073-23 - Resolution - Procurement PoliciesDocuSign Envelope ID: 30D24664-BODF-4252-81`50-71BD39131 E51 BD
RESOLUTION NO.073-23
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING
RESOLUTION NO. 042-20, EXHIBIT A, AS AMENDED, PROCUREMENT POLICIES
AND PROCEDURES, PERTAINING TO CHANGE ORDER AND AMENDMENT
AUTHORITY.
WHEREAS, staff continues to review and update to the City's Procurement Policies and
Procedures, adopted by the City Council via Resolution No. 042-20 and amended by Resolution
No. 036-22, as needed; and
WHEREAS, Staff have identified an urgent need to seek an amendment to the policies
pertaining to the delegation of signatory authority to staff for change orders and contract
amendments for public works projects, which currently require the submission of minor change
orders for all contracts —including small contracts —to Council, leading to delay of projects and
increased associated costs; and
WHEREAS, the City Council previously authorized a limited waiver of the procurement
policies to increase the delegated amount; and
WHEREAS, the City Council finds it in the best interest of the City and its residents to
amend the City's Procurement Policies and Procedures to provide an increase in the cap of
delegated authority to staff for execution of change orders, while ensuring the responsible use
of public funds; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The City Council amends Resolution No. 042-20, Exhibit A, as amended, to read,
in part, as follows:
7.0 Change Orders and Amendments
A. Public Works. Upon recommendation of the department director, and demonstration
that a Change Order or contract amendment is necessary and reasonable, the department
director is authorized to approve any Change Order or contract amendment as follows:
For all contracts greater than $35,000, the change order does not exceed the greater of:
1. 10% of the legally authorized budget limit for the applicable project; or
2. 10% of the contract amount established by the City Council, provided for
the purposes of this calculation the total contract amount shall be reset
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Resolution No. 073-23
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to reflect new Council -approved contract totals authorized prior to the
requested change order.
Any individual change order that is between $50,000 and $100,000 requires
Mayoral approval, per Section 7.0. Any individual change order that is over
$100,000 requires Council approval.
For contracts with an initial budgeted value under $35,000, all change orders that
individually do not exceed $7,500 and an aggregate cap of $10,000.
For contracts with an initial unbudgeted value under $7,500, all change orders that do
not exceed an aggregate cap of $7,500 (excluding the underlying value), provided there
are sufficient departmental funds available in the applicable budget. For example: the
director may authorize a change order in the amount of $500 for a contract that had an
initial value of $2,000 without Council action.
B. All Departments. The Mayor is authorized to approve any and all Change Orders and
contract amendments that do not exceed either 10% of the legally authorized budget limit for
the applicable project or 10% of the contract amount established by the City Council, with a
maximum aggregate amount of $100,000, provided for the purposes of this calculation the
contract amount shall be reset to reflect new Council -approved contract totals authorized prior
to the requested change order or contract amendment.
THAT: The Resolution shall take full force and effect upon passage and signatures
hereon.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 111" day of June 2023.
DocuSigned by:
E3F•6F 4�B...
Robert Putaansuu, Mayor
ATTEST:
DocuSigned by: RT O N
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Brandy Wallace, MMC, City Clerk = 'SEAL
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Operating Procedure 501
CITY OF PORT ORCHARD
Procurement Policies & Procedures
216 Prospect Street
Port Orchard, WA 98366
www.portorchardwa.gov
Revised 7/11/2023
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Procurement Policies & Procedures
Table of Contents
PURPOSEOF POLICY................................................................................................................................4
DEFINITIONS........................................................................................................................................ 4-6
GENERALPROVISIONS.............................................................................................................................7
BUDGET SUFFICIENCY
FINANCING
FEDERAL AND STATE FUNDS
SIGNATURE AUTHORITY
COST
PROCUREMENT OF GOODS AND SERVICES............................................................................................ 7-10
LOCAL BUSINESS
SOLICITING SPECIFIC BRAND
PURCHASING LIMITATIONS
GENERAL PURCHASES
PUBLIC WORKS
PUBLIC WORKS PROJECTS AND PREVAILING WAGE LAWS
ARCHITECTURAL, ENGINEERING, LANDSCAPE ARCHITECTURE, OR SURVEYING SERVICES (A&E)
PERSONAL SERVICES
PURCHASED SERVICES
BIDPROCEDURES............................................................................................................................... 10-13
WRITTEN QUOTES
VENDOR LIST
SMALL WORKS ROSTER
SMALL WORKS BID PROCEDURE
LIMITED PUBLIC WORKS PROCESS
FORMAL COMPETITIVE BID PROCEDURES
EXEMPTIONS TO COMPETITIVE BIDDING..........................................................................................13-14
SOLE SOURCE PURCHASES
PURCHASES INVOLVING SPECIAL FACILITIES OR MARKET CONDITIONS
PURCHASES IN THE EVENT OF AN EMERGENCY
INTERLOCAL AGREEMENTS
COOPERATIVE PURCHASING (PIGGYBACKING)
US COMMUNITIES SHARED PURCHASING
TELECOMMUNICATIONS SYSTEMS/SERVICES
CHANGEORDERS.................................................................................................................................. 14
PURCHASE ORDERS................................................................................................................................ 15
CONFLICTSOF INTEREST........................................................................................................................ 15
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EXHIBITS.....................................................................................................................................16-20
BUDGET ADJUSTMENT REQUEST
WASHINGTON STATE PREVAILING WAGE LAW
PURCHASE QUOTATION SHEET
SOLE SOURCE VENDOR STATEMENT
PURCHASES THROUGH INTERLOCAL AGREEMENT CHECKLIST
CHANGE ORDER
PURCHASE ORDER
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1.0 Purpose of the Policy
This Policy establishes guidelines for employees when purchasing goods, equipment, supplies and
materials, public works projects, architecture, engineering, landscape architecture, surveying services,
personal services, purchased services and contracting for services. The procedures set forth in this manual
are designed to assure the citizens and elected officials that the City of Port Orchard is receiving maximum
value for each tax and utility dollar expended and ensure fiscal responsibility in the procurement process,
while assuring compliance with State, Federal, and City regulations and rules.
