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ORD 2016-11 Adopted ORDINANCE NO. 2016-11 AN ORDINANCE AMENDING PURCHASING PROCEDURES FOR THE CITY OF NORTH AUGUSTA BY REVISING CHAPTER 2, ENTITLED "ADMINISTRATION", ARTICLE XI. ENTITLED, "PURCHASING." Be it ordained by the Mayor and City Council of the City of North Augusta, South Carolina, in meeting duly assembled and by the authority thereof, that: Article IX. of said Code of Ordinances of the City of North Augusta currently existing Sections 2-250 through Section 2-261 is amended as follows: Section 2-250. Unchanged Section 2-251 Unchanged Section 2-252 Unchanged Section 2-253 Unchanged Section 2-254 Unchanged Section 2-255 Sealed Bid Procedures Such section remains unchanged with the exception of (13) — Waiver of Purchasing Formalities). Such section shall be amended by deleting as currently written and replacing with the following: Section 2-255 (13) Waiver of Purchasing Formalities The City Administrator, as Purchasing Agent, is vested with the right to waive all purchasing formalities when, in the opinion of the purchasing agent, the best interest of the City would be served. This authority can be exercised by the City Administrator for purchases/contracts of an amount less than $20,000.00 without formal Council approval. However, in the event that the City Administrator deems it to be in the best interest of the City to waive such purchasing formalities on a purchase/contract in excess of $20,000.00, such action would require formal approval by City Council at a public meeting. In the event of a decision by the City Administrator to either waive, or recommend the waiving of purchasing formalities to Council, the Administrator shall file a written report setting forth the basis indicating reasons for such waiver. Section 2-256 Unchanged Section 2-257 Unchanged Section 2-258 Unchanged Section 2-259 Unchanged Section 2-260 Unchanged Section 2-261 Unchanged II. The following Sections are additions to the Purchasing Code: Section 2-262 Project Delivery Methods Authorized for Procurements Relating to Construction (1) The following project delivery methods are authorized for procurements relating to construction of any public infrastructure facility: (a) Design-bid-building; (b) Construction management at-risk; (c) Design-build; (d) Design-build-operate-maintain; and (e) Design-build-finance-operate-maintain. (f) Competitive sealed proposals/request for proposals (2) Participation in a report or study that is later used in the preparation of design requirements for a project does not disqualify a firm from participating as a member of a proposing team in a construction management at-risk, design-build, design-build-operate-maintain, or design-build- finance-operate-maintain procurement unless the participation provides the business with a substantial competitive advantage. The City Administrator or his designee may establish guidance by regulation for the application of this item by departments procuring construction services. (3) Definitions: (a) Design-bid-build means a project delivery method in which the City sequentially awards separate contracts, the first for architectural and engineering services to design a public infrastructure facility and the second for construction of the public infrastructure facility according to the design. (b) Construction management at-risk means a project delivery method in which the City awards separate contracts, one for architectural and engineering services to design a public infrastructure facility and the second to a construction manager at- risk for both construction of the public infrastructure facility according to the design and construction management services. (c) Design-build means a project delivery method in which the City enters into a single contract for design and construction of a public infrastructure facility. (d) Design-build-operate-maintain means a project delivery method in which the City enters into a single contract for design, construction, maintenance, and operation of a public infrastructure facility over a contractually defined period. (e) Design-build-finance-operate-maintain means a project delivery method in which the City enters into a single contract for design, construction, finance, maintenance, and operation of a public infrastructure facility over a contractually defined period. Money appropriated by the city is not used to pay for a part of the services provided by the contractor during the contract period. (f) Competitive sealed proposals/request for proposals means a project delivery method utilized when the purchasing agent for the City determines that the use of competitive sealed bidding is either not practical or not advantageous to the City and recommends that such procedure be used in lieu of attempting to enter into a contract by use of any of the other project delivery methods. Such method is specifically described in Section 2-264. (g) Public infrastructure facility means any public structure, public building, or other public improvements of any kind to real property. (4) Choice of project delivery method. (a) Selection of method. The project delivery method used for a city construction project must be that method which is most advantageous to the city and results in the most timely, economical, and successful completion of the construction project. The city shall select the appropriate project delivery method for a particular project and shall, for all project delivery methods other than design-bid-build or purchasing procedures as described in Section 2-251, Section 2-252 or Section 2-253, state in writing the facts and considerations leading to