HomeMy Public PortalAboutResolution 22-34 Purchasing Policy UpdateCity of McCall
RESOLUTION NO. 22-34
A RESOLUTION OF THE CITY OF MCCALL, IDAHO, MODIFYING THE PURCHASING
POLICY MANUAL AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, a Purchasing Policy Manual has been created to capture relevant legal requirements
to describe City purchasing policy and procedures; and
WHEREAS, on January 7, 2021 the McCall City Council reviewed the Purchasing Policy Manual
in a public meeting and adopted the Purchasing Policy Manual with Resolution 21-05; and
WHEREAS, the State of Idaho updated code 67-2320 — Professional Service Contracts with
Design Professionals, Construction Managers, and Professional Land Surveyors, in 2021 after the
City's Purchasing Policy was adopted and created inconsistencies within the Purchasing Policy;
and
WHEREAS, the modifications proposed to the Purchasing Policy dated October 20, 2022 have
been reviewed by City Attorneys and will resolve inconsistencies between the City and State
procurement policies for professional services.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY
OF MCCALL THAT:
Section 1:
This Resolution adopts the modifications to the Purchasing Policy Manual dated
October 20, 2022 attached hereto as Exhibit A, which Manual shall bear the date of
this resolution.
Section 2: This resolution shall be in full force and effect immediately upon its adoption and
approval
PASSED and approved by the City Council of the City of McCall this 20 day of October 2022.
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,��, `.i.iOF'tIv '14�,• CITY OF MCCALL
.' G 9� % Valley County, Idaho
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%9l Off, Robert S Gires, Mayor
ATTEST: i ��'i 1 n. u A- . �•
BessieJo W. ner, City t' erk
Resolution 22-34 Modification to Purchasing Policy
October 6, 2022
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EXHIBIT A
City o/
C
Mcall
IDAHO
PURCHASING
POLICY
Approved by City Council
October 20,2022
via Resolution 22-34
Table of Contents
PURCHASING POLICY
I. Purpose 1
II. Scope 1
III. Enforcement 1
IV. Responsibilities • .2
A. City Manager 2
B. Treasurer . . 2
C. City Clerk 2
D. Department Directors 3
E. Employees 3
F. City Council 4
V. Principles Related to the Administration of this Policy 4
A. Vendor Relations •.4
B. Sources of Supply 4
C. City Business License 4
D. Prohibited Conduct 5
E. Competitive Procurement 7
F. Emergency Purchases 7
G. Grants 7
H. Business Preferences 8
I. Tax Exemption 8
J. Workers Compensation and General Liability Insurance 8
K. Encumbrances 9
L. Fixed Asset Accounting 9
M. Surplus, Scrap, and Recyclable Property 9
N. Suggestions 9
VI. Sanctions 9
VII. Supplemental Materials 10
PURCHASING PROCEDURES
I. Types of Purchases 11
A. Thresholds for Purchases of Goods or Services 11
B. Thresholds for Purchases of Public Works Construction Services 12
C. Thresholds for Purchases of Professional Design Services 13
D. Purchases Exempted from Competitive Procurement 14
II. Requisitions and Purchase Orders 15
A. Requisition .. 15
B. Annual Requisition ..1
C. Purchase Order 16
D. Purchase Order Receiving .. . 16
III. Competitive Procurement For Goods And Services .. 1
A. Informal Solicitation For Bids (ISFB)— Goods and Services .. 16
B. Informal Request for Proposals (IRFP) — Goods and Services 18
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C. Formal Solicitation For Bids (FSFB) — Goods and Services 20
D. Formal Request for Proposals (FRFP) — Goods and Services 24
IV. Competitive Procurement For Public Works Construction 27
A. Informal Solicitation For Bid (ISFB) — Public Works Construction 27
B. Formal Solicitation For Bids (FSFB) — Public Works Construction 29
V. Competitive Procurement For Professional Services Pertaining To Public Works 32
A. Direct Request — Professional Services 32
B. Establishing and Maintaining a Consultant Roster - Professional Services 32
C. Formal Request for Qualifications (FRFQ) — Professional Services 35
D. Selection Criteria (Consultant Roster or evaluating formal SOQs) 36
E. Selection Procedure for evaluating formal SOQ's - not on a Consultant Roster.. 36
F. Negotiations for evaluating formal SOQ's - not on a Consultant Roster 37
G. Contract Extension „ 37
H. Contract Award 37
Table Guidelines For Acquiring Professional Services 38
Purchasing Processes (Flow Charts) 39
Purchase Process Goods & Services (excludes public works construction) 40
Purchase Process Public Works Construction 41
Formal Competitive Procurement Specification Development 42
Contract Approval and Execution 43
Change Order Process 44
Emergency Purchase Process 45
Sole Source Provider 46
Piggyback Process 47
Surplus Personal Property Process 48
Definitions 49
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PURCHASING POLICY
To purchase goods and services in a fair and impartial manner and at a competitive price so that
public dollars are expended in the most cost-effective manner possible, all while complying with
any applicable federal, state, and local laws.
The City promotes a procurement environment based on the understanding that departments are
in the best position to determine what they need to run their operations. Policies, principles,
processes, and procedures are meant to support the need to obtain products and services in a
timely and cost-effective manner while also making sure that appropriate business and legal
principles and processes are followed.
I. PURPOSE
The purpose of the Purchasing Policy is to establish an overall philosophy for purchasing goods
and services on behalf of the City while always being mindful that each purchase represents a
direct cost to the citizens and taxpayers. Ethics, Impartiality, Accountability, Professionalism,
Service, and Transparency are the values and guiding principles of public purchasing. This
policy was developed to encourage competitive solicitations, promote transparency, and guard
against fraud, collusion, and favoritism as well as receive the best goods and services at the most
reasonable price practicable.
Considerable authority has been delegated to departments to make purchasing decisions and this
requires that employees involved at every step of the process take full responsibility for
understanding the City's policies, principles, processes, and procedures regarding purchasing,
payments, and vendor relations.
This policy is intended to provide guidance for those making purchases on behalf of the City
and is not meant to answer all questions. Refer to the Processes and Procedures appendices and
related Standard Operating Procedures for guidance in following this policy.
II. SCOPE
This policy applies to all City of McCall employees, City Council members, commission
members acting on behalf of the City, and anyone acting as an agent of the City when making
purchases with City funds.
III. ENFORCEMENT
The responsibility for the day-to-day compliance with the Policy shall rest with the Treasurer,
under the general direction of the City Manager.
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The HR Manager shall see that each Department Director, Manager, Supervisor and other City
employees involved in the purchasing process receive a copy of the Purchasing Policy.
Certification of receipt of the Purchasing Policy shall be placed in the employee's personnel file.
IV. RESPONSIBILITIES
A purchasing system cannot function properly without the cooperation and assistance of all
involved parties.
A. City Manager
The City Manager's responsibility is to:
1. Recommend approval of Purchasing Policy and Procedures by City Council
2. Oversee the Treasurer
3. Promote an intelligent and harmonious relationship between the Treasurer and other City
Departments relative to administration of this policy
4. Review and approve purchases within authority delegated by City Council
5. Review and approve contracts within authority delegated by City Council
B. Treasurer
The Treasurer's responsibility is to:
1. Act as the City's Procurement Officer and administer the purchasing policy
2. Review requisition and purchase order requests for accuracy and reasonableness to
determine sufficient budget authority exists
3. Institute reports necessary to permit analysis of purchasing performance and provide
documentation required for any audit
4. Advise Departments on the proper purchasing method to utilize to ensure that contracts
are used where required and have been reviewed by the City Attorney
5. Consolidate purchase of like or common items when feasible and beneficial
6. Define how to obtain savings and to coordinate purchasing procedures
C. City Clerk
The City Clerk's responsibility is to:
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1. Receive copies of all SFBs, RFPs, and RFQs and evaluation committee notes in the bid
document Laserfiche file for retention and audit purposes
2. Attend all bid openings and record bid results
3. Act as City's Risk Manager and assist Departments and the City Attorney with negotiation
of contract terms and conditions to minimize the City's liability exposure
4. Receive all vendor/contractor protests and objections that believe they were prejudiced by
the City's procurement or award procedures
5. Manages disposal of Surplus, Scrap, and Recyclable Property processes for all departments
6. Determines when a City business license is required for vendors doing business with the
City
D. Department Directors
The Department Director's responsibility is to:
1. Determine the need for goods or services using prudent judgment, within budgetary
restrictions
2. Analyze prices paid for materials and equipment
3. Direct sales representatives to the Treasurer's office as their first point of contact with the
City
4. Negotiate contract terms and conditions with City Attorney and City Clerk assistance
5. Prepare all bid package and solicitation materials, quote solicitations, specifications, draft
contracts, purchase orders, notices and City Council agenda packets as required to comply
with purchasing procedures
6. Ensure all contracts, agreements, and MOUs are reviewed by the City Attorney prior to
execution
7. Provide copies of all documents to the Treasurer and/or City Clerk in Laserfiche
E. Employees
Employee's (involved with purchases) responsibility is to:
1. Become familiar with and follow the purchasing policy, principles, processes, and
procedures
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2. Stay within authorized spending and contract levels
F. City Council
The Council's responsibility is to:
1. Take action on contracts upon the recommendation of the Department Director as
supplemented by the Treasurer and/or City Manager, if required
V. PRINCIPLES RELATED TO THE ADMINISTRATION OF THIS
POLICY
A. Vendor Relations
1. The Treasurer will promote a program of fairness and professionalism with all vendors.
2. The Treasurer and/or Department Director will receive sales representatives as promptly
and courteously as time permits
3. During evaluation and negotiation periods, prices and other specific information received
from vendors will not be divulged to other vendors
4. The Department Director will advise unsuccessful Bidders as to the disposition of their
bids
5. Bidding participants may protest to the City that they were prejudiced by the City's
procurement or award procedures.
6. City employees will interact with employees from other companies in a professional
manner that will reflect well on the City of McCall and the State of Idaho.
B. Sources of Supply
The Treasurer shall, with the input of the appropriate department, select sources of supply in
accordance with Idaho Code §§ 67-2801 through 67-2809 and any other applicable state and
federal code. This shall be accomplished with a view toward creating good vendor relations and
promoting the best interests of the City. The City recognizes that frankness and fair dealings are
the cornerstones of strong and lasting relationships with suppliers. In no event will favoritism
be shown to vendors.
C. City Business License
City Code Title 4 requires that all vendors who maintain a physical office or place of business
within the City must have a City of McCall business license. However, vendors whose primary
office or place of business is located out-of-town will not be required to obtain a City of McCall
business license.
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All personal and professional service vendors doing business with the City must have an active
State of Idaho license from the appropriate licensing agency applicable to their profession.
