4.04.080 Formal contract procedure.
Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated value greater than the amount defined by city charter shall be by formal bid pursuant to the procedure prescribed in this section.
A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids;
1. Published Notice. Notice inviting bids shall be published once in the official newspaper at least five days before the date of opening of the bids,
2. Bidders’ List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders’ list or who have requested their names to be added thereto,
B. Bidder’s Security. When deemed necessary by the purchasing officer, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder;
C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening;
D. Rejection of Bids. The city council shall reserve the right to reject any or all bids in whole or in part and may waive any irregularities or informalities in any bids.
E. Award of Purchase or Contracts. Purchases or contracts shall be awarded to the lowest responsible bidder. In determining the lowest responsive and responsible bidder, the following shall be taken into consideration:
1. The quality, suitability, and efficiency of the item;
2. The total or life cycle cost of the equipment;
3. The delivery, discount terms, and all other conditions submitted in the bid;
4. The reputation of the equipment, the service reputation of the bidder, and all other information and data required to prove the responsibility of the supplier.
F. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders;
G. Performance Bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
(Ord. 1975 NCS §2, 1995; Ord. 875 NCS § 1; Ord. 586 NCS § 1; prior code §2.74.)