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2013-20 ORDINANCE NO. 2013-20 AN ORDINANCE AMENDING CHAPTER 2, ARTICLE VI,DIVISION 3, OF THE CODE OF THE CITY OF FAIRFAX,VIRGINIA,PERTAINING TO PUBLIC PROCUREMENT OF GOODS AND SERVICES. BE IT ORDAINED, by the City Council of the City of Fairfax, Virginia, that Chapter 2, Article VI, Division 3, Subdivision I, of the Code of the City of Fairfax, Virginia, pertaining to procurement, is hereby retitled as follows: "PROCUREMENT PROCEDURES". BE IT FUTHER ORDAINED, by the City Council of the City of Fairfax, Virginia, that the provisions of Chapter 2, Article VI, Division 3, are hereby repealed in their entirety and replaced with the following numbered sections: "DIVISION 3. PROCUREMENT PROCEDURES Sec. 2-321. Policy. It is the policy of the city to maintain high public confidence in purchasing by the city, to encourage the maximum feasible competition in public purchasing among vendors and or contractors, to administer fairly and equitably purchasing policies among all participants in the procurement process and to obtain high quality goods and services at reasonable cost. Sec. 2-322. —Procedure. In furtherance of the foregoing policy, the city hereby adopts by reference and shall follow the procedures for procurement of goods and services as set forth in and as defined by the Virginia Public Procurement Act, Virginia Code Annotated, section 2.2-4300, et seq. (the "act"), as the same may be amended, except as expressly modified in or supplemented by this division. Sec. 2-323. - Application. (a) This division applies to contracts for the procurement of goods, services, insurance and construction entered into by the city involving every expenditure for public purchasing irrespective of its source. (b) When the procurement involves the expenditure of federal assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory federal law and regulations. Nothing in this division shall prevent the city from complying with the terms and conditions of any grant, gift, or bequest which are otherwise consistent with laws. Sec. 2-324. - Surplus property. (a) All sales of surplus property pursuant to this division section shall be sold on the basis of competitive bids wherever feasible to obtain the highest price. (b) The director of finance may require sealed bids in his discretion. Sec. 2-325. - Effective date of division. This provisions of this division shall be effective July 1, 2013. The provisions of this division shall not apply to those contracts entered into prior to the effective date of this division, which shall continue to be governed by the procurement policies, ordinances and regulations of the city in effect at the time those contracts were executed. Sec. 2-326. - Establishment of purchasing system. There is hereby created a purchasing system to operate under the direction and supervision of the director of finance. Nothing contained in this division shall prevent the city manager from designating a responsible person other than the director of finance to perform the duties of purchasing agent, subject to the direction of the city manager. Sec. 2-327. - Principal public purchasing official. (a) Principal public purchasing official. The director of finance shall serve as the principal public purchasing official for the city and shall be responsible for the procurement of goods, services, insurance and construction in accordance with this division, as well as the management and disposal of supplies. Notwithstanding the foregoing, the city manager is hereby declared to be the official of the city to receive the protest of any bidder or offeror regarding any award or decision to award a contract, as specified in the act. (b) Duties. In accordance with this division, the director of finance shall: (1) Purchase or supervise the purchasing of all goods, services, insurance and construction needed by the city; (2) Exercise general supervision over all other inventories of goods belonging to the city; (3) Sell, trade or otherwise dispose of surplus goods belonging to the city; (4) Establish and maintain programs for specifications development, contract administration and inspection and acceptance, in cooperation with the public agencies using the goods, services, insurance and construction; (5) Establish additional rules and regulations as needed to further the intent of this division; (6) To perform other duties as assigned by the city manager. (c) Powers. The director of finance shall have the power to: (1) Purchase or contract for all goods, services, insurance and construction required by any using agency, except as provided in this division; (2) Ensure the preparation and enforcement of standard specifications; (3) Ensure the inspection of all deliveries of goods, services, or construction purchased through him to determine their conformance with the order of contract; (4) Act to procure for the city the highest quality in goods, services, insurance and construction at reasonable cost and, where practicable, the least expense to the city; (5) Endeavor to obtain as full and open competition as possible on all purchases and sales; (6) Keep informed of current developments in the field of purchasing, prices, market conditions, and new products; (7) Secure for the city the benefits of research done in the fields of purchasing by other governmental jurisdictions, national societies, national trade associations, and by private businesses and organizations; (8) Prepare and adopt standard purchase nomenclature for the using agencies and for goods; (9) Prepare, adopt, and maintain a vendor's file containing catalogues, description