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HomeMy WebLinkAboutPR 24355: 2025 REVISED PURCHASING MANUAL City of urt Texas INTEROFFICE MEMORANDUM UTILITY OPERATIONS DEPARTMENT - ADMIN. DIV. Date: May 22, 2025 To: The Honorable Mayor and Council Through: Ronald Burton, City Manager From: Clifton Williams, Purchasing Manager RE: PR#24355 —2025 Revised Purchasing Manual 4 Introduction: This Resolution is requesting City Council to authorize the 3rd Amendment to the City of Port Arthur's Purchasing Manual based on suggestions from the General land Office after GLO audit. Background: The City received grants from the General Land Office. The General Land Office did their audit of GLO projects with the City. They were impressed with our Purchasing Manual, but requested a couple of changes. To reflect the updated SAM.gov website, GLO suggested the following corrections: changing the "Excluded Parties List System: (EPLS) to the correct name which is System for Award Management (SAM); in addition, it was suggested that language be added to allow for"or equivalent"in the qualitative characteristics if a brand is named in the specifications. Budget Considerations: NA Recommendation: This Resolution is requesting City Council to authorize the Revision of The Purchasing Manual based on suggestions from the General land Office after GLO audit. P. R. NO. 24355 5/31/2025 CEW RESOLUTION NO. A RESOLUTION APPROVING THE THIRD AMENDMENT TO THE PURCHASING MANUAL FOR THE CITY OF PORT ARTHUR WHEREAS, the Purchasing Division of the Finance Department assists all departments of the City to adhere to the purchasing requirements of the City Charter and the laws of the State of Texas; and, WHEREAS, City staff has developed a third amendment to the City of Port Arthur's purchasing manual, including updated procedures; and, WHEREAS, the original revised purchasing manual was approved on August 9, 2011 with Resolution 11-345; and, WHEREAS, the first amendment to the purchasing manual referencing §9-102 was approved on December 11, 2012 with Resolution 12-594; and, WHEREAS, the second amendment to the purchasing manual adding §9-103 and §9-104 was approved on February 5, 2019 with Resolution 19-051 ; and, WHEREAS, the General Land Office requests the City to update its purchasing manual to add language regarding qualitative language "or equivalent" addressed in Exhibit"A" §1-104 and updating §9- 102 to reflect the change to SAM and the City's updated procedures. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That,the facts and opinions in the preamble are true and correct. Section 2. That, the City Council hereby approves the Third Amendment to the Revised Purchasing Manual in substantially the same form as attached hereto as Exhibit"A". Section 3. That, a copy of the caption of this resolution be spread upon the minutes of City Council. READ, ADOPTED, AND APPROVED, this day of June 2025, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman"Bill" Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: c'� Roxann'Pais Cotroneo, City Attorney APPROVED FOR ADMINISTRATION: Ronal carton, CPM itAan r Lyn a Boswell, M.A., ICMA-CM Director of Finance CL4Clifton illiams, Purchasing Manager EXHIBIT "A" WIPP City of ort rthu � Texas City of Port Arthur, TX Procurement Policies and Procedures P.O.Box 1089 1 444—4th Street,2nd Floor I Port Arthur,TX 77641 409.983.8160 1409.983.8291 I®purchasing@portarthur.net I www.portarthur.net Table of Contents CHAPTER 1—GENERAL PROVISIONS §1-101 Purpose 5 §1-102 Public Procurement 6 §1-103 Mission 6 §1-104 Function and Responsibilities 6 A.The Purchasing Division B.The Using Departments C.Vendors §1-105 Principles 8 §1-106 Code of Ethics 8 §1-107 Conduct when dealing with vendors 9 §1-108 Procurement Records and Information 10 CHAPTER 2—ADMINISTRATIVE MATTERS §2-101 Applicability 11 §2-102 Changes to the Manual 11 §2-103 Signatory Authorities and Approval Thresholds 11 §2-104 Department Representatives 12 §2-105 Local Business Preference 12 §2-106 Historically Underutilized Business(HUBs) 12 §2-107 Disadvantaged Business Enterprise(DBEs) 13 §2-108 Conflict of Interest 13 §2-109 Tax Exempt Status 14 §2-110 Confidential Information 14 CHAPTER 3—SOURCE SELECTION PART A—METHODS OF SOURCE SELECTION §3-101 Methods of Source Selection 15 §3-102 Competitive Sealed Bidding 15 §3-103 Competitive Sealed Proposals 18 §3-104 Small Purchases 19 §3-105 Sole Source Procurements 20 §3-106 Emergency Procurements 20 §3-107 Cooperative Procurements 20 City of Port Arthur Purchasing Manual Page 2 January 2019May 2025 CHAPTER 3—CONT'D PART B—DETERMINATIONS AND REPORTS §3-201 Finality of Determinations 21 §3-202 Bid Protests 21 §3-203 Reporting of Anticompetitive Practices 22 §3-204 Retention of Records 22 CHAPTER 4—SPECIFICATIONS §4-101 Specification Preparation 23 §4-102 Specifications