HomeMy WebLinkAboutResolutions - No. 2020-185RESOLUTTON NO. 2020-185
A RESOLUTION OF THE LODI CITY COUNCIL RESCINDING
RESOLUTION NO. 2OO5-161 AND RATIFYING
UPDATED PURCHASING POLCIES AND PROCEDURES
WHEREAS, Resolution No. 2005-161 established and ratified the City of Lodi Purchasing
Policies and Procedures; and
WHEREAS, the Lodi City Council adopted Ordinance 1849 in September 2011 updating
purchasing limits; and
WHEREAS, the purchasing function for the City of Lodi has been decentralized and
responsibility for the purchasing of supplies, materials, and services has been transferred to
departmental staff; and
WHEREAS, the City has replaced its financial management system which required
changes to the purchasing processes; and
WHEREAS, the City is required to have within its purchasing polices adherence to comply
with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements of 2 CFR
200.318 through 200.326, commonly called "Uniform Guidance" when making purchases using
Federal grant funds; and
WHEREAS, staff recommends that the City Council ratify the Purchasing Policies and
Procedures to address changes in current practices.
NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby ratify the
Purchasing Policies and Procedures, as shown on Attachment A and made a part of this
Resolution; and
BE lT FURTHER RESOLVED that the City Council hereby authorizes the City Manager
to make administrative changes to the policy from time to time while maintaining compliance with
the Purchasing System Ordinance.
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I hereby certify that Resolution No. 2020-185 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held August 19, 2020, by the following vote:
AYES: COUNCIL MEMBERS - Chandler, Mounce, Nakanishi, and Mayor Kuehne
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
â,"-.
JENNIF
City Cl
2020-185
CUSMIR
ATTACHMENT A
City of Lodi
Purchasing Policy Council Adoption: August 19, 2020
Section I
GENERAT
PURPOSE
To establish the manner by which all City procurement is to be conducted as well as to ensure City compliance
with applicable laws relating to the expenditure of public funds.
POLICY
When authorized to procure mater¡al or service, all City employees shall follow this policy to correctly and
ethically process a procurement need and ensure the efficient use of public funds. All City rules, regulations,
laws, resolutions and the City Purchasing Ordinance are incorporated herein. See the following chapters of
the Lodi MunicipalCode and the procurement standards in 2 CFR 200.318 through 200326 of the Uniform
Administrotive Requirements, Cost Principles, ond Audit Requirements for Federol Awords.
LMC Chapter 2.L2- City Manager
LMC Chapter 3.20 - Purchasing System
OVERVIEW
The City's Purchasing Ordinance and Purchasing Policy are in place as your guideline to ensure materials and
services are purchased in a legal and cost-effective manner. Most services will require a standard City
professional services agreement which can be found on the City's intranet. Each agreement must be approved
as to form by the City Attorney's office. A one-time service procured through a purchase order is permissible
(LMC 3.20.085) with review of its risk and the appropriate insurance requirements met.
The purchasing functions are decentralized, with each Department/Division responsible for compliance with
City policies and procedures. The City Manager is authorized to execute contracts on behalf of the city in the
amount of $20,000 or less; he may delegate purchasing authority to qualified staff members to purchase or
contract for specific supplies, services and equipment (LMC 3.20.040).
The following apply to all purchases made by the City of Lodi:
1. No purchase will be approved or undertaken unless an appropriation has been established through
either the adopted annual budget or City Council approval of additional appropriations. lt is the
responsibility of the Department/Division to maintain budget control of their individual budgets.
Ultimate responsibility for the individual budget resides with the Department Director.
2. Certain purchases are unique in nature and do not lend themselves to the process of competitive
bidding. These items are excluded from the competitive bidding and purchase order requirements.
These items include, but are not limited to, State or County services, debt service payments, ongoing
expenses for utilities (monthly cost of power purchases, telephone services, refuse pickup, etc.)
3. The City Manager is authorized to execute contracts on behalf of the city in amounts of 520,000 or
less. The Public Works and Electric Utility Directors are authorized to execute contracts on behalf of
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City of Lodi
Purchasing Policy Council Adoption: August 19,2020
the city in the amounts of S15,000 or less. All other directors are authorized to execute contracts on
behalf of the city in the amounts of $10,000 or less (LMC 2.12.060). The City Manager may, in writing,
delegate to qualified staff the author¡ty to purchase or contract for specified supplies, services, and
equipment that conform to the procedures established by the Purchasing System (LMC 2.12.060).
4. The purchase and disposition of fleet vehicles and other specific equipment governed by the city's
fleet policies and procedures, as adopted by resolution of the city council, are exempt from the limits
specified in item 3 above (LMC 3.21.130). The City Manager, or his designee, is authorized to solicit
bids and award contracts for the purchase of vehicles costing 550,000 or less per city's Fleet Policies
and Procedures (Resolution 97-33, revised 03/05/2008).
5. The purchase of electronic hardware and software shall be under the direction of the lnformation
Technology Manager and shall be in accordance with the City of Lodi Administrative Polices -
lnformation Systems - Section 5 Software Selection and Acquisition and shall be by negotiation,
requests for proposal or competitive bids. Awards shall be based on best value, request for proposal,
or bid. Purchase of electronic hardware of software over 520,000 requires the approval of the City
Council. (LMC 3.20.077).
6. Public Works projects in excess of 55,000 shall be bid pursuant to the Public Contracts Code Section
20L62. The definition of a public project is defined in Public Contracts Code Section 20161. The Public
Contract Code can be found at http://lesinfo.lesislature.ca.sov (LMC 3.20.105)
7. Where a procurement involves the expenditure of state or federal grant funds, the procurement
process shall comply with such state or federal laws. (LMC 3'20.095)
8. No City employee shall have a direct or indirect financial interest in any contract or purchase of goods
or services entered into by the City, or shall derive any personal benefit from the City's purchase of
goods or services.
9. No City employee shall use the City's purchasing procedures to obtain property for personal use by
misrepresenting to vendors for the purpose of obtaining price discounts for personal purchases.
10. No City employee shall draft or cause to be drafted any specificatíons for bids in such a way as to
intentionally limit the bidding directly or indirectly to any one bidder.
11. Records of bids, requestsfor proposals (RFP), requests forqualifications (RFQ)of both successfuland
unsuccessful requests shall be kept in accordance with the Local Government Records Manogement
Guidelines as prepared by the Secretary of State and shall be open for public inspection. Generally,
records of successful bids, RFP's and RFds are subject to be maintained for up to seven years;
unsuccessful up to three years.
i"2. The City Manager may make minor changes to the policy without obtaining prior City Council
approval. Substantive changes will require Council author¡zation.
