily for a contractor's time and effort
rather than an end product.
12,13. "Telecommunications Services" means the lease or rental of the use of voice and data
transmission facilities or services, or of central office services, but does not include acquisition of
switch or station equipment or acquisition or installation of wire and cable.
C. When a contract is exempt from a formal competitive process, the City shall use reasonable efforts to
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8
0 ,
ensure it is obtaining goods or services on the best terms (price, quality and other terms). Those efforts
shall normally include seeking out potential contractors and determining price and availability by use of
informal quotes or other similar methods. The City shall not knowingly purchase goods or services if it
knows that comparable goods or services are available at lower cost on otherwise similar terms.
10.015 EXEMPTION OF CONTRACTS UNDER CERTAIN DOLLAR AMOUNTS
A. Public Contracts Other Than Public Improvements Contracts
The City may, in its discretion, enter into public contracts other than public improvements contracts
without a formal competitive process if the value of the contract does not exceed $b0100,000. If this
exemption is applied, the City must use either the small contract or intermediate contract procedures set
forth in Subsections C and D of this section. This exemption does not authorize City employees or
officials to enter into an agreement in excess of their dollar authority to bind the City.
B. Public Improvements Contracts
The City may, in its discretion, enter into public improvement contracts without competitive bidding if
the value of the contract does not exceed t ' a ' e e e : .: ..: : - :. :
ee }100.000. If this exemption is applied, the City must use either the small contract or
intermediate contract procedures set forth in Subsections C and D of this section. This exemption does
not authorize City employees or officials to enter into an agreement in excess of their dollar authority to
bind the City.
C. Small Contract Procedures
When the amount of the contract does not exceed $b1Q,000, the City may award the contract from any
source known to the City to provide goods or services of acceptable quality at competitive prices. The
City may not knowingly use a more expensive source if the goods or services of equivalent quality are
readily available from alternate sources on the same terms at lower prices.
D. Intermediate Contract Procedures
When the amount of the contract does not exceed $50,000, or $75,000 for a public improvement
. :. • • • • .. .:: :. .: . 100.000. but is more than $10.000,
the City may award the contract after seeking at least three competitive quotes or proposals. The City
shall keep a written record of the source and amount of the quotes or proposals received. If three
suppliers are not available, a lesser number of actual quotes or proposals will suffice provided that a
written record is made of the good faith effort to obtain the quotes or proposals.
E. No Division or Fragmentation of Contracts
A procurement of goods and /or services may not be artificially divided or fragmented to allow use of
the small or intermediate contract procedures. However, each ordcr of library materials for the City
. - - - - ... .. - .. -, . :. - - ... • . unless an exception Formatted: Default Paragraph Font, Font:
or exemption is granted under these Rules. . Garamond, 12 pt
Formatted: Font: Garartand
F. Amendment of Small and Intermediate Contracts ; Formatted: Left, Tab stops: 7", Right
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A contract awarded under the small or intermediate contract procedures may not be amendment if the
amendment would result in a total contract price that exceeds the maximum amount for the procedure
used to award the original contract.
10.020 CONTRACTS FOR PRICE REGULATED ITEMS
The City may, without formal competitive process, contract for the purchase of the goods or services where
the rate or price for the goods or services being purchased is established by federal, state, or local regulatory
authority.
10.025 LIBRARY PERIODICALS
Purchases for the library of subscriptions for periodicals including journals, magazines, and similar
publications may be made without formal competitive process. However, this provision does not authorize
the use of a higher priced source if a lower price source of acceptable quality is known to be available.
10.030 ADVERTISING CONTRACTS
The City may purchase advertising without formal competitive process.
10.035 EQUIPMENT MAINTENANCE, REPAIR, AND OVERHAUL
Contracts for equipment maintenance, repair, or overhaul may be let without a formal competitive process,
subject to the following conditions:
A. The services and /or parts required are unknown and the cost cannot be determined without extensive' - Formatted: Indent: Left: 0 ", Don't keep lines
preliminary dismantling or testing; or together, Tab stops: Not at 1"
{ Formatted: Don't keep lines together
B. The services and /or parts required are for sophisticated equipment for which specially trained personnel- f Formatted: Indent: Left: 0 ", Don't keep lines
are required and such personnel are available from only one source. together, Tab stops: Not at 1"
The City should, where possible, use a price agreement rather than relying on this exception.
10.040 PURCHASES UNDER ESTABLISHED PRICE AGREEMENTS
When the price of goods and services has been established by a price agreement entered into by a
competitive process, the City may purchase goods and services from the supplier without a subsequent
competitive process for the duration of the price agreement.
10.045 GASOLINE, DIESEL FUEL, HEATING OIL, LUBRICANTS AND ASPHALT
The City may, without a competitive process, purchase gasoline, heating oil, lubricants, and asphalt subject
to the following:
A. Prior to selection of the contractor, the City gets quotes from at least three vendors in the area;
B. The City makes its purchase from the least expensive source of those providing quotes; and
C. The City retains written justification for the purchase made.
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1 .
10.050 INVESTMENT CONTRACTS
The City may, without a formal competitive process, contract for the purpose of the investment of public
funds or the borrowing of funds by the City when such investment or borrowing is contracted pursuant to
duly enacted statute, ordinance, charter, or constitution.
1
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Garamond, 12 pt
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10.055 INSURANCE CONTRACTS
Contracts for insurance where either the annual or aggregate premium exceeds $5,000 must be let by a
formal competitive process or by one of the following procedures:
A. Agent of Record.
The City may appoint a licensed insurance agent ( "agent of record ") to perform insurance services in
connection with more than one insurance contract. Among the services to be provided is the securing of
competitive proposals from insurance carriers for all coverages for which the agent of record is given
responsibility. Proposals for coverage are presented to the City Manager or designee for approval:
1. Prior to the selection of an agent of record, the City shall make reasonable efforts to inform known
insurance agents in the competitive market area that it is considering such selection. These efforts
shall include a public advertisement in at least one newspaper of general circulation in the area. The
advertisement shall generally describe the nature of the insurance that the City will require. If the
amount of the annual premium for insurance other than employee benefits insurance is likely to
exceed $10,000 per year, such notice shall also include a public advertisement in at least one
insurance trade publication of general circulation in the state.
2. An agent's appointment shall not exceed a period of 5 years, but the same agent(s) may be selected
in a subsequent period. Agents must qualify the appointments prior to each period as if each
appointment period were the first.
3. In selecting an agent of record, the City shall select the agent(s) most likely to perform the most cost
effective services at a level of competence acceptable to the City.
B. Specific Proposals for Insurance Contracts.
The City may solicit proposals from licensed insurance agents for the purpose of acquiring specific
insurance contracts subject to the following conditions:
1. The City shall make reasonable efforts to inform known insurance agents in the competitive market
area of the subject matter of the contract and to solicit proposals for providing the services required
in connection with that contract. Such efforts shall include public advertisements in at least one
newspaper of general circulation in the area. If the amount of annual premium for insurance other
than employee benefits insurance is likely to exceed $10,000 per year, such notice shall also include a
public investment in at least one insurance trade publication of general circulation in the state.
2. The City shall select an agent on the basis of the most competitive offer considering coverage,
premium cost, and service to be provided.
10.060 EMPLOYEE BENEFIT INSURANCE
The City may purchase employee benefit insurance without formal competitive process.
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10.065 OFFICE COPIER PURCHASES lines together
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-- --- Formatted: Don't keep lines together
A. The City may enter into contracts for the purchase or lease of photocopiers without formal competitive--- Formatted: Indent: Left: 0 ", Don't keep lines
together, Tab stops: Not at 1"
process. Formatted: Footer, Widow/Orphan control
42
1 - L
B. In exercising this exemption, the City shall consider the operating capabilities, limitations, and cost of.- I Formatted: Indent: Left: 0 ", Don't keep lines
each brand or model as well as cost and select the brand and vendor that will produce the best together, Tab stops: Not at 1"
combination of performance and cost per copy for each application.
10.070 SINGLE SELLER OF PRODUCT OR SERVICESOLE- SOURCE PROCUREMENT I
AT C al • - - {Formatted: Bullets and Numbering
The City may purchase without a formal competitive process if there is only one seller (sole seller) of a• { Formatted: Indent: Left: 0"
product or service of the quality required, or if the efficient utilization of existing equipment or supplies
requires specification of a compatible product for which there is only one seller, The determination of a sole
source must be based on written findings as required by ORS 279B.075._ A sole source contract may be
awarded only after approval of the findings by the City Manage , Assistant
City Manager., or denee. To the extent reasonably practical, the City shall negotiate with single sellers to
obtain the best possible contract terms for the City.
Bv-T-ie&t==.' _.__ __ Formatted: Bullets and Numbering
-. _ — I
1 Formatted: Indent left 0
= — ,
i A. = — — . - -. — ... • -- - --- -- .-- - - -- - Formatted: Indent: Left: 0 ", Numbered +
— — — ° Level: 1 + Numbering Style: A, B, C, ... + Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
Tab after: 1" + Indent at: 1 ", Tab stops:
0.25 ", List tab + Not at 1"
Formatted: Indent: Left: 0 ", Numbered+
-- - - -- -- -- - - __ -' -- . _._ -- — , -__ --- Level: 1 + Numbering Style: A, B, C, ... + Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
Tab after: 1" + Indent at: 1 ", Tab stops:
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- ;:C. - -.- . ° -- _ ', . Formatted: Indent: Left: 0 ", Numbered +
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at: 1 + Alignment: Left + Aligned at: 0.75" +
- - _ - : -. .. Tab after: 1" + Indent at: 1 ", Tab stops:
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. .
., Formatted: Tab stops: 1 ", Left
* Formatted: Bullets and Numbering
•
{ Indent Left 0
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10.075 CONTRACT AMENDMENTS (INCLUDING CHANGE ORDERS AND EXTRA WORK) Garamond, 12 pt
, Formatted: Font: Garamond
A contract amendment for additional work, including change orders, extra work, field orders, or other I Formatted: Left, Tab stops: 7 ", Right
change in the original specifications which increases the original contract price, may be made with the ! . Reid Champed
PagCJ �!
contractor without a formal competitive process subject to the following conditions:
A. The original contract was let by formal competitive process, and the contract documents induded unit
prices or bid alternates were provided that provide a basis for determining the cost for additional work,
and a binding obligation exists on the patties covering the terms and conditions of the additional work;
or
B. The amount of the aggregate cost increase resulting from all amendments does not exceed 25% of the
initial contract. Amendments made pursuant to Section A of this rule are not included in computing the
aggregate amount under this section. The LCRB may, at its sole discretion, approve amendments
exceeding the 25% aggregate total if the Board finds it to be in the public's best interest to do so.
10.080 AFFIRMATIVE ACTION CONTRACTS
A. Public contracts may be awarded without a formal competitive process pursuant to a specific
Affirmative Action plan. Affirmative Action is a program designed to insure equal opportunity in
employment and business for persons otherwise disadvantaged by reason of race, color, religion, sex,
national origin, age, or physical or mental handicap, including but not limited to, personnel practices of
I contractors, "set- aside" programs, and minority business enterprises._ These rules shall not be construed
to prohibit engaging in practices designed to promote affirmative action goals and policies.
B. In carrying out the affirmative action policy, by appropriate ordinance, resolution or administrative rule,
the City may limit competitive bidding on a public contract for procurement of goods and services or on
any public contract estimated to cost $591(Q,000 or less to contracting entities owned or controlled by
persons described in Subsection A of this section.
10.085 PURCI IASEPURCHASES OFF CA BY OTHER PUBLIC AGENCIES { Formatted: Don't keep with next, Don't keep
l lines together
A. The City may purchase any good or service without a formal competitive process if the good or service...-. ` Formatted: Don't keep lines together
is purchased from a bidder that has been awarded a contract for the same good or service, whether by a Formatted: Indent: Left: 0 ", Don't keep lines
requirements contract or by individual contract by another public agency through its public contract together Tab stops: Not at 1^
purchasing procedures if:
1. The original contract was awarded by a competitive bid or proposal process or pursuant to an
exemption equivalent to an exemption provided by these rules.
2. The contract allows other public agency usage of the contract. A contract that does not prohibit
other public agency usage of the contract shall be deemed to allow other public agency use, unless
the agency that awarded the contract objects to the use.
3. The purchase is on the same terms, or terms which are no less favorable to the City in all material
respects, as the contract awarded by the public agency.
B. A purchase under the Oregon Cooperative Purchasing Program or any similar federal or regional. Formatted: List Paragraph, Indent: Left: 0 ",
program, including the Electronic Government Act of 2002 (10 USC 381) shall be considered an Numbered + Level: 1 +Numbering Style: A, s,
c, ... + Slant at: 2 + Alignment: Left + Aligned
exempt purchase under this exemption. at: 0.75" + Tab after: 1" + Indent at: 1 ", Tab
stops: 0.25 ", List tab + Not at 1" + 1.63"
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I 44
10.090 OIL OR HAZARDOUS MATERIAL REMOVAL
A. The City may enter into public contracts without a formal competitive process when ordered to clean up
oil or hazardous waste pursuant to the authority granted the Department of Environmental Quality
(DEQ) under ORS Chapter 466, especially ORS 466.605 through 466.680, and this order necessitates
the prompt establishment and performance of the contract in order to comply with the statutes
regarding spill or release of oil or hazardous material that has created an emergency condition. in
exercising its authority under this exemption, the City shall:
1. To the extent reasonable under the circumstances, encourage competition by attempting to make
informal solicitations or to obtain informal quotes from potential suppliers of goods or services.
2. Make written findings describing the circumstances requiring cleanup or a copy of the DEQ order
ordering such cleanup.
3. Record the measures taken under Subsection 1 of this section to encourage competition, the amount
of the quotes or proposals obtained, if any, and the reason for selection the contractor selected.
B. The City shall not contract pursuant to this exemption in the absence of an order from DEQ to dean d- - IFormatted: Indent: Left: 0 ", Don't keep lines
up a site with a time limitation that would not permit hiring a contractor under the usual formal L together, Tab stops: Not at 1.63"
competitive process procedures.
10.095 CONTRACTS WITH QUALIFIED REHABILITATIVE FACILITIES - Formatted: Don't keep with next, Don't keep
lines together
The City may enter into contracts with qualified non profit agcncicarehabilitative facilities providing Formatted: Don't keep lines together
employment for disabled individuals under ORS 279.835 to 279.855 without a competitive process. The
City shall contract with such agencies when required by law. To the extent competition exists among
qualified non - profit agencies, the City shall select the qualified non -profit agency offering the lowest price
for an acceptable level of service.
10.100 AMMUNITION
The City may enter into contracts for the purchase of lethal and non - lethal ammunition, both for service
and for training, without a formal competitive process.
10.105 PUBLIC IMPROVEMENT CONTRACTS INVOLVING DESIGN OR CONSTRUCTION
MANAGEMENT
1 - { Formatted: Font: Not Bolo
The City may enter into public improvement contracts without competitive bidding if the contracts involve
design or construction management or require expertise beyond normal construction work. Unless exempt
under some other exemption, a competitive proposal process must be used. One of the following specific
processes shall be followed:
followed:
A. Construction Manager /General Contractor
may select a person or firm to act as a Construction Manager/General Contractor (CM/GC) Formatted: Default Paragraph Font, Font:
The City Y P g ( ) l Garamond, 12 pt
to construct public improvements by means of a competitive proposal process. ,Formatted: Font: Garamond
1. A CM /GC performs specified Construction Manager services in addition to traditional General Formatted: Left, Tab stops: 7 ", might ^_
{ Field Code Changed
Page:5 a
i X
Contractor services. A CM /GC contract shall require full performance within a negotiated
Guaranteed Maximum Price (GMP). The basis for payment shall be reimbursable direct costs plus a
fee constituting full payment for work and services rendered, which together shall not exceed the
GMP.
2. The solicitation documents shall include:
a. A description of the evaluation process and criteria. The criteria may include cost, quality,
experience, availability, commitment to timely completion, and other factors.
b. The process to be followed for establishing the guaranteed maximum price.
c. A description of the circumstances under which any of the following activities may be
authorized and undertaken for compensation prior to establishing the GMP, but only after unit
prices are established:
1. Early procurement of materials and supplies;
2. Early release of bid packages for such things as site development; and
3. Other advance work related to critical components of the project.
3. The contract documents shall include:
a. A description of the method by which the CM /GC shall competitively select contractors and
subcontractors.
b. Either the maximum guaranteed price or a process for establishing a guaranteed maximum price.
c. A description of the situations in which the CM /GC may perform the work of the improvement
without subcontracting, including any requirement that the CM /GC compete with others to do
the work and the work that the CM /GC may perform directly without a competitive process.
d. The standards or factors under which changes or additional work that warrants an increase in
the GMP, as well as criteria for decreasing the GMP. The GMP shall not be increased without a
concomitant increase to the scope of the GMP.
e. The disposition of any cost savings resulting from completion of the work below the GMP,
including the CM /GC share, if any, in those cost savings. Normally, the cost savings should
accrue to the City.
f. The items or categories of items are eligible for cost reimbursement within the GMP.
g. A provision for a final audit adjustment and process.
h. A fee that is inclusive of profit, overhead and all other indirect or non - reimbursable costs. Costs
determined to be included within the fee should be expressly defined wherever possible. The fee,
first expressed as a proposed percentage of all reimbursable costs, shall be identified during and
become an element of the selection process. It shall subsequently be expressed as a fixed amount
when the GMP is established.
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46
y
i Any economic incentives, the specific criteria that apply and their relationship to other financial
elements of the Contract (including the GMP).
B. Design -Build Contracts Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together Tab stops: Not
1. A design -build contract is one in which a single entity designs and constructs a public improvement- ` at I"
Design -build contracts shall only be used if City staff has the expertise and experience to administer Formatted: Don't keep lines together
a design -build contract. The design -build process may be used to: Formatted: Indent: Left: 0.25 ", Don't keep
lines together, Tab stops: Not at 2"
a. Obtain through a Design -Build team, engineering design, plan preparation, value engineering,
construction engineering, construction, quality control and required documentation as a fully
integrated function with a single point of responsibility;
b. Integrate value engineering suggestions into the design phase, as the construction contractor
joins the project team early with design responsibilities under a team approach, with the
potential of reducing contract changes;
c. Reduce the risk of design flaws, misunderstandings and conflicts inherent in construction
contractors building from designs in which they have had no opportunity for input, with the
potential of reducing contract claims;
d. Shorten project time as construction activity (early submittals, mobilization, subcontracting and
advance work) commences prior to completion of a `biddable" design, or where a design
solution is still required (as in complex or phased projects); or
e. Obtain innovative design solutions through the collaboration of the contractor and design team,
which would not otherwise be possible if the contractor had not yet been selected.
2. Tf--ttA. design -build contractor i - ietmust have an Oregon licensed design professional on staff
that will be assigned to the City's project. The design -build contractor shfrlimust disclose in its
proposal that it is not anthe name of the Oregon licensed design professional(;) and identify—die
verify that the professional(s) whe —will previdebe the one(s) providing
primary design services to the City.
3. A design -build contractor awarded a contract shall provide additional security as required by ORS
279C.380(1)(a). The obligation is not intended to be a substitute for professional liability insurance,
and does not indude errors and omissions or latent defects coverage.
4. The level or type of design services required must be dearly defined within the solicitation
documents and contract, along with a description of the level or type of any design services
previously performed for the project. The services to be performed shall be clearly delineated as
either design specifications or performance standards.
5. The contract shall dearly identify the liability of design professionals, shall include requirements for
professional liability insurance, and shall clearly identify the extent of any indemnity or warranty.
, Formatted: Default Paragraph Font, Font:
C. Other Public Improvement Contracts Where Quality Is An Issue i Garamond, Iz pt
, Formatted: Font: Garamond
In many situations, including those projects that require a higher than normal level of expertise or skill, r, ,,..f FOrmatted: Left, Tab stops: 7 ", Right
.;. Field Code Changed - - �
Pag 7.4,,
h
quality of the final product may be important beyond meeting minimum specifications. In those
situations, the City may use a request for proposal process, provided that the cost factor constitutes at
least 75% percent of the total evaluation score -, In scoring the cost factor, the proposer submitting the
lowest cost amount shall receive the maximum possible score for the cost factor, and the scores of the
other proposers shall be reduced by the percentage by which their cost exceeded the lowest cost. For
example, if the maximum score for the cost factor is 80, the lowest cost proposer would get a score of
80. A proposer with a cost that is 10 percent higher would have the score reduced by 10 percent (8
points), to 72.
10.110 INDIVIDUAL EXEMPTIONS
A. The City may exempt a particular contract or contracts from formal competitive process requirements
which are not otherwise exempted under these rules. The City Staff shall prepare an
appliearieninformational packet for the Board when r t he declaration of an individual
exemption contaiftingthat contains the following ift€eft rdetails:
1. The nature and scope of the project or purchase;
2. Estimated cost of the project or purchase;
3. A narrative description of the cost savings anticipated by the exemption from the formal
competitive process and the reasons the formal competitive process would be inappropriate;
4. Proposed alternative contracting and purchasing practices to be employed; and
5. The estimated date by which it would be necessary to let the contract.
B. The Board may require such additional information as it deems necessary to determine whether a• Formatted: Indent: Left: 0 ", Don't keep lines
specific contract is to be exempt from the formal competitive process. together, Tab stops: Not at 1^
• Formatted: Don't keep lines together
C. The Board shall hold a public hearing and adopt findings justifying the individual exemption. The Formatted: Indent: Left: 0 ", Don't keep lines
findings shall at a minimum address include the findings required by ORS 279B.085(3) for contracts together, Tab stops: Not at 1" ,
other than public improvements or ORS 279C.335 for public improvement contracts.
• Formatted: Don't keep lines together
D. Notification of the public hearing shall be published in a newspaper of general circulation in the City a• Formatted: Indent: Left: 0 ^, Don't keep lines
minimum of 14 days prior to the hearing. Notification shall be published in a trade newspaper of general together, Tab stops: Not at 1"
circulation in the state if required by the Public Contracting Code.
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E. The notice shall state that the public hearing is for the purpose of taking comments on the City's draft Formatted: Indent: Left: 0", Don't keep lines
findings for an exemption from the formal competitive process requirement. At the time of the notice, together, Tab stops: Not at 1"
copies of the draft findings shall be made available to the public. At the option of the City, the notice
may describe the process by which the findings are finally adopted and may indicate the opportunity for
any further public comment
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F. At the public hearing, the City shall offer an opportunity for any interested party to appear and present Formatted: Indent: Left: 0 ", Don't keep lines
comment. together, Tab stops: Not at 1"
• Formatted: Don't keep lines together
G. If the C i ty is required to act p r o m p t l y due to circumstances beyond its c o n t r o ll s that do not constitute*
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an emergency, notification of the public hearing can be published simultaneously with the City's together, Tab stops: Not at 1"
solicitation of contractors for the alternative public contracting method, as long as responses to the . { Formatted: Footer, widow / orphan control
48 `
solicitation are due at least five days after the meeting and approval of the findings.
10.115 CLASS EXEMPTIONS
A. The Board may exempt certain public contracts or classes of public contracts from the formal
competitive process requirements by amending these rules upon approval of the following findings:
1. It is unlikely that such exemption will encourage favoritism in the awarding of public contracts or
substantially diminish competition for public contracts;
2. The awarding of public contracts pursuant to the exemption will result in substantial cost savings to
the City. In making such findings, the Board may consider the type, cost, amount of the contract,
number of persons available to bid, and such other factors as may be deemed appropriate; and
3. The exemption otherwise substantially supports the public interest in a way that could not be
achieved under existing rules.
B. The Board shall adopt a class exemption only after a duly noticed public hearing. ruling. The notice of
the hearing shall be posted in full public view in the City Hall and published in a newspaper of general
circulation at least 14 days prior to the hearing. If the exemption involves a public improvement, the
notice shall also be published in a trade publication of statewide circulation.
10.120 JUSTIFICATION OF PUBLIC IMPROVEMENT CONTRACTS AWARDED OTHER THAN BYri Formatted: Dart keep with next, Don't keep
COMPETITIVE BIDDING lines together
f Formatted: Don't keep lines together
Upon completion of and final payment for any public improvement contract in excess of $100,000 for
which the City did not use the competitive bidding process, the City shall prepare and deliver to the Local
Contract Review Board an evaluation of the public improvement project. The evaluation shall include but
not be limited to:
A. The actual project cost as compared with original project estimates.
B. The amount of any guaranteed maximum price.
C. The number of project change orders issued.
D. A narrative description of successes and failures during the design, engineering and construction of the
project.
E. An objective assessment of the use of the alternative contracting process as compared to the findings
required by ORS 279C.335.
Evaluations required by this section shall be made available for public inspection and shall be completed
within 30 days of acceptance of the project.
10.125 SOFTWARE Formatted: Default Paragraph Font, Font:
Garamond, 12 pt
The City may award a contract for software without a formal competitive process if it is determined that , Formatted: Font: Garamond
little to no competition exists for the required software. In determining whether or not competition exists, . CFormatted: LeR, Tab stops: 7 ^, Right
the City may consider the following factors; Field Code Changed
Page 7f
A. The extent to which software is able to be integrated with City systems including both hardware and
software.
B. The stability of the software company, which shall include:
1. The software's track record in the industry;
2. The software's companies financial standing; and
3. The frequency of upgrades that enhance the software.
C. The overall cost of the software, which shall include the City's intemal costs of upkeep on the software.
Contracts for annual software maintenance may also extend past the standard five (5) year maximum
contract terms detailed in these rules so long as maintaining the software continues to be in the Citys' best
interest.
10.130 TELECOMMUNICATION SERVICES
• • • m , • . • 1 • - • /1 68 • . • 0 S ' • • s . r • • • m . 1 . 1 0 9 " 6 . 0 . - • • ss {Formatted: Indent: Left: O" J
• " 1I • - S I. 11 • 68 1 . 1 6 1 ' . S S < •1 . 1 . S ' • • - ' S • • ' S. 1 • ' • •68 1 1 ' .1 • ' •$I • ' • • , ' . s •
the City may consider the following factors: • 4 1). ' ' • ' ' . . • • . r 1. 1 r • • s s r , •, • • u_• • •r • s' .1 ' 68 . • - Formatted: Indent: Left: 0 ", Numbered +
relevant market will vary from service category to service category and cannot be nr i r in d n Level: 1 + Numbering Style: A, B, C, ... + Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
advance, Tab after: 1" + Indent at: 1 ", Tab stops:
0.25 ", L Ist tab + Not at 1"
5-:E. The extent to which alternative services offered are comparahle or substitutable in technology,*- Formatted: Indent: Left: 0", Numbered +
s - • • - • • • • • • . • • ► • 19 • 7 '0 .. 68 • 1" • ' s ' • ' • 1 . • s • O s ' • •S , • , • • Level: 1 +Numbering Style: A, B, C, ... +Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
services are not comparahle or substitutable. Tab after: 1" + Indent at: 1 ", Tab stops:
0.25 ", List tab + Not at 1"
6,F. The extent to which alternative providers can respond to the City's interests in consistency and+ Formatted: Indent: Left: 0 ", Numbered +
continuity of services throughout its service area, volume discounts_ and centralized management. The Level: 1 +Numbering Style: A, B, C, ... +Start
at: 1 + Alignment: Left + Aligned at: 0.75' +
City must document for the record its findings on these factors or any other factors used in determining, Tab after: 1" + Indent at: 1 ", Tab stops:
whether competition exists. In developing its findings, the City may solicit information by any means, 0.25 ", list tab + Not at 1"
includin. inform . • s ss' • • s s• 1 • ' , , • . • • • •• . . ' • 'S • • • 1• .: • 1
{ Formatted: Tab stops: 1 ", Left
10.135 DEVELOPER PROVISION OF PUBLIC IMPROVEMENTS
At times. private developers may provide work on public improvements for the City as required by a• { Formatted: Indent: Left: 0"
condition of land use approval or to comply with a land use approval or as required by a development
agreement with the City. • • • • • ' r • • s • ' •, s . • s ' s • , s - • m • • • - .. s • - s •
for the provision of the public improvements. with the need for findings. _No competitive process is
• • • • • . I . 1 • , • • • 1 1 . 1 - ' •• . r • . 1 • S 1 • • S • • • • • S • • S • • • . •
or for a develo er to provide and the City to accepl_public im • - •1 1 s .. s • • • 1 • • •
approval.
There are also times when the City may contract with a developer to provide services on a public
improvement due to the developers work in the area even through the work may not be a condition of land
use. In these circ stances the Ci must •rovide determina ion th.t there will be s'• ific.nt savin.s to the
City to contract with the developer. This determination must be made in writing and made part of the I Widow/Orphan control
2A v l
• i
project's permanent file. In these cases the developer shall conclusively deemed to be a sole source for the
provision of the public improvement. No competitive process is required to enter into a public
improvement contract for the developer to provide services on the public improvements if the savings are
determined to be significant enough to warrant such an exemption.
10.140 INSTRUMENTATION AND PROGRAMMABLE CONTROL SYSTEMS
(Need some mumbo jumbo)
F'CR 15.000 - PRICE AGREEMENTS {matted: Font: 12 pt
15.010 PRICE AGREEMENTS
The City may enter into price agreements providing the following conditions are met:
A. The contract is awarded by a formal competitive process.
B. The term of the contract including renewals does not exceed 5 years.
15.015 MULTIPLE PRICE AGREEMENTS PERMITTED
The City may enter into price agreements with more than one supplier for the same goods or services.