Prepared By Other Than City Personnel 23 §4-103 Specification Amendments 23 §4-104 Pre-bid Conferences and Site Visits 23 CHAPTER 5—LEGAL PART A—BONDS §5-101 Payment Bonds 25 §5-102 Performance Bonds 26 §5-103 Bid Bonds 26 PART B—INSURANCE 26 PART C—PROMPT PAYMENT ACT 27 CHAPTER 6—CONTRACT ADMINISTRATION,MODIFICATION AND TERMINATION PART A—GENERAL INFORMATION 28 PART B—TYPES OF CONTRACTS §6-101 Multi-Year Contracts 28 PART C—CONTRACT ADMINISTRATION §6-201 Execution 28 §6-202 Monitoring 29 §6-203 Renewals 29 PART D—CONTRACT MODIFICATIONS AND TERMINATIONS §6-301 Change Orders 30 §6-302 Terminations 30 PART E—MAINTENANCE AND LEASE AGREEMENTS §6-401 Maintenance Agreements 30 §6-402 Lease Agreements 31 City of Port Arthur Purchasing Manual Page 3 January 2019May 2025 CHAPTER 7—SURPLUS MATERIALS AND EQUIPMENT PART A—DISPOSAL §7-101 City-owned Materials and Equipment 32 §7-102 Seized,Abandoned,Unclaimed Property 34 §7-103 Gambling Paraphernalia,Prohibited Weapons,etc 34 §7-104 Explosive Weapons and Chemical Dispensing Devices 34 §7-105 Seized Weapons 34 PART B TRANSFERS/DONATIONS §7-201 Between Departments 34 §7-202 To or From an Outside Source 34 CHAPTER 8—CREDIT CARDS §8-101 Procurement Cards(p-Cards) 35 §8-102 Fuelman Cards 35 §8-103 Shell and Chevron Gas Cards 35 CHAPTER 9—FEDERAL §9-101 Compliance with Federal Requirements 36 §9-102 Excluded Parties List SystemSystem for Award Management (EPLr SAM) 36 §9-103 Compliance with FTA Requirements 36 §9-104 Minority Contractors 36 §9-105 Duplicative or Unnecessary Items 37 CHAPTER 10—PROFESSIONAL SERVICES §10-101 Professional Services 38 §10-102 Competitive Sealed Qualifications 38 §10-103 Infrastructure Facilities and Services 39 EXHIBITS Exhibit A—Conflict of Interest Exhibit B—Tax Exemption Certificate Exhibit C-- Sole Source/Special Procurement Request Exhibit D—Emergency Purchase Request Exhibit E—Vendor Complaint Report Exhibit F—Surplus Property Disposition City of Port Arthur Purchasing Manual Page 4 Januar} 2019May 2025 CHAPTER 1^-GENERAL PROVISIONS §1-101 Purpose. The City of Port Arthur, Texas (City) Purchasing Division presents this manual to promote understanding by employees, vendors, contractors, and the public regarding the procurement of goods and/or services on behalf of the City. The public must have confidence that public funds are spent prudently,on its behalf,and not for the personal benefit of City employees,officials,or their friends. The deliberate elements of actual or perceived conflict of interest,fraud and abuse can be destructive to the public trust. The policies and procedures incorporated within should: • Provide a combined centralized and decentralized procurement program encompassing nationally approved principles and practices. • Be reviewed,thoughtfully and regularly,to ensure the utility of procurement statutes and for periodic modifications for improvements that will enhance the efficiency and effectiveness of the procurement function. • Promote and encourage ethical management and efficiency in City procurement procedures. The purpose of this manual is to establish policies and procedures that will be used to: • Simplify,clarify and modernize the City of Port Arthur's procurement practices. • Ensure the application of consistent and sound business practices in City purchasing and demonstrate our ongoing commitment to increasing communication among the departments. • Bolster public confidence in public procurement procedures. • Ensure the fair and equitable treatment of all persons dealing with the City procurement system. • Foster effective broad-based competition within the free enterprise system. • Provide increased economy in City procurement activities. • Maximize the procurement value of City funds. • Safeguard the high quality and integrity of the procurement system. • Ensure that expenditure of public funds(including Federal and State funds)complies with the terms and conditions of the funding source. If Federal or State requirements conflict with provisions of this manual, nothing in the manual shall prevent the City from complying with the terms and conditions of the Federal or State requirements. Because the City buys diverse services and commodities to support its operation, it uses a combined centralized and decentralized procurement system. These policies set forth the following elements of a centralized/decentralized procurement function: Centralized. These policies are to be followed by anyone who has the authority to act as an agent of the City in the procurement of all goods and services regardless of the dollar value. This authority lies within the Purchasing Division. Decentralized. These policies are for the benefit of City personnel responsible for the procurement of goods and services for their departments in an amount up to$25,000. City of Port Arthur Purchasing Manual Page 5 January 2019Mav 2025 §1-102 Public Procurement. Procurement in the public sector is the process through which a government acquires goods and services. The terms"procurement"and"purchasing"are often used interchangeably. However, "purchasing"is only one of three stages of the procurement cycle. 