Ordinance 2019-4256 ORDINANCE NO. 2019-4256
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY'S
PROCUREMENT ORDINANCE, AS CODIFIED IN SECTIONS 2-312
THROUGH 2-396 OF DIVISIONS 1 THROUGH 4 OF ARTICLE VI,
ENTITLED "PROCUREMENT," OF CHAPTER 2 OF THE CITY CODE,
AMENDING SECTIONS 2-312 THROUGH 2-315 THEREOF, TO
PROVIDE FOR DEFINITIONS AND UPDATED PROCEDURES FOR
ENCUMBRANCES OF FUNDS AND THE SALE, TRANSFER, OR
EXCHANGE OF SURPLUS GOODS; AMENDING SECTIONS 2-336
THROUGH 2-343 THEREOF, TO PROVIDE UPDATED PURCHASING
AUTHORITY PROCEDURES; AMENDING SECTIONS 2-366 THROUGH
2-374 THEREOF, TO INCREASE THE FORMAL BID THRESHOLDS FOR
PROCUREMENT OF GOODS AND SERVICES, PROVIDE EXEMPTIONS
FROM FORMAL BID REQUIREMENTS FOR CERTAIN SPECIFIED
PROFESSIONAL SERVICES AND SOLE SOURCE PURCHASES,
STREAMLINE CITY'S CONTRACT AND BID PROTEST PROCEDURES,
AND AUTHORIZE A PRE-QUALIFICATION PROGRAM FOR
CONSTRUCTION BIDDERS; AND AMENDING SECTIONS 2-366
THROUGH 2-374 THEREOF, TO PROVIDE UPDATED PROCEDURES
FOR OPEN MARKET PURCHASES, COOPERATIVE PURCHASING,
AND EMERGENCY PURCHASES; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
WHEREAS, the City's Procurement Department is responsible for managing the
solicitation, contracting and acquisition process for the goods and services that support
the accomplishment of the policies and service levels established by the City
Commission, and which are necessary for the effective administration of the City; and
WHEREAS, the Administration and the City Commission desire to update and
streamline the procurement process necessary for the award of contracts in order to
expedite projects and achieve efficiencies; and
WHEREAS, on June 29, 2018, the Finance and City-Wide Projects Committee
(the "Finance Committee") discussed a number of options for streamlining the
procurement process to make it easier for vendors to do business with the City, and for
expediting the process for awarding projects; and
WHEREAS, on October 26, 2018, the Finance Committee recommended that the
City Commission approve (1) the increase of the formal bid thresholds for services from
$50,000 to $100,000; (2)the increase of the formal bid thresholds for construction-related
services from $50,000 to $200,000; and (3) update the City's Procurement Code to
remove any outdated sections and improve the procurement process;
WHEREAS, on November 7, 2018, the Mayor and City Commission adopted
Resolution No. 201.8-30605, accepted the Finance Committee's recommendations, and
directed the Administration to develop the proposed amendments.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Sections 2-312 through 2-315 of Division 1, of Article VI, of Chapter 2
of the Code of the City of Miami Beach are hereby amended as follows:
CHAPTER 2
ADMINISTRATION
ARTICLE VI. PROCUREMENT
* * *
DIVISION 1. GENERALLY
* * *
Sec. 2-312. - Definitions.
The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
Bid means an offer or proposal submitted by a bidder in response to any formal
bid or solicitation.
Bidder means any individual or firm submitting a bid or proposal in response to any
formal bid or solicitation.
Construction means work intended to build, improve, renovate, restore, alter,
repair or demolish a city building or physical infrastructure asset.
Construction-related services mean those contractual services necessary for the
implementation or completion of a construction prosect including, but not limited to, the
following services: architecture/engineering, construction manager, design build, general
contractor, geotechnical and laboratory testing, owner's representative, construction
engineering and inspection, program manager and all subcontractor trades.
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service, towel and cleaning service, insurance, and other like services. The term
"services"shall not include professional services unique in their nature and not subject to
competition.
Exempt professional services means those contractual services that are unique in
their nature and not subject to formal solicitation requirements includinq, but not limited
to, those services delineated as exempt professional services under Florida Statute
287.057, as same may be amended from time to time.
Formal bid or formal solicitation means an invitation to bid (ITB), request for
proposals (RFP), request for qualifications (RFQ) or invitation to negotiate (ITN) issued
with the purpose of invitinq prospective bidders to submit bids or proposals for the City's
consideration for the purchase of qoods or services with a cost estimated to be greater
than the amount established in section 2-366(a)for formal bids for such goods or services.
Goods means all supplies, materials and equipment.
Responsible bidder means a bidder that has the integrity, reliability, capacity and
capability in all respects to fully perform the contract requirements, in accordance with
Florida law and, without limitation, the criteria set forth in section 2-369 of this article.
Responsive Bidder means a bidder that has complied with the material
requirements of the a formal bid or solicitation in accordance with Florida law.
Services means all services procured by the city, includinq consulting services,
professional services, construction-related services, technology services, or services
related to the maintenance, repair, management or operation of any city asset.
Sole-source purchase means qoods or services for which the availability of more
than one vendor who could compete as a prospective bidder is precluded.
Using agency means any department, agency, commission, board, committee,
authority, or other unit in the city government using supplies or procuring goods or
contractual services as provided for in this article.
Sec. 2-313. Requisition and estimates.
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(a) All using agencies either by or with the authorization of the head of the
department under which the using agency operates shall file with the
procurement director detailed requisitions or estimates of their requirements
in supplies and contractual goods or services in such manner, at such times,
and for such future period as the procurement director shall prescribe.
