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R5J-Increase Threshold For Bids And Managers Authority To Award ContractsCOMMISSION ITEM SUMMARY Condensed Title: Item Summary/Recommendation : EI.I ONOIruRruCE OT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING GHAPTER 2 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED ..ADMINISTFIATION,'' BY AMENDING ARTICLE V! ENTITLED "PROCUREMENT," BY AMENDING DtvtstoN 3, ENTITLED ,,CONTRACT PROCEDURES," BY AMENDING SECTION 2-366, ENTITLED ,,GENERALLY,', AND SECTTON 2-367, ENTITLED "REJEGTION OF BIDS; NEGOTIATION; WAIVER OF COMPETITIVE BIDDING'' AND SECTION 2.369, ENTITLED "AWARD OF CONTRACT," AND SECTION 2-370, ENTITLED "AWARD OF CONTRACT TO OTHER THAN LOW BIDDER,'' BY INCREASING THE THRESHOLD FOR FORMAL BIDS AND THE CITY MANAGER'S AUTHORITY TO AWARD A CONTRACT FROM $25,OOO TO $5O,OOO, AS WELL AS PARTICIPATE IN COOPERATIVE PURCHASES; BY FURTHERAMENDING SECTION 2-3Tl,ENTITLED "AUTHORITYTO RESOLVE PROTESTED BIDS AND AWARDS," BY AMENDING THE PROCEDURE FOR PROTESTED BIDS AND PROPOSED AWARDS; BY FURTHERAMENDING DIVISION 4, ENTITLED "PURCHASES," BYAMENDING DIVISION 4, ENTITLED ,,PURCHASES," BY AMENDING SECTION 2-395, ENTITLED "OPEN MARKET PROCEDURES,'' BY INCREASING THE THRESHOLD FOR OPEN MARKET PURCHASES FROM $25,OOO TO $5O,OOO AND AMENDING TERMINOLOGY THEREIN, AND FURTHER PROVIDING FOR REPEALER. SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE Streamline the delivery of service through all departments. Strengthen internal controls to assure more Data Environmenta! Scan, etc: N/A ffitiaiionretainedtheservicesoftheNationallnstituteofGovernmental Procurement ("N|GP') to review the Code of the City of Miami Beach, with reference to the City's procurement requirements. On July 17,2013, the City Commission approved a referral to the Finance City-Wide Projects Committee (Committee) for a discussion on the review and recommendations for improving the City's Procurement Code conducted by NIGP. At its February 21,2014, meeting, the Committee considered recommendations to the City's Procuiement Code presented by the Administration, which included the results of the review of the Procurement Code completed by the NIGP, as well as other recommendations by the Administration. The Committee recommended that the Mayor and City Commission authorize the Administration to prepare revisions to the City's Procurement Code, pursuant to the Recommendations considered by the Committee. On April 23,2014, the Mayor and City Commission approved the recommendations of the Committee and directed the Administration to prepare the ordinance revisions, as necessary to implement the recommendations of the Finance Ci$-Wide Projects Committee. The purpose of this item is to seek approval (first reading) of the referenced ordinance revisions to the City's Procurement Code. RECOMMENDATION the ordinance. Advisorv Board Recommendation : Financial lnformation: Source of Funds: Amount Account 1 N/A N/A 2 OBPI Total Financial lmpact Summary: (1st READING).doc rrer,lr 85C& MIAMIBTACH AGENBA oaw ?-/0{U565 4 MIAMIBEACH City of Miqmi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 331 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO: ..CONTRACT PROCEDURES," BY AMENDING SECTION 2.366, ENTITLED ..GENERALLY," AND SECTION 2.367, ENTITLED "REJECTION OF B!DS; NEGOTIATION; WAIVER OF COMPETITIVE BIDDING" AND SECTION 2'369, ENTITLED "AWARD OF CONTRACT," AND SECTION 2-370, ENTITLED ..AWARD OF CONTRACT TO OTHER THAN LOW BIDDER," BY INCREASING THE THRESHOLD FOR FORMAL BIDS AND THE CITY MANAGER'S AUTHORIry TO AWARD A CONTRAGT FROM $25,OOO TO $5O,OOO, AS WELL AS PARTIGIPATE IN COOPERATIVE PURCHASES; BY FURTHER AMENDING SECTION 2-371, ENTITLED "AUTHORITY TO RESOLVE PROTESTED BIDS AND AWARDS,'' BY AMENDING THE PROCEDURE FOR PROTESTED BIDS AND PROPOSED AWARDS; BY FURTHER AMENDING DIVISION 4, ENTITLED ,,puRcHASES," BY AMENDING DIVISION 4, ENTITLED "PURCHASES," BY AMENDING SECTION 2.395, ENTITLED "OPEN MARKET PROCEDURES," BY INCREASING THE THRESHOLD FOR OPEN MARKET PURCHASES FROM $25,OOO TO $5O,OOO AND AMENDING TERMINOLOGY THEREIN, AND FURTHER PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTTVE DATE (FIRST READING). BACKGROUNDE June, 2013, the Administration retained the services of the National lnstitute of Governmental Procurement ("NIGP') to review the Code of the City of Miami Beach, with reference to the City's procurement requirements. On July i7,2013, the City Commission approved a referral to the Finance City-Wide Projects Committee (Committee) ior a discussion on the review and recommendations for improving the City's Procurement Code conducted by NIGP. At its February 21,2014, meeting, the Commiitee considered recommendations to the City's Procurement Code presented by the Administration, which included the results of the review of the Procurement Code completed by the NIGP, as well as other recommendations by the Administration. The Committee recommended that the Mayor and City Commission authorize the Administration to prepare revisions to the City's Proiurement Code, pursuant to the Recommendations considered by the Committee. 