D. Prohibited Conduct
There are several statutes that regulate the conduct of those who make or approve purchases on
behalf of the City. Every employee or City official who makes or approves purchases on behalf
of the City is required to familiarize him/herself and act in accordance with the following
statutes:
1. Bribery and Corrupt Influence Act: Idaho Code Title 18, Chapter 13
2. Misuse of Public Moneys: Idaho Code Title 18, Chapter 57
3. Willful Avoidance of Procurement Statutes: Idaho Code § 59-1026
4. Ethics in Government: Idaho Code Title 74, Chapter 4
5. Prohibitions against Contracts with Officers: Idaho Code Title 74, Chapter 5
6. Purchasing by Political Subdivision: Idaho Code Title 67, Chapter 28.
All employees and City officials must refrain from unethical or illegal purchasing practices. It
is important to protect decision impartiality, including appearances affecting impartiality, in
order to earn and maintain the public, and vendor community's, confidence in the integrity of
government.
Below are some of the acts prohibited by the above -listed statutes. However, the following list
is not a complete list of all conduct prohibited by such statutes. It is the responsibility of each
employee and City official to read and understand the statutes listed above. Any questions as to
whether conduct is prohibited and/or unethical should be directed to the Treasurer and/or the
City Attorney.
1. Gifts & Gratuities (I.C. §§ 18-1356, 18-1359)
City employees, city council members, board or commission members, and anyone acting
as an agent of the city are expressly prohibited from soliciting or accepting any rebate,
merchandise, money, entertainment, gift, travel, meals, or gratuity, of any amount, no
matter how trivial it may seem, from any person, company, firm, or corporation to which
any purchase order or contract is, or might be, awarded. Therefore, while Idaho Code §§
18-1356(5) and 18- 1359(1)(b), do not prohibit trivial gifts or benefits valued less than
$50.00 if they are incidental to personal, professional or business contacts and do not affect
official impartiality, City practice does not allow these if you are in a position to steer
business in the direction of the gift giver.
2. Accepting a Bribe (I.C. § 18-1352)
Accepting a bribe is a felony. Do not accept or solicit money, gifts, merchandise, or other
benefits from a vendor or contractor in exchange for a favorable decision, opinion, or
recommendation to said vendor or contractor. It is not a defense that the person whom the
vendor or contractor attempted to influence did not have the authority to act in the desired
way.
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3. Bid Splitting & Avoidance of Competitive Bidding and Procurement (I.C. ,5 59-1026)
Intentionally splitting a procurement to avoid competitive procurement dollar thresholds is
illegal. Likewise, it is illegal to willfully or knowingly avoid compliance with procurement
or competitive bidding statutes; for example, falsifying an emergency situation to avoid the
competitive bid process, discouraging a qualified vendor or bidder from submitting a bid,
or failing to present the lowest responsive bid to the City Council due to your personal bias
for another bidder or against the lowest responsible bidder, would violate this section.
Violation can result in civil penalties of up to $5,000 per violation and the reasonable costs
incurred by the entity bringing the enforcement action.
Perceptions, correctly or incorrectly, play a huge part in the determination of bid splitting.
The question at hand is: "Would a reasonable person, in the same circumstances, have been
able to foresee the additional expenses needed for the project or task, which were purchased
at a later date?" If "yes", then the probability is high that the additional procurement is a
case of intentional bid splitting.
4. Conflict of Interest (I.C. Title 74, Chapters 4 and 5)
Conflict of Interest: Any official action or any decision or recommendation by a person
acting in a capacity as a public official, the effect of which would be to the private
pecuniary benefit of the person, an immediate family member, a member of the person's
household, or a business with which the person, an immediate family member, or a member
of the person's household is associated.
The City will not tolerate circumstances that produce, or reasonably appear to produce,
conflicts between the personal interest of an employee and the interests of the City.
Therefore, no employee, officer, immediate family member, board or commission member,
council member, or agent may participate in the selection, award, or administration of a
contract if a conflict of interest, real or apparent, would be involved.
Any conflict of interest, real or apparent, must be reported to the Treasurer or designee and,
if an employee, to the employee's immediate supervisor. After careful review of the
situation, the person may be disqualified from participating in selection, award, and/or
administration of the contract involved.
5. Organizational Conflicts of Interest:
An organizational conflict of interest may exist when:
a. The activities, relationships, or other contracts of a contractor makes the contractor
unable, or potentially unable, to render impartial assistance or advice to the city;
b. A contractor's objectivity in performing the contract work is, or might be, otherwise
impaired for any reason. An example is a study performed by an engineering firm
where there is possible additional work, such as design or construction work, that
could result from the firm's recommendation on current study work; or
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c. A contractor has an unfair competitive advantage for any reason (such as when the
contractor assists in writing the specifications used in a Solicitation for Bids.).
d. City employees involved in contracting are required to attempt to identify real and
apparent instances of organizational conflict and to discuss such with the Treasurer
and City Manager before contracting with a contractor or vendor. After careful review
of the situation, the contractor or vendor may or may not be disqualified from
providing services.
6. Duty to Report Violations
Those knowing about or suspecting a violation of these standards of conduct must pursue
their concerns with appropriate supervisory and management staff. If the person is
uncertain which person to report to, they shall report to the City Manager.
E. Competitive Procurement
To promote fairness for vendors and wise use of taxpayer dollars, all goods and services will be
obtained through competitive processes, unless exempted (Idaho Code §§ 67-2801 — 67-2809
and § 67-2320). The procurement process to be followed will be determined by total estimated
costs, including shipping, delivery, installation, length of contract, contract extensions,
additional project tasks and phases, etc. Purchases will not be split to avoid competitive
procurement requirements (Idaho Code § 59-1026).
F. Emergency Purchases
Idaho Code § 67-2808 permits the purchase (without competitive procurement processes) of any
supplies or services for which immediate procurement is essential in an emergency. Idaho Code
defines an emergency as the occurrence or imminent threat of a disaster or condition threatening
life or property that requires state emergency assistant to supplement local efforts to save lives
and protect property or to avert or lessen the threat of a disaster. I.C. 46-1002(3). Idaho Code
also identifies that procurements may be permissible under emergency provisions to respond to
a great public calamity (flood, fire, epidemic, other disaster); when necessary for national or
local defense; or when necessary to safeguard life, health, or property. Before any procurement
may occur, the City Council, or City Manager (depending on authority cited for declaring the
emergency), must declare the emergency by resolution.
G. Grants
When purchases are fully or partially funded by state or federal dollars, it is the City's intention
to follow all applicable federal and state guidelines where required. The appropriate process is
to follow the most stringent applicable procedures. This may result in a combination of federal,
state and local requirements. It is the responsibility of the department receiving the grant to
become familiar with and follow any procurement requirements mandated by the grant while
also following all city and state requirements. This policy does not attempt to set forth federal
procurement policies or procedures.
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H. Business Preferences
1. The City believes in open competition and does not have any preferences, quotas, or goals
for purchasing from small, minority, or disadvantaged businesses, except purchases that
are made with certain federal funds. However, departments are encouraged to notify these
businesses of available bid/quote opportunities and to purchase goods or services from
them when possible.
2. Idaho Code allows, and sometimes requires, preferences for an Idaho vendor over an out-
of-state vendor (see e.g. Idaho Code § 67-2801). Such preferences are dependent on various
factors and applicability needs to be determined with each purchase.
I. Tax Exemption
The City is an Idaho Municipal Corporation and therefore is exempt from all federal excise
taxes, regardless of seller's location, and exempt from all Idaho state sales tax for items
purchased in, or shipped to, Idaho.
Employees need to inform vendors that the City is tax exempt. If the vendor requests
verification, please contact the Treasurer for an exemption certificate.
If employee is physically obtaining goods or services in another state, the purchase is subject to
that state's and locality's tax policies.
J. Workers Compensation and General Liability Insurances
Vendors or contractors providing a service to the City that is performed on City property or on
someone else's property at the direction of the City must provide the City with proof of Worker's
Compensation and General Liability insurances. The Workers Compensation policy must comply
to all of Idaho's Workers Compensation statutes. No waiver for coverage is permitted and no other
type of insurance can be used as a substitute for Worker's Compensation Insurance. The General
Liability policy must include a minimum liability limit equal to the tort claim limits set out in
Idaho Code Title 6, Chapter 9.
There are certain occupational exemptions from coverage allowed and listed under Idaho Code,
Section 72-212. If there is a qualified exemption, a written statement indicating the occupational
category must be submitted to the department soliciting the work prior to work beginning. NOTE:
Even though certain vendors are exempted from carrying workers compensation coverage, the
requirement for workers compensation coverage does not go away: It shifts to the City.
If the City engages a contractor or vendor that does not have Worker's Compensation insurance
on file with the Idaho Industrial Commission at the time work is performed, the City may be liable
for that vendor's worker's injuries when that worker is performing services on City property (or
other's' property) at the City's request. The City may be responsible for any claims. The claims
would count against the City's experience modification factor which could have the potential to
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greatly increase the City's workers compensation insurance premium. These costs may be
chargeable to the department that used the uninsured vendor.
K. Encumbrances
Funds are to be encumbered by a Purchase Order, using the appropriate expense account, as soon
as an expense is known or anticipated. Application of this principle helps to ensure funds are
available for obligations and reduces the chances of exceeding available budget. A purchase order
is not intended to replace the need for a contract.
L. Fixed Asset Accounting
Items purchased with a minimum value of one thousand five hundred dollars ($1,500) and a useful
life of at least three (3) years must be recorded and inventoried. The minimum value required for
items to be inventoried will be adjusted to the current year deductible on the City's liability policy
with ICRMP. Items with a value of ten thousand dollars ($10,000) or higher will be capitalized
and depreciated.
M. Surplus, Scrap, and Recyclable Property
City Clerk is charged with disposal of surplus property and will do so in a manner to obtain the
maximum benefit for the City. All surplus property, except scrap metal and recyclable materials,
must be declared surplus by the City Council before disposal. The City Clerk then shall have
authority to sell by auction all such surplus property or to transfer property to another city
department. No City asset, supplies, materials, or equipment shall be sold or otherwise disposed
of, without prior approval of the City Clerk.
Sales of surplus property shall be formally advertised and conducted by public auction. City
employees are not prohibited from bidding on surplus city property as long as they were not
involved in the surplus decision process.
Scrap metal and recyclable materials shall be disposed of by the City Clerk, or as delegated to
departments, in such a manner and at such times to obtain the highest possible price from interested
scrap dealers or recyclers. Those with delegated authority to dispose of scrap metal and recycle
materials will submit an annual scrap/recycle report to the City Clerk.
N. Suggestions
Suggestions that will help reduce costs, promote efficiency, or improve supplier service are both
welcome and requested. Cost reduction ideas should reduce costs without a corresponding
reduction in quality of service.
VI. SANCTIONS
Employees having been investigated and found to have violated the purchasing policy will be
disciplined in accordance with the City of McCall Personnel Policies.
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VII. SUPPLEMENTAL MATERIALS
Additional City policies as adopted from time to time may apply to certain purchasing actions such
as a Credit Card Policy or a Fuel Card Use Policy.
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PURCHASING PROCEDURES
This portion of the manual briefly outlines the City's purchasing procedures and the forms
designed to complement this system. The City acquires various types of property and services:
goods and services; public works construction; and professional services.
"Cost" is determined based on the WHOLE project, purchase, or contract and may include
shipping, delivery, maintenance, consultant travel, multiple years, anticipated additional tasks &
phases, etc. Do not split amounts to stay under competitive procurement thresholds as this is
considered bid splitting and is prohibited by Idaho Code § 59- 1026.