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FCR 20.000 - BRAND NAMES OR MARKS . -. - -{ Formatted: Font: 12 pt
20.010 SPECIFICATION OF PARTICULAR BRAND NAMES OR PRODUCTS
A. Specifications for public contracts shall not expressly or implicitly require any product of any particular
manufacturer or seller except pursuant to an exemption under PCR 20.015 (Copyrighted Materials),
20.020 (Single Manufacturer or Compatible Products), 20.025 (Product Pre- gmliftcation), or 20.030
(Brand Name or Mark Exemption Applications).
B. If there is no other practical method of specification, the City may designate a particular brand name,
make or product "or equal ", but this practice should be avoided whenever possible.
20.015 COPYRIGHTED MATERIALS
The City may specify a specific copyrighted product. This exemption does not include patented or trade
mark goods.
20.020 SINGLE MANUFACTURER OR COMPATIBLE PRODUCTS
A. If there is only one manufacturer or seller of a product of the quality required, or if the required product
is data processing equipment which will be used for research where there are requirements for exchange
of software and data with other research establishments, or if the efficient utilization of the existing
equipment or supplies requires a compatible product of a particular manufacturer or seller, the City may
specify such particular product subject to the following conditions:
1. The product is selected on the basis of the most competitive offer considering quality and cost. The
term "cost" includes not only the product price, but also other items of expense such as costs
related to quality of conversion.
2. Prior to awarding the contract, the City has made reasonable effort to notify known vendors of
competing or comparable products of the intended specifications and invited such vendors to
submit competing proposals.
3. If the purchase does not exceed $50,000, such notice and invitation may be informal.
4. If the amount of the purchase exceeds $50,000, such notice shall include advertisement in at least
one newspaper of general circulation in the area where the contract is to be performed and shall be
timely to allow competing vendors a reasonable opportunity to make proposals.
B. If the amount of the purchase exceeds $50,000, the City shall document its actions in the bid file. Such
documentation shall include:
1. A brief description of the proposed contract or contracts.
2. A detailed description of the reasons why the product and /or seller was selected and any competing
products and /or sellers that were rejected. The description shall also include the efforts taken by
the City to notify and invite proposals from competing vendors.
C. If the City intends to make several purchases of the product of a particular manufacturer or seller for a
period not to exceed 2 years, it may so state in the documentation required by subsection (1)(b) and (2) { Formatted: Footer, Widow/Orphan control
22 V,
•
of this rule, and such documentation shall be sufficient notice as to subsequent purchases.
20.025 PRODUCT PRE - QUALIFICATION
A. When it is impractical to create specific design or performance specification for a type of product to be
purchased, the City may specify a list of approved products by reference to particular manufacturers or
sellers accotding to the following product pre - qualification procedure:
1. The City has made reasonable efforts to notify known manufacturers or vendors of competitive
products of its intention to accept applications for inclusion in its list of pre - qualified products.
Notification shall include advertisement in a trade journal of statewide distribution when possible.
In lieu of advertising, the City may notify vendors and manufacturers appearing on the appropriate
list maintained by the Oregon Department of Transportation (ODOT) Qualified Products List or
any list produced and maintained by the Oregon Department of General Services of the State otegen.
2. The City permits application for pre - qualification of similar products up to 15 days prior to
advertisement for bids on the product.
B. If an application for inclusion in a list of pre - qualified products is denied, or an existing pre - qualification
revoked, the City shall notify the applicant in writing. The applicant may appeal to the Board for a
review of the denial or revocation in the same manner as an appeal of disqualification or denial provided
in PCR 30.150.
20.030 BRAND NAME OR MARK EXEMPTION
A. The City may apply for and receive a brand name or mark exemption ruling from the Board for current
and contemplated future purchases. Applications shall contain the following information:
1. A brief description of the contract or contracts to be coveted. The description should include
contemplated future purchases.
2. The brand name, mark or product to be specified.
3. The reasons the City is seeking the exemption.
B. The Board may grant brand name or mark exemptions only if either of the following conditions are met:
L The exemption is not likely to encourage favoritism in public contracts or substantially diminish
competition and will result in cost savings.
2. There is only one manufacturer or seller of the product of the quality required, or efficient utilisation
of existing equipment or supplies requires acquisition of compatible equipment or supplies. (Formatted: Font: 12 pt
{ Formatted: Font: 12 pt
PCR 25.000 — MINORITY OWNED BUSINESSES. WOMAN OWNED BUSINESSES, AND Formatted: Small caps
EMERGING SMALL BUSINESSES f --
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Garamond, 12 pt
25.010 25.010 MINORITY OWNED BUSINESSES, WOMAN OWNED BUSINESSES, AND EMERGING I"
SMALL BUSINESSES • I{ . Formatted: Font: Garamond
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It is the policy of the City to provide opportunities for available contracts to certified minority owned,
woman owned and emerging small business and to cooperate with the State or Oregon Advocate for
Minority, Women and Emerging Small Business to determine the best means by which to make such
opportunities available.
25.015 AUTHORITY TO REQUIRE SUBCONTRACTING WITH CERTIFIED MINORITY OWNED
BUSINESSES, WOMAN OWNED BUSINESSES, AND EMERGING SMALL BUSINESSES
The City may, in solicitation documents, require that some portion of the work to be performed or some
portion of the materials to be provided be provided by a certified emerging small business and establish
other requirements authorized by ORS 279A.105.
FCR 30.000 - FORMAL COMPETITIVE PROCESSES - - { Formatted: Font: 12 pt
30.010 DEFINITIONS
For purposes of this chapter, the following definitions apply:
A. "Addenda to the Bid Documents" means additions or changes to the bid documents defined as addenda
shall be labeled as such and distributed according to these rules.
B. _ "Bid" means an offer submitted in response to an invitation to bid.
C. "Bid Closing" means the date and time announced as the deadline for the receipt of bids.
D. "Bid Opening" means the date, time and place set for opening of bids.
E. "Bid Sample" means a representative specimen of the item that will be available in response to the bid.
F. `Bidder" is a person who submits a bid in response to the City's invitation to bid.
G. "Bidding Period" means the span of time between the date of the invitation to bid and the time and date
set for receipt of bids. A minimum of 14 calendar days shall be provided, unless a shorter time is
deemed necessary in the public interest for a particular procurement.
H. "Board" means Local Contract Review Board.
IhI_ "Contract" means the written agreement, including the City's solicitation document and the accepted
portions of a bid or proposal, between the City and the contractor describing the work to be done and
the obligations of the parties. Depending upon the goods and services being procured, the City may use
"contract" as meaning a purchase order, price agreement, or other contract document in addition to the
City's solicitation document and the accepted portions of a bid or proposal. If the contract is for a
public improvement, the "contract" may consist of the City's solicitation document, including any
addenda, the general and special conditions governing the work, the accepted portions of the bid or
proposal, the performance and payment bond (if required), plans, technical specifications, approved
::}shop drawings, and any contract amendments, including approved change orders.
I-4 "Contract Price" means the total of the awarded bid or proposal amount, including any approved
alternates and any fully executed change orders or amendments.
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24 .-
•
1K "Contract Release Order" means the document authorizing an additional purchase on an existing
requirement contract.
K.L. "Contractor" means the individual, firm, or corporation awarded the public contract to furnish the
City the goods, services, or work procured in the City's solicitation.
&M. "Descriptive Literature" means materials submitted by prospective vendors to provide information
concerning the products available in response to the bid. • " • • •" II " ormatted B ullets andNum
. . . . . ... .. .f { F Numbering
City -°' a f fa[c a
N. "Lowest Responsible Bidder" means the lowest bidder who has substantially complied with all
prescribed public bidding procedures and requirements and who has not been disqualified by the public
contracting agency under ORS 279.037(ORS 279.029(1)) 279B 130 or 279C.440.
O. "Proposer" is a person who submits a proposal in response to the City's Request for Proposals.
P. "Solicitation Document" means an Invitation to Bid or Request for Proposals which included all
documents, whether attached or incorporated by reference, utilized for soliciting bids or proposals.
Q. "Specifications" means any description of the physical or functional characteristics or of the nature of a
supply, service, or construction item. Specifications may include a description of any requirement for
inspecting, testing, or preparing a supply, service, or construction item for delivery and the quantities or
qualities of materials to be furnished under the contract. Specifications generally will state the result to
be obtained and may, on occasion, describe the method and manner of doing the work to be performed.
Specifications may be incorporated by reference and /or through attachment to the contract.
30.010 COMPETITION
A. Contracts issued by the City shall be awarded by formal competitive process except as otherwise
exempted under the Oregon Public Contracting Code or these rules.
B. It is the policy of the City to encourage public contracting competition that supports openness and
impartiality in the maximum extent possible.
C. The City finds that:
1 Competition exists not only in prices, but in the technical competence of suppliers, in their ability to
make timely deliveries, and in the quality and performance of their products and services and that a
balance must exist between performance competition and price competition.
2. The nature of effective competition varies with the product or service being procured and, that
while competitive sealed bids are a common method of procurement, it is not always the most , Formatted: Default Paragraph Font, Font:
advantageous, practical or cost - effective method of source selection. The cost of the selection Garamond, 12 pt
process must be considered — a costly selection process is not appropriate for contracts with a low ' . Formatted: Font: Garamond
dollar value. Formatted: Left, Tab stops: 7 ", Right
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3. Meaningful competition can be achieved through a variety of methods when procuring products or
services. The methods include but are not limited to:
a. Price competition as represented by the initial or acquisition price;
b. Competition as represented by price and performance evaluations of the competing items and
suppliers;
c. Competition as represented by the evaluation of the capabilities of bidders or proposers to
perform needed services;
d. Competition as represented by evaluation of the capabilities of the bidders and proposers to
perform the services followed by a negotiation on price;
e. Competition as represented by another method of procurement that is reasonably
calertlateddetermined to satisfy the City's needs.
D. All public contracts shall be made under conditions that foster or reflect competition among a sufficient
number of potential suppliers that offer a wide spectrum of products and services and that represent a
broad marketplace. Fostering competition shall be reflected in:
- . . - . .. - . -- • ; ; • - - - . , . - . - ; . • Research made to read
format;
21..Scarching-fordetermine possible new sources of supply;
32. Attem is made to tttakeensure solicitation documents simple and inviting;
44 courtesy shown to prospective suppliers and contractors; and
574 way information on contracting opportunities is provided to suppliers including but not limited
to advertisement in publications of general circulation or in trade publications and any other
reasonable methods that encourage competition.
E. The City may evaluate every aspect of competition in its efforts to purchase products or services, choose
the appropriate solicitation process, or award contracts according to the criteria described herein and
arrive at offers that represent optimal value to the City.
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30.020 ELIGIBILITY TO BID ON CONSTRUCTION CONTRACTS
A person shall not submit a bid or proposal to work as a construction contractor unless that person is first
registered with the Construction Contractors Board or licensed by the State Landscape Contractor's Board
as required by ORS 671.530. Bids from persons who fail to comply with this requirement shall be deemed
non - responsive and be rejected.
The City may require prequalification of bidders in accordance with ORS 279C.430 and ORS 279C.435.
The City may also disqualify a bidder from consideration for contract award in accordance with ORS
279C.440.
30.025 SOLICITATION DOCUMENTS
Solicitation documents shall include the following
A. Instructions and information to bidders or proposers concerning the— submission requirements,
including the time and date set for opening, the name, address and title of the person designated to
receive bids and a contact person, if different, a statement the bid or proposal must be physically
received by the City by the deadline and any other special information relating to bid submission. The
bid deadline shall be at least seven days after the first publication of notice and 5 days after the last
publication of notice.
B. The date that pre - qualification applications must be filed if pre - qualification is a requirement.
C. The character of the work to be done or the items to be purchased, induding, as applicable:
specifications, delivery or performance schedule, inspection and acceptance requirements, and special
evaluation factors;
D. The office where any additional information, including additional specifications, may be reviewed or
obtained;
E. For bids — the contract terms and conditions, including warranty and bonding or other security
requirements, as applicable. For proposals, a list of contract terms required by the City, a list of
additional issues to be included in the contract, and a list of issues for which the proposer is expected to
propose contract terms.
F. That the solicitation may be cancelled or that any or all bids may be rejected for not complying with all
prescribed procedures and requirements;
G. That any and all bids may be rejected for good cause on a finding that it is in the public interest to do so;
H. In invitations to bid, a statement whether the bidders is a resident bidder; as defined in ORS 279A.120
al);
I. That a contractor must be licensed for asbestos abatement under ORS 468A.710, if applicable;
J. "tA statement that no bid or proposal for construction shall be received or considered by the City : Default Paragraph Font Font
unless the bidder or proposer is registered with the Construction Contractors Board s -fib ' ��t lZ pt
.. ! Formatted: Font: Garemond
PCR 30.020 , Formatted: t.eR, Tab stops: 7 ", Right
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� Y
K. If bid or proposal security is required, a description of the security required;
L. A description of any performance and payment bonding requirements;
M. For proposals, a description of the manner in which proposals will be evaluated and the relevant value
of each evaluation factor, including price. If a multi- tierdtiered process is used, that process will be
described, including the process for protesting the decision at any stage of the process;
N. If applicable, a statement that no bid will be considered unless the bid contains a statement that the
bidder will comply with ORS 279C.840 or 40 USC 276a; and
O. All addenda issued by the City.
30.030 BIDS AND PROPOSALS ARE OFFERS
A. Bids and proposals constitute an offer to enter into a contract which, if accepted by the City, shall bind
the bidder or proposer to a contract unless the bid or proposal is withdrawn prior to opening.
B. The bid or proposal shall constitute a "firm offer" unless bidders or proposers are specifically
authorized to take exceptions or to leave terms open to negotiation by the invitation to bid or request
for proposals. However, nothing in this provision prohibits the City from negotiating with a bidder or
proposer to the full extent allowed by state law. Unless expressly authorized by the solicitation
documents or these rules, bidders or proposers shall not make their bids or proposals contingent upon
the City's acceptance of specifications or contractual terms that conflict with or are in addition to those
advertised in the solicitation documents.
30.035 PUBLIC NOTICE { Formatted: Don't keep with next, Don't keep
I lines together
A. Distribution - Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab stops: Not
Solicitation documents or notices of the availability of bid documents shall be mailed to likely bidders at 2^
and proposers, placed on the Oregon Department of Administrative Service's electronic procurement Formatted: Don't keep lines together
system known as the "Vendor Information Program," or otherwise furnished to a sufficient number of
bidders or proposers for the purpose of securing competitive bids or proposals. Notice of availability
shall indicate where, when, and for how long the bid /proposal documents may be obtained. The City
many charge a fee for the bid documents.
B. Advertising
1. Every formal solicitation of bids or proposals shall be advertised. An advertisement for bids or
proposals shall be published at least once in at least one newspaper of general circulation in the City
and in as many additional issues and publications as the City may determine to be necessary or
desirable to ensure competition. If for a construction contract in excess of $i 50,,000 fer
. .. .: ... :: -- • - . , notice shall be published in at least one trade
newspaper of general statewide circulation. The City shall endeavor to provide information
concerning bids and proposals on its website and may post information on other databases.
2. All advertisements for bids or proposals shall state:
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28
a. The date and time after which bids will not be received, which date shall not be less than five (5)
days after the date of the last publication of the advertisement;
b. The date that pre- qualification applications must be filed if pre - qualification is a requirement;
c. The work to be done or the items to be purchased;
d. The office where additional documentation, including specifications, specifications may be
reviewed or obtained;
e. The name, title, and address of the person designated to receive bids;
f. The date, time, and place that bids or proposals will be opened;
g. If for a public improvement, whether the prevailing wage provisions of ORS 279C.800 to
279C.870 and or the Davis -Bacon Act (40 USC 276a) apply.
C. Posting of bid or proposal advertisement
A copy of each bid or proposal advertisement shall be posted at the business office of the City. Bidders
or proposers may obtain a copy upon request.
30.040 BID OR PROPOSAL PREPARATION Formatted: Don't keep with next, Don't keep
lines together
• Bid and Proposal Preparation Instructions: t Formatted: Don't keep lines together
A. Except as otherwise allowed, as applicable, bids and proposals shall be typed or prepared in ink and shall
be signed in ink by -the submitter or an authorized representative. The City will not accept - facsimile
bids, proposals, or signatures.
B. Bids and proposals shall be made on the bid forms provided unless otherwise instructed in the
solicitation document.
C. Alterations or erasures, if any, shall be initialed in ink by the person signing the bid.
D. Bids and proposals shall include all required documents and descriptive literature.
30.045 BIDDER PRE - QUALIFICATION
The City may require mandatory pre - qualification of bidders on forms prescribed in the bid document.
When pre - qualification is required by the bid documents as a condition for bidding, the City shall not
consider the bid(s) of any prospective bidder who is not pre - qualified. The City shall determine
qualifications within 30 days of receipt of an application for prequalification. In determining responsibility
of the applicant, the City shall consider only the criteria listed in ORS 279B.110(2). The City may have a
separate pre - qualification process. If a bidder is currently pre - qualified by the Oregon Department of
Transportation to perform specific classes of work. the bidder shall be presumed qualified to perform Formatted: Default Paragraph Font, Font:
similar work for the City. Garamond, 12 pt
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perferm-simil91.-.1verk-fer-the-Gity,
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30.050 BIDDER SUBMISSIONS
A. Samples and Descriptive Literature
Samples or descriptive literature may be required when it is necessary to evaluate required characteristics
of an item. Samples may be returned in accordance with provisions contained in the bid documents.
B. Identification of Bids and Proposals
Bids and proposals shall be submitted in a sealed envelope appropriately marked to ensure proper
identification and special handling. The City shall not be responsible for the proper identification and
handling of any bid not submitted in the designated manner or format to the required delivery point.
The City may refuse to accept or may reject any bid or proposal not properly sealed or marked.
C. Receipt of Bid or Proposal
It is the submitter's responsibility to ensure that bids or proposals are received by the City at the
required delivery point prior to the stated bid or proposal closing time regardless of the method used to
submit or transmit them.
30.055 BID SECURITY
A. Public Improvement Contracts
Bid security not to exceed 10 percent of the base bid(s) shall be required for public improvement
contracts where the amount of the contract exceeds $10,000. The bid security shall be forfeited if the
bidder fails to execute the contract promptly and properly if awarded.
B. Other Public Contracts
Bid security not to exceed 10 percent of the bid may be required by the City for other contracts in order
to guarantee acceptance of the award. This requirement shall be stated in the bid documents if in effect.
C. Contracts Under $10.000
Bid security for contracts of less t#►atthan $10,000 shall be required only in critical circumstances so as I
not to discourage competition.
D. Form of Bid Security
The following forms of bid security will be accepted by the City:
1. Surety bond from surety company authorized to do business in the State of Oregon;
2. Cashier's check, certified check, or savings and loan secured check; or
bond filed with the City (except for public improvement contracts). Formatted: Default Paragraph Font, Font:
3. Annual surety ty( i
P P P ) � Garamond, 12 pt
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E. Return of Bid Security
The bid security of all unsuccessful bidders shall be returned after a contract has been executed or all
bids have been rejected. The City may return the bid security of unsuccessful bidders after bid opening
but prior to award if the return does not prejudice bid award and provided that the security of at least
the three lowest bidders is retained pending the execution of a contract.
F. Security for Proposals
If contracts are to be awarded based on competitive proposals, the City may, in its discretion, require
proposal security on the same terms as the bid security described in this section. Proposal security shall
normally be required for any public improvement contract to be awarded by a proposal process.
30.060 PRE -BID OR PRE- PROPOSAL CONFERENCES
Pre -bid or pre - proposal conferences may be held by the City to explain the City's - requirements,- conduct
site inspections, or otherwise supplement or clarify information. The City may require attendance at the
conference as a condition for bidding or submitting a proposal. The conferences shall be announced in the
solicitation documents. The conference shall be held within a reasonable time after the solicitation
documents have been issued but sufficiently before bid closing to allow consideration of the conference
results in preparing submittals. Statements at the conference shall not change the solicitation documents
unless confirmed to all prospective bidders or proposers by means of a written addendum to the solicitation
documents.
30.065 ADDENDA TO SOLICITATION DOCUMENTS • { Formatted: Don't keep with next, Don't keep
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A. Form - Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab stops: Not
L at I"
Changes to solicitation documents shall be accomplished by addenda. The bidder or proposer shall
acknowledge receipt of all addenda issued, either with the bid or proposal or separately prior to opening. Formatted: Don't keep lines together
A solicitation may be delayed or suspended by addendum if in the best interest of the City.
B. Distribution
Addenda shall be sent to all prospective bidders or proposers known to have obtained the solicitation
documents or attended any mandatory conferences.
C. Timeliness
1. Addenda shall be issued within a reasonable time prior to bid closing to allow consideration prior to
submittal of the bid or proposal, but in no case less than 7218 hours before the submittal deadline.
The standard minimum notification for City- issued addenda shall be 72 hours prior to the close of
the bid or proposal. If staff has need to issue any addenda with less than 72 hours (but not less than
48 hours) staff shall document for the project file the reasons for the shorter notification timeframe.
If necessary, the City may notify prospective bidders or proposers by t,,. telephonic facsimile
(fax), e-mail, or telephone. If telephone is used, the City shall confirm the oral notice with a written
addendum.
2. In its discretion, the City may extend the closing date and time to allow prospective bidders or
proposers to analyze and adjust to changes made by Addenda. The City shall notify prospective
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32
A ,
bidders or proposers of new closing date and time either in the Addendum or in writing
accompanying the Addendum.
D. Addenda to Multi-Tier RFPs
If a multi-tier process is used to evaluate proposals, the City may issue addenda applicable to any tier of
the process at least 5 days before starting that tier of the process. If the City does issue such addenda,
amended or supplemental proposals may be submitted before the next tier of the process is started.
30.070 PRE- OPENING MODIFICATION OR WITHDRAWAL OF BIDS OR PROPOSALS
A. Modifications
Bids or proposals once submitted may be modified in writing prior to the time and date set for bid
closing. Any modifications shall be prepared on the company letterhead, signed by an authorized
officer, and state that the new document supersedes or modifies the prior bid or proposal. To ensure
the integrity of the process, the envelope containing any modifications to a bid or proposal shall be
marked as follows:
t Formatted: Don't keep with next, Don't keep
Bid-fer-[J'roposa14Modification •. lip e'er
Bid /Proposal Title -, and / Other Identification
Formatted: Font: Not Italic
Formatted: Font: Not Italic
B. Withdrawals Formatted: Don't keep lines together
{ Formatted: Font: Not Italic
1. Bids or proposals may be withdrawn by written notification on company letterhead signed by an Fo : Font: Not Italic
authorized person and received prior to the time and date set for - closing. Bids or proposals also Formatted: Font Not Italic
may be withdrawn in person prior to the scheduled— closing upon presentation of appropriate
identification.
2. Unopened bids or proposals withdrawn under subsection (a) above may be released to the bidder
after voiding any date and time atarnp—tiseeldocumentation detailed as the result of the initial
submittal.
3. Requests to withdraw mailed bids or proposals shall be marked as follows:
-id- fer-4Proposal1 Withdrawal {rmatted: Font: Not Italic
Bid-(of-4 Proposal) Title,Number -. and / Other Identification Formatted: Font: Not Italic
Formatted: Font: Not Italic
C. Documentation
Formatted: Font: Not Italic
All documents relating to the modification or withdrawal of bids or proposals shall be made a part of Formatted: Font: Not Italic
the appropriate bid file. Formatted: Font: Not Italk
30.075 RECEIPT, OPENING, AND RECORDING OF BIDS AND PROPOSALS
A. Receipt Formatted: Default Paragraph Font, Font:
Garamond, 12 pt
Upon receipt, each bid, proposal, arm& modification shall be time- stamped or marked by hand but not I { Formatted: Font: Garamond
opened and shall be stored in a secure place until opening. If bids, proposals, or modifications are Formatted: Left, Tab stops: 7 ", Right
opened inadvertently or are opened prior to the time and date set for opening because they were Reid code changed
Pa gio_3 ! '
� r
improperly identified, the bids, proposals, or authorized modification documents shall be resealed and
stored for opening at the correct time. When this occurs, documentation of the procedure shall be
placed in the file.
B. Opening and Recording
Bids and modifications shall be opened publicly, at the time, date, and place designated in the bid
documents. If witnesses are present at the bid opening, and to the extent practicable, the name of each
bidder, the bid price(s), and such other information as considered appropriate, shall be read aloud. On
voluminous bids the City may advise bidders as part of the bid documents that the bid items and prices
will not be read aloud.
Proposals may be opened at any time after the deadline for submittal of proposals. A summary sheet
providing basic information about each proposal shall be prepared.
C. Availability
Opened bids shall be available for public inspection prior to award except to the extent the bidder
designates trade secrets or other proprietary data to be confidential (ORS 192.501(2)). Proposals shall
not be available for public inspection until after a contract is awarded and entered into. The City shall
verify and determine that the confidential information claimed to be exempt is in fact exempt from
disclosure under the Oregon Public Records Law. Material so designated shall accompany the bid and
shall be readily separable from the bid or proposal in order to facilitate public inspection of the non-
confidential portion of the bid or proposal. Prices, makes, model, or catalog number of items offered,
scheduled delivery dates, and terms of payment shall be publicly available regardless of any designation
to the contrary.
D. Notice of Intent to Award
The City shall provide notice of intent to award to each person that has submitted a bid or proposal.
The notice shall state the date, time and location of the bid award decision. The notice shall include the
name of the person or entity that staff recommends the contract be awarded to. The notice shall
include any bid comparisons sheets or proposal comparison sheets.
30.080 LATE BIDS, PROPOSALS, WITHDRAWALS, AND MODIFICATIONS
Any bid, proposal, withdrawal, or modification received after the deadline for submission set in the
solicitation documents is late and shall not be considered. The City may use any watch or clock to
determine the time and the determination of the City employee or officer receiving the bids as to whether a
bid, proposal, withdrawal, or modification is late shall be final and not subject to challenge.
30.085 MISTAKES
A. General
Under extraordinary circumstances, a bid or proposal may be withdrawn after the deadline for submittal
because of an inadvertent nonjudgmental mistake. If the mistake is attributable to an error in judgment,
the bid or proposal may not be withdrawn or corrected. Correction or withdrawal by reason of
nonjudgmental mistake is permissible but only to the extent it is not contrary to the interest of the City
or the fair treatment of other bidders or proposers.
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A
B. Mistakes Discovered after Bid Closing but before Award Formatted: Indent: Left: 0 ", Don't keep with
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at 1"
This section applies to situations where mistakes in bids are discovered after the submission deadline j
but before award. Formatted: Don't keep lines together 1
1. Minor Informalities • F Formatted: Indent: Left: 0.25 ", Don't keep
with next, Don't keep lines together, Tab stops:
Minor informalities are matters of form rather than substance that are evident from the bid Not at 2"
documents, or insignificant mistakes that can be waived or corrected promptly without prejudice to Formatted: Don't keep lines together
other bidders or the City; that is, the informality does not affect price, quantity, quality, delivery, or
contractual conditions except in the case of informalities involving unit prices. Examples include,
but are not limited to, the failure of a bidder to:
a. Return the number of signed bids or number of other documents required by the bid documents
b. Sign the bid form in the designated block so long the bid documents evidence an intent to be
bound; or
c. Acknowledge receipt of an addendum to the bid documents, but only if:
1. It is clear from the bid that the bidder received the addendum and intended to be bound by
its terms; or
2. The addendum involved did not affect price, quantity, quality, or delivery.
C. Mistakes Where Intended Correct Bid is Evident
If the mistake and the intended correct bid are clearly on the face of the bid form, or can be
substantiated from accompanying documents, the City may accept the bid. Examples of mistakes that
may be clearly evident on the face of the bid form are typographical errors, errors in extending unit
prices, transposition errors, and arithmetical errors. Mistakes that are dearly evident on the face of the
bid form or proposal document also may include instances in which the intended correct bid or
proposal item is made clearly evident by simple arithmetic calculations. For example, a missing unit
price may be established by dividing the total bid or proposal item by the quantity of units for that item,
and a missing or incorrect total bid or proposal price for an item may be established by multiplying the
unit price by the quantity when those figures are available on the bid or proposal. For discrepancies
between unit prices and extended prices, unit prices shall normally prevail.
D. Mistakes Where Intended Correct Bid is Not Evident . i Formatted: Indent: Left: 0 ", Don't keep with
next, Tab stops: Not at 1.63"
The City may not accept a bid in which a mistake is clearly evident on the face of the bid form but the
intended correct bid is not clearly evident or cannot be substantiated from accompanying documents. , Formatted: Don't keep with next, Don't keep
lines together
30.090 TIME FOR ACCEPTANCE Formatted: Don't keep lines together
Formatted: Default Paragraph Font, Font:
Bids shall be valid and binding offers for 30 days from the deadline to submit bids unless otherwise ; Garamond, 12 pt `
specified in the bid documents. Proposals shall be binding and valid offers for 60 days from the date of the : , Formatted: Font: Garamond
submittal deadline. Formatted: Left, Tab stops: 7 ", Right
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30.095 EXTENSION OF TIME FOR ACCEPTANCE OF BID OR PROPOSALS
The City may request orally or in writing that bidders or proposers extend the time in which the City may
accept their offers.
30.100 EVALUATION AND AWARD
A. General
The contract, if awarded, is to be awarded to the Iowest responsive and responsible bidder or the best
responsive and responsible proposer. Consistent with the provisions of the solicitation documents and
in the public interest as determined by the City, awards may be made by item, groups of items, or entire
bid or proposal. The City reserves the right to reject any bid or proposal not in compliance with the
solicitation documents or with state law, City Code, or these rules. The City reserves the right to reject
any or all bids or proposals upon a finding by the City that it is in the public interest to do so.
B. Special Requirements
1. Solicitation documents shall set forth any special requirements and criteria that will be used to
determine the lowest responsible bidder. No bid shall be evaluated for any requirement or criterion
that is not disclosed in the bid documents or City regulation.