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City of Lodi
Purchasing Policy Council Adoption: August L9, 2O2O
SOLICITATION TH RESH OLDS
The dollar limits for purchases of supplies or services are established in the City Purchasing Ordinance.
Purchases shall not be split to avoid the required procedures or certain dollar limits. lnformal procedures
are used when the value of the purchase or services is 520,000 or less. Formal procedures are used when
the value of the purchase or service is more than 520,000'
Departments are responsible for obtaining quotes/bids as indicated below:
purchases less than S2,5OO - No solicitation of bids are required; however bids are desirable when in
the best interest of the City to do so. Verbal bids are acceptable. Advertisement of bids is not required
Purchases between S2,5OO and 520,000 - Three written bids or proposals; advertisement of bids is
not required.
purchases greater than $20,000 - Formal sealed bids and proposals are required. Advertisement of
bids is required.
Vehicle purchases greater than S50,000 - Require the approval of the City Council prior to soliciting
and awarding of bids.
lnformal procedures are used when the value of the purchase/service is 520,000 or less. Formal
procedures are used when the value of the purchase /service is more than $20,000. Value of the purchase
must include all costs associated with the purchase including alltaxes, fees and freight as applicable.
Staff shall solicit quotations for informal bids by written request for proposal or qualifications, by
telephone, or by electronic data exchange. Solicitation of formal purchases must be by lnvitation for Bid
(lFB), Request for Proposal (RFP) or Request for Qualification.
ISSUING THE QUOTE/BI D/RFP/RFQ
Solicitations over 52,500 require compet¡tive quotes. For informal purchases, staff are to make all
reasonable attempts to obtain at least three written quotes/bids. Staff are encouraged to use the city's
online bidding system which notifies businesses of various bid opportunities. The online system ensures
the maximum exposure and competition. Departments may also maintain lists of potentialfirms.
. Departments shall solicit informal written bids or quotations from prospective vendors by written
request, by telephone or by electronic data interchange.
. Quotations and written informal bids shall be submitted to the requestor who shall keep a record
of the quotat¡ons, bids and open market orders as specified in the locol Government Records
Monogement Guidelines afterthe submission or placing of the order. This record shall be kept
open for public inspection.
o Award shall be to the lowest responsible bidder.
o lnformal bids, offers and quotations may be rejected when in the best interest of the city to do
so.
Exceptions to bidding: The informal/formal bid process may be bypassed in the following instances:
L. ln cases of emergency. An emergency is defined as "arì unforeseen circumstance or combination of
circumstances calling for immediate action to procure materials, supplies, equipment or services in
order to make repairs, safeguard lives or property, or maintain public health or welfare, as a result of
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City of Lodi
Purchasing Policy Council Adoption: August 19,2020
extraordinary conditions created by war, disease, weather, fire or other catastrophic or unforeseen
occurrence, or imminent or actual failure of any plant, equipment, structure, street, or public work"
(LMC 3.20.015). The Emergency Justification Form must be approved by the City Manager or their
designee, whenever possible, pr¡orto any purchase. lf the purchase exceeds S10,000, immediately
following the emergency, the appropriate Department Director shall prepare an agenda report to
Council explaining the emergency and the items purchased.
2. When the commodity can be obtained from only one vendor due to:
a. Product standardization by resolution of the city council;
b. Need for branded replacement parts or supplies for equipment of like brand;
c. When the City Council determines that the purchase or method of purchase would be in the
best interest of the city (LMC 3.20.070).
Unless already authorized by resolution, any purchase over $20,000 for this exception must
be authorized by City Council.
3. When the professional service contract is for one of the following services:
a. Legal defense, legal advice, or legal services;
b. Architectural and engineering services, including but not limited to construction
management, aerial photography, laboratory and material testing services;
c. Accounting and financial services;
d. Real estate appraisals;
e. Transportation service consultants;
f. Safety, environmental or hazardous material consultants;
g. Workshops, seminars and conferences;
h. Computer consulting services.
Contracts for the above services shall be awarded on the basis of professional qualifications
and experience, quality of service, past performance and negotiated prices (LMC 3.20.075).
Contract awards over $20,000 for this exception must be approved by City Council.
4. When there exists other governmental contracts that are competitively bid (such as State Contracts,
DGS, WSCA, Sourcewell, OMNIA Partners, NJPA) by another California public agency. Purchases over
$20,000 for this exception requires approval by resolution of the City Council (LMC 3.20.045).
PROCUREM ENT/PAYM ENT M ETHODS
Purchase Order:
The Purchase Order (PO) is the main source and preferred method of encumbering and procuring materials
over 52,500 and one-time services. The PO is used to communicate to a vendor the City's terms and
conditions, authorizes an encumbrance of City funds and is a contractual agreement to order goods and
services. The PO is used to process payment and track expenditures in the City's Financial System (MUNIS).
lmportant to our procurement process is the system of encumbrance accounting, which helps departments
and Finance control department spending by knowing what amounts have been committed prior to the actual
invoicing and payment of services. When a department makes a verbal commitment with a vendor and does
not issue a purchase requisition and a purchase order is not created, it circumvents the entire budgetary
control process. Verbal commitments with a vendor and the absence of a purchase order is not an acceptable
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City of Lodi
Purchasing Policy Council Adoption: August L9,2020
practice. Obtaining a purchase order from the purchasing processes in Munis is the main method of
encu mbering City funds.
Accounts Payable will pay approved vendor invoices with an appropriate and valid purchase order number
issued from Munis. lnvoices without an authorized purchase order may be returned to the department or
vendor unpaid.
The City of Lodi has implemented a three-way match process in the Munis system. The requisition/purchase
order must match the receipt of goods record which must match the vendor invoice. Any deviation from a
three-way match will require a valid change order to be entered and approved in the Munis system. lnvoices
that do not conform to the three-way match will be returned to the department or vendor unpaid.
Professional Services Agreement: Seruices, as opposed to goods or materials, shall be procured using a
professional services agreement (PSA) as created, revised as needed, by the City Attorney. A purchase order,
with the appropriate terms and conditions, may be used when the services is of a one-time nature. Ongoing,
recurring seruices shall be procured using a PSA.
Purchases of supplies and materials by vendors who supply their own terms and conditions instead of
accepting the city's terms and conditions provided with a materials purchase order must be procured by PSA.
The city attorney's office must approve any vendor terms and conditions.
