Visalia: Bid Requirments

CHAPTER 5
BID REQUIREMENTS AND PROCEDURES

OVERVIEW
This chapter includes policies and procedures for the use of each authorized source selection method. In addition, it states policies and procedures on contracts, appeals, plant inspection, audit of vendor records, reporting suspected antitrust practices and retention of procurement records.

FAIR AND OPEN COMPETITION
Healthy competition is at the heart of efficient purchasing. Competition is directly related to the prices the City pays and the quality of the goods and services it obtains.

The foundation for effective fair and open competition is equal treatment of each vendor. It is imperative that no vendor is given an advantage over the others. Therefore, vendor offers will be kept confidential during the bidding process. A vendor is not entitled to know the bids of the competitors so he can undersell them. In addition, vendors will not be allowed to dictate the specifications and thereby limit the bidding to only their company's product.

A consultant to the City who makes a needs assessment shall not be allowed to bid on a project except when full disclosure is made to the City.

Subject to the provisions of "Exceptions to Competitive Bids", no department shall draft, or cause to be drafted. any invitation to bid or request for proposal, in such a manner as to limit the bidding, directly or indirectly, to any one bidder.

PROCUREMENT OPPORTUNITIES
The City of Visalia encourages businesses located inside and outside the City of Visalia to participate in the City's procurement process. It is the policy of the City not to discriminate in regard to procurement procedures.

Purchasing will ensure the widest dissemination to minority and women-owned businesses by including the following organizations in the mailing of bids: Hispanic Chamber of Commerce and the Tulare-Kings Builders Exchange. Major contract opportunities, where appropriate, will be advertised in newspapers of wide circulation such as the Visalia Times Delta, Fresno Bee and California Business Opportunities. Additionally, City departments are encouraged to seek out and use minority and women-owned businesses whenever such actions will not result in additional expense to the City. Chapter 8, Vendor Relations and Vendor Performance, details the utilization of minority and women-owned businesses.

All written solicitations are available in the Office of the Purchasing Agent for vendor review. Bids are normally open for two or more weeks. Potential vendors are encouraged to frequently review the listing of open bids. Copies of the specific bids will be available on request.

BIDDING REQUIREMENTS

Exemptions to Competitive Bids
The City of Visalia requires that competitive bids be secured for all contracts for goods and services that are proposed to be acquired by the City except in the following cases:

Goods or services are valued at $2,500 or less.
In an emergency when goods or services are immediately necessary for the preservation of public health, welfare or safety or for the protection of City property.
When the contract is with a state, federal or local government entity.
When a contract provides only for payment of per diem and travel expenses and there is to be no payment for services rendered.
When obtaining the services of expert witnesses for litigation or special counsel to assist the City.
When, in unusual or extraordinary circumstances, the City Council or the City Manager determines that the best interests of the City would not be served by securing competitive bids or issuing a request for proposal.
Published books, periodicals and technical pamphlets.
The purchase of goods from the California Department of Corrections, Division of Prison Industries or services which can be provided by sheltered workshops or disabled industries in accordance with the Welfare and Institutions Code.

In those rare instances in which Purchasing does not conduct the competitive bidding process or bids or proposals cannot be secured, a full explanation shall be included in the contract transmittal as appropriate, including the names and addresses of the firms and the individuals requested to bid and the reasons why they did not bid or the reasons why the department head believes that there is but a single source for the service or that the City’s interests are better served by exemption. Such advice shall contain information in sufficient detail to support and justify the decision to not seek competitive bids or proposals.

COMPETITIVE BIDS
The City of Visalia requires that competitive bids be secured for all contracts for goods or services greater than $2,500. This is done to ensure that the goods or services acquired by the City of Visalia are at the lowest cost to the taxpayers.

There are two types of competitive bids - informal and formal. Informal bids consist of phone and fax quotes (verbal and written quotes). Formal bids consist of Requests for Proposals, Requests for Quotations and Invitations to Bid and all are sealed bids. Normally the price, time and complexity of the item being procured will dictate which procedure, formal or informal, is utilized. However, all procurements greater than $25,000 are required to be processed through a formal process.

INFORMAL BID PROCESS
Although all purchases may use the formal process, most purchases between $2,500 and $25,000 will use the informal process, although the complexity of the item or service required will determine the specific method used to obtain pricing information. Contracts may not be divided in order to qualify for the informal bid process. All requests for bids will be solicited by the Purchasing Agent or his/her designated representative in writing, via facsimile or by phone. This process will ensure uniformity in the information provided to vendors and the treatment of vendors responding to price inquiries.

If oral price inquiries are obtained by Non-Purchasing City personnel, those quotes should be documented on the requisition and forwarded to Purchasing. Purchasing will have the ultimate responsibility to obtain additional quotes and/or verify all price quotations obtained by other City personnel.

If the department/division is soliciting the product or price information, the department/division may not commit the City with regard to preference for any product or vendor. In addition, vendor pricing shall not be disclosed to any of the prospective vendors until a decision for award has been made.