2. In determining the lowest responsible bidder, the City shall, for the purpose of awarding the
contract, add a percent increase on the bid of a non - resident bidder equal to the percent, if any, or
of the preference give to that bidder in the state in which the bidder resides.
3. The City may rely on a list provided for by the Oregon Department of Administrative Services
pursuant to ORS 279.029(3279A.120 (1) (4) for preference provided for by this section.
C. Product Acceptability
1. The solicitation documents shall set forth the evaluation criteria to be used in determining product
acceptability. The City may require the submission of samples, descriptive literature, technical data,
or other material, and may also provide for accomplishing any of the following prior to award.
a. Demonstration, inspection, or testing of a product prior to award for such characteristics as
quality or workmanship;
b. Examination of such elements as appearance, finish, taste, or feel; or
c. Other examinations to determine whether the product conforms to specifications.
2. The acceptability evaluation is conducted only to determine that a bidder's offering is acceptable as
provided in the bid documents. Any bidder's product; which does not meet the minimum
requirements shall be rejected.
, Formatted: Default Paragraph Font, Font:
D. Determination of Lowest Responsive and Responsible Bidder Garamond, 12 pt
Formatted: Font: Garamond
Following determination of product acceptability as set forth in subsection C, if applicable, bids will be . ,;, ( Formatted: Left, Tab stops: T", Right
evaluated to determine which bidder offers the lowest cost to the City in accordance with the evaluation 'F Code cha nged
P c37:.:
A
criteria set forth in the bid documents. Only objectively measurable criteria, which are set forth in the
bid documents, shall be applied in determining the lowest responsible bidder. Examples of such criteria
include, but are not limited to, transportation cost, volume weighing, trade -in allowances, depreciation
allowances, cartage penalties, and ownership or life cycle cost formulas. Evaluation factors need not be
precise predictors of actual future costs, but to the extent possible, such evaluation factors:
1. Are reasonable estimates based upon information the City has available concerning future use;
2. Treat all bids equitably; and
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at
the least cost.
The City shall take into account any preferences provided by these rules in determining the lowest bid.
E. Determination of Best. Responsive. and Responsible Proposer
Proposals will be evaluated to determine which proposer offers the best solution to the City in
accordance with the evaluation criteria set forth in the solicitation documents. Only the criteria set forth
in the solicitation documents shall be applied. The criteria shall be as objective as possible. Examples
of evaluation criteria may include, but are not limited to, cost, quality, service, compatibility, product
reliability, operating efficiency, expansion potential, performance history on other private and public
contracts, experience of key personnel, adequacy of equipment and /or physical plan, financial
wherewithal, sources of supply, references and warranty provisions. Evaluation factors need not be
precise predictors of actual future costs and performance, but to the extent possible, such evaluation
factors shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. To the extent that the proposal involves a public improvement, recognize that public policy requires
public improvements to be accomplished at the least cost.
F. In evaluating proposals, the City may use any of the following methods:
1. An award based solely on an evaluation of the written proposals;
2. Discussions with a number of proposers leading to a best and final offer from each proposer and an
evaluation of the best and final offers;
3. An award based on the written proposals and interview performance;
4. Serial negotiations, staring with the highest ranked proposer;
5. Competitive simultaneous negotiations;
6. A multi-tiered process, with some number of proposer being eliminated at each stage of the process;
7. A multi-stage process, with a qualifications determination at the first stage of the process, followed
Formatted: Footer, Widow /orphan control
38
by cost considerations; or
8. Any other method or combination of methods designed to best serve the needs of the City and its
taxpayers.
The solicitation document shall describe the process to be followed.
G. No Assignment or Transfer of Contract Rights
Unless an express provision of the public contract otherwise provides, the contractor shall not assign,
sell or transfer rights, nor delegate responsibilities, under public contract, either in whole or in part,
without first obtaining the City's prior written consent. Unless otherwise agreed by the City in writing,
such consent shall not relieve the contractor of any obligations under a public contract, and any assignee
or transferee shall be considered the agent of the contract and bound to abide by all provisions of the
public contract. Except in the event of a novation, if the City consents in writing to an assignment, sale,
or transfer of the contractor's rights and responsibilities, the contractor and its surety, if any, shall
remain ultimately liable to the City for complete performance of the public contract as if no such
assignment, sale, or transfer had occurred.
30.105 LIFE CYCLE COST ANALYSIS
A. In determining the lowest responsible bidder, in the award of a contract, the City may use the cycle
costing. As used in this rule, life cycle costing means determining the cost of a product for its useful life.
B. The City shall follow these procedures:
1. At the time of writing specifications for the product, the City shall identify those factors which will
have cost implications over the life of the product and which, for evaluation purposes, will be used
to adjust the bid or proposal price of the product.
2. The solicitation documents shall set out dearly the factors and methodology to be used in life cycle
cost adjustments.
3. The results of life cycle costing adjustments shall be applied to the bid or proposal price of the
product(s) offered. The bid or proposal that results in the lowest overall ownership cost, taking into
account the life cycle costing adjustments, shall be considered the lowest bid or best proposal for
purposes of bid or proposal price evaluation.
30.110 RESPONSIBILITY
A. A responsible bidder or proposer is one who has:
1. Adequate financial resources to perform the contract, or the ability to obtain such resources. The
City shall require acceptable evidence of the bidder's or proposer's ability to provide or obtain the
required financial resources. Acceptable evidence normally consists of, but is not limited to, current
and recent balance sheets; income statements; cash flow statements; and /or a performance bond Formatted: Default Paragraph Font, Font:
from an acceptable surety in an amount equal to the bid or proposal price. Such evidence may also Garamond, 12 pt
include a commitment of specific arrangement that will be in existence at the time of contract award Formatted: Font: Garamond
to rent, purchase, or otherwise acquire the needed facilities, equipment, or other resources; , Formatted: Left, Tab stops: 7 ^, Right
• Field Code Changed J
2. The ability to comply with the required or proposed delivery or performing schedule, taking into
consideration all existing commercial and public business commitments;
3. A satisfactory performance record. A bidder or proposer who is, or recently has been, seriously
deficient in contract performance shall be presumed to be non - responsible, unless the City
determines that the circumstances were properly beyond the contractor's control or that the
contractor has taken appropriate corrective action. Record of failure to perform acceptably is strong
evidence of non - responsibility. The City shall consider the number of contracts involved and the
extent of the deficiency of each in making this evaluation. In addition, the City may consider
whether the bidder's performance history demonstrates responsibility as defined in ORS
200.005(11)279B.110 and 200.045(3);279C. 375;
4. Key personnel available of sufficient experience, as determined by the City, to perform the
contracts;
5. The necessary organization, experience, accounting and operational controls, and technical skills, or
the ability to obtain these skills and abilities as required to satisfactorily perform the contract. These
may include, as appropriate, such elements as production control procedures, property control
systems, and quality assurance measures applicable to materials to be produced or services to be
performed by the bidder and its proposed subcontractor(s);
6. The necessary production, construction, and technical equipment and facilities, or the ability to
obtain them;
7. A satisfactory record of integrity;
t { Formatted: Indent: Left: 0"
8. For contractors on public improvement contracts, has not been determined to be not responsible by
the Construction Contractors Board; and
9. Is otherwise qualified and eligible to receive award under applicable laws and regulations.
B. The City shall consult with the Construction Contractor's Board concerning the responsibility of any
person to whom a public improvement contract is proposed to be awarded, and shall comply with the
reporting requirements of ORS 279279C.375. The City has the right, prior to awarding any public
contract, to make such investigation as is necessary to determine whether a bidder or proposer is
responsible. This investigation may include, but is not limited to:
1 An inquiry into the responsibility of proposed subcontractors and suppliers.
2. Requiring a bidder or proposer to demonstrate its financial ability to perform the contract as
provided in subsection A.1 of this rule. In exercising this right, the City shall notify the apparent
successful bidder or proposer in writing to submit such documentation as the City deems necessary
to complete a thorough evaluation of financial ability.
3. By submitting a bid or proposal, a bidder or proposer authorizes the City to request any credit
report information the City deems necessary to investigate and evaluate financial responsibility to
perform the contract(s).
C. Failure of a bidder or proposer to promptly supply information requested by the City during its
responsibility investigation shall be grounds for a finding of non - responsibility.
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D. Only bids and proposals from responsible bidders or proposers, as defined in this rule, shall be eligible
for contract award. Bid or proposals from non - responsible bidders or proposers shall be rejected as
provided in PCR 30.115.
30.115 RESPONSIVE AND NON - RESPONSIVE BIDS OR PROPOSALS; ACCEPTANCE AND. Formatted: Don't keep with next, Don't keep
REJECTION lines together
t Formatted: Don't keep lines together
A. A "responsive bid or proposal" is one that complies in all material aspects with the solicitation* Formatted: Indent: Left: 0 ", Don't keep lines
documents and with all prescribed public bidding procedures and requirements. together, Tab stops: Not at 1.63"
• Formatted: Don't keep lines together
B. A "non- responsive bid or proposal" is one which: Formatted: Indent: Left: 0 ", Don't keep lines
together, Tab stops: Not at 1.63"
1. Omits, or is unclear as to the price and the price cannot be determined in the bid or proposal
documents;
2. Offers goods or services of a quality or quantity inferior to that requested in the solicitation
documents;
3. Does not meet the delivery date requirements specified in the solicitation documents;
4. Takes exception to the terms and conditions of the solicitation documents other than as allowed by
these rules or the solicitation documents;
5. Is conditional upon the City's acceptance of terms and conditions difference from those contained
in solicitation documents, except as allowed by these rules or the solicitation documents; or
6. Contains a deviation which, if the bid or proposal were accepted, would give the bidder or proposer
a substantial advantage or benefit not shared by other bidders or proposers to the solicitation
documents.
C. The City shall accept, and consider for award, only those bids or proposals, which are responsive as
defined in this rule. Non - responsive bids or proposals shall be rejected, as provided in PCR 30.115.
30.120 Low TIE BIDS
A. Definition
Low tie bids are low responsive bids from responsible bidders that are identical in price, fitness,
availability and quality and which meet all the requirements and criteria set forth in the bid documents.
B. Award
1. If low tie bids are received, a preference shall be given to goods and services that have been
manufactured or produced in Oregon.
, Formatted: Default Paragraph Font, Font:
2. If the bids remain tied after application of the Subsection 1, preference shall be given to the bidder Garamond, 12 pt
whose principal offices or headquarters are located in Oregon. / Fomwtted: Font: Garamond
1 % Formatted: Left, Tab stops: 7", Right
3. If the bids remain tied after application of Subsections 1 and 2, the award shall be made by drawing lots Flew C ade cha nged
I'xPS. ��3
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among any tied Oregon bidders. Such bidders shall be given notice and an opportunity to be present
when the lots are drawn.
4. If there are no Oregon bidders after application of subsections 1 and 2, award of the contract shall be
made by drawing lots.
30.125 REJECTION OF INDIVIDUAL BIDS OR PROPOSALS
A. General
This section applies to rejections, in whole or in part, of individual bids or proposals. The City may
reject in whole or in part, any bid not in compliance with all prescribed bidding procedures and
requirements, and may reject for good cause any bid or proposal upon a written finding of the City that
it is in the public interest to do so. No bid shall be considered unless the bid security, properly executed,
has been submitted with the bid as required by the bid documents.
B. Reasons for Rejection
Reasons for rejecting a bid or proposal include but are not limited to:
1. The submitter has not pre - qualified when pre - qualification is required or has been disqualified;
2. The submitter has been declared ineligible by the Commissioner of the Bureau of Labor and
Industries under ORS 279.361;
3. The bid or proposal is non - responsive, that it does not conform in all material respects to bid
documents or requirements, including all prescribed public procurement procedures and
requirements;
4. The supply, service, or construction item offered in the bid or proposal is unacceptable by reason of
its failure to meet the requirements of the solicitation documents or permissible alternates or other
acceptability criteria set forth in the solicitation documents;
5. The submitter is not capable of satisfying the terms and conditions of the public contract in a timely
manner due to financial incapacity; inability to obtain bonding, loss of license, or other objective
cause;
6. The submitter within the last 5 years has been found, in a civil, criminal, or administrative
proceeding, to have committed fraud, misrepresentation, price - rigging, unlawful anti - competitive
conduct, or similar behavior;
7. The submitter has been determined responsible (i.e., adjudicated by a court, or as determined in
writing by the City agency in the case of a public contract) for more than one breach of a public or
private contract or contract:4W. in the last 3 calendar years before the scheduled date of the bid
opening;
8. The security has not been submitted or properly executed as required by the solicitation documents;
9. When applicable, the bidder has not met the emerging small business, disadvantaged business,
minority business, and women business enterprise requirements, if any, established by the City, and
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has not made a good faith effort to comply with the requirements prior to the time bids are opened;
10. The submitter failed to certify in accordance with Section D of this rule;
11. Other circumstances of the particular bid, proposal, or submitter (including submitter's
subcontractors) indicate that acceptance of the bid or proposal would impair the integrity of the
selection process or result in an imprudent contract by the City; or
12. The contractor has discriminated against subcontractors because the subcontractor is a minority,
women or emerging small business enterprise certified under ORS 200.055.
C. Form of Business Entity
The corporate or business form of bidders or proposers shall be subject to scrutiny, so that previously
disqualified bidders or proposers, or their officers and directors, may not by subterfuge, change of
apparent ownership, or other adjustments in formal appearance, avoid application of this rule.
D. Non - discrimination Certification
The bidder or proposer shall certify as part of the bid - that the contractor has not discriminated against
subcontractors because the subcontractor is certified as a minority, women, or emerging small business
enterprise.
30.130 REJECTION OF ALL BIDS OR PROPOSALS
A. Bid Rejection
All bids or proposals may be rejected for good cause upon a written finding by the City that it is in the.] { Formatted: Don't keep lines together
public interest to do so. Notification of rejection of all bids or proposals, along with the good cause
justification and fording of public interest shall be sent to all that submitted a bid or proposal.
B. Rejection Criteria
Reasons for rejecting all bids or proposals include but are not limited to:
1. An error in the solicitation documents, including its terms, conditions, or specifications that
unnecessarily restricted competition for the public contract;
2. The price, quality, or performance presented by the lowest or best responsible bidder or proposer is,
in the City's opinion, too costly or of insufficient gnality to justify acceptance of the bid or proposal.
This criterion may be satisfied evidence that the same goods or services can be obtained otherwise
for less cost;
3. Misconduct, error, or ambiguous or misleading provisions in the bid documents or process threaten
the fairness and integrity of the competitive process; or
Formatted: Default Paragraph Font, Font:
4. Causes other than legitimate market forces threaten the integrity of the competitive procurement Garamond, 12 pt
process. These causes include, but are not limited to, those that tend to limit competition such as Formatted: Font: Garamond
restrictions on competition, collusion, corruption, unlawful anti - competitive conduct, and Formatted: Left, Tab stops: 7 ", Right
inadvertent or intentional errors in the bid documents.
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30.135 PROTESTS OF AWARD Formatted: Don't keep with next, Don't keep
lines together
A. Purpose t Formatted: Indent: Left: 0 ", Don't keep with
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Adversely affected or aggrieved bidders or proposers must exhaust all avenues of administrative review
and relief before seeking judicial review of and decision by the City under the Public Contracting Code Formatted: Don't keep lines together
or these rules.
B. Notice of Award
The written notice of award of the contract shall constitute a final decision by the City to award the
contract if no written protest of the notice of award is filed with the City within seven calendar days of
the notice of award or such other period as provided in the City's solicitation. If a protest is timely filed,
the notice of award is a final decision of the City upon issuance of a written decision denying the protest
and affirming the award. The notice of award and any written decision on a protest shall be sent to
every bidder or proposer who provided an address.
C. Right to Protest t ' Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab stops: Not
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Any actual bidder or proposer who is adversely affected or aggrieved by the City's notice of award of the -
contract to another bidder or proposer on the same solicitation shall have seven calendar days after �F ermatted: Don't keep lines together
notice of award to submit to the City a written protest of the notice of award or such other time as
provided in the solicitation documents. The written protest shall specify the grounds upon which the
protest is based. In order to be adversely affected or aggrieved, a bidder or proposer must itself claim to
be eligible for award of the contract as the lowest responsible bidder or best proposer and must be next
in line for award; i.e., the protester must claim that all lower bidders or better proposers are ineligible for
award because they are non - responsive or non - responsible. The City shall not entertain a protest
submitted after the time period established in this rule or such different period as may be provided in
the City's solicitation.
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D. Authority to Resolve Protests
The City Manager, or designee, shall have the authority to settle or resolve a written protest submitted
under section E of this rule.
E. Decision
If the protest is not settled or resolved by mutual agreement, the City Manager, or designee, shall
promptly issue a written opinion on the protest. If the opinion denies the protest, judicial review of this
decision will be available if provided for by statute. If the City Manager or designee determines that
there is good cause for the protest, the matter shall be submitted to the Board for further action. The
decision of the Board on a protest shall be final. Both the protestor and the person to whom the
contract was awarded shall have a right to present arguments to the Board.
30.140 PROTESTS OTHER THAN NOTICE OF AWARD
A. A protest may be filed to contest the adoption or amendment of these rules, adoption of a class or
contract specific exemption, solicitation documents (including specifications and contract terms), or the
process used in the solicitation. The protest must be filed with the yerCity's Contracts and
Purchasing Office within 7 days of the adoption or amendment of rules or exemptions, the publication
of solicitation documents, or other action being protested. Grounds for protest are limited to:
1. That the City acted contrary to law;
2. That the City's actions unnecessarily restrict competition; or
3. That the City has improperly specified a brand name.
B. The protest must include:
1. Sufficient information to identify the solicitation;
2. The grounds for the protest;
3. Evidence or supporting information; and
4. The relief sought.
C. The City Manager shall, if possible, issue a written decision on the protest under this section at least
three days before any bid or proposal opening that could be affected by the protest.
D. A bidder or proposer who does not protest a proposed contract term included in the solicitation
documents must accept the contract term as included in the solicitation documents.
E. If protest of a solicitation is timely received, the opening date may be extended if necessary to allow .( Formatted: Font: Not sold, Not Italic
consideration for the protest and issuance of any addenda to the solicitation documents. Formatted: Default Paragraph Font, Font:
Garamond, 12 pt
F. Envelopes containing protests of solicitation specifications shall be marked as follows: , Formatted: Font: Gararnond
Formatted: Left, Tab stops: 7 ", Right
,Specification Protest
tSP ifi Code Chan
pagS.45:�(
Bid -oi' 7roposal Title.,Number -, and /pr Other Identification ._ —{ Formatted: Font: Not Bold, Not Italic
{ Formatted: Font: Not Bold, Not Italic )
30.145 NEGOTIATION { Formatted: Font: Not Bold, Not Italic
Formatted: Font: Not Bold
A. Negotiation with Bidders 5J
If a project is competitively bid and all responsive bids from responsible bidders exceed the City's cost
estimate, the City may negotiate with the lowest responsive, responsible bidder, prior to awarding the
contract, in order to solicit value engineering and other options to attempt to bring the project with the
agency's cost estimate.
1. A negotiation with the lowest responsive, responsible bidder pursuant to this paragraph shall not
result in the award of the contract to that bidder if the scope of the project is significantly changed
from the original bid proposal.
2. Notwithstanding any other provision of law, the records of a bidder used in contract negotiation
pursuant to this paragraph are not subject to public inspection until after the negotiated contract has
been awarded or the negotiation process has been terminated.
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B. Negotiation with Proposers
The City may negotiate with proposers after proposal opening in order to try to reach the best possible f - { Formatted: Don't keep lines together 3
contract for the City. Proposals may be revised in the course of negotiations for the best offer, provided
that any revision is not so extensive as to be unfair to other proposers who do not have the opportunity
to negotiate.
30.150 BIDDER DISQUALIFICATION
A. Definitions - As used in this ruk:
1. "Disqualification" means the debarment, exclusion or suspension of a person from right to submit
bids or proposals in response to the City's solicitations for a reasonable, specified period of time
named in the order of disqualification. A contractor or vendor so debarred, excluded or suspended,
is disqualified.
2. "Person" means an individual, partnership, or corporation. Disqualification attaches to and follows
the individual, so that an individual who is a partner in a partnership or an officer or principal in a
corporation which is disqualified may not re -form the business entity as a way of avoiding the
disqualification.
B. Grounds for bid - specific disqualification include:
1. The person does not have sufficient financial ability to perform the contract. If a bond is required
to ensure performance of a contract, evidence that the person can acquire a surety bond in the
amount and type required shall be sufficient to establish financial ability;
2. The person does not have equipment available to perform the contract;
3. The person does not have key personnel available of sufficient experience to perform the contract;
or
4. The person has repeatedly breached contractual obligations to public and private contracting
agencies.
5. The person has discriminated against a subcontractor because the subcontractor is a minority,
women, or emerging small business enterprise certified under ORS 200.055.
6. The person has engaged in conduct prohibited by ORS 200.075, including:
a. If the person has entered into any agreement representing that a disadvantaged, minority,
women or emerging small business enterprise, certified pursuant to ORS 200.055, will be
performing or supplying materials under a public improvement contract without the knowledge
and consent of the certified enterprise;
b. If the person exercises management and decision making control over the internal operations, as • Formatted: Default Paragraph Font, Font:
defined by ORS 200.075(1)(b), of any certified disadvantaged, minority, women or emerging / Garamond, 12 pt
small business enterprise; , Formatted: Font: Garamond
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C. If the person uses a disadvantaged, minority, women or emerging small business enterprise to Field Code changed
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perform contracting services or provide supplies under a public improvement contract to meet
an established Disadvantaged Business Enterprise (DBE) /Minority-
o wned Business Enterpri se (MBE) /Woman -owned Business Ent e rise (W E)/Emer
Small Business (ESB) goal, when the enterprise does not perform a commercially useful
function, as define by ORS 200.075(3), in performing its obligations under the contract.
C. Debarment t Foneatted: Indent: Left 0 ", Tab stops: Not
at 1.63"
A prospective bidder or proposer may be debarred from consideration for an award for a period of up
to three years if convicted of a criminal offense relating to a public contract; convicted of a crime
involving dishonesty (as provided in ORS 279B.130(2)(b), convicted under antitrust statutes, has
violated a contract and debarment for violation was listed in the contract terms, or failure to carry
workers compensation or unemployment insurance.
Debarment shall be by written decision explaining the reasons for the debarment and explaining appeal
rights. Appeals shall be provides under ORS 279B.425. Any appeal must be filed with the City
Btiyer{s Contracts and Purchasing Office within three days after receipt of the notice of debarment.
D. Investigation
The City may make such investigation as is necessary to determine whether a person is qualified. If a
bidder or prospective bidder fails to supply information promptly as requested by the City, such failure
is grounds for disqualification.
E. Notice of Disqualification
The bidder or prospective bidder will be notified in writing by personal service or certified mail of the
City's decision to disqualify the person from bidding with the City. The notice shall contain:
1. The effective date of the disqualification and the effective period of disqualification;
2. The grounds for disqualification from bidding; and
3. A statement of the contractor's appeal rights and applicable appeal deadlines.
F. Appeal of Disqualification t Formatted: Indent: Left: o ", Don't keep with
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If a contractor wishes to appeal the City's decision to disqualify, the contractor must notify the City in••
ted: Don'
writing within three business days after receipt of the notification. The City shall mail its notice to the l o n er t keep with next, Don't keep
contractor by Certified Mail Return Receipt Requested, if not personally served. Appeals shall be Formatted: Don't keep lines together
conducted under the procedures and standards of ORS 279C.445 and 279C.450. A protest of a denial,
revocation, or revision of a prequalification shall be filed within three business days after receipt of
notice of the decision. On receipt of the protest, a hearing shall be set before the Local Contract
Review Board and the hearing shall be held and the decision issued within 30 days of receipt of the
protest. The Local Contract Review Board will consider the action de novo, based on applicable
standards. If the denial is upheld, the person filing the protest shall reimburse the City for costs of
processing the protest.
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A
30.155 CANCELLATION OF INVITATIONS TO BID OR REQUESTS FOR PROPOSALS
A. Cancellation in the Public Interest
An invitation to bid or request for proposal may be canceled, in whole or in part, and all bids received
may be rejected when it is in the public interest as determined by the City. The reasons therefore shall
be made part of the file.
B. Notice of Cancellation
When an invitation to bid or request for proposal is canceled prior to the submission deadline, notice of
cancellation shall be sent to all known holders of the documents. When an invitation to bid or request
for proposals is canceled after deadline for submission, notice shall be sent to those who submitted a bid
or proposal. The notice of cancellation shall:
1. Identify the specification documents;
2. Briefly explain the reason for cancellation; and
3. Where appropriate, explain that an opportunity will be given to compete on any re- solicitation.
30.160 DISPOSITION OF BIDS OR PROPOSALS IN EVENT OF CANCELLATION
A. Prior to Bid Opening
When an invitation for bids or request for proposals is canceled prior to opening of the bids or
proposals, all submissions will be returned unopened, if submitted with a clearly visible return address.
If there is no return address on the envelope, the submissions will be opened to determine the source
and then returned to sender.
B. After Opening - - Formatted: Indent: Left: 0 ", Don't keep with
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When all bids or proposals are rejected, those received shall be retained and become part of the City's
permanent project file. Formatted: Don't keep lines together
30.165 DOCUMENTATION OF AWARD
A. Basis of Award
Following award, a record showing the basis for determining the successful bidder shall be made a part
of the file.
B. Contents of Award Record
The record shall consist of:
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1. Completed bid tabulation sheet; or Garamond, 12 pt
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2. Completed proposal evaluations; and Formatted: Left, Tab stops: 7", Right
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3. Written justification of any rejection of lower bids; or
4. Written explanation for any rejection of proposals for failing to meet mandatory requirements of the
Request for Proposals.
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30.170 FOREIGN CONTRACTOR
If the amount of the contract exceed.; $10,000 and the contract was awarded to a "nonresidcnt bidder", the
•
a contractor is not domiciled in or registered to do business in the State of Oregon. the City shall
require the contractor to promptly provide the Oregon Department of Revenue and the Secretary of State
Corporation Division with any and all information required by those agencies relative the contract between
the contract and City. The City shall have the right to withhold final payment to the contractor under this
Rule until the contractor has met the requirement under the Rule.
30.175 CONTRACT TERMS AND CONDITIONS
A. Required Terms and Conditions
The City shall establish standard terms and conditions for contracts. Contracts shall- include provisions
relating to the following, if applicable. For those provisions referring to statutes, the contract language
shall comply with and implement the statutes.
1. Payment of laborers and material suppliers; contributions to Industrial Accident Fund; liens and
withholding taxes, and drug testing (ORS 279B.220, 279C.505);
2. Payment of claims by public officers, payments to first tier subcontractors and claims by labor and
materials suppliers (ORS 279C.515),
3. Hours of labor (ORS 27913.020, 279B.235, 279C.520, 279C.540);
4. Environmental and natural resources regulations (279B.525);
5. Payment for medical care, compliance with or exemption from workers compensation laws (ORS
279B.230, 279C.530);
6. Prevailing wage rates (ORS 279C.830);
7. Salvaging, recycling, composting or mulching yard waste material, and salvage and recycling of
construction and demolition debris (ORS 279B.225, 270C.510);
8. Certification by contractor of compliance with the Oregon tax laws according to ORS 305.385;
9. Certification by contractor of nondiscrimination as to relations with subcontractors (ORS
279A.110);
10. Inclusion of provisions in contracts with subcontractors, as required by ORS 279C.580; Germane,: default Paragraph Font, Font:
Garamond, 12 pt
11. Progress payments and retainage; Gormatted: Font: Garamond
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12. Bonding requirements (performance and payment bonds, and bonds required to be filed with the
Construction Contractors Board or BOLT); and
13. Any other requirement imposed by federal or state law, regulation, rule or ordinance, which is
applicable to the contract.
B. The City may develop and require contract provisions relating to the following:
1. Termination of the contract;
2. Suspension of the work;
3. Labor and materials liens;
4. Liability in absence of bond;
5. Use of recovered resources and recycled and recyclable materials, including paper, oils, and tires;
6. Any other term to further the City's and the public interest.
C. Terms and Conditions Applicable to Construction Contracts Formatted: Indent: Left: 0 ", Don't keep with
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In cases where the contract calls for work as described in ORS 701.005(2) (i.e.; construction work), the.•
contracts shall contain: Formatted: Don't keep with next, Don't keep
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1. Certification by the "contractor" that the contractor is registered with the Construction Contractors
Board according to ORS 701.035 to 701.055, unless prohibited by federal regulations.
2. Certification by the contractor that all subcontractors performing work as described in ORS
701.005(2) will be registered with the Construction Contractors Board according to ORS 701.035 to
701.055 before the subcontractors commence work under this contractor.
D. Special Terms and Conditions
The City may also establish special terms and conditions applicable to specified categories of contracts.
Any special terms and conditions shall be included in the bid documents and become an integral part of
those contracts.
E. Compliance and Exceptions to Terms and Conditions
1. Bidders and proposers shall be responsible for noting the terms and conditions included applicable
to each set of solicitation documents.
2. By submitting a bid or proposal, the bidder or proposer acknowledges acceptance of and the intent
to abide by the terms and conditions specified in the invitation to bid or request for proposals and
agrees to enter into a contract consistent with state public contracting law requirements. Submission
of a bid or proposal without objection to provisions listed in the form contract included in the
solicitation documents constitutes an offer to enter into a contract on those terms and no
negotiation of those terms is permitted after the contract award.