the selection of that particular method. (b) City Administrator Review. The department procuring construction services shall submit its written report stating the facts and considerations leading to the selection of the particular project delivery method to the City Administrator or his authorized designee for his review III. Section 2-263 Source Selection Methods Assigned to Project Delivery Methods (1) Scope. This section specifies the source selection methods applicable to procurements for the construction project delivery methods identified in Section 2-262, except as otherwise provided by regulation for small purchases, sole source procurements, and emergency procurements. (2) Design-bid-build: (a) Design, architect-engineer, construction management, and land surveying services. A qualifications-based selection process must be used to procure design, architect-engineer, construction management, and land surveying services, unless those services are acquired in conjunction with construction using one of the project delivery methods provided in subsections (3) through (7) of this section or Section 2-251, Section 2-252 or Section 2-253. (b) Construction. Competitive sealed bidding must be used to procure construction in design-bid- build procurements. (3) Construction management at-risk. Contracts for construction management at-risk must be procured by either competitive sealed bidding or competitive sealed proposals. (4) Design-build. Contracts for design-build must be procured by competitive sealed proposals. (5) Design-build-operate-maintain. Contracts for design-build-operate- maintain must be procured by competitive sealed proposals. (6) Design-build-finance-operate-maintain. Contracts for design-build- finance-operate-maintain must be procured by competitive sealed proposals. (7) Competitive sealed proposals/request for proposals. Contracts for competitive sealed proposals/request for proposals must be procured in accordance with Section 2-264 as set forth hereafter. IV. Section 2-264 Competitive Sealed Proposals/ Request for Proposals Conditions for use. When the Purchasing Agent determines, in writing, with explanation of the reason(s), that the use of competitive sealed bidding is either not practicable or not advantageous to the City, a contract may be entered into by use of the competitive sealed proposals method. (1) Request for proposals. Proposals shall be solicited from at least three (3) qualified sources, when such sources are available, through a request for proposals. (2) Public notice. Adequate public notice of the request for proposals shall be given in accordance with any bidding requirements as established by the purchasing agent for the City; provided the minimum notice period shall be twenty-one (21) calendar days. (3) Receipt of proposals. No proposals shall be handled so as to permit disclosure of the contents of any proposal to competing offerors during the process of negotiation. A register of proposals shall be prepared containing the name of the offerors. The register of proposals shall be open for public inspection only after contract is awarded. (4) Proposal opening. Proposals shall be publicly opened and only the names of the offerors disclosed at the proposal opening. Contents of competing proposals shall not be disclosed during the process of negotiation. Proposal shall be open for public inspection, immediately after a contract is awarded. Late proposals shall neither be opened nor considered for award; however, the name and address of the late offeror and the time of attempted delivery shall be recorded wherever practicable. (5) Request for qualifications. Prior to soliciting proposals, the Purchasing Agent may issue a request for qualifications from prospective offerors. Such request shall contain at a minimum a description of goods or services to be solicited by the request for proposals and the general scope of the work and shall state the deadline for submission of information and how prospective offerors may apply for consideration. The request shall require information only on their qualifications, experience, and ability to perform the requirements of the contract. After receipt of the responses to the request for qualifications from prospective offerors, the prospective offerors shall be ranked from most qualified to least qualified on the basis of the information provided. Proposals shall then be solicited from at least the top three (3) prospective offerors by means of a request for proposals. The failure of a prospective offeror to be selected to receive the request for proposals shall not be grounds for protest. (6) Public notice. Adequate public notice of the request for qualifications shall be given in accordance with any bidding requirements as established by the purchasing agent for the City; provided the minimum notice period shall be twenty-one (21) calendar days. (7) Evaluation criteria. The request for proposals shall state the criteria to be considered in evaluating proposals. Price may, but need not be, an initial evaluation criterion. (8) Discussion with responsive/responsible offerors and revisions to proposals. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be eligible of being selected for award for the purpose of clarification to assure full understanding of, and conformance to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors. (9) Selection and ranking. Proposals shall be evaluated using only the criteria stated in the request for proposals and there must be adherence to any weighting that has been previously assigned. Once evaluation is complete, all responsive offerors shall he ranked from most advantageous to least advantageous to the City, considering only the evaluation criteria stated in the request for proposals. If price is an initial evaluation criterion, award shall be made in accordance with Section 2-255(6). If price is not an initial evaluation factor, negotiations shall be conducted with the top ranked responsive offeror for performance of the contract at a price which is fair and reasonable to the City. Should the Purchasing Agent be unable to negotiate a contract at a price which is fair and reasonable to the City, negotiations shall be formally terminated with the top ranked responsive offeror and negotiations commenced with the second most advantageous responsive offeror, and then the third and so on until a satisfactory contract has been negotiated. In conducting negotiations, there must be no disclosure of any information derived from proposals submitted by competing offerors. (10) Award. Award must be made to the responsible and responsive offeror whose proposal is determined in writing to be the most advantageous to the City, taking into consideration price and the evaluation criteria set forth in the request for proposals. The contract file shall contain the basis on which the award is made. The contract shall be awarded with reasonable promptness by appropriate written notice to the selected offeror whose proposal is being accepted. (11) Other. If, after following the procedures set forth in Section 2- 264(10), a contract is not able to be negotiated, the scope of the request for proposals may be changed in an effort to reduce the cost to a fair and reasonable amount, and all responsive offerors must he allowed to submit their best and final offers. Where price was an initial evaluation factor, the using department. through the Purchasing Agent, may in his/her sole discretion, and not subject to challenge through a protest, proceed in any of the following manners: (a) Negotiate price with the highest scoring offeror. If a satisfactory price cannot be agreed upon, price negotiations may be conducted with the second, and then the third, and so on, ranked offerors to such level of ranking as determined by the using department and/or the Purchasing Agent; (b) Negotiate with the highest ranking offeror on matters affecting the scope of the contract, so long as the overall nature and intent of the contract is not changed. If a satisfactory contract cannot be negotiated with the highest ranking offeror, negotiations may be conducted with the second, and then the third, and so on, ranked offerors to such level of ranking as determined by the using department and/or the Purchasing Agent; (c) Change the scope of the request for proposals and give all responsive/responsible offerors an opportunity to submit best and final offers. (d) If any of these options are chosen. and it is still not possible to award a contract, any of the procedures outlined herein may be repeated until a proposed contract is successfully achieved. (12) Minor informalities and irregularities in proposals. A minor informality or irregularity is one which is merely a form or is some immaterial variation from the exact requirements of the request for proposals having no effect or merely a trivial or negligible effect on total price, quality, quantity, or delivery of the 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 offerors. The Purchasing Agent shall either give the offeror the opportunity to cure any deficiency resulting from a minor informality or irregularity in a proposal or waive any such deficiency when it is to the advantage of the City. Such communication or determination shall be in writing. Examples of minor informalities or irregularities may, in the City's sole discretion, include, but are not limited to: (a) Failure of a offeror to return the number of copies of signed proposals required by the solicitation; (b) Failure of a offeror to furnish the required information concerning the number of the offeror's employees or failure to make a representation concerning its size; (c) Failure of a offeror to acknowledge receipt of an amendment to a solicitation, when required, but only if the amendment has no effect or merely a trivial or negligible effect on price, quality, quantity, delivery, or relative standing of offerors; (d) Failure of a offeror to furnish product literature; (e) Failure of a offeror to furnish financial statements; (f) Failure of a offeror to indicate a bid number on its submission envelope; (g) Failure of an offeror to indicate his/her contractor's license number. (13) Cost of proposals. Under no circumstances will the City be liable for any costs associated with any proposal. The offeror shall bear all costs associated with the preparation of proposals. (14) Rejection or acceptance of proposals; waiver of technicalities and irregularities. The City shall reserve the unqualified right to reject any and all proposals or accept such proposals, as appears in the City's own best interest. The City shall reserve the unqualified right to waive technicalities or irregularities of any kind in solicitations made under this chapter. In all cases, the City shall be the sole judge as to whether a proposer's proposal has or has not satisfactorily met the requirements to solicitations made under this chapter. V. All such ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed. VI. This ordinance shall become effective immediately upon its adoption on third reading. DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS DAY OF 3y , 2016. First Reading: e 'i tP _1 t' ' Second Reading: Cc' - '' I c Lark W. Jones, Mayor Third Reading: 4- 20- I L ATTEST: �obn - Z. Donna B. Young, City C erk