An award will be made to the most responsive, responsible bidder via a Purchase Order. If award is to be made to other than the lowest bidder, a written statement justifying the award must be filed in the bid file.

FORMAL BID PROCESS
Formal bids consist of Requests for Proposals, Requests for Quotations and Invitations to Bid and all are sealed bids. Formal bids include complete specifications and contractual terms and conditions applicable to the procurement, including, but not limited to, the place, date and time of the bid opening. The bid opening should take place no sooner than ten (10) calendar days after the mailing and advertising of the bid, unless the Purchasing Agent authorizes a shorter time.

The following conditions apply to the formal bid process:

Public Notice of the Invitation for Bid shall be a minimum of ten (10) calendar days prior to the date set for the opening of bids. Such notice may include publication in a newspaper, trade publication or other printed matter of general circulation. The public notice shall state the bid item and the place, date and time of the bid opening.
Bid Opening: Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation to Bid.

Request for Quotation (RFQ)
The RFQ is used to obtain written bids when the item or service requested can be clearly defined by the setting of complete specifications. The City of Visalia uses three types of specifications. In order of preference, they are: performance, technical and brand name or equal, with the equal cited.

Purchases of supplies and equipment of an estimated value in the amount of $25,000.00 or less may be made in the open market. All bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of $2,500.00 or less.

Minimum Number of Bids: Open market purchases shall, whenever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder by the City Council.
Notification of Potential Bidders: The Purchasing Agent shall solicit bids from prospective vendors by written request, telephone request, and facsimile request.

Invitation to Bid - Formal Sealed Bidding or Formal Contract Procedures
An Invitation to Bid, the formal sealed bidding process, is required for the procurement of supplies, equipment and any item, or group of items valued at more than $25,000.00. It differs from the RFP process in that the items, supplies and equipment can be adequately described in terms of specifications. It differs from the RFQ process in that the RFQ process is utilized specifically for items valued between $2,500.00 and $25,000.00. Additionally, certain requirements must be met in the formal contract process, including: advertising requirements, bid opening procedures and award of contract. Professional Service Contracts are generally exempt from the formal sealed bid process. See Qualifications Based Selection procedures, Chapter 15.

Public Notice (Posting Bid Advertisements): Bids that have not closed will be available for public inspection in the Office of the Purchasing Agent, 707 West Acequia Avenue, Visalia, CA, during business hours.

Notices inviting bids shall be published at least ten (10) days before the bid opening date and shall be published in the official newspaper selected by the City.

Mailing bids to vendors on the City's established Commodity Bidder Lists is the preferred method of solicitation. The Purchasing Agent shall solicit bids from all responsible, prospective suppliers whose names are on the Bidder List. In addition, the use of trade journals and the yellow pages should be used to locate additional vendors to obtain the widest possible circulation of the bid.
Bidding Time and Due Date: The bidding time will be determined by the Purchasing Agent or buyer involved, but should be no less than (10) calendar days after the bids are advertised and mailed. All bids shall provide sufficient time for bidders to prepare and submit their bids.
Purchasing may change the bid due date. Such changes will be issued in writing in the form of an addendum to all bidders who received the original bid documents.
Form of Bid: To receive consideration, bids shall be made on the forms provided by Purchasing.

All bids must be in ink or typewritten. All changes must be initialed in ink.

Bids must be signed by an authorized representative of the vendor.

Purchasing reserves the right to waive any informality or irregularity in the bids.
Specifications: Specifications contained in the bid will, where practical, be nonrestrictive so as to provide an equal basis for competition and participation by an optimum number of qualified bidders.

Unless otherwise specifically provided in the bid, reference to any equipment, material or supplies by trade name, make or catalog number shall be regarded as establishing a standard of quality and shall not be construed as limiting competition. All bids that offer a different trade name, make or catalog number must include a complete description, list variances from the bid specification and include literature that describes the item offered. The final decision as to whether an item is an equal shall rest with the Purchasing Agent. Purchasing shall have the discretion to accept an equal bid if it can be shown that the equal substantially conforms to the specifications
Addendum to Bid: A bid may be amended by Purchasing, provided the change is issued in the form of an addendum to all vendors who received the original bid.

Oral interpretations of contract specifications, terms and conditions shall not be binding on the City unless confirmed in writing by the Purchasing Agent in the form of an addendum.
Bid Bonds and Contract Bonds: When deemed necessary by the Purchasing Agent, a bidder's security, payable to the City may be required. Such a requirement will be included as a part of the Notice Inviting Bids.

Bid security may be in the form of a certified check, cashiers check or surety bond payable to the City of Visalia.

The bid security will be retained by the City until the related contract is executed. A successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed. If the successful bidder fails to enter into the contract when offered, the proceeds of the bond will be paid to the City of Visalia as liquidated damages.

The Purchasing Agent may also require the contractor to supply the City with bonds covering faithful performance and labor and materials. See Chapter 9, Insurance and Bonds for more details.
Faxed Bids: Faxed bids in lieu of competitive sealed bids will not be accepted unless pre-approved by the Purchasing Agent and explicitly allowed by the terms and conditions of the bid.