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T r
3. The City has the right to reject any bid or proposal that takes exception to specifications or to
contract terms unless the right to take exception is expressly granted in the Invitation to Bid or
Request for Proposals. Bids or proposals which take exception to the specifications or contract
terms, or which are made contingent upon the City's acceptance of different or additional
specifications or terms, may be rejected because they are not rcwpeeibleresponsive to the Invitation
to Bid or the Request for Proposals.
4. Any exceptions to any proposed terms and conditions must be dearly stated in writing by the bidder
or proposer in the signed bid or proposal. The City reserves the right to reject or accept any bid or
proposal that takes exception to the terms and conditions, but must take into account any objections
in comparing the bid or proposal to other bids or proposals. Exceptions to the terms and
conditions become contractual obligations only upon written acceptance by the City.
F. Commentary
The following is a list of federal, state, and local agencies of which the City has knowledge that have
enacted ordinances or regulations dealing with the prevention of environmental pollution and the
preservation of natural resources that may affect the performance of contracts:
FEDERAL AGENCIES:
Agriculture
Department of Forest Service
Soil Conservation Service
Defense
Department of Army Corps of Engineers
Energy
Department of Federal Energy Regulatory Commission -
Environmental Protection Agency
Department of Health and Human Services
Housing and Urban Development
Department of Solar Energy Conservation Bank
Interior, Department of
Bureau of Sports Fisheries and Wildlife
Bureau of Outdoor Recreation
Bureau of Land Management
Bureau of Mines
Bureau of Indian Affairs
Bureau of Reclamation
Geological Survey
Minerals Management Service
Labor, Department of
Mine Safety and Health Administration
Occupational Safety and Health Administration
Transportation, Department of
Coast Guard
Federal Highway Administration Formatted: Default Paragraph Font, Font:
Garamond, Water Resources Council
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STATE AGENCIES:
Administrative Services, Department of
Agriculture, Department of
Columbia River Gorge Commission
Consumer & Business Services, Department of Oregon Occupational Safety & Health Division
Energy, Departrnent of
Environmental Quality, Department of
Fish and Wildlife, Department of
Forestry, Department of
Geology and Mineral Industries, Department of
Human Resources, Departrnent of
Land Conservation and Development Commission
Parks and Recreation, Department of
Soil and Water Conservation Commission
State Engineer
State Land Board
Water Resources Board
LOCAL AGENCIES:
City Council
County Court
County Commissioners, Board of
Port Districts
Metropolitan Services Districts
County Service Districts
Sanitary Districts
Water Districts
Fire Protection Districts
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1
30.180 AVAILABILITY OF AWARD DECISIONS — CONTRACT RETENTION
A. Contract Documents
A signed purchase order, agreement, or contract, as applicable, shall be executed with the person to
whom the contract is awarded.
B. Notification to Unsuccessful Bidders + Formatted: Indent: Left: 0 ", Don't keep with
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Unsuccessful bidders and proposers will be provided with the notice of intent to award. Tabulations of
awarded bids shall be posted on the City's website or may be obtained for -a o hax�in per: -or Formatted: Don t keep lines together
n
. , . . - - - • . • • . . .. • ccordance with the ,
;xa er+velf3DeCity's Public Record Request policies.
C. Availability of Files
Completed files, other than confidential materials, shall be available for public review at the City jh
accordance with the City's Public Records policies.
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D. Copies from Files - Formatted: Indent: Left: Cr, Don't keep with
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Copies of material from files, : : • ". • : ::.. ' : - - - , may be obtained tips
. • - - - - . : .: • in accordance with the City's Public Records policies. Formatted: Don't keep lines together
E. Contract Retention
The following requirements on retention of contract documents after award shall apply:
1. For all service contracts the original must be kept for six (6) years after the contract has been
completely executed;
2. Capital improvement contracts must be kept a minimum of 10 years after substantial completion;
3. Goods contracts must be kept for six (6) years after maturity;
4. Intergovernmental and interagency agreements must be kept a minimum of 10 years after substantial
completion; and
5. Other purchasing related documents should be retained according to City retention schedules;
Any copies of the originals must be kept for two (2) years after maturity in all of the categories listed
above.
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30.185 REQUESTS FOR PROPOSALS
A. The City may use the request for proposal process for any contract for which price is not the sole factor
for awarding the contract. When the City uses a request for proposal, the solicitation document shall
state:
1. The necessary contract terms;
2. The evaluation criteria to be applied in awarding the contract and the role of an evaluation
committee, if any;
3. The criteria for awarding the contract, which may include but are not limited to cost, quality, service,
experience, expertise, compatibility with existing or future City assets, product reliability, operating
efficiency, and expansion potential;
4. Complaint processes and remedies available;
5. The provisions made for vendors to comment on any specifications that they believe limit
competition 7 ; and
6. The location where sealed written proposals are to be submitted and the date and deadline for
submittal.
B. All requests for proposals shall be published at least once in a newspaper, journal, trade publication or
similar periodical. In deciding where to advertise, the City shall consider what publication is most likely
to be read by qualified proposers.
C. The City may establish an ad hoc proposal review committee to evaluate any proposal and may provide
for an interview of selected proposers as part of the evaluation process. Any use of a proposal review
committee or interview process shall be detailed in the request for proposals.
30.190 PERFORMANCE AND PAYMENT SECURITY
A. Public Improvements Contract
Except in emergencies, when the requirement may be waived, or unless the requirement is exempted
under these rules, all persons entering into public improvements contracts with the City will be required
to provide:
1. A performance bond in a sum equal to the contract price, and
2. A payment bond in a sum equal to the contract price.
3. Proof that a public works bond with a corporate surety in the amount of $30,000 has been filed with
the Construction Contractors Board for contracts subject to Prevailing Wage Rate Law.
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Public improvement contracts of $10,000 or less are exempt from the bond requirements. Garamond, 12 pt
{ Formatted: Font: Garamond
B. Other Public Contracts
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The City may require performance security for other public contracts. Such requirements shall be stated
in the solicitation documents.
C. Contracts Under $10.000
Performance bonds for a contract under $10,000 shall be utilized only in critical circumstances, so as not
to discourage competition.
D. Requirement for Surety Bond
A surety bond furnished by a surety company authorized to do business in Oregon is the only
acceptable form of performance security unless otherwise specified in the solicitation documents.
E. Time for Submission
Upon request by the City, the apparent successful bidder or proposer must furnish the required
performance bond within ten days of contract award. Prompt submittal of the performance bond is
required to ensure timely project initiation. Failure to furnish the bond prior to the deadline shall result
in rejection of the bid or proposal, forfeiture of bid security, and award to the next lowest responsible
bidder or next highest- scoring proposer.
F. Claims on Payments Bonds
Claims on payment bonds shall comply with ORS 279C600 to 279C.625 and Section 40.060.
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proposals also may be withdrawn in person prior to the scheduled closing upon
presentation of appropriate identification.
2. Unopened bids or proposals withdrawn under subsection (a) above may be released to the
bidder after voiding any date and time stamp used.
3. Requests to withdraw mailed bids or proposals shall be marked as follows:
Bid (or Proposal) Withdrawal
Bid (or Proposal) Number or Other Identification
C. Documentation
All documents relating to the modification or withdrawal of bids or proposals shall be made a
part of the appropriate bid file.
30.075 RECEIPT, OPENING, AND RECORDING OF BIDS AND PROPOSALS
A. Receipt
Upon receipt, each bid, proposal, and modification shall be time- stamped or marked by hand
but not opened and shall be stored in a secure place until opening. If bids, proposals, or
modifications are opened inadvertently or are opened prior to the time and date set for opening
because they were improperly identified, the bids, proposals, or authorized modification
documents shall be resealed and stored for opening at the correct time. When this occurs,
documentation of the procedure shall be placed in the file.
B. Opening and Recording
Bids and modifications shall be opened publicly, at the time, date, and place designated in the
bid documents. If witnesses are present at the bid opening, and to the extent practicable, the
name of each bidder, the bid price(s), and such other information as considered appropriate,
shall be read aloud. On voluminous bids the City may advise bidders as part of the bid
documents that the bid items and prices will not be read aloud.
Proposals may be opened at any time after the deadline for submittal of proposals. A summary
sheet providing basic information about each proposal shall be prepared.
C. Availability
Opened bids shall be available for public inspection prior to award except to the extent the
bidder designates trade secrets or other proprietary data to be confidential (ORS 192.501(2)).
Proposals shall not be available for public inspection until after a contract is awarded and
entered into. The City shall verify and determine that the confidential information claimed to be
exempt is in fact exempt from disclosure under the Oregon Public Records Law. Material so
designated shall accompany the bid and shall be readily separable from the bid or proposal in
order to facilitate public inspection of the non - confidential portion of the bid or proposal.
31
Prices, makes, model, or catalog number of items offered, scheduled delivery dates, and terms of
payment shall be publicly available regardless of any designation to the contrary.
D. Notice of Intent to Award
The City shall provide notice of intent to award to each person that has submitted a bid or
proposal. The notice shall state the date, time and location of the bid award decision. The
notice shall include the name of the person Or entity that staff recommends the contract be
awarded to. The notice shall include any bid comparisons sheets or proposal comparison sheets.
30.080 LATE BIDS, PROPOSALS, WITHDRAWALS, AND MODIFICATIONS
Any bid, proposal, withdrawal, or modification received after the deadline for submission set in the
solicitation documents is late and shall not be considered. The City may use any watch or clock to
determine the time and the determination of the City employee or officer receiving the bids as to
whether a bid, proposal, withdrawal, or modification is late shall be final and not subject to
challenge.
30.085 MISTAKES
A. General
Under extraordinary circumstances, a bid or proposal may be withdrawn after the deadline for
submittal because of an inadvertent nonjudgmental mistake. If the mistake is attributable to an
error in judgment, the bid or proposal may not be withdrawn or corrected. Correction or
withdrawal by reason of nonjudgmental mistake is permissible but only to the extent it is not
contrary to the interest of the City or the fair treatment of other bidders or proposers.
B. Mistakes Discovered after Bid Closing but before Award
This section applies to situations where mistakes in bids are discovered after the submission
deadline but before award.
1. Minor Informalities
Minor informalities are matters of form rather than substance that are evident from the bid
documents, or insignificant mistakes that can be waived or corrected promptly without
prejudice to other bidders or the City; that is, the informality does not affect price, quantity,
quality, delivery, or contractual conditions except in the case of informalities involving unit
prices. Examples include, but are not limited to, the failure of a bidder to:
a. Return the number of signed bids or number of other documents required by the bid
documents
b. Sign the bid form in the designated block so long the bid documents evidence an intent
to be bound; or
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C. Acknowledge receipt of an addendum to the bid documents, but only if:
1. It is clear from the bid that the bidder received the addendum and intended to be
bound by its terms; or
2. The addendum involved did not affect price, quantity, quality, or delivery.
C. Mistakes Where Intended Correct Bid is Evident
If the mistake and the intended correct bid are clearly on the face of the bid form, or can be
substantiated from accompanying documents, the City may accept the bid. Examples of
mistakes that may be clearly evident on the face of the bid form are typographical errors, errors
in extending unit prices, transposition errors, and arithmetical errors. Mistakes that are clearly
evident on the face of the bid form or proposal document also may include instances in which
the intended correct bid or proposal item is made clearly evident by simple arithmetic
calculations. For example, a missing unit price may be established by dividing the total bid or
proposal item by the quantity of units for that item, and a missing or incorrect total bid or
proposal price for an item may be established by multiplying the unit price by the quantity when
those figures are available on the bid or proposal. For discrepancies between unit prices and
extended prices, unit prices shall normally prevail.
D. Mistakes Where Intended Correct Bid is Not Evident
The City may not accept a bid in which a mistake is clearly evident on the face of the bid form
but the intended correct bid is not clearly evident or cannot be substantiated from
accompanying documents.
30.090 TIME FOR ACCEPTANCE
Bids shall be valid and binding offers for 30 days from the deadline to submit bids unless otherwise
specified in the bid documents. Proposals shall be binding and valid offers for 60 days from the
date of the submittal deadline.
30.095 EXTENSION OF TIME FOR ACCEPTANCE OF BID OR PROPOSALS
The City may request orally or in writing that bidders or proposers extend the time in which the City
may accept their offers.
30.100 EVALUATION AND AWARD
A. General
The contract, if awarded, is to be awarded to the lowest responsive and responsible bidder or the
best responsive and responsible proposer. Consistent with the provisions of the solicitation
documents and in the public interest as determined by the City, awards may be made by item,
groups of items, or entire bid or proposal. The City reserves the right to reject any bid or
proposal not in compliance with the solicitation documents or with state law, City Code, or
33
these rules. The City reserves the right to reject any or all bids or proposals upon a finding by
the City that it is in the public interest to do so.
B. Special Requirements
1. Solicitation documents shall set forth any special requirements and criteria that will be used
to determine the lowest responsible bidder. No bid shall be evaluated for any requirement
or criterion that is not disclosed in the bid documents or City regulation.
2. In determining the lowest responsible bidder, the City shall, for the purpose of awarding the
contract, add a percent increase on the bid of a non - resident bidder equal to the percent, if
any, or of the preference give to that bidder in the state in which the bidder resides.
3. The City may rely on a list provided for by the Oregon Department of Administrative
Services pursuant to ORS 279.029(3) for preference provided for by this section.
C. Product Acceptability
1. The solicitation documents shall set forth the evaluation criteria to be used in determining
product acceptability. The City may require the submission of samples, descriptive literature,
technical data, or other material, and may also provide for accomplishing any of the
following prior to award.
a. Demonstration, inspection, or testing of a product prior to award for such characteristics
as quality or workmanship;
b. Examination of such elements as appearance, finish, taste, or feel; or
c. Other examinations to determine whether the product conforms to specifications.
2. The acceptability evaluation is conducted only to determine that a bidder's offering is
acceptable as provided in the bid documents. Any bidder's product, which does not meet
the minimum requirements shall be rejected.
D. Determination of Lowest Responsive and Responsible Bidder
Following determination of product acceptability as set forth in subsection C, if applicable, bids
will be evaluated to determine which bidder offers the lowest cost to the City in accordance with
the evaluation criteria set forth in the bid documents. Only objectively measurable criteria,
which are set forth in the bid documents, shall be applied in determining the lowest responsible
bidder. Examples of such criteria include, but are not limited to, transportation cost, volume
weighing, trade -in allowances, depreciation allowances, cartage penalties, and ownership or life
cycle cost formulas. Evaluation factors need not be precise predictors of actual future costs, but
to the extent possible, such evaluation factors:
1. Are reasonable estimates based upon information the City has available concerning future
use;
34
2. Treat all bids equitably; and
3. Recognize that public policy requires acquisitions and public improvements to be
accomplished at the least cost.
The City shall take into account any preferences provided by these rules in determining the
lowest bid.
E. Determination of Best, Responsive, and Responsible Proposer
Proposals will be evaluated to determine which proposer offers the best solution to the City in
accordance with the evaluation criteria set forth in the solicitation documents. Only the criteria
set forth in the solicitation documents shall be applied. The criteria shall be as objective as
possible. Examples of evaluation criteria may include, but are not limited to, cost, quality,
service, compatibility, product reliability, operating efficiency, expansion potential, performance
history on other private and public contracts, experience of key personnel, adequacy of
equipment and /or physical plan, financial wherewithal, sources of supply, references and
warranty provisions. Evaluation factors need not be precise predictors of actual future costs and
performance, but to the extent possible, such evaluation factors shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. To the extent that the proposal involves a public improvement, recognize that public policy
requires public improvements to be accomplished at the least cost.
F. In evaluating proposals, the City may use any of the following methods:
1. An award based solely on an evaluation of the written proposals;
2. Discussions with a number of proposers leading to a best and final offer from each proposer
and an evaluation of the best and final offers;
3. An award based on the written proposals and interview performance;
4. Serial negotiations, staring with the highest ranked proposer;
5. Competitive simultaneous negotiations;
6. A multi-tiered process, with some number of proposer being eliminated at each stage of the
process;
7. A multi-stage process, with a qualifications determination at the first stage of the process,
followed by cost considerations; or
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8. Any other method or combination of methods designed to best serve the needs of the City
and its taxpayers.
The solicitation document shall describe the process to be followed.
G. No Assignment or Transfer of Contract Rights
Unless an express provision of the public contract otherwise provides, the contractor shall not
assign, sell or transfer rights, nor delegate responsibilities, under public contract, either in whole
or in part, without first obtaining the City's prior written consent. Unless otherwise agreed by
the City in writing, such consent shall not relieve the contractor of any obligations under a
public contract, and any assignee or transferee shall be considered the agent of the contract and
bound to abide by all provisions of the public contract. Except in the event of a novation, if the
City consents in writing to an assignment, sale, or transfer of the contractor's rights and
responsibilities, the contractor and its surety, if any, shall remain ultimately liable to the City for
complete performance of the public contract as if no such assignment, sale, or transfer had
occurred.
30.105 LIFE CYCLE COST ANALYSIS
A. In determining the lowest responsible bidder, in the award of a contract, the City may use the
cycle costing. As used in this rule, life cycle costing means determining the cost of a product for
its useful life.
B. The City shall follow these procedures:
1. At the time of writing specifications for the product, the City shall identify those factors
which will have cost implications over the life of the product and which, for evaluation
purposes, will be used to adjust the bid or proposal price of the product.
2. The solicitation documents shall set out clearly the factors and methodology to be used in
life cycle cost adjustments.
3. The results of life cycle costing adjustments shall be applied to the bid or proposal price of
the product(s) offered. The bid or proposal that results in the lowest overall ownership cost,
taking into account the life cycle costing adjustments, shall be considered the lowest bid or
best proposal for purposes of bid or proposal price evaluation.
30.110 RESPONSIBILITY
A. A responsible bidder or proposer is one who has:
1. Adequate financial resources to perform the contract, or the ability to obtain such resources.
The City shall require acceptable evidence of the bidder's or proposer's ability to provide or
obtain the required financial resources. Acceptable evidence normally consists of, but is not
limited to, current and recent balance sheets; income statements; cash flow statements;
and /or a performance bond from an acceptable surety in an amount equal to the bid or
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proposal price. Such evidence may also include a commitment of specific arrangement that
will be in existence at the time of contract award to rent, purchase, or otherwise acquire the
needed facilities, equipment, or other resources;
2. The ability to comply with the required or proposed delivery or performing schedule, taking
into consideration all existing commercial and public business commitments;
3. A satisfactory performance record. A bidder or proposer who is, or recently has been,
seriously deficient in contract performance shall be presumed to be non - responsible, unless
the City determines that the circumstances were properly beyond the contractor's control or
that the contractor has taken appropriate corrective action. Record of failure to perform
acceptably is strong evidence of non - responsibility. The City shall consider the number of
contracts involved and the extent of the deficiency of each in making this evaluation. In
addition, the City may consider whether the bidder's performance history demonstrates
responsibility as defined in ORS 200.005(11) and 200.045(3);
4. Key personnel available of sufficient experience, as determined by the City, to perform the
contracts;
5. The necessary organization, experience, accounting and operational controls, and technical
skills, or the ability to obtain these skills and abilities as required to satisfactorily perform the
contract. These may include, as appropriate, such elements as production control
procedures, property control systems, and quality assurance measures applicable to materials
to be produced or services to be performed by the bidder and its proposed subcontractor(s);
6. The necessary production, construction, and technical equipment and facilities, or the ability
to obtain them;
7. A satisfactory record of integrity;
8. For contractors on public improvement contracts, has not been determined to be not
responsible by the Construction Contractors Board; and
9. Is otherwise qualified and eligible to receive award under applicable laws and regulations.
B. The City shall consult with the Construction Contractor's Board concerning the responsibility of
any person to whom a public improvement contract is proposed to be awarded, and shall
comply with the reporting requirements of ORS 279.375. The City has the right, prior to
awarding any public contract, to make such investigation as is necessary to determine whether a
bidder or proposer is responsible. This investigation may include, but is not limited to:
1. An inquiry into the responsibility of proposed subcontractors and suppliers.
2. Requiring a bidder or proposer to demonstrate its financial ability to perform the contract as
provided in subsection A.1 of this rule. In exercising this right, the City shall notify the
apparent successful bidder or proposer in writing to submit such documentation as the City
deems necessary to complete a thorough evaluation of financial ability.
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3. By submitting a bid or proposal, a bidder or proposer authorizes the City to request any
credit report information the City deems necessary to investigate and evaluate financial
responsibility to perform the contract(s).
C. Failure of a bidder or proposer to promptly supply information requested by the City during its
responsibility investigation shall be grounds for a finding of non - responsibility.
D. Only bids and proposals from responsible bidders or proposers, as defined in this rule, shall be
eligible for contract award. Bid or proposals from non - responsible bidders or proposers shall be
rejected as provided in PCR 30.115.
30.115 RESPONSIVE AND NON - RESPONSIVE BIDS OR PROPOSALS; ACCEPTANCE AND
REJECTION
A. A "responsive bid or proposal" is one that complies in all material aspects with the solicitation
documents and with all prescribed public bidding procedures and requirements.
B. A "non- responsive bid or proposal" is one which:
1. Omits, or is unclear as to the price and the price cannot be determined in the bid or
proposal documents;
2. Offers goods or services of a quality or quantity inferior to that requested in the solicitation
documents;
3. Does not meet the delivery date requirements specified in the solicitation documents;
4. Takes exception to the terms and conditions of the solicitation documents other than as
allowed by these rules or the solicitation documents;
5. Is conditional upon the City's acceptance of terms and conditions difference from those
contained in solicitation documents, except as allowed by these rules or the solicitation
documents; or
6. Contains a deviation which, if the bid or proposal were accepted, would give the bidder or
proposer a substantial advantage or benefit not shared by other bidders or proposers to the
solicitation documents.
C. The City shall accept, and consider for award, only those bids or proposals, which are responsive
as defined in this rule. Non- responsive bids or proposals shall be rejected, as provided in PCR
30.115.
30.120 LOW TIE BIDS
A. Definition
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Low tie bids are low responsive bids from responsible bidders that are identical in price, fitness,
availability and quality and which meet all the requirements and criteria set forth in the bid
documents.
B. Award
1. If low tie bids are received, a preference shall be given to goods and services that have been
manufactured or produced in Oregon.
2. If the bids remain tied after application of the Subsection 1, preference shall be given to the
bidder whose principal offices or headquarters are located in Oregon.
3. If the bids remain tied after application of Subsections 1 and 2, the award shall be made by
drawing lots among any tied Oregon bidders. Such bidders shall be given notice and an
opportunity to be present when the lots are drawn.
4. If there are no Oregon bidders after application of subsections 1 and 2, award of the contract
shall be made by drawing lots.
30.125 REJECTION OF INDIVIDUAL BIDS OR PROPOSALS
A. General
This section applies to rejections, in whole or in part, of individual bids or proposals. The City
may reject in whole or in part, any bid not in compliance with all prescribed bidding procedures
and requirements, and may reject for good cause any bid or proposal upon a written finding of
the City that it is in the public interest to do so. No bid shall be considered unless the bid
security, properly executed, has been submitted with the bid as required by the bid documents.
B. Reasons for Rejection
Reasons for rejecting a bid or proposal include but are not limited to:
1. The submitter has not pre- qualified when pre - qualification is required or has been
disqualified;
2. The submitter has been declared ineligible by the Commissioner of the Bureau of Labor and
Industries under ORS 279.361;
3. The bid or proposal is non - responsive, that it does not conform in all material respects to
bid documents or requirements, including all prescribed public procurement procedures and
requirements;
4. The supply, service, or construction item offered in the bid or proposal is unacceptable by
reason of its failure to meet the requirements of the solicitation documents or permissible
alternates or other acceptability criteria set forth in the solicitation documents;
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5. The submitter is not capable of satisfying the terms and conditions of the public contract in
a timely manner due to financial incapacity; inability to obtain bonding, loss of license, or
other objective cause;
6. The submitter within the last 5 years has been found, in a civil, criminal, or administrative
proceeding, to have committed fraud, misrepresentation, price- rigging, unlawful anti-
competitive conduct, or similar behavior;
7. The submitter has been determined responsible (i.e., adjudicated by a court, or as determined
in writing by the City agency in the case of a public contract) for more than one breach of a
public or private contract or contracts in the last 3 calendar years before the scheduled date
of the bid opening;
8. The security has not been submitted or properly executed as required by the solicitation
documents;
9. When applicable, the bidder has not met the emerging small business, disadvantaged
business, minority business, and women business enterprise requirements, if any, established
by the City, and has not made a good faith effort to comply with the requirements prior to
the time bids are opened;
10. The submitter failed to certify in accordance with Section D of this rule;
11. Other circumstances of the particular bid, proposal, or submitter (including submitter's
subcontractors) indicate that acceptance of the bid or proposal would impair the integrity of
the selection process or result in an imprudent contract by the City; or
12. The contractor has discriminated against subcontractors because the subcontractor is a
minority, women or emerging small business enterprise certified under ORS 200.055.
C. Form of Business Entity
The corporate or business form of bidders or proposers shall be subject to scrutiny, so that
previously disqualified bidders or proposers, or their officers and directors, may not by
subterfuge, change of apparent ownership, or other adjustments in formal appearance, avoid
application of this rule.
D. Non - discrimination Certification
The bidder or proposer shall certify as part of the bid that the contractor has not discriminated
against subcontractors because the subcontractor is certified as a minority, women, or emerging
small business enterprise.
30.130 REJECTION OF ALL BIDS OR PROPOSALS
A. Bid Rejection
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All bids or proposals may be rejected for good cause upon a written finding by the City that it is
in the public interest to do so. Notification of rejection of all bids or proposals, along with the
good cause justification and finding of public interest shall be sent to all that submitted a bid or
proposal.
B. Rejection Criteria
Reasons for rejecting all bids or proposals include but are not limited to:
1. An error in the solicitation documents, including its terms, conditions, or specifications that
unnecessarily restricted competition for the public contract;
2. The price, quality, or performance presented by the lowest or best responsible bidder or
proposer is, in the City's opinion, too costly or of insufficient quality to justify acceptance of
the bid or proposal. This criterion may be satisfied evidence that the same goods or services
can be obtained otherwise for less cost;
3. Misconduct, error, or ambiguous or misleading provisions in the bid documents or process
threaten the fairness and integrity of the competitive process; or
4. Causes other than legitimate market forces threaten the integrity of the competitive
procurement process. These causes include, but are not limited to, those that tend to limit
competition such as restrictions on competition, collusion, corruption, unlawful anti-
competitive conduct, and inadvertent or intentional errors in the bid documents.
30.135 PROTESTS OF AWARD
A. Purpose
Adversely affected or aggrieved bidders or proposers must exhaust all avenues of administrative
review and relief before seeking judicial review of and decision by the City under the Public
Contracting Code or these rules.
B. Notice of Award
The written notice of award of the contract shall constitute a final decision by the City to award
the contract if no written protest of the notice of award is filed with the City within seven
calendar days of the notice of award or such other period as provided in the City's solicitation.
If a protest is timely filed, the notice of award is a final decision of the City upon issuance of a
written decision denying the protest and affirming the award. The notice of award and any
written decision on a protest shall be sent to every bidder or proposer who provided an address.
C. Right to Protest
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Any actual bidder or proposer who is adversely affected or aggrieved by the City's notice of
award of the contract to another bidder or proposer on the same solicitation shall have seven
calendar days after notice of award to submit to the City a written protest of the notice of award
or such other time as provided in the solicitation documents. The written protest shall specify
the grounds upon which the protest is based. In order to be adversely affected or aggrieved, a
bidder or proposer must itself claim to be eligible for award of the contract as the lowest
responsible bidder or best proposer and must be next in line for award; i.e., the protester must
claim that all lower bidders or better proposers are ineligible for award because they are non-
responsive or non - responsible. The City shall not entertain a protest submitted after the time
period established in this rule or such different period as may be provided in the City's
solicitation.
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D. Authority to Resolve Protests
The City Manager, or designee, shall have the authority to settle or resolve a written protest
submitted under section E of this rule.
E. Decision
If the protest is not settled or resolved by mutual agreement, the City Manager, or designee, shall
promptly issue a written opinion on the protest. If the opinion denies the protest, judicial
review of this decision will be available if provided for by statute. If the City Manager or
designee determines that there is good cause for the protest, the matter shall be submitted to the
Board for further action. The decision of the Board on a protest shall be final. Both the
protestor and the person to whom the contract was awarded shall have a right to present
arguments to the Board.
30.140 PROTESTS OTHER THAN NOTICE OF AWARD
A. A protest may be filed to contest the adoption or amendment of these rules, adoption of a class
or contract specific exemption, solicitation documents (including specifications and contract
terms), or the process used in the solicitation. The protest must be filed with the City Buyer
within 7 days of the adoption or amendment of rules or exemptions, the publication of
solicitation documents, or other action being protested. Grounds for protest are limited to:
1. That the City acted contrary to law;
2. That the City's actions unnecessarily restrict competition; or
3. That the City has improperly specified a brand name.
B. The protest must include:
1. Sufficient information to identify the solicitation;
2. The grounds for the protest;
3. Evidence or supporting information; and
4. The relief sought.
C. The City Manager shall, if possible, issue a written decision on the protest under this section at
least three days before any bid or proposal opening that could be affected by the protest.
D. A bidder or proposer who does not protest a proposed contract term included in the solicitation
documents must accept the contract term as included in the solicitation documents.
E. If protest of a solicitation is timely received, the opening date may be extended if necessary to
allow consideration for the protest and issuance of any addenda to the solicitation documents.
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F. Envelopes containing protests of solicitation specifications shall be marked as follows:
Specification Protest
Bid or Proposal Number or Other Identification
30.145 NEGOTIATION
A. Negotiation with Bidders
If a project is competitively bid and all responsive bids from responsible bidders exceed the
City's cost estimate, the City may negotiate with the lowest responsive, responsible bidder, prior
to awarding the contract, in order to solicit value engineering and other options to attempt to
bring the project with the agency's cost estimate.
