§ 2-172. Competitive sealed bids for public works projects.

(a)

Budgetary limitation. All purchases authorized by this division shall be for expenditures within the scope of the authorized and approved city budget.

(b)

Terms. The terms used in this section are defined as follows:

(1)

Bid bond means a bond with good and sufficient surety or sureties for the faithful acceptance of the contract payable to, in favor of, and for the protection of the city for which the contract is to be awarded.

(2)

Change order means an alteration, addition, or deduction from the original scope of work as defined by the contract documents to address changes or unforeseen conditions necessary for project completion.

(3)

Competitive sealed bidding means a method of soliciting public works construction contracts whereby the award is based upon the lowest responsive, responsible bid in conformance with the provisions of this section.

(4)

Competitive sealed proposals means a method of soliciting public works contracts whereby the award is based upon criteria identified in a request for proposals in conformance with the provisions of this section.

(5)

Payment bond means a bond with good and sufficient surety or sureties payable to the city for which the work is to be done and intended for the use and protection of all subcontractors and all persons supplying labor, materials, machinery, and equipment in the prosecution of the work provided for in the public works construction contract.

(6)

Performance bond means a bond with good and sufficient surety or sureties for the faithful performance of the contract and to indemnify the city for any damages occasioned by a failure to perform the same within the prescribed time. Such bond shall be payable to, in favor of, and for the protection of the city for which the work is to be done.

(7)

Public works construction means the building, altering, repairing, improving, or demolishing of any public structure or building or other public improvements of any kind to any public real property other than those projects defined in section 2-173 of this Code of Ordinances.

(8)

Responsible bidder or responsible offeror means a person or entity that has the capability in all respects to perform fully and reliably the contract requirements.

(9)

Responsive bidder or responsive offeror means a person or entity that has submitted a bid or proposal that conforms in all material respect to the requirements set forth in the invitation for bids or request for proposals.

(10)

Scope of project means the work required by the original contract documents and any subsequent change orders required or appropriate to accomplish the intent of the project as described in the bid documents.

(11)

Scope of work means the work that is required by the contract documents.

(c)

Conditions for use. All contracts for the city shall be awarded by competitive sealed bids except as otherwise provided in this article.

(d)

Exceptions. When purchasing used equipment, the council may approve and authorize the negotiation of a purchase in the best interest of the city if a good faith search has determined that this is the best equipment available for the price at the time of the purchase.

(e)

Invitation for bids. An invitation for bids shall be issued and shall include all contractual terms and conditions applicable to the procurement.

(f)

Public notice. A public notice for the invitation for bids shall be given.

(1)

The notice shall be posted conspicuously in the city's office and shall be advertised in the legal organ of the city or by electronic means on an Internet website of the city or an internet website identified by the city. Contract opportunities shall be advertised a minimum of two times, with the first advertisement occurring at least four weeks prior to the opening of the sealed bids or proposals. The second advertisement shall follow no earlier than two weeks from the first advertisement. Plans and specifications shall be available on the first day of the advertisement and shall be open to inspection by the public. The advertisement shall include such details and specifications as will enable the public to know the extent and character of the work to be done. All required notices of advertisement shall also advise of any mandatory prequalification requirements or pre-bid conferences as well as any federal requirements.

(2)

The city shall not issue or cause to be issued any addenda modifying plans and specifications within a period of 72 hours prior to the advertised time for the opening of bids or proposals, excluding Saturdays, Sundays and legal holidays. However, if the necessity arises to issue an addendum modifying plans and specifications within the 72-hour period prior to the advertised time for the opening of bids or proposals, excluding Saturdays, Sundays and legal holidays, then the opening of bids or proposals shall be extended at least 72 hours, excluding Saturdays, Sundays and legal holidays from the date of the original bid or proposal opening without need to readvertise as required by this section.

(3)

Bid and contract documents may contain provisions authorizing the issuance of change orders, without the necessity of additional requests for bids or proposals, within the scope of the project when appropriate or necessary in the performance of the contract. Change orders may not be used to evade the purposes of this section.

(4)

The city may, in its discretion, adopt a process for mandatory prequalification of prospective bidders or offerors; provided, however, that:

a.

Criteria for prequalification must be reasonable related to the project or the quality of work;

b.

Criteria for prequalification must be available to any prospective bidder or offeror requesting such information;

c.

Any prequalification process must include a method of notifying prospective bidders or offerors of the criteria for prequalification; and

d.

Any prequalification process must include a procedure for a disqualified bidder to respond to his or her disqualification to a representative of the city; provided, however, that such procedure shall not be construed to require the city to provide a formal appeals procedure.

(g)

Bid bonds. Bid bonds shall be required for all public works construction contracts when bids are estimated to be over $20,000.00. If a bid bond is required for a public works contract and not submitted, the bid shall not be valid for any purpose unless the bond of good and sufficient surety is presented and approved by the city. The bid bond shall be in the amount of not less than five percent of the total amount payable by the terms of the contract. No bid or proposal shall be considered if a proper bid bond or other security authorized in this section has not been submitted.