To be acceptable, the faxed bid must be in writing, on the form provided, with an authorized signature. A faxed bid must be received in its entirety prior to the date and time set for the opening of bids.

Vendor will be required to confirm the faxed bid by submitting original bid documents by mail to the Purchasing Agent within two (2) working days after the bid closes. Original bid documents not received within the specified time frame will be cause for rejection of the faxed bid.
Late Bids: All bids must be received by the time specified in the bid. Late bids will not be considered and shall be returned unopened to the bidder.
Bid Opening: Bids shall be opened publicly in the presence of attendees, if any, at the time and place designated in the bid. The amount of each bid and other such relevant information the Purchasing Agent deems appropriate, together with the name of each bidder, shall be recorded; the record and each bid shall be open to public inspection at the bid opening and after an award decision has been made. Bid information will not be available for public review during the evaluation phase or until the award of contract.
Insufficient Number of Bid Copies: The Purchasing Agent may elect, if it is in the City of Visalia's best interest, to accept a bid from a bidder who has not submitted the proper number of copies of the bid. A bidder who does not submit the proper number of copies as designated in the bid, may be allowed one (1) working day from the time of the bid opening, or sufficient time as deemed necessary by the Purchasing Agent, to supply the proper number of copies.
Bid Acceptance and Bid Evaluation: Bids shall be unconditionally accepted without alteration or correction, except as authorized in this chapter. Bids shall be evaluated based on the requirements set forth in the bid, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability to a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs and total or life cycle costs.

All contracts shall be based strictly upon the face value of the bids received. No secret rebates and other considerations can be accepted. Award shall be made to the lowest responsive and responsible bidder based upon the criteria set forth in the bid such as:

The cost, including the effect of term discounts (not less than 20 calendar days after receipt of goods or after receipt of correct invoices, whichever is later) and taxes. Prices may be determined by life cycle costing.
The quality of the article proposed to be supplied, conformity with specifications and the purposes for which required.
Compliance with bid requirements, terms and conditions.
The ability, capacity and skill of the bidder to perform the contract or provide the services required.
The character, integrity, reputation, judgement, experience and efficiency of the bidder.
Whether the bidder can perform the contract within the time specified.
The quality of performance of previous contracts.
The previous and existing compliance by the bidder with the laws relating to the contract or services
Servicing resources, capability and capacity.
Uniformity or interchangeability, if such factors are important.
The energy efficiency of the product as projected throughout the useful life of the product.
Other information required by the bid that has a bearing on the decision to award the contract.

An Invitation to Bid sets forth the specific requirements of the City and the method by which the bids will be evaluated. The evaluation and selection process shall consist of determining which bidder meets the specifications at the lowest responsive responsible level. For each specific requirement, a basic "yes" or "no" answer is required. There is no "fully", "barely", "almost" or "exceeded" level of evaluation.

Mistakes in Bid Detected Prior to Bid Opening: Mistakes in bids detected prior to bid opening may be corrected by the bidder by withdrawing the original bid and submitting a corrected bid to the Purchasing Agent before the bid opening. If there is not sufficient time prior to bid opening to withdraw the original bid and submit a corrected bid, the bidder or an authorized representative may correct the mistake on the face of the original bid, provided that the official opening time has not yet been reached. A corrected bid must be time-stamped upon re-submission.

Mistakes discovered before the bid opening may only be modified or withdrawn by written or facsimile notice or by the personal presentation of the person signing the bid. The notice must be received in the office designated in the Invitation to Bid prior to the time set for bid opening.
Mistakes in Bid Detected During or After Bid Opening: After bids have been opened, corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence (a) that a mistake of non-judgmental character was made; (b) the nature of the mistake, and; (c) the bid price actually intended. However, after the bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the City or fair competition shall be permitted.

If the bidder submits evidence in writing to the Purchasing Agent that a mistake has been made by the bidder in the calculation of his bid, the Purchasing Agent may allow the bid to be withdrawn, provided the claim of mistake and the evidence in support thereof is made and provided within five (5) business days after the bid has been opened. Compliance with this section, within the specified time limit, may relieve the bidder of forfeiture of the bid bond.

In lieu of ability to withdraw or correct a bid, a low bidder alleging a material mistake of fact may default by refusing to deliver goods or services by:

Written documentation on company letterhead requesting withdrawal and stating reason, and
Agreeing to provide a 100% bid bond with the next bid, and
Paying a penalty of $100 plus the cost difference to issue an award to the next most responsive, responsible bidder.

All decisions to permit the correction or withdrawal of bids, or to cancel award or contract based on bid mistakes, shall be supported by a written determination made by the Purchasing Agent.

Minor Informalities and Irregularities in Bids: A minor informality or irregularity is one which is merely a matter of form or is some immaterial variation from the exact requirements of the Invitation for Bids having no effect, or merely a trivial or negligible, effect on total bid price, quality, quantity or delivery of supplies or performance of the contract, and the correction or waiver of which would not affect the relative standing of, or be otherwise prejudicial to, bidders.

