019-07 - Resolution - Repealing Resolutions 009-15 and 006-15 and Adopting Procurement PoliciesRESOLUTION NO. 019-17
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, REPEALING
RESOLUTION NOS. 009-15 and 006-15; AND APPROVING AND ADOPTING CITY
PROCUREMENT POLICIES AND PROCEDURES.
WHEREAS, in May 2015, the City Council adopted Resolution No. 009-15, establishing
specific procedures to implement small works roster processes pursuant to the provisions of RCW
39.04.155 and RCW 35.23.352(3) regarding contracting for public works by second class cities;
and
WHEREAS, in April 2015, the City Council adopted Resolution No. 006-15, establishing
Public Works Director and the Mayor with an amended change order authority; and
WHEREAS, the City Council has determined that it is in the best interests of the city to
establish procurement policies and procedures that govern all forms of procurement by city staff,
including those currently governed by Resolution Nos. 009-15 and 006-15; and
WHEREAS, the City Council wishes to repeal Resolutions No. 009-15 and 006-15; and
WHEREAS, the City Council wishes to adopt as the city's official procurement policies and
procedures the Procurement Policies and Procedures document developed by city staff, which
establishes appropriate procurement policies and procedures for all forms of procurement,
including procurement authority limits; ensures that bid laws are adhered to; and safeguards the
City's assets from unauthorized expenditures; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS
FOLLOWS:
THAT: Resolution No. 009-15 is hereby repealed in its entirety.
THAT: Resolution No. 006-15 is hereby repealed in its entirety.
THAT: The Procurement Policies and Procedures attached hereto as Exhibit A are hereby
approved and adopted as the city's official procurement policies and procedures.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the Clerk in authentication of such passage this 25th day of April 2017.
Robert Putaansuu, Mayor
11SEAL • |
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Brandy Rinearson, CMC, City Clerk
CITY OF PORT ORCHARD
Procurement Policies & Procedures
216 Prospect Street
Port Orchard, WA 98366
www.citvofportorchard.us
Procurement Policies & Procedures
Table of Contents
4PURPOSE OF POLICY
,4-6DEFINITIONS,
6-7GENERAL PROVISIONS........
BUDGET SUFFICIENCY
FINANCING
FEDERAL AND STATE FUNDS
SIGNATURE AUTHORITY
COST
7-8PROCUREMENT OF GOODS AND SERVICES
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
9-11BID PROCEDURES...................................
WRITTEN QUOTES
VENDOR LIST
SMALL WORKS ROSTER
SMALL WORKS BID PROCEDURE
LIMITED PUBLIC WORKS PROCESS
FORMAL COMPETITIVE BID PROCEDURES
11-13EXEMPTIONS TO COMPETITIVE BIDDING............................................
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
13CHANGE ORDERS
14PURCHASE ORDERS
14CONFLICTS OF INTEREST
Procurement Policies & ProceduresPage 2 of 21City of Port Orchard
EXHIBITS..............................................................................
BUDGET ADJUSTMENT REQUEST
WASHINGTON STATE PREVAILING WAGE LAW
PURCHASE QUOTATION SHEET
SOLE SOURCE VENDOR STATEMENT
PURCHASES THROUGH INTERLOCAL AGREEMENT CHECKLIST
CHANGE ORDER
PURCHASE ORDER
15-20
Procurement Policies & ProceduresCity of Port Orchard Page 3 of 21
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, ora 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
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
Procurement Policies & ProceduresCity of Port Orchard Page 4 of 21
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.
"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.
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"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 are evaluated based upon the suitability, practicality, quality
of the proposal and experience and cost.
"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.
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 City Treasurer. 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 shall sign all contracts upon approval by the City Council, consistent with RCW 35.23.440(32).
City of Port Orchard Page 6 of 21 Procurement Policies & Procedures
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 their judgement 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."
Purchasing Limitations
1. Services 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.i
3. Expenditures are required to be within budgeted authority.
4. Contracts or purchases of any amount that 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
Public Works
Public Works projects include all work, construction, alteration, repair, or improvement, other than ordinary
maintenance.
Local and State:
$40,000 and under (single craft) or $65,000 and under (multiple craft), may use day labor, minimal competition,
informal competition, or formal competitive bidding.
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$40,001 and over (single craft) or $65,001 and over (multiple craft), up to $300,000, may use a small public works
roster, or formal competitive bidding.
Over $300,000, must use formal competitive bidding.
Federal:
$150,000 and under, small purchase procedures (price or rate quotations)
Over $150,000, Sealed/Formal Bids
Public Works Projects 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 (A/E) 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.
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
Personal 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 Roster
and will adhere to the requirement of RCW 39.04.190.
Local and State:
$150,000 and under, may use minimal competition, seek written quotes, use consultant roster, or formal
competitive bidding.
Over $150,000, must use formal competitive bidding
Federal:
$150,000 and under, small purchase procedures (price or rate quotations)
Over $150,000, 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-
Procurement Policies & ProceduresCity of Port Orchard Page 8 of 21
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
i
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 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 $300,000 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.
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.
City of Port Orchard Procurement Policies & ProceduresPage 9 of 21
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 ($300,000), 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 public work projects with an estimated cost of $35,000 or less, the city may use the limited public works
process 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.
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.
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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
• Statement that the City is an equal opportunity employer and invites responsive bids from ail
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.
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.
Procurement Policies & ProceduresPage 11 of 21City of Port Orchard
• 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.