1. Planning and scheduling. Procurement activities to meet program and budgetary objectives; 2. Source selection. (Purchasing) The process through which solicitations are issued, advertisements run,vendors selected,and goods and services received;and 3. Contract administration. Enforcement of the terms of the purchase agreement or contract and payment of invoices. One of the most important rules of public procurement to remember is that each procurement action results in a legal contract between the City and the supplier. Each procurement action is a legal action. Public procurement activities are governed by common law, the Uniform Commercial Code (UCC), government procurement laws and ordinances and case law. Thus, those persons making procurement decisions are subject to legal constraints(and exposure)well beyond what other City officials may routinely experience. §1-103 Mission. The Purchasing Division's mission is to assist all City departments in the procurement of materials, supplies, equipment and services at the lowest possible cost, consistent with the quality and delivery required. All purchases by an employee,acting as an agent of the City,must be made in an open,fair and ethical manner to promote competition and best serve the taxpayers. §1-104 Function and Responsibilities. A.The Purchasing Division Under the general supervision of the Director of Finance,some of the functions and responsibilities of the Purchasing Division are as follows: • To observe and enforce the procedures outlined and adopted in the City of Port Arthur Procurement Manual,City Ordinances,City Charter and State Law. • To conduct the Purchasing Division in such a frank and open manner that vendors: ➢ Will be aware of the fairness of all awards ➢ Will be encouraged to continually furnish competitive bids so the City shall secure the best goods and services of the right quality and the best price. • To encourage competitive bidding at all times while maintaining good vendor relations. • To solicit new vendors, specifically Port Arthur vendors, and do all things possible to encourage maximum participation. • To maintain a list of vendors classified according to materials, equipment, supplies and services. • To assist department directors in their efforts to purchase all supplies, materials and contractual services for the City. • To explore the possibilities of consolidating purchases of like,when possible,or common items to obtain the maximum economic benefits. 0—To maximize vendor participation by stating"or equivalent'when providing a brand in the•------{Formatted:List Paragraph specification. City of Port Arthur Purchasing Manual Page 6 l9May 2025 • To prepare specifications, where practical, governing purchases of various items. However, when it is proposed to purchase articles of technical or scientific nature for special use, the head of the requisitioning department shall submit recommended specifications. • To provide for the inspection and appropriate testing for goods delivered, although this responsibility may be delegated to the head of the using department, and to insure that inferior or unsatisfactory articles are rejected or returned. • To stay abreast of current developments in the field of purchasing, i.e. prices, market conditions and new products. Investigate and analyze,for the benefit of the City,research done in the field of purchasing by other governmental agencies and by the private industries. • To monitor contract timelines in order to assure timely bids and contract renewals. • To maintain a record of all bids,quotations and purchases. • To investigate violations of the purchasing policies. • To arrange for the disposal of surplus/scrap materials and equipment,including obsolete stock and scrap,as outlined by this manual. • To oversee the operations of the mail center. B.Using Departments The Purchasing Division shall continuously familiarize itself with the particular requirements of the other City departments and be receptive to suggestions or comments. The Using Departments can assist the Purchasing Division in complying with state and local laws and regulations by: • Planning their work so that"Rush Orders"and"Emergencies"will be held to an absolute minimum. Requests for procuring goods and services should be forwarded to the Purchasing Division far enough in advance to allow us to obtain vendors and in turn,allow the vendor sufficient time to complete the request for quotation. • Monitoring staff purchases and requiring strict compliance with