(b) A using agency shall not be prevented from filing, in the same manner, with
the procurement director at any time a requisition or estimate for any
_ _ _ - _ _ • - _ _ goods or services, the need for which was not
foreseen when the detailed estimates were filed.
Sec. 2-314. Encumbrance of funds.
Except in cases of emergency, the procurement director shall not issue any order
for delivery on a contract or open market purchase until either the director of finance or
e- ' _ _ . _ - e•- • e chief financial officer has shall have certified,after preaudit,
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. 2-315. Surplus stock—Transfer, sale, auction, exchange, trade and donation.
(a) Submittal to city manager or his designee. All city departments shall submit
to the city manager o designee, at such times and in such form as the
city manager or-his designee shall prescribe, reports showing all surplus
stock ., _ _ _ . - , _ - _ - 'e _ 'e -.* "'' of goods that are no
longer used or that have become obsolete, worn out or scrapped.
(b) Transfer. The city manager or his designee shall have the authority to
transfer surplus stock to other city departments.
(c) Sales or auctions. The city manager or--14is designee shall have the authority
to sell all surplus stock that has become unsuitable for public use. Sales
under this section shall be made to the highest responsive and responsible
bidder and in conformance with competitive conditions.
(d) Exchanges or trades. The city manager or-his designee shall have the
authority to exchange or trade in surplus stock that does not exceed a
replacement value of $25,000.00the amount established in section 2-
366(a)(1) of this article for formal bids. City commission approval shall be
obtained if the replacement value of the item to be exchanged or traded
exceeds $25,000.00the amount established in section 2-366(a)(1) of this
article for formal bids.
(e) Donations. The city manager or-his-designee shall have the authority to
donate surplus stock to another governmental entity, agency, or not-for-
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profit organization without placing the surplus stock for public sale if the
donation serves a charitable or public purpose, the donation-is in the best
interest of the city, and the value does not exceed a replacement value of
$25,000.00the amount established in section 2-366(a)(1) of this article for
formal bids. In such case, the city manager shall, after the fact, disclose to
the city commission the value, condition, intended use of the surplus stock;
Donations with a replacement value in excess of'$25,000.00the amount
established in section 2-366(a)(1) of this article for formal bids must be
approved by the city commission. In such latter case, prior to donation, the
city manager shall disclose the value, condition, and intended use of the
surplus stock, and the manner in which the donation servcs the best interest
of the city. As to all donations, preference shall be given to donees within
the city.
SECTION 2. That Sections 2-336 through 2-343 of Division 2, of Article VI, of Chapter 2
of the Code of the City of Miami Beach are hereby amended as follows:
CHAPTER 2
ADMINISTRATION
ARTICLE VI. PROCUREMENT
* * *
DIVISION 2. - PROCUREMENT DIRECTOR
Sec. 2-336. Position created.
There, is hereby created the position of procurement director, who shall be
supervisor of the procurement divisiondepartment, shall perform all duties required by law
and such other duties as assigned by the city manager, and shall have the powers and
duties prescribed by this division.
* * *
Sec. 2-338. Scope of purchasing authority.
The procurement director shall have the following powers and duties:
(1) Purchase or contract. To perform the duties specified in this article
in connection with the purchase or contract for purchases of all
current supplicodoods and contractual services needed by any using
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agency deriving its support wholly or in part from the city, when duly
authorized, in accordance with purchasing procedures as prescribed
by this article and such rules and regulations as may be adopted for
the internal management and operation of the procurement
department division and such other rules and regulations as shall be
prescribed by the city manager.
(2) Exceptions prohibited. The authority of the procurement director to
{3)(2) Unauthorized purchases. Except as provided in this article, it shall
be unlawful for any city officer or other person to order the purchase
of any material or cupplicsgoods or services, or make any contract
for municipal materials or cupplicsgoods or services, within the
purview of this article other than through the procurement
departmentdivision, and the city shall not be bound by any purchase
order or contract made contrary to the provisions in this article.
Sec. 2-339. Other powers and duties generally.
In addition to any other powers and duties conferred by this article, the
procurement director shall:
(1) Minimum expenditure. Act to procure for the city the highest quality
in supplies and contractual services at least expense to the city.
(2) Encourage competition. Discourage uniform bidding and endeavor
to obtain as full and open competition as possible on all purchases
and sales.
(3) Rules and regulations. Enforce all rules and regulations authorized
by this article and any others necessary to its operation not in conflict
with this article.
(4) Purchasing analysis. Keep informed of current developments in the
field of purchasing, prices, market conditions and new products, and
secure for the city the benefits of research conducted in the field of
purchasing by other governmental jurisdictions, national technical
societies, trade associations having national recognition, and by
private businesses and organizations.
(5) Procedures. Prescribe and maintain a manual of purchasing
procedures and provide same for all using agencies.
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(6) Forms. Prescribe and maintain such forms as he the procurement
director shall find reasonably necessary to the operation of this
article.
(7) Standard nomenclature. Prepare and adopt a standard purchasing
nomenclature for using agencies and suppliers vendors.
. sate
file. Such catalog shall be filed according to materials and shall
(9)(8) Bulk purchases. Exploit the possibilities of buying "in bulk" so as to
take full advantage of discounts.
{10)(9) Tax exemptions. Act so as to procure for the city all tax exemptions
to which it is entitled.
(11)(10) Cooperation. Cooperate with using agencies so as to secure for the
city the maximum efficiency in budgeting and accounting.
{12) Disqualification of bidders. Have the authority to declare vendors
{x)(11) Revisory power. Examine each requisition or estimate and shall have
the authority to revise it as to quantity or quality, but revision as to
quality shall be in accordance with any standards or specifications
established pursuant to this article. The procurement director shall
further have the authority to require from the requesting using agency
any justification as may be needed to ascertain that the contemplated
purchase falls within acceptable city requirements.
