3.16.130 Formal contract procedure.
Except as otherwise provided herein, purchases and contracts for supplies, services (other than professional services), equipment and the sale of personal property of estimated value greater than $25,000 shall be by purchase order or written contract with the lowest (or for purposes of CMC 3.16.190, highest) responsible bidder, as the case may be, pursuant to the procedure prescribed herein:
(1) Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured and the time and place for opening bids.
(a) Published Notice. Notice inviting bids shall be published at least 10 days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city or, if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting notices.
(b) Bidder’s List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder’s list or who have requested their names to be added thereto.
(c) Bulletin Board. The purchasing officer shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the City Hall;
(2) Bidder’s Security. When deemed necessary by the purchasing officer, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder;
(3) Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be opened for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening;
(4) Rejection of Bids. In its discretion, the city council may reject any and all bids presented and readvertise for bids;
(5) Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder who meets the quality requirements. The decision of the city council shall be final. For purchases of supplies and equipment, determination of the lowest responsible bidder may include the adjustment of the bid price of a qualifying local vendor (as defined in CMC 3.16.220(2)(a)) according to the local vendor preference procedures described in CMC 3.16.220(2)(c). For purposes of this section, a “responsible bidder” means a bidder who has demonstrated the quality, fitness, capacity, and experience to satisfactorily perform the particular requirements of the city;
(6) Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening;
(7) No Bids. If no bids are received, the council may authorize the purchase of goods in compliance with informal bidding procedures prescribed in CMC 3.16.110(2);
(8) Performance Bonds. The city council shall have authority to require a performance bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 649 § 2, 2015).