policies(i.e.no splitting of invoices to avoid the City's purchasing limits). • Preparing complete and reasonable specifications for materials that require engineering or technical background. Specifications should be written in a way that encourages maximum vendor participation to ensure the City receives the best goods and services at the most advantageous cost. • Assisting the Purchasing Division in developing and maintaining vendor lists by providing contact information as new vendors are identified. • Preparing agenda items timely,to allow for review by the Purchasing Division, Finance Department,Legal Department and the City Manager. • Monitoring contract timelines in order to assure timely bids and contract renewal. • Assisting the Purchasing Manager in establishing maximum and minimum quantities for inventory items and to inform him of any abnormal usage of materials sufficiently in advance so that an adequate supply may be maintained. • No City employee shall purchase supplies, materials or equipment of any kind for personal use. City of Port Arthur Purchasing Manual Page 7 January 2019Mav 2025 C.Vendors The Vendor Community can assist the Purchasing Division in complying with state laws and regulations by: • Following ethical business practices and procedures by working within the purchasing process,treating other vendors fairly and respectfully,not colluding or offering kickbacks. • Providing goods and/or services as specified and on time. • Completing and returning required forms,bid documents,affidavits and conflict of interest questionnaires. • Breach of any one of the aforementioned responsibilities is grounds for the City's Purchasing Manager to declare the vendor irresponsible. This designation will bar that vendor from recommendation for any contracts and removal from the qualified bidder's list. §1-105 Principles. The Purchasing Division personnel shall comply with the principles: • In all transactions,to consider first what is in the best interests of the City. • To believe and carry out the established policies of the City. • To be receptive to competent counsel from colleagues. • To be guided by counsel without impairing the dignity and responsibility of the office. • To establish practical procedures for the conduct of the office. • To subscribe to and work for honesty and truth in buying and selling and to denounce all forms and manifestations of commercial bribery. • To accord a prompt and courteous reception to all who call on a legitimate business mission. • To counsel and assist fellow employees in the performance of their duties. • To cooperate with and participate in organizations and with individuals engaged in activities designed to enhance the development and standards of procurement. §1-106 Code of Ethics. Public employees must discharge their duties impartially so as to assure fair,competitive access to governmental procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the City of Port Arthur's procurement organization. Any employee that makes purchases for the City is an agent of the City and is required to follow the City's Code of Ethics. Additionally, the City's Purchasing Division is a member of the National Institute of Governmental Purchasing(NIGP), a national organization of procurement professionals. As members of NIGP,the Purchasing Division believes that the following NIGP ethical principles should govern the conduct of every person employed by a public sector procurement or materials management organization. A Procurement professional: • Seeks or accepts a position as head(or employee) only when fully in accord with the professional principles applicable thereto and when confident of possessing the qualifications to serve under those principles to the advantage of the employing organization. City of Port Arthur Purchasing Manual Page 8 January 2019May 2025 • Believes in the dignity and worth of the service rendered by the organization, and the societal responsibilities assumed as a trusted public servant. • Is governed by the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the organization and the public being served. • Believes that personal aggrandizement or personal profit obtained through misuse of public or personal relationships is dishonest and not tolerable. • Identifies and eliminates participation of any individual in operational situations where a conflict of interest may be involved. • Believes that an official or employee of a public entity should at no time, or under any circumstances,accept directly or indirectly,gifts,gratuities,or other things of value from suppliers,which might influence or appear to influence purchasing decisions. • Keeps the governmental organization informed,through appropriate channels,on problems and progress of applicable operations by emphasizing the importance of the