§ 3.08.070. Bid requirements and process.

A.

General. All procurements for materials, supplies, equipment, services, and construction shall employ competitive bidding whenever practicable. All amounts in this section shall be considered to be before (excluding) sales tax. All procurements of one hundred thousand dollars ($100,000.00) and over will adhere to the sealed bidding process. The GM/CEO or AGM may grant exceptions to the competitive process for emergency conditions, supply limitation, or other circumstances with justification for such waiver being documented with the acquisition.

Bids shall be awarded to the responsive, responsible, and qualified bidder who submits the lowest bid. In determining the lowest "qualified" bidder, the following elements shall be considered in addition to price:

(1)

That the products offered provide the quality, fitness, and capacity for the required usage.

(2)

That the bidder has the ability, capacity and skill to perform the contract satisfactorily and within the time required.

(3)

That the bidder's experience(s) regarding past purchases by the District or other public agencies demonstrates the reliability of the bidder to perform the contract.

When a bid is recommended to be awarded to other than the low bidder, written justification is required. The written statement, signed by the appropriate supervisor, Manager, Director, AGM, or GM/CEO shall be attached to the purchase requisition or Board report.

When bids are required, every effort should be made to request bids from as many vendors as possible in order to promote competition in the best interest of the District. When the requestor in unable to meet the minimum of 3 documented bids, the requestor must document the requests that were sent and why the vendor(s) declined to submit a bid. This documentation should be more comprehensive depending on the amount of the request.

B.

Bid Requirements Table (amounts excluding sales tax).

Purchase Amount	Bid Requirements (see exceptions section 8)	Refer to Subsection	PO Required
$0—$4,999	Informal quotes	C	NO
$5,000—$49,999	Informal Bids	D	YES
$50,000—$99,999	RFP/Formal Bids	E	YES
$100,000 +	RFP/Sealed Bids	F	YES

 

C.

Informal Quotes. For purchases less than five thousand dollars ($5,000.00), quotes may be obtained through an informal process (e.g. web browsing or phone calls) and documentation of the bids is recommended but not required. Although bid documents are not required, a requisition and purchase order may be issued to document the purchase if the staff member making the purchase wishes to do so.

Since the purchase may be initiated without a Purchase Order, the accounts payable process will require that the invoice be signed by an authorized signor before payment is released.

D.

Informal Bids. For purchases of five thousand dollars ($5,000.00) or more but less than fifty thousand dollars ($50,000.00). A minimum of three bids are required. The bids must be documented and retained on file by the manager of the requesting department. The request for bids must be made in a consistent manner for all vendors meaning that all vendors must receive the same information regarding specifications and requirements of the product or service. The request must also be transmitted to the vendors in a consistent manner (e.g. mail, email, or verbal quote).

E.

Formal Bids. For purchases of fifty thousand dollars ($50,000.00) or more but less than one hundred thousand dollars ($100,000.00). Bids/Proposals shall be solicited from a minimum of three vendors. A Request for Proposal (RFP) or Invitation for Bids (IFB) must be used to document the specifications and requirements of the product or service. The bids must be received from the vendors in written form and retained on file by the manager of the requesting department.

F.

Sealed Bids. For purchases of one hundred thousand dollars ($100,000.00) or more. A formal RFP / sealed bid process is required and contracts shall be awarded in a manner most beneficial to the District. The District shall strive to obtain the best value in awarding contracts, service agreements, and purchase agreements. The following subsections specify certain procedures based on the following four categories:

• Capital Improvement Projects.

• Maintenance and Services Agreements.

• Professional Services Agreements.

• Equipment, Materials and Supplies Purchases.

Capital Improvement Projects

Contracts, valued at one hundred thousand dollars ($100,000.00) or more, for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement, hereinafter referred to as "Capital Improvement Projects, (CIP)", shall be subject to the formal competitive bidding procedures set forth herein unless an exception exists or the Board of Directors determines it is not in the best interest of the District. Project-specific contracts covered by this procedure shall be issued to expire upon completion of the work unless otherwise specified in the written agreement. As required by law, registration with the Department of Industrial Relations for prevailing wage regulations is required for all CIP bidders. When the CIP is funded through a Federal Grant, the District must follow Federal procurement standards listed in the Code of Federal Regulations Sections 200.317 through 200.326 or as required by the grant document.

(1)

Call for Bids. The GM/CEO, or his/her designee, is authorized to create a prequalified bidders list. The bidders may be prequalified on an annual basis or on a project specific basis. Notice inviting sealed bids shall be distributed to prequalified bidders or other interested parties as may be deemed beneficial by the GM/CEO, or his/her designee. If there are no prequalified bidders or if the prequalified bidders list is inadequate, a notice inviting bids may be published once in a newspaper that serves the District.

(2)

Form of Call for Bids. The invitation for bids shall contain:

a.

A statement as to where the plans and specifications may be obtained,

b.

A general description of the CIP,

c.

A statement that the District will receive sealed bids,

d.

A statement that the contract or contracts for the CIP will be awarded to the lowest responsive, responsible bidder or bidders, but that any or all bids may be rejected,

e.

