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Chapter 3.04 - Purchasing Policies

3.04.010 Purchasing Manager
The Director of Finance is authorized to designate a Purchasing Manager on behalf of the city. Purchases made by the Purchasing Manager shall be in accordance with certain policies and procedures as hereinafter set forth in this chapter. (Ord. O-2012-7 § 1, 2012; Ord. O-88-6 § 1, 1988).

3.04.020 Procedures
In enforcing and administering purchasing procedures, the Purchasing Manager shall:
A. Establish and enforce specifications with respect to supplies, materials and equipment required by the city. In developing specifications, the Purchasing Manager shall consult with the various departments concerned in determining the quality of the goods to be purchased;
B. Supervise the inspection of all deliveries of supplies, materials and equipment and determine their quality, quantity and conformity with specifications;
C. Have authorization to transfer between offices, other city departments surplus or unused materials;
D. Procure materials, supplies, and services at the best value to the City. (Ord. O-2012-7 § 1, 2012; Ord. O-88-6 § 2, 1988). 


3.04.030 Competitive bidding and exceptions
A. Before the City makes any purchase, and subject to the provisions hereinafter set forth, there shall be given ample opportunity for competitive bidding subject to such exemptions as the City Council may, upon recommendation of the City Manager, prescribe by ordinance or resolution.
B. The following items are exempted from competitive bidding:
1. Purchases made cooperatively with other units of government such as the State of Colorado, federal, regional, and local governmental cooperative groups utilizing extended awards from other governmental agencies; the City may, when deemed appropriate, extend its awards to other governmental agencies;
2. Services of individuals/firms possessing a high degree of professional skill (such as architectural and engineering services). Departments are encouraged to use a formal selection process whenever practical for all types of professional services;
3. Purchases from federal, state or other local government units;
4. Purchases made through other governmental entities as may be authorized by ordinance or statute;
5. Magazines, books, subscriptions, advertisements, or periodicals;
6 Memberships and conference registrations;
7. Clean-up and disposal of hazardous materials;
8. Items or products purchased by the City for retail sale to the public;
9. Supplies, products, services, or maintenance agreements indispensable to the City which are obtainable, for practical purposes, only from a single or sole source, as identified by the Purchasing Manager using the procedure set out in the Finance Department Procurement Policy. The Purchasing Manager is authorized to negotiate with the single or sole source regarding pricing, delivery, and other relevant factors.  (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 §, 1, 1996; Ord. O-93-4 § 1, 1993; Ord. O-88-6 § 3, 1988). 


3.04.040 Exempted purchases-Approval
Exempted purchases shall require approval in accordance with the authorization limits stated herein. (Ord. O-2012-7 § 1, 2012; Ord. O-88-6 § 4, 1988).

3.04.050 Purchases under fifty thousand dollars
Any purchase costing under fifty thousand dollars ($50,000) shall require approval by the department head or designee. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 2, 1996; Ord. O-93-4 § 2, 1993; Ord. O-88-6 § 5, 1988).

3.04.060 Purchases fifty thousand dollars or over
Any purchase costing fifty thousand dollars ($50,000) or over shall require approval by the department head or designee and the City Manager or designee. Any purchase not containing the signatures of all the required parties shall require approval by City Council.   (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 3, 1996; Ord. O-88-6 § 6, 1988).

3.04.070 Purchases over fifty thousand dollars when a competitive process is not utilized
When a competitive process is not utilized, any purchase costing fifty thousand dollars ($50,000) or more shall require approval by the department head, the City Manager and City Council. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 4, 1996; Ord. O-88-6 § 7, 1988).


3.04.080 Unbudgeted purchases over fifty thousand dollars.
Any unbudgeted purchase, or any purchase with a change in funding source, that is over fifty thousand dollars ($50,000) shall require approval by the City Council. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 5, 1996; Ord. O-88-6 § 8, 1988).