1. A negotiation with the lowest responsive, responsible bidder pursuant to this paragraph shall
not result in the award of the contract to that bidder if the scope of the project is
significantly changed from the original bid proposal.
2. Notwithstanding any other provision of law, the records of a bidder used in contract
negotiation pursuant to this paragraph are not subject to public inspection until after the
negotiated contract has been awarded or the negotiation process has been terminated.
B. Negotiation with Proposers
The City may negotiate with proposers after proposal opening in order to try to reach the best
possible contract for the City. Proposals may be revised in the course of negotiations for the
best offer, provided that any revision is not so extensive as to be unfair to other proposers who
do not have the opportunity to negotiate.
30.150 BIDDER DISQUALIFICATION
A. Definitions - As used in this rule:
1. "Disqualification" means the debarment, exclusion or suspension of a person from right to
submit bids or proposals in response to the City's solicitations for a reasonable, specified
period of time named in the order of disqualification. A contractor or vendor so debarred,
excluded or suspended, is disqualified.
2. "Person" means an individual, partnership, or corporation. Disqualification attaches to and
follows the individual, so that an individual who is a partner in a partnership or an officer or
principal in a corporation which is disqualified may not re -form the business entity as a way
of avoiding the disqualification.
B. Grounds for bid - specific disqualification include:
1. The person does not have sufficient financial ability to perform the contract. If a bond is
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required to ensure performance of a contract, evidence that the person can acquire a surety
bond in the amount and type required shall be sufficient to establish financial ability;
2. The person does not have equipment available to perform the contract;
3. The person does not have key personnel available of sufficient experience to perform the
contract; or •
4. The person has repeatedly breached contractual obligations to public and private contracting
agencies.
5. The person has discriminated against a subcontractor because the subcontractor is a
minority, women, or emerging small business enterprise certified under ORS 200.055.
6. The person has engaged in conduct prohibited by ORS 200.075, including:
a. If the person has entered into any agreement representing that a disadvantaged, minority,
women or emerging small business enterprise, certified pursuant to ORS 200.055, will be
performing or supplying materials under a public improvement contract without the
knowledge and consent of the certified enterprise;
b. If the person exercises management and decision making control over the internal
operations, as defined by ORS 200.075(1)(b), of any certified disadvantaged, minority,
women or emerging small business enterprise;
c. If the person uses a disadvantaged, minority, women or emerging small business
enterprise to perform contracting services or provide supplies under a public
improvement contract to meet an established DBE /MBE /WBE /ESB goal, when the
enterprise does not perform a commercially useful function, as define by ORS
200.075(3), in performing its obligations under the contract.
C. Debarment
A prospective bidder or proposer may be debarred from consideration for an award for a period
of up to three years if convicted of a criminal offense relating to a public contract; convicted of a
crime involving dishonesty (as provided in ORS 279B.130(2)(b), convicted under antitrust
statutes, has violated a contract and debarment for violation was listed in the contract terms, or
failure to carry workers compensation or unemployment insurance.
Debarment shall be by written decision explaining the reasons for the debarment and explaining
appeal rights. Appeals shall be provides under ORS 279B.425. Any appeal must be filed with
the City Buyer within three days after receipt of the notice of debarment.
D. Investigation
The City may make such investigation as is necessary to determine whether a person is qualified.
If a bidder or prospective bidder fails to supply information promptly as requested by the City,
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such failure is grounds for disqualification.
E. Notice of Disqualification
The bidder or prospective bidder will be notified in writing by personal service or certified mail
of the City's decision to disqualify the person from bidding with the City. The notice shall
contain:
1. The effective date of the disqualification and the effective period of disqualification;
2. The grounds for disqualification from bidding; and
3. A statement of the contractor's appeal rights and applicable appeal deadlines.
F. Appeal of Disqualification
If a contractor wishes to appeal the City's decision to disqualify, the contractor must notify the
City in writing within three business days after receipt of the notification. The City shall mail its
notice to the contractor by Certified Mail Return Receipt Requested, if not personally served.
Appeals shall be conducted under the procedures and standards of ORS 279C.445 and
279C.450. A protest of a denial, revocation, or revision of a prequalification shall be filed within
three business days after receipt of notice of the decision. On receipt of the protest, a hearing
shall be set before the Board and the hearing shall be held and the decision issued within 30 days
of receipt of the protest. The Board will consider the action de novo, based on applicable
standards. If the denial is upheld, the person filing the protest shall reimburse the City for costs
of processing the protest.
30.155 CANCELLATION OF INVITATIONS TO BID OR REQUESTS FOR PROPOSALS
A. Cancellation in the Public Interest
An invitation to bid or request for proposal may be canceled, in whole or in part, and all bids
received may be rejected when it is in the public interest as determined by the City. The reasons
therefore shall be made part of the file.
B. Notice of Cancellation
When an invitation to bid or request for proposal is canceled prior to the submission deadline,
notice of cancellation shall be sent to all known holders of the documents. When an invitation
to bid or request for proposals is canceled after deadline for submission, notice shall be sent to
those who submitted a bid or proposal. The notice of cancellation shall:
1. Identify the specification documents;
2. Briefly explain the reason for cancellation; and
3. Where appropriate, explain that an opportunity will be given to compete on any re-
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solicitation.
30.160 DISPOSITION OF BIDS OR PROPOSALS IN EVENT OF CANCELLATION
A. Prior to Bid Opening
When an invitation for bids or request for proposals is canceled prior to opening of the bids or
proposals, all submissions will be returned unopened, if submitted with a clearly visible return
address. If there is no return address on the envelope, the submissions will be opened to
determine the source and then returned to sender.
B. After Opening
When all bids or proposals are rejected, those received shall be retained and become part of the
City's permanent file.
30.165 DOCUMENTATION OF AWARD
A. Basis of Award
Following award, a record showing the basis for determining the successful bidder shall be made
a part of the file.
B. Contents of Award Record
The record shall consist of:
1. Completed bid tabulation sheet; or
2. Completed proposal evaluations; and
3. Written justification of any rejection of lower bids; or
4. Written explanation for any rejection of proposals for failing to meet mandatory
requirements of the Request for Proposals.
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30.170 FOREIGN CONTRACTOR
If the amount of the contract exceeds $10,000 and the contract was awarded to a "nonresident
bidder ", the contractor shall promptly report to the Oregon Department of Revenue on forms to be
provided by the Department of Revenue the total contract price, terms of payment, length of
contract and such other information as the Department of Revenue may require before final
payment can be received on the contract. A copy of the report shall be forwarded to the City. The
City shall satisfy itself that the above requirements have been complied with before it issues final
payment on the contract. For the purposes of this rule, a foreign contractor is one who is not
domiciled in or registered to do business in the State of Oregon.
30.175 CONTRACT TERMS AND CONDITIONS
A. Required Terms and Conditions
The City shall establish standard terms and conditions for contracts. Contracts shall include
provisions relating to the following, if applicable. For those provisions referring to statutes, the
contract language shall comply with and implement the statutes.
1. Payment of laborers and material suppliers; contributions to Industrial Accident Fund; liens
and withholding taxes, and drug testing (ORS 279B.220, 279C.505);
2. Payment of claims by public officers, payments to first tier subcontractors and claims by
labor and materials suppliers (ORS 279C.515),
3. Hours of labor (ORS 279B.020, 279B.235, 279C.520, 279C.540);
4. Environmental and natural resources regulations (279B.525);
5. Payment for medical care, compliance with or exemption from workers compensation laws
(ORS 279B.230, 279C.530);
6. Prevailing wage rates (ORS 279C.830);
7. Salvaging, recycling, composting or mulching yard waste material, and salvage and recycling
of construction and demolition debris (ORS 279B.225, 270C.510);
8. Certification by contractor of compliance with the Oregon tax laws according to ORS
305.385;
9. Certification by contractor of nondiscrimination as to relations with subcontractors (ORS
279A.110);
10. Inclusion of provisions in contracts with subcontractors, as required by ORS 279C.580;
11. Progress payments and retainage;
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12. Bonding requirements (performance and payment bonds, and bonds required to be filed
with the Construction Contractors Board or BOLI); and
13. Any other requirement imposed by federal or state law, regulation, rule or ordinance, which
is applicable to the contract.
B. The City may develop and require contract provisions relating to the following:
1. Termination of the contract;
2. Suspension of the work;
3. Labor and materials liens;
4. Liability in absence of bond;
5. Use of recovered resources and recycled and recyclable materials, including paper, oils, and
tires;
6. Any other term to further the City's and the public interest.
C. Terms and Conditions Applicable to Construction Contracts
In cases where the contract calls for work as described in ORS 701.005(2) (i.e.; construction
work), the contracts shall contain:
1. Certification by the "contractor" that the contractor is registered with the Construction
Contractors Board according to ORS 701.035 to 701.055, unless prohibited by federal
regulations.
2. Certification by the contractor that all subcontractors performing work as described in ORS
701.005(2) will be registered with the Construction Contractors Board according to ORS
701.035 to 701.055 before the subcontractors commence work under this contractor.
D. Special Terms and Conditions
The City may also establish special terms and conditions applicable to specified categories of
contracts. Any special terms and conditions shall be included in the bid documents and become
an integral part of those contracts.
E. Compliance and Exceptions to Terms and Conditions
1. Bidders and proposers shall be responsible for noting the terms and conditions included
applicable to each set of solicitation documents.
2. By submitting a bid or proposal, the bidder or proposer acknowledges acceptance of and the
intent to abide by the terms and conditions specified in the invitation to bid or request for
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proposals and agrees to enter into a contract consistent with state public contracting law
requirements. Submission of a bid or proposal without objection to provisions listed in the
form contract included in the solicitation documents constitutes an offer to enter into a
contract on those terms and no negotiation of those terms is permitted after the contract
award.
3. The City has the right to reject any bid or proposal that takes exception to specifications or
to contract terms unless the right to take exception is expressly granted in the Invitation to
Bid or Request for Proposals. Bids or proposals which take exception to the specifications
or contract terms, or which are made contingent upon the City's acceptance of different or
additional specifications or terms, may be rejected because they are not responsible to the
Invitation to Bid or the Request for Proposals.
4. Any exceptions to any proposed terms and conditions must be clearly stated in writing by
the bidder or proposer in the signed bid or proposal. The City reserves the right to reject or
accept any bid or proposal that takes exception to the terms and conditions, but must take
into account any objections in comparing the bid or proposal to other bids or proposals.
Exceptions to the terms and conditions become contractual obligations only upon written
acceptance by the City.
F. Commentary
The following is a list of federal, state, and local agencies of which the City has knowledge that
have enacted ordinances or regulations dealing with the prevention of environmental pollution
and the preservation of natural resources that may affect the performance of contracts:
FEDERAL AGENCIES:
Agriculture
Department of Forest Service
Soil Conservation Service
Defense
Department of Army Corps of Engineers
Energy
Department of Federal Energy Regulatory Commission
Environmental Protection Agency
Department of Health and Human Services
Housing and Urban Development
Department of Solar Energy Conservation Bank
Interior, Department of
Bureau of Sports Fisheries and Wildlife
Bureau of Outdoor Recreation
Bureau of Land Management
Bureau of Mines
Bureau of Indian Affairs
Bureau of Reclamation
Geological Survey
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Minerals Management Service
Labor, Department of
Mine Safety and Health Administration
Occupational Safety and Health Administration
Transportation, Department of
Coast Guard
Federal Highway Administration
Water Resources Council
STATE AGENCIES:
Administrative Services, Department of
Agriculture, Department of
Columbia River Gorge Commission
Consumer & Business Services, Department of Oregon Occupational Safety & Health
Division
Energy, Department of
Environmental Quality, Department of
Fish and Wildlife, Department of
Forestry, Department of
Geology and Mineral Industries, Department of
Human Resources, Department of
Land Conservation and Development Commission
Parks and Recreation, Department of
Soil and Water Conservation Commission
State Engineer
State Land Board
Water Resources Board
LOCAL AGENCIES:
City Council
County Court
County Commissioners, Board of
Port Districts
Metropolitan Services Districts
County Service Districts
Sanitary Districts
Water Districts
Fire Protection Districts
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30.180 AVAILABILITY OF AWARD DECISIONS - CONTRACT RETENTION
A. Contract Documents
A signed purchase order, agreement, or contract, as applicable, shall be executed with the person
to whom the contract is awarded.
B. Notification to Unsuccessful Bidders
Unsuccessful bidders and proposers will be provided with the notice of award. Tabulations of
awarded bids may be obtained for a nominal charge in person or by submitting to the City a
written request stating the bid number and a self - addressed, stamped envelope.
C. Availability of Files
Completed files, other than confidential materials, shall be available for public review at the City.
D. Copies from Files
Copies of material from files, other than previously described tabulation sheets, may be obtained
upon payment of a reasonable copying charge.
E. Contract Retention
The following requirements on retention of contract documents after award shall apply:
1. For all service contracts the original must be kept for six (6) years after the contract has been
completely executed;
2. Capital improvement contracts must be kept a minimum of 10 years after substantial
completion;
3. Goods contracts must be kept for six (6) years after maturity;
4. Intergovernmental and interagency agreements must be kept a minimum of 10 years after
substantial completion; and
5. Other purchasing related documents should be retained according to City retention
schedules;
Any copies of the originals must be kept for two (2) years after maturity in all of the categories
listed above.
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30.185 REQUESTS FOR PROPOSALS
A. The City may use the request for proposal process for any contract for which price is not the
sole factor for awarding the contract. When the City uses a request for proposal, the solicitation
document shall state:
1. The necessary contract terms;
2. The evaluation criteria to be applied in awarding the contract and the role of an evaluation
committee, if any;
3. The criteria for awarding the contract, which may include but are not limited to cost, quality,
service, experience, expertise, compatibility, product reliability, operating efficiency, and
expansion potential;
4. Complaint processes and remedies available;
5. The provisions made for vendors to comment on any specifications that they believe limit
competition.; and
6. The location where sealed written proposals are to be submitted and the date and deadline
for submittal.
B. All requests for proposals shall be published at least once in a newspaper, journal, trade
publication or similar periodical. In deciding where to advertise, the City shall consider what
publication is most likely to be read by qualified proposers.
C. The City may establish an ad hoc proposal review committee to evaluate any proposal and may
provide for an interview of selected proposers as part of the evaluation process. Any use of a
proposal review committee or interview process shall be detailed in the request for proposals.
30.190 PERFORMANCE AND PAYMENT SECURITY
A. Public Improvements Contract
Except in emergencies, when the requirement may be waived, or unless the requirement is
exempted under these rules, all persons entering into public improvements contracts with the
City will be required to provide:
1. A performance bond in a sum equal to the contract price, and
2. A payment bond in a sum equal to the contract price.
3. Proof that a public works bond with a corporate surety in the amount of $30,000 has been
filed with the Construction Contractors Board for contracts subject to Prevailing Wage Rate
Law.
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Public improvement contracts of $10,000 or less are exempt from the bond requirements.
B. Other Public Contracts
The City may require performance security for other public contracts. Such requirements shall
be stated in the solicitation documents.
C. Contracts Under $10.000
Performance bonds for a contract under $10,000 shall be utilized only in critical circumstances,
so as not to discourage competition.
D. Requirement for Surety Bond
A surety bond furnished by a surety company authorized to do business in Oregon is the only
acceptable form of performance security unless otherwise specified in the solicitation
documents.
E. Time for Submission
Upon request by the City, the apparent successful bidder or proposer must furnish the required
performance bond within ten days of contract award. Prompt submittal of the performance
bond is required to ensure timely project initiation. Failure to furnish the bond prior to the
deadline shall result in rejection of the bid or proposal, forfeiture of bid security, and award to
the next lowest responsible bidder or next highest- scoring proposer.
F. Claims on Payments Bonds
Claims on payment bonds shall comply with ORS 279C600 to 279C.625 and Section 40.060.
30.195 RIGHT TO AUDIT RECORDS
A. Records Maintenance; Access
Contractors and subcontractors shall maintain all fiscal records relating to public contracts in
accordance with generally accepted accounting principles. In addition, contractors and
subcontractors shall maintain any other records necessary to clearly document (i) their
performance and (ii) any claims arising from or relating to their performance under a public
contract. Contractors and subcontractors shall make all records pertaining to their performance
and any claims under a public contract accessible to the City at reasonable times and places,
regardless whether litigation has been filed as to such claims.
B. Audit of Cost or Pricing Data
The City may, at reasonable times and places, audit the books and records of any person who
has submitted cost or pricing data according to the terms of a contract to the extent that such
books and records relate to such cost or pricing data. Any person who receives a contract, for
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which cost or pricing data are required, shall maintain such books and records that relate to such
cost or pricing data for three (3) years from the date of final payment under the contract, unless
a shorter period is otherwise authorized in writing.
C. Contract Audit
The City shall be entitled to inspect, examine, copy, and audit the books and records of a
contractor or any subcontractor under any contract or subcontract to the extent that such books
and records relate to the performance of such contract or subcontract. Such books and records
shall be maintained by the contractor for a period of three (3) years from the date of final
payment under the prime contract and by the subcontract for a period of three (3) years from
the date of final payment under the subcontract, or until the conclusion of any audit,
controversy or litigation arising out of or related to the contract, whichever date is later, unless a
shorter period is otherwise authorized in writing.
30.200 RIGHT TO INSPECT PLANT
A. Time for Inspection
The City may, at reasonable times, inspect the part of the plant or place of business of a
contractor or any subcontractor that is related to the performance of any contract awarded.
B. Access to Plant or Place of Business
As a condition of bidding, bidders agree that the City may enter a contractor's or subcontractor's
plant or place of business during normal business hours for the following purposes:
1. Inspect and /or test supplies or services for acceptance by the City pursuant to the terms of
the bid; or
2. Investigate in connection with a bidder's application, a minority business certification, or
bidder disqualification.
C. Contractual Provisions
Contracts may provide that the City may inspect supplies and services at the contractor's or
subcontractor's facility and perform tests to determine whether they conform to the bid
documents, or, after award, to contract requirements, and are therefore acceptable. Such
inspections and tests shall be conducted in accordance with the terms of the contract.
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D. Procedures for Trial Use and Testing
The City may establish operational procedures governing the testing and trial use of equipment,
materials, and the application of resulting information and data to specifications or
procurements.
E. Conduct of Inspections
1. Inspectors
Inspections or tests shall be performed so as not to unduly delay the work of the contractor
or subcontractor. No change of any provision of the specifications or the contract may be
required by the inspector without written authorization of the City, unless otherwise
specified in the solicitation documents. The presence or absence of an inspector shall not
relieve the contractor or subcontractor from any requirement of the contract.
2. Location
When an inspection is made in the plant or place of business of a contractor or
subcontractor, such contractor or subcontractor shall provide without charge all reasonable
facilities and assistance for the safety and convenience of the person performing the
inspection or testing.
3. Time of Testing or Inspection
Inspection or testing of supplies and services performed at the plant or place of business of
any contractor or subcontractor shall be performed at reasonable times during normal
business hours.
F. Inspection of Construction Projects
On -site inspection of construction shall be performed in accordance with the terms of the
contract.
30.205 CONTRACT CANCELLATION AND TERMINATION PROCEDURES
A. A contract may be canceled by the City for any violation of the provisions of the contract or for
violation of the certification of non - discrimination against minority, women, and emerging small
business enterprises.
B. The City may terminate any contract if insufficient funds are appropriated to complete the
contract.
C. No cancellation of a public contract shall, unless limited by the terms of the particular contract,
restrict or abrogate any other remedy available to the City that is provided either by law or under
the particular contract.
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D. The City shall provide the contractor written notice of the grounds for cancellation or
termination and of its intention to cancel the contract or terminate the contractor's performance.
If the contractor provided a performance and payment bond, the surety shall also be provided
with a copy of the notice of contract cancellation or contractor termination. The notice shall
include the effective date of the intended cancellation or termination, the grounds for
cancellation or termination and notice of the amount of time (if any) in which the City will
permit the contractor to correct the failure to perform. The public contract may provide
contract cancellation or contractor termination procedures that are different from or in addition
to, those provided in this rule.
E. If the contractor has provided a performance and payment bond, the City may afford the
contractor's surety the opportunity, upon the surety's receipt of a contractor termination notice,
to provide a substitute contractor to complete performance of the contract. Performance by the
substitute contractor shall be rendered pursuant to all material provisions of the original
contract, including the provisions of the performance and payment bond. Such substitute
performance does not involve the award of a new public contract and shall not be subject to
competitive procurement requirements.
PCR 40.000 - PUBLIC IMPROVEMENT CONTRACTS
40.010 APPLICATION
In addition to the requirements set forth in Section 30 of these rules, the following rules apply to
public improvement contracts. The requirements in Section 40 are intended to be complementary
to those in Section 30, with the rules in Section 40 supplementing the Section 30 requirements,
where necessary, to meet the City's needs when administering contracts for public improvements.
40.015 COMPETITIVE BIDDING
Except as otherwise specifically permitted by these rules, public improvement contracts shall be
awarded by competitive bidding. If the public improvement contract includes design aspects, the
City may award the contract by a competitive proposal process.
40.020 FIRST TIER SUBCONTRACTOR NOTICE
If the public improvement contract may be for more than $100,000, the solicitation documents must
provide notice that the contractors must disclose first -tier subcontractors who will furnish labor or
materials greater than five percent of the total bid or $15,000, whichever is greater, or $350,000
regardless of the percentage of the total bid within two working hours after the deadline for bid
submission. The disclosure must state the name of each subcontractor and the category of work the
subcontractor will perform.
40.025 FIRST TIER SUBCONTRACTOR DISCLOSURE
A. Bidders for public contracts with a value of more than $100,000 must submit a first -tier
contractor disclosure sheet within two hours of the deadline for submitting a bid. The
disclosure sheet must list all first -tier subcontractors who will furnish labor or materials greater
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than five percent of the total bid or $15,000, whichever is greater, or $350,000 regardless of the
percentage of the total bid. The disclosure must state the name of each subcontractor, the
category of work the subcontractor will perform and the dollar value of each subcontract. If no
first -tier subcontractor meets the threshold level for disclosure and the bid price is more than
$100,000, the disclosure sheet must still be submitted with the information that no
subcontractors meet the threshold level for disclosure.
B. Bid and proposals for public improvement contracts with a value of greater than $100,000 for
which a first -tier subcontractor disclosure is not submitted within two hours of the submittal
deadline shall be considered non - responsive.
C. The closing for submission of bids subject to first -tier subcontractor disclosure shall be on
Tuesday, Wednesday or Thursday between 2 and 5 pm.
D. First tier subcontractors may be substituted if only in compliance with ORS 279C.585.
E. The City may require first -tier subcontractor disclosure in any invitation to bid, even if
disclosure is not otherwise required by statute or these rules.
40.030 BID EVALUATION AND AWARD
A. General
Unless exempted by these rules, a public improvement contract, if awarded, is to be awarded to
the lowest, responsive and responsible bidder.
B. Special Requirements
The solicitation documents shall set forth any special requirements and criteria, which will be
used to determine the lowest, responsive and responsible bidder. No bid shall be evaluated for
any requirement or criterion that is not disclosed in the solicitation documents or City
regulation.
C. Bid Evaluation and Award
The evaluation format for competitive bid pricing can be lump sum, unit price, or a combination
of the two.
1. Lump sum
If the bid form includes a lump sum base bid, plus additive or deductive alternates, the total
bid price, for the purpose of comparing bids, shall be the total sum computed from adding
or deducting alternates, as selected by the City, to the base bid. If the alternates, or if the
City has selected no additive or deductive alternates for award, bids shall be compared on
the basis of lump sum prices, or lump sum base bid prices, as applicable.
2. Unit Price
If the bid includes unit prices and extensions for estimated quantities, the total bid price, for
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the purpose of comparing bids, will be the total sum computed from multiplying the bidder,
with due adjustments being made for additive or deductive alternates, if any, selected for
award. Note: In case of a conflict between a unit price and the corresponding extended
amount, the unit price shall govern.
3. Combination Lump Sum and Unit Price
The City shall select a combination of factors for purposes of bid evaluation and contract
award and use the methods described in (a) and (b) to compute and compare bids.
D. Proposal Evaluation and Award
If a selection method other than competitive bids is authorized by these rules for a public
improvement, proposals will be evaluated to determine which proposer offers the best solution
to the City in accordance with the evaluation criteria set forth in the solicitation documents and
in the City's rules. The solicitation evaluation criteria may include, but are not limited to, cost,
quality, relevant experience, service, performance history on other private and public contracts,
experience and availability of key personnel, adequacy of equipment and physical plant, financial
wherewithal, sources of supply, and references. Evaluation factors need not be precise
predictors of actual future costs and performance, but, to the extent possible, such evaluation
factors shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. Recognize that public policy requires acquisitions and public improvements to be
accomplished at the least cost.
E. No assignment or transfer of contract rights
A contractor shall not assign, sell, or transfer rights, nor delegate responsibilities under a public
contract either in whole or in part, without first obtaining the City's prior written consent. Such
written consent shall not relieve a contractor of any obligations under a public contract, and any
transferee shall be considered the agent of the contractor and bound to abide by all provisions of
the public contract. Except in the event of a novation, if the City consents in writing to an
assignment, sale, or transfer of the contractor's rights and responsibilities, the contractor shall
remain ultimately liable to the City for complete performance of the public contract as if on such
assignment, sale, or transfer had occurred.
40.035 CONTRACT CANCELLATION PROCEDURES
A. Termination Due to Circumstances Beyond the Control of the Contractor
1. Reasons for Termination
The City may, in its sole discretion, by written order or upon written request from the
contractor, terminate the contract or a portion thereof if any of the following occur:
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a. The contractor is prevented from completing the work for reasons beyond the control
of the City;
b. Completion of the project is beyond the control of the contractor;
c. For any reason considered by the City to be in the public interest (other than a labor
dispute or reason of any third party judicial proceeding relating to the work other than a
suit or action filed in regards to a labor dispute). These reasons may include, but are not
necessarily limited to, non - availability of materials, phenomenon of nature of
catastrophic proportions or intensity, executive orders of the President related to
national defense, congressional or state acts related to funding;
d. Any third party judicial proceeding relating to the work other than a suit or action filed
in regards to a labor dispute;
e. If the circumstances or conditions are such that it is impracticable within a reasonable
time to proceed with a substantial portion of the public works;
f. The City does not have funds budgeted or available to complete the contract; or
g. Any other reason allowed as a basis for termination under the contract.
2. Payment When Contract is Terminated
When the contract, or any portion thereof, is terminated before completion of all items of
work in the contract, payment will be made for the actual items of work completed under
the contract, or by mutual agreement, for items of work partially completed. No claim for
loss of anticipated profits will be allowed.
3. Responsibility for Completed Work if Contract Terminated
Termination of the contract or a portion thereof shall not relieve the contractor of
responsibility for the work completed, nor shall it relieve the surety of its obligation for any
claims arising from the work performed.
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B. Termination of Contract for Default
1. Declaration of Default
The City may, after giving the contractor or the surety seven (7) days' written notice and an
opportunity to cure deficient performance, terminate the contractor's performance for any
reasonable cause, including but not limited to those set forth in subsection 2(a)(1) to (6) of
this rule. Upon such termination, the City may immediately take possession of the premises
and of all materials, tools and appliances thereon as well as all other materials, whether on
the premises or not, on which the contractor has received partial payment. The agency may
finish the work by whatever method it may deem expedient.
a. If the contractor should persistently or repeatedly refuse to or fail to supply an adequate
number of properly skilled workers or proper materials for the efficient execution of the
project; or
b. If the contractor should fail to make prompt payment to subcontractors for material or
labor, or persistently disregard laws, ordinances, or the instruction of the City, or
otherwise be guilty of a substantial violation of any provision of the contract; or
c. If the Contractor should voluntarily or involuntarily seek protection under the U.S.
Bankruptcy Code and its Debtor in Possession or Trustee for the estate fails to assume
the contract within a reasonable time; or
d. If the contractor should make a general assignment for the benefit of the contractor's
creditors; or
e. If a receiver should be appointed on account of the contractor's insolvency; or
f. If the contractor is otherwise in material breach of any part of the contract.
2. Required Response to Declaration of Default
If the above action is taken, the contractor or the surety shall provide the City with
immediate and peaceful possession of all of the materials, tools, and appliances located on
the premises, as well as all other materials whether on the premises or not, on which
contractor has received any progress payment. Further, the contractor shall not be entitled
to receive any further payment until the work is completed. On the completion of the work,
determination shall be made by the City of the total amount under the terms of the contract,
had the contractor completed the work. If the difference between said total amount and the
sum of all amounts previously paid to the contractor, which difference will hereinafter be
called the "unpaid balance," exceeds the expense incurred by the City in completing the
work, including expense for additional managerial and administrative services, such excess
will be paid to the contractor, with the consent of the surety. If, instead, the expense
incurred by the City exceeds the unpaid balance, the amount of the excess shall be paid to
the City by the contractor or the surety.
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3. Expense of Completion
The expense incurred by the City shall be as determined and certified by the City.
4. Substitution of Contractor
As provided in PCR 30.205, termination of the contractor and substitution of another
contractor to complete the work does not constitute the award of a new public contract and
shall not be subject to the provisions of ORS 279.005 to 279.111.
5. Refusal to Perform
In addition to and apart from the above - mentioned right of the City to terminate the
employment of the contractor, the contract may be canceled by the City for any willful
failure or refusal on the part of the contractor to perform faithfully the contract according to
all of its terms and conditions; however, in such event neither the contractor nor the surety
shall be relieved from damages or losses suffered by the City on account of the contractor's
breach of contract.