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 city 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 Svstems/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
Upon recommendation of the department director, and demonstration that a Change Order is necessary and
reasonable, the department director is authorized to approve any and all Change Orders that do not exceed 10% of the
legally authorized budget limit for the applicable project or contract established by the City Council, with a maximum approval
amount of $50,000. The Mayor is authorized to approve any and all Change Orders that do not exceed 10% of the legally
authorized budget limit for the applicable project or contract established by the City Council, with a maximum approval amount
of $100,000. A completed Change Order form, attached as Exhibit 6, must be filed with the contract.
Change Orders in Excess of City Council Authorized Budget Appropriations.
Procurement Policies & ProceduresCity of Port Orchard Page 12 of 21
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
Mayor and City Council with options as to how to 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 director shall 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.
City of Port Orchard Page 13 of 21 Procurement Policies & Procedures
EXHIBITS
Exhibit 1Budget Adjustment Request
CITY OF PORT ORCHARD
CURRENT YEAR
BUDGET ADJUSTMENT REQUEST
To: City Treasurer Date:
Please transfer the following revenues and/or appropriations:
Increase (to)Decrease (from)
acct. numberacct. number amountcategoryamountcategory
$$
$$
$$
$$
$$
Reason:
Requested By:
(Department Director)
1. To: City Treasurer
Comments:
Not ApprovedApproved Signature
Date:2. To: Mayor
Comments:
Approved Not Approved Signature
3. To: Finance Department Date:
Adjustment Recorded: AJ#Date:
Approved By:Prepared By:
Procurement Policies & ProceduresPage 14 of 21City of Port Orchard
Exhibit 2
Washington State Prevailing Wage Law
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&l) administers the prevailing wage law. The Office of the Attorney General
provides legal counsel to L&l 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.
City of Port Orchard Page 15 of 21 Procurement Policies & Procedures
Awarding Agencies' Responsibilities
1. Contracts for Public Work: Employers are not responsible for making the legal determination of whether a contract
does or does not meet the definition 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)i
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&l and that their premiums are up to date.
Procurement Policies & ProceduresCity of Port Orchard Page 16 of 21
Exhibit 3
Purchase Quotation Sheet
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.!
I Name of Person Requesting:Purchase Order Number: Quote Required By: (Date)(Time)
Commodity:Buyer:
Zip Code:Required Delivery Date:Ship to Address:City: State:
ITEM UNITQTY SPECIFICATIONSNO.i
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:
Unit
Price
Total
Price
Unit
Price
Unit
Price
Total
Price
Total
PricePRODUCT QUOTED PRODUCT QUOTED PRODUCT QUOTED
Total Price Total Price Total Price
City of Port Orchard Page 17 of 21 Procurement Policies & Procedures
Exhibit 4
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:
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.
Licensed, copyrighted, or patented products or services that only one vendor provides.I 11.
New equipment or products that must be compatible with existing equipment or products.[]2.
Proprietary or custom-built software or information systems that only one vendor provides.[]3.
Products or services where only one vendor meets the required certifications or satutaory requirements.[14.
Item Description:
If explanations 4 is used, please provide an explanation below. Explain why the identified vendor is recommended:
Signed Department Director or Designee
Procurement Policies & ProceduresPage 18 of 21City of Port Orchard
Exhibit 5
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.
State OSP Contract No.#:
If a State OSP contract 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 Required Compliance
Does the host agency have a requirement
to run a newspaper ad in their local paper
and did they comply
□ Yes □ No Federal and State contract rules usually don’t
require a newspaper ad. For others, attach the
ad or place into the file
Did they list on a website? If so, state
when and the address. Attach proof if
possible.
□ Yes □ No Always required. Indicate date, address and/or
attach or place into the file.
Did the bid & award comply with the
Host agency’s codes and statutes?
□ Yes □ No If No, you cannot use the bid.
Did bid contain any preference that is
illegal in your statutes such as WMBE
points?
□ Yes □ No If Yes, you cannot use the bid.
City of Port Orchard Page 19 of 21 Procurement Policies & Procedures
Exhibit6
Change Order Form
CITY OF PORT ORCHARD
Authorization for Change Order No.
Contractor:Date:
Project:
Contract / Job #
Brief Description of Change Order work:
Contract History ' 7__Amount Scjg£T TCo! Date Appvdby]
Original Contract
Change Order 1
$0.00Total Contract
I have reviewed the Change Order information above and certify that to the best of my knowledge descriptions and costs
are true and accurate.
Public Works Director/City EngineerContractor Approval Signature
Printed Name & Title Printed Name
Change Orders that do not exceed 10% or a
maxium of $50,000 can be approved by the
Public Works Director.
Approved:
Mayor
Attest:Change Orders that do not exceed 10% or a
maxium of $100,000 are to be approved by the
Mayor.
Change Orders over $100,000 or exceed a total
of 10% require Council action.
City Clerk
Council Approval Date
City of Port Orchard Page 20 of 21 Procurement Policies & Procedures
Exhibit 7
Purchase Order Form
CITY OF PORT ORCHARD
PURCHASE ORDER
P.O. No.
Date:
Bill To:
ship To: City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
Attn: Accounts Payable
City Of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
Ordered By:Authorized Signature:
City Clerk or Authorized Representative Signature
Description Unit Price TotalQty
Subtotal
[Tax (9%)
THIS ORDER IS A CONFIRMATION:Est. Freight
THIS ORDER IS NOT A CONFIRMATION:Shipping
ACCOUNT CODE:Bal Due
Procurement Policies & ProceduresCity of Port Orchard Page 21 of 21