The Purchasing Agent shall either give the bidder an opportunity to cure any deficiency resulting from the minor informality or irregularity in a bid or waive any such deficiency when it is to the advantage of the City of Visalia. Examples of minor informalities include, but are not limited to:

Failure of a bidder to return the number of copies of the signed bids required by solicitation.
Failure of a bidder to furnish the required information concerning the number of the bidder’s employees or failure to make a representation concerning its size.
Failure of bidder to sign its bid, but only if the firm submitting the bid has formally adopted or authorized the execution of the documents by typewritten, printed or rubber stamped signature and submits evidence of such authorization, and the bid carries such a signature or the unsigned bid is accompanied by other such material indicating the bidder’s intention to be bound by the unsigned document, such as the submission of a bid guarantee with the bid or a letter signed by the bidder with the bid referring to and identifying the bid itself.
Failure of a bidder to acknowledge receipt of an amendment to a solicitation, but only if: the bid received indicates in some way that the bidder received the amendment or the amendment has no effect or merely a trivial or negligible effect on price, quality, quantity, delivery or the relative standing of bidders, such as an amendment correcting a typographical mistake.
Failure of a bidder to furnish an affidavit concerning affiliates.
Failure of a bidder to execute certifications with respect to Equal Opportunity and Affirmative Action programs.
Failure of a bidder to furnish cut sheets or product literature.
Failure of a bidder to furnish financial statements.
Failure of a bidder to furnish references.

Background Review of Major Contractors: It shall be the responsibility of any City official authorized to execute contracts or to enter into agreements on behalf of the City, to identify contracts which shall require a background review as an element to be included in Requests for Proposals, Invitations to Bid, or contracts.

Such officials, as indicated above, shall evaluate each contract to determine the appropriateness of a Background Review using the following criteria: the amount of contract, the term of contract, the extent of potential City liability related to the contract and the technical complexity of the services or item being purchased. When deemed appropriate, the following language shall be included in an Invitation to Bid, Request for Proposal, Request for Quotation or contract:

"The City reserves the right to conduct a background inquiry of each proposer/bidder that may include collection of appropriate criminal history information, contractual and business associations and practices, employment histories and reputation in the business community. By submitting a proposal/bid to the City, the proposer/bidder consents to such an inquiry and agrees to make available to the City such books and records the City deems necessary to conduct the inquiry."

In addition, the potential contractor will then be required to respond to questions concerning criminal history, contractual or business practices and pending civil litigation.
Partial Award: Purchasing shall have the discretion to award on an "all-or-nothing" basis or to accept any portion of the items bid, excluding others unless the bidder stipulates all-or-nothing on his/her bid.
Tie Bids: All other things being equal, tie bids shall be awarded to a local vendor or if both or neither is a local vendor, the bid shall be awarded by the flip of a coin by the Purchasing Agent in the presence of witnesses.
Exception to Award to Lowest Responsive Responsible Bidder: Whenever there is a reason to believe that the lowest acceptable bid is not the best price obtainable, all bids may be rejected and Purchasing may call for new bids or enter into direct negotiation to achieve the best possible price. This may also be done if no responsive responsible bids are received.
Cancellation of Bid or Rejection of All Bids: Purchasing reserves the right to reject all bids or to cancel a bid. However, every effort will be made to guard against such an occurrence. Examples of reasons for cancellation of a bid or rejection of all bids are:

Inadequate or ambiguous specification.
Specifications have been revised.
Supplies or services being processed are no longer required.
Change in City requirements.
All bids are deemed unreasonable.
Bids were not independently arrived at or were submitted in bad faith.
A determination has been made that all the necessary requirements of the bid process have not been met.
Insufficient competition.
For reasons that indicate the cancellation or rejection of all bids is clearly in the best interest of the City.

The City may reject any or all bids presented and may, at its discretion, re-advertise for other bids, or the City Council may, after rejecting bids, determine and declare by a four-fifths vote of all of its members, that the work in question may be more economically or satisfactorily performed by day labor, or the labor and materials purchased at a lower price in the open market, and after adoption of a resolution to that effect.

Notice of Cancellation or Rejection of Bids: In the event of a cancellation of the bid, all participating bidders will be notified. If all bids are rejected, the reason(s) will be documented in the bid file.
Disclosure of Bid Results: After award, the bids of all bidders shall be open to public inspection at the office of the Purchasing Agent, by appointment during normal business hours. The City assumes no responsibility for the confidentiality of information offered in a bid.
Appeals: Because it is essential that bidders, offerors and contractors have confidence in the procurement procedures for soliciting and awarding contracts, it is the policy of the Purchasing Division to offer all bidders, offerors and contractors the opportunity to appeal award of purchases or contracts.