Credit/Procurement Card (CAL-Card): The issuance of procurement cards (CAL-Card) are authorized to
specified staff by resolution of the City Council. The CAL-Card is used as a purchase and payment method
used to procure budgeted low value goods, typically up to 52,500. lt may be used for higher value purchases
when done so in accordance to the requirements of purchases greater than 52,500 as follows:
o CAL-card holder submits authorization for temporary CAL-card limit increase to CAL-Card
administrator. Authorization is made by Department Director up to their authorized spending limits,
City Manager up to 520,000, or resolution of the City Council.
o CAL-card holder submits competitive bid summary or justification for exception to bids as authorized
in the Purchas¡ng System to the CAL-card administrator.
r CAL-card holder submits approved insurance requirements if purchase is for a one-time service.
o All above documentation is to be included in the CAL-card statement/transaction reconciliation
process in Munis.
o CAL-card administrator will provide a temporary increase to the CAL-card holder's limits (one-time
purchase and monthly credit limit) to accommodate approved purchases over S2,500.
Cardholder and cardholde/s approving official are responsible for proper use of the CAL-card program. See
the CAL-Card Handbook, posted on the City's intranet, for policies and procedures.
Wire/Electronic Fund Transfer (EFT): A bank wire or an EFT is used as a limited payment method for
transactions with large dollar amounts which are time sensitive. Types of payments which are routinely
processed by means of bank wire or EFT are debt service payments, the purchase of securities, payroll
expenses (Federal, State taxes, retirement, medical premiums, employee contributions to various entities,
etc).
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City of Lodi
Purchasing Policy Councif Adoption: August L9,2O2O
Section ll
GENERAL SUPPLIES, MATERIALS AND EQUIPMENT
PURPOSE
Provide guidelines for the purchase of general supplies, materiafs and equipment. Supplies, materials and
equipment shall consist of any and all articles orthings which shall be furnished to or used by any department.
ln instances where goods and services are purchased together from one vendor, this section shall only apply
if the predominant portion of the purchase is goods. (For example, a purchase of equipment for $3,000 with
a SEOO installation fee would be covered under this section of the policy. A repair of equipment with S3,O0O
in labor and 5300 in parts would be covered under Section lll General Trade Services).
INFORMAL/U NSEALED QUOTES
Material/supply purchases exceeding 520,000 must be awarded by the City Council.
lnformal bidding should be used to assure the most competitive price is received for an item, while avoiding
the additional time and expense involved in formal bidding.
The Department/Division should make every reasonable attempt to obtain at least three quotes for all
purchases between 52,500 and $20,000. However, it is understood that at times it is neither practical nor cost
effective to continue soliciting quotes until three quotes are received. ln the event that three viable quotes
are not received, the division shall document what steps were taken to obtain quotes, any vendors contacted
that declined to bid, and, if applicable, why it is not practical to receive three quotes.
Documentation: Quotes received must be documented to the satisfaction of the Budget Division. ldeally,
documentation should include the name of the company bidding, the person giving the quote, items being
quoted, the date and time of the contact, the amount quoted and any other relevant information.
Evaluatins Quotes: The Department/Division shall evaluate the informal quotes received and determine the
lowest most responsible quote. When evaluating quotes, please verify that líke items are being evaluated
(apples to apples). The City reserves the right to accept the quote which is in the best interest of the City.
Purchase Order: A purchase requisition detailing the vendor name, address, item(s) being purchased, total
price including tax and shipping, and budget account to be charged shall be prepared in the MUNIS Financial
System. A copy of the quotes/quote summary shall be attached to the purchase requisition. The Budget
Division will review/approve the purchase requisition and convert the requisition to a Purchase Order. The
Munis system will route the requisition to additionalstaffwho are required to approve the requisition prior
to conversion to purchase order.
FORMAL/SEALED BIDS
Material/supply purchases exceeding S20,000 must be awarded by a resolution of the City Council. The formal
bid process is governed by section 3.20.100 of the Lodi Municipal Code.
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City of Lodi
Purchasing Policy Council Adoption: August t9,2020
Formal bidding shall be used to assure all possible vendors are given the opportunity to bid on major City
purchases, thereby assuring the City that it has received the most competitive price. The formal process
generally takes more time and expense than informal bidding.
Bid Packaee: The initiating department shall prepare a bid form including detailed specifications for the item
to be purchased. The following format is suggested for competitive bids:
L Submission of Bids - lnclude date, time, and location of bid opening. lnclude a detailed list of the
information the bid or proposal should contain. The public notice shall state that bids are to be
received by the Budget Manager no later than the advertised bid opening time.
2. Questions - List the name, address, and telephone number of the person to be contacted concerning
questions about the project.
3. Background - Provide as much background as necessary to give the bidder an understanding of the
environment in which the job will be performed and to which the job relates.
4. Scope of work - Describe in detail the requirements for the job and detail specifications.
5. Desired project schedule - be as specific as possible.
6. Minimum and desirable qualifications - Be as specific as possible.
7. Performance Bond -Whether a performance bond is required and if so, the amount and form of
bidders security.
Notice invitine Bids: The initiating department shall also prepare a not¡ce inviting bids that includes the
following:
1. A general description of the item to be purchased.
2. A statement indicating where bid package, specifications and bonding requirements can be obtained.
3. A statement specifying the date, time and place for the opening of the bid.
Bid Openins:
L, Sealed paper bids shall be submitted to the Budget Manager.
2. Paper bids shall be opened publicly in the presence of one or more witnesses at the time and place
designated in the lnvitation to Bid.
3. Any bid received after the time specified in the notice shall be rejected.
4. When bidder's security is required, it will be announced in the public notice inviting bids. The amount
shall be determined at the time of preparation of the bid. lt shall be in the form of cash, certified or
cashier's check, or bid bond made payable to the City of Lodi. When a bidde/s security is required, a
bid shall not be considered unless one of the aforementioned forms of security accompanies the bid.
Reiection of Bids: The City reserves the right to reject any and all bids, to accept or reject any one or more
items of a bid, or to waive any irregularities or informalities in the bids or the bidding process if to do so is
deemed to best serve the interest of the City.
Determinins Lowest Resoonsible Bidder: Award to bid shall be to the lowest responsive and responsible
bidder. The City reserves the right to accept that bid which is in the best interest of the City. When selecting
the recommended bidder the Department/Division will take into consideration:
1. Price
2. Ability, capacity, and skill, warranty
3. Ability to meet time requ¡rements
4. Character, integrity, and reputation
5. Previous vendor experience
6. Financial resources available for contract performance
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City of Lodi
Purchasing Policy Council Adoption: August L9,2020
7. Ability to provide future maintenance and service, if necessary
Awardine the Bid: Once the bids have been evaluated, the Department/Division shall prepare an agenda
report to Council recommending the most responsive and responsible bidder. The Council shall then award
the bid in a public meeting.
Purchase Order: A purchase requisition detailing the vendor name, address, item being purchased, total price
including tax and shipping, and budget account to be charged shall be prepared in the MUNIS Financial System.