When possible, the City will endeavor to use businesses with a significant Idaho economic
presence.
I. TYPES OF PURCHASES
This section identifies monetary thresholds which trigger different procurement procedures, but
only includes a summary description of the procedures required at the higher thresholds. More
detailed explanations of procurement procedures for various types of purchases at the higher
monetary thresholds are set forth in Sections III, IV, and V below.
A. Thresholds for Purchases of Goods or Services (except public works construction) -1
<$50,000 May be conducted with any vendor believed to provide the best value. Obtaining
competitive quotes is not required but is encouraged. When applicable, these
purchases should be spread out over the various local vendors who are able to
provide the same item(s) or service(s) at comparable prices. City Manager signs
any contracts greater than $10,000 but less than $50,000.
>$50,000 but not to exceed $100,000:
I.C. § 67-2806(1): Must provide written solicitation to a minimum of three vendors
able to provide the good or service. Responses must be in written form: mailed,
faxed, emailed, or delivered. Specifications and responses must be attached to the
electronic requisition (in Caselle). Records must be maintained in Laserfiche for a
minimum of six months. City Council approval required. Mayor signs contract and
any necessary documents.
Over $100,000:
I.C. § 67-2806(2): Must formally solicit bids (see Invitation for Bid or Request for
Proposals) through an open competitive bidding process. Notice, that requests bids,
will be published at least twice in the City' s official newspaper, with the second
publication not less than seven days before the opening date. Detailed specifications
must be available to potential bidders upon request, and bidders have up to 3 days
1 See Purchase Process Goods & Services flowchart on p. 10 supra.
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prior to bid opening to object to specifications or bidding procedures. Requirement
of a bid bond is at the discretion of the City. Bonding requirements, when exercised,
are 5% of the bid for the bid bond and 100% of contract price for the performance
bond and payment bond. Bids received must be opened in a public at a designated
time and place. An independent cost estimate must be performed before receiving
bids or proposals. The process for selecting that winning bidder is set forth in more
detail in I.C. § 67 -2806(2)(e) -(j). City Council decides winning bid and may also
choose to reject all submitted bids and request the process be re -bid. Mayor signs
any contract. Unsuccessful bidders may object to the award of the contract for
seven (7) days after it is awarded, which may require additional review by City
Council.
B. Thresholds for Purchases of Public Works Construction Services.2
Public Works construction is generally all construction and maintenance on city property
buildings, roads, and facilities with non -city personnel. Plans and specifications for
projects>$10,000 must be prepared by, and construction reviewed by, a licensed
professional engineer (Idaho Code § 54-1218).
<$50,000: Contract may be awarded to any contractor believed to provide the best value for
the City; however, contractor must have Idaho trade license to perform services
(e.g. electrical, plumbing, HVAC, general contractor, etc.). Obtaining competitive
quotes is not required but is encouraged. Contracts above $10,000 must be signed
by the City Manager.
>$50,000 but not to exceed $200,000:
Idaho Code § 67-2805(1): A written solicitation for bids for public works
construction must be supplied to a minimum of three (3) Idaho Public Works
licensed contractors. The solicitation must include sufficient detail that an
experienced public works contractor could understand the construction project
requested. The solicitation shall also identify the proper method for submitting bids
and time for responding, provided that potential bidders shall have at least three
days to submit a bid or to object to the specifications or bid procedures. Bid security
of at least 5% is required. Response is required to be in written form: by mail, fax,
email, or otherwise delivered. The specifications and bids must be attached to the
requisition. Bidding records must be maintained for a minimum of six months.
After reviewing bids, the City Council makes award to the lowest responsive bidder
and Mayor signs contract. Payment and performance bonds at 100% of contract
value are required.
Over $200,000:
Idaho Code § 67-2805(2): Formal bid required (see Invitation for Bid). Code
allows two categories of competitive processes: Category A permits any Idaho -
licensed public works contractor to submit a bid. Category B involves pre -
qualifying contractors and only those contractors may submit a bid for a project
2 See Purchase Process Public Works Construction flowchart on p. 11 supra.
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(This is not detailed in this manual. Contact the Treasurer and City Attorney for
additional information on Category B bidding). For both categories, notice will be
published at least twice in the local newspaper, with the second publication not less
than seven days before the opening date.
Detailed specifications must be available, and Bidders have up to 3 days prior to
bid opening to object to specifications. The City may require bidders to provide a
bid security deposit of at least 5% of its bid amount for either Category A or B bids.
Performance and payment bonds at 100% of the contract value are also required.
An independent cost estimate must be performed before receiving bids. City
Council makes decision on which bidder to award the contract to. Mayor signs
contract.
C. Thresholds for Purchases of Professional Design Services3
Idaho Code § 67-2320 governs acquisition of professional engineering, architectural, landscape
architecture, professional land surveying, and construction management services. All
professional services obtained by the City shall be based on demonstrated competence and
qualifications of the firm(s) or person(s).
The City may establish a list of preapproved professional service providers known as the
"Consultant Roster" by publishing a public notice requesting Statements of Qualification (SOQ).
Information regarding the Consultant Roster can be found in Section V. Paragraph B. Establishing
and maintaining a consultant roster could eliminate the need to publish a Request for Proposals
(RFQ) each time these types of professional services are needed.
Anticipated fees for determining which selection process to use encompasses all anticipated
stages of a project: preliminary study, conceptual design, final design, construction bidding,
construction oversight, project closeout and any anticipated additional phases or tasks. When the
anticipated fees are:
$50,000 or less:
Selection based on the evaluation of a single firm or person's qualifications is
permitted to allow timely response to small projects. The selection may be made
from the Consultant Roster and using a service provider from the Consultant Roster
is encouraged, but not mandatory.
> $50,000:
Selection is obtained from the Quality Based Selected Consultant Roster OR
through the evaluation of a minimum of three firms' qualifications through the
Formal Request for Qualifications (FRFQ) process.
NOTE: Professionals selected to perform services pertaining to tasks or phases of a larger
project, selected outside of a competitive process for the overall project, may be
excluded from participation in later phases of the project if the earlier services
3 See Guidelines for Acquiring Professional Services table on p. 13 supra.
131 Page
allowed access to information that would give the firm an unfair competitive
advantage over other firms or could be perceived as avoidance of competitive
procurement statutes. See Organizational Conflict of Interest (page 7) and Bid
Splitting & Avoidance of Competitive Bidding and Procurement Statutes (page 7).
D. Purchases Exempted from Competitive Procurement
1. Procurements During Emergency
An "Emergency" means the occurrence or imminent threat of a disaster or condition
threatening life or property that requires state emergency assistant to supplement local
efforts to save lives and protect property or to avert or lessen the threat of a disaster. I.C. §
46-1002(3). See also I.C. § 67-2808(1)(a)(i)-(iii) which identifies circumstances that may
constitute an "emergency"
If an emergency exists, the City Council may declare that an emergency exists pursuant to
I.C. § 67-2808(1)(a), which declaration would authorize emergency expenditure of public
money.
During the time where an emergency order is effective, "any sum required in the emergency
may be expended without compliance with formal bidding procedures." I.C. § 67-
2808(1)(b). Therefore, certain emergency related procurements may be made without
formal bidding. However, a Department Director shall not make an emergency
procurement, and forego the usual bidding process, without first obtaining the consent of
the City Manager for such procurement.
2. Sole Sources
"Sole Source" refers to situations where there is only one vendor reasonably able to provide
a good or service. City Council may make a sole source declaration I.C. § 67-2808(2). The
particular situations which may warrant a sole source declaration are set forth in I.C. § 67-
2808(2)(a)(i)-(viii). Once a sole source declaration is made, it shall be published in the
official newspaper for the City at least fourteen (14) days prior to the award of the contract.
3. Joint Purchasing and Cooperative Contracts.
Idaho Code § 67-2807. With the approval of the City Council, the City may participate in
joint bidding with other public agencies through cooperative purchasing agreements, or
through participating in cooperative purchasing programs established by any association
that offers its goods or services as a result of competitive solicitation processes. In the
event the City enters a cooperative purchasing agreement for a single procurement, the
procurement must comply with this policy and state code applicable to the type and amount
of procurement to be made. However, procurements through a cooperative purchasing
program shall be deemed to made in compliance with Idaho law and this policy manual.
4. Piggybacking6
See flow chart on p. 17 supra.
5 See flow chart on p. 18 supra.
6 See flow chart on p. 19 supra.
141 Page
Idaho Code § 67-2803(1) & (10). If the contract allows it and the vendor is agreeable to do
so, the City may duplicate a purchase from an existing contract that was formally bid by the
State of Idaho, another political subdivision of Idaho, or the federal government. The most
common contracts piggybacked by the City are State of Idaho contracts, Idaho Cities, and
Idaho Counties. Piggyback procurements >_$50,000 require City Attorney review and
Council approval.
5. Phased or Associated Project (pertains to Professional Services only)
Idaho Code § 67-2320(4). If a project is related to or is another phase of a previous project
that was awarded by Council as a result of a competitive selection process, the City may
enter into a new professional services contract or amend the previous contract for the
additional services. If the additional amount is over $50,000, and not selecting from the
Consultant Roster, professional services contracts require City Attorney review and City
Council approval.
6. Other Exempted Procurements
Other procurements exempted from the competitive bidding processes of the Idaho Code
are listed in Idaho Code § 67-2803.
I. REQUISITIONS & PURCHASE ORDERS
A. Requisition
A Requisition (REQ) shall be used to request a purchase of supplies or services and to ensure
funds are available and set aside (encumbered) for the total cost of the purchase.
The Requisition SHALL not replace the requirement for a proposal or contract when either are
required.
Prior to requesting that a vendor provide goods or services, and prior to entering a REQ, ensure
the intended vendor is already a vendor within Caselle and that the vendor has all required licenses
and insurances.
To create a REQ, open the City's Caselle Connect Online platform and complete a "Requisition
Entry". Use the appropriate expense account. When the form is completed click "Release" which
will start the approval workflow process. The department head is responsible to ensure the correct
vendor, description, expense account, and amount are on the REQ and that that vendor possesses
any required licenses and insurances. Once approved, the REQ will be forwarded to the Accounts
Payable who will create the Purchase Order (PO).
The following table represents the requisition approval process steps and approval limits:
151Page
Department Director or Designee
$1,000 or less
Treasurer or Designee
< $5,000
City Manager or Designee
< $50,000
B. Annual Requisition
In instances where monthly payments are made to a vendor during the year, create one REQ
listing the months and payment amount at the start of the fiscal year or contract term.
In instances where payments of varying amounts will be made to a vendor during the year (such
as office supplies or copier maintenance agreements), create one REQ with a lump sum amount
as the quantity and a unit price of $1.00. This will be turned into a Blanket PO for use to pay
invoices as needed throughout the year. A blanket PO is ideal when you know you will need to
purchase items from a particular vendor throughout the year, but you do not know what will be
purchased each time nor do you know what the costs will be. In these cases, it is beneficial to set
up a fairly generic PO with a lump sum amount that will be "used up" during the year. When
remaining balance gets low, more funds may be added to it via change order.