The following procedures shall apply in regard to appeals by prospective bidders, offerors or contractors:

Any actual or prospective bidder, offeror or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to the City of Visalia Purchasing Agent and/or the Chief Financial Officer. Appeals must be submitted in writing within five (5) working days after such aggrieved person knows, should have reasonably known or could reasonably be expected to know of the facts giving rise thereto.
Appeals shall be submitted to the City of Visalia Purchasing Agent, 707 West Acequia, Visalia, CA 93291. Appeals should address only areas regarding bid contradictions, procurement errors, quotation rating discrepancies, legality of procurement context, conflict of interest in rating process and inappropriate or unfair competitive procurement grievance regarding the bid process.
The City of Visalia Purchasing Agent or Chief Financial Officer shall have the authority to settle and resolve a protest of an aggrieved bidder, offeror or contractor, actual or prospective, concerning the solicitation or award of contract. The Purchasing Agent will provide a written response to the complainant within five (5) working days unless the complainant is notified more time is required.
If the protest cannot be resolved by mutual agreement, or if the protesting bidder is not satisfied with the decision of the Purchasing Agent and/or Chief Financial Officer, he/she shall have the right to appeal to the City Manager within five (5) business days after notification of the Purchasing Agent decision.
If the protesting bidder is not satisfied with the decision of the City Manager, the final level of appeal is with the City Council. Complainant may appear at the City Council meeting to be heard by Council.

In general, the filing of a protest should cause the solicitation proceedings, which are subject to protest, to be halted until the appeal is resolved. In order to allow essential City functions to continue, the City may proceed with the solicitation or award of contract, despite the protest, upon an adequate determination in writing by the City’s Purchasing Agent or Chief Financial Officer that such action is necessary. It is expected that such determination will occur only in those few circumstances where it is necessary to protect a substantial interest of the City of Visalia.

In an effort to limit frivolous protests, protesters who file two (2) protests within twelve (12) calendar months, whose protests are not resolved in their favor, may be withheld from future bid.

Discussions with Responsible Competitors and Revisions to Proposals
Discussions may be conducted with responsible responsive competitors for the purpose of clarification and to assure full understanding of responsiveness to the solicitation requirements.

Competitors shall be accorded fair and equal treatment with respect to opportunity for discussion and revision of proposals prior to award.

During the discussion process, there shall be no disclosure of any information derived from proposals of the competitors.
Award: The contract shall be awarded with reasonable promptness by appropriate written notice. Award shall be made to the most responsive, responsible bidder whose proposal meets the requirements and criteria set forth in the Invitation to Bid and whose bid is determined to be the most advantageous to the City. The contract file shall contain a written explanation of the award decision
A responsible bidder is one who has the capability, financial capacity and integrity to perform the contract. A responsive bidder is one who commits to all of the material terms (e.g., price, quantity, quality and delivery) of the Invitation to Bid.

Request for Proposals
Detailed procedures for obtaining the services of engineers, architects, land surveyors, planners and other specialized professions are found in Chapter 15, Guidelines for Retaining Consultants. This section primarily deals with specialized equipment and services that the City may contract out such as janitorial, pest control, street striping, etc.

In some cases the competitive bidding process may not be the best method of acquisition. A viable alternative is the competitive sealed proposal, generally called a Request for Proposals process (RFP).

The Request for Proposals (RFP) process is the formal bid process used when the City cannot precisely set forth its needs. The Request for Proposals process is a form of soliciting an offer, by one party to another with reference to some unique or technical task or equipment. An RFP is primarily used for professional and specialized services such as engineering and architectural services, or for equipment that is complex or highly technical in nature. Instead of specifications, a statement or scope of work is written and the vendors are asked to propose solutions. This process may be used as a basis for making an acquisition or entering into a contract when specification and price will not necessarily be the predominant award criteria. The process is subject to the competitive sealed bid process and the following requirements:

When there is no clearly established quantifiable standard associated with the service or asset being requested
When evaluation factors involve the relative technical or professional ability of the offerors to perform.
When the evaluation process involves weighing artistic and aesthetic values.
When price or cost may be a secondary consideration.
When it is likely to best serve the City’s interest if a contract award were made to the most advantageous proposal rather than the lowest price submitted.

The award of contract shall be subject to City Council approval if the contract resulting from the RFP is expected to exceed $25,000 and has not previously been approved by City Council as a part of the City’s budget process, i.e., capital expenditures.

If the RFP process is used for a public project as defined in Section 20161 of the California Public Contract Code, the proposal shall be subject to City Council approval.

The "General Conditions" of the RFP detail what information vendors are to submit and in what form, the cost of their proposals, how the City will evaluate the proposals, select the vendor and develop the contract.

All requirements for the RFP shall be transmitted to the Purchasing Division in written form, i.e., memo or requisition. Under normal conditions, the time for processing an RFP is ninety (90) days. This allows vendors enough time to develop their proposals and Purchasing enough time to schedule and conduct interviews or demonstrations. Departments shall specify any required time frame less or greater than the ninety (90) day period on the requisition or memo.