A copy of the b¡d/b¡d summary shall be attached to the purchase requisition. The Budget Division will
review/approve the purchase requisition and convert the requisition to a Purchase Order. The Munis system
will route the requisition to additional staff who are required to approve the requisition prior to conversion
to purchase order.
Chanse Orders: Change orders to purchases orders are allowable up to $20,000 in aggregate purchase.
Change orders exceeding a $20,000 aggregate purchase must be brought to City Council for approval. Change
orders are entered into the Munis system by the requesting department/division. The Munis system will route
the change order to additíonal staff who are required to approve the requisítion prior to being added to the
purchase order. Once the change order has been made, the department/division must submit the updated
order to the vendor.
Restrictions: Any purchase of supplies, materials, equipment or services contrary to the city's Purchasing
System Ordinance:
o Such purchases are void and not considered an obligation of the City.
r lnvoices may be returned to the contractor/service provider unpaid.
o The department director of the department ordering the unauthorized purchase may be held
personally liable for the costs of the purchase or contract (LMC 3.20.140)
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City of Lodi
Purchasing Policy Council Adoption: August t9,2020
Section lll
PROFESSIONAL SERVICES
PURPOSE
Provide guidelines for the purchase of professional services. Professional services are those activ¡ties
performed by a consultant or firm who possesses a high degree of expertise in a particular profession. This
would generally include (but not be limited to) architectural, landscape architectural, engineering,
environmental, land surveying, construction project management, accounting/auditing, financial, legal, and
other administrative services.
INFORMAL REQUEST FOR PROPOSAL OR REQUEST FOR QUALIFICATIONS
Professional service contracts exceeding 520,000 must be awarded by resolution of the City Council.
An informal Request for Proposal (RFP) or a Request for Qualifications (RFQ) process shall be used for any
solicitation under 520,000, except those service exempted from bidding per Section I - General; Except¡on to
Bidding. These professional service agreements shall have sufficient documentation of background analysis
to support the contract. lnformal solicitations should be used to assure quality services are received for a
reasonable price.
The Department/Division shall strive, whenever possible, to solicit at least three qualifications/proposals in
writing. lt is important that the specifications are accurate and comprehensive.
Documentation:
lnformal quotations must be documented to the satisfact¡on of the Budget Division. Documents should
include:
1. The name of the company.
2. The person giving the quote.
3. The date and time the quotes were received.
4. Understanding of the required scope of services.
5. Specialized experience of the firm and its personnel relative to the required services.
6. References who can be contacted to verify past record of performance, i.e., completion of quality
product, in a timely manner, and within budget constraints.
7. The capacity of the firm to perform the subject project within a required timeframe.
8. Estimated price.
Evaluatins lnformal RFP/RFQ:
The Department/Division Head or designee(s) shall select the consultant which, in their evaluation process, is
the most qualified to perform the work. The evaluation and selection process shall be based upon the
following considerations:
t. General quality and responsiveness to the request, including but not limited to:
o Responsiveness to the terms, conditions, and items of performance;
. Grasp of the problem, work to be performed, and approach to be used
2. Organization and personnel makingthe proposal;
o Evidence of good organizational management practices.
o Qualification of the personnel.
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City of Lodi
Purchasing Policy Council Adoption: August 19, 2O2O
r Specialized experience of the firm and its personnel relative to the required services.r References who can be contacted to veriñ7 past record of performance (i.e., completion of a
quality product in a timely manner and within budget constraints).
o Previous consultant experience.
o The final condition of the firm.
o Capacity of the firm to perform the subject project within a required timeframe.
3. lf appropriate, the price, in any of the following formats, may be considered.r Total price and price breakdown.
o Price range.
o Cost schedule.
Negotiation:
The Department Head or designee(s) shall discuss with the highest ranked firm(s) the requirements of the
project, the scope of services needed to meet the requirements, and negotiate a reasonable fee/contract for
the established work assignment.
Contract Procedure:
The City Clerk's office has prepared instructions and routing procedures for the contract process. These
documents, including a fillabfe Contract Rout¡ng Slip, can be found on the City Clerk's intranet page. The
Contract Routing Slip will guide the user of the needed items and timeline for any contracts needing Council
authorization. Follow the guidelines set forth in the Contract Routing Slip. Below are items the departments
must include in the routing of their contracts.
o A Professional Services Agreement (PSA) or miscellaneous contract shall be prepared detailing the
consultant's name, service being purchased, and total price of the service being purchased. Exhibits
to the contract may include the scope of services, fee proposal, insurance requirements, and
insurance certificate with any required endorsements. Do not make any revisions/additions to the
standard PSA without written approval of the City Attorney's office. Three copies of the pSA or
contract are to be included in the routing package. Departments are to obtain the signature of the
vendor prior to routing.
o The issuing Department/Divisíon will obtain a completed IRS form W-9 from the vendor.r Proof of insurance in accordance with the contract shall be obtained. This includes an insurance
certificate and any additional ensured endorsement. An insurance matrix and additional insurance
requirements can be found on the Risk Management section of the city's intranet site. The city uses
PINS Advantage to acquire vendor insurance certificates. Contact the Risk Manager's office for access
to thís online system.
o lf the vendor is located in, or performs services within city limits or if vendor delivers products in
company owned vehicles, a Business License is required.
o One original copy of the executed contract shall be returned to the vendor, the issuing Department
shall keep the second copy and the third copy shall remain in the City Clerk's Office.o The Department submits a copy of the contract to Accounts Payable for entry into the contracts
module of the Munis system. The contract will be entered as either a "not to exceed" amount or an
encumbered contract.
o A "not to exceed" contract uses the budget controls set up on the account number used
in Munis and no encumbrance is made. The contract expires upon the date specified in
the contract orwhen the "notto exceed" value has been reached. Extendingthe contract
would require an addendum to the contract.
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City of Lodi
Purchasing Policy Council Adoption: August t9, 2020
o An encumbered contract must have available budget to be encumbered. Capital project
contracts must be encumbered.
Renewals:
Contracts for ongoing services may include annual renewal provisions for up to four additional years if
specified in the contract. However, all contracts that exceed 520,000 in overall contract costs must be
approved by resolution of the City Council.
Change Orders:
The City Manager is authorized to issue change orders for changes or additions to the original purchase that
result in no more than a S20,O0O aggregate cost. Change orders in excess of the 520,000 aggregate change in
purchase price shall be brought to the C¡ty Council for approval. For purchases over 520,000, staff may include
a change order provision in the original award brought before City Council. Change orders in excess of any
City Council authorized amounts will require additional City Council approval.