* * *
Sec. 2-341. Inspection and testing.
(a) Inspection by using agency. Required. The procurement director Each
using agency shall inspect or supervise the inspection of or cause to be
inspected all deliveries of euppliesgoods or contractual services to
determine their conformance with the specifications set forth in the order or
contract, and/or pursuant to such procedures as may be prescribed by the
procurement director.
authority to authorize using agencies having the staff and facilities for
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under rules and regulations the procurement director shall prescribe.
(c) (b) Tests. The procurement director shall have the authority to require chemical
and physical test of samples submitted with bids and samples of deliveries
necessary to determine their quality and conformance with the
specifications. In the performance of such test, the procurement director
the city government or of any outside laboratory.
(a) General control. The procurement director shall control and supervise
(b) Accounting procedure. Requisitions from supplies in a storeroom or
revolving fund by a charge against the appropriation of the using agency.
(c) Inventory. The procurement director shall maintain a perpetual inventory
record of all materials, supplies or equipment stored in storerooms and
warehouses.
* * *
SECTION 3. That Sections 2-366 through 2-374 of Division 3, of Article VI, of Chapter 2
of the Code of the City of Miami Beach are hereby amended as follows:
CHAPTER 2
ADMINISTRATION
* * *
ARTICLE VI. PROCUREMENT
* * *
DIVISION 3. CONTRACT PROCEDURES .
Sec. 2-366. Generally.
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•
(a) Formal Bid Thresholds. Unless otherwise established in this article or by
law, the purchase of goods or services in excess of the dollar thresholds
established in this subsection shall be made following a formal bid process
in accordance with section 2-366(b) of this article. The bid thresholds are
as follows:
(1) Goods and services: $100,000.
(2) Construction-related services: $300,000.
(a)(b) Formal bids required. Except as otherwise provided in section 2-366(c) of
this article, formal bids shall be required when the estimated cost of any
supplies goods or services exceeds - _ _ _ _ •- - , - _ _ _ - -
provided in this division, when the estimated cost thereof shall exceed
$50,000.00 the formal bid thresholds established in subsections 2-366(a)(1)
or 2-366(a)(2), as applicable, and such goods or services shall be
purchased by formal, written contract and/or purchase order, after due
notice inviting proposals; however, the city commission shall have authority
to do so. All sales of personal property (except trade-in personal property)
which has.become obsolete and unusable, when the estimated value shall
exceed $50,000.00the formal bid threshold established in section 2-
366(a)(1), shall be accomplished by formal written contract to the highest
bidder, after due notice inviting proposals has been published as required
by law. The thresholds established herein for formal bids shall be indexed
----- . • - e .
the corresponding increase(rounded to the closest$1,000.00) in the United
• • _ • • _
Index for the local area.
(c) Formal bids shall not be required for:
(1) The purchase of goods or services at amounts below the bid
thresholds established in section 2-366(a)of this article. Such goods
or services shall be purchased in accordance with section 2-395 of
this article;
(2) Exempt professional services, which shall be procured by direct
negotiation, and awarded in accordance with section 2-369 of this
article; or
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(3) Sole source purchases, which shall be procured in accordance with
section 2-367(d) of this article.
(b)(d) Notice inviting bids.
(1) NewspaperPublishing Notice. Notice inviting formal bids shall be
published once in at least one official newspaper having general
distribution in the city, or distributed electronically, and at least five
0) working days preceding the last day set for the receipt of
proposals.
(2) Scope of notice. The newspaper notice required in subsection
(#)(e)(1) of this section shall include a general description of the
articicsgoods or services to be purchased or sold, and shall state
where bid blanks bid documents and specifications may be
securedaccessed, and the time and place for opening submittal of
bids.
(3) Bidders'list. The procurement director shall also solicit sealed bids
from all responsible prospective suppliers vendors who have
requested their names to be added to a bidders' list the procurement
director shall maintain, by sending them a copy of such newspaper
notices or such other notice as will acquaint them with the proposed
purchase or sale. In any case, invitations sent to the vendors on the
bidders' list shall be limited to commodities that are similar in
character and ordinarily handled by the trade group to which the
invitations are sent.
(c)(e) Bid deposits. When deemed necessary by the procurement director, bid
deposits or bid bonds shall be prescribed in the public notices inviting bids.
Unsuccessful bidders shall be entitled to return of surety a bid deposit or
bid bond within sixty (60) days following the city commission's award of the
bid (or rejection of all bids), where the procurement director has required
y such bid deposit or bid bond. A successful bidder awarded a contract
shall forfeit any curctybid deposit or bid bond -e -. - - . - - - _ - •---
director upon the bidder's failure on-his part to enter a contract within thirty
(30) days after the award of the contract to the successful bidder, unless
such date is extended by the procurement director for the purpose of
finalizing contract negotiations, if applicable.
(d)f Submission and opening of bids.
(1) Sealed bids. Bids shall be submitted sealed to the procurement
director and shall be identified as bids on the outside of the envelope.
(2) Opening. Bids shall be opened in public at the time and place stated
in the public notices (as such date may be amended by addendum
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to the formal bid documents) or to a publicly announced continued
time certain for such lawful reason approved by the city attorney, and
shall be witnessed and certified.
(3) Tabulation. A tabulation of all bids received shall be made and shall
be available for public inspection.