A statement of the time and place for opening the bids, and

f.

Such other information as may be required by the District or by law.

(3)

Submission of Bids. Bids shall be submitted on forms supplied by the District and under sealed cover. Each bid shall be accompanied by cash, a certified or cashier's check, or bond secured from a surety company satisfactory to the District in the amount indicated within the bid documents, made payable to Cucamonga Valley Water District, as bid security.

If the bid is accepted, the Bidder shall execute the contract within the time provided in the contract documents and shall furnish the necessary certificates of insurance and bonds required by the contract documents.

(4)

Opening of Bids. Bids shall be publicly opened at the time and place specified in the invitation for bids. A minimum of two members of District staff must be present at all sealed bid openings.

(5)

Bid Evaluation and Acceptance. Acceptance of any bid shall be by action of the Board. The Board reserves the right to waive any irregularity, to reject any or all bids, to re-advertise, or to proceed with the CIP or any part of it using District staff.

(6)

Bid Award. Contracts shall be awarded to the lowest responsive and responsible bidder which will be deemed the best value to the District.

(7)

Relief of Bidders. A bidder shall not be relieved of its bid unless by consent of the District upon a showing by the bidder to the satisfaction of the District that:

a.

A mistake was made;

b.

The bidder gave the District written notice within five business days after the opening of bids of the mistake, specifying in the notice in detail how the mistake occurred;

c.

The mistake made the bid materially different than the bidder intended it to be; and

d.

The mistake was made in filling out the bid and not due to error in judgment or carelessness in inspecting the site of the work or in reading the plans or specifications.

A bidder who claims a mistake or forfeits its bid security shall be prohibited from participating in further bidding on the project on which the mistake was claimed or security forfeited.

(8)

Performance and Payment Bonds. Any bidder to whom a contract for CIP is awarded under the District's formal competitive bidding procedures shall supply on forms satisfactory to the District, a Faithful Performance Bond in an amount equal to the total contract price.

For any contract for CIP in excess of twenty-five thousand dollars ($25,000.00), the bidder must also supply a Labor and Material Payment Bond in an amount equal to the total contract price.

Each bond shall be secured from a California admitted surety company that meets all State of California bonding requirements, as defined in California Code of Civil Procedure Section 995.120, and is authorized by the State of California. Each bond shall be accompanied, upon request of the District, with all documents required by California Code of Civil Procedure Section 995.660, to the extent required by law.

(9)

Insurance. Before work commences, evidence of insurance as required by the contract for CIP must be obtained, reviewed, and accepted by the AGM or his/her designee. A copy of the certificate of insurance will be provided to the District Risk Management Department.

Maintenance and Services Agreements

This procedure applies to non-professional services agreements that do not involve real property. Examples include: landscape maintenance, janitorial, uniform cleaning, and material hauling.

(1)

Contracts for maintenance or service agreements shall be approved by the Board if the total cost for the initial term of the agreement exceeds one hundred thousand dollars ($100,000.00).

(2)

Project-specific contracts for maintenance and service agreements covered by this procedure shall be issued to expire upon completion of the work unless otherwise specified in the written agreement. Contracts for maintenance and service agreements covered by this procedure shall be issued for an initial term of no more than thirty-six (36) months. The GM/CEO, AGM, Director, or Department Manager may authorize a maximum of one extension of twenty-four (24) months for maintenance and service agreements. Extensions to contracts or agreements valued at more than one hundred thousand dollars ($100,000.00), shall be approved by the Board of Directors. If an extension to a contract or maintenance agreement causes the total cost of all years to exceed one hundred thousand dollars ($100,000.00) (even though the original total cost of the agreement was less than one hundred thousand dollars ($100,000.00)), the extension shall be approved by the Board.

(3)

Before work commences or services are rendered, evidence of insurance as required by the contract or service agreement must be obtained, reviewed, and accepted by the Director, Manager or his/her designee. A copy of the certificate of insurance will be provided to the District Risk Management Department.

Professional Services Agreements

A professional services agreement is an agreement between the District and a professional service provider. Professional service providers are those entities that provide advice, opinions, or technical expertise. Examples of professional service providers include accountants, actuaries, architects, attorneys, engineers, educational trainers, financial advisors, surveyors, etc. Depending upon the trade, these individuals may or may not hold professional licenses.

Professional services shall be selected on the basis of demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required.

Equipment, Materials, and Supplies Purchases

This procedure applies to purchases of heavy equipment, vehicles, materials, supplies and other tangible goods that are not associated with services or permanent attachment to real property.

(1)

Detailed specifications of the items must be provided to the bidders in writing.

(2)

Brand standardization is allowable if deemed to be in the best interest of the District and documented with a Sole Source Form.

(3)

In purchasing equipment or supplies that need to be compatible with existing equipment, or to perform complex or unique functions, the requestor may limit bidding to a specific product type or a brand name product.

( Res. No. 2015-11-6, § 1, 11-24-2015 ; Res. No. 2017-10-2 , 10-24-2017; Res. No. 2018-7-2 , § 1(Exh. A), 7-24-2018)