facts. • Resists encroachment on control of personnel in order to preserve integrity as a professional manager. • Handles all personnel matters on a merit basis, and in compliance with applicable laws prohibiting discrimination in employment on the basis of politics,religion,color,national origin,disability,gender,age,pregnancy and other protected characteristics. • Seeks or dispenses no personal favors. Handles each administrative problem objectively and empathetically,without discrimination. §1-107 Conduct When Dealing with Vendors. All employees of the City are prohibited from accepting any gifts,samples,entertainment,special personal price considerations,fees,commissions or other gratuities from any vendors or bidders consistent with the Texas Penal Code. Employees may accept items of negligible value used as obvious forms of advertisement such as pencils,calendars,notepads and key rings,etc,which shall not be considered gratuities. Vendors or bidders who offer gifts, entertainment, etc. may be declared irresponsible bidders and may be debarred from bidding. An employee who accepts a gift,entertainment,etc.shall be subject to disciplinary action,up to and including termination. Vendor contact with employees in using departments should be through or with the knowledge of a Purchasing Division employee. The intent is to prevent vendors from bypassing the Purchasing Division in an attempt to influence employees. When performing procurement duties on behalf of the City,it is important to: • Deal with suppliers fairly. • Do not play the"meet or beat"game with pricing among bidders. • Offer to give equal assistance to all suppliers and potential vendors. • Be certain to make procurement records open and available to anyone requesting information consistent with the Texas Public Information Act. This excludes information you receive that is proprietary or confidential. • Make certain solicitation activities are truly competitive. • State the award criteria in the terms of the solicitation and do not change those criteria without each bidder's knowledge. City of Port Arthur Purchasing Manual Page 9 January 2019May 2025 Mr • No preference should be given,goods or services should not be called proprietary or sole source unless it is determined that they are and that determination can be documented. • No subjective favoritism is permitted; for example, a statement like "We have always bought from that vendor"is reasoning that does not encourage or allow for competition. • Be certain to give the same kind of service to internal customers and external suppliers as you expect to receive from them. The ability to make purchases on behalf of the City does not entitle the purchaser to any kind of special personal privileges from the vendor and no professional buying for the City should be,in any way,tied to any personal purchases at any time. PERCEPTION IS EVERYTHING. Even if a procurement decision is sound, the method of determination should be documented and will be open to public inspection. If a decision is perceived to be less than fair to all competitors,then the perception becomes the reality to the unsuccessful bidders. And,if the opinion is that the City has"favorite companies we always do business with,"our job is to set the record straight with all who may have this complaint. It is important that awards are made based on competition or the best value for the City, that the reason(s)for those awards is documented and defensible,and that a decision is based on fact and is made in the best interest of the City. §1-108 Procurement Records and Information. Public access to procurement information. Procurement information shall be a public record and shall be available to the public consistent with the Texas Public Information Act. Copies ofprocurement information. Copies of procurement information,subject to public access, are available to the public upon written request. A charge of$.10 per page will be collected from the requesting party and shall be paid to the City of Port Arthur,TX prior to obtaining the copies. City of Port Arthur Purchasing Manual Page 10 May 2025 CHAPTER 2^-ADMINISTRATIVE MATTERS §2-101 Applicability. Policies and procedures set forth in this manual shall apply to all publicly funded purchases entered into by the City. Contracts funded,in whole or in part,with federal assistance monies shall comply with the appropriate federal law and the rules and regulations promulgated pursuant to such law. Policies and procedures set forth in this manual shall apply to all employees acting as agents of the City for the purpose of procurement of goods and/or services. Any employee who expends City funds:(a)for personal use;(b)without the written approval of his/her manager;(c)without being authorized to act as an agent of the City;or(d)without following the