(g) Prequalification of bidders for construction contracts. The city manager
shall establish a policy for the prequalification of contractors performing
construction work, subject to the requirements of Section 255.20, Florida
Statutes, as applicable. The policy shall provide that a contractor that has
been deemed to be pre-qualified by the Florida department of transportation
shall be presumed to be pre-qualified for the same category of work under
the city's pre-qualification policy. A contractor's prequalification status may
be revoked if a contractor no longer meets the pre-qualification criteria
established in the pre-qualification policy, or if the contractor fails to perform
satisfactorily under any existing city contract, as determined by the city
manager at the city manager's sole discretion. At a minimum, the policy for
the prequalification of contractors shall consider whether the contractors
meet the city's minimum requirements with respect to the category of work
for which the contractor will be prequalified, including the following, as may
be applicable:
(1) satisfaction of all applicable licensure requirements of the State of
Florida and/or Miami-Dade County;
(2) successful completion of at least one (1) project, similar to the
category or scope of work for which the contractor will be
prequalified, including, without limitation, with respect to the quality
of completed work, and the contractor's schedule performance within
the time periods required for completion;
(3) submission of relevant project personnel qualifications and
experience;
(4) proof of sufficient bonding capacity to secure the applicable
performance bond and payment bond;
(5) proof of capacity to meet city's insurance requirements;
(6) evidence of financial capacity;
(7) record of safety performance; and
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(8) a certified litigation history for the three (3) previous years that
includes all claims asserted against the contractor, settlements, and
judgments.
Sec. 2-367. Rejection of bids; negotiation; sole source purchases; waiver of
competitive bidding.
(a) Except as further provided under subsections 2-367(b) and (c), generally, if
a bid is equal to or less than the amount established in this article for formal
bids, the city manager shall have the authority to reject any and all bids.
(b) Where only one responsive bid response is received, and/or the responsive
bid(s) received exceedis. the budgeted amount, the city manager, without
any action by the city commission, shall have the power to select one of the
following options:
(1) Reject the bid(s) and, if he determines that same is in the best
interest of the city, re-advertise the item for bidding; or
•
(2) Request that the city commission make additional funds available
and proceed to negotiate an agreement with the sole or lowest
responsive bidder, and the award of the final negotiated contract
shall be subject to the prior approval of the city commission.
(c) Notwithstanding subsection 2-367(b), in bids for municipal construction
projects, where the lowest and best bid exceeds the budgeted amount
allocated toward the construction cost of the project, the city manager,
without any action by the city commission, shall have the power to negotiate
an agreement with the lowest and best bidder exceeding the budgeted
amount of the work. If the city manager is unable to successfully negotiate
an agreement with the lowest and best bidder, the city manager may
terminate negotiations with such bidder and commence negotiations with
the second lowest and best bidder. If the city manager is unable to
successfully negotiate an agreement with the second lowest and best
bidder, the city manager may terminate negotiations with the second bidder
and commence negotiations with the third lowest and best bidder. The
award of the final negotiated contract shall be subject to the prior approval
of the city commission.
(d)
applicable, this article for formal bids, or The city commission, by simple
majority vote, for goods or services contracts in excess of the amount
established in this article for formal bids, shall have the power to negotiate
those contracts and purchases where only one source for the product or
service is evident. A e - e _ - e. - - _ e- e- .--e _ e e__ _ e
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bidders is precluded.
(1) Before any sole-source purchase can be made, the using agency
shall submit justification in writing, together with all supporting
documentation, to the procurement director, stating that the
proposed supplier is the only source of supply of the desired goods
and/or services, and that there is no other supplier or authorized
repair/service center (as applicable). The supporting documentation
shall include a written quotation with terms and conditions of sale. In
addition, the using agency shall obtain the written determination from
an industry expert or consultant that the item or service is the only
one available to fulfill the city's need. For purposes-ef this article,
trademarks alone, and commodity type products, lacking
differentiating characteristics from simila-r-produce, shall not be
considered for sole-source purchases.
(2) In the alternative to the requirements of section 2-367(d)(1), the
procurement department may establish that an item or service is a
sole source purchase by issuing a public notice of the City's intent to
enter a sole source contract, to permit a prospective bidder to rebut
the proposed sole-source determination. A contract may be awarded
asa sole source purchase pursuant to this section if no responses
to the notice of intent to enter into a sole source contract are
received, or if the procurement director determines, at the
procurement director's discretion, that no other supplier or vendor is
capable of providing the requested goods or services. For or the
purposes of this article, and commodity type products, lacking
differentiating characteristics from similar products, shall not be
considered for sole-source purchases, and the fact that a good or
service is trademarked shall not alone serve as a basis for a sole
source purchase.
(e) Unless prohibited by law, the city commission, upon written
recommendation of the city manager may, by resolution adopted by a upon
- e•• ••--e - - - - - - - -- - - - •- -- - - - - - upon
five-sevenths vote of the city commission, waive competitive bidding
requirements for goods and services when the city commission finds such
waiver to be in the best interest of the city. In the event of such a waiver the
city commission may authorize the execution of a negotiated contract for
such goods or services. The city commission shall not waive the
competitive bidding requirement, and shall not award a contract for goods
or services, without first providing the city manager with the opportunity to
submit an advisory written recommendation with respect to the proposed
waiver of competitive bidding. Notwithstanding the preceding, following
receipt of the city manager's non-binding written recommendation, the city
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commission may waive the competitive bidding requirement if it determines
the waiver is in the best interest of the City.
Sec. 2-368. Waiver of minor irregularities.
The city commission shall have the authority to waive any and all minor, non-
material irregularities in any and all formal bids.
Sec. 2-369. Award of contract.
All contracts, when the sum is equal to or less than the amount established in
section 2-366 of this article for formal bids shall be awarded by the city manager, or his
designee, to the lowest and best bidder. When the amount of a contract is in excess of
the amount established by this article for formal bids, the city commission shall award the
contract to the lowest and best bidder, or may delegate to the city manager the power to
award such contract to the lowest and best bidder; however, the purchase of
commodities, materials, supplies or other items goods and services on a continuing basis
from Miami-Dade County; from the School Board of Miami-Dade County; from the U.S.