The better a City department clarifies its requirement and communicates it to prospective bidders, the more responsive, complete and acceptable the proposals received will be. Development of the RFP shall include:

A clear description of the problem to be solved. If a problem cannot be clearly defined, it is either not sufficiently understood to be successfully addressed by a bidder or it is not really a problem deserving of the bidder's attention.
Specifically identify, in realistic terms, what the bidder is to accomplish. This would include any desired approach to the problem; practical, policy, technological and legal limitations; specific questions to be answered; description of the items to be delivered; format and number of copies of any required reports; and the and nature of the assistance and cooperation which will be available to the bidder from the City.
Firm or established time schedules, including dates for: award of contract, commencement of performance, submission of progress reports, if any, and completion.
Whether, and to what extent, progress payments will be allowed and , if deemed appropriate, known or estimated budgetary limitations on the contract price.
A requirement that the prospective bidder include in the proposal:

1. The professional qualifications of the personnel that the firm will commit to the assignment.
An overall description of the techniques to be used in solving the problem.
The total cost of the study, a detailed breakdown of how it was computed and any desired method of payment.
List of similar types of contracts.
Amount of time and staff to be expended
Facilities and equipment to be utilize
Description and percentage of work to be performed by subcontractors

Other considerations including contractual requirements:

Description of applicable City contract language.

1. Limitation of City’s obligation due to non-appropriation of funds
Prohibition against assignment
Indemnification
Insurance and bonding requirements
Data security
Warranties
Compliance with applicable City, State and Federal laws, rules and regulations
If grant-related, compliance with applicable rules and regulations as required by the funding source.

If a sample contract is included, RFP disclaimer language will be included stating that it is a sample
contract and may or may not reflect final terms and conditions of the contract.

Solicitation of Responses to the RFP
In order to ensure maximum project exposure and competition, the requisitioning department shall:

Ascertain the potential of qualified, competent firms or individuals and prepare a list of potential offerors with particular emphasis placed on qualifying local firms, companies or individuals.
Adequate public notice of the RFP shall be given in the same manner as provided in the competitive sealed bid (IFB) process, except that the minimum time is lengthened to twenty (20) days.
During the process of negotiation, proposals shall be handled to provide confidentiality of all offeror identities and any proposed content from competing offerors. Proposals will be registered containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. After the contract is awarded, the register of proposals shall be open for public inspection.
The RFP shall state the evaluation factors, the relative importance of each factor and the composition of the evaluation committee.

Pre-Proposal Conferences and Equipment Demonstrations
Pre-proposal conferences may be conducted to explain the requirements of the project. The conference should be held long enough after the initial request has been issued to allow offerors time to become familiar with the project. In addition, equipment demonstrations for specialized equipment should be held long enough after the initial request has been issued to allow offerors time to arrange for demonstration of the equipment.

A summary of any pre-proposal conference should be provided to those prospective offerors known to have received an RFP.

Amendments to the RFP
Amendments to the RFP shall be identified as such and shall require that the offeror acknowledge all amendments issued. Amendments shall be sent to all prospective offerors known to have r4eceived an RFP and shall be sent within a reasonable time to allow offerors to consider them in their proposal. If the time and date established for the receipt of proposals will not allow such time for consideration, the time and date for receipt of such proposals will be increased by amendment to provide such time.

Amendments shall be used to:

Make any changes in RFP, i.e. quantity, descriptions, schedules and opening dates.
Correct defects or ambiguities.
Furnish to other offerors all information give to one, if such information will assist the others in submitting proposals or if the lack of such information would prejudice others.

Modification or Withdrawal of Proposals
Proposals may be modified or withdrawn prior to the established due date and time. Modified proposals may be re-submitted prior to the established due date and time.

Late Proposals
Any proposal withdrawal or modification received after the due date and time will not be considered for award. It is the responsibility of the offeror to submit the proposal at the time and date established and in the place designated for the receipt of proposal.

Receipt and Registration of Proposals
Proposals shall not be opened publicly so as to avoid disclosure of the contents to competing offerors during the negotiation process. Proposals shall be received by the Purchasing Division and shall be time-stamped upon receipt and held in a secure place until the established due date and time. A register of proposals shall be prepared registered containing the name of each offeror, the number of modifications received, if any, a description sufficient to identify the item offered and any additional information deemed necessary. The register of proposals shall be open for public inspection only after the contract is awarded. Proposals and modifications shall be shown only to City personnel or committee members having a legitimate interest in them.

Evaluation of Proposals
Selection of the evaluation committee should occur in the primary stages of development of the RFP in order that the committee has a complete and detailed understanding of the scope of the project, its limitations and the desired results.

The committee should consist of knowledgeable individuals from the requesting department, representatives from other involved City agencies, a representative from the Purchasing Division and, if deemed desirable, a recognized expert from the private sector.

The evaluation committee shall compile scores of participating firm(s) or individual(s) submitting the most responsive proposal(s), price and all other factors considered.