(h)

Bid opening. Bids shall be opened publicly in the presence of two or more witnesses at the time and place designated in the invitation for bids. The amount of each bid, and such other relevant information as the council deems appropriate, together with the name of each bidder, shall be recorded; the record of each bid shall be open to public inspection. All bids and bid documents shall be kept on file in the office of the clerk of the City of Mountain Park as required under the Public Records Act of the State of Georgia.

(i)

Bid acceptance and bid evaluation. Bids shall be unconditionally accepted without alteration or correction, except as authorized in subsection (k) of this section. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery and suitability for a purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable such as discounts, transportation costs, and total or life cycle costs. The invitation for bids should set forth the evaluation criteria to be used.

(j)

Correction or withdrawal of bids; cancellation of awards. Correction or withdrawal of inadvertently erroneous bids before and after bid opening, or cancellation of awards or contracts based on such bid mistakes, may be permitted where appropriate. Mistakes discovered before bid opening may be modified or withdrawn by written or telegraphic notice received in the office designated in the invitation for bids prior to the time set for the bid opening. After bid opening, corrections in bid openings shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake of a nonjudgmental character was made, the nature of the mistake, and the bid price actually intended. After the bid opening, no changes in bid price or other provisions of bids prejudicial to the city or fair competition shall be permitted. In lieu of bid corrections, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if:

(1)

The mistake is clearly evident on the face of the bid document but the intended correct bid is not similarly evident; or

(2)

The bidder submits evidence which clearly and convincingly demonstrates that a mistake was made. All decisions to permit the correction or withdrawal of bids or to cancel the awards or contracts based on bid mistakes, shall be supported by a written determination made by the council.

(k)

Award of contract. The city, by majority vote entered in its minutes, shall award the contract to the lowest reliable bidder, provided that the city shall have the right to reject any and all such bids whether such right is reserved in the public notice or not and, in such case, may readvertise, perform the work itself, or abandon the project.

(l)

Award. The contract shall be awarded with responsible promptness by appropriate written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If the low responsible and responsive bid for a construction project exceeds available funds as certified by the city council, and such bid does not exceed such funds by more than five percent, the council shall approve and authorize when time or economic considerations preclude re-solicitation of work of a reduced scope, negotiation of an adjustment of the bid price with the low responsible and responsive bidder, in order to bring the bid within the amount of available funds.

(m)

Multistep sealed bidding. When it is considered impractical to prepare initially a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been determined to be technically acceptable under the criteria set forth in the first solicitation.

(n)

Performance bonds in the procurement of public works projects. When a public works project contract is awarded in excess of $20,000.00, the following bonds or security shall be delivered to the city and shall become binding on the parties upon execution of the contract:

(1)

A performance bond satisfactory to the city, executed by a surety company authorized to do business in the state or otherwise secured in a manner satisfactory to the city, in an amount equal to 100 percent of the price specified in the contract; and

(2)

A payment bond satisfactory to the city, executed by a surety company registered to do business in the state or otherwise secured in a manner satisfactory to the city, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100 percent of the price specified in the contract.

(3)

The above stated bonds shall not be modified or released without a vote of council approving such modification or release.

(4)

A public works project contract subject to the above stated performance and payment bond requirements shall require the contractor as a condition of performance to keep in force during the term of the contract the insurance outlined below from an insurance company licensed to do business in the State of Georgia. The insurance policy shall name the city as an additional insured. A certificate of insurance shall provide the city a 30-day written notice in the event of cancellation, non-renewal or adverse changes to the policy. A certificate of insurance documenting the below stated amounts of insurance shall be furnished to the city at the time of execution of the public works project contract.

Liability insurance:

a.

Worker's compensation. Issuance in such amounts as required by the applicable worker's compensation laws of the State of Georgia.

b.

Comprehensive general liability. With a minimum limit of $1,000,000.00 per occurrence covering:

1.

Premises-operations;

2.

Broad form contractual;

3.

Broad form property damage;

4.

Personal injury.

c.

Business automobile liability. With minimum limits of $1,000,000.00 per occurrence, covering bodily injury in connection with and property damage to the following:

1.

Owned vehicles;

2.

Hired vehicles;

3.

Non-owned vehicles

4.

Leased vehicles.

(5)

Nothing in this section shall prevent the requirements of such bonds on construction contracts under $20,000.00 when the council determines that the circumstances warrant.

(6)

All bonds shall meet the requirements set forth in Chapter 91 or Title 36 of the Georgia Code.

(Code 1982, § 2-5-3; Ord. No. 228-99, § 5, 11-22-1999; Ord. No. 258-03, § 1, 10-20-2003; Ord. No. 274-04, §§ 1, 2, 12-20-2004)