Charter

Section 614. CONTRACTS ON PUBLIC WORKS. Except as hereinafter expressly provided, every contract involving an expenditure as set forth by ordinance of the City Council for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the amount set by ordinance, shall be let to the lowest responsible bidder after notice by publication in accordance with Section 503 by two or more insertions, the first of which shall be at least ten days before the time for opening bids.

The City Council may reject any and all bids presented and may readvertise in its discretion. After rejecting bids, or if no bids are received, or without advertising for bids if the total amount of the contract or project is below the amount set by ordinance, the City Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its own employees, or that the materials or supplies may be purchased at lower price in the open market, and after the adoption of a resolution to this effect by the affirmative vote of a majority of the total members of the City Council, it may proceed to have said work done or such materials or supplies purchased in the manner stated without further observance of the provisions of this section.

All public works contracts exceeding the amount set by ordinance may be let and purchases exceeding the amount set by ordinance may be made without advertising for bids if such work or the purchase of such materials or supplies shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council.

Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies or equipment for any such project or any such utility may be excepted from the requirements of this section by the affirmative vote of a majority of the total members of the City Council.

3.02.070 Methods of procurement.

(a) Small Procurements. Procurements anticipated to cost $30,000 or less in one transaction shall be made using simplified and cost effective operational procedures and forms without use of formal or informal bids. Requirements shall not be artificially divided so as to constitute a small purchase under this subsection. (3510-10/01)

(b) Formal Competitive Bids. Procurements anticipated to cost more than $30,000 in one transaction shall be made by issuance of written invitations for bids. Bid documents include, at a minimum; instructions to bidders; specifications describing the required goods and/or services; bid forms and schedules; any required bond forms and proposed contract terms and conditions. The circumstances may require that a contract award be based on factors in addition to price. (3510-10/01)

(c) Competitive Negotiation. The Purchasing/Central Services Manager may establish, and the bid or proposal documents shall clearly define in a competitive negotiation procurement a two-tiered process in which bids or proposals, as first received, constitute preliminary offers only. Subject to the Purchasing/Central Services Manager’s judgment, the Purchasing/Central Services Manager shall have the authority to enter into negotiations with those persons reasonably likely of being considered for selection for contract award. Following such negotiations, best and final bids or proposals will be accepted by the Purchasing/Central Services Manager. Bidders or proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of bids or proposals. During negotiation, there shall be no disclosure beyond the City staff evaluating the matter of any information derived form bids or proposals submitted by competing bidder or proposers. The contract award shall be made to the bidder or proposer whose bid or proposal offers the best value to the City, taking into consideration price and the evaluation criteria set forth in the bid or proposal documents. (3510-10/01, 3718-08/05)

 Municipal Code

3.02.080 Competitive bidding requirement; exemptions.

(a) Contracts for goods and/or services for which the cost to the City in one transaction will exceed $30,000 shall be let by formal competitive bidding or proposals pursuant to this Chapter. Procurement requirements shall not be artificially divided so as to avoid the competitive bidding requirement. (3510-10/01)

(b) The following are exemptions to the competitive bidding requirements: (3510-10/01)

(1)       Professional or specialized services, as defined by this Chapter; (3510-10/01)

(2)       Emergency procurements, as defined by this Chapter; (3510-10/01)

(3)       Situations where solicitations of bids or proposals would for any reason be impractical, unavailing or impossible; (3510-10/01)

(4)       Sole source goods or services; (3510-10/01)

(5)       Insurance and bonds; (3510-10/01)

(6)       Public library collection materials or services for the provision of public library collection materials or other books or periodicals; (3510-10/01)

(7)       Procurements funded by grants, donations or gifts when the special conditions attached to the grants, donations or gifts require the procurement of particular goods and/or services; (3510-10/01)

(8)       Huntington Beach Municipal Code Chapter 3.02 Page 6 of 11 6/15/11

(9)       Goods and/or services obtained from or through agreement with any governmental, public or quasi-public entity; (3510-10/01)

(10)    Works of art, entertainment or performance; (3510-10/01)

(11)    Surplus personal property owned by another governmental, public or quasi-public entity; (3510-10/01)

(12)    Membership dues, conventions, training, and travel arrangements; (3510-10/01)

(13)    Advertisements in magazines, newspapers, or other media; (3510-10/01)

(14)    Goods procured from resale to the public; or (3510-10/01)

(15)    Where Competitive bids or proposals have been solicited and no bid or proposal has been received. In such a situation the Purchasing/Central Services Manager may proceed to have the services performed or the goods procured without further competitive bidding; (3510-10/01, 3718-08/05)

(c) The Purchasing/Central Services Manager shall conduct negotiations, as appropriate, as to price, delivery and terms and may require the submission of cost or pricing data in connection with the award of a contract which does not require competitive bidding. (3510-10/01, 3718-08/05)

(d) Nothing in this section shall preclude the solicitation of competitive bids or proposals, when possible. (3510-10/01)