Evaluation Factors
The RFP should state the evaluation factors and their relative importance. Evaluation factors may include:

General quality and responsiveness of the offeror to terms and conditions and times of performance.
Completeness and thoroughness of the proposal.
Grasp of the problem or of the work to be performed and of the approach to be used.
Evidence of good organizational and management practices.
Qualifications of personnel.
Experience and past performance
Financial condition of the offeror.
Price and cost breakdown, or price range and cost schedule.

Factors not specified in the RFP should be considered in the evaluation only as an enhancement to the RFP.

Methods of Evaluation
The method of evaluation should be included in the RFP. The three most commonly acceptable methods are as follows. All methods are appropriate for selecting consulting firms and service contractors. Method three shall be generally used for negotiated purchases of specialized equipment.

Utilizing a scoring method: All proposals shall be reviewed to determine those that meet the RFP requirements. The evaluation committee shall evaluate and score the proposals using the factors specified in the RFP, and shall prepare a priority list of offerors.

The project manager, the Purchasing Agent or the requesting department representative shall meet with the most responsive offeror to seek a clear understanding of the contract provisions, and an agreement of a fair and reasonable price, if the offeror was not requested to include the price in the proposal. If agreement is not achieved, negotiations shall be discontinued and negotiations shall begin with the second-most responsive offeror.

This process may be repeated until agreement of scope of work, timeline and costs are established with a capable firm or individual on the priority list.
Negotiate with "most-responsives": The evaluation committee may select two (or more) of the most responsive proposals. The project manager, the Purchasing Agent or the requesting department representative shall meet with the representatives of each to seek a clear understanding of the contract provisions, and an agreement of a fair and reasonable price, if the offeror was not requested to include the price in the proposal. Offerors shall be accorded fair and equal treatment with respect any opportunity for discussion and revision of proposals. Such revisions may be permitted after submissions, yet prior to award, for the purpose of obtaining the best and final offer. There shall be no disclosure of any information about proposals submitted by competing offerors.
Double-tiered proposal: The RFP may require that all proposals be submitted with price and/or price breakdown in a separate sealed envelope. The evaluation committee shall review all proposals and score each proposal. Then the sealed prices from each fully acceptable proposal will be opened and the final selection will be based on a combination of the proposal evaluation score and the price or weighted price.

Award and Execution of the Contract
The recommendation for award shall be justified by the requesting department head with concurrence from the Purchasing Agent.

Award shall be made to the lowest responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration the price and evaluation factors set forth in the RFP. The contract files shall contain the basis on which the award is made.

If the RFP was approved by City Council, or if the recommended contract price exceeds $100,000, the resulting contract shall be approved by City Council and executed by City contract or Purchase Order.

If the contract does not exceed $100,000, the contract may be approved by the City Manager and executed by City contract or Purchase Order.

If the contract price does not exceed $25,000, a Purchase Order contract shall be issued by the Purchasing Agent.

Formal contracts will require the signature of the City Attorney, the Risk Manager, the Purchasing Agent and the City Manager.

Development of the Document
The professional services agreement (contract) shall state the scope of work, contractor, term of contract and document process.

No agreement will be approved if there is start up date, or if actual work ahs begun, prior to the date that the City Attorney has reviewed and approved the proposed document.
Contracts will be pulled from the City Council Agenda if they have not been previously submitted to, reviewed and approved by the City Attorney’s office.
In certain, very limited, circumstances, exceptions may be made to rules 1 and 2 listed above. However, in such instances it will be the burden and responsibility of the department head to provide a proper explanation and justification on the necessity to start contract performance before the City Attorney approves in final form or proceed before City Council approval, rather than pull the item from the agenda.
NOTE: In most cases, in the absence of the City Attorney’s and/or City Manager’s approval of the agreement/contract final draft, there can be no liability to the City of Visalia. This in turn can create the potential for personal liability on the part of the individual department heads.

Approval Process

The City Council and/or the City Manager, or his/her designee, are the only City officials with authority to approve outside provider service agreements in excess of $15,000. However, as an administrative policy, the City Manager shall exercise his/her authority to approve such agreements up to a maximum of $100,000. City Council shall approve all outside service provider agreements/contracts in excess of $100,000.
All attorney selection(s) must be through, and with the approval of the City Attorney.
Environmental Review Agreements, which have been paid for by the developer, will be exempt from this approval process. Contractor’s selection, however, will be based on the criteria and guidelines for selection listed in this policy; a contract will be required, and; contractors will be selected on a rotating basis.

Other Considerations

The City Attorney shall be consulted in the development of complex proposals.
A prospective bidder shall not be involved in drafting the RFP. While specifications can be obtained from potential bidders, the department is responsible for ensuring that those specifications are not unduly restrictive.
Throughout the proposal and negotiation process, all contacts with bidders and prospective contractors shall be strictly professional to avoid any conflict of interest or the appearance thereof.
During the evaluation process, it is very important that all offerors be given equal treatment with respect to discussions and revisions. Auction techniques – revealing one offeror’s price to another – and disclosure of any information from a competing source are strictly prohibited.
In an emergency, the department head may select an outside service provider, notify the City Manager as soon as possible and seek approval at the next Council meeting.
Any State or Federal regulations or requirements pertaining to a particular contract or agreement and contrary to the provisions of this policy, shall supercede this policy.