Communities Government Purchasing Alliance; from state or federal general services
administration bid lists; or awards from cooperative alliances or public entities that have
utilized a public procurement process may be approved by the city manager without any
action by the city commission, even though the total cost of such goods and services
commodities, materials, supplies or other items may exceed the amount established in
this article for formal bids r a one-year period; provided that prior to approval of such
purchases, the city manager shall prepare, or cause to be prepared, a written analysis, in
such form and manner as shall be determined by the city manager, which shall include a
justification as to why it is in the city's best interest to purchase the goods and services
particular commodities, materials, supplies, or items on a continuing basis from the
entities set forth in this section 2-369. In determining the lowest and best bidder, in
addition to price, there shall be considered the following:
(1) The ability, capacity and skill of the bidder to perform the contract.
(2) Whether the bidder can perform the contract within the time
specified, without delay or interference.
(3) The character, integrity, reputation, judgment, experience and
efficiency of the bidder.
(4) The quality of performance of previous contracts.
(5) The previous and existing compliance by the bidder with laws and
ordinances relating to the contract.
Sec. 2-370. A - - e e • - - - • - • - • - - - -
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(a) When a contract award is not givenawarded to the lowest bidder, a full and
complete statement of the reasons for placing the order elsewhere shall be
prepared by the procurement director, included in the minutes typed 0-11-the
tabulation sheet, which must be signed by the procurement director and
filed with the other papers relating to the transaction.
(b) Award of all tie bids equal to or less than the amount established in this
Sec. 2-371. Authority to resolve protested bids and proposed awards.
(a) Right to protest. Any actual bidder, _ _ _ ' _ _ _ __ - , _ - - - -
--
"- • - _ - - - -_ e _ - "_ __ " who has a substantial
interest in, and is aggrieved in connection with,the solicitation or proposed
award of, a formal bid or solicitation, request for proposals ("RFP"), request
or invitation to negotiate ("ITN"), ("hereinafter, collectively referred to as the
bid")may protest to the city manager or his or her designee. Protests arising
from the decisions and votes of any evaluation or selection committee shall
be limited to protests based upon alleged deviation(s) from established
purchasing procedures set forth in this Code, any written guidelines of the
procurement department, and the specifications, requirements and/or terms
set forth in any bid. '
(1) Any protest concerning the bid specifications, requirements, and/or
terms, must be made - - • -- _. - . -- _- -- - .
this section, "business day" means a day other than Saturday,
and, in any case, at least ten (10) seventeen business days (for the
purposes of this section, "business day" means a day other than
Saturday, Sunday or a national holiday) prior to the opening of the
bid. Such protest must be made in writing to the city manager or the
city manager's designee or his or her designee, and such protest
shall state the particular grounds on which it is based and shall
include all pertinent documents and evidence. No bid protest shall
be accepted unless it complies with the requirements of this section.
Failure to timely protest bid specifications, requirements and/or
terms, is a waiver of the ability to protest the specifications,
requirements and/or terms.
(2) Any protest after the bid opening, including challenges to actions of
any evaluation or selection committee as provided in subsection (a)
above shall be submitted in writing to the city manager, or his or her
designee. The city will allow such bid protest to be submitted anytime
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until two (2) business days following the rel scissuance of the
notice by the procurement director to responsive bidders of the city
manager's written recommendation to the city commission for award
of the bid in question. Such protest shall state the particular grounds
on which it is based,and shall include all pertinent grounds on which
it is based, and shall include all pertinent documents and evidence.
No bid protest shall be accepted unless it complies with the
requirements of this section. All actual bidders shall be notified in
as facsimile transmission and/or c mail), following the rel ase of the
city manager's written recommendation to the city commission.
(3)Any protest concerning a bidder's responsiveness to the requirements
of the formal bid documents must be submitted within two (2)
business days following the procurement director's issuance of a
notice of non-responsiveness to the bidder.
(b) Reserved.
(c) The city may request reasonable reimbursement for expenses incurred in
processing any protest hereunder, which expenses shall include, but not be
limited to, staff time, legal fees and expenses (including expert witness
fees), reproduction of documents and other out-of-pocket expenses.
(d) Authority to resolve protests. The city manager or his or her the city
manager's designee shall have the authority to settle and resolve a protest
concerning the solicitation or award of a bid.
(e) Responsiveness. Prior to any decision being rendered under this section
with respect to a bid protest, the city manager and the city attorney, or their
respective designees, shall certify whether the submission of the bidder to
the bid in question is responsive. The parties to the protest shall be bound
by the determination of the city manager and the city attorney with regard
to the issue of responsiveness.
(f) Decision and appeal procedures. If the bid protest is'not resolved by mutual
agreement, the city manager andor the city attorney, or their respective
designees, shall promptly issue a decision in writing. The decision shall
specifically state the reasons for the action taken and inform the protestor
of his or her right to challenge the decision. Any person aggrieved by any
action or decision of the city manager, or the city attorney, or their respective
designees, with regard to any decision rendered under this section may
appeal said decision by filing an original action in the Circuit Court of the
Eleventh Judicial Circuit in and for Miami-Dade County, Florida, in
accordance with the applicable court rules. Any action not brought in good
faith shall be subject to sanctions including damages suffered by the city
and attorney's fees incurred by the city in defense of such wrongful action.
16
(g) Distribution. A copy of each decision by the city manager and/or the city
attorney shall be mailed or otherwise furnished immediately to the protestor.