C. Purchase Order
All Purchase Orders (PO) will be processed by the Finance Department. No PO will be issued
without a properly processed REQ. For requisitions under $5,000, the Treasurer may convert the
REQ to a PO. The department head is responsible to ensure the correct vendor, description,
expense account, and amount are on the REQ and that that vendor possesses any required licenses
and insurances.
D. Purchase Order Receiving
When items listed on the PO are received and verified, the originator will code and approve the
invoice. Write the PO number on the invoice and send it to Accounts Payable for payment
processing. When an item is backordered or is listed as shipped but not received write "Do Not
Close PO" on the invoice. When the backordered or shorted item is received, code and approve
the invoice. Write the PO number on the invoice and send it to Accounts Payable for payment
processing. Do not pay for goods or services before they have been delivered.
II. COMPETITIVE PROCUREMENT FOR GOODS AND SERVICES:
BID PREPARATION AND SELECTION PROCESS
A. Informal Solicitation For Bids (ISFB)— Goods and Services (not public works
construction) ?$50,000 but not to exceed $100,000 (Idaho Code §§ 67- 2806(1))7
7 See Purchase Process Goods & Services flowchart at p. 10 supra.
16' Page
1. When to use an ISFB for Goods and Services Procurements
An ISFB shall be used to obtain bids for a procurement of goods and services >$50,000 but
not exceeding $100,000.
2. Preparing & Sending Solicitation for Bids
An ISFB must:
a. Be written;
b. Be provided to at least three (3) vendors by electronic or physical delivery (either
method of delivery is appropriate);
c. Describe the personal property or service to be purchased or leased in sufficient detail
that a vendor who deals in such goods or services would understand what the City needs
to procure;
d. Identify the proper method for vendors to submit a bid. Namely, it must identify
whether the City requires electronic or physical delivery, and which City official(s) the
bid should be delivered to; and
e. Identify the date a bid must be received by the City to for it to be considered.
Vendors must be provided adequate time to respond, but not less than three (3) business days.
3. Objections to Solicitation
a. Potential bidders can object to the bid specifications in the ISFB or the bid procedure.
However, such objections must be made received by the City Clerk at least one (1) day
before the deadline for vendors to submit bids.
i. If an objection is received, and the City shall promptly notify all vendors who
received the ISFB of the objection.
ii. The City official that prepared the ISFB may choose to deny the objection and
proceed without modification to the solicitation or bid procedure.
iii. Alternatively, if the objection demonstrates an error with the solicitation or bid
procedure, the City official who prepared the ISFB may modify the bid
procedure (e.g. change the deadline for submitting a bid) or solicitation. All
vendors who received the original solicitation must be given notice of any
modification.
b. Bids must be in writing and be returned to the City Clerk or Department Director that
made the solicitation by the deadline in the ISFB to be considered.
I7IPage
i. If the City receives less than three (3) bids, and it is either impossible or
impractical to acquire three (3) bids, it may proceed with less than three bids.
However, the City must document efforts made by the City to obtain more than
three (3) bids, and while it would be impossible or impractical to obtain three
(3) bids. This documentation must be maintained for at least six (6) months after
the procurement is made. If this process concludes with no procurement, this
documentation need not be maintained.
c. Once received, bids are to be compiled by the Department Director or City Clerk and
submitted to the City Council for consideration.
i. Award is to be made by City Council to the lowest responsive bidder for an
ISFB.
ii. If two bids are identical, and are both the lowest bid, the City Council has
discretion to choose either bid.
iii. However, the City Council may also choose to reject all bids. If all bids are
rejected, the procedure established herein may be repeated by preparing and
distributing a new ISFB.
d. If the City Council chooses to make an award, an agreement shall be prepared and
signed by the Mayor, acting on behalf of the City, and by the successful bidder or its
representative.
B. Informal Request for Proposals (IRFP) — Goods and Services >$50,000 but not to exceed
$100,000 (LC. 67-2806A & I.C. 2806(1))8
4. When is an IRFP Appropriate?
a. In lieu of an ISFB under I.C. § 67-2806(1), the RFP process set forth in I.C. § 67-2806A
may be utilized (in conjunction with certain provisions of I.C. § 672806(1)) to procure
goods and services >$50,000 but not to exceed $100,000. Using the IRFB process is
appropriate when:
i. Fixed specifications in a ISFB might preclude the discovery of a cost-effective
solution;
ii. A specific problem the procurement is needed to resolve is amenable to several
solutions; or
iii. Price is not the sole determining factor for the selection.
8 There is no flowchart detailing this procedure, but it should roughly track the process set forth for $50,000 to
$100,000 procedures in the flowchart on p. 10 supra.
18 'Page
b. Before a City official pursues an IRFP in lieu of an ISFB they shall confer with the
City Manager and Treasurer and obtain their approval for using the IRFP process. If
the official desiring to do the procurement is the City Manager, he or she shall confer
with the Treasurer before pursuing an IRFP.
5. Preparing & Sending a Request
An IRFP must:
a. Be written;
b. be sent to at least three (3) vendors capable of supplying the goods or services by
electronic or physical delivery (either method of delivery is appropriate);
c. Include instructions to potential vendors for how the IRFP process will work;
d. Describe the scope of work for the goods or services contemplated;
e. Identify the criteria the City will use for awarding the contract to a particular vendor;
f. Identify prospective contract terms; and
g. Identify the methodology and weight the City will apply to the factors it considers in
awarding a contract.
Vendors who wish to respond to the IRFP must be provided adequate time to respond, but not less
than three (3) business days.
6. Objections to Request
a. Prospective vendors can object to the specifications in the IRFP or the proposal
procedure. However, such objections must be made received by the City Clerk at
least one (1) day before the deadline for vendors to submit proposals.
i. If an objection is received, the City shall promptly notify all vendors who received
the IRFP of the objection.
ii. The City may choose to deny the objection and proceed. If so, the IRFP and
proposal procedure will not be modified.
iii. Alternatively, if the objection demonstrates an error with the solicitation or bid
procedure the City official who prepared the IRFPO may modify the proposal
procedure (e.g. change the deadline for submitting a proposal) or IRFP. All vendors
who received the original IRFP must be given notice of any modification.
7. Receiving/Processing Requests and Awarding Contract
I91Page
a. Proposals must be in writing and be returned to the City Clerk, or authorized City
Official, by the deadline in the IRFP.
If the City receives less than three (3) proposals, and it is either impossible or
impractical to acquire three (3) proposals, it may proceed with less than three
proposals. However, the City must document efforts made by the City to obtain
more than three (3) proposals, and while it would be impossible or impractical to
obtain three (3) proposals. This documentation must be maintained for at least six
(6) months after the procurement is made. If this process concludes with no
procurement, this documentation need not be maintained.
b. Once received, proposals are to be compiled by the Department Director who made
the request or the City clerk and submitted to the City Council for consideration.
Factors the City Council may consider when selecting a vendor's proposal:
1) Whether the solution offered is innovative;
2) The unique product features offered;
3) Price;
4) Vendor experience in the market;
5) Financial stability of a vendor;
6) Differences among vendors in their ability to perform contract requirements
in a timely or efficient manner;
7) Ability to meet the City's needed product specifications;
8) Product quality;
9) Product performance records;
10) Past performance by a vendor;
11) Future product maintenance or service requirements; and
12) Product warranties.
c. After considering the above factors and applying the proper weight to each
consideration as described in the IRFP, the City Council may choose to award a
contract to vendor who best serves the City's needs.
d. However, the City Council may also choose to reject all proposals. If all proposals
are rejected, the procedure established herein may be repeated by preparing a new
IRFP.
e. If the City Council chooses to make an award, an agreement shall be prepared and
signed by the Mayor, acting on behalf of the City, and by the successful bidder or
its representative.
C. Formal Solicitation For Bids (FSFB) — Goods and Services greater than $100,000 (not
public works construction) (Idaho Code § 67-2806(2))9
9 See Purchase Process Goods & Services flowchart at p. 10 supra.
201 Page
1. When to use an FSFB for Goods and Services Procurements
An FSFB shall be used to obtain bids for a procurement of goods and services exceeding
$100,000 through an FSFB, which is a competitive sealed bid process.
2. Preparing & Publishing Solicitation'-
An FSFB shall:
a. Be written;
b. Succinctly describe the personal property and/or service to be procured:
c. Identify the how copies of bid forms, specifications, bidder's instructions, contract
documents, and general and special instructions can be obtained;
d. Set the time and place for opening bids;
e. Identify whether the City is requiring a bid security equal to five percent (5%) of the
bid value to be included with bids; and
f. Identify whether payment and performance bonds will be required by the party who is
awarded the contract.
If the FSFB requires a bid security deposit, the FSFB must identify whether the deposit shall be
in:
a. Cash
b. Cashier's check made payable to the City;
c. Certified check made payable to the City; or
d. A Bidder's bond executed by a qualified surety company, made payable to the City.
Notice of an FSFB shall be published twice in the official newspaper of the City. The first
publication shall be at least two weeks before the date for opening bids. The second publication
shall occur the following week and at least seven (7) days prior to the date set for opening bids.
Notice will also be posted to the City's website. Notices may be published by the Department
Director who shall notify the City Clerk when publishing notices.
3. Objections to Solicitation
I° See Formal Competitive Procurement Specification Development table on p. 12 supra for additional guidance.
21 'Page
a. Prospective vendors/bidders may object to the bid specifications or bidding procedures.
If an objection is made, it must be received by the City Clerk at least three (3) business
days before the date and time bids are scheduled to be opened.
i. If an objection is received, the appropriate Department Director or the City Clerk
shall promptly notify all vendors who submitted bids of the objection.
ii. The City may choose to deny the objection and proceed with the opening of bids.
If this occurs, City shall notify the objector and bidders of this decision and
proceed with the opening of bids.
iii. Alternatively, the City may elect to modify the bid procedure (e.g. change the
deadline for submitting a bid) or the FSFB. All vendors who submitted bids must
be given notice of any modification.
4. Receiving & Processing Bids
a. For a bid to be considered it must be sealed and submitted to the City Clerk or
authorized City Official before the deadline set for opening bids in the solicitation.
b. Bids cannot be withdrawn after the time set for opening bids has passed.
c. After sealed bids are received, and the time for opening bids has passed, the bids shall
be opened at the public place set in the FSFB for the opening of bids.
d. Bids received after the deadline for submitting the same shall not be accepted and shall
be returned to the bidder unopened.
e. After the opening of bids, the bids shall be compiled by the appropriate Department
Director or the City Clerk and submitted to the City Council for review and potential
award of the contract.
i. A contract shall generally be awarded to the lowest responsive bidder who
complied with the bidding procedures and met specifications for the goods and
services to be procured.
ii. If two or more bids received are for the same total amount or unit price, quality
and service being equal, and if a delay for re -advertisement would not be in the
public interest, the City Council may accept either bid.
iii. If the contract is awarded to any bidder other than the apparent low bidder, the
City Council must declare its reason or reasons on the record for rejecting the
apparent low bid and communicate such reason(s) to all who submitted bids.
iv. If, in the opinion of the City Council, none of the bids are satisfactory, the
council may reject all bids and either re -advertise for new bids or, by resolution,
find (if factually true) that the goods or services are available more economically
221 Page
on the open market, and thereafter purchase the goods or services on the open
market.
