Where formal bidding is required, the lowest responsible bidder shall be determined through use of the following procedures:
A. Invitation For Bids: Notice inviting bids shall include a general description of the articles or services to be purchased, advise where bid forms and specifications are available, and state the process for submitting a bid. Notice for bids shall be posted in accordance with Utah State Code.
B. Bid Opening: Sealed bids shall be submitted as designated in the notice with the statement “bid for (item)” on the envelope.
1. Bids shall be opened:
a. In public in the presence of a witness at the time and place stated in the notice; or
b. In an electronic bid opening process where bidders may see the opening of the bid. Bidders shall be notified of the time and process for viewing the opening.
2. A tabulation of all bids received shall be posted on the city website for public inspection for a period of not less than thirty (30) days after the bid opening.
C. Rejection Of Bids: The city council shall have the authority to reject all bids, parts of all bids or all bids for any one (1) or more supplies or contractual services included in the proposed contract, when the low responsible bid exceeds available funds as certified by the appropriate city officer by more than five percent (5%), or when the public interest will be served thereby, and when permitted by law. Where a bid exceeds available funds and time or economic considerations preclude resolicitation of work or purchase of a reduced scope or quantity, the purchasing manager may negotiate with the lowest responsible bidder for an adjustment of the bid price, including changes in the bid requirements, in order to bring the low bid within the amount of available funds.
D. Tie Bids: If two (2) or more bids received are for the same total amount or unit price, with quality and service being equivalent, and if the public interest will not permit the delay of readvertising for bids, the city council shall accept the lowest bid made after negotiation with the tie bidders at or after the time of the bid opening.
E. Award Of Contracts: Contracts fifty thousand dollars ($50,000.00) or less shall be awarded to the lowest responsible bidder as provided in this article, subject to approval by the affected city department and the city manager. Contracts in excess of fifty thousand dollars ($50,000.00) shall be awarded to the lowest responsible bidder by the city council after appropriate review.
F. Change Orders:
1. All change orders must be approved by the department head, and then submitted to the purchasing manager prior to any requests for payment.
2. The accumulation of change orders exceeding ten percent (10%) of the original purchase order which meet the following conditions shall be approved by the applicable department head. Change orders that do not meet the following conditions must be approved by the city manager:
a. The total amount resulting from the change order is less than the budget amount approved by the city council; and
b. The change order does not significantly change the original scope of work.
G. Local Vendor Preference:
1. In awarding bids for public work or for the procurement of supplies or services, preference shall be given to local vendors unless such preference is prohibited by federal law or by the terms of a federal grant or loan, the proceeds of which are used to fund the public work or procurement of supplies and services.
A “local vendor” is defined as a business having:
a. A commercial office, store, distribution center or other place of business located within the boundaries of the city, with an intent to remain on a permanent basis;
b. A current city business license; and
c. At least one employee physically present at the local business outlet.
2. All three (3) criteria must be met in order to qualify as a local vendor. If there are no bidders who qualify as a local vendor, the same preference may then be extended to residents of Washington County under the conditions below. If a low bid is submitted by a nonpreferred bidder, the bid may be awarded to a local vendor if the local vendor’s bid is within five percent (5%) of the low nonpreferred bid, and if the local vendor agrees, in writing, within seventy-two (72) hours after notification that it is the qualified preferred bidder, to meet the low bid. Such notice shall contain the exact bid submitted by the nonpreferred bidder, and the city shall not enter into a contract until seventy-two (72) hours have elapsed after notification to the local vendor. The principal place of business of a local vendor may be elsewhere as long as a local branch meeting the above criteria is present. The domicile of one (1) or more partners, owners, associates, directors, employees or agents shall not qualify for constituting a local vendor in the absence of an actual local business outlet. (Ord. 2018-04-004 § 2, 4-5-2018; amd. Ord. 2020-04-002 § 2, 4-2-2020; Ord. 2021-06-005, 6-3-2021)