FORMAL REQUEST FOR PROPOSAL OR REQUEST FOR QUALIFICATIONS
Professional service contracts exceeding S20,000 must be awarded by the City Council.
A Formal sealed Request for Proposal (RFP) or a Request for Qualifications (RFQ) process shall be used, for
any solicitation exceeding 520,000, thereby assuring the City that it has engaged the most qualified consultant
available for the engagement. The formal solicitation process generally takes more time and expense than
informal solicitations of qualifications.
The Formal Request for Proposal or Request for Qualifications shall include
Developins the RFP or RFQ:
Because RFP's and RFQ s ask for a subjective product, they should contain the greatest detail possible, and
may include the following:
A precise description of the problem or objective
The services to be performed
The product to be provided
The anticipated time schedule for:
o submittal of RFP/RFQ (date and time)
. Any pre-proposal conference (date, time and location)
r Review and evaluation of the proposals
o Award of the contract
r Commencement of the work on the project
¡ Completion date
Evaluation factors and the relative impoftance of each
Expectations or limitations on the part of the City
o The format, form and quantity of any expected reports
o The extent/nature of assistance/cooperation available from the City
Expected content ofthe RFP/RFQ, including:
¡ The overall description of techniques to be used
¡ ListinB of similar services provided to other clients
t.
2.
3.
4.
5
6
7
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City of Lodi
Purchasing Policy Council Adoption: August t9, 2020
¡ ListinB of available references to contact
o Description and qualifications of assigned lead and supporting personnel
¡ Time and staff expected to be expended
¡ Facilities and equipment to be used
o Portion of contract to be performed by sub-contractors
o Subcontractors / Sub consultants qualifications
o Cost, in summary and total, and desired method of payment. The RFP/RFQfor services may, but is not
required to; state the amount budgeted for the service.
8. Contractual requirements including, but not limited to:
o Prohibition against assignment
o lndemnification
o lnsurancerequirements
o Warranties
o Compliance with federal, state and City laws, rules and regulations
o Compliance with any grant related regulations
o Sample contract
lssuine the RFP/RFQ:
1. To ensure maximum exposure and competition, the issuing department shall prepare and submit the
RFP/RFQ documents to the City's online bid system
2. A reasonable length of time between solicitations and closing dates must be allowed to provide
potential respondents time for preparation in accordance with the complexity, the size of the project,
and the scope ofthe advertising.
3. City staff may conduct conferences to explain the requirements of the project. A sufficient amount of
time should be allowed after the RFP/RFQ has been issued to allow potential respondents to become
familiar with the project. Any clarification or changes required to the RFP/RFQ, as a result of the
conference, shall be added as a written amendment. A summary of the conference shall be provided
to all prospective respondents receiving the request.
4. Amendments should be used to make any changes in quantities descriptions, schedules, or to correct
defects or ambiguities in the original RFP/RFQ. Amendments are provided to ensure that all potential
respondents are furnished with the same information with which to prepare proposals. Amendments
to the RFP/RFQshall be identified as such and shall require acknowledgment as such by firms receiving
the RFP/RFQwithin a reasonable time period before the closing date. lf the time and date established
for the receipt of proposals does not allow sufficient time for consideration and changes, the time and
date will be modified by amendment.
Proposal Opening:
L. Proposals shall be submitted to the Budget Manager and shall be clearly identified with the Proposal
on the envelope.
2. Any proposal received after the time specified in the RFP/RFQ shall be returned unopened.
3. Respondents may modify or withdraw their proposals prior to the established closing date and time,
without penalty. However, any modifications submitted after the established closing date and time
will not be accepted. Such modifications will be returned to the respondent, unopened.
4. Proposals and modifications shall be shown only to the evaluation committee personnel, the City
Clerk or his/her designee, the Department Head and the Budget Manager until a recommendation
is made to Council or all proposals have been rejected.
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City of Lodi
Purchasing Policy Council Adoption: August 19, 2O2O
Reiection of Proposa ls:
The City reserves the right to reject any and all proposals, to accept or reject any one or more items of a
proposal, or to waive any irregularities or informalities in the proposal or the RFP/RFQ process if to do so is
deemed to best serve the interests of the City.
Evaluation Factors and Method:
L. Because unique services are requested, cost is not considered the primary selection criteria.
r General quality and responsiveness of the proposal, including but not limited to:
o Responsiveness to the terms, conditions, and items of performance;
o Completeness and thoroughness of the proposal;
o Grasp of the problem, work to be performed, and approach to be used.
o Organization and personnel makingthe proposal:
o Evidence of good organizational and management practices.
o Qualification of the personnel.
o Specialized experience of the firm and its personnel relative to the required services.
o References who can be contacted to verify past record of performance, i.e., completion of
a quality product, in a timely manner, and within budget constraints.
o The financial condition of the firm.
o Capacity of the firm to perform the subject project within a required time frame
o lf appropriate, the price, in any of the following formats, may be considered.
o Total price and price breakdown.
o Price range.
o Cost schedule.
2. A Selection Committee shall be formed to evaluate the submitted data and determine the consultants
that should receive further consideration. The Committee shall be appointed by the issuing
department and may consist of more than one department.
3. The Selection Committee may choose to interview all of the responding consultants, only the top few
ranking consultants or to not perform interviews.
4. After the interviews (if applicable), the Selection Committee shall rank the consultants based on their
proposals, interviews, and references.
On-Call (Oneoing) Professional Services:
1. ln some instances it is in the best interest of the City to have on-call contracts with multiple
consultants for the same or very similar services (i.e. services that can be defined as to scope of work
but not as to required events such as soils test¡ng, contract building inspection services, architectural
services, etc.) These services would best be handled by establishing an eligibility list and by entering
into annual on-call processional service contracts.
2. The process for selecting firms for annual ongoing professional service contracts shall be generally the
same as for other professional services contracts. However, multiple firms may be awarded an on-call
contract based on the RFP/RFQ process and may be placed on the eligibility list. Additional
firms/individuals may also be awarded contracts and placed on the eligibility list at a later date, using
the RFP/RFQ process without impacting contracts currently in place.
3. As events occur and need arises, work may be assigned to the consultants on the eligibility list. The
Department Head shall make a reasonable attempt to rotate work between consultants subject to
availability and special needs or by soliciting proposals from the consultants on the eligibility list.
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City of Lodi
Purchasing Policy Council Adoption: August L9, 2O2O
Nesotiation:
The Department Head or designee(s) shall discuss with the highest ranked firm(s) the requirements of the
project, the scope of services needed to meet the requirements, and negotiate a reasonable fee/contract for
the established work assignment.