(h) Stay of procurements during protests. In the event of a timely protest under
this section, the city shall not proceed further with the solicitation or with the
award pursuant to such bid unless a written determination is made by the
city manager, that the award pursuant to such bid must be made without
delay in order to protect a substantial interest of the city.
(i) The institution and filing of a protest under this Code is an administrative
remedy that shall be employed prior to the institution and filing of any civil
action against the city concerning the subject matter of the protest.
(j) Protests not timely made under this section shall be barred. Any basis or
ground for a protest not set forth in the letter of protest required under this
section shall be deemed waived.
(k) A - - - ' -- - e------e. - - - • - - - _ -
with the bid in question.
(1) The determination of the city manager and the city attorney with regards to
all procedural and technical matters shall be final.
Sec. 2-374. Procedure to provide preference to veterans in contracts for goods and
contractual services.
(1) Definitions. For purposes of this section only, the following definitions shall
apply:
(a) Bid shall mean a competitive procedure established by the city
through the issuance of .an invitation to bid (ITB), request for
proposals (RFP), request for qualifications (RFQ), request for lcttcrs
of-interest (RFLI), invitations to negotiate (ITN), or the solicitation of
purchase orders based on oral or written quotations.
(b) Certified service-disabled veteran business enterprise means an
independently owned and operated business, domiciled in Florida,
and as further defined under Section 295.187(3)(c) of the Florida
Service-Disabled Veteran Business Enterprise Opportunity Act, as
same may be amended from time to time, that has been certified by
17
the Florida State Department Management Services to be a service-
disabled veteran business enterprise.
(c) Service-disabled veteran means a veteran who is a permanent
Florida resident with a service-connected disability, as determined
by the United States Department of Veterans Affairs, or who has
been terminated from military service by reason of disability by the
United States Department of Defense.
(d) Service-disabled business enterprise means an independently
owned and operated business, domiciled in Florida, and as further
defined in Section 295.187(3)(c) of the Florida Service-Disabled
Veteran Business Enterprise Opportunity Act, as same may be
amended from time to time.
(e) Small business concerns owned and controlled by veterans means
those independently owned and operated small businesses, as
defined in Section 502 of the Veterans Benefits, Health Care, and
Information Technology Act of 2006, as same may be amended from
time to time, which are also domiciled in Florida, and listed in the
federal database of veteran-owned businesses.
(f) Veteran means a person who served in the active military, naval, or
air service and who was discharged or released therefrom under
honorable conditions. For purposes of this section, the definition of
"veteran" shall adopt the same definition as provided therefor in F.S.
§ 1.01(14), as same may be amended,from time to time.
(2) Preference in purchase of goods or contractual services.
(a) ITBs and requests for oral or written qualifications. The city, when
considering two or more bids submitted pursuant to an ITB or an oral
or written request for quotations for the purchase of goods or
contractual services shall give a preference to a responsive and
responsible bidder which is a small business concern owned and
controlled by a veteran(s) or which is a service-disabled veteran
business enterprise, and which is within five percent of the lowest
and best bidder, by providing such bidder an opportunity of providing
said goods or contractual services for the lowest responsive bid
amount. Whenever, as a result of the foregoing preference, the
adjusted prices of two or more bidders which are a small business
concern owned and controlled by a veteran(s) or a service-disabled
veteran business enterprise constitute the lowest bid pursuant to an
ITB or oral or written request for quotation, and such bids are
responsive, responsible and otherwise equal with respect to quality
and service, then the award shall be made to the service-disabled
veteran business enterprise.
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(b) Request for proposals, request for qualifications, and rcquest for
letters of interest, and invitations to negotiate. The city commission,
or the city manager (in .instances where such action has been
delegated to the manager), in considering, determining, and/or
approving the evaluation methodology, selection criteria, and/or
other factors determined by the city to [be] applicable in the
recommendation and selection of proposers submitting responses
pursuant to an RFP, or RFQ, or RFLIITN, as appropriate, shall
include (as part of such evaluation methodology, selection criteria,
and/or other applicable factors to be setforth and included within the
RFP, RFQ, or RFLI documentlTN) and give an additional five points
(where the evaluation methodology is based on points system from
0-100 points), or an additional five percent (where the evaluation
methodology is based on a percentage system 0-100 percent), to
proposers which are a small business concern owned and controlled
by a veteran(s) or a service-disabled veteran business enterprise.
The additional points shall be applied by the city's procurement
division to Miami Beach-based vendors following the completion of
the allocation of points by the evaluation committee.
(3) Comparison of qualifications. The preferences established herein in no way
prohibit the right of the city manager and/or mayor and city commission, as
applicable, to compare quality of goods,:and/or contractual services
proposed for purchase and compare qualifications, character, responsibility
and fitness of all persons, firms, or corporations submitting bids. Further,
the preferences established herein in no way prohibit the right of the city
manager and/or the mayor and city commission, as applicable, from giving
any other preference permitted by law in addition to the preferences granted
herein.
(4) The city manager may waive the requirements of this section in the city
manager finds such a waiver to be required for federal, state, or Miami-Dade
County funding eligibility purposes.
SECTION 4. That Sections 2-391 through 2-396 of Division 4, of Article VI, of Chapter 2
of the Code of the City of Miami Beach are hereby amended as follows:
CHAPTER 2
ADMINISTRATION
* * *
19
•
ARTICLE VI. PROCUREMENT
DIVISION 4. PURCHASES
Sec. 2-391. Standardization and cooperative purchasing.
(a) Where standardization is determined to be desirable by the procurement
director, the purchase of materials, supplies and equipment and
certainqoods and contractual services may be by negotiation with the
written approval of the city manager, and subject to city commission
approval for goods and services at amounts in excess of the formal bid
thresholds established in section 2-366 of this article.