This policy is dated March 31, 2017 and supersedes all purchasing directives. All references to the Revised
Code of Washington (RCW), Federal Code, and/or City Ordinances, Resolutions, and personnel policies
shall be incorporated as part of this policy including all future amendments.
2.0 Definitions
"Architectural services" means services rendered by any person, other than a city employee, to perform
activities within the scope of the professional practice of architecture ( RCW 18.08), professional
practice of engineering and land surveying ( RCW 18.43), and/or professional practice of landscape
architecture ( RCW 18.96).
"Bid splitting" means breaking a public works project or purchase of equipment, materials, or supplies
into units. The city may not break a public works project into units to avoid compliance with bidding
statutes. RCW 35.23.352.
"Change order" means the authority to change the scope of service, time, and/or the amount of a
contract.
"Contract" means a contract in writing for the execution of a fixed or determinable amount duly
awarded after advertisement and competitive bid, or a contract awarded under the small works roster
process in RCW 39.04.155.
"Emergency" means unforeseen circumstances beyond the control of the municipality that either: (a) Present
a real, immediate threat to the proper performance of essential functions; or (b) will likely result in material
loss or damage to property, bodily injury, or loss of life if immediate action is not taken. RCW 39.04.280.
"Formal competitive bid" is the process of advertising and receiving sealed written bids from
prospective vendors. The lowest responsible bidder is selected and awarded the contract. This is for largest
and most complex contracts and purchases that reach the defined amounts.
"Informal competition" is the process of using the small public works roster or vendor list. This is for
medium sized purchases and contracts up to a certain amount.
"Interlocal agreement" isan agreement in which the city exercises its governmental powers in a
joint or cooperative undertaking with another public agency.
"Landscape architecture," as defined in RCW 18.96.030, means the rendering of professional services in
connection with consultations, investigations, reconnaissance, research, planning, design, construction
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document preparation, construction administration, or teaching supervision in connection with the
development of land areas where, and to the extent that, the dominant purpose of such services is the
preservation, enhancement, or determination of proper land uses, natural land features, ground cover
and planting, naturalistic and aesthetic values, the settings and approaches to structures or other
improvements, or natural drainage and erosion control. This practice includes the location, design, and
arrangement of such tangible objects as pools, walls, steps, trellises, canopies, and such features as are
incidental and necessary to the purposes in this chapter. Landscape architecture involves the design and
arrangement of land forms and the development of outdoor space including, but not limited to, the design
of public parks, trails, playgrounds, cemeteries, home and school grounds, and the development of
industrial and recreational sites.
"Minimal Competition" means there is no requirement to seek multiple quotes below the established
threshold, and competitive bidding is not required. Price quotes may be obtained from vendors that are
obtained using a variety of mediums such as phone, fax, e-mail, or writing. If the department seeks
quotes, the results should be documented. This is typically used for small contracts and purchases to a
certain amount.
"Ordinary maintenance" is work not performed by contract and that is performed on a regularly
scheduled basis (e.g. daily, weekly, seasonally, semiannually, but not less frequently than once per year),
to service, check or replace items that are not broken; or work not performed by contract that is not
regularly scheduled but is required to maintain the asset so that repair does not become necessary.
"Personal Services" are services that involve technical expertise provided by a consultant to accomplish a
specific study, project, task, or other work statement, not including architecture and engineering.
Examples include Graphic Design, Advertising, Consulting, Attorneys and Real Estate Services.
"Piggybacking" means the use of other governmental agencies' purchasing contracts without going out
for a formal competitive bid, as the other agency has already done it.
"Practice of architecture," as defined in RCW 18.08.320, means the rendering of services in connection
with the art and science of building design for construction of any structure or grouping of structures and
the use of space within and surrounding the structures or the design for construction of alterations or
additions to the structures, including but not specifically limited to predesign services, schematic design,
design development, preparation of construction contract documents, and administration of the
construction contract.
"Procurement Officer" is the public works employee designated as the purchasing agent for public works
procurements. The officer ensures that the department secures the best products and services within
the bid specifications consistent with City policy, federal regulations and state statute.
"Professional engineer," as defined in RCW 18.43.020, means a person who, by reason of his or her special
knowledge of the mathematical and physical sciences and the principles and methods of engineering
analysis and design, acquired by professional education and practical experience, is qualified to practice
engineering as defined in this section, as attested by his or her legal registration as a professional engineer.
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"Professional land surveyor," as defined in RCW 18.43.020, means a person who, by reason of his or her special
knowledge of the mathematical and physical sciences and principles and practices of land surveying, which is
acquired by professional education and practical experience, is qualified to practice land surveying and as
attested to by his or her legal registration as a professional land surveyor.
"Public work," as defined in RCW 39.04.010, means all work, construction, alteration, repair, or
improvement other than ordinary maintenance executed at the cost of the city or which is by law a
lien or charge on any city property. Public works projects include the related materials, supplies, and
equipment to complete the project.
"Purchased Service" is a service provided by vendors for routine, necessary, and continuing functions
of a local agency, mostly related to physical work.
"Purchase Order" is a document which authorizes the delivery of specified merchandise or the
rendering of certain services and the marking of a charge for them. The City of Port Orchard is
guaranteeing payment when a purchase order is provided to a vendor.
"Purchasing Agent" as designated in Resolution No. 1086 means the City Clerk who is authorized to
execute requests for performance bonds, vouchers involving disbursement of funds, routine purchase
orders, and routine correspondence on behalf of the City.