3.04.090 Bid requirements.
A. Whenever possible, the Purchasing Manager or designee shall solicit a minimum of three noted informal written or electronically transmitted quotes on any purchase costing at least five thousand dollars ($5,000) but less than fifty thousand dollars ($50,000). Purchases costing at least five thousand dollars ($5,000) but less than twenty-five thousand dollars ($25,000) may be administered by Department Buyers. Purchases costing at least twenty-five thousand ($25,000) but less than fifty thousand dollars ($50,000) shall be administered by Purchasing personnel.
B. Any purchase costing fifty thousand dollars ($50,000) or more shall require formal written sealed bids unless otherwise exempted herein. Formal sealed bids may, at the discretion of the Purchasing Manager, include multi-step bid procedures, total cost or life cycle cost procedures, or formal competitive proposals as set out in the Procurement Policy. The multi-step process may include pre-qualification of a product, a contractor, or a vendor based on specifications or experience prior to the submission of cost bids. After pre-qualification, only the products, contractors, or vendors that meet the specifications or experience will be permitted to submit cost bids. The total cost or life cycle cost procedure may include analysis of factors such as maintenance costs, salvage value, and availability of parts. Such factors may be considered as part of the cost of the product as well as the actual purchase price. Formal competitive proposals may be used when the cost of a product or service is not the primary selection factor and where it is not possible to directly compare a product or a service to another.
C. Contracts may be renewed by the Purchasing Manager and department head up to four (4) annual times based on satisfactory performance and competitive pricing. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 7, 1996; Ord. O-88-6 § 9, 1988).


3.04.100 Sealed bids upon recommendations of the City Manager.
Notwithstanding any of the provisions above, upon recommendation of the Purchasing Manager, the City Manager may require sealed bids on any purchase costing less than fifty thousand dollars ($50,000). (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 8, 1996; Ord. O-93-4 §§ 3, 4, 1993; Ord. O-88-6 § 10, 1988).

3.04.110 Successful bids.
A. Bids shall be awarded to the lowest responsive, responsible, and qualified bidder as determined by the city. Factors to be considered in evaluating the lowest responsive, responsible, and qualified bidder may include the quality, availability, and delivery of the product, qualifications of the contractor or vendor, and any special requirements relevant to the subject matter of the bid as determined by the Purchasing Manager.
B. The Purchasing Division of the City of Lakewood will solicit Lakewood firms to submit bids to the city through local advertising, or other suitable methods. Where all award factors are equal, a bid will be awarded to the bidder with its principal place of business located in the City of Lakewood. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 9, 1996; Ord. O-88-6 § 11, 1988).


3.04.120 Emergency procedures
Notwithstanding any of the provisions above, when by reason of emergency or immediate public necessity, it is not feasible or practicable to follow the bidding procedures herein set forth or to obtain Council approval, and it is necessary to authorize the purchase of equipment, supplies or services, or emergency repair or maintenance work, without sealed or other bidding procedures, the City Manager or the City Manager’s designee is authorized on behalf of the City Council to grant authority for such purchase of equipment, supplies, or services in the event of emergency or immediate public necessity deemed to exist by the City Manager or the City Manager’s designee. As soon as practical after the purchase, the Director of Finance or the Director of Finance’s designee shall notify City Council of purchases costing more than fifty thousand dollars ($50,000). Wherever possible, the Director of Finance or the Director of Finance’s designee shall solicit the bids for the emergency purposes, and shall make certain that whenever possible the lowest responsive, responsible, and qualified bidder has been selected. (Ord. O-2012-7 § 1, 2012; Ord. O-93-4 § 5, 1993; Ord. O-88-6 § 12, 1988).

3.04.130 Contracts for public improvements
A. Contracts for public improvements shall be let in accordance with City of Lakewood bidding procedures. These contracts are subject to approval in accordance with the authorization limits stated herein.
B. When a contract for public improvements is awarded in excess of fifty thousand dollars ($50,000), the following bonds or security shall be delivered to the city and shall become binding on the parties upon execution of the contract:
1. A performance bond satisfactory to the city, executed by a surety company authorized to do business in the State of Colorado or otherwise secured in a manner satisfactory to the city, in an amount equal to one hundred percent (100%) of the price specified in the contract; and
2. A payment bond satisfactory to the city, executed by a surety company authorized to do business in the State of Colorado or otherwise secured in a manner satisfactory to the city, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to one hundred percent (100%) of the price specified in the contract.
C. Nothing in this section shall be construed to limit the authority of the city to require a performance bond or other security in addition to those bonds or in circumstances other than those specified in subsection (B) of this section.  (Ord. O-2012-7 § 1, 2012; Ord. O-99-44 § 1, 1999; Ord. O-93-4 § 6, 1993; Ord. O-88-6 § 13, 1988).