After selecting the successful bidder, the City shall send written notice to all who submitted bids
of its selection.
5. Objections to City Council's Decision
a. Unsuccessful bidders may object to the City's award of the bid for up to seven (7) days
after receiving notice of the City's decision. The objection must identify why the
unsuccessful bidder believes the City's decision was in error.
After receiving a timely objection, the City shall:
i. Stay performance of any procurement until after the objection is addressed;
ii. Set the matter for review by the City Council;
iii. On review by the City Council, it must choose to either affirm its prior award,
modify the award, or choose to re -bid. The City Council must also set forth the
reason(s) for its decision.
6. Procedures Following Selection of Successful Bid
a. If the City Council chooses to make an award, an agreement shall be prepared and
signed by the Mayor, acting on behalf of the City, and by the successful bidder or its
representative.
b. Unsuccessful bidders shall be entitled to return of their bid security.
c. A successful bidder shall forfeit his or her bid security upon failure or refusal to execute
a contract and/or to provide payment and performance bonds within the required time.
The city council may, on failure or refusal of the successful bidder to execute the
contract and/or provide payment and performance bonds, award it to the next lowest
responsive bidder, in which event, the lowest bidder's security shall be applied by the
city first to the difference between the low bid and the second lowest bid, and the
surplus, if any, shall be returned to the lowest bidder if cash or check is used, or to the
surety on the bidder's bond if a bond is used, less reasonable administrative costs not
to exceed twenty-five percent (25%) of the amount of the bidder's security.
d. Payment and performance bonds may be required to be furnished before entering a
contract with a successful bidder. Bonds shall be in a form satisfactory to the
e. city attorney. Bond amount will be satisfactory to the purchasing officer and in
compliance with the contract specifications.
231 Page
f. The city council may waive any minor irregularities in the bids, based upon a
determination that the same have no material impact upon the bidding process or other
bids submitted.
If no bids are received in response to the notice inviting bids, the City Council may proceed to
purchase the supplies or services without further competitive bidding if certain criteria are met and
findings are adopted by the Council.
D. Formal Request for Proposals (FRFP) — Goods and Services greater than $100,000 (Idaho
Code § 67-2806A)11
1. When is an FRFP Appropriate?
a. In lieu of making an FSFB under I.C. § 67-2806(2), the RFP process set forth in I.C. §
67-2806A may be utilized (in conjunction with certain provisions of I.C. § 672806(2))
to procure goods and services greater than $100,000. Using the FRFP process is
appropriate when:
i. Fixed specifications in a solicitation might preclude the discovery of a cost-
effective solution;
ii. A specific problem the procurement is needed to resolve is amenable to several
solutions; or
iii. Price is not the sole determining factor for the selection.
b. Before a City Official pursues an FRFP in lieu of an FSFB they shall confer with the
City Manager and Treasurer and obtain their approval for using the FRFP process. If
the official desiring to do the procurement is the City Manager, he or she shall confer
with the Treasurer before pursuing an FRFP.
2. Preparing & Publishing Requests
An FRFP shall:
a. Be written;
b. Include instructions to potential vendors for how the RFP process will work;
c. Identify when the City will open submitted proposals;
d. Describe the scope of work for the goods or services contemplated;
e. Identify the criteria the City will use for awarding the contract to a particular vendor;
11 There is not a flowchart detailing this procedure, but it should roughly track the process set forth for the greater
than $100,000 procedures in the flowchart on p. 10 supra.
12 See Formal Competitive Procurement Specification Development table on p. 12 supra for additional guidance.
24 [Page
f. Identify whether the City is requiring a bid security equal to five percent (5%) of the
proposal value to be included with the proposal;
g. Identify prospective contract terms; and
h. The methodology and weight the city will apply to the factors it considers in awarding
a contract.
The FRFP shall be published twice in the official newspaper of the City. The first publication shall
be at least two weeks before the date for opening proposals. The second publication shall occur
the following week and at least seven (7) days prior to the date set for opening proposals. Notice
will also be posted to the City's website. Notices may be published by the Department Director
who shall notify the City Clerk when publishing notices.
3. Objections to Request
a. Prospective vendors may object to the proposal specifications or proposal procedures.
If an objection is made, it must be received by the City Clerk at least three (3) business
days before the date and time proposals are scheduled to be opened.
i. If an objection is received, the Department Director or the City Clerk shall promptly
notify all vendors who submitted proposals of the objection.
ii. The City may choose to deny the objection and proceed with the opening of
proposals. If this occurs, City shall notify the objector and other vendors who
submitted proposals of this decision and proceed with the opening of proposals.
iii. Alternatively, the City may elect to modify the proposal procedure (e.g. change the
deadline for submitting a proposal) or the FRFP. All vendors who submitted
proposals must be given notice of any modification.
4. Receiving & Processing Proposals
a. For a proposal to be considered it must be sealed and submitted to the City Clerk or
authorized City Official before the deadline set for opening proposals in the request.
b. Proposals cannot be withdrawn after the time set for opening proposals has passed.
c. After sealed proposals are received, and the time for opening proposals has passed, the
proposals shall be opened at the public place set in the FRFP for the opening of bids.
d. Proposals received after the deadline for submitting the same shall not be accepted and
shall be returned to the bidder unopened.
e. After the opening of proposals, the proposals shall be compiled Department Director
or the City Clerk and submitted to the City Council for review and potential award of
the contract.
251 Page
g.
When considering the various proposals, the City Council shall make its decision based
upon the following factors:
i. Whether the solution offered is innovative;
ii. The unique product features offered;
iii. Price;
iv. Vendor experience in the market;
v. Financial stability of a vendor;
vi. Differences among vendors in their ability to perform contract requirements in a
timely or efficient manner;
vii. Ability to meet the City's needed product specifications;
viii. Product quality;
ix. Product performance records;
x. Past performance by a vendor;
xi. Future product maintenance or service requirements; and
xii. Product warranties
f. After considering the above factors and applying the proper weight to each
consideration as described in the FRFP, the City Council may choose to award a
contract to vendor who best serves the City's needs.
If, in the opinion of the city council, none of the proposals are satisfactory, the council
may reject all proposals and either re -advertise for new proposals or, by resolution, find
(if factually true) that the goods or services are available more economically on the
open market, and thereafter purchase the goods or services on the open market.
5. Objections to City Council's Decision
a. Unsuccessful vendors may object to the City's award of the proposal award for up to
seven (7) days after receiving notice of the City's decision. The objection must identify
why the unsuccessful vendor believes the City's decision was in error.
After receiving a timely objection, the City shall:
i. Stay performance of any procurement until after the objection is addressed;
ii. Set the matter for review by the City Council;
iii. On review by the City Council, it must choose to either affirm its prior award,
modify the award, or choose to re -initiate the FRFP process. The City Council must
also set forth the reason(s) for its decision.
6. Procedures Following Selection of Successful Proposal
a. If the City Council chooses to make an award, an agreement shall be prepared and
signed by the Mayor, acting on behalf of the City, and by the successful vendor or its
representative.
261 Page
b. After selecting the successful proposal, the City shall send written notice to all who
submitted proposals of its selection.
c. An unsuccessful vendor shall be entitled to return of their bid security.
d. A successful vendor shall forfeit his or her bid security upon failure or refusal to
execute a contract and/or to provide payment and performance bonds within the
required time. The City Council may, on failure or refusal of the successful vendor to
execute the contract and/or provide payment and performance bonds, award it to the
next vendor who's proposal best met the City's needs, in which event, the vendor's
security (who refused failed to execute a contract) shall be applied by the City first to
the difference between the contract offered to the first vendor and the contract being
offered to the second vendor, and the surplus, if any, shall be returned to the vendor
who failed/refused to execute a contract if cash or check is used, or to the surety on the
vendor's bond if a bond is used, less reasonable administrative costs not to exceed
twenty-five percent (25%) of the amount of the vendor's security.
e. Payment and performance bonds may be required to be furnished before entering a
contract with a successful bidder. Bonds shall be in a form satisfactory to the
f. City Attorney. Bond amount will be satisfactory to the purchasing officer and in
compliance with the contract specifications.
III. COMPETITIVE PROCUREMENT FOR PUBLIC WORKS
CONSTRUCTION (Idaho Code § 67-2805): BID PREPARATION AND
SELECTION PROCESS
A. Informal Solicitation For Bid (ISFB) — Public Works Construction >—$50,000 but not to
exceed $200,000 (Idaho Code § 67-2805(1))13
1. When to use an ISFB for Public Works Construction
An ISFB shall be used obtain bids for a public works construction project procurement >_$50,000
but not exceeding $100,000 through an ISFB.
2. Preparing & Sending Solicitation for Bids
ISFB must:
a. Be written;
b. Be provided to at least three (3) owner -designated licensed public works contractors by
electronic or physical delivery (either method of delivery is appropriate);
13 See Purchase Process Public Works Construction flowchart at p. 11 supra.
271 Page
c. Describe the needed construction work in sufficient detail to allow an experienced
public works contractor to understand what construction project the City needs;
d. Identify the proper method for contractors to submit a bid. Namely, it must identify
whether the City requires electronic or physical delivery, and which City official(s) the
bid should be delivered to; and
e. Identify the date a bid must be received by the City to for it to be considered.
f. Contractors must be provided adequate time to respond, but not less than three (3)
business days.
3. Objections to Solicitation
Potential bidders can object to the bid specifications in the ISFB or the bid procedure. However,
such objections must be made received by the City Clerk at least one (1) day before the deadline
for contractors to submit bids.
a. If an objection is received, and the City shall promptly notify all contractors who
received the ISFB of the objection.
b. The City official that prepared the ISFB may choose to deny the objection and proceed
without modification to the solicitation or bid procedure.
c. Alternatively, if the objection demonstrates an error with the solicitation or bid
procedure the City official who prepared the ISFB may modify the bid procedure (e.g.
change the deadline for submitting a bid) or solicitation. All contractors who received
the original solicitation must be given notice of any modification.
4. Receiving/Processing Bids & Awarding Contract
Bids must be in writing and be returned to the City Clerk or Department Director that made the
solicitation by the deadline in the ISFB to be considered.
a. If the City receives less than three (3) bids, and it is either impossible or impractical to
acquire three (3) bids, it may proceed with less than three bids. However, the City must
document efforts made by the City to obtain more than three (3) bids, and while it
would be impossible or impractical to obtain three (3) bids. This documentation must
be maintained for at least six (6) months after the procurement is made. If this process
concludes with no procurement, this documentation need not be maintained.
b. Once received, bids are to be compiled by the Department Director or City Clerk and
submitted to the City Council for consideration.
c. Award is to be made by City Council to the lowest responsive bidder for an ISFB.
d. If two bids are identical, and are both the lowest bid, the City Council has discretion to
choose either bid.
28JPage
e. However, the City Council may also choose to reject all bids. If all bids are rejected,
the procedure established herein may be repeated by preparing and distributing a new
ISFB.
f. If the City Council chooses to make an award, an agreement shall be prepared and
signed by the Mayor, acting on behalf of the City, and by the successful bidder or its
representative.