"Request for Proposal (RFP)" means a process that requests interested firms to submit a statement
of their proposal for completing a project. Proposals may be evaluated based upon the suitability,
practicality, quality of the proposal and experience and cost, provided. price is usually not the sole
evaluation factor (unless required by law). The RFP process provides for the negotiation of all terms,
including price, prior to contract award, and may include a provision for the negotiation of best and
final offers.
"Request for Qualifications (RFQ)" means a process that requests interested firms to submit a statement
of their qualifications for completing a project. Statements may be evaluated based upon the
qualifications, suitability, practicality, quality of the proposal and experience and cost, provided price is
usually not the sole evaluation factor (unless required by law). The RFQ process provides for the
negotiation of all terms, including price, prior to contract award, and may include a provision for the
negotiation of best and final offers.
"Small Works Roster" is a roster of qualified contractors who can bid for an eligible project below
$300,000. RCW 39.04.155 establishes the requirements for small works roster contracts.
"Sole Source Supplier" occurs when competition among potential vendors is not possible for a
particular procurement. If a purchase is clearly and legitimately limited to a single supplier, sole source
procurement is appropriate. These situations often arise when an agency has specific technological
requirements.
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3.0 General Provisions
Budget Sufficiency
Each Department Director must ensure that purchases are initiated only when the departmental budget is
sufficient to cover the anticipated cost. Expenditures that exceed departmental appropriations require a
budget amendment approved by City Council. Requests for budget amendments must be submitted in
writing, see Exhibit 1, and shall be forwarded to the Mayor and City Treasurer prior to seeking approval from
the City Council.
Financing
Consistent with Resolution No. 022-12 Finance Policies, the City may finance capital equipment, vehicles, land,
or infrastructure improvements. Financing recommendations shall be the responsibility of the Finance
Director. Financing instruments or structures require authorization consistent with City practices and
procedures prior to entering into any such arrangement.
Federal or State Funds
Procurement involving the expenditure of state or federal funds or grants, shall be conducted in accordance
with the Code of Federal Regulations (CFR) Title 2: Grants and Agreements §200.318. General procurement
standards require that the City must use its own documented procurement procedures which reflect applicable
State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law
and the standards outlined in §200.318.
Breaking Down or Bid Splitting Purchases Prohibited
Purchases shall not be broken into multiple projects or purchases to avoid limitation requirements of State
bidding statutes or City policy.
Signature Authority
The Mayor or designee shall sign all contracts upon approval by the City Council, consistent with RCW
35A.12.100, RCW 35A.12.190 and RCW 35A.11.020. .
Purchase Cost
Purchase cost includes sales tax, finance charges, delivery charges, set-up and assembly fees, and any other
related miscellaneous charges.
4.0 Procurement of Goods and Services
Local Business
Local businesses should be encouraged to submit bids on city procurements that are open to everybody.
Consistent with RCW 39.30.040, the City may award a contract to a bidder submitting the lowest bid after
such tax revenue has been considered.
Soliciting a Specific Brand
The City may advertise for bids by specifying a particular brand name item as long as the responsible official
has exercised theirjudgement and determined that a certain brand name is of higher quality or is better suited
to the City's needs. There is no requirement that bid specifications naming a particular brand also include a
phrase such as "or an equal brand."
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Contracting and Purchasing Limitations
1. Purchases and contracts greater than $35,000, require Council authorization.
2. Purchase limitations apply to the cost of individual items or the sum of the same items purchased at
the same time to fulfill a specific business need, which are not part of a public works project as defined
by RCW 39.04.010.
3. Expenditures are required to be within budgeted authority.
4. Contracts or purchases exceeding $7,500 and are not consistent with the adopted budget require
Council approval.
5. No provision prevents seeking Council approval for purchases falling within the limitations.
Purchasing
Purchasing refers to purchase of goods, equipment, materials, and supplies not connected with a public works
project.
Local and State:
$7,500 and under, may use minimal competition process, informal competition process, or formal
competitive bidding.
$7,501- $15,000, may use informal competition process or formal competitive bidding.
Over $15,000, must use formal competitive bidding.
Federal:
$3,500 and under, micro purchase procedures (not competitive, distributed equitably)
$3,501 - $150,000, small purchase procedures (price or rate quotations)
Over $150,000, Sealed/Formal Bids
Piihlir 1A/nrkc
Public Works projects include all work, construction, building, renovation, remodeling, alteration, repair, or
improvement, other than ordinary maintenance, of real property; as defined in RCW 39.04.155(1)
Local and State:
Over $350,000, must use formal competitive bidding.
$75,500 and over (single craft) or $116,155 and over (multiple craft), up to $350,000, may use a small public
works roster, or formal competitive bidding.
Under $75,500 (single craft) or $116,155 (multiple craft), may use the above methods or day labor,
informal competition, or may obtain three telephonic, electronic or written quotations.
Under $50,000, may use the above methods or limited public works process
Under $10,000, may use the above methods or may obtain a single telephonic, electronic or written
quotation.
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Federal:
$150,000 and under, small purchase procedures (price or rate quotations)
Over $150,000, Sealed/Formal Bids
Public Works Proiects and Prevailing Wage Laws
Public works projects ("...all work, construction, alteration, repair, or improvement other than ordinary
maintenance executed at the cost of the city..."), including maintenance when performed by contract, are
governed by Chapter 39.12 RCW Prevailing Wages on Public Works requirements, regardless of contract
amount.
It is the responsibility of the contracting employee to notify the vendor of prevailing wage requirements and
obtain compliance documentation prior to awarding any public works contract. Public works contracts will
only be awarded to contractors who document compliance with the Washington State Prevailing Wage Law.
The department head or designee managing the project is responsible for collecting compliance documents.
Failure to follow prevailing wage laws will result in delayed or denied payment to the vendor. The City cannot
pay for public works projects that are in violation of prevailing wage laws. (See Exhibit 2.)
