SECOND COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 961086

 

Amending Chapter 2, Code of Ordinances of the City of Kansas City, Missouri, by repealing Section 2-1753, Making purchases and term-supply and service contracts, and enacting in lieu thereof a new section of like number and subject matter.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section A. That Chapter 2, Code of Ordinances of the City of Kansas City, Missouri, is hereby amended by repealing Section 2-1753, Making purchases and term-supply and service contracts, and enacting in lieu thereof a new section of like number and subject matter, to read as follows:

 

Sec. 2-1753. Making purchases and term-supply and service contracts.

 

(a) Generally. All purchases of articles, commodities, supplies, materials and common services for the city to include lease and rental of personal property and all term contracts for the acquisition of like items and services shall, unless excepted otherwise in this section or elsewhere, be made competitively by the commissioner of purchases and supplies, who shall solicit, receive and open bids, and make all awards thereof, under such rules and regulations as the director of finance shall approve. The use of the Model Procurement Code and Recommended Regulations of the American Bar Association, as appropriately modified, is encouraged as the general guidelines in developing rules and regulations.

 

(b) Formal bids. Formal competitive sealed bids and competitive negotiated bids will be used for making purchases and term contracts when the amount thereof exceeds $35,000.00. Formal competitive bid and award procedures will be utilized.

 

(c) Informal bids. Informal competitive bids may be used for purchases and term-supply and service contracts when the aggregate amount thereof does not exceed the threshold for formal bids. Quotations shall be solicited from a reasonable number of qualified sources to ensure the purchase is advantageous to the city, price and other factors considered. Simplified procedures for small dollar value purchases may be used when the aggregate amount does not exceed $1,000.00, fair and reasonable prices can be obtained and the administrative and other costs of making numerous small dollar purchases by other procedures exceed any probable price reductions.

 

(d) Emergency procedures. Emergency purchases may be made if there exists a threat to public health, welfare, safety or essential operations of the city. Emergency procurements shall be made utilizing procedures recommended by the director of finance and approved by the city manager with such competition and observation of qualifying regulations as practical under the circumstances. Periodic reports of emergency purchases will be made to the director of finance.

 

(e) Sole source. When it is determined that there is only one source for the required supply or service or when only one response is received to a competitive bid, an award may be made by negotiation with the available source. Supplies or services requested as sole source acquisitions will be advertised two times at a minimum of 14 days prior to solicitation, to determine possible alternate sources, and all such responses will be reviewed prior to award.

 

(f) Term-supply and service contracts. Term contracts will be made for a period not to exceed one year, but may contain unilateral options on the part of the city for renewal for a reasonable number of additional one-year periods. Term contracts need not bear the certificate of the director of finance as regards certification of funds; but no financial obligation shall accrue against the city until a purchase order for the supply or service, on which funds are certified, is issued. Lease or rental of personal property shall be made by term contract and may exceed more than one year in length.

 

(g) Prequalification and bidding requirements. Prequalification of vendors seeking to provide materials, supplies or services is required as follows on all city-administered contracts:

 

(1) Pre-bid orientation. A minimum of two times annually, the city, through one or more of its various departments, shall conduct a pre-bid orientation to instruct participants

in the standard procedures and requirements for becoming vendors to the city. During

this orientation, materials will be provided and representatives from the finance and

human relations departments will be available to respond to inquiries.

 

(2) Pre-bid conference. The director of a city department or his authorized representative may provide for a pre-bid conference at least ten days prior to the bid opening date.

This pre-bid conference may be designated as mandatory or nonmandatory. Those

who attend the pre-bid conference shall be instructed in the procedures and

requirements of city term-supply and service contracts and the specifics of the bid in

process.

 

(3) Prequalification requirements. The following listed items must be completed prior to the bid opening, including the bid documents, or provided prior to the award

according to the terms outlined in the bid specifications:

 

a. For service contracts under $100,000.00, a bid bond may be required

depending upon the complexity or financial risk to city operations. Service

contracts over $100,000.00 will require a bid bond. Term-supply contracts

will not require a bid bond. Performance bonds may be required for all term-supply contracts and for service contracts under $100,000.00 depending upon

the complexity or financial risk to city operations. Service contracts over

$100,000.00 will have performance bonds. Bid and performance bond

requirements may be satisfied by a bond which has been issued by a bonding

company meeting city standards, a certified cashier's check or certificate of

deposit will be accepted to meet the vendor's bid/performance bond

requirements. Certificates of deposit must have prior approval of the city

treasurer, and the original document must be held for safekeeping in the

finance department.

 

b. A standard insurance endorsement form (A) from an insurance company

permitted to do business in the state showing that the bidder is insured for

general liability, automobile liability and workers' compensation for the limits

required by the city.

 

c. A current occupational license from the city, if applicable.

 

d. The vendor's federal employer identification number.

 

e. A certificate of compliance or designation of compliance in the vendor file

from the human relations department of the city or a similar certificate from

the jurisdiction in which it usually does business (where such certificates are

issued).

 

f. A certification of payment of earnings tax and earnings tax withholdings or,

in the alternative, that it has entered into an agreement with the city treasurer

liquidating the amount of earnings tax withholding due and establishing a plan

for payment.

 

g. A committee, whose makeup will be comprised of representatives from city

departments, will meet periodically to review and address prequalification

procedures, departmental compliance, pre-bid meetings and other concerns

brought to its attention. This committee will be chaired by the vice-chairman

of the operations and aviation committee.

 

(4) Advertisement. Advertising will be required for all formal bids of $35,000.00 or more, and will be placed at a minimum of seven days prior to bid opening. Each department

will utilize a standard format for placing such advertisements, and the contract for

publication to be used will be awarded through the competitive bid process. This

requirement will not apply to architectural and engineering services contract

solicitations performed in accordance with administrative regulation 3-18.

 

(5) Prevailing wage determinations. For maintenance or repair, prevailing wages will be utilized if the work alters the structure by 20 percent or more.

 

(6) MBE/WBE-owned businesses participation. The finance department will encourage all vendors to voluntarily utilize MBE/WBE-owned businesses in the procurement

process, including the use of joint ventures, segmentation, etc., of contracts awarded

under this section.

 

(h) Submission and opening of formal bid. Formal bids, as defined by subsection (b) of this section, shall be sealed and addressed as defined in the bid specifications. Competitive sealed bids will be read in summary. Only the name of the bidder will be read for competitive negotiated bids.

 

(i) Action on bids and making awards thereof. Upon opening of bids, they shall be examined immediately to decide as to their regularity in conformity to the requirements of the bid and specifications and bid security, and no bid shall receive consideration that fails to reasonably conform thereto. Awards shall be made with reasonable promptness to the lowest and best responsible and responsive bidder whose bid meets the requirements and criteria set forth in the bid, price and other factors being considered. The commissioner of purchases and supplies or designee may accept the bid which in his judgment is the lowest and best bid, or he may reject any and all bids. Provided, however, in any bid for group service policies covering medical, hospitalization, dental and life, the commissioner shall present all bids to the city council and the city council shall have the exclusive authority to award any contract for group insurance policies to the lowest and best bidder as determined by the council, or to reject any and all bids.

 

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Approved as to form and legality:

 

 

 

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Assistant City Attorney