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A. Specified:

1. Except as otherwise provided herein:

a. Tier 1 Threshold ($0.00 – $5,000.00): Purchases of supplies, equipment or contractual services of an estimated value of five thousand dollars ($5,000.00) or less may be made in the open market without complying with bidding procedures and without a written agreement except as provided in this section. Sufficient effort should be made on all purchases, regardless of cost, to determine the best value before any purchase is initiated. All purchases are subject to approval by the purchasing division. A written agreement is required for contractual services or if the purchases require customization, have unique design criteria, or special terms.

b. Tier 2 Threshold ($5,000.01 – $50,000.00): Purchases of supplies, equipment or contractual services of an estimated value greater than five thousand dollars ($5,000.00) but fifty thousand dollars ($50,000.00) or less require at least three (3) written price quotes and shall be obtained prior to the purchasing of supplies, equipment or contractual services. A record of all written quotes shall be attached to the purchase requisition prior to submitting the requisition to the purchasing division for review and approval. A written agreement is only required for contractual services or if the purchases require customization, have unique design criteria, or special terms.

c. Tier 3 Threshold ($50,000.01 – $100,000): Purchases of supplies, equipment or contractual services of an estimated value greater than fifty thousand dollars ($50,000.00) but one hundred thousand dollars ($100,000.00) or less shall be awarded to the lowest responsible bidder pursuant to the formal bidding procedures. A written agreement is only required for contractual services or if the purchases require customization, have unique design criteria, or special terms.

d. Tier 4 Threshold ($100,000.01): Purchases of supplies, equipment or contractual services of an estimated value greater than one hundred thousand dollars ($100,000.00) shall be awarded to the lowest responsible bidder pursuant to the formal bidding procedures. A written agreement is only required for contractual services or if the purchases require customization, have unique design criteria, or special terms.

2. Value amounts used herein refer to both unit cost and combined multiple unit cost. The estimated value shall be determined by the department authorized signer and the purchasing manager, after review of the pertinent requisition and specifications, in order to determine the applicable bidding procedure. The purchasing manager shall have the authority to waive the requirement to obtain written price quotes in such circumstances that are not cost effective or advantageous to the city.

3. All written agreements shall be reviewed and approved by the legal department in conjunction with the purchasing division prior to a purchase or a project beginning.

B. Construction Projects: Except for maintenance and improvement projects performed by city personnel, all construction projects estimated by the city engineer, water and power engineer or other appropriate party to have a value in excess of the Tier 3 threshold, or where required by state law, shall be advertised for bid and awarded to the lowest responsible bidder, pursuant to the procedure hereinafter prescribed. All such contract awards shall be made by written contract as provided in section 1-10B-1 and shall comply with the insurance and bonding provisions of this article.

C. Bids Not Required For Certain Work: It is the policy of the city to reserve to itself all legal prerogatives to perform services and work with its own personnel and equipment; therefore, nothing in this article shall be construed to require bids to be called for or contracts let for:

1. Conducting or managing any department, business or property of the city;

2. Installing, lowering or repairing water mains or sewers, or making connections with water mains or sewers;

3. Installing, altering, relocating or repairing electrical transmission or distribution lines, transformers and related equipment; or

4. Grading, repairing, relocating or maintaining streets, sidewalks, bridges, culverts or conduits.

Any portion of a public works or improvements project not included in the above description shall be effected through bid and contract as provided in subsection B of this section, if the cost exceeds the Tier 3 threshold.

D. Professional Services: Contracts for professional services estimated to be in excess of the Tier 4 threshold shall be awarded at the discretion of the city council, including, but not limited to, auditing, banking, insurance, legal, engineering and similar professional consultation. Professional services contracts do not include construction projects as detailed in subsection B of this section. The purchasing thresholds in this chapter apply to professional services agreements but shall follow the procurement process for requests for proposals and requests for qualifications. Professional services are not subject to cost-only pricing determinations but shall be based on qualifications and/or proposals.

E. Refusal To Receive Bids: The city may preclude contractors or suppliers from submitting bids where said proposed bidder has not completely satisfied prior notices to comply with construction documents, drawings and/or other specifications, or has otherwise failed to perform any work for the city or the state in a timely or satisfactory manner. The contractor or supplier may appeal the city’s decision to refuse bids from a specific contractor or supplier by filing a written notice of appeal within five (5) days of mailing or service of the notice of refusal. The appeal shall be filed with the purchasing manager. An informal administrative hearing shall be held within fifteen (15) days. The hearing shall be conducted and decided by the city manager and two (2) department heads. Their decision shall be final. (Ord. 2018-04-004, 4-5-2018; amd. Ord. 2023-026, 10-19-2023)