Public Inspection
The most responsive proposal shall be available for public inspection at the conclusion of the process.

Rejection of Proposals
Nothing in the RFP procedure requires the awarding of a contract. If the City determines that none of the proposals received offers a suitable solution to the problem at a reasonable price, proposals may be rejected.

SOLE SOURCE PURCHASES
Invitations to Bid, Requests for Proposals and Requests for Quotation shall be secured for all contracts for goods or services which are proposed to be acquired by the City which are greater than $25,000 in value. However, in those rare instances where bids or proposals cannot be secured, a full explanation shall be included in the requisition or Agenda Item, as appropriate. A memo from the department head and a Sole Source Justification Form shall be included stating reasons as to why the goods or services should not be bid or the reasons there is a single source for the service or that the City's interests are better served by the exemption. Such advice shall contain information in sufficient detail to support and justify the decision to not seek competitive bids or proposals.

Departments anticipating the need to sole source (e.g., unique - available only from one manufacturer or distributor) an item should contact Purchasing as early in the procurement process as possible. The steps involved in carrying out a sole source procurement are detailed below:

Discuss with Purchasing, the specific performance or functional intent that indicates a sole source. Typically sole source criteria are "match existing in place" or possessing a functional or performance characteristic that is, in the opinion of the requesting department, essential to performance of its mission and available from a single manufacturer or distributor. Standardization may not be a justifiable reason for sole sourcing unless properly justified and explained in detail.
Purchasing shall search for alternative sources to ensure equal opportunity is extended to all potential vendors and competition is maximized. Multiple distribution for the identical manufacturer and/or functional equivalents of the requested item as determined by the requesting department or technical expert will not be considered sole source and shall be subject to open competitive bidding.
If a sole source decision is reached, the requesting department shall work with Purchasing to negotiate the procurement.

DETERMINATION OF NON-RESPONSIVENESS
Failure of a bidder to promptly supply information in connection with a bid or an inquiry with respect to the vendor's bid may be grounds for a determination of non-responsiveness.

INSPECTION AND TESTING OF SUPPLIES AND EQUIPMENT
The Purchasing Agent shall inspect supplies and equipment to determine their conformance with the specifications set forth in the order. The Purchasing Agent shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries that are necessary to determine their quality and conformance with specifications.

INSPECTION OF PLANT AND AUDIT OF RECORDS

Right to Inspect Plant
The City, may at reasonable times, inspect the part of the plant or place of business of a contractor or any subcontractor that is related to the performance of any contract awarded or to be awarded by the City.

Right to Audit Records

Audit of Cost or Pricing Data: The City may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data to the extent that such books and records relate to such cost or pricing data. Ant person who received a contract, change order or contract modification for which cost or pricing data is required shall maintain such books and records that relate to such cost or pricing data for three (3) years from the date of final payment under the contract unless a shorter period is otherwise authorized in writing.
Contract Audit: The City shall be entitled to audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract, other than a firm fixed-price contract, to the extent that such books and records relate to the performance of such contract or subcontract . Such books and records shall be maintained by the contractor for a period of three (3) years from the date of final payment under the prime contract and by the subcontractor for a period of three (3) years from the date of final payment under the subcontract unless a shorter period is otherwise authorized in writing.

Reporting of Anti-competitive Practices
Anti-trust violations are activities or practices that attempt to restrain trade or commerce. Anti-trust activities are illegal and are strictly regulated by three primary laws enacted by the Federal government: (1) The Sherman Antitrust Act of 1890; (2) The Clayton Antitrust Act of 1914, and; (3) The Robinson-Patman Act of 1936.

The Sherman Antitrust Act states that every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce among the several states or with foreign nations is declared to be illegal. The Clayton Antitrust Act supplements the Sherman Antitrust Act and prohibits price discrimination, tying agreements and certain mergers and acquisitions. The Robinson-Patman Act is an amendment to the Clayton Act and is intended to eliminate discriminatory and predatory pricing practices.
Types of anti-trust activities include price fixing, boycotts, reciprocity and bid rigging.

When for any reason, collusion or other Anti-competitive practices are suspected among any bidder or offerors, a notice of the relevant facts shall be transmitted to the City Attorney's Office by the Purchasing Agent.

COOPERATIVE PURCHASING
The Purchasing Agent is authorized to join with other public and private entities for the purpose of collectively preparing specifications; requesting and receiving bids, quotations or proposals; and making award to the lowest responsive responsible bidder, provided that the source selection method used is substantially in compliance with the requirements of this chapter.

Purchasing may use State of California Cooperative Purchasing Contracts if the item on the state contract meets the City's needs and if it is unlikely that a separate City bid would result in more favorable prices, terms and/or conditions. Contracted buying groups are considered to take the place of competition if, in Purchasing's opinion, it is the best interest of the City.