Architectural, Engineering, Landscape Architecture, or Surveying Services WE) Services
Professional architecture and engineering (A&E) services are services provide by any person, other than an
employee of the City, that fall under the general statutory definitions as set forth in Section 2 "Definitions"
of this policy. These services must follow the same qualifications -based selection (QBS) process outlined in
RCW 39.80.
The City has contracted with the Municipal Research and Services Center (MRSC) to host the City's Consultant
Roster and will adhere to the requirement of RCW 39.04.190.
Local and State:
The City may solicit competitive bids and evaluate them based on qualifications, without regard to cost.
Federal:
Over $150,000, Competitive Proposals
Non-A/E Professional Services
Personal services involve technical expertise provided by a consultant to accomplish a specific study or project
task. These activities and products are mostly intellectual in nature, but exclude architecture and engineering
services, which have their own requirements. For example, comprehensive plans, legal services, and
management analyses.
The City has contracted with the Municipal Research and Services Center (MRSC) to host the City's Consultant
Rosters, and where applicable will adhere to the requirement of RCW 39.04.190.
Local and State:
Estimated cost of $150,000 and under may solicit statements of qualifications from consultants utilizing
the MRSC consultant rosters (where feasible, from three qualified consultants), minimal competition, seek
written quotes (where feasible, from three qualified consultants), RFP, RFQ, or formal competitive bidding.
Estimated cost of over $150,000 may issue an RFP, RFQ, solicit statements of qualifications from
consultants utilizing the MRSC consultant rosters (where feasible, from three qualified consultants), or use
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formal competitive bidding.
Federal:
Estimated cost of $150,000 and under may use RFP, RFQ, or small purchase procedures.
Estimated cost over $150,000 may use RFP, RFQ, or Sealed/Formal Bids.
Purchased Services
Purchased services are those provided by vendors for routine, necessary, and continuing functions mostly
relating to physical activities. These services are usually repetitive, routine, or mechanical in nature, support
the City's day-to-day operations, involve the completion of specific tasks or projects, and involve minimal
decision -making. For example delivery/courier service, herbicide application, recycling/disposal/litter pickup
service, vehicle inspection, lubricating and repair services.
Local and State:
$25,000 and under, may use minimal competition, seek written quotes, use consultant roster, or formal
competitive bidding.
Over $25,000, must use formal competitive bidding
Federal:
$150,000 and under, may use small purchase procedures (price or rate quotations)
Over $150,000, Sealed/Formal Bids
5.0 Bid Procedures
Written Quotes
Small contracts or purchases requiring written quotes must be documented on a quote sheet. Quote sheet is
included as Exhibit 3.
Vendor List
RCW 39.04.190 allows the use of informal vendor lists. A vendor list is a directory, maintained by a local
government agency, of vendors who are interested in selling equipment, materials, and supplies to the agency.
The City may create multiple vendor lists for different types of products. When using the vendor list, the city
should secure quotes from at least three of the vendors on the list, if possible, and award the contract to the
lowest responsible bidder.
The City has contracted with the Municipal Research and Services Center (MRSC) to host the City's Vendor
Roster and will adhere to the requirement of RCW 39.04.190.
Small Works Roster
Local and State:
RCW 39.04.155(1) provides uniform small works roster provisions to award contracts for construction, building,
renovation, remodeling, alteration, repair, or improvement of real property. The Small Works Roster may be
used for public work projects valued at $350,000 and below in lieu of formal bidding. Use of the Small Works
Roster allows the City to avoid the advertisement requirements of the formal competitive process. All other
bidding requirements are the same.
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The City has contracted with the Municipal Research and Services Center (MRSC) to host the City's Small Public
Works Roster and will adhere to the requirement of RCW 39.04.190.
Federal:
If any federal funds are used to pay for all or a portion of the cost, the City must use the formal bidding process
at the federal threshold of $150,000.
Small Works Bid Procedure
1. Invitations for Quotations.
Invitations for quotations shall include an estimate of the scope and nature of the work to be performed
as well as materials and equipment to be furnished. However, detailed plans and specifications need not
be included in the invitation. These requirements do not eliminate other requirements for architectural or
engineering approvals as to quality and compliance with building codes.
2. Number of contractors invited.
Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an
alternative, quotations may be invited from at least five contractors on the appropriate small works roster
who have indicated the capability of performing the kind of work being contracted, in a manner that will
equitably distribute the opportunity among the contractors on the appropriate roster. However, if the
estimated cost of the work is from one hundred fifty thousand dollars ($150,000) to three hundred
thousand dollars ($350,000), a state agency or local government that chooses to solicit bids from less than
all the appropriate contractors on the appropriate small works roster must also notify the remaining
contractors on the appropriate small works roster that quotations on the work are being sought pursuant
to RCW 39.04.155 (2)(c)
3. Vendors/contractors selected from the Small Works Roster are not relieved from observing applicable legal
requirements such as those relating to Performance Bonds, Prevailing Wages, Labor and Material Bonding,
etc.
4. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public
inspection, and available by telephone inquiry.
5. As required by RCW 39.04.200, every even numbered month, the City must post a list of contracts awarded
from the small works roster over at least the previous two months. The list must contain the name of the
contractor, the amount of the contract, a brief description of the type of work performed, and the date of
the award.
Limited Public Works Process (RCW 39.04.155(3))
For limited public work projects may award a contract for work, construction, alteration, repair, or
improvement projects with an estimated cost of $50,000 or less, the city may use the limited public works
process described below in lieu of the small works process.
1. Invitations for Quotations.
Invitations for quotations shall include an estimate of the scope and nature of the work to be performed
as well as materials and equipment to be furnished. However, detailed plans and specifications need
not be included in the invitation. These requirements do not eliminate other requirements for
architectural or engineering approvals as to quality and compliance with building codes.