6. Remedies are Cumulative
The City may, at its discretion, avail itself of any or all of the above rights or remedies
without prejudice or preclude the City from subsequently invoking any other right or remedy
set forth above or elsewhere in the contract.
40.040 RETAINAGE
A. Retainage of Five Percent
The City will retain amounts from progress payments so that the total value of all amounts
retained will not exceed 5 percent of the value of completed work. If the contract work is 50
percent completed and the work is progressing satisfactorily, the retainage may be reduced on
the remaining progress payments. Any reduction or elimination of retainage shall be allowed
only upon written application of the contractor, which application shall include written approval
of the contractor's surety; except that when the contract work is 97-1/2 percent completed, the
City may without application by the contractor, reduce the retained amount to 100 percent of
the value of the contract work remaining to be done. If retainage has been reduced or
eliminated, the City reserves the right in protecting its interests to reinstate at any time retainage
from further progress payments.
B. Alternatives to Cash Retainage
In lieu of cash retainage to be held by the City, the contractor may select one of the following
options:
1. Deposit of Securities
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The contractor may deposit bonds or securities with the City or in any bank or trust
company to be held for the benefit of the City. In such event, the City shall reduce the
retainage in an amount equal to the value of the bonds and securities. This reduction in
retainage will be made in the progress payments made subsequent to the time the contractor
deposits the bonds and securities.
The value of the bonds and securities will be determined periodically by the City and the
amount retained on progress payments will be adjusted accordingly. The bonds and
securities deposited by the contractor shall be fully assigned to the City or be payable to the
City on demand and shall be of a character approved by the Finance Director, including but
not limited to the following:
a. Bills, certificates, notes or bonds of the United States.
b. Other obligations of the United States or its agencies.
c. Obligations of any corporation wholly owned by the Federal Government.
d. Indebtedness of the Federal National Mortgage Association.
e. Time certificates of deposit or savings account passbooks issued by a commercial bank,
savings and loan association, or mutual savings bank, duly authorized to do business in
Oregon.
f. Corporation bonds rated A or better by a recognized rating service.
g. General obligation bonds of the State of Oregon or any political subdivision thereof.
h. General obligation improvement warrants issued pursuant to ORS 287.502.
i. Irrevocable letters of credit from a bank doing business in Oregon.
At the time the City determines that all requirements for the protection of the City's interest
has been fulfilled, all bonds and securities deposited as above provided will be released to the
contractor.
2. Deposit in Interest - Bearing Accounts
Upon written request of the contractor, the City shall deposit any amounts withheld as
retainage in an interest - bearing account in a bank, savings bank, trust company, or savings
association for the benefit of the City. Interest earned on such account shall accrue to the
contractor.
3. The City may, at its discretion, allow the contractor to deposit a surety bond in a form
acceptable to the City in lieu of all or a portion of funds retained to be retained. The
contractor shall accept like bonds from subcontractors and suppliers when the City allows
surety bonds for retainage.
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C. Recovery of Costs
If the City incurs additional costs as a result of the exercise of any of the options for retainage
described herein, the City may recover such costs from the contractor by reduction of the final
payment. As work on the contract progresses, the City shall, upon request, inform the
contractor of all accrued costs.
40.045 PROGRESS PAYMENTS
A. Request for Progress Payments
At a regular time each month, the contractor shall, if required by the contract documents, submit
to the City a request for payment based upon an estimate of the amount of work completed and
of the value of acceptable material to be incorporated in the completed work which has been
delivered and acceptably stored. Upon verification and approval of the City, the sum of these
values will be referred to the "value of completed work." With these estimates as a base, a
progress payment will be made to the contractor, which shall be equal to the value of completed
work, less such amounts as may have been previously paid, less such other amounts as may be
deductible or as may be owing and due to the City for any cause, and less an amount to be
retained in protection of the City's interests.
B. Progress Payments Do Not Constitute Acceptance of Work
Progress payments shall not be construed as an acceptance or approval of any part of the work
covered thereby, and they shall in no manner relieve the contractor of responsibility for
defective workmanship or material.
C. Estimates for Progress Payments
The estimates upon which progress payments are based are not represented to be accurate
estimates, and all quantities shown therein are subject to correction in the final estimate. If the
contractor uses such estimates as a basis for making payments to subcontractors, this is at the
contractor's own risk, and the contractor shall bear all loss that may result.
D. Contractor Certified Payroll Payment Withholding
The City shall withhold 25% of any amount owed to a contractor if the contractor does not file
certified payroll records with the City along with any invoice for payment on any project covered
by Prevailing Wage Rate Law.
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40.050 FINAL INSPECTION
A. Notification of Completion
When the contractor determines that all construction work on the project has been completed,
the contractor shall so notify the City in writing. The City shall make an inspection of the
project and project records within fifteen (15) days of receiving said notice. If, at such
inspection, all construction provided for and ordered under the contract is complete and
satisfactory to the City, and all certifications, bills, forms, and documents have been submitted
properly, such inspection shall constitute the final inspection.
B. Instructions to Complete the Work
If, however, at any inspection, any work in whole or in part is found unsatisfactory, or it is found
that all certifications, bills, forms, and documents have not been submitted properly, the City
shall within fifteen (15) days provide instructions to the contractor on outstanding requirements
to complete the project. At such time as the contractor determines full compliance with, and the
execution of such instructions, the contractor shall notify the City in writing. The City shall
make another inspection within fifteen (15) days after such notice, and this inspection shall
constitute the final inspection provided construction work has been completed satisfactorily.
C. Acknowledgment of Acceptance
Upon satisfactory completion of all work required under the contract, the City shall
acknowledge acceptance of the work in writing.
40.055 FINAL ESTIMATE AND FINAL PAYMENT
A. Submission of Final Estimate
As soon as practicable after final inspection of the work under the contract, if unit prices were
applicable, the City shall prepare a final estimate of the quantities of the various classes of work
performed. Following a determination of the total amount due the contractor, and following
final acceptance of the work by the City, final payment shall be made to the contractor.
B. Set -off of Prior Payments
All prior partial estimates and payments shall be subject to correction in the final estimate and
payment.
C. Interest
Beginning 30 days after the date of final acceptance of the project by the City, the City shall pay
to the contractor interest at the rate established by State statute on any money due and payable
to the contractor. Interest shall also be payable on any interim payments that are more than 30
days overdue. No interest shall be assessed against retainage or other amount lawfully withheld
by the City.
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40.060 CLAIMS FOR UNPAID LABOR OR SUPPLIES
A. Right of Action
A person claiming to have supplied labor or materials for work on a public improvement
contract led by the City for which the person has not been paid by the prime contractor or any
subcontractor, has a right of action on the contractor's payment bond. This right arises if the
person has not been paid in full and has given written notice of a claim within 120 days of last
providing labor or furnishing materials, or within 150 days of providing labor or furnishing
materials if the claim is for a required contribution to a fund of any employee benefit plan.
B. Notice of Claim
1. To initiate a claim against the contractor's bond, a person should file a Notice of Claim in
the form and manner attached as PCR 40.061 - Exhibit A. Such notice must be given to the
contractor and the City.
2. Any notice of claim should include the following information:
a. Name and address of the claimant;
b. Name of prime contractor;
C. Title of project and contract date;
d. Name of the City;
e. Name of bonding company (may be obtained from City); and
f. Name of contractor or subcontractor to whom labor or material supplied.
C. Response to Notice of Claim
Upon receipt of such Notice of Claim, the City shall:
1. Send an acknowledgment to claimant;
2. Send a copy of the notice to the prime contractor; and
3. File a copy of the Notice with the bonding (surety) company.
D. Referral to Surety Company
If the contract has been completed and all funds disbursed to the prime contractor, all claims
shall be referred to the surety company for resolution. The City shall not arrange for second
payments directly to subcontractors or suppliers for work already paid for by the City.
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E. Discretionary Payment of Claim
If the contract is still in force, the City may pay a valid claim to the person furnishing the labor
or services and charge the amount of the payment against funds due or to become due to the
contractor under the contract.
F. Liability of Claim
If the City chooses to make a payment as provided in Subsection E, the contractor or the
contractor's surety shall not be relieved from obligation with respect to any unpaid claims.
40.061 EXHIBIT A
To: (insert name of the public body)
NOTICE IS HEREBY GIVEN that the undersigned, (insert name of subcontractor or supplier), a
(corporation, partnership, sole proprietorship, etc.), as claimant, has a claim for (labor peOrmed by the claimant,
materials supplied by the claimant, etc.), generally consisting of (brief description) in the sum of 4
against the payment bond taken from (name of prime contractor), as principal, and (name of bonding company if
known), as sure for the construction of the (title or description of project). The material or labor was supplied to
(name of contractor).
(Insert a brief description of the work concerning which the bond was taken.)
DA"1 ED this day of . 20_.
By
(claimant's name)
40.065 PLANNING FOR PUBLIC IMPROVEMENTS
The City will prepare a file with the Commissioner of the Bureau of Labor and Industries a list of
planned public improvements at least 30 days before adoption of the City's budget and otherwise
comply with ORS 279C.305.
40.070 PREVAILING WAGE LAWS
Contractors shall comply with all Prevailing Wage Rate Laws (ORS 279C.800 to 279C.870 or the
Davis -Bacon Act, 40 US 276a) if applicable.
PCR 50.000 - WAIVER OF SECURITY (BID, PERFORMANCE AND
PAYMENT BONDS) (Also see PCR 30.055)
50.010 BID SECURITY REQUIREMENTS
The City shall require bid security unless an exception under the Public Contracting Code or these
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rules apply. The City may, in its discretion, waive bid security requirements for contracts other than
those for public improvements. In its discretion, the City may accept blanket bid bonds. The City
may require proposal security bonds.
50.015 CONTRACTS UNDER $10,000
The City may, in its discretion, waive the bid security and performance bond requirements if the
amount of the contract is less than $10,000.
50.020 EMERGING SMALL BUSINESS CONTRACTS UNDER $100,000
A. The City may, in its discretion, waive bid security requirements and performance bond
requirements when the public improvement project:
1. Has estimated direct construction costs not exceeding $100,000;
2. Is being undertaken through a program where the bidders are drawn exclusively from a list
of certified Emerging Small Businesses maintained by the Advocate of Minority, Women
and Emerging Small Business; and
3. The City has been provided funds by the legislature for the purpose of assisting Emerging
Small Businesses.
B. The City may waive bid security requirements and /or performance bond requirements under the
following conditions:
1. There exists an emerging small business account or like source of funds containing an
unexpended and unobligated balance;
2. The City has authority to encumber and make payments from the account; and
3. The City encumbers an amount in the account to cover the total cost of each project
wherein the bid security and /or the performance bond is waived.
PCR 60.000 - PROPERTY DISPOSITION
60.010 SURPLUS PERSONAL PROPERTY
A. Personal property owned by the City and under the dollar value of $500 may be disposed of with
the approval of any department head or the City Manager. Personal property that exceeds that
dollar value may be disposed of only after being declared surplus by the City Manager. The
method of disposal will be determined based on condition, value, demand, and /or use.
B. Personal property may be declared surplus by the City Manager or designee if it is scheduled for
replacement in an adopted budget or it is no longer necessary to provide City services.
60.015 AUCTION SALES OF PERSONAL PROPERTY
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Personal property may be sold at auction if the City determines that an auction will probably result
in the best net return for the City. Auctions that are widely publicized, including internet auctions,
do not require notice by the City.
60.020 SALES OF PERSONAL PROPERTY
A. When the current market value per item is estimated to be more than $25,000, the personal
property must be offered for competitive bid and be advertised in a newspaper of general
circulation in the City. The City at its discretion may choose between sealed written bids or a
public auction. If no bids are received or if a determination is made that the market value of the
property exceeds the offer of the highest responsible bidder, all bids may be rejected, and the
City may negotiate a sale subject to the following conditions:
1. An appraisal of the market value of the property is obtained and documented, and the
negotiated sale price exceeds the market value; or
2. The sale amount exceeds the highest bid received through the bidding or auction process.
B. The City may sell personal property by a negotiated sale if the value of the property is estimated
to be less than $25,000 and the City has determined that a sale without competitive bidding will
result in at least as much net revenue as would a competitive bidding process. The City shall
endeavor to get as many quotes as is reasonable under the circumstances (normally at least three)
and shall negotiate to maximize the proceeds for the City.
60.025 LIQUIDATION SALES OF PERSONAL PROPERTY
The City may sell personal property through a commercially recognized third party liquidator if the
City has determined that a liquidation sale will result in increased net revenue and the selection of
the liquidator was conducted by the competitive request for proposal process under these rules.
60.030 DONATIONS OF PERSONAL PROPERTY
A. The City may transfer personal property, including recyclable or reclaimed materials, without
remuneration or only nominal remuneration without competitive bids to the following entities:
1. Another public agency;
2. Any sheltered workshop, work activity center or group care home which operates under
contract or agreement with, or grant from, any state agency and which is certified to receive
federal surplus property; or
3. Any recognized non -profit activity, which is certified to receive federal surplus property.
B. The City may donate or sell, without competitive bids, surplus personal property to recognized
private, non -profit social or health service activities, subject to the following conditions:
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1. A determination has been made that the property is not needed for other public purposes;
and
2. If the property has a current market value of $500 or more, the donation or sale shall:
a. Be approved by the City Manager or designee; and
b. Be documented by the City to be clearly in the public interest.
C. The City shall maintain a record of all transfers, donations, or sales authorized by sections A and
B of this rule.
60.035 TRADE OF PERSONAL PROPERTY
The City may trade personal property owned by the City to other government agencies or to other
entities provided the following conditions apply:
A. Trades to other government agencies are exempt from public bidding by PCR 10.010A.1;
however, such trades must be approved by the City Manager.
B. Trades of personal property with parties other than government agencies must proceed as
follows:
1. The market value of both the item to be traded and the item requested must be documented.
2. The proposal to trade an item for another item must be made available to . an adequate
number of potential vendors to encourage competition.
3. Such trades must be approved by the City Manager.
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PCR 70.000 - PERSONAL SERVICES CONTRACTS
70.010 PERSONAL SERVICES CONTRACTS
A. Personal service contracts are not "public contracts" subject to formal competitive process
under the Oregon Public Contracting Code. This rule describes a method for distinguishing
between personal service contracts and public contracts, particularly service contracts, and
provides examples of contracts or classes of contracts which are or are not personal service
contracts.
B. The determination whether a contract is a public contracts or a personal service contract shall be
based on the following:
1. Whether the City has developed or is reasonably able to develop reasonably adequate design
and /or performance specifications and whether selecting a contractor on the basis of lowest
price and meeting minimum specifications would likely meet the City's needs. If the tasks to
be performed can reasonably performed based solely on compliance with minimum
specifications, then the tasks should be performed pursuant to a public contract awarded by
a competitive bidding process. Conversely, if the City is reasonably unable to develop
adequate design and /or performance specifications but must instead have the assistance of
the contractor's training, knowledge, and expertise to develop a scope of work statement and
selecting the contractor on the basis of lowest price would be unlikely to meet the City's
needs, then the tasks would most appropriately be performed under a personal service
contract.
2. Whether selecting the contractor on the basis of qualifications rather than lowest price will
result in the City obtaining the best value for its money.
3. A personal service contract is appropriate where the contract is awarded primarily on the
basis of the contractor's qualifications, including but not limited to, such criteria as
experience, training, knowledge, and expertise, technical skill, creativity, artistic ability,
performance history, and demonstrated ability to exercise sound professional judgment.
Price will be a secondary criterion for awarding a personal service contract.
4. A personal service contract is not appropriate where price is or should be the primary or a
major selection criterion.
C. Personal service contracts may include, but are not limited to, the following:
1. Contracts for services performed as an independent contractor in the professional capacity,
including but not limited to the services of an accountant; attorney; architectural or land use
planning consultant; physician or dentist; registered professional engineer; appraiser or
surveyor; aerial photographer; timber cruiser; broadcaster; or data processing consultant.
2. Contracts for such services as an artist in the performing of fine arts, including but not
limited to photographer, filmmaker; painter; weaver; or sculptor.
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3. Contracts for services of a specialized creative and research oriented, noncommercial nature.
4. Contracts for services of a specialized creative and research oriented, noncommercial nature.
5. Contracts for educational and human custodial care services.
D. The following are NOT personal service contracts:
1. Contracts, even though in a professional capacity, if predominately for a product, e.g., a
contract with a landscape architect to design a garden is for personal services, but a contract
to design a garden and supply all the shrubs and trees is predominately a tangible product.
2. A service contract, including a contract with a temporary service or personnel agency, to
supply labor which is of a type that can generally be done by any competent worker, e.g.,
data entry, key punch, janitorial, security guard, crowd management, crop spraying, laundry,
and landscape maintenance service contracts
3. Contracts for trade related activities considered to be labor and material contracts.
4. Contracts for services of a trade- related activity, to accomplish routine, continuing, and
necessary functions, even though a specific license is required to engage in the activity.
Examples are repair and /or maintenance of all types of equipment or structures.
70.015 SCREENING AND SELECTION POLICY FOR PERSONAL SERVICES CONTRACTS
It is the City's policy to select as expeditiously as possible the best qualified consultant available,
consistent with financial considerations. The selection procedures in this section shall be used to
select the personal services contractors, except where ORS 279C.110 requires a different procedure.
The selections procedures do not apply to the appointment or hiring of City officials and employees,
to employment or services contracts with City officials and employees (except if providing services
outside the scope of employment or official duties), or to collective bargaining agreements.
A. Formal Selection Procedure
This procedure shall be used for personal service contracts when the total cost of the contract
exceeds $50,000. The City may elect to use the Formal Selection Procedure for any personal
service contract, regardless of price.
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1. Announcement
The City will make at least one public announcement of its need for personal services in an
appropriate trade periodical or newspaper of general circulation. The announcement shall
include a description of the proposed project, the scope of the services required, project
completion dates, and a description of any special requirements, if present. The
announcement shall invite qualified prospective contractors to indicate to the requesting
department their interest in performing the services required. The announcement will
specify a closing date by which the statement must be received by the appropriate
department.
2. Application
Prospective contractors must submit a statement which describes their capabilities,
credentials, and performance data sufficient to establish their qualification for the project.
3. Initial Screening
The Department Head or designee shall evaluate the qualifications of all applicants
responding to the announcement by the closing date and select from among the respondents
a minimum of three prospective contractors whose statements evidence the highest level of
qualification. Should fewer than three (3) statements be received, then each prospective
contractor submitting statements that meet the minimum qualifications will be interviewed.
4. Final Selection Procedure
a. Interviews
The Department Head or designee will hold discussions with the finalists selected for
initial screening. Applicant capability, experience, and compensation requirements shall
determine the department's final selection. The interviews may be in person or by
phone.
b. Award of Contracts
The Department Head or designee shall make a recommendation to the Board for award
of the contract based on the written materials and the interview evaluation. The
designee may be a committee.
B. Informal Selection Procedure
1. This procedure may be used when the estimated fee to the contractor does not exceed
$50,000.
2. The department will contact a minimum of three (3) prospective contractors with which it
has had previous successful experience or which are known by the department to be
qualified to offer the sought -after services. A projected fee will be requested and a selection
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made by the Department Head or designee based upon the consultant's capability,
experience, project approach, and compensation requirements.
C. Direct Appointment Procedure
1. A qualified consultant may be appointed directly from the City's current list of consultants,
another public contracting agency's current list of consultants pursuant to an interagency or
intergovernmental agreement entered into in accordance with ORS Chapter 190; or from
consultants offering the necessary services that the City reasonably can locate. Direct
appointment procedure may be used when:
a. The consultant's estimated fee does not exceed $10,000; or
b. When the project consists of work that has been substantially described, planned, or
otherwise previously studied or rendered in an earlier departmental contract, provided
that the original selection procedure used for the project was a formal procedure and the
consultant's estimated fee does not exceed $50,000.
2. A direct appointment shall be competitive to the extent practicable and may be based on the
consultant's availability, capabilities, staffing experience, compensation requirements and the
project's location.
D. Emergency Appointment Procedure
Nothing in the rule shall be inferred to prohibit or otherwise impede the Department Head's or
designee's right to make direct consultant appointments when conditions require a prompt
action to protect life or property. In such instances, the recommended appointment and a
written description of the conditions requiring the use of this appointment procedure shall be
submitted by the Department Head or designee to the City Manager or designee for action. The
City Manager or designee will determine if an emergency exists, declare the emergency, and
when appropriate, approve the appointment.
E. Responsible Parties' Actions
1. Professional Consultants
Submit qualifications, credentials, and performance data relating to their capabilities to the
appropriate division in response to project announcement.
2. Division /Department
a. Determine that the work on a project requires the services of a consultant.
b. Announce project as required by this section.
c. Request the City Manager's approval of the required actions.
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d. Determine appropriate selection /appointment procedure.
e. Select consultant /candidates as specified under this rule.
f. Interview the top candidates and make the final selection.
g. Execute contracts and awards to consultants, with the City Manager's prior approval.
h. Maintain a file on the selection process, including:
1. The method and copy of the announcement.
2. The names of firms /individuals and cost estimates considered.
3. A justification of need for the contract.
4. The basis for selection.
5. The means by which rates were established.
6. How reasonableness of price was determined.
7. A copy of the resulting contract.
3. City Manager
a. Approves each project's scope and budget as necessary.
b. Makes direct and emergency appointments as required.
C. Approves /disapproves Personal Services Contract and all subsequent amendments
unless the amount of the contract requires the Board's approval.
70.020 AMENDMENTS
Amendments for additional work on personal service contracts shall be permitted only if the City
requests additional work of the same type. Any such amendment may not exceed 25% of the
original contract value. If an additional personal services contract is to be awarded for work related
to an existing personal service contract, the total value of the new and old contracts is to be
considered in determining the type of selection procedure required. If a contract was originally
awarded by the informal selection procedure, amendments that would result in a total contract price
of more than $50,000 are not permitted. If a contract was originally awarded by the direct
appointment procedure under Section 70.015C.1.a, amendments that would result in a total contract
price of more than $10,000 are not permitted.
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PCR 80.000 - EMERGENCY CONTRACTS; SPECIFIC EXEMPTION
REQUIREMENTS; BOARD EXCEPTION; PROCEDURES; TEMPORARY
EXEMPTIONS
80.010 EMERGENCY CONTRACTS
A. The City Manager or designee may, at the City Manager's or designee's discretion, authorize or
let public contracts without a formal competitive process if an emergency exists and the
emergency consists of circumstances creating a substantial risk of loss, damage, interruption of
service, or threat to public health or safety that could not have been reasonably foreseen and
requires prompt execution of a contract to remedy the condition.
B. The City Manager or designee must declare the existence of an emergency, which shall authorize
the City to enter into an emergency contract with a price under $50,000 and make detailed
written findings describing the emergency conditions necessitating prompt execution of the
contract. A copy of the findings together with the amount of the contract and the name of the
contractor shall be immediately forwarded by the City Manager to the Board.
C. Any contract awarded under this exemption shall be awarded within sixty (60) days following
declaration of the emergency unless an extension is granted.
D. The City may enter into a public contract without a formal competitive process when
circumstances that could not reasonably be anticipated, require prompt establishment and
performance of the contract in order to preserve public funds, property, or the uninterrupted
provision of government services. In exercising its authority under this exemption, the City
shall:
L To the extent reasonable under the circumstances, encourage competition by attempting to
make informal solicitations or to obtain informal quotes from potential suppliers of goods or
services;
2. Make written findings describing the circumstances that require the prompt performance of
the contract and of the harm anticipated to result from failing to establish the contract on an
expedited basis; and
3. Record the measures taken under subsection (a) of this section to encourage competition,
the amounts of the quotes or proposals obtained, if any, and the reason for selecting the
contractor.
E. The City shall not contract pursuant to the exemption in the absence of a substantial risk of loss,
damage, or interruption of services that would occur if contract performance awaited the time
necessary, given the complexity of the project, to solicit, receive and analyze bids or proposals.
PCR 90.000 - RECYCLABLE /RECYCLED PURCHASING GUIDELINES
90.010 RECYCLED MATERIALS AND PRODUCTS GUIDELINES
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The City shall make every effort to prefer, specify, and purchase recyclable items and materials with
recycled content in accordance with ORS 279A.125.
Incentives for recycled materials shall be applied whenever economically feasible.
A preference of 5% shall be applied for materials and supplies manufactured from recycled
materials, as provided in PCR 90.015 with the exception of recycled paper and paper products,
which receive a higher preference percentage as stated in PCR 90.020.
The bidder or proposer shall indicate in its bid or proposal, the materials it considers subject to the
5% preference. The 5% preference will only apply to the value of that portion of a bid or proposal
that offers products containing verifiable recycled contents. The "5% preference" shall be applied
by dividing the bid amount for the recycled goods by 1.05 and using the resulting number in
calculating the total bid amount.
90.015 RECYCLED MATERIALS PREFERENCE
A. In order to qualify for a recycled materials preference, bidders and proposers, in their bids and
proposals, shall certify the minimum or the exact percentage of recycled product in all materials
and supplies offered and both the post- consumer and secondary waste content thereof.
B. Bids that contain false information about the percentage of recycled product, post - consumer
and secondary waste content, and verifiable recycled content shall be rejected as non - responsive.
C. Contracts awarded as a result of a preference under this rule are subject to investigation,
including but not limited to, audits, plant visitations, examination of invoices and other
documents, etc., as the City deems necessary to confirm that the products supplied contain the
percentages of recycled product, post - consumer and secondary waste stated in the bid or
proposal.
D. Failure to provide products containing the percentages of recycled product, post- consumer and
secondary waste stated in the bid may result in:
1. The contractor being required to reimburse the City for the portion of the contract price
that is attributable to the preference; and
2. Contract termination; or
3. Both 1 and 2, or such other remedies the City deems appropriate.
90.020 RECYCLED MATERIALS AND PRODUCTS PURCHASING GUIDELINES
A. Purchase of Paper Products
The City promotes the use of recycled paper and paper products. Purchase of recycled paper
and paper products is preferred even when the cost of the such recycled paper or paper products
is up to seven percent (7 %) higher than the cost of the same quality paper or paper products
containing little or no recycled paper. "Recycled paper" shall be defined as a paper product with
not less than fifty percent (50 %) of its total weight consisting of secondary waste materials or
twenty five percent (25 %) of its total weight consisting of post - consumer waste.
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1. In the specification and purchase of City high speed copier and small offset press application
paper and fine printing paper including book, bond, cover, gum, index, bristols, boards,
ledger, and duplicator papers:
a. The City shall use recycled paper wherever possible if available and compatible with
existing printing and copying equipment;
b. The City shall try to eliminate excessive or unnecessary paper use, including but not
limited to over - purchase of paper, over - printing of materials, purchases of too high a
grade of paper, purchase of paper which is not recyclable; and purchase of virgin paper
when recyded paper is available in the same grade;
c. Procurement specifications for the purchase of new printing and copying equipment
shall require the acceptance and operational use of recycled paper and shall be capable of
two -sided copying;
d. The procurement of unbleached, recycled paper is encouraged and the use of bright,
hard to bleach colored or otherwise non - recyclable papers shall be discouraged; and
e. In the specification and purchase of other paper items including corrugated and
fiberboard boxes, folding box board and cartons, stationery, envelopes, legal and scratch
pads, manifold business forms (including computer paper), toilet tissue, paper towels,
facial tissue, paper napkins and industrial wipes, and brown and coarse papers, the Cit
shall actively solicit information from vendors with regard to the availability of other
paper products (as listed above) with recycled paper content and promote its use.
B. Purchase of Composted Waste Materials
In the specification and purchase of landscape cover, soil amendment, and fill materials:
1. The City shall eliminate from procurement specifications any exclusions or barriers to the
purchase of recycled compost materials except for exclusions based upon plant or human
health or safety; and
2. The City shall make every effort to utilize and specify functionally equivalent composted
waste products in the place of products manufactured from virgin materials.
C. Purchase of Retread Tires
In the specification and purchase of tires for vehicles and equipment in the City fleet:
1. The City shall make every reasonable effort to utilize retread tires in the place of tires
manufactured from virgin materials where technical requirements will allow; and
2. The City shall give preference to the purchase of retread tires to the maximum extent
possible within the intended use of the product taking the following into consideration:
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a. The product is unable to meet the City's specifications (e.g., emergency response vehicles
and heavy equipment);
b. The product is not available within specified delivery schedules; and
c. The product is not price competitive.
D. Purchase of Re- refined Petroleum Products
In the purchase of lubricating oils for vehicles and equipment in the City fleet:
1. The City shall make every reasonable effort to utilize lubricating oils with re- refined oil
content unless:
a. The product does not meet performance specifications recommended by the original
equipment manufacturer and related warranties would be voided; and
b. The product is found to not be economically or technically feasible.
2. The City shall review current procurement specifications in order to eliminate (wherever
economically and technically feasible) an exclusion of lubricants refined from recycled waste
materials.
E. Purchase of Building Insulation Products
In the specification and purchase of building insulation products:
1. The City shall make every effort to prefer, specify and purchase insulation products
manufactured from recovered or recycled materials for maintenance and repair operations,
building construction projects and work or projects which are let to private contractors; and
2. A decision not to purchase insulation products with the highest percentage of recovered
material content shall be based upon a determination that such products:
a. Are not available within a reasonable period of time;
b. Are not available at a reasonable price; and /or
c. Fail to meet reasonable performance standards set forth in applicable specifications.
F. Purchase of Recyclable Plastic Products
In the specifications and purchase of disposable food service products and bags:
1. The City shall specify and utilize products, which are exclusively recyclable where available
and locally marketed. Preference shall be given to products manufactured from materials
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I _
which are readily recyclable with developed recycling markets and processes; and
2. City employees in all departments shall use washable beverage cups and other food services
ware in the place of disposable items wherever possible. Disposable cups and utensils shall
be utilized primarily for meetings and department guests.