(b) The procurement director shall have the authority to join with other units of
governments in cooperative purchasing ventures when the best interest of
the city would be served thereby, and the same is in accordance with the
city and state law.
* * *
Sec. 2-393. Unauthorized purchases.
(a) Purchases to be made only by procurement director. It shall be unlawful for
any city officers or employees to order the purchase of any materials,
supplies equipmentpoods and certain contractual services, or make any
contract within the purview of this article other than through the procurement
director, and any purchase, order or contract made contrary to the
provisions of this article shall not be approved and the city shall not be
bound thereby.
to the above-previsions except as may be specifically authorized by the city
manager in writing, stating the reasons for such exccptions.
(c)(b) Emergency. This section shall not apply to any emergency purchasesa,
which shall be made in accordance with section 2-396 of this article.
justification by the using agency.
* * *
Sec. 2-395. Open market procedures.
20
All purchasingThe purchase of suppliesgoods and-certactual services of with a
total estimated value not exceeding the amount established in this section 2-366 of this
article for formal bids may be made in the open market without newspaper advertisement
and without observing the procedure prescribed by this article for formal purchasing or
sales procedures.
(1) Minimum number of quotes for goods. All open market procedures
purchases of goods or sales shall, whenever possible, be based on
at least three competitive bids and shall be awarded to the lowest
responsive and responsible bidder in accordance with the standards
set forth in this article or to the highest responsive and responsible
bidder in case of a sale.
(2)
reasonably available and current bidders and supply lists. Minimum
number of proposals for services. All open market purchases of
services shall, whenever possible, be based on at least three
competitive bids and shall be awarded to the responsive and
responsible bidder offering the best combination of qualifications,
services and cost _ e _ - -- • - -- _ _ - _ - _ - -
(3) Public record. The procurement director shall establish procedures
for keeping a record of all open market bids submitted in competition
thereon accordance with this article, and such records shall be open
to public inspection.
(4) Reporting. The procurement director shall report to the city
commission, on a monthly basis, all goods or services purchased in
excess of$50,000 in accordance with this article.
Sec. 2-396. Emergency purchases.
(a) City manager. In case of an apparent public emergency,, requiring
immediate purchase of suppliespoods or contractual service, the city
manager shall be empowered to (1) procure any goods and services, in any
amount, which may be necessary to protect and preserve the health,
welfare or safety of the city, and further; or (2) authorize the procurement
director to secure by open market procedure at the lowest obtainable price,
any supplicsgoods or contractual services not exceeding$25,000.00the bid
thresholds established in section 2-366 of this article for formal bids, as
applicable. -- •
action All emergency purchases of goods or services in excess of the bid
thresholds set forth in section 2-366 of this article shall be reported at the
21
next regular meeting of the city commission when supplies or services
exceed $25,000.00.
(b) Head of department. In case of actual emergency, and with the prior
consent of the procurement director, and the prior approval of the city
manager, the head of any using agency may purchase directly any supplies
goods and services whose immediate procurement is essential to prevent
delays in the work of the using agency that may vitally affect the life, health
or convenience of citizens. The head of such using agency shall send to the
procurement director a requisition and a copy of the delivery record,
together with a full written report of the circumstances of the emergency.
SECTION 5. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 6. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 7. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach,
and it is hereby ordained that the provisions of this ordinance shall become and be made
part of the Miami Beach City Code. The sections of this ordinance may be renumbered
or relettered to accomplish such intention, and the word "ordinance" may be changed to
"section," "article," or other appropriate word.
SECTION 6. EFFECTIVE DATE.
This Ordinance shall take effect on the day of , 2019.
22
PASSED AND ADOPTED this /0 day of l/Ori/ , 20 9.
ATTEST: 111111111 IVA Mimi.
Dan Gelber, ayor
l2131R
Rafael . anado, ity lerk
Underline denotes additions
denotes deletions
(Sponsored by Commissioner Arriola)
APPROVED AS TO
FORM &LANGUAGE
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23
Ordinances- R5 C
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: April 10, 2019
10:15 a.m. Second Reading Public Hearing
SUBJECT:AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE CITY'S PROCUREMENT
ORDINANCE, AS CODIFIED IN SECTIONS 2-312 THROUGH 2-396 OF
DIVISIONS 1 THROUGH 4 OF ARTICLE VI, ENTITLED "PROCUREMENT,"
OF CHAPTER 2 OF THE CITY CODE, AMENDING SECTIONS 2-312
THROUGH 2-315 THEREOF, TO PROVIDE FOR DEFINITIONS AND
UPDATED PROCEDURES FOR ENCUMBRANCES OF FUNDS AND THE
SALE, TRANSFER, OR EXCHANGE OF SURPLUS GOODS; AMENDING
SECTIONS 2-336 THROUGH 2-343 THEREOF, TO PROVIDE UPDATED
PURCHASING AUTHORITY PROCEDURES; AMENDING SECTIONS 2-366
THROUGH 2-37 4 THEREOF, TO INCREASE THE FORMAL BID
THRESHOLDS FOR PROCUREMENT OF GOODS AND SERVICES,
PROVIDE EXEMPTIONS FROM FORMAL BID REQUIREMENTS FOR
CERTAIN SPECIFIED PROFESSIONAL SERVICES AND SOLE SOURCE
PURCHASES, STREAMLINE CITY'S CONTRACT AND BID PROTEST
PROCEDURES, AND AUTHORIZE A PRE-QUALIFICATION PROGRAM
FOR CONSTRUCTION BIDDERS; AND AMENDING SECTIONS 2-366
THROUGH 2-374 THEREOF, TO PROVIDE UPDATED PROCEDURES FOR
OPEN MARKET PURCHASES, COOPERATIVE PURCHASING, AND
EMERGENCY PURCHASES; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE.