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2. Number of contractors invited.
Electronic or written quotations shall be solicited from a minimum of three contractors from the
appropriate small works roster and the city shall award the contract to the lowest responsible bidder
as defined under RCW 39.04.010.
3. Notification of Award.
After an award is made, the quotations shall be open to public inspection and available by electronic
request. The city shall maintain a list of the contractors contacted and the contracts awarded during
the previous twenty-four months under the limited public works process, including the name of the
contractor, the contractor's registration number, the amount of the contract, a brief description of
the type of work performed, and the date the contract was awarded.
4. Vendors/contractors selected using the Limited Public Works Process are required to comply with
prevailing wage and insurance requirements.
Formal Competitive Bid Procedures
1. Publication of Notice.
The requesting department director (or designee) will publish the Call for Bids in the official newspaper or
a newspaper of general circulation most likely to bring responsive bids, at least thirteen days prior to the
last date upon which bids will be received.
2. Notice Contents.
Notice (or advertisement) for bids should contain definite specifications and procedures for bidders to use
to estimate their bids. At a minimum, a bid notice for public works must include:
• Project title;
• Nature and scope of work;
• Where contract documents (plans and specifications) can be reviewed or obtained;
• Cost to obtain a set of contract documents;
• Place, date, and time that bids are due;
• Statement that a bid bond must accompany the bid;
• Statement that the City retains the right to reject any and all bids and to waive minor irregularities
in the bidding process;
• Statement that the contract involves "public work," and that workers shall receive the prevailing
rate of wage pursuant to the Prevailing Wages on Public Works Act (Chapter 39.12 RCW);
• List of the applicable prevailing wage rates; and
• Statementthat the City is an equal opportunity employer and invites responsive bids from all qualified
responsible bidders.
In addition, providing evaluation criteria; minimum qualifications; date, time, and location of pre -bid conference
(if applicable); name, address, and telephone number of the project contact; and number of required copies will
help bidders prepare responsive submittals.
3. Acceptance of Bids.
Bids are submitted to the City Clerk, where they are time and date stamped and held until bid opening.
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4. Bid Opening.
City Clerk on the day the bids are due, will open all sealed bids and read each bid out loud.
5. Report on Bids.
The City Clerk, or designee, will prepare the Bid tab sheet and provide it to the responsible department
director. The responsible department director will provide a recommendation on all bids received.
6. Bid Award.
The City may select the qualified vendor whose proposal is most advantageous to the City, with price and
other factors considered.
7. Rejection of Bids.
The City reserves the right to reject any bid not in substantial compliance with the bid documents, or all
prescribed public bidding procedures and requirements, and may reject for good cause any or all bids upon
a finding of the City that it is in the public interest to do so.
The following shall apply to bid solicitations:
• Selection of a winning offer is based primarily on lowest responsive bid. Quality and expertise,
however, must also be a consideration.
• To ensure consistency and fair process, the City will use standard forms, documents, contracts, and
terms and conditions, when practical. The Public Works Department will maintain templates for bid -
related documents for use by departments.
• Minimum qualifications are stated to ensure respondents are reasonably qualified. Minimum
qualifications cannot be used to eliminate qualified vendors. Minimum qualifications should be tested
against the marketplace to ensure they aren't overly restrictive.
• When practical, the City will conduct a pre -bid conference to allow a thorough discussion of the City's
intent, scope, specifications, and terms. Interested companies should be encouraged to attend.
6.0 Exemptions to Competitive Bidding
Section 39.04.280 RCW provides uniform exemptions to competitive bidding requirements utilized by
municipalities when awarding contracts for public works and contracts for purchases. Competitive bidding
requirements may be waived for:
Sole Source Purchases
Purchases that are clearly and legitimately limited to a single source of supply (Sole Source Vendor):
If, after conducting a good faith review of available resources, the requesting department director
determines that there is only one source of the required materials, supplies, or equipment, a purchase
contract may be awarded without complying with established bid requirements. The requesting
department director must complete the Sole Source Vendor Statement form, attached as Exhibit 4, and
must be filed with the contract.
Purchases involving special facilities or market conditions
The Mayor may waive established bidding requirements if an opportunity arises to purchase favorably -
priced equipment at an auction, or supplies or used goods that will be sold before the City can conduct the
bid process.
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Purchases in the event of an emergency
If an emergency situation has been declared, the Mayor may waive competitive bidding requirements and
the City may award all necessary contracts to purchase goods, materials, or services to address the
emergency situation. Purchase order(s) must be properly documented as pertaining to an emergency as
soon as possible following the event. If a contract is awarded without competitive bidding due to a declared
emergency, the City Council must adopt a resolution certifying the emergency situation existed no later
than two weeks following the award of the contract.
Intergovernmental Purchases and Piggybacking
The City may make purchases using another local, state, or federal agency's purchasing contract, a process
known as "piggybacking". The host entity and the City of Port Orchard must follow the statutory
contracting requirements and post solicitations online, as outlined in RCW 39.34. In addition, City staff
should use the Purchases through Interlocal Agreements checklist, attached as Exhibit 5.
Telecommunication Systems/Services
The City may acquire electronic data processing or telecommunication equipment, software, or services
through competitive negotiation rather than through competitive bidding as outlined in RCW 39.04.270.
7.0 Change Orders
A. Public Works. Upon recommendation of the department director, and demonstration that a Change
Order or contract amendment is necessary and reasonable, the department director is authorized to
approve any Change Order or contract amendment as follows:
A. For all contracts greater than $35,000, the change order does not exceed the greater of:
1. 10% of the legally authorized budget limit for the applicable project; or
2. 10% of the contract amount established by the City Council, provided for the purposes of
this calculation the total contract amount shall be reset to reflect new Council -approved
contract totals authorized prior to the requested change order.