G. Recycling/Reuse
The City shall also recycle or reuse materials and supplies of purchases as much as possible.
Following is a listing of some basic items which shall be recycled or reused: paper, cardboard,
scrap metal, tires, lubricants, and solvents, lead acid batteries, roadside brush and chipped wood
waste, plastic materials, and surplus property.
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30.195 RIGHT TO AUDIT RECORDS
A. Records Maintenance: Access
Contractors and subcontractors shall maintain all fiscal records relating to public contracts in accordance
with generally accepted accounting principles. In addition, contractors and subcontractors shall
maintain any other records necessary to clearly document (i) their performance and (ii) any claims arising
from or relating to their performance under a public contract. Contractors and subcontractors shall
make all records pertaining to their performance and any claims under a public contract accessible to the
City at reasonable times and places, regardless whether litigation has been filed as to such claims.
B. Audit of Cost or Pricing Data
The City may, at reasonable times and places, audit the books and records of any person who has
submitted cost or pricing data according to the terms of a contract to the extent that such books and
records relate to such cost or pricing data. Any person who receives a contract, for which cost or
pricing data are required, shall maintain such books and records that relate to such cost or pricing data
for three (3) years from the date of final payment under the contract, unless a shorter period is otherwise
authorized in writing.
C. Contract Audit
The City shall be entitled to inspect, examine, copy, and audit the books and records of a contractor or
any subcontractor under any contract or subcontract to the extent that such books and records relate to
the performance of such contract or subcontract. Such books and records shall be maintained by the
contractor for a period of three (3) years from the date of final payment under the prime contract and
by the subcontract for a period of three (3) years from the date of final payment under the subcontract,
or until the condusion of any audit, controversy or litigation arising out of or related to the contract,
whichever date is later, unless a shorter period is otherwise authorized in writing.
30.200 RIGHT TO INSPECT PLANT f r Formatted: Don't keep with next, Don't keep
lines together
A. Time for Inspection • ----- Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab stops: Not
• at 1"
The City may, at reasonable times, inspect the part of the plant or place of business of a contractor or Formatted: Don't keep Imes together
any subcontractor that is related to the performance of any contract awarded.
B. Access to Plant or Place of Business
As a condition of bidding, bidders agree that the City may enter a contractor's or subcontractor's plant
or place of business during normal business hours for the following purposes:
1. Inspect and /or test supplies or services for acceptance by the City pursuant to the terms of the bid;
or
2. Investigate in connection with a bidder's application, a minority business certification, or bidder Formatted: Default Paragraph Font, Font:
disqualification. / Garamond, 12 pt
1 , Formatted: Font: Garamond
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Field Cods Changed
C. Contractual Provisions
Contracts may provide that the City may inspect supplies and services at the contractor's or
subcontractor's facility and perform tests to determine whether they conform to the bid documents, or,
after award, to contract requirements, and are therefore acceptable. Such inspections and tests shall be
conducted in accordance with the terms of the contract.
{ Formatted: Footer, Wldow /Orphan control
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D. Procedures for Trial Use and Testing
The City may establish operational procedures governing the testing and trial use of equipment,
materi21c, and the application of resulting information and data to specifications or procurements.
E. Conduct of Inspections
L Inspectors
Inspections or tests shall be performed so as not to unduly delay the work of the contractor or
subcontractor. No change of any provision of the specifications or the contract may be required by
the inspector without written authorization of the City, unless otherwise specified in the solicitation
documents. The presence or absence of an inspector shall not relieve the contractor or
subcontractor from any requirement of the contract.
2. Location - Formatted: Indent: Left: 0.25", Don't keep
with next, Don't keep lines together, Tab stops:
When an inspection is made in the plant or place of business of a contractor or subcontractor, such Not at I"
contractor or subcontractor shall provide without charge all reasonable facilities and assistance for Formatted: Don't keep lines together
the safety and convenience of the person performing the inspection or testing.
3. Time of Testing or Inspection
Inspection or testing of supplies and services performed at the plant or place of business of any
contractor or subcontractor shall be performed at reasonable times during normal business hours.
F. Inspection of Construction Projects
On -site inspection of construction shall be performed in accordance with the terms of the contract.
30.205 CONTRACT CANCELLATION AND TERMINATION PROCEDURES
A. A contract may be canceled by the City for any violation of the provisions of the contract or for
violation of the certification of non - discrimination against minority, women, and emerging small
business enterprises.
B. The City may terminate any contract if insufficient funds are appropriated to complete the contract.
C. No cancellation of a public contract shall, unless limited by the terms of the particular contract, restrict
or abrogate any other remedy available to the City that is provided either by law or under the particular
contract.
D. The City shall provide the contractor written notice of the grounds for cancellation or termination and
of its intention to cancel the contract or terminate the contractor's performance. If the contractor
provided a performance and payment bond, the surety shall also be provided with a copy of the notice
of contract cancellation or contractor termination. The notice shall include the effective date of the , Formatted: Default Paragraph Font, Font:
intended cancellation or termination, the grounds for cancellation or termination and notice of the Garamond, 12 pt
amount of time (if any) in which the City will permit the contractor to correct the failure to perform. , Fonnattad: Font: Garamond
The public contract may provide contract cancellation or contractor termination procedures that are - : Left, Tab stops: 7', Right
different from or in addition to those provided in this rule • , Field rude charged
PliVfikk
1 r r
E. If the contractor has provided a performance and payment bond, the City may afford the contractor's
surety the opportunity, upon the surety's receipt of a contractor termination notice, to provide a
substitute contractor to complete performance of the contract. Performance by the substitute
contractor shall be rendered pursuant to all material provisions of the original contract, induding the
provisions of the performance and payment bond. Such substitute performance does not involve the
award of a new public contract and shall not be subject to competitive procurement requirements.
fCR 40.000 - PUBLIC IMPROVEMENT CONTRACTS ___ -• -{ Formatted: Font 12 pt
40.010 APPLICATION
In addition to the requirements set forth in Section 30 of these rules, the following rules apply to public
improvement contracts. The requirements in Section 40 are intended to be complementary to those in
Section 30, with the rules in Section 40 supplementing the Section 30 requirements, where necessary, to
meet the City's needs when administering contracts for public improvements.
40.015 COMPETITIVE BIDDING
Except as otherwise specifically permitted by these rules, public improvement contracts shall be awarded by
competitive bidding. If the public improvement contract includes design aspects, induding value
engineering under a CM /GC covered project, the City may award the contract by a competitive proposal
process.
40.020 FIRST TIER SUBCONTRACTOR NOTICE
If the public improvement contract may be for more than $100,000, the solicitation documents must
provide notice that the contractors must disclose first -tier subcontractors who will furnish labor or materials
greater than five percent of the total bid or $15,000, whichever is greater, or $350,000 regardless of the
percentage of the total bid within two working hours after the deadline for bid submission. The disclosure
must state the name of each subcontractor and the category of work the subcontractor will perform.
40.025 FIRST TIER SUBCONTRACTOR DISCLOSURE • Formatted: Don't keep with next, Don't keep
.. Imes together
A. Bidders for public contracts with a value of more than $100,000 must submit a first -tier contractor . Formatted: Don't keep lines together
disclosure sheet within two hours of the deadline for submitting a bid. The disclosure sheet must list all
first -tier subcontractors who will furnish labor or materials greater than five percent of the total bid or
$15,000, whichever is greater, or $350,000 regardless of the percentage of the total bid. The disclosure
must state the name of each subcontractor, the category of work the subcontractor will perform and the
dollar value of each subcontract. If no first -tier subcontractor meets the threshold level for disdosure
and the bid price is more than $100,000, the disdosure sheet must still be submitted with the
information that no subcontractors meet the threshold level for disclosure.
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B. Bid and proposals for public improvement contracts with a value of greater than $100,000 for which of Formatted: Indent: Left: 0 ", Don't keep lines
first -tier subcontractor disclosure is not submitted within two hours of the submittal deadline shall be 11 together, Tab stops: Not at 1"
considered non - responsive. r
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C. The dosing for submission of bids subject to first -tier subcontractor disclosure shall be on Tuesday, Formatted:
, Tab Indent: left: o ", Don't keep ones
tegettrer sbops Not at 1"
Wednesday or Thursday between 2 and 5 pm.
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• '" Formatted: Footer, Widow /Orphan control
1 i
D. First tier subcontractors may be substituted if only in compliance with ORS 279C.585. ----- Formatted: Indent: Left: 0 ", Don't keep lines
w together, Tab stops: Not at 1"
E. The City may require first-tier subcontractor disclosure in any invitation to bid, even if disclosure is not.- Formatted: Don't keep lines together
otherwise required by statute or these rules. Formatted: Indent: Left: 0 ", Don't keep Ones
together, Tab stops: Not at 1"
40.030 BID EVALUATION AND AWARD
A. General
Unless exempted by these rules, a public improvement contract, if awarded, is to be awarded to the
lowest, responsive and responsible bidder.
B. Special Requirements
The solicitation documents shall set forth any special requirements and criteria, which will be used to
determine the lowest, responsive and responsible bidder. No bid shall be evaluated for any requirement
or criterion that is not disclosed in the solicitation documents or City regulation.
C. Bid Evaluation and Award
The evaluation format for competitive bid pricing can be lump sum, unit price, or a combination of the
two.
1. Lump sum
If the bid form includes a lump sum base bid, plus additive or deductive alternates, the total bid
price, for the purpose of comparing bids, shall be the total sum computed from adding or deducting
alternates, as selected by the City, to the base bid. If the alternates, or if the City has selected no
additive or deductive alternates for award, bids shall be compared on the basis of lump sum prices,
or Lump sum base bid prices, as applicable.
2. Unit Price
If the bid includes unit prices and extensions for estimated quantities, the total bid price, for the
purpose of comparing bids, will be the total sum computed from multiplying the bidder, with due
adjustments being made for additive or deductive altemates, if any, selected for award. Note: In
case of a conflict between a unit price and the corresponding extended amount, the unit price shall
govern.
3. Combination Lump Sum and Unit Price
The City shall select a combination of factors for purposes of bid evaluation and contract award and
use the methods described in (a) and (b) to compute and compare bids. Note: In case of a conflict
between a unit price and the corresponding extended amount. the unit price shall govern. 11 1
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D. Proposal Evaluation and Award
If a selection method other than competitive bids is authorized by these rules for a public improvement,
proposals will be evaluated to determine which proposer offers the best solution to the City in
accordance with the evaluation criteria set forth in the solicitation documents and in the City's rules.
The solicitation evaluation criteria may include, but are not limited to, cost, quality, relevant experience,
service, performance history on other private and public contracts, experience and availability of key
personnel, adequacy of equipment and physical plant, financial wherewithal, sources of supply, and
references. Evaluation factors need not be precise predictors of actual future costs and performance,
but, to the extent possible, such evaluation factors shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at
the least cost.
E. No assignment or transfer of contract rights
A contractor shall not assign, sell, or transfer rights, nor delegate responsibilities under a public contract
either in whole or in part, without first obtaining the City's prior written consent. Such written consent
shall not relieve a contractor of any obligations under a public contract, and any transferee shall be
considered the agent of the contractor and bound to abide by all provisions of the public contract.
Except in the event of a novation, if the City consents in writing to an assignment, sale, or transfer of
the contractor's rights and responsibilities, the contractor shall remain ultimately liable to the City for
complete performance of the public contract as if on such assignment, sale, or transfer had occurred.
40.035 CONTRACT CANCELLATION PROCEDURES • Formatted: Don't keep with next, Don't keep
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A. Termination Due to Circumstances Beyond the Control of the Contractor • Formatted: Indent: Left: 0", Don't keep with
next, Don't keep lines together, Tab stops: Not
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1. Reasons for Termination
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The City in its sole discretion, by written order or upon written request from the contractor, • Formatted: Indent: Left: 0.25 ", Don't keep
terminate the contract or a portion thereof if any of the following occur: with next, Don't keep lines together, Tab stops:
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a. The contractor is prevented from completing the work for reasons beyond the control of the Formatted: Don't keep lines together
City;
b. Completion of the project is beyond the control of the contractor,
c. For any reason considered by the City to be in the public interest (other than a labor dispute or
reason of any third party judicial proceeding relating to the work other than a suit or action filed
in regards to a labor dispute). These reasons may include, but are not necessarily limited to,
non - availability of materials, phenomenon of nature of catastrophic proportions or intensity,
executive orders of the President related to national defense, congressional or state acts related
to funding;
d. Any third party judicial proceeding relating to the work other than a suit or action filed in { Fort: Footer, Widow/Orphan control
fi4 .
regards to a labor dispute;
e. If the circumstances or conditions are such that it is impracticable within a reasonable time to
proceed with a substantial portion of the public works;
f. The City does not have funds budgeted or available to complete the contract; or
g. Any other reason allowed as a basis for termination under the contract.
2. Payment When Contract is Terminated
When the contract, or any portion thereof, is terminated before completion of all items of work in
the contract, payment will be made for the actual items of work completed under the contract, or by
mutual agreement, for items of work partially completed. No claim for loss of anticipated profits
will be allowed.
3. Responsibility for Completed Work if Contract Terminated
Termination of the contract or a portion thereof shall not relieve the contractor of responsibility for
the work completed, nor shall it relieve the surety of its obligation for any claims arising from the
work performed.
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B. Termination of Contract for Default
1. Declaration of Default
The City may, after giving the contractor or the surety seven (7) days' written notice and an
opportunity to cure deficient performance, terminate the contractor's performance for any
reasonable cause, including but not limited to those set forth in subsection 2(a)(1) to (6) of this rule.
Upon such termination, the City may immediately take possession of the premises and of all
materials, tools and appliances thereon as well as all other materials, whether on the premises or not,
on which the contractor has received partial payment. The agency may finish the work by whatever
method it may deem expedient.
a. If the contractor should persistently or repeatedly refuse to or fail to supply an adequate number
of properly skilled workers or proper materials for the efficient execution of the project; or
b. If the contractor should fail to make prompt payment to subcontractors for material or labor, or
persistently disregard laws, ordinances, or the instruction of the City, or otherwise be guilty of a
substantial violation of any provision of the contract; or
c. If the Contractor should voluntarily or involuntarily seek protection under the U.S. Bankruptcy
Code and its Debtor in Possession or Trustee for the estate fails to assume the contract within a
reasonable time; or
d. If the contractor should make a general assignment for the benefit of the contractor's creditors;
or
e. If a receiver should be appointed on account of the contractor's insolvency; or
f. If the contractor is otherwise in material breach of any part of the contract.
2. Required Response to Declaration of Default
If the above action is taken, the contractor or the surety shall provide the City with immediate and
peaceful possession of all of the materials, tools, and appliances located on the premises, as well as
all other materials whether on the premises or not, on which contractor has received any progress
payment. Further, the contractor shall not be entitled to receive any further payment until the work
is completed. On the completion of the work, determination shall be made by the City of the total
amount under the terms of the contract, had the contractor completed the work. If the difference
between said total amount and the sum of all amounts previously paid to the contractor, which
difference will hereinafter be called the "unpaid balance," exceeds the expense incurred by the City
in completing the work, including expense for additional managerial and administrative services,
such excess will be paid to the contractor, with the consent of the surety. If, instead, the expense
incurred by the City exceeds the unpaid balance, the amount of the excess shall be paid to the City
by the contractor or the surety.
3. Expense of Completion
The expense incurred by the City shall be as determined and certified by the City.
4. Substitution of Contractor ,. Formatted: Footer, WIdow /orphan control
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As provided in PCR 30.205, termination of the contractor and substitution of another contractor to
complete the work does not constitute the award of a new public contract and shall not be subject
to the provisions of ORS 279.005 to 279.111279A.015 (5). ORS 279B.050 to ORS 279B.085. or
ORS 279C.300 to ORS 279C.470.
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from the above - mentioned right of the City to terminate the employment of Not next, Don't keep lines together, Tab stops:
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the contractor, the contract may be canceled by the City for any willful failure or refusal on the part Formatted: Don't keep lines together
of the contractor to perform faithfully the contract according to all of its terms and conditions;
however, in such event neither the contractor nor the surety shall be relieved from damages or
losses suffered by the City on account of the contractor's breach of contract.
6. Remedies are Cumulative
The City may, at its discretion, avail itself of any or all of the above rights or remedies without
prejudice or preclude the City from subsequently invoking any other right or remedy set forth above
or elsewhere in the contract.
40.040 RETAINAGE
A. Retainage of Five Percent
The City will retain amounts from progress payments so that the total value of all amounts retained will
not exceed 5 percent of the value of completed work. If the contract work is 50 percent completed and
the work is progressing satisfactorily, the retainage may be reduced on the remaining progress payments.
Any reduction or elimination of retainage shall be allowed only upon written application of the
contractor, which application shall include written approval of the contractor's surety; except that when
the contract work is 97 -1/2 percent completed, the City may without application by the contractor,
reduce the retained amount to 100 percent of the value of the contract work remaining to be done. If
retainage has been reduced or eliminated, the City reserves the right in protecting its interests to
reinstate at any time retainage from further progress payments.
B. Alternatives to Cash Retainage
In lieu of cash retainage to be held by the City, the contractor may select one of the following options:
1. Deposit of Securities
The contractor may deposit bonds or securities with the City or in any bank or trust company to be
held for the benefit of the City. In such event, the City shall reduce the retainage in an amount equal
to the value of the bonds and securities. This reduction in retainage will be made in the progress
payments made subsequent to the time the contractor deposits the bonds and securities.
The value of the bonds and securities will be determined periodically by the City and the amount
retained on progress payments will be adjusted accordingly. The bonds and securities deposited by F aram ` Default Paragraph Font, Font
P $� PaYm 1 eP° Y -� Garamond, Iz pt
the contractor shall be fully assigned to the City or be payable to the City on demand and shall be of : Font: Garamond
a character approved by the Finance Director, including but not limited to the following:
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a. Bills, certificates, notes or bonds of the United States.
b. Other obligations of the United States or its agencies.
c. Obligations of any corporation wholly owned by the Federal Government.
d. Indebtedness of the Federal National Mortgage Association.
e. Time certificates of deposit or savings account passbooks issued by a commercial bank, savings
and loan association, or mutual savings bank, duly authorized to do business in Oregon.
f. Corporation bonds rated A or better by a recognized rating service.
g. General obligation bonds of the State of Oregon or any political subdivision thereof.
h. General obligation improvement warrants issued pursuant to ORS 287.502.
i. Irrevocable letters of credit from a bank doing business in Oregon.
At the time the City determines that all requirements for the protection of the City's interest has
been fulfilled, all bonds and securities deposited as above provided will be released to the contractor.
2. Deposit in Interest- Bearing Accounts
Upon written request of the contractor, the City shall deposit any amounts withheld as retainage in
an interest- bearing account in a bank, savings bank, trust company, or savings association for the
benefit of the City. Interest earned on such account shall accrue to the contractor.
3. The City may, at its discretion, allow the contractor to deposit a surety bond in a form acceptable to
the City in lieu of all or a portion of funds retained to be retained. The contractor shall accept like
bonds from subcontractors and suppliers when the City allows surety bonds for retainage.
C. Recovery of Costs
If the City incurs additional costs as a result of the exercise of any of the options for retainage described
herein, the City may recover such costs from the contractor by reduction of the final payment. As work
on the contract progresses, the City shall, upon request, inform the contractor of all accrued costs.
40.045 PROGRESS PAYMENTS
A. Request for Progress Payments
At a regular time each month, the contractor shall, if required by the contract documents, submit to the
City a request for payment based upon an estimate of the amount of work completed and of the value
of acceptable material to be incorporated in the completed work which has been delivered and
acceptably stored. Upon verification and approval of the City, the sum of these values will be referred
to the "value of completed work." With these estimates as a base, a progress payment will be made to
the contractor, which shall be equal to the value of completed work, less such amounts as may have
been previously paid, less such other amounts as may be deductible or as may be owing and due to the
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City for any cause, and less an amount to be retained in protection of the City's interests.
B. Progress Payments Do Not Constitute Acceptance of Work
Progress payments shall not be construed as an acceptance or approval of any part of the work covered
thereby, and they shall in no manner relieve the contractor of responsibility for defective workmanship
or material.
C. Estimates for Progress Payments
The estimates upon which progress payments are based are not represented to be accurate estimates,
and all quantities shown therein are subject to correction in the final estimate. If the contractor uses
such estimates as a basis for making payments to subcontractors, this is at the contractor's own risk, and
the contractor shall bear all loss that may result.
D. Contractor Certified Payroll Payment Withholding
The City shall withhold 25% of any amount owed to a contractor if the contractor does not file certified
payroll records with the City along with any invoice for payment on any project covered by Prevailing
Wage Rate Law.
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40.050 FINAL INSPECTION
A. Notification of Completion
When the contractor determines that all construction work on the project has been completed, the
contractor shall so notify the City in writing. The City shall make an inspection of the project and
project records within fifteen (15) days of receiving said notice. If, at such inspection, all construction
provided for and ordered under the contract is complete and satisfactory to the City, and all
certifications, bills, forms, and documents have been submitted properly, such inspection shall constitute
the final inspection.
B. Instructions to Complete the Work
If, however, at any inspection, any work in whole or in part is found unsatisfactory, or it is found that all
certifications, bills, forms, and documents have not been submitted properly, the City shall within fifteen
(15) days provide instructions to the contractor on outstanding requirements to complete the project.
At such time as the contractor determines full compliance with, and the execution of such instructions,
the contractor shall notify the City in writing. The City shall make another inspection within fifteen (15)
days after such notice, and this inspection shall constitute the final inspection provided construction
work has been completed satisfactorily.
C. Acknowledgment of Acceptance
Upon satisfactory completion of all work required under the contract, the City shall acknowledge
acceptance of the work in writing.
40.055 FINAL ESTIMATE AND FINAL PAYMENT
A. Submission of Final Estimate
As soon as practicable after final inspection of the work under the contract, if unit prices were
applicable, the City shall prepare a final estimate of the quantities of the various classes of work
performed. Following a determination of the total amount due the contractor, and following final
acceptance of the work by the City, final payment shall be made to the contractor.
B. Set -off of Prior Payments 4- Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep fines together, Tab stops: Not
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All prior partial estimates and payments shall be subject to correction in the final estimate and payment. Formatted: Don't keep lines together -
C.Intcrc +t • { Formatted: Bullets and Numbering
C. - - - ! .. .. .. - - " — - : Retainage
Any retainage help by the City shall be included in and paid to the contractor as part of a contract's final
payment.
D. Interest
In accordance with ORS 279C.570 (8), the City shall pay to thcg contractor interest at the rate
etitablisiteeliteof 1.5 percent per month on any eneythe final payment due and- payable -to
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overdue. No a contractor, with the interest to commence thirty (30) days after the work under the
contract has been completed and accepted and shall . .. „ - , -- " . -
-.. - - .. - run until the date when the final payment is paid to the contractor.
40.060 CLAIMS FOR UNPAID LABOR OR SUPPLIES Formatted: Don't keep with next, Don't keep
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A. Right of Action • Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab stops: Not
A person claiming to have supplied labor or materials for work on a public improvement contract led by at 1"
the City for which the person has not been paid by the prime contractor or any subcontractor, has a Don't keep lines together
right of action on the contractor's payment bond. This right arises if the person has not been paid in
full and has given written notice of a claim within 120 days of last providing labor or famishing
materials, or within 150 days of providing labor or furnishing materials if the claim is for a required
contribution to a fund of any employee benefit plan.
B. Notice of Claim
1. To initiate a claim against the contractor's bond, a person should file a Notice of Claim in the forme ' Formatted: Indent: Left: 0.25 ", Tab stops:
and manner attached as PCR 40.061 - Exhibit A. Such notice must be given to the contractor and Not at 0.5" + 1"
the City.
2. Any notice of claim should include the following information: • i Formatted: Indent: Left: 0.25 ", Tab stops:
Not at 0.5" + 1"
a. Name and address of the claimant; •i Formatted: Indent: Left: 0.5 ", Tab stops: Not
at 0.75" + 1.63"
b. Name of prime contractor; • - I Formatted: Indent: Left: 0.5", Tab stops: Not
at 0.75" + 1.63" J
c. Title of project and contract date; 4-1 Formatted: Indent: Left: 0.5 ", Tab stops: Not
at 0.75" + 1.63"
d. Name of the City; t i Formatted: Indent: Left: 0.5 ", Tab stops: Not
at 0.75" + 1.63"
e. Name of bonding company (may be obtained from City); and .-1 Formatted: Indent: Left: 0.5 ", Tab stops: Not
at 0.75" + 1.63"
f. Name of contractor or subcontractor to whom labor or material supplied. f{ Formatted: Indent: Left: 0.5 ", Tab stops: Not
at 0.75" + 1.63"
C. Response to Notice of Claim
Upon receipt of such Notice of Claim, the City shall:
1. Send an acknowledgment to claimant
2. Send a copy of the notice to the prime contractor, and
3. File a copy of the Notice with the bonding (surety) company.
D. Referral to Surety Company Formatted: Default Paragraph Font, Font:
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If the contract has been completed and all funds disbursed to the prime contractor, all claims shall be ' , Formatted: Font: Garamond
referred to the surety company for resolution. The City shall not arrange for second payments directly : Formatted: Left, Tab stops: 7 ", Right
to subcontractors or suppliers for work already paid for by the City. , Field code ganged
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E. Discretionary Payment of Claim
If the contract is still in force, the City may pay a valid claim to the person furnishing the labor or
services and charge the amount of the payment against funds due or to become due to the contractor
under the contract.
F. Liability of Claim
If the City chooses to make a payment as provided in Subsection E, the contractor or the contractor's
surety shall not be relieved from obligation with respect to any unpaid claims.
40.061 EXHIBIT A
To: (insert name of the public body)
NOTICE IS HEREBY GIVEN that the undersigned, (insert name of subcontractor or supplier), a (corporation,
partnership, sole proprietorship, etc.), as claimant, has a claim for (labor performed by the claimant, materials supplied by
the claimant, etc.), generally consisting of (brief description) in the sum of $ against the payment bond taken
from (name of prime contractor), as principal, and (name of bonding company if known), as surety, for the construction of
the (title or description of project). The material or labor was supplied to (name of contractor).
(Insert a brief description of the work concerning which the bond was taken.)
DATED this day of . 20_.
By
(claimant's name)
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40.065 PLANNING FOR PUBLIC IMPROVEMENTS
The City will prepare a file with the Commissioner of the Bureau of Labor and Industries a list of planned
public improvements at least 30 days before adoption of the City's budget and otherwise comply with ORS
279C.305.
40.070 PREVAILING WAGE LAWS
Contractors shall comply with all Prevailing Wage Rate Laws (ORS 279C.800 to 279C.870 or the Davis -
Bacon Act, 40 US 276a) if applicable.
1 7CR 50.000 - WAIVER OF SECURITY (BID. PERFORMANCE AND PAYMENT BONDS) (Also { Formatted: Font: 12 pt
see PCR 30.055)
50.010 BID SECURITY REQUIREMENTS
The City shall require bid security unless an exception under the Public Contracting Code or these rules
apply. The City may, in its discretion, waive bid security requirements for contracts other than those for
public improvements. In its discretion, the City may accept blanket bid bonds. The City may require
proposal security bonds.
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50.015 CONTRACTS UNDER $10,000
The City may, in its discretion, waive the bid security and performance bond requirements if the amount of
the contract is less than $10,000.
50.020 EMERGING SMALL BUSINESS CONTRACTS UNDER $100,000
A. The City may, in its discretion, waive bid security requirements and performance bond requirements
when the public improvement project:
1. Has estimated direct construction costs not exceeding $100,000;
2. Is being undertaken through a program where the bidders are drawn exclusively from a list of
certified Emerging Small Businesses maintained by the Advocate of Minority, Women and
Emerging Small Business; and
3. The City has been provided funds by the legislature for the purpose of assisting Emerging Small
Businesses.
B. The City may waive bid security requirements and /or performance bond requirements under the
following conditions:
1. There exists an emerging small business account or like source of funds containing an unexpended
and unobligated balance;
2. The City has authority to encumber and make payments from the account; and
3. The City encumbers an amount in the account to cover the total cost of each project wherein the
bid security and /or the performance bond is waived.
,PCR 60.000 - PROPERTY DISPOSITION I -{ Formatted: Font: 12 pt
60.010 SURPLUS PERSONAL PROPERTY
A. Personal property owned by the City and under the dollar value of $500 may be disposed of with the
approval of any department head or the City Manager. Personal property that exceeds that dollar value
may be disposed of only after being declared surplus by the City Manager. The method of disposal will
be determined based on condition, value, demand, and /or use.
B. Personal property may be declared surplus by the City Manager or designee if it is scheduled for
replacement in an adopted budget or it is no longer necessary to provide City services.
60.015 AUCTION SALES OF PERSONAL PROPERTY
Personal property may be sold at auction if the City determines that an auction will probably result in the
best net return for the City. Auctions that are widely publicized, including intemet auctions, do not require ( Fo : Default Paragraph Font, Font:
notice by the City. Garamond, 12 pt
, Formatted: Font: Garamond
60.020 SALES OF PERSONAL PROPERTY Formatted: Left, Tab stops: 7, Right
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1324.74
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A. When the current market value per item is estimated to be more than $25,000, the personal property
must be offered for competitive bid and be advertised in a newspaper of general circulation in the City.