B. Formal Solicitation For Bids (FSFB) — Public Works Construction greater than $200,000,
Category A (Idaho Code § 67-2805(2)(a))14
1. When to use an FSFB for Public Works Construction
An FSFB shall be used obtain bids for a public works construction project procurement exceeding
$200,000. An FSFB which is a competitive sealed bid process.
2. Preparing & Publishing Solicitation for Bidsjs
FSFB shall:
a. Be written;
b. Set the time and place for the public opening of bids;
c. Describe the needed construction work in sufficient detail to allow an experienced
public works contractor to understand what construction project the City needs;
d. Identify the how copies of bid forms, specifications, bidder's instructions, contract
documents, and general and special instructions can be obtained (a reasonable plan
copy fee may be charged to interested bidders who request these documents);
e. Identify that bids must be sealed, labeled on the envelope as a bid, and addressed to
the City Clerk;
f. Identify whether the City is requiring a bid security equal to five percent (5%) of the
bid value to be included with bids; and
g.
Identify whether payment and performance bonds will be required by the bidder who
is awarded the contract.
If the FSFB requires a bid security deposit, the FSFB must identify whether the deposit shall be
in:
a. Cash
14 See Purchase Process Public Works Construction flowchart at p. 11 supra.
15 See Formal Competitive Procurement Specification Development table on p. 12 supra for additional guidance.
29 'Page
b. Cashier's check made payable to the City;
c. Certified check made payable to the City; or
d. A Bidder's bond executed by a qualified surety company, made payable to the City.
Notice of an FSFB shall be published twice in the official newspaper of the City. The first
publication shall be at least two weeks before the date for opening bids. The second publication
shall occur the following week and at least seven (7) days prior to the date set for opening bids.
Notice will also be posted to the City's website. Notices may be published by the Department
Director who shall notify the City Clerk when publishing notices.
3. Objections to Solicitation
Prospective contractors may object to the bid specifications or bidding procedures. If an objection
is made, it must be received by the City Clerk at least three (3) business days before the date and
time bids are scheduled to be opened.
a. If an objection is received, the City official who prepared the FSFB shall promptly
respond to the objection in writing and communicate such response to all contractors
who submitted bids.
b. The City may choose to deny the objection and proceed with the opening of bids. If
this occurs, City shall notify the objector and bidders of this decision and proceed with
the opening of bids.
c. Alternatively, if the objection demonstrates an error with the solicitation or bid
procedure the City may elect to modify the bid procedure (e.g. change the deadline for
submitting a bid) or the FSFB. All vendors who submitted bids must be given notice
of any modification.
4. Receiving/Processink Bids and Selecting Successful Bidder
a. Sealed bids shall be submitted to the City Clerk or other authorized City Official.
b. Bids cannot be withdrawn after the time set for opening bids has passed.
c. After sealed bids are received, and the time for opening bids has passed, the bids shall
be opened at the public place set in the FSFB for the opening of bids.
d. Bids received after the deadline for submitting the same shall not be accepted and shall
be returned to the bidder unopened.
e. After the opening of bids, the bids shall be compiled by the appropriate Department
Director or the City Clerk and submitted to the City Council for review and potential
award of the contract.
301 Page
i. Council shall only consider the amount bid, the bidder's compliance with the
requirements of the bidding process, and whether the bidder holds the required
license. Upon consideration of these factors, the contract shall be awarded to the
qualified bidder that submitted the lowest responsive bid.
ii. If identical bids are received, the City Council may choose the bidder it prefers.
iii. If the contract is awarded to any bidder other than the apparent low bidder, the City
Council must declare its reason or reasons on the record for rejecting the apparent
low bid and communicate such reason(s) to all who submitted bids.
iv. If, in the opinion of the city council, none of the bids are satisfactory, the council
may reject all bids and either re -advertise for new bids or, by resolution, find (if
factually true) that the goods or services are available more economically on the
open market, and thereafter purchase the goods or services on the open market.
After selecting the successful bidder, the City shall send written notice to all who submitted bids
of its selection.
5. Objections to City Council's Decision
Unsuccessful bidders may object to the City's award of the bid for up to seven (7) days
after receiving notice of the City's decision. The objection must identify why the
unsuccessful bidder believes the City's decision was in error.
After receiving a timely objection, the City shall:
a. Stay performance of any procurement until after the objection is addressed;
b. Set the matter for review by the City Council;
c. On review by the City Council, it must choose to either affirm its prior award, modify
the award, or choose to re -bid. The City Council must also set forth the reason(s) for
its decision.
6. Procedures Following Selection of Successful Bid
a. If the City Council chooses to make an award, an agreement shall be prepared and
signed by the Mayor, acting on behalf of the City, and by the successful bidder or its
representative.
b. Unsuccessful bidders shall be entitled to return of their bid security.
c. A successful bidder shall forfeit his or her bid security upon failure or refusal to execute
a contract and/or to provide payment and performance bonds within the required time.
The City council may, on failure or refusal of the successful bidder to execute the
contract and/or provide payment and performance bonds, award it to the next lowest
responsive bidder, in which event, the lowest bidder's security shall be applied by the
31 'Page
City first to the difference between the low bid and the second lowest bid, and the
surplus, if any, shall be returned to the lowest bidder if cash or check is used, or to the
surety on the bidder's bond if a bond is used, less reasonable administrative costs not
to exceed twenty-five percent (25%) of the amount of the bidder's security. Bids
received after the deadline for submitting the same shall not be accepted and shall be
returned to the bidder unopened.
d. Payment and performance bonds may be required to be furnished before entering a
contract with a successful bidder. Bonds shall be in a form satisfactory to the city
attorney.
e. Bond amount will be satisfactory to the purchasing officer and in compliance with the
contract specifications.
IV. COMPETITIVE PROCUREMENT FOR PROFESSIONAL SERVICES
PERTAINING TO PUBLIC WORKS (Idaho Code § 67-2320)16
All professionals, regardless of dollar value of the project, must be qualified to provide the
services. A written agreement is required when total fees will exceed $10,000. City Attorney
review of the agreement is required for contracts exceeding $10,000.
A. Direct Request — Professional Services < $50,000
For projects under $50,000, a department may make a direct request for services to a firm or
person qualified to provide the needed design services. No bidding process is required, but
departments are encouraged to select service providers from the City's Consultant Roster, if one
is established.
B. Establishing and Maintaining a Consultant Roster - Professional Services > $50,000
The City may establish a list of preapproved professional service providers known as the
Consultant Roster a tool for obtaining professional engineering, architectural, landscape
architectural, land surveying, and construction management services (Idaho Code § 67-2320(i)).
1. Consultant Roster Renewal Timeline
a. The Consultant Roster must be updated, at least every five (5) years, or it shall be
deemed expired.
b. The master agreements for selected consultants will be renewed annually within the 5 -
year (max.) timeline of the official roster, unless sooner terminated in writing.
c. If a consultant is added after the initial roster is established, the master agreement term
for this consultant will expire in conjunction with the initial five-year roster
termination timeline.
16 See Guidelines for Acquiring Professional Services table on p. 13 supra for summary information regarding
thresholds for different procedures, and which City Official has signatory authority at particular thresholds.
32lPage
2. Preparing and Publication or Sending the Request for Qualifications (RFQ) for
Establishing a Consultant Roster
The preparation of the Consultant Roster RFQ shall follow procedures:
a. Include a general description of the proposed project services needed;
b. Identify contact name and contact information at the City if potential services
providers have questions;
c. Encourage persons or firms engaged in the services being solicited to submit a
SOQs and performance data;
d. Establish the criteria and procedures that will be used for selecting the service
provider; and
e. Identify the place where selection criteria and procedures can be obtained, the time
and place for receipt of SOQs, and the time and place of the pre -response
conference, if any.
The publishing of the Consultant Roster RFQ shall follow procedure outlined:
a. The notice of the Consultant Roster RFQ shall be published twice in the City's
official newspaper. The first publication shall be at least two (2) weeks before the
deadline for submitting SOQs. The second publication must be made the week after
the first publication, and at least seven (7) days before the deadline for submitting
SOQs. Notice will also be posted to the city's website. The Department Director
may publish notices for the Consultant Roster RFQ and SHALL notify the City
Clerk of the notice publication.
b. The Department Director (or designee) may also directly solicit SOQs from firm(s)
or person(s) by sending them a copy of the Consultant Roster RFQ.
3. Submissions of Statement of Qualifications (SOO) for Consultant Roster Consideration
a. A firm shall submit required SOQ materials identified in the publication for the
Consultant Roster RFQ.
b. A firm may submit an SOQ at any time, after the initial roster is established, for
inclusion on the Consultant Roster. When this SOQ is submitted, the City will review
the SOQ and determine the firm's eligibility in accordance with Section V. Paragraph
B. Part 4.
4. Consultant Roster Selection Criteria, Selection Procedure, and Final Approval
Selection Criteria shall follow Section V. Paragraph D.
Selection Procedure for Inclusion onto a Consultant Roster:
331Page
a. When considering firms eligible to be included on a specific Consultant Roster, each
consultant SOQ shall be reviewed by 1) at least one person if that person has experience
and expertise for the services being acquired; or 2) at least two persons if the evaluators
do not have experience or expertise for the services being acquired. Persons not on City
staff may be selected when determined by the Department Manager to be beneficial to
the review process.
b. Reviewers shall independently review and score the SOQs and shall complete an
"Evaluation Form" for each firm considered for the Consultant Roster. Selection
criteria and minimum scoring (for acceptance to each Consultant Roster) shall be
established by the selection committee prior to issuing a formal RFQ. After each
reviewer has evaluated the firms for eligibility, the committee will meet to review all
evaluation forms and establish a final score for each SOQ. Firms with SOQs that meet
the minimum score established for each Consultant Roster will be added to the
Consultant Roster. Interviews may be used, if determined by the committee they are
beneficial in establishing final SOQ scores, but they are not required.
c. The Consultant Roster is intended to be established off a Quality Based Selection,
however, submitted Statements of Qualifications may not be adequate for determining
which firm is the best qualified for a specific project outside of the services solicited
for the Consultant Roster. Departments may wish to request additional information
from a possible firm to more accurately determine if a Firm will meet the minimum
scoring criteria for each Consultant Roster.
5. Consultant Roster Approval by City Council
Once the committee has identified all eligible firms to be included on a respective
Consultant Roster, the Department Head (or designee) shall submit the Consultant
Roster(s) to the City Council for approval. This approval shall coincide with the
establishment and Council approval of consultant master agreements for each firm listed
on the Consultant Roster(s). If a firm is added to the Consultant Roster (after the roster is
initially approved by Council), the master agreement for that firm must also be approved
by City Council prior to selecting that firm for a specific project and entering negotiations
for price -based proposals.