Awarding the Contract:
The Department Head/Division Head shall prepare an agenda report to City Council recommending the most
responsive consultant. The Council shall then award the contract in a public meeting. All contracts exceeding
520,000 must be awarded by resolution of the City Council. Otherwise:
o 1. Such purchases are void and not considered an obligation of the City.
o lnvoices may be returned to the contractor/service provider unpaid.
o The department director of the department ordering the unauthorized purchase may be held
personally liable for the costs of the purchase or contract (LMC 3.20.140)
Contract Procedure:
The City Clerk's office has prepared ¡nstructions and routing procedures for the contract process. These
documents, including a fillable Contract Routing Slip, can be found on the City Clerk's intranet page. The
Contract Routing Slip will guide the user of the needed items and timeline for any contracts needing Council
authorization. Follow the guidelines set forth in the Contract Routing Slip. Below are items the departments
must include in the routing of their contracts.
o A Professional Services Agreement (PSA) or miscellaneous contract shall be prepared detailing the
consultant's name, service being purchased, and total price of the service being purchased. Exhibits
to the contract may include the scope of services, fee proposal, insurance requirements, and
insurance certificate with any required endorsements. Do not make any revisions/additions to the
standard PSA without written approval of the City Attorney's office. Three copies of the PSA or
contract are to be included in the routing package. Departments are to obtain the signature of the
vendor prior to routing.
o The issuing Department/Division will obtain a completed IRS form W-9 from the vendor.
o Proof of insurance in accordance with the contract shall be obtained. This includes an insurance
certificate and any additional ensured endorsement. An ¡nsurance matrix and additional insurance
requirements can be found on the Risk Management section of the city's intranet site. The city uses
PINS Advantage to acquire vendor insurance certificates. Contact the Risk Manager's office for access
to this online system.
o lf the vendor is located in, or performs services within city limits or if vendor delivers products in
company owned vehicles, a Business License is required.
o One original copy of the executed contract shall be returned to the vendor, the issuing Department
shall keep the second copy and the third copy shall remain in the City Clerk's Office.
o The Department submits a copy of the contract to Accounts Payable for entry into the contracts
module of the Munis system. The contract will be entered as e¡ther a "not to exceed" amount or an
encumbered contract.
o A "not to exceed" contract uses the budget controls set up on the account number used
in Munis and no encumbrance is made. The contract expires upon the date specified in
the contract or when the "not to exceed" value has been reached. Extending the contract
would require an addendum to the contract.
o An encumbered contract must have available budget to be encumbered. Capital project
contracts must be encumbered.
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City of Lodi
Purchasing Policy Council Adoption: August t9,2020
Renewals:
Contracts for ongoing services may include annual renewal provisions for up to four additional years.
However, all contracts that exceed $20,000 in overall contract amount must be approved by the City Council.
Chanse Orders:
The City Manager is authorized to issue change orders for changes or additions to the original purchase that
result in less than 520,000 aggregate change in purchase price. Change orders in excess of the $20,000
aggregate change in purchase price shall be brought to the City Council for approval. For purchases over
520,000, staff may include a change order provision in the original award brought before City Council. Change
orders in excess of any City Council authorized amounts will require additional City Council approval
15
City of Lodi
Purchasing Policy Council Adoption: August t9,2020
Section lV
Purchases with Federal Grant Funds
The following section is being added to the Purchasing Policy to establish standards for the procurement of
supplies, equipment, real property and other services as required by 2 CFR 200.318 through 200.326 to comply
with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
commonly called "Uniform Guidance".
When using federal grant funds, follow applicable state statutes and rules and local policies only to the
extent that those statutes, rules, and policies do not conflict with the Uniform Administrative Requirements
(UAR}outlined below. 2 CFR 200.318(a)
Contract performance and payments must be monitored during the course of the contract. 2 CFR
200.318(b).
Wr¡tten standards of conduct and Conflict of lnterest:
No employee, officer, or agent may participate in the selection, award, or administration of a contract
supported by a federal award if he or she [the employee, officer, or agent], any member of his or her
immediate family, his or her partner, or an organization which employs or is about to employo the employee, officer, or agent;
. an immediate family member of the employee, officer, or agent; or
o the partner of the employee, officer, or agent has a financial or other interest in or will receive a
tangible personal benefit from a firm considered for the contract. Officers, employees, and agents
must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or
parries to subcontracts. 2 cFR 200.318(c)(1)
Before start¡ng a procurement process:
Review all proposed procurements to avoid unnecessary/duplicative purchases of equipment, supplies, and
services. Consider whether it will it save money/t¡me to consolidate procurements; if so, consolidate. lf
relevant, consider whether a lease or a purchase is the most economical approach (and document how you
came to your decision). 2 CFR 200.318(d).
Look for state or local intergovernmental agreements (such as competitive bidding group purchasing
programs, state term contracts, GSA contracts, or formal intergovernmental agreements-but get awarding
agency approval before using one ofthose agreements. 2 CFR 200.318(e).
Purchasing Guidelines
Documentation:
Keep records showing:
o Basis for vendor selection;
o Documentation of lack of competition when competitive bids or offers are not obtained;. Why you chose a specific procurement method;
o The basis for your award (why did you select the contractor or vendor you selected? Why did you
reject the others?)
o The basis for the contract price; and
. Any other significant decisions that were a part of the procurement process.
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City of Lodi
Purchasing Policy Council Adoption: August t9, 2020
Award only to "responsible contractors possessing the ability to perform successfully under the terms and
conditions of a proposed procurement." ln determining which contractors are responsible, you must consider
"matters such as contractor integrity, compliance with public policy, record of past performance, and financial
and technical resources." 2 CFR 200.318(h). (Note: This means that your solicitation documents must ask for
information that will allow you to assess whether a contractor is "responsible.")
Keep records to detail the history of each procurement. These records must include, at least, records
showing your rationale for (1) the method of procurement, (2) the selection of contract type, (3) contractor
selection or rejection, and (4) the basis for the contract price. 2 CFR 200.318(i)
Prohibit awarding t¡me and materials type contracts unless (1) you have determined that no other contract
is suitable and (2) the contract includes a ceiling price that the contractor exceeds at its own risk. The UAR
defines a time and materials type contract as "a contract whose cost to a non-Federal entity is the sum of: (1)
the actual cost of materials; and (2) direct labor hours charged at fixed hourly rates that reflect wages, general
and administrative expenses, and profit." 2 CFR 200.318(j). For the purposes of this policy, the term "non-
Federal Entity" means the City of Lodi.