procedures as set forth by the City will be subject to disciplinary action(s). §2-102 Changes to the Manual. All policy changes shall be made by City Council approved resolution(s)/ordinance(s) and incorporated herein. Grammar and/or punctuation changes made for clarification or easier interpretation may be made by the Purchasing Manager provided no policy(s)is affected by the change(s). §2-103 Signatory Authorities and Approval Thresholds. Generally, a City is required to follow the bidding or proposal procedures outlined in Local Government Code Chapter 252 when it plans to make an expenditure of more than$50,000 of city funds.Only the City Council has the authority,or may designate the authority,to commit funds. The City Council,by resolution,has authorized spending limits as follows: > DEPARTMENT DIRECTOR; $.01-$5,00 ➢ PURCHASING MANAGER $.01-$5,000 > CITY MANAGER $.01-$25,000 ➢ CITY COUNCIL APPROVAL >$25,000 The City Manager and Department may submit a designee to approve purchases. The City Manager approves all designee's.The designee must be an Assistant Manager or Division Head. The City Manager and Department Directors will be responsible for all purchases under their authority.A list of all authorized approvers names and signatures, including designee's will be maintained by the Purchasing Manager and Assistant Director of Finance. The Purchasing Division requests that each City Department designate a buyer for its area. Authority has been granted for each designated department buyer to obtain at least three (3) written quotes up to $25,000 for items that have been approved in the City budget. Any quotes over$25,000 must be presented to City Council for approval prior to transacting a purchase. Once written quotes have been received,a purchase requisition must be entered into the system. A purchase order will be processed by the Purchasing Division authorizing the vendor to provide the goods and/or services requested. Any authorization of a purchase to a vendor without a purchase order is not valid.The Purchasing Manager will sign any purchase order over$500.Any purchase order under$500 does not require a signature. Any department requiring assistance for any purchase, regardless of the estimated cost, should contact the Purchasing Division. §2-104 Department Representative(s). City of Port Arthur Purchasing Manual Page 11 January T0l9May 2025 Department heads of each department shall appoint a responsible and qualified employee(s)who shall assume the duties of liaison between their department and the Purchasing Division. The employee shall be responsible for the proper initiation of all purchasing matters concerning their departments, for the supervision of all receiving procedures and handling inventory for their department. All department heads shall make provisions to appoint an alternate in order to ensure that this program is maintained during the representative's absence. The Purchasing Division shall be advised by each department head of the name of the individual(s) who is designated as its representative. §2-105 Local Business Preference. The City is committed to supporting our Port Arthur vendors. Departments must patronize our local vendors within the guidelines of the law. A City may provide a preference for local business when awarding bids. State law allows such a preference only in specifically authorized situations. Per Resolution No.09-379,the City Council has adopted policy consistent with State law granting local vendors'preference in contracting. Section 271.9051 of the Texas Local Government Code allows an eligible municipality to award a contract to a local bidder if the local bidder is within five percent(5%)of the lowest bid price.In this instance,a contract for construction services must be for an amount less than$100,000.00.A contract for other purchases must be an amount less than$500,000.00. The City Council must determine,in writing,that the local bidder offers the City of Port Arthur or its affiliates the best combination of contract price and additional economic development opportunities for the City created by the contract award,including the employment of Port Arthur residents and increased tax revenues to the local government. This preference does not apply to acquisitions utilizing federal funding in whole or in part. §2-106 Historically Underutilized Business(HUB). A city must contact at least two historically underutilized businesses if the city makes an expenditure of between$3,000 and$50,000. (1) Definition. Is (a) at least 51%owned by an Asian Pacific American, Black American, Hispanic American, Native American and/or American woman, (b) an entity with its principal place of business in Texas, and (c) has an owner residing in Texas with a proportionate interest that actively participates in the control,operations and