6. Contract Award for Rostered Consultants
Once a Consultant Roster has been established, the Director (or designee) can then select
any firm from the Consultant Roster they determine is best suited for the required
professional services being sought. Negotiations can then proceed with that selected firm
on establishing a final cost -based proposal. If the selected consultant and the City fail to
reach mutual agreement on a cost -based proposal, the City can reject that consultant's
proposal, and must select a subsequent consultant from the Consultant Roster to commence
cost -based proposal negotiations. The City Manager shall be authorized to approve and
execute each cost -based proposal (i.e. Task Order) provided legal counsel has also
approved the proposal.
34IPage
If a Department wishes to consider firms that are not on the City's established Consultant
Roster(s) refer to Sections V. Paragraph A. (5_$50,000) or V. Paragraph C. (>$50,000).
C. Formal Request for Qualifications (FRFQ) — Professional Services greater than $50,000
if NOT selecting from Consultant Roster
1. When to do an FRFP
This process is to be used if:
a. anticipated agreement amount will exceed $50,000;
b. no firms, or an inadequate number of firms, on the Consultant Roster appear to meet
the needs of the department; or
c. the department desires to issue a formal request.
The FRFP process is to be used for obtaining the services of design professionals (engineers,
architects, and landscape architects) and surveyors and construction managers who must be
selected based upon demonstrated competence and qualifications (Idaho Code § 67-2320). Costs
are not an allowed factor during evaluation of firms.
2. Preparing and Publishing or Sending the FRFO
An FRFO shall:
a. Include a general description of the proposed project services needed;
b. Identify contact name and contact information at the City if potential services providers
have questions;
c. Encourage persons or firms engaged in the services being solicited to submit a SOQs
and performance data;
d. Establish the criteria and procedures that will be used for selecting the service provider;
and
e. Identify the place where selection criteria and procedures can be obtained, the time and
place for receipt of SOQs, and the time and place of the pre -response conference, if
any.
f. The notice of an FRFQ shall be published twice in the City's official newspaper. The
first publication shall be at least two (2) weeks before the deadline for submitting
SOQs. The second publication must be made the week after the first publication, and
at least seven (7) days before the deadline for submitting SOQs. Notice will also be
posted to the city's website. The Department Director may publish notices for and
FRFQ and SHALL notify the City Clerk of the notice publication.
351Page
i. The Department Director (or designee) may also directly solicit SOQs from
firms) or person(s) by sending them a copy of the FRFQ.
ii. The Department Director (or designee) will send notice of the FRFQ
opportunity to all firms on the consultant roster in the relevant category(s).
iii. Upon receipt of SOQs, and the passing of the deadline for submitting SOQs,
the Department Director (or designee) who created the FRFQ, or the City Clerk,
shall open and compile all submitted SOQs. The SOQs shall then be submitted
to the appropriate city official, evaluator, or committee for review and award of
the contract as set forth in Sections V. Paragraph C. Parts 1.-4. of this Policy.
D. Selection Criteria (when using a Consultant Roster or evaluating formal SOQs)
Selection of professional services shall be based on the criteria developed by the requesting
Department Director (or designee) and such criteria shall be included in the RFQ. The criteria
shall include the following, but additional criteria may be included for specific projects:
1. Firm History and Capability to Perform Project
2. Relevant Project Experience
3. Qualifications of Project Team Members
4. Familiarity with Area and Project
5. Project Approach and Schedule
E. Selection Procedure for evaluating formal SOQ's (not on a Consultant Roster, as defined
in Section V. Paragraph C.)
1. Where consideration of a single firm's qualifications is permitted by this Policy, the
Department Director or their representative shall evaluate the qualifications to determine
that the firm or person is qualified to perform the anticipated services.
2. When consideration of more than one firm's qualifications is required by this Policy for
agreements valued at greater than $50,000, the qualifications shall be reviewed by 1) at
least one person if that person has experience and expertise for the services being acquired;
or 2) at least two persons if the evaluators do not have experience or expertise for the
services being acquired. Persons not on City staff may be selected when determined by the
Department Manager to be beneficial to the review process.
3. Reviewers shall independently review and rank the SOQs and shall complete an
"Evaluation Form" for each firm that submitted a SOQ to a formal RFQ request. Selection
criteria are established prior to issuing a formal RFQ. Each reviewer shall rank the firms
in order of preference. The rankings of each reviewer shall then be combined to determine
361 Page
a final ranking. After each reviewer has ranked the firms, the committee will meet to
discuss the scores.
4. When interviews are required and the number of firms submitting SOQs, exceeds three,
the three highest -ranked firms will be interviewed. The project lead will determine what
the firms are to include in their presentation and/or what the firms need to be prepared to
discuss. When interviews are required and the number of firms submitting SOQs is less
than three, all firms submitting shall be interviewed. The reviewers shall evaluate the firms
based upon their SOQs and information provided at the interview. Each reviewer shall
complete an "Evaluation Form" listing each firm considered and the reviewer's evaluation
of that firm against the selection criteria. Each reviewer shall rank the firms in order:
highest score is ranked number 1, next highest score is number 2, etc. The rankings of each
reviewer shall then be combined to determine a final ranking.
F. Negotiations for evaluating formal SOQ's (not on a Consultant Roster and as defined in
Section V. Paragraph C.)
The Department Director (or designee), shall initiate negotiations for an agreement with
the highest ranked firm, based on the selection procedure. Negotiations shall be to perform
the project services at a price determined by the City to be reasonable and fair to the public
considering the estimated value, scope, nature, and complexity of the services. If unable to
negotiate a satisfactory agreement, negotiations shall be formally terminated by notifying
the firm in writing by certified return receipt mail. Once negotiations have been formally
terminated, negotiations with the next highest ranked firm may begin.
G. Contract Extension
Idaho Code § 67-2320(4). When the City Council has previously entered into a professional
service agreement with a firm for an associated or phased project, an extended or new
professional service agreement may be negotiated with that firm at the Department
Director's discretion. In this case, it is not necessary to conduct the qualifications
evaluation and selection process. City Attorney review is required if amount is > $50,000.
City Manager signs agreement. If ?$50,000, Council approval also required. (Also
reference Change Order Process chart, pages 16 & 17).
H. Contract Award
Other than for Contract Extensions, the Department Director, or City Manager, whoever is
appropriate, shall present the recommended firm to the City Council for approval and
authorization to negotiate the financial terms of the contract which terms shall then be later
presented to the City Council.
37IPage
GUIDELINES FOR ACQUIRING PROFESSIONAL SERVICES
(Idaho Code § 67-2320)
Engineering, Architectural, Landscape Architectural, Construction Management, & Land Surveying Services
Selection based on qualifications only. Cannot ask for prices.
Anticipated Fees
RFQ
Option(s)
Minimum # of
Firm(s) or
Person(s)
Considered
Minimum
# of
Evaluators
Interview
Required2
Approval/Signing of
Contract
$0-$50,000
1.
2.
3.
Direct Request'
Consultant
Roster
Published
Public Notice
1
1
No
< $10,000: Dept
Director
< $50,000: City
Manager
not ona0
Consultant Roster
1.
Published
Public Notice
3
12
Optional
Up to $50,000:
City Manager
>$50,000:
City Council
> $50,000
on a Consultant
Roster
1.
2.
Published
Public Notice
(for initial
establishment)
Consultant
Roster
22
1
Optional
>$50,000:
City Manager3
1 Even though we are not required to use competitive selection for services valued below
$50,000, we are still required to select a consultant that is well qualified to provide the
services.
2 If the evaluator has expertise in the services being obtained, then a single evaluator is
acceptable. If the evaluator does not have expertise, at least two evaluators are required.
3 City Council must approve consultant master agreement prior to City Manager
authorizing.
Interviews may be conducted by phone, video conference, web, or in person.
38JPage
Purchasing Processes (Flow Charts)
39IPage
PURCHASE
PROCESS GOODS
& SERVICES
(Idaho Code 67-2806)
(excludes public works construction)
r
r
r
< 550,000
Select Vendor
based on best
value to the City
z
Prepare Purchase
Requisition (attach
quotes if obtained)
REQ
Reviewed/Approved
by Approver (DH,
Trsr, or CM)
><
r
1
Accounts Payable
Converts Requisition
to
Purchase Order
r
1
Goods o Services
Ordered
Goods or Services
Received/Completed &
Invoice Received by
Dept
r
Pmt approved
Check
Mailed
>_ $50,000 but not
to exceed
$100,000
1
Dept Develops Bid
Specs & Saves Bid
in Laserfiche
Dept Init'ates
Informal Bidding
Dept Receives
!Bids/Bids
Uploaded to
'Laserfiche
L
1
Bids Reviewed
by Appropriate
Dept
L
1
J
> $100,000
1
Department
Develops Formal
Bid Specs
rDept initiates
Formal
Bidding
!City Clerk Receives
!Bids & Opens Bids &
!Uploads to
!Laserfiche
Bids Reviewed
by Appropriate
Dept
nt Submits
to City Attorney for
review of
contract/agreement
Department
Submits to City
Manager for City
Council Award
Dept Prepares
REQ and Attaches
Supporting
Documentation
40 1
PURCHASE PROCESS
PUBLIC WORKS CONSTRUCTION
(Idaho Code 67-2805)
For any project greater than or equal to $50,000, an Idaho PublicWorks Contractors License is required `
for bidding (I.C. 54-1903) and City must, within 30 days,file notice of project award to the IdahoTax
Commission (I.C. 54- 1904A). Plans and specifications for public works construction projects ?.$10,000
must be prepared by, and theconstruction reviewed by, a licensed professional engineer (I.C. 54-1218).
< $50,000
J
elect Vendor based on best
'value to the City
:Verify contractor has
!applicable Idaho Trade
License, City Business License,
Workers Comp, General
Liability Insurance
Provide selected vendor with
'scope of work or contract
!(see page l5forcontract
!authority)
J
!Create REQ inCaselleand attach
'written scope of
'work/contract and other
:relevant documentation
J
REQ Reviewed/Approved
J
,Accounts Payable
'Converts REQ to PO
(Contractor provides
services
and invoices City
J
Dept submits invoice
to Accounts Payable
lnv approved for Pmt /
'Vendor Check Mailed
>_ $50,000 but not
to exceed
$200,000
I.C. § 67-2805(1)
i
Dept Develops
Bid
Specs
I
Informal Bidding
Initiated by Dept
rDept Receives
:Bids/Bids Uploaded
to Laserfiche
I
L
;Bids Reviewed by
appropriate Dept
L
> $200,000
(Category A)*
I.C. § 67-
2805(2)(a)
Dept & Engineer
Develop Formal
Bid Specs
Department
Initiates Formal
Bidding Process
City Clerk Receives
& Opens Bids (Bids
saved in Laserfiche)
l
Bids Reviewed
by Appropriate
Dept& Engineer
Attorney reviews
'contract and Dept
places on Council
@agenda for award
r
'City Clerk receives
!bonds and insurance
'documents and other
;paperwork
*This flow chart shows Category A bidding. For information regarding the Category13 process (set forth in I.C. § 67-2805(2)(b)), please consult with the City
Attorney
41IPage
FORMAL COMPETITIVE PROCUREMENT SPECIFICATION DEVELOPMENT
>$100,000 for general goods and services
>$200,000 for Public Works construction
r
r
Department -
• Originates, prepares technical specifications, provides vendor list, checks
available funds
Public Works and Building Maintenance -
• Forward to Public Works and Building Official for review if project involves any
public facility or infrastructure
Treasurer -
• Reviews general format, proper notices and time frames - contacts the Legal
Department if there are any questions
City Attorney -
• Checks general format, legality of wording, compares to Idaho Code
requirements, etc.