Restricting compet¡t¡on. The following actions on procurements funded with federal grants are prohibited:
o Allowing contractors that develop or draft specifications, requirements, statements of work,
invitations for bids, or requests for proposals to compete for such procurements;
o Placing unreasonable requirements on firms for them to qualify to do business (if you're not sure if a
requirement is unreasonable, ask the Federal awarding agency);
o Requiring unnecessary experience or excessive bonding;
o Permitting noncompetitive pricing practices between companies;
o Awarding contracts to consultants on "retaine/' contracts; Permitting organizational conflicts of
interest;
o Specifying a brand name product without permitting an equal product to be offered, and without
describing the performance requirements that must be met for a product to qualify as an equal;
o Acting arbitrarily in awarding contracts. 2 CFR 200.319(a).
Prohibit awards based on local geographic preferences, except where applicable Federal statutes expressly
mandate or encourage geographic preference. However, geographic location may be a selection criteria
when awarding contracts for architectural or engineering services, provided that using such criteria "leaves
an appropriate number of qualified firms" to compete for the work, "given the nature and size of the project."
2 CFR 200.3ls(b).
All solicitations must identify (1) all requirements which the offerors must fulfill and (2) all other factors to
be used in evaluating bids or proposals. 2 CFR 200.319(c)
lf you use prequalified lists of ent¡t¡es or products when procuring goods or services, make sure those lists
are "current and include enough qualified sources to ensure maximum open and free competition," and do
not preclude other potent¡al ent¡t¡es or products from participat¡ng in the solicitation. 2 CFR 200.319(d).
L7
City of Lodi
Purchasing Policy Council Adoption: August 19, 2020
Methods of Procurement to be Followed
Procurement by sealed bids require formal advert¡s¡ng. Bids are publicly solicited (Post to the online bid
not¡f¡cat¡on system) and a firm fixed price contract (lump sum or unit price) is awarded to the responsible
bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the
lowest in price. The sealed bid method is the preferred method for procuring construct¡on.
ln order for sealed bidding to be feasible, the following conditions should be present:
o A complete, adequate, and realistic specification or purchase description is available;
r Two or more responsible bidders are willing and able to compete effectively for the business; and
o The procurement lends itself to a firm fixed price contract and the selection of the successful bidder
can be made principally on the basis of price.
lf sealed bids are used, the following requirements apply:
o The invitation for bids must be publicly advertised, providing suppliers sufficient response time prior
to the date set for opening the bids;
o The invitation for bids, which will include any specifications and pertinent attachments, must define
the items or services in order for the bidder to properly respond;
o The bids must be opened publicly at the time and place prescribed in the invitation for bids;
o A firm fixed price contract award will be made in writing to the lowest responsive and responsible
bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life
cycle costs must be considered in determining which bid is lowest. Payment discounts will only be
used to determine the low bid when prior experience indicates that such discounts are usually taken
advantage of; and
. Any or all bids may be rejected if there is a sound documented reason. 2 CFR 200.320(c)
Procurement by competitive proposals. The technique of competitive proposals is normally conducted with
more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract ¡s
awarded. lt is generally used when conditions are not appropriate for the use of sealed bids. lf this method
is used, the following requirements apply:
. Requests for proposals must be publicized and identify all evaluation factors and their relative
importance. Any response to publicized requests for proposals must be considered to the maximum
extent practical;
o Proposals must be solicited from an adequate number of qualified sources;
o The non-Federal entity must have a written method for conducting technical evaluations of the
proposals received and for selecting recipients;
o Contracts must be awarded to the responsible firm whose proposal is most advantageous to the
program, with pr¡ce and other factors considered; and
o The non-Federal entity may use competitive proposal procedures for qualifications-based
procurement of architectural/engineering (A/E) professional services whereby competitors'
qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of
fair and reasonable compensation. The method, where price is not used as a selection factor, can only
be used in procurement of A/E professional services. lt cannot be used to purchase other types of
services though A/E firms are a potential source to perform the proposed effort. 2 CFR 200.320(d)
Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one
source and may be used only when one or more of the following circumstances apply:
o The item is available only from a single source;
o The public exigency or emergency for the requirement will not permit a delay resulting from
com petitive solicitation;
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City of Lodi
Purchasing Policy Council Adoption: August 79,2020
The Federal awarding agency expressly authorizes noncompetitive proposals in response to a written
request from the non-Federal entity; or
After solicitation of a number of sources, competition is determined inadequate. 2 CFR 200.320(f)
Take certain steps to assure that minority firms and women's business enterprises are used when possible.
These steps are:
o Place qualified small and minority businesses and women's business enterprises on solicitation lists;
o Assure that small and minority businesses and women's business enterprises are solicited whenever
they are potential sources;
o Divide total requirements into smaller tasks or quantities to permit maximum participation by small
and minority businesses and women's business enterprises;
r Establish delivery schedules which encourage participation by small and minority businesses and
women's business enterprises;
¡ Use the services and assistance of the Small Business Administration (www.sba.gov) and the Minority
Business Development Agency of the Department of Commerce (www.mbda.gov); and
o Require prime contractors to take the same steps listed above. 2 CFR 2OO32L
Contract Cost and Price
Perform a cost or price analysis in connection with every procurement act¡on in excess of the Simplified
Acquisition Threshold ($150,0001, including contract modifications. Make the lndependent Cost Estimates
(lCE) before receiving bids or proposals. 2 CFR 200.323(a)
Negotiate profit as a separate element of the price (11 for each contract in which there is no price
compet¡t¡on and (2) in all cases where cost analysis is performed. 2 CFR 200.323(b)
A prohibition on using "cost plus a percentage of cost" or "percentage of construct¡on cost" methods of
contract¡ng. 2 CFR 200.323(d)
Federal Awarding Asencv Review
The non-Federal entity must make available, upon request of the Federal awarding agency or pass-through
entity, technical specifications on proposed procurements where the Federal awarding agency believes such
review is needed to ensure that the item or service specified is the one being proposed for acquisition. This
review generally will take place prior to the time the specification is incorporated into a solicitation document.
However, if the non-Federal entity desires to have the review accomplished after a solicitation has been
developed, the Federal awarding agency may still review the specifications, with such review usually limited
to the technical aspects ofthe proposed purchase. 2 CFR 2OO32aþl
The non-Federal entity must make available upon request, for the Federal awarding agency pre-procurement
review, procurement documents, such as requests for proposals or invitations for bids, or independent cost
estimates, when:
o The non-Federal entity's procurement procedures or operation fails to comply with the procurement
standards in this part;
o The procurement is expected to exceed the Simplified Acquisition Threshold (5150,000) and is to be
awarded without competition or only one bid or offer is received in response to a solicitation;
a
a
19
City of Lodi
Purchasing Policy Council Adoption: August L9,2020
The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a "brand
name" product;
The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other
than the apparent low bidder under a sealed bid procurement; or
A proposed contract modification changes the scope of a contract or increases the contract amount
by more than the Simplified Acquisition Threshold. 2 CFR 200.324(b)
The non-Federal entity is exempt from the pre-procurement review in the above paragraph if the Federal
awarding agency determines that its procurement systems comply with the standards of this part.
o The non-Federal entity may request that its procurement system be reviewed by the Federal awarding
agency to determine whether its system meets these standards in order for its system to be certified.