Any individual change order that is between $50,000 and $100,000 requires Mayoral approval
per Section7.0. Any individual change order that is over $100,000 requires Council approval.
B. For contracts with an initial budgeted value under $35,000, all change orders that individually do
not exceed $7,500 and an aggregate cap of $10,000.
C. For contracts with an initial unbudgeted value under $7,500, all change orders that do not exceed
an aggregate cap of $7,500 (excluding the underlying value), provided there are sufficient
departmental funds available in the applicable budget. For example: the director may authorize a
change order in the amount of $500 for a contract that had an initial value of $2,000 without
Council action.
B. All Departments The Mayor is authorized to approve any and all Change Orders and Contract
Amendments that do not exceed either 10% of the legally authorized budget limit for the applicable
project or 10% of the contract amount established by the City Council, with a maximum aggregate
amount of $100,000, provided for the purposes of this calculation the contract amount shall be reset
to reflect new Council -approved contract totals authorized prior to the requested change order or
contract amendment.
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Change Orders in Excess of City Council Authorized Budget Appropriations.
Upon recommendation of the department director, and demonstration that a Change Order is necessary, the
responsible department director shall submit to the City Council a Change Order Request to include the
amount of requested funds and a written justification describing why the additional funds are necessary and
the benefits to be derived. A request for budget amendment shall accompany the Change Order.
If the City Council approves the Change Order Request, the responsible department director shall take the
necessary actions to enact the Change Order and complete the work in an expeditious manner in accordance
with the City Council's direction.
If the City Council denies the Change Order Request, the responsible department director shall report back to
the Mayorand City Council with options as to howto accomplish the project/contract within the funds allocated.
Consistent with RCW 39.04.280, in the event of an emergency or the need to take immediate or expeditious
action necessary to protect or maintain the public health, safety, or welfare; or to prevent damage to public
or private property, and with approval of the Mayor, department directors are authorized to enact Change
Orders in excess of the legally authorized expenditure level. The responsible department directorshall timely
report such actions to the City Council.
8.0 Purchase Orders
The City Clerk is authorized to execute requests for routine purchase orders as stated in Resolution No. 1086.
Routine purchase orders are used to detail the terms of the purchase, including the items purchased, the price,
delivery date, and terms of payment. Purchase Orders are available to vendors and suppliers when there is an
agreement to deliver purchased items prior to payment, with the purchase order serving as a guarantee of
future payment. Once a purchase order is generated, an in -progress purchase is created. The order remains in
progress until the ordered items have been delivered and paid. Attached as Exhibit 7.
9.0 Conflicts of Interest
City officers, employees, and agents may not participate in the selection, award, or administration of a contract
if they have a real or apparent conflict of interest. This provision encompasses procurement expending federal,
state, or local funds. Such officers, employees, and agents may neither solicit nor accept gratuities, favors, or
anything of monetary value from contractors, subcontractors or other parties consistent with Chapter 42.52
RCW Ethics in Public Service. Unsolicited items of nominal value are restricted to the provisions of RCW
42.52.150.
Employees violating these provisions are subject to disciplinary action commensurate with the severity of the
violation, ranging from a letter of reprimand to termination of employment. Disciplinary actions shall be
governed by Improper Governmental Action Policy Chapter 11 City of Port Orchard Personnel Policies
consistent with applicable Federal law and the standards outlined in the Code of Federal Regulations Title 2;
Grants and Agreements §200.318; and applicable state statutes.
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Budget Adjustment Reauest
EXHIBITS
CITY OF PORT ORCHARD
CURRENT YEAR
BUDGET ADJUSTMENT REQUEST
To: City Treasurer Date:
Please transfer the following revenues and/or appropriations:
Exhibit 1
Decrease
(from)
Increase
(to)
category
acct. number
amount
category
acct. number
amount
Reason:
Requested By:
(Department Director)
1. To: City Treasurer
Comments:
Approved Not Approved Signature
2. To: Mayor
Comments:
Approved
3. To: Finance Department
Adjustment Recorded: AJ#_
Prepared By:
Not Approved Signature
Date:
Date:
Date:
Approved By:
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Washington State Prevailing Wage Law Exhibit 2
CITY OF PORT ORCHARD
WASHINGTON STATE PREVAILING WAGE LAW
The Prevailing Wages on Public Works Act (Chapter 39.12 RCW) requires that employees of government
contractors be paid prevailing wages for all public work. Agencies awarding public works contracts include
state agencies, counties, municipalities and all political subdivisions of the state.
All public agencies, contractors performing public work, and construction workers on public works
construction should be aware of their rights and legal responsibilities. Failing to comply with the provisions of
Chapter 39.12 RCW may subject contractors and/or public agencies to liability for all unpaid prevailing wages
and penalties.
The Department of Labor and Industries (L&I) administers the prevailing wage law. The Office of the Attorney
General provides legal counsel to L&I and prosecutes violators. The State Auditor's Office ascertains if a public
agency's policies, procedures and practices meet the requirements of the law.
Do not rely on this plain language description without reading the laws and regulations. The informal
discussions below are meant to be helpful when read in conjunction with the laws and WAC rules. They are
not meant to be a substitute for reading and understanding the laws. After reading the laws and regulations,
please do not hesitate to contact the Prevailing Wage Office with any questions you may have.
The Prevailing Wages on Public Works Act
Enacted in 1945, the Washington State Public Works Act, also known as the "prevailing wage law", is a worker
protection act. It requires that workers be paid prevailing wages when employed on public works projects, and
on public building service maintenance contracts. (RCW 39.04.010, RCW 39.12.010, and RCW 39.12.020)
The Public Works Act is modeled after the federal Davis -Bacon Act, which was enacted to protect the
employees of contractors performing public works construction from substandard earnings, and to preserve
local wage standards.