Department -
• Prepares copies of specifications and plans
Department -
• Advertises legal notices, distributes specification packages and notices,
maintains plan -holder list, distributes addenda, opens bids submittals with City
Clerk
Department -
• Co -evaluates submittals with Engineer
• Creates recommendation for award
Department -
• Checks with Treasurer to ensure sufficient funds are available based on bid
results
• Submit recommendation for award to the City Council
421 Page
Contract Approval and
Execution
$10,000 or less
>$10,000 but not to
exceed $50,000
>[ Department Director
>$50,000
City Manager
City Council approval and
Mayor's signature
43 I .
Change Order Process
(for any contract or
agreement)
1
Change order authority granted by
City Council at the time of contract
award.
44[Page
EMERGENCY PROCESS
1.c. § 67-2808(1)
Emergency
situation exists
Communicated
to
City Manager
LDepending on severity and
type, City Manager may:
Declare emergency
and instruct depts
to move forward
Call 24 hour
meeting of Council
to ratify
emergency
Call emergency
meeting of Council
(usually 24 hours)
for declaration of
emergency
Sends notice of
emergency to
State
Dept may purchase as needed (without
competitive processes). However, vendors
still need to have any state -required
licenses, general liability, and workers
comp.
Request emergency
declaration at regular
City Council Meeting or
Work Session
Sends notice of
emergency to
State
Modified competitive procurement may be
appropriate (e.g. request bids but give shorter
reply time, no advertisement in newspaper).
Vendors still need to have state -required
licenses, general liability, and workers comp.
45 I
SOLE SOURCE
§ 67-2808(2))
>$50,000
Dept provides
documentation
to verify there
truly is only one
source
Memo regarding
sole Source to
Treasurer &/or
City Manager
Department
requests res.
from City
Clerk or City
Attorney
Treasurer able
to validate sole
source?
Department
places
resolution on
City Council
agenda
Requests
additional
i fo from
Dept
(oceed with purchase
461Page
PIGGYBACK PROCESS
(I.C. § 67-2803(1))
>_$50,000
Same item or service bid by State of Idaho, another Idaho
political subdivision, or federal government
From the issuing agency, obtain copy of bid specifications,
(including addenda); award letter; and bid recap. From
vendor, obtain letter that vendor will honor the prices from
[name of bid] dated [date of bid] (not necessary for state
bids)
4,
Submit to Treasurer and City Attorney along with memo
explaining what is
being purchased and total cost
4,
City Attorney review for compliance with
state code
Attorney
finds compliance
with state code
Department places
on Council
agenda for
approval
ept prepares requisition
ontract, if any, requires
Request more
info
Requires competitive
procurement
A
471x. 8
START an Asset
Form for the
disposal
Include item on a Surplus
Property Sheet
Submit Surplus Property Sheet
(and COMPLETED Asset Form, if
applicable) to City Clerk and Copy
Treasurer
i
Make arrangements with
Purchasing to move item to
storage building
Surplus items compiled on a list
and circulated to departments.
Items transferred to interested
departments/divisions.
Remaining items placed on a list
for a resolution and Council
action
Sell by public auction
SURPLUS
Contact City Clerk to
discuss disposal
Take to Valley County
Transfer Station
If item was on Asset List,
submit COMPLETED Asset
Form to Treasurer
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DEFINITIONS
Asset: All property owned by the City that has monetary value, including salvage value. Recordable
assets are valued at greater than >$1,500 and have a useful life of at least three years. Depreciable
Capital assets are valued at $10,000 or greater.
Bid: 1. (noun) Written offer to provide goods or services for a stated price. 2. (verb) Process of
obtaining written offers to provide goods and services. The terms "bid" and "proposal" are often
used interchangeably, though each has a distinctive meaning.
Bid Security: A promise to pay that accompanies an SFB or RFP. It can be in the form of cash, a
bid bond, cashier's check, or certified check. The monetary value of the security is forfeited to the
City if the awarded bidder or proposer fails to enter into a contract with the City or if the awarded
bidder/proposer fails to provide payment and performance bonds following contract execution.
Bonds: Legal documents issued by surety companies guaranteeing performance by a contractor.
There are bid bonds (see bid security above) and payment and performance bonds. Payment bonds
are issued to protect subcontractors and suppliers on a project. If the general contractor does not
pay its subcontractors or suppliers, the surety will honor the bond and do so. Performance bonds
are issued to ensure the contractor will complete the project. While bonds appear to operate in a
similar manner as insurance, they are not insurance policies.
Change Order: A change to an existing Purchase Order or Contract. Changes must be within the
original scope of the purchase order or contract and be for unforeseen circumstances. Change orders
must be in writing.
City: City of McCall, Idaho.
City Department: Any Department of the City. Current departments are: Community & Economic
Development, City Manager, City Clerk, Finance, Information Systems, Police, Parks &
Recreation, Library, Airport, Golf, and Public Works (Streets and Water).
Competitive Procurement: Selection of supplier, contractor, or firm to provide goods, equipment,
services, construction services, or consulting services based on a process that allows participation
(competition) by companies able to provide the needed goods or services. "Competitive
procurement" methods include SFBs, RFPs, and RFQs.
Competitive Range: In regard to RFPs and RFQs, refers to Proposals and Statements of
Qualifications that have a reasonable chance of being selected for award. Example for an RFP: A
respondent may have a great price and receive a great score for pricing, but have a dismal technical
proposal, and would therefore not be eligible for award. This company would not fall within the
competitive range.
Contractor: Independent business providing services, typically constructions services, to the City.
May be used interchangeably with the term Vendor depending upon the context of when the term
is used.
Department Director: The person responsible to manage a city department.
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Department Manager: Refers to the Department Director, Department Head, or to their designated
representative for a specific project.
Emergency: The occurrence or imminent threat of a disaster or condition threatening life or
property that requires state emergency assistant to supplement local efforts to save lives and protect
property or to avert or lessen the threat of a disaster.
Employee: A person legally occupying a position in City service, including, but not limited to,
regular full-time employees, introductory/probationary employees, part-time regular employees,
and temporary employees, as defined by the City of McCall Personnel Policy
Favoritism: The practice of giving unfair preferential treatment to one person or group at the
expense of another.
Firm: A firm or person offering professional services to the city.
Household Member: Spouse, dependent children, and any person the employee is legally obligated
to support.
SFB: Solicitation for Bids.
ISFB: Informal Solicitation for Bids.
Immediate Family Member: The spouse/partner, children, children of spouse/partner, spouses of
children, parents, parents of spouse/partner, grandparents, grandchildren, siblings (including step
brothers and sisters and half brothers and sisters), spouses of siblings, legal guardians, and legal
wards, whether living in the same household of the employee or not.
Solicitation for Bids: 1. A request for submittal of prices for goods or services. 2. All documents
associated with the request for prices.
IRFP: Informal Request for Proposals.
On Premise or On -Site: Any service work performed for the City on City property or on private
property at the request of the City. This does not include work performed at the vendor's business
location.
Personal Services: A service requiring a peculiar skill or ability. Examples: labor negotiations,
financial, insurance, and artistic.
Piggybacking: Buying goods or services by utilizing a contract already bid by the State of Idaho,
another political subdivision of the State of Idaho, or the federal government.
PO: Purchase Order.
Professional Services: A service that requires a high level of training and proficiency. Examples:
Architectural, engineering, accounting, legal, and medical.
Professional Services for Public Works: Professional services as defined by Idaho Code Title 67,
Chapter 23, including professional engineering, architectural, landscape architectural, construction
management, and professional land surveying services, including services by persons licensed
pursuant to Idaho Code Title 54, Chapters 3 (architects), 12 (engineers and surveyors), 30
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(landscape architects), and 45 (public works construction management).
Proposal: An offer to provide goods and/or services in response to a Request for Proposals (RFP).
PSA or Agreement: A professional service agreement or contract between the City and the
professional services provider (firm).
Public Works Construction: The repair, maintenance, construction, or remodel of any City
building, road, infrastructure, or facility with non -city personnel.
Purchase Order: 1. Written document to a supplier formalizing a purchase transaction. Document
includes a description of the requested items, cost of items, cost of delivery (if not included in
price), delivery schedule, and other terms and conditions of the purchase. 2. In Caselle, the
document created following conversion of a Requisition that also encumbers budgetary funds to
pay for the purchase.
QBS: Qualifications -Based -Selection
Qualifications -Based -Selection: A process by which firms are evaluated and selected based on
qualifications and not price. This process is required for selection of engineers, architects, landscape
architects, land surveyors, and construction managers.
Quotes: Prices obtained from vendors
Requisition (REQ)/Purchase Requisition: An electronic or written request or order for something
that begins the purchasing process. Following approval, the requisition is converted into a Purchase
Order.
Reciprocal Preference: When an Idaho bidder is competing against an out-of-state bidder that
receives a preference in its home state, the percentage of the preference is added to the out-of-state
bidder's bid for determination of low bidder (Idaho Code 67-2349).
Request for Information: A request for vendors to supply information regarding products and
services available. A RFI is typically used to gather information for budgeting purposes and the
preparation of formal SFB or RFP specifications. The RFI process does not result in an award but
is a valuable tool to discover what is available on the market and possible solutions to an existing
problem.
Request for Proposals: 1. Type of competitive procurement for complex goods or services for
which bidding is not appropriate because needs cannot be easily defined, and price should not be
the primary means of award. Vendors are asked to provide solutions to the City's need and price is
but one of several evaluation criteria. 2. All documents associated with the request for proposals.
Request for Qualifications: A written request for design firms (engineers, architects, etc.) to
provide SOQs so the City may select the most qualified firm (from those submitting a SOQ) to
provide professional design services for a particular project.
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Request for Quotes: A very informal request, usually by phone or email, for a vendor to provide a
price for a particular item or service. May only be used for purchases under $50,000.
RFI: Request for Information.
RFP: Request for Proposals.
RFQ: Request for Qualifications (relates to professional services) or Request for Quotation (relates
to goods and services).
Scrap Metal: Any material, equipment, or disposable supplies, no longer usable for City purposes
and having only salvage value for metal content for recycling.
Significant Idaho Economic Presence: Defined in Idaho Code 67-2349. A vendor is considered
domiciled in Idaho if they have maintained a staffed office, sales office, sales outlet, manufacturing
facilities, warehouse, or other necessary related property; and if a corporation, are registered and
licensed to do business in the state of Idaho with the Office of the Secretary of State for at least one
(1) year prior to submitting a bid.
SOQ: Statement of Qualifications.
Sole Source: When a specific item or service is available from only one vendor.
Statement of Qualifications: Documents submitted by professional design service providers
(engineers, architects, etc.) in response to a RFQ that describe a firm's abilities and experience to
provide a requested service.
Surplus: Any asset that is no longer useful for City purposes.
Vendor: Any person or company that sells or provides supplies or services. Often used
interchangeably with the term Contractor.
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