management of the entity's affairs. (2) Requirements. According to§252.0215 of the Texas Local Government Code,the City,in making an expenditure of more than$3,000 but less than$50,000,must contact at least two HUBs on a rotating basis,based on information provided by the comptroller. If the list fails to identify a HUB in Jefferson County,the City is exempt. If the expenditure is for less than$3,000 or for more than$50,000,this special notification requirement does not apply. (3) Procedure. Departments must contact at least two HUBs in the procurement process of construction,goods and services(including professional and consulting)if the expenditure is between $3,000 and $50,000. To determine what businesses within the county are classified as HUBs,departments can access the comptroller's website: http://www.window.state.tx.us/procurement/cmbl/hubon 1y.htm 1 City of Port Arthur Purchasing Manual Page 12 January 2019May 2025 and enter appropriate search criteria. §2-107 Disadvantaged Business Enterprise(DBE). (1) Definition. A for-profit small business concern: (1)that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged,or,in the case of a corporation, 51 percent of the stock of which is owned by one or more such individuals; and(2)whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. (2) Requirements. 49 CFR§26.21 of the Federal Transit Administration(FTA)Best Practices Procurement Manual requires all FTA recipients who receive$250,000 or more in FTA planning, capital,and/or operating assistance in a Federal fiscal year, and who let DOT- assisted contracts,to have a DBE program meeting the requirements of 49 CFR part 26. (3) Procedure. All procurements that involve the expenditure of FTA monies shall comply with such federal law and authorized regulations which are mandatorily applicable and which are not presently reflected in this manual. §2-108 Conflict of Interest. Chapter 176 of the Texas Local Government Code requires a vendor that wishes to conduct business or be considered for business with the City of Port Arthur, Texas to file a conflict of interest questionnaire. This statute applies to all persons or businesses who conduct business with the City, including those who submit bids on city contracts, make purchases of surplus city property,or participate in any other purchase or sales transactions with a city. Pursuant to the requirements of§176.002(a)and§176.003 of the Texas Local Government Code, vendors or respondents who meet the following criteria must fill out a conflict of interest questionnaire no later than the seventh(76') day after the person begins contract discussions or negotiations with the City or submit an application,response to a request for proposals or bids, correspondence,or another writing related to a potential agreement with the City: A vendor or respondent that— (1) contracts or seeks to contract for the sale or purchase of property,goods,or services with a local governmental entity;or (2) is an agent of a person described in Subdivision(1)in the person's business with a local governmental entity. Any person who meets the criteria,as for enforcement to ensure the veracity of the vendors,the statute makes it a Class C Misdemeanor to violate the vendor disclosure provisions. The forms required to comply with the above Government Code are available on the Ethics Commission website at http://www.ethics.state.tx.us/forms/CIQ.pdf. See Exhibit A. The City shall not contract for goods or services for any department if the contract is with an employee of that department. Furthermore,contracting for goods or services with an employee,administrative officer,member of the employee's immediate family, or a company which is owned in whole or part by an employee,administrative officer,or a member of his/her immediate family,or a company in which an employee, administrative officer, or a member of his/her immediate family has a financial interest(as defined below),is permitted providing strict adherence to the following requirements: • The Purchasing Division shall be notified immediately in writing,of such an ownership interest or financial interest. City of Port Arthur Purchasing Manual Page 13 January 2019May 2025 • No contract for goods or services shall be written to an employee owned business if it could be construed or there is an appearance that the City employee owned business has an advantage over other competitors. • No solicitation of business by the employee shall take place during his/her normal duty hours. • All purchases or contracts involving employee owned businesses,regardless of estimated cost,shall be completed by the Purchasing Division. For the purpose of this provision, • Owned in part means having an ownership interest of more than 10%of the business. • Financial interest means any interest in the business by means of