566 Commission Memorandum - Procurement Code Ordinance Revisions September 10,2014 Page2 CONCLUSION On nprit 2J, 2014, the Mayor and City Commission approved the recommendations of the Committee and directed the Administration to prepare the ordinance revisions, as necessary to implement the recommendations of the Finance City-Wide Projects Committee. The purpose of inis item is to seek approval (first reading) of the referenced ordinance revisions to the City's Procurement Code. RECOMMENDATION Approve the ordinance. JLM / MT /AD T:\AGENDA\20'14\September\Procurement\Procurement Code Changes MEMO (1st READING).doc 567 ORD!NANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE VI, ENTITLED "PROCUREMENT,'' BY AMENDING DIVISION 3, ENTITLED "CONTRACT PROCEDURES," BY AMENDING SECTION 2.366, ENTITLED "GENERALLY,'' SECTION 2.367, ENTITLED "REJECTION OF BIDS; NEGOTIATION; WAIVER OF COMPETITIVE BIDDING," SECTION 2.369, ENTITLED "AWARD OF CONTRACT," AND SECTION 2-370, ENTITLED "AWARD OF CONTRACT TO OTHER THAN LOW BIDDER," BY INCREASING THE THRESHOLD FOR FORMAL BIDS AND THE CITY MANAGER'S AUTHORITY TO AWARD A CONTRACT FROM $25,OOO TO $5O,OOO, AS WELL AS EXPANDING THE USE OF COOPERATIVE PURCHASES; BY FURTHER AMENDING SECTION 2- 371, ENTITLED "AUTHORITY TO RESOLVE PROTESTED BIDS AND AWARDS," BY AMENDING THE PROCEDURE FOR PROTESTED BIDS AND PROPOSED AWARDS; BY AMENDING DIVISION 4, ENTITLED..PURCHASES," BY AMENDING SECTION 2.395, ENTITLED "OPEN MARKET PROCEDURES," BY INCREASING THE THRESHOLD FOR OPEN MARKET PURCHASES FROM $25,OOO TO $5O,OOO AND AMENDING TERMINOLOGY THEREIN; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the Administration retained the services of the National lnstitute of Governmental Procurement ("N|GP") to review the Code of the City of Miami Beach, with reference to the City's procurement requirements; and WHEREAS, on July 17, 2013, the City Commission approved a referral to the Finance City-Wide Projects Committee (Committee) for a discussion on the review and recommendations for improving the City's Procurement Code conducted by the NIGP; and WHEREAS, on July 19,2013, the NIGP completed the Procurement Ordinance Review and Recommendations - Final Report; and WHEREAS, at its February 21,2014, meeting, the Committee considered recommendations to the City's Procurement Code presented by the Administration, which included the results of the review of the Procurement Code completed by the NIGP, as well as other recommendations by the City's Procurement staff (the Recommendations); and WHEREAS, at its February 21,2014, meeting, the Committee recommended that the Mayor and City Commission authorize the Administration to prepare revisions to the City's Procurement Code, pursuant to the Recommendations considered by the Committee; and WHEREAS, the Recommendations include amending the thresholds formal bids, maximizing the use of cooperative purchases, and improving procedures for the protest of bids and award recommendations; and WHEREAS, at its April 23, 2014, meeting, the Mayor and City Commission accepted the recommendations of the Committee and directed the Administration to prepare corresponding revisions to the Procurement provisions in the City Code. 568 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: SECTION 1. That Division 3 of Article Vl of Chapter 2 of the Code of the City Miami Beach is hereby amended as follows: CHAPTER 2 ADMIN!STRATION ARTICLE VI. PROCUREMENT DIVISION 3. CONTRACT PROCEDURES Sec.2-366. Generally. (a) Formal Bids required. All supplies and equipment, except as othenvise provided inthisdivision,whentheestimatedcostthereofshallexceed@, shall be purchased by formal, written contract and/or purchase order @,afterduenoticeinvitingproposals;however,thecity commission shall have authority to waive execution of formal contract in cases where it deems it advisable 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@,shallbeaccomplishedbyformalwrittencontracttothe highest bidder, after due notice inviting proposals has been published as required by law. Sec. 2-367. Rejection of bids; negotiation; waiver of competitive bidding. (a) Except as further provided under subsections 2-367(b) and (c), generally, if a bid is @orleSS,thecitymanagershallhavetheauthoritytorejectany and all bids. Except as further provided under subsections 2-367(b) and (c), generally, ifthebidisinexcessof@,thecitycommissionshallhavethe authority to reject any and all bids. (d) The procurement director, with approval of the city manager, for contracts of @orleSS,orthecitycommission,bysimplemajorityvote,forcontractsinexcessof@,shallhavethepowertonegotiatethose contracts and purchases where only one source for the product or service is evident. A sole-source purchase shall be defined as goods and/or services for which the availability of multiple vendors who could compete as bidders is precluded. 