RECOMMENDATION
Approve the amendments to the Ordinance.
ANALYSIS
On November 14, 2018, the City Commission approved, via Resolution 2018-30605, the
recommendations of the Finance Committee to update the City's procurement code to make it
easier for vendors to do business with the City and to streamline and expedite the process for
awarding projects, include the large number of capital projects and G.O. Bond projects. The
recommended procurement code updates primarily focus on the following areas.
1. Establish a Contractor Pre-qualification Program. For certain projects, state law requires
contractors to be pre-qualified. For these projects, the City currently pre-qualifies contractors
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under a two-step RFP process. However, this process can be expedited by prequalifying
contractors outside of the solicitation process. Once the solicitation is approved for issuance,
the prequalification process would have been completed and technical proposals can be
received without delays.
Section 2-366(g)of the recommended procurement code updates authorizes the City Manager
to establish a program to pre-qualify bidders for construction contracts. Consistent with current
practice, bidders would need to be qualified prior to the award of a contract. However, the major
advantage of the update is that, rather than being required to submit their pre-qualification
packages for every solicitation, bidders would able to be pre-qualified, prior to the issuance of
any competitive solicitation, for a given period of time (usually one year, with a one year
extension) and would then be pre-qualified for any solicitation released during that period of
time. It is important to note that bidders that are not pre-qualified would not be barred from
bidding, but rather would be required to submit their pre-qualification applications on or before
the deadline for submittal of bids for any given project.
2. Increase the Formal Bid Thresholds. Currently, all expenditures in excess of $50,000
require formal competition (ITB, RFP, RFQ), whether for goods/service or construction. The
formal competitive process, because of the requirements and steps associated with it, can take
upwards of 3 months, including (as applicable) solicitations going to the City Commission for
approval to issue, advertising, pre-bid conferences, evaluation committees, and scheduling
items for city commission agendas. In order to expedite projects, the Finance Committee
recommendation approved by the City Commission establishes the following thresholds for
formal competitive solicitations.
a. Goods and Services — The Finance Committee has recommended that the threshold at
which formal competitive solicitations for goods and services must be issued be established at
$100,000.
Unlike construction, the State of Florida does not mandate the threshold at which local
governments must issue formal solicitations for goods and non-construction services.As a point
of reference, the formal solicitation threshold for state agencies is $65,000. The threshold for
Miami Dade County is currently$250,000. The threshold for the City of Miami is currently under
review for a proposed increase.
Purchases under this threshold would be required to follow Open Market Procedures, pursuant
to Section 2-395 of the City Code, which stipulates that the purchase of goods or services is to
be based on at least three (3) competitively solicited quotes or proposals. Purchases pursuant
to Open Market Procedures are awarded by the City Manager.
b. Construction—The Finance Committee has recommended that the threshold at which formal
competitive solicitations for construction services is required be established at $200,000.
However, the City Attorney and the City Manager recommend that the City's threshold be
established at$300,000 to be consistent with the State of Florida threshold.
Purchases under this threshold would also be required to follow Open Market Procedures,
pursuant to Section 2-395 of the City Code, which stipulates that purchases are to be based on
competitive quotes. In addition, projects below this amount may also be awarded through one of
the City's expedited contracting options, including Job Order Contracting or seeking
quotes from established trade-specific (e.g., plumbing, electrical, mechanical, etc.) pools of
Page 671 of 1091
contractors.
Increasing this threshold would significantly streamline and expedite the acquisition of
construction services for small projects under $300,000, without losing the benefits of
competition. For example, while there are only 3 out of the 37 projects being considered for the
first tranche of the G.O. Bond program that are under$300,000, the City's capital program has
over 400 projects in the next three years under this amount (See table below). Many of this
projects are renewal and replacement projects that are necessary for the upkeep and operation
of City facilities.
Projects Funded 2019-2021
Capital Budget GO Bond
Under$50K 97 0
Under$300K 439 3
Over$300K 347 34
Total 786 37
The average value of projects under $300,000 currently in the 2019-2021 capital program is
approximately$110,000. Expediting the award of these smaller projects under$300,000 allows
for resources to be allocated to larger projects within the capital budget and G.O. Bond
programs. It is important to note that the remaining projects over $300,000 tend to be much
larger projects that require more effort. For example, the average G.O. Bond project (greater
than $300,000) being considered for the first tranche is over $10 million in value, and the
average value of projects (greater than $300,000) in the 2019 - 2021 capital budget is over$4
million. Therefore, it is important to create resource capacity to address these larger, more
complex projects.
3. Streamlining Other Procurement Code Sections. There are certain sections of the
Procurement Code that are outdated and do not allow certain processes to be streamlined. The
Administration recommends that the Procurement Code be reviewed to assure that it supports
streamlined processes. Some recommendations for updating include:
• Clarifying definitions and conditions for exempt and sole source procurements.
• Updating formal solicitation thresholds as indicated above.
• Reconsidering the requirement to advertise all formal solicitations through newspapers,
rather than through electronic means more commonly used by bidders today.
• Updating the requirements for protesting award recommendations allowing bidders to be
notified of award recommendations earlier in order to reduce delays in the award of
contracts.
The full recommended Procurement Code amendments are attached.
CONCLUSION
The City Manager recommends that the Mayor and City Commission approve the amendments
to the Procurement Code, as recommended by the Finance Committee.
Legislative Tracking
Procurement
Sponsor
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Commissioner Ricky Arriola
ATTACHMENTS:
Description
❑ Procurement Ordinance 2nd Reading
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