The Public Works Act regulates wages paid to workers, laborers and mechanics performing public work. It does
not apply to work that is clerical, executive, administrative or professional in nature. For example, the Act does
not apply to the work of a secretary, engineer or administrator, unless they are performing construction work,
alteration work, repair work, etc. Prevailing Wage application depends on the work that is performed,
regardless of the worker's job title. Any doubts or questions regarding the applicability of the prevailing wage
law should be directed to the Prevailing Wage Office. (RCW 39.12.020 and WAC 296-128-510 through 530)
What Is Public Work?
Public work is all work, construction, alteration, repair or improvement that is executed at the cost of the state
or any other local public agency. This includes, but is not limited to, demolition, remodeling, renovation, road
construction, building construction, ferry construction and utilities construction. (RCW 39.04.010)
What Is Prevailing Wage?
Prevailing Wage is defined as the hourly wage, usual benefits and overtime, paid in the largest city in each
county, to the majority of workers, laborers, and mechanics. Prevailing wages are established, by the
Department of Labor and Industries, for each trade and occupation employed in the performance of public
work. They are established separately for each county, and are reflective of local wage conditions.
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Awarding Agencies' Responsibilities
l . Contracts for Public Work: Employers are not responsible for making the legal determination of whether a contract
does or does not meet the defmition of a "public works" contract. Public agencies, in awarding a contract, must make
the determination of whether that contract involves "public work" and communicate it to the employers in the bid
specifications and contracts. The law does not allow public agencies to place this burden upon the employer. For
example, it is insufficient to state, "Contractors shall comply with the prevailing wage law, if applicable". Agencies
should seek the advice of legal counsel regarding when a contract is for public work. Before acting on advice that a
contract is not for public work, agencies should contact the Prevailing Wage Office for a determination of the
applicability of the statute. (RCW 39.04.010, RCW 39.12.030, RCW 39.12.040, and RCW 39.12.042)
2. Prevailing Wage Provisions: Awarding agencies must stipulate in bid specifications and contracts for public work that
workers shall receive the prevailing rate of wage. Those documents must also contain a list of the applicable prevailing
wage rates. Compliance with the law is not met by referring contractors to the department or other sources to obtain
wage rate information. RCW 39.12.030
3. Public Building Service Maintenance Contracts: Public building service maintenance (janitorial) contracts of more
than one year duration must include wage language recognizing the potential for future variance in applicable
prevailing wages each year after the first year of the contract. RCW 39.12.020 and WAC 296-127-023
4. Disbursal of Public Funds: Agencies may not make any payments where employers have not submitted an Intent form
that has been approved by the Industrial Statistician. Agencies may not release retainage until all employers have
submitted an Affidavit form that has been certified by the Industrial Statistician. The requirement to submit these forms
should also be stated in the contract. RCW 39.12.030, RCW 39.12.040 and RCW 39.12.042
5. Turnkey Projects (lessee/lessor relationships between public and private parties): Prevailing wages must be paid for
any work, construction, alteration, repair or improvement, other than ordinary maintenance, that the state or a
municipality causes to be performed by a private party through a contract to rent, lease, or purchase at least fifty percent
of the project by one or more state agencies or municipalities. RCW 39.04.260. It is the responsibility of the awarding
agency to make an accurate determination as to whether the entire project falls within RCW 39.04.260 prior to entering
into a lease relationship for space in a privately owned building. The determination is based on whether the awarding
agency is causing the work to be performed and when at least fifty percent of the leased space is going to be occupied
by one or more public agencies. If RCW 39.04.260 applies, all work performed in conjunction with the project is
covered, not just the tenant improvements, and the project is subject to all provisions of RCW 39.12. Should the
awarding agency fail to comply with all the provisions of RCW 39.04.260 and RCW 39.12.040, the awarding agency
can be held responsible for any unpaid prevailing wages.
6. Contract Administration: Though not legally required, the following activities are recommended to ensure compliance
with the Public Works Act.
a. Job site inspections should be performed on a routine or periodic basis to verify compliance. These
inspections should include checking to see that a copy of the Intent is posted at the job site. Workers
should be randomly interviewed to verify that prevailing wages are received. Apprentice workers should
be asked to show their registration cards.
b. References should be checked when the agency is empowered to select the lowest responsible bidder.
The department can advise an agency regarding an employer's history of wage claims. Check the
Contractor Debarment List to find out if a contractor is debarred from bidding on public works projects.
c. Verify Contractor Registration Status and Verify Workers' Compensation Premium Status. Find out
whether a contractor or other employer has an industrial insurance (workers' compensation) account with
L&I and that their premiums are up to date.
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Purchase Quotation Sheet Exhibit 3
CITY OF PORT ORCHARD
PURCHASE QUOTATION SHEET
Purchases of $7,500 or more require three (3) quotations which will become a part of the purchase
request.
Purchase Order Number:
Quote Required By: (Date)
(Time)
Name of Person
Requesting:
Commodity:
Buyer:
Required Delivery Date:
Ship to Address:
City:
State:
Zip
Co
de:
ITEM
NO.
QTY
UNIT
SPECIFICATIONS
BIDDER 1
BIDDER 2
BIDDER 3
Company:
Company:
Company:
Contact:
State:
Contact:
State:
Contact:
State:
Telephone Number:
Telephone Number:
Telephone Number:
Fax Number:
Fax Number:
Fax Number:
Quote Date:
Quote Date:
Quote Date:
PRODUCT
QUOTED
Unit
Price
Total
Price
PRODUCT QUOTED
Unit
Price
Total
Price
PRODUCT QUOTED
Unit
Price
Total
Price
Total Price
Total Price
Total Price
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Sole Source Vendor Statement
CITY OF PORT ORCHARD
SOLE SOURCE VENDOR STATEMENT
Date:
To: City Clerk's Office to file with contract
From: Fill — in department name and name of person signing this form
To Whom It May Concern:
Exhibit 4
This form justifies the proposed sole source purchase described below. In accordance with State of
Washington regulations (RCW 39.04.280), City of Port Orchard must procure material, equipment, supplies
and services by competitive means when the purchase is in excess of $7,500. However, in unusual
circumstances the competitive process may be waived and sole source purchasing approved, provided the
requesting party can adequately justify its use.