The City at its discretion may choose between sealed written bids or a public auction. If no bids are
received or if a determination is made that the market value of the property exceeds the offer of the
highest responsible bidder, all bids may be rejected, and the City may negotiate a sale subject to the
following conditions:
1. An appraisal of the market value of the property is obtained and documented, and the negotiated
sale price exceeds the market value; or
2. The sale amount exceeds the highest bid received through the bidding or auction process.
B. The City may sell personal property by a negotiated sale if the value of the property is estimated to be - - f Formatted: Indent: Left: 0 ", Don't keep lines
less than $25,000 and the City has determined that a sale without competitive bidding will result in at ,to Tab stops: Not at 1_63"
least as much net revenue as would a competitive bidding process. The City shall endeavor to get as
many quotes as is reasonable under the circumstances (normally at least three) and shall negotiate to
maximize the proceeds for the City.
60.025 LIQUIDATION SALES OF PERSONAL PROPERTY
The City may sell personal property through a commercially recognized third party liquidator if the City has
determined that a liquidation sale will result in increased net revenue and the selection of the liquidator was
conducted by the competitive request for proposal process under these rules.
60.030 DONATIONS OF PERSONAL PROPERTY
A. The City may transfer personal property, including recyclable or reclaimed materials, without
remuneration or only nominal remuneration without competitive bids to the following entities:
1. Another public agency;
2. Any sheltered workshop, work activity center or group care home which operates under contract or
agreement with, or grant from, any state agency and which is certified to receive federal surplus
property; or
3. Any recognized non - profit activity, which is certified to receive federal surplus property.
B. The City may donate or sell, without competitive bids, surplus personal property to recognized private,
non -profit social or health service activities, subject to the following conditions:
1. A determination has been made that the property is not needed for other public purposes; and
2. If the property has a current market value of $500 or more, the donation or sale shall:
a. Be approved by the City Manager or designee; and
b. Be documented by the City to be clearly in the public interest.
C. The City shall maintain a record of all transfers, donations, or sales authorized by sections A and B of
this rule. .f Formatted: Footer, Widow /Orphan / rphan control
74
ft
60.035 TRADE OF PERSONAL PROPERTY - - Formatted: Don't keep with next, Don't keep
lines together
The City may trade personal property owned by the City to other government agencies or to other entities Formatted: Don't keep lines together
provided the following conditions apply:
A. Trades to other government agencies are exempt from public bidding by PCR 10.010A.1; however, such
trades must be approved by the City Manager.
B. Trades of personal property with parties other than government agencies must proceed as follows:
1. The market value of both the item to be traded and the item requested must be documented.
2. The proposal to trade an item for another item must be made available to an adequate number of
potential vendors to encourage competition.
3. Such trades must be approved by the City Manager.
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60.040 DISPOSAL OF SURPLUS PERSONAL PROPERTY MEETING HAZARDOUS WASTE
DEFINITIONS
If personal property has been declared surplus by the City and can be defined as a hazardous material or
waste, including electronic material. or e- waste. the City may appropriately recycle or dispose of the property
without competitive bids subject to the following conditions:
A. A determination has been made that the property is not needed for other public purposes,
B. If the property has a current market value of 96500 or more. staff made a good faith effort to locate a
seller and documentation of the effort will be made part of the City's files.
?CR 70.000 - PERSONAL SERVICES CONTRACTS - -{ Formatted: Font: 12 pt
70.010 PERSONAL SERVICES CONTRACTS
A. Personal service contracts are not "public contracts" subject to formal competitive process under the
Oregon Public Contracting Code. This fuleSection of the PCRs describes a method for distinguishing
between personal service contracts and public contracts, particularly service contracts, and provides
examples of contracts or dasses of contracts which are or are not personal service contracts.
B. The determination whether a contract is a public contracts or a personal service contract shall be based
on the following.
1. Whether the City has developed or is reasonably able to develop reasonably adequate design and /or
performance specifications and whether selecting a contractor on the basis of lowest price and
meeting minimum specifications would likely meet the City's needs. If the tasks to be performed
can reasonably be performed based solely on compliance with minimum specifications, then the
tasks should be performed pursuant to a public contract awarded by a competitive bidding process.
Conversely, if the City is reasonably unable to develop adequate design and /or performance
specifications but must instead have the assistance of the contractor's training, knowledge, and
expertise to develop a scope of work statement and selecting the contractor on the basis of lowest
price would be unlikely to meet the City's needs, then the tasks would most appropriately be
performed under a personal service contract.
2. Whether selecting the contractor on the basis of qualifications rather than lowest price will result in
the City obtaining the best value for its money.
3. A personal service contract is appropriate where the contract is awarded primarily on the basis of
the contractor's qualifications, including but not limited to, such criteria as experience, training,
knowledge, and expertise, technical skill, creativity, artistic ability, performance history, and
demonstrated ability to exercise sound professional judgment. Price will be a secondary criterion for
awarding a personal service contract.
4. A personal service contract is not appropriate where price is or should be the primary or a major
selection criterion.
C. Personal service contracts may include, but are not limited to, the following:
1. Contracts for services performed as an independent contractor in the professional capacity, { Formatted: Footer, Widow/Orphan control
t
including but not limited to the services of an accountant; attorney; architectural or land use
planning consultant; physician or dentist; registered professional engineer; appraiser or surveyor;
aerial photographer; timber cruiser; broadcaster; or data processing consultant.
2. Contracts for such services as an artist in the performing of fine arts, including but not limited to
photographer, filmmaker; painter; weaver; or sculptor.
3. Contracts for services of a specialized creative and research oriented, noncommercial nature.
{ Formatted: Bullets and Numbering
54. Contracts for educational and human custodial care services.
D. The following are NOT personal service contracts:
1. Contracts, even though in a professional capacity, if predominately for a product, e.g., a contract
with a landscape architect to design a garden is for personal services, but a contract to design a
garden and supply all the shrubs and trees is predominately a tangible product.
2. A service contract, including a contract with a temporary service or personnel agency, to supply
labor which is of a type that can generally be done by any competent worker, e.g., data entry, key
janitorial, security guard, crowd management, crop spraying, laundry, and landscape
maintenance service contracts
3. Contracts for trade related activities considered to be labor and material contracts.
4. Contracts for services of a trade- related activity, to accomplish routine, continuing, and necessary
functions, even though a specific license is required to engage in the activity. Examples are repair
and /or maintenance of all types of equipment or structures.
70.015 SCREENING AND SELECTION POLICY FOR PERSONAL SERVICES CONTRACTS
It is the City's policy to select as expeditiously as possible the best qualified consultant available, consistent
with financial considerations. The selection procedures in this section shall be used to select the personal
services contractors, except where ORS 279C.110 requires a different procedure. The selections procedures
do not apply to the appointment or hiring of City officials and employees, to employment or services
contracts with City officials and employees (except if providing services outside the scope of employment or
official duties), or to collective bargaining agreements.
A. Formal Selection Procedure
This procedure shall be used for personal service contracts when the total cost of the contract exceeds
$50100,000. The City may elect to use the Formal Selection Procedure for any personal service
contract, regardless of price.
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Garamond, 12 pt
Formatted: Font: Garamond
Formatted: Left, Tab stops: 7 ", Right
, ^, rm
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1. Announcement
The City will make at least one public announcement of its need for personal services in an
appropriate trade periodical or newspaper of general circulation. The announcement shall include a
description of the proposed project, the scope of the services required, project completion dates,
and a description of any special requirements, if present. The announcement shall invite qualified
prospective contractors to indicate to the requesting department their interest in performing the
services required. The announcement will specify a dosing date by which the statement must be
received by the appropriate department.
2. Application • Formatted: Indent: Left: 0.25 ", Don't keep
• with next, Don't keep lines together, Tab stops:
Not at 1"
Prospective contractors must submit a statement which describes their capabilities, credentials, and )
perfonnance data sufficient to establish their qualification for the project. Formatted: Don't keep lines together
3. Initial Screening
The Departrnent Head or designee shall evaluate the qualifications of all applicants responding to
the announcement by the dosing date and select from among the respondents a minimum of three
prospective contractors whose statements evidence the highest level of gratification. Should fewer
than three (3) statements be received, then each prospective contractor submitting statements that
meet the minimum qualifications will be interviewed.
4. Final Selection Procedure
a. Interviews
The Department Head or designee willmay hold discussions with the finalists selected for initial
screening. Applicant capability, experience, and compensation requirements shall determine the
department's final selection. The interviews may be in person or by phone.
b. Award of Contracts
The Department Head or designee shall make a recommendation to the Board for award of the
contract based on the written materials and the interview evaluation. The designee may be a
committee.
B. Informal Selection Procedure
1. This procedure may be used when the estimated fee to the contractor does not exceed $501QQ,000.
2. The department will contact a minimum of three (3) prospective contractors with which it has had
previous successful experience or which are known by the department to be qualified to offer the
sought -after services. A projected fee will be requested and a selection made by the Department
Head or designee based upon the consultant's capability, experience, project approach, and
compensation requirements.
C. Direct Appointment Procedure
L A qualified consultant may be appointed directly from the City's current list of consultants, another { Wien control
'O
public contracting agency's current list of consultants pursuant to an interagency or
intergovernmental agreement entered into in accordance with ORS Chapter 190; or from
consultants offering the necessary services that the City reasonably can locate. Direct appointment
procedure may be used when:
a. The consultant's estimated fee does not exceed $4-925 or
b. When the project consists of work that has been substantially described, planned, or otherwise
previously studied or rendered in an earlier departmental contract, provided that the original
selection procedure used for the project was a formal procedure and the consultant's estimated
fee does not exceed $30100
2. A direct appointment shall be competitive to the extent practicable and may be based on the
consultant's availability, capabilities, staffing experience, compensation requirements and the
project's location.
D. Emergency Appointment Procedure
Nothing in the rule shall be inferred to prohibit or otherwise impede the Department Head's or
designee's right to make direct consultant appointments when conditions require a prompt action to
protect life or property. In such instances, the recommended appointment and a written description of
the conditions requiring the use of this appointment procedure shall be submitted by the Department
Head or designee to the City Manager or designee for action. The City Manager or designee will
determine if an emergency exists, declare the emergency, and when appropriate, approve the
appointment.
E. Responsible Parties' Actions
1. Professional Consultants
Submit qualifications, credentials, and performance data relating to their capabilities to the
appropriate division in response to project announcement.
2. Division /Department
a. Determine that the work on a project requires the services of a consultant.
b. Announce project as required by this section.
c. Request the City Manager's approval of the required actions.
d. Determine appropriate selection /appointment procedure.
e. Select consultant /candidates as specified under this rule.
f. Interview the top candidates and make the final selection. Formatted: Default Paragraph Font, Font:
% Garamond, 12 pt
g. Execute contracts and awards to consultants, with the City Manager's prior approval. ' . Formatted: Font: Garamond
, Formatted: Left, Tab stops: r, Right
Field Cade Changed
PaQi 2
h. Maintain a file on the selection process, including:
1. The method and copy of the announcement.
2. The names of firms /individuals and cost estimates considered.
3. A justification of need for the contract.
4. The basis for selection.
5. The means by which rates were established.
6. How reasonableness of price was determined.
7. A copy of the resulting contract.
3. City Manager
a. Approves each project's scope and budget as necessary.
b. Makes direct and emergency appointments as required.
c. Approves /disapproves Personal Services Contract and all subsequent amendments unless the
amount of the contract requires the Board's approval.
70.020 AMENDMENTS
Amendments for additional work on personal service contracts shall be permitted only if the City requests
additional work of the same type. Any such amendment may not exceed 25% of the original contract value.
If an additional personal services contract is to be awarded for work related to an existing personal service
contract, the total value of the new and old contracts is to be considered in determining the type of selection
procedure required. If a contract was originally awarded by the informal selection procedure, amendments
that would result in a total contract price of more than $50,000 are not permitted. If a contract was
originally awarded by the direct appointment procedure under Section 70.015C.1.a, amendments that would
result in a total contract price of more than $10,000 are not permitted.
rCR 80.000 - EMERGENCY CONTRACTS: SPECIFIC EXEMPTION REOUIREMENTS; . - Formatted: Formatted: Font: 12 pt
BOARD EXCEPTION; PROCEDURES; TEMPORARY EXEMPTIONS Formatted: Don't keep with next, Don't keep
lines together
80.010 EMERGENCY CONTRACTS
• Formatted: Don't keep lines together
A. The City Manager or designee may, at the City Manager's or designee's discretion, authorize or let public Formatted: Indent: Left: 0 ", Don't keep lines
contracts without a formal competitive process if an emergency exists and the emergency consists of l together, Tab stops: Not at 1.63"
circumstances creating a substantial risk of loss, damage, interruption of service, or threat to public
health or safety that could not have been reasonably foreseen and requires prompt execution of a
contract to remedy the condition.
• { Formatted: Don't keep lines together
B. The City Manager or designee must declare the existence of an emergency, which shall authorize the• 1 } Formatted: Indent: Left: 0 ", Don't keep lines
City to enter into an emergency contract with a price under $50,000 and make detailed written findings tit. Tab stops: Not at 1.63"
describing the emergency conditions necessitating prompt execution of the contract. A copy of the { Formatted: Footer, Widow/Orphan control
8
q f )
findings together with the amount of the contract and the name of the contractor shall be immediately
forwarded by the City Manager to the Board.
• - - -- { Formatted: Don't keep lines together
C. Any contract awarded under this exemption shall be awarded within sixty (60) days following declaration• { Formatted: Indent: Left: 0", Don't keep lines
of the emergency unless an extension is granted. l together, Tab stops: Not at 1.63•
• { Formatted: Don't keep lines together
D. The City may enter into a public contract without a formal competitive process when circumstances that. Formatted: Indent: Left: 0 ", Don't keep lines
could not reasonably be anticipated, require prompt establishment and performance of the contract in together, Tab stops: Not at 1.63^
order to preserve public funds, property, or the uninterrupted provision of government services. In
exercising its authority under this exemption, the City shall:
1. To the extent reasonable under the circumstances, encourage competition by attempting to make
informal solicitations or to obtain informal quotes from potential suppliers of goods or services;
2. Make written findings describing the circumstances that require the prompt performance of the
contract and of the harm anticipated to result from failing to establish the contract on an expedited
basis; and
3. Record the measures taken under subsection (a) of this section to encourage competition, the
amounts of the quotes or proposals obtained, if any, and the reason for selecting the contractor.
E. The City shall not contract pursuant to the exemption in the absence of a substantial risk of loss,
damage, or interruption of services that would occur if contract performance awaited the time necessary,
given the complexity of the project, to solicit, receive and analyze bids or proposals.
f'CR 90.000 - RECYCLABLE /RECYCLED PURCHASING GUIDELINES • - Formatted: Font: 12 pt
Formatted: Don't keep with next, Don't keep
90.010 RECYCLED MATERIALS AND PRODUCTS GUIDELINES lines together
Al- { Formatted: Don't keep lines together
The City shall make ood faith effort to prefer, specify, and purchase recyclable items and materials
with recycled content in accordance with ORS 279A.125.
Incentives for recycled materials shall be applied whenever economically feasible.
A preference of 5% shall be applied for materiels and supplies manufactured from recycled materials, as
provided in PCR 90.015 with the exception of recycled paper and paper products, which receive a higher
preference percentage as stated in PCR 90.020.
The bidder or proposer shall indicate in its bid or proposal, the materials it considers subject to the 5%
preference. The 5% preference will only apply to the value of that portion of a bid or proposal that offers
products containing verifiable recycled contents. The "5% preference" shall be applied by dividing the bid
amount for the recycled goods by 1.05 and using the resulting number in calculating the total bid amount.
90.015 RECYCLED MATERIALS PREFERENCE
A. In order to qualify for a recyded materials preference, bidders and proposers, in their bids and Default Paragraph Font, Font:
proposals, shall certify the minimum or the exact percentage of recyded product in all materials and ,' Garamond,12 pt
supplies offered and both the post- consumer and secondary waste content thereof. I I r Formatted: Font: Garamond
Formatted: Left, Tab stops: 7 ", Right
B. Bids that contain false information about the percentage of recycled product, post - consumer and ' . Feld code Changed
Pagtil. '.
E
secondary waste content, and verifiable recycled content shall be rejected as non- responsive.
C. Contracts awarded as a result of a preference under this rule are subject to investigation, induding but
not limited to, audits, plant visitations, examination of invoices and other documents, etc., as the City
deems necessary to confirm that the products supplied contain the percentages of recycled product,
post - consumer and secondary waste stated in the bid or proposal.
D. Failure to provide products containing the percentages of recycled product, post- consumer and
secondary waste stated in the bid may result in:
L The contractor being required to reimburse the City for the portion of the contract price that is
attributable to the preference; and
2. Contract termination; or
3. Both 1 and 2, or such other remedies the City deems appropriate.
90.020 RECYCLED MATERIALS AND PRODUCTS PURCHASING GUIDELINES • Formatted: Don't keep with next, Don't keep
Tines together
A. Purchase of Paper Products • Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab stops: Not
The City promotes the use of recyded paper and paper products. Purchase of recycled paper and paper Formatted: Don't keep Tines together
products is preferred even when the cost of the such recyded paper or paper products is up to seven
percent (7 %) higher than the cost of the same quality paper or paper products containing little or no
recycled paper. "Recycled paper" shall be defined as a paper product with not less than fifty percent
(50 %) of its total weight consisting of secondary waste materials or twenty five percent (25 %) of its total
weight consisting of post - consumer waste.
1. In the specification and purchase of City high speed copier and small offset press application paper
and fine printing paper including book, bond, cover, gum, index, bristols, boards, ledger, and
duplicator papers:
a. The City shall use recycled paper wherever possible if available and compatible with existing
printing and copying equipment;
b. The City shall try to eliminate excessive or unnecessary paper use, including but not limited to
over - purchase of paper, over - printing of materials, purchases of too high a grade of paper,
purchase of paper which is not recyclable; and purchase of virgin paper when recycled paper is
available in the same grade;
c. Procurement specifications for the purchase of new printing and copying equipment shall
require the acceptance and operational use of recycled paper and shall be capable of two -sided
copy
d. The procurement of unbleached, recycled paper is encouraged and the use of bright, hard to
bleach colored or otherwise non - recyclable papers shall be discouraged; and
e. In the specification and purchase of other paper items including corrugated and fiberboard
boxes, folding box board and cartons, stationery, envelopes, legal and scratch pads, manifold
business forms (including computer paper), toilet tissue, paper towels, facial tissue, paper .{ Formatted: Footer, widow /orphan control
8
a t 3�
napkins and industrial wipes, and brown and coarse papers, the City shall actively solicit
information from vendors with regard to the availability of other paper products (as listed
above) with recycled paper content and promote its use.
B. Purchase of Composted Waste Materials • Formatted: Indent: Left: 0 ", Don't keep with
next, Don't keep lines together, Tab slops: Not
at 1.63"
In the specification and purchase of landscape cover, soil amendment, and fill materials:
—
Fornatted: Don't keep with next, Don't keep
lines together
1. The City shall eliminate from procurement specifications any exclusions or barriers to the purchase•.; Don't keep lines together
of recycled compost materials except for exclusions based upon plant or human health or safety; and `• Formatted: Indent: Lett: 0.25 DonY keep
lines together, Tab stops: Not at 1"
2. The City shall make every effort to utilize and specify functionally equivalent composted waste•• Formatted: Donut keep lines togett er
products in the place of products manufactured from virgin materials.
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lines together, Tab stops: Not at 1"
C P ere h a . c o f c . - __.d 4r: - _.• �.---
• -- Formatted: Bullets and Numbering
- ..: .. :. . . . - . . - . . { Formatted: Bullets and Numbering
. - - . . - . .. - : .. . - - - - .. ' - - { Formatted: Bullets and Numbering
"' -• - -- - - - --.. • -' -• • - - - -- - -- - . -. •-- -- { tted :BulletsandNum ng
. ... .. - .. .. _ , Forma beri
. .. , . - .: .. { Formatted: Bullets and Numbering
' - • - = - - . • . . • - f- ° °-{ Formatted: Bullets and Numbering
D C. Purchase of Re- refined Petroleum Products •----"-- Formatted: Indent: Left: 0 ", Numbered +
Level: 3 + Numbering Style: A, B, C, ... + Start
at: 2 + Alignment: Left + Aligned at: 1.38" +
In the purchase of lubricating oils for vehicles and equipment in the City fleet: Tab after: 1.63 + Indent at: 1.63 ", Tab
stops: 0.25 ", List tab + Not at 1.63"
1. The City shall make every reasonable effort to utilize lubricating oils with re -refined oil content
unless:
a. The product does not meet performance specifications recommended by the original equipment
manufacturer and related warranties would be voided; and
b. The product is found to not be economically or technically feasible. Formatted: Indent: Left: 0 ", Numbered +
Level: 1 + Numbering Style: A, 8, C, ... + Start
2. The Ci shall review current tocurement s ecifications in order to eliminate wherever at: 4 + Alignment: Left +Aligned at: 1.75 +
tY p P ( Tab after: 2" +Indent at: 2', Tab stops:
economically and technically feasible) an exclusion of lubricants refined from recyded waste o.z5 ", List tab + Not at 2"
materials. , Femnatted: Default Paragraph Font, Font:
Garamond, 12 pt
&D. Purchase of Building Insulation Products v' I r . Formatted: Font: Garamond
Formatted: Left, Tab stops: 7 ", Right
In the specification and purchase of bui ding insulation products: ; - ',, Fildd Code Changed
P*SeP_ —
1 f
1. The City shall make every effort to prefer, specify and purchase insulation products manufactured
from recovered or recycled materials for maintenance and repair operations, building construction
projects and work or projects which are let to private contractors; and
2. A decision not to purchase insulation products with the highest percentage of recovered material
content shall be based upon a determination that such products:
a. Are not available within a reasonable period of time;
b. Are not available at a reasonable price; and /or
c. Fail to meet reasonable performance standards set forth in applicable specifications.
&E. Purchase of Recyclable Plastic Products •- -- Formatted: Indent: Left: 0 ", Numbered +
Level: 1 + Numbering Style: A, B, C, ... + Start
at: 5 + Alignment: Left + Aligned at: 1.38" +
In the specifications and purchase of disposable food service products and bags: Tab after: 1.63" + Indent at: 1.63 ", Tab
stops: 0.25 ", List tab + Not at 1.63"
1. The City shall specify and utilize products, which are exclusively recyclable where available and
locally marketed. Preference shall be given to products manufactured from materials which are
readily recyclable with developed recycling markets and processes; and
.. :.. , . . { Formatted: Bullets and Numbering
GF. Recycling /Reuse Formatted: Indent: Left: 0 ", Numbered +
Level: 1 + Numbering Style: A, B, C, ... + Start
at: 6 + Alignment: Left + Aligned at: 0.75' +
The City shall also recycle or reuse materials and supplies of purchases as much as possible. Following Tab after: 1" + Indent at: 1 ", Tab stops:
is a listing of some basic items which shall be recyded or reused: paper, cardboard, scrap metal, tires, 0.25 ^, List tab + Not at 1"
lubricants, and solvents, lead acid batteries, roadside brush and chipped wood waste, plastic materials,
and surplus property.
?CR 100.00 — INTERGOVERNMENTAL AGREEMENTS
100.010 RIGHT TO ENTER INTERGOVERNMENTAL AGREEMENTS
The City may as set forth in ORS 190.010. enter into a written agreement with any other unit or units of
local government for the performance of any or all functions and activities that a party to the agreement, its
department. offices, officers, agents, or employees, have authority to perform. The Intergovernmental
eement shall serve to d- fine rol- • and res•onsi•ilities for e.ch ar .
Any agreement let by the City under this Section of the PCRs shall specify the functions or activities to be
performed and by what means they shall be performed. Information provided in the let Intergovernmental
Agreements shall include:
A. The agencies involved along with contact departments or divisions;
B. The functions or activities to be carried out, and by which party, during the terms of the agreement;
{ Formatted: Footer, Wldow /Orptwn control
84
t , C. Jo;
C. The payment and funding terms. if applicable;
D. The apportionment of fees or other revenue derived from the functions or activities under the
agreement. if applicable;
E. The duration terms of the agreement;
F. The rights of the parties to terminate the agreement;
All other provisions carried out in ORS 190.010 relating to Intergovernmental Agreements shall be followed
by the City.
100.020 APPLICABILITY OF INTERGOVERNMENTAL AGREEMENTS
The City shall require an Intergovernmental Agreement be let any time obligations between the City and a
unit or units of another local governmental agency exist. Exchange of funds does not need to occur for an
Intergovernmental Agreement to be required.
100.030 INTERGOVERNMENTAL AGREEMENT APPROVAL AUTHORITY
The Local Contract Review Board. serving in the role as the City's contracting agency. shall have. on behalf •- - Formatted: Left, Indent: Left: 0 ", Une
of the Tigard City Council. the right. and the sole right. to award the City's Intergovernmental Agreements. spacing: single
Upon award of an Intergovernmental Agreement by the Local Contract Review Board either the Mayor or
• ana • - hall b • . uth • rized to ex - ute and si • h - A. • em - nt.
Formatted: Default Paragraph Font, Font:
Garamond, 12 pt
Formatted: Font: Garamond
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Page 1: [1] Formatted Joseph Barrett 1/3/2011 9:40:00 AM
Default Paragraph Font, Font: Garamond, 12 pt
AIS -548 Item #: 6.
Workshop Meeting
Date: 06/21/2011
Length (in minutes): 45 Minutes
Agenda Title: Discussion on Tigard's Public Contracting Processes
Prepared For: Joseph Barrett Submitted By: Joseph Barrett
Financial and
Information
Services
Item Type: Update, Discussion, Direct Staff Meeting Type: Council
Workshop Mtg.
ISSUE
Discuss the public contracting process needed to fulfill contracting rules /policy.
STAFF RECOMMENDATION / ACTION REQUEST
Staff is seeking input from the Council/Local Contract Review Board on the contracting process, specifically what
would the Local Contract Review Board like to see in order to make their decision for contract award. This
discussion is separate from the policy level discussion on the Public Contracting Rules (PCRs) that is also on
Council's agenda.
KEY FACTS AND INFORMATION SUMMARY
At the May 24, 2011 meeting of the Local Contract Review Board various members expressed interest in a
Workshop discussion on the process surrounding public contracting. A separate discussion regarding Tigard's
Public Contracting Rules /policy is also occurring. Staff and Council will need to be conscientious
about maintaining separate discussions between policy (the Rules) and process (how policy is accomplished.)
Staff will provide information on the current process from project inception through contract execution and the role
of departmental staff, central contracting and the Local Contract Review Board. Staff is seeking Council input into
the contracting process, specifically insight into what the Council, acting as the Local Contract Review Board,
would find beneficial to their decisions on contract awards.
OTHER ALTERNATIVES
Council/Local Contract Review Board could choose not to discuss the contracting process.
COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS
N/A
DATES OF PREVIOUS COUNCIL CONSIDERATION
Discussion at the May 24, 2011 business meeting.
Fiscal Impact
Fiscal Information:
There is no direct fiscal impact with this agenda item.
Attachments
No file(s) attached.
sw
Public Improvement Process Flowchart - / (/e 7 C '.2 /.- ,9O/1'
Local Contract /94zth kk Hen) 6
Departments Central Contracting Review Board
Project Determination
and Rough Scope
Development
Solictation and
Estimation of Liability Contracts
and Budget Capacity Timeline
Developed
Scope Finanlized,
Final Plans Review, Request to Schedule Review
Updated Liability LCRB Item Completed > Tentative
Assessment Agenda
Invitation to Bid
Finalized
Public Notices Published
. Daily Journal of Commerce
The Tigard Times
1
r
Posting on the City's Bid Page
Public Notice
Invitation to Bid Packet
Plans
Pre Bid Meeting
Conducted
Determine if
Addenda Finalize
Required Addenda
Mail Addenda to all
Bid Holders and
Post to website
Prepare Bid
Opening Form
Publically Open
Received Bids
Prepare Bid
Tab Spreadsheet
Ensure 1st -Tier Subs Form &
Bid Bond submitted & 2
verify no disbarrcnents
t
L
Prepare Award
Recommendation With PM Determine
Letter
< Lowest Responsible
Bidder
Prepare Agenda Item
Summary detailing
project and process Review Agenda Item
for LCRB for adhearance to policy and
process and prepare for
approval or denial
Prepare Notice of
Intent to Award
Mail Notice of Intent
to Award to all Bid Holders
and Post to wcbsitc
Present Contract Award
Agenda Item to Approve or Deny
LCRB Contract Award
3
1
St /C mien ire/
/dike 7 6 - ai -aai/
'Personal Services Process Flowchart
Local Contract 4yel1cJit_ c...7Leiri
Departments Central Contracting Review Board id"
Needs Determination -
Rough Scope of
Services Developed -
Solictation and
Estimation of Liability Contracts
and Budget Capacity Timeline
Developed
Scope of Services
Review
Finanlized & Request to Schedule
Tentative
Updated Liability LCRB Item Completed
Agenda
Assessment
Evaluation
Criteria
Selected
Request
for Proposal
Finalized
1
V
Public Notices Published
Daily Journal of Commerce
The Tigard Times
4■10T.■
Posting on the City's Bid Page
Public Notice
Invitation to Bid Packet
Plans
Pre Proposal V
Meeting
Conducted
(Optional)
Determine if
Addenda Finalize
Required Addenda
v
Mail Addenda to all
RFP Holders and
post to website
Y
Open Received
Proposals
1/
Prepare Submitted
Proposal Form
2
g
Project Manager
Prepare Evaluation
identifies proposal Score Sheets
review team
Proposal Review Prepare Agenda Item
Team scores received Summary detailing Review Agenda Item
proposals project and process for adhearance to policy and
for LCRB o.
process and prepare for
approval or denial
v
Prepare Notice of
Intent to Award
If
Mail Notice of Intent
to Award to all those
that submitted proposals
and post to website
Present Contract Award
A gen d a It t Approve or Deny
LCRB Contract Award
3