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. ln 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 of this article, trademarks alone, and commodity type products, lacking differentiating characteristics from similar products, shall not be considered for sole- source purchases. 569 Sec. 2-369. Award of contract. All eentraets, when the sum is $10'000,00 er less; shall be awarded by the All contracts, when the sum is in @not exceeding @shall be awarded by the city manager, or his designee, to the lowest and best bidder. When the amount of a contractisinexcessof@,thecitycommissionshallawardthe 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 on a continuing basis from Miami-Dade County; from the School Board of Miami-Dade County; from the U.S. Communities Government Purchasing Alliance erfrom 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 commodities, materials, supplies or otheritemsmayexceed@oVeraone-yearperiod;providedthat 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 particular commodities, materials, supplies, or items on a continuing basis from the entities set forth in this section 2-369. ln 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. (a) 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. Award of contract to other than low bidder. (b)Awardofalltiebidswithavalueof@valueorlessshallbe made by the @ citv manaqer or his desiqnee. All tie bids in excess of shall be awarded bY the ei{Y 570 Sec. 2-371. Authority to resolve protested bids and proposed awards. (a) Right to protest. Any actual bidder, qualified proposer, or interested parties (hereinafter collectively referred to as the "bidder") who has a substantial interest in, and is aggrieved in connection with the solicitation or proposed award of, a request for proposals(,'RFP.'),requestforqualifications(''RFQ''), (RFtl) e+-invitation for bid for goods and/or services ("lTB"), er invitatien te negetiate (jl+N), ("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 within three business days (for the purposes of this section, "business day" means a day other than Saturday, Sunday or a national holiday), from the time the facts become known and, in any case, at least $n*e seven business days prior to the opening of the bid. Such protest must be made in writing to the city manager 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, req uirements 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 until two business days following the release of the notice of the city manager's written recommendation to the citycommission pnCa pa€ke+ 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 writing (which may be transmitted by electronic communication, such as facsimile transmission and/or e-mail), following the release of the city manager's written recommendation to the city commission. {b) Any bidder whe is aggrieved in eenneetien with the selieitatien er prepesed award ef fermal bid preeess may preteslte the eity manager er his er her designee anytime during the preeurement preeess; up te the-time elthe award ef the purehase erder ef eentraet requiremen+s-ef+nisse+ien 4 571 SECTION 2. That Division 4 of Article Vl of Chapter 2 ot the Code of the City Miami Beach is hereby amended as follows: CHAPTER 2 ADMINISTRATION ARTICLE VI. PROCUREMENT DIVISION 4. PURCHASES Sec. 2-395. Open market procedures. All purchasing of supplies and contractual services of a total estimated value not exceeding@maybemadeintheopenmarketwithoutneWSpaper advertisement and without observing the procedure prescribed by this article for formal purchasing or sales procedures. (1) Minimum number of bids quotes. All open market procedures or sales shall, whenever possible, be based on at least three competitive bids and shall be awarded to the lowest responsible bidder in accordance with the standards set forth in this article or to the highest responsible bidder in case of a sale. (2) tnvitation ef to bids quote. The procurement director may solicit either oral or written bids quotes for open market pricing or sale but shall use all reasonably available and current bidders and supply lists. (3) Public record. The procurement director shall keep a record of all open market bids submitted in competition thereon, and such records shall be open to public inspection. SECTION 3. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 4. SEVERABILITY. lf any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. 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 Code of the City of Miami Beach, Florida. 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. 572 SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect on the day of ,2014. PASSED AND ADOPTED this - day of-,2014. ATTEST: PHILIP LEVINE, MAYOR RAFAEL E. GRANADO, CITY CLERK Underline denotes additions Stri*e+n+eugh den otes de letions (Sponsored by Commissioner Deede Weithorn) APPROVED AS TO FORM & LANGUAGE ^!- 6 573 THIS PAGE INTENTIONALLY LEFT BLANK 574