Sole source purchases are defined as clearly and legitimately limited to a single supplier. Sole source
purchases are normally not allowed except when based upon strong technological grounds such as
operational compatibility with existing equipment and related parts or upon a clearly unique and cost
effective feature requirement. The use of sole source purchases shall be limited only to those specific
instances which are totally justified to satisfy compatibility or technical performance needs.
If one of the reasons 1 through 3 below applies to this purchase, you need only to check the applicable
reason and describe item being purchased below. If reason 4 apply, please provide the item description
and explanation below.
1. [ ] Licensed, copyrighted, or patented products or services that only one vendor provides.
2. [ ] New equipment or products that must be compatible with existing equipment or
products.
3. [ ] Proprietary or custom-built software or information systems that only one vendor provides.
4. [ ] Products or services where only one vendor meets the required certifications or satutaory
requirements.
Item Description:
If explanations 4 is used, please provide an explanation below. Explain why the identified vendor is
rarnmmonr,nt+
Signed Department Director or Designee
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Purchases through Interlocal Agreements
CITY OF PORT ORCHARD
PURCHASES THROUGH INTERLOCAL AGREEMENTS
City Contract No.:
Interlocal Agreement with (government agency or Purchasing Co -Op name):
Item Description:
Do you have an Interlocal agreement signed with the Contract (host) Agency?
❑ If yes, where is it filed:
❑ If no, get a mutually signed Agreement in place before you continue.
Exhibit 5
State OSP Contract No.#:
If you have an Office of State Procurement (OSP) contract number you may skip the remainder of
this test because the OSP contracts comply with remaining requirements and retain the
documentation on hand for SAO to review in the OSP offices.
Is this a technology contract?
❑ If yes, do your own rules allow for technology contracts to be negotiated?
❑ If your own rules allow for negotiated IT contracts, you can skip this test.
Is this a services contract?
❑ If yes, do your own rules allow services to be negotiated?
❑ If your own rules allow for negotiated services, you can skip the remainder of the test.
Are you using this as only one of multiple quotes, for a small purchase?
❑ If yes, you can skip the remainder of the test. Your purchase will not mandate the sealed bid rules.
Checklist for Re wired Compliance
Is the Host agency a public agencyi?
0 Yes
13 No
If Yes, what state laws apply to Host
Agency:
Does the host agency have a requirement
17 Yes
0 No
Federal and State contract rules usually
to run a newspaper ad in their local paper
don't require a newspaper ad. For others,
and did they comply
attach the ad or place into the file
Did they list on the public agency's
0 Yes
0 No
If Yes, state when and the address, and
website?
proof of date, address shall be attached or
placed into the file. If No, you cannot use
the bid.
Did the bid & award comply with the
0 Yes
0 No
If Yes, obtain documentation to support
Host agency's state procurement laws?
answer from Host Agency. If No, you
cannot use the bid.
1 RCW 39.34.020 (1), "public agency" means any agency, political subdivision, or unit of local government of this state
including, but not limited to, municipal corporations, quasi municipal corporations, special purpose districts, and local
service districts; any agency of the state government; any agency of the United States; any Indian tribe recognized as
such by the federal government; and any political subdivision of another state.
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Exhibit 6
CITY OF PORT ORCHARD
Authorization for Change Order No.
Date: Contractor:
Project:
Contract / Job #
THIS CHANGE ORDER AUTHORIZES THE FOLLOWING CHANGES TO THE CONTRACT:
Amount
Contract History
Sales Tax Total Date Appvd by
Original Contract
$0.00
$0.00
$0.00
Change Order 1
$0.00
$0.00
$0.00
Total Contract $0.00
$0.00
I have reviewed the Change Order information above and certify that to the best of my knowledge
descriptions and costs are true and accurate.
Contractor Approval Signature Public Works Director
Printed Name & Title Printed Name
Public Works Contracts Greater than $35,000: Change Orders that do not exceed
10%, with a maximum of $50,090, of either legally authorized budget limit or contract Approved:
Mayor
amount established by City Council can be approved by the Public Works Director.
Total Contract Amount shall reset to reflect new Council -approved contract totals Attest:
authorized prior to the requested change order. $50,000-$100,000 require Mayoral City Clerk
Approval. $100,000 and over require Council Approval.
Public Works Contracts under $35,000, change orders that individually do not exceed Council Approval Date
$7,500 with an aggregate cap of $10,000.
Public Works Contracts unbudeeted and under $7,500: All Change Orde3rs that do
not exceed an aggregate cap of $7,500 (Excluding underlying value), provided there
are departmental funds available in the budget.
All Departments: Mayor approves any and all Change orders that do not exceed 10%
of either authorized budget limit or contract amount established by City Council. With
a maximum aggregate amount of $100,000. Total Contract Amount shall reset to
reflect new Council -approved contract totals authorized prior to the requested change
order. Any individual Change order that is over $100,000 requires Council approval.
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Exhibit 7
City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
(360) 876-4407
Bill To:
Attn: Accounts Payable
City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
ap@portorchardwa.gov
Ordered By.
PURCHASE ORDER'S
P.O. No.
Date:.
Ship To:
Authorized Signature:
City Clerk or Authorized Representative Signature
Qty Unit Price Total
THIS ORDER IS A CONFIRMATION Yes
THIS ORDER IS NOT A CONFIRMATION
ACCOUNT CODE
Subtotal
Sales Tax (9.3%)
Bal Due
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