Generally, these reviews must occur where there is continuous high-dollar funding, and third party
contracts are awarded on a regular basis;
o The non-Federal entity may self-certify its procurement system. Such self-certification must not limit
the Federal awarding agency's right to survey the system. Under a self-certification procedure, the
Federal awarding agency may rely on written assurances from the non-Federal entity that it is
complying with these standards. The non-Federal entity must cite specific policies, procedures,
regulations, or standards as being in compliance with these requ¡rements and have ¡ts system
available for review. 2 CFR 200.32a(c)
Bonding Requirements
For construction or facility improvement contracts or sub contracts exceeding the Simplified Acquisition
Threshold, the Federal awarding agency may accept the bonding policy and requirements of the agency
provided that the Federal awarding agency has made a determination that the Federal interest is adequately
protected. lf such a determination has not been made, the minimum requirements must be as follows:o A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee"
must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument
accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such
contractual documents as may be required within the time specified. 2CFR 200.325(a);o A performance bond on the part of the contractor for 100 percent of the contract price. A
"performance bond" is one executed in connection with a contract to secure fulfillment of all the
contractor's obligations under such contract. 2CFR 200.325(b);
. A payment bond on the part of the contractor for 100 percent of the contract price. A "payment
bond" is one executed in connection with a contract to assure payment as required by law of all
persons supplying labor and material in the execution of the work provided for in the contract. 2CFR
200.325(c).
Contracting Provisions
Appendix ll to Part 200 - Contract Provisions for Non-Federal Entity Contracts Under Federal Awards
ln addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by
the non-Federal entity under the Federal award must contain provisions covering the following, as
applicable.
(A)Remedies: Contracts for more than the simplified acquisition threshold currently set ats15O,OOO,
which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the
Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address
a
a
a
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City of Lodi
Purchasing Policy Council Adoption: August 19,2020
administrative, contractual, or legal remedies in instances where contractors violate or breach contract
terms, and provide for such sanctions and penalties as appropriate.
(B)Termination: All contracts in excess of $10,000 must address termination for cause and for
convenience by the non-Federal entity including the manner by which it will be effected and the basis for
settlement.
(C)Equal Employment Opportunity: Except as otherwise provided under4l CFR Part60, all contracts that
meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the
equal opportunity clause provided under4l CFR 60-1.4(b), in accordance with Executive Order LL246,
"Equal Employment Opportunity" (30 FR12319, !2935,3 CFR Part,1964-1965 comp., p. 33g), as amended
by Executive Order 11375, '?mending Executive Order Lt246Relating to Equal Employment Opportunity,"
and implementing regulations at41 CFR part 60, "Office of Federal Contract Compliance programs, Equal
Em ployment Opportunity, Depa rtment of La bor."
(D)Davis-Bacon Act, as amended: (40U.S.C. 3141-3148).When required by Federal program legislation, all
prime construction contracts in excess of $2,000 awarded by non-Federalentities must include a provision
for compliance with the Davis-Bacon Act (40U.S.C. 3L4t-3t441as supplemented by Department of Labor
regulations (29 CFR Part 5,"Labor Standards Provisions Applicable to Contracts Covering Federally
Financed and Assisted Construction"). ln accordance with the statute, contractors must be required to
pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor. ln addition, contractors must be required to pay wages
not less than once a week. The non-Federal entity must place a copy of the current prevailing wage
determination issued by the Department of Labor in each solicitation. The decision to award a contractor
subcontract must be conditioned upon the acceptance of the wage determination. The non-Federalentity
must report all suspected or reported violations to the Federal awarding agency. The contracts must also
include a provision for compliance with the Copeland "Anti-Kickback" Act: (40 U.S.C. 3145),a s
supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and Subcontractors on
Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States").
The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means,
any person employed in the construction, completion, or repair of public work, to give up any part of the
compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected
or reported violations to the Federal awarding agency.
(E) Contract Work Hours and Safety Standards Act: (40 U.S.C. 3701- 3708). Where applicable, all contracts
awarded by the non-Federal entity in excess of S1OO,00O that involve the employment of mechanics or
laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by
Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must
be required to compute the wages of every mechanic and laborer on the basis of a standard work week
of 40 hours. Work in excess of the standard work week is permissible provided that the worker is
compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in
excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction
work and provide that no laborer or mechanic must be required to work in surroundings or under working
conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the
purchases of supplies or materials or articles ordinarily available on the open market, or contracts for
tra nsportation or tra nsm ission of intelligence.
(F) Rights to lnvent¡ons Made Under a Contract or Agreement: lf the Federal award meets the definition
of "funding agreement" under 37 CFR 5 401.2 (a) and the recipient or subrecipient w¡shes to enter into a
contract with a small business firm or nonprofit organization regarding the substitution of parties,
assignment or performance of experimental, developmental, or research work under that "funding
2L
City of Lodi
Purchasing Policy Council Adoption: August 19,2020
agreement," the recipient or subrecipient must comply with the requirements of 37 CFR Part 40L, "Rights
to lnventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants,
Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding
aSency.
(Gl Clean Air Act: (42 U.S.C. 74Ot- 767Lq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-
1387), as amended - Contracts and subgrants of amounts in excess of S150,000 must contain a provision
that requires the non-Federal award to agree to comply with all applicable standards, orders or
regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401- 767Lql and the Federal Water Pollution
Control Act as amended (33 U.S.C. t25L- L3871. Violations must be reported to the Federal awarding
agency and the Regional Office of the Environmental Protection Agency (EPA).
(H) Debarment and Suspension: (Executive Orders L2549 and L2689) - Verify that a vendor is not
debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance
programs or activities. Confirm and document that vendors are not on the federalgovernment's Excluded
Party list found at www.sam.gov.
(l) Byrd Anti-Lobbying Amendment: (31 U.S.C. 1352) - Contractors that apply or bid for an award
exceeding S100,000 must file the required certification. Each tier certifies to the tier above that it will not
use, and has not used, Federal appropriated funds to pay any person or organization for influencing or
attempting to influence an officer or employee of any agency, a member of Congress, officer or employee
of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract,
grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-
Federaf funds that takes place in connection with obtaining any Federal award. Such disclosures are
forwarded from tier to tier, up to the non-Federal award.
22