of commodities, prices and discounts; (10) Prepare and adopt; consistent with this division and with approval of the city manager, operational procedures relating to the execution of his duties; (11) Maintain a current file of sources of goods, services, insurance and construction to be known as a bidders list to which vendors can request to be included; (12)Not issue any order for delivery on a purchase until it has been certified, after pre- audit, that there is to the credit of the using agencies concerned a sufficient unencumbered appropriation balance, in excess of all unpaid obligations, to defray the amount of such order. Sec. 2-328. - Delegation. With the approval of the city manager, the director of finance may delegate authority to purchase certain goods, services, or construction items to other city employees if such delegation is deemed necessary for the effective procurement of those items. Sec. 2-329. - Unauthorized purchases. Except as provided in this division, no employee or using agency of the city shall purchase or contract for any goods, services, insurance or construction within the purview of this division other than by and through the director of finance and any purchase order or contract made contrary to the provisions of this division is not approved and the city shall not be bound thereby. Sec. 2-330. - Authority to approve purchases. (a) No contract for construction or professional services in excess of$60,000.00 may be awarded without prior approval of city council. (b) Unless otherwise provided in this division, there will be no city council approval needed for any purchases in which funds were budgeted and are still available. The director of finance will be responsible for awarding all purchases up to the amount of $20,000.00. City manager approval is required above that amount. Sec. 2-331. - Cooperative purchasing. The city may participate in, sponsor, conduct or administer a cooperative purchase agreement with one or more other public bodies for the purpose of combining requirements to increase efficiency or reduce administrative expenses. Any joint purchasing between the city and any other public body shall comply with policies and procedures outlined in this division or of the public body as determined by the city and such public body. Sec. 2-332. —Tie bids. (a) In the case of a tie bid, preference shall be given to goods, services and construction produced in the city or provided by persons, firms or corporations of the city, if such a choice is available; or goods, services, and construction produced in the state or provided by state persons, firms or corporations; otherwise the tie shall be decided by lot. (b) Whenever any bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a preference, a like preference may be allowed to the lowest responsible bidder who is a resident of this state. Sec. 2-333. —Sole-source procurement. Upon a determination in writing that there is only one source practicably available for that which is to be procured, and upon concurrence therein by the director of finance, a contract may be negotiated and awarded to that source without competitive sealed bidding or competitive negotiation. The writing shall document the basis for this determination. The city shall issue a written notice stating that only one source was determined to be practicably available, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded, and such notice shall be posted on the city's website. Sec. 2-334. —Emergency purchases. (a) In case of emergency, a contract may be awarded without competitive sealed bidding or competitive negotiation; however, such procurement shall be made with such competition as is practicable under the circumstances as determined by the director of finance. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. The city shall issue a written notice stating that the contract is being awarded on an emergency basis, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded, and such notice shall be posted on the city's website. (b) An emergency shall be deemed to exist when a breakdown in machinery or equipment and/or threatened termination of essential services or a dangerous condition develops, or when any unforeseen circumstances arise or exist causing curtailment or diminution of an essential service, or where material or services are needed to prevent loss of life or property. • Sec. 2-335. - Small purchases. Any single or term contract not expected to exceed $60,000.00 in the aggregate may be made for goods and services other than professional services without competitive sealed bidding or competitive negotiation, in accordance with small purchase procedures administered by the director of finance. Notwithstanding the foregoing, contract requirements shall not be artificially divided so as to constitute a small purchase under this section. Insofar as is practical, competition is to be encouraged even for small purchases made under this section, and where possible, no fewer than three (3) businesses or individuals shall be solicited to submit quotations. These solicitation requirements do not apply for purchases under $5,000.00. Sec. 2-336. -Waiver of informalities. The director of finance may waive any informalities in bids." This ordinance shall become effective as provided by law. INTRODUCED: September 10, 2013 PUBLIC HEARING: September 24, 2013 ENACTED: September 24, 2013 /7'Y-t°44C2(•"(14044 . Mayor 9727 ate ATTEST: jit / City Clerk Votes Councilman DeMarco Aye Councilman Drummond Aye Councilman Greenfield Absent Councilman Meyer Aye Councilmember Schmidt Aye Councilman Stombres Aye