3.04.140 Execution of contracts
Unless otherwise authorized or directed by City Council, all contracts obligating the city may be executed on behalf of the city by the Mayor or the City Manager, or designee, and attested by the City Clerk, after approval of the form of the contract by the City Attorney.  (Ord. O-2012-7 § 1, 2012; Ord. O-93-4 § 7, 1993; Ord. O-88-6 § 14, 1988).

3.04.150 Debarment and suspension
A. Debarment procedures.
1. After reasonable notice to the person or firm involved and reasonable opportunity for that person to be heard, the Director of Finance or the Purchasing Manager, after consultation with the City Attorney, shall have the authority to debar a person or firm for any reason set forth in subsection (B) of this section from consideration of award of contracts. The period of debarment shall be determined by the Director of Finance or the Purchasing Manager on a case by case basis based upon criteria set forth in the Finance Department Procurement Policy.
2. The Director of Finance or the Purchasing Manager, after consultation with the City Attorney, shall have the authority to debar a person or firm from consideration for award of contracts if there is probable cause to believe such person or firm has engaged in activities that may lead to debarment. The period of debarment shall be determined by the Director of Finance or the Purchasing Manager on a case by case basis based upon criteria set forth in the Finance Department Procurement Policy.
3. Debarment and suspension procedures shall be set out in the Finance Department Procurement Policy.
B. Reason for debarment.
1. Conviction of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract or in the performance of such contract or subcontract;
2. Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, or receiving stolen property;
3. Conviction under state or federal antitrust statutes arising out of the submission of bids or proposals;
4. Failure without good cause to perform in accordance with the terms of any contract or unsatisfactory performance of any contract; or
5. Debarment by another governmental entity for any of the above reasons.
C. Appeal
1. Any person or firm who is debarred may protest to the City Manager.
2. The protest shall be submitted to the City Clerk’s Office in writing within seven (7) working days after notification of debarment.
3. The City Manager shall have the authority to settle and resolve an appeal of a debarment. A written decision regarding the appeal shall be rendered within thirty (30) working days after the appeal is filed. (Ord. O-2012-7 § 1, 2012; Ord. O-88-6 § 15, 1988).


3.04.160 Protested solicitations or awards
A. Any actual or prospective bidder, contractor, or vendor who is aggrieved in connection with the solicitation or award of a contract may protest to the Purchasing Manager, the City Manager, or the City Council as set out in this section. The protest shall be submitted to the City Clerk’s Office in writing within seven (7) working days after such aggrieved person knows or should have known of the facts giving rise thereto.
1. Protests in connection with the solicitation or award of a contract involving an amount less than fifty thousand dollars ($50,000) shall be determined by the Purchasing Manager.
2. Protests in connection with the solicitation or award of a contract involving fifty thousand dollars ($50,000) or over shall be determined by the City Manager.
3. Protests in connection with the solicitation or award of a contract involving an award by City Council shall be determined by the City Council.
B. The Purchasing Manager, City Manager, or City Council as set out in subsection (A) of this section, shall have the authority to settle and resolve a protest of an aggrieved bidder, contractor, or vendor, actual or prospective, concerning the solicitation or award of a contract. A written decision regarding the protest shall be rendered within thirty (30) working days after the protest is filed. This authority shall be exercised in accordance with the Finance Department Procurement Policy. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 10, 1996; Ord. O-93-4 § 8, 1993).


3.04.170 Construction Management-General Contractor (CMGC) Contracts
Notwithstanding anything in Chapter 3.04 of the Lakewood Municipal Code to the contrary, the City may negotiate Construction Management-General Contractor (CMGC) Contracts and a variety of Construction Management-General Contractor (CMGC) Contracts, that may include Design Build and Construction Management, provided:
A. The City seeks, at a minimum, three proposals to complete the contract project;
B. The contract is awarded to the most qualified, responsible and responsive contractor, considering the purpose and nature of the contract. (Ord. O-2012-7 § 1, 2012; Ord. O-96-62 § 11, 1996; Ord. O-93-4 § 9, 1993).



3.04.180 Revenue contracts
Notwithstanding anything in Chapter 3.04 of the Lakewood Municipal Code to the contrary, the City may negotiate revenue producing contracts. (Ord. O-2012-7 § 1, 2012; Ord. O-2000-36 § 1, 2000).


3.04.190 Green procurement
The City of Lakewood’s sustainability efforts encourage the procurement of green products that meet or exceed current performance levels and are not prohibitive in terms of cost, delivery time, or other logistical factors, as determined by the City. (Ord. O-2012-7 § 1, 2012)