a loan or other evidence of indebtedness,in excess of 10%of said business'outstanding indebtedness. • Immediate family is defined as a spouse,parent,child,or sibling. §2-109 Tax Exempt Status. The City is exempt from federal, state, and local taxes except in certain prescribed cases. An exemption certificate is available from the Purchasing Division and should be furnished to any of the City's suppliers upon request. See Exhibit B §2-110 Confidential Information. It shall be a breach of ethics for any employee or former employee of the City of Port Arthur to knowingly use confidential information for actual or anticipated personal gain,or for the actual or anticipated gain of any person. In addition, Section 39.06 of the Texas Penal Code makes it a criminal offense for a public servant to use confidential information for personal gain. City of Port Arthur Purchasing Manual Page 14 January 2019May 2025 CHAPTER 3^-SOURCE SELECTION Part A—Methods of Source Selection §3-101 Methods of Source Selection. There are a variety of methods available to acquire goods and services. Unless otherwise authorized by law,all City contracts shall be awarded by one of the following methods: (a) Section 3-102(Competitive Sealed Bidding); (b) Section 3-103(Competitive Sealed Proposals); (c) Section 3-104(Small Purchases); (d) Section 3-105(Sole Source Procurement); (e) Section 3-106(Emergency Procurements); W Section 3-107(Special Procurements); (g) Section 10-102(Architectural and Engineering Services). §3-102 Competitive Sealed Bidding. (1) Conditions for Use. Contracts shall be awarded by competitive sealed bidding for any solicitation that is projected to exceed$50,000 except as otherwise provided in Section 3- 101 (Methods of Source Selection). (2) Invitation for Bids. State law requires a formal,competitive process for purchases of more than$50,000(Texas Local Government Code§252.021).However,there are sixteen(16) general exceptions delineated in Section 252.022 of the Local Government Code. An Invitation for Bids shall be issued and shall include,at a minimum: • the purchase description, • contractual terms and conditions applicable to the procurement, • any special terms and conditions, • criteria for evaluating the bids received • whether the bid will be awarded by line item,groups of items or the entire bid. (3) Public Notice. Any solicitation that is projected to exceed$50,000(at a minimum)will be advertised. In accordance with§252.041 of the Texas Local Government Code:"notice of the time and place at which the bids will be publicly opened and read aloud must be published at least once a week for two consecutive weeks in a newspaper published in the municipality. The date of the first publication must be before the 14th day before the date set to publicly open the bids and read them aloud." Bids are also posted on the City's website and Public Purchase,a free intemet vendor registration and bid notification system. (4) Bid Opening. Bids shall be opened publicly in the presence of one 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 may be specified by regulation,together with the name of each bidder shall be recorded;the record and each bid shall be open to public inspection. City of Port Arthur Purchasing Manual Page 15 January 2019May 2025 11, (5) Bid Acceptance. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this manual. Un-opened bids are to be time and date stamped to validate the time of receipt. The clock located in the City Secretary's office will be the official time. Late bids shall not be considered and will be returned un-opened to the bidder. Bids which are lacking an appropriate signature on the Bid Proposal page or Affidavit form will be rejected. The Affidavit allows bidders to verify that they are not in arrears in their obligations to the City. See Article VI,Section 2-262 of the City's Code of Ordinances. Bids which are not received in a sealed envelope by bid opening date/time will be rejected by the Purchasing Division.This includes all envelopes,which are secured by metal clasp, twist tie string,etc or those,which do not otherwise preclude unauthorized access.Bidders who deliver their bids in an envelope which is not sealed may be allowed to correct this deficiency provided they do so before time/date specified for opening of bids. (6) Bid Evaluation. Bids shall be evaluated based on the criteria set forth in the Invitation for Bids in order to determine which represents the lowest responsive and responsible bidder. Any criteria,other than price,to be used in evaluating solicitations shall be clear and exact and stated in the Invitation for Bids. They must be stated with sufficient clarity and exactness to inform each bidder of the factors which will be used in evaluating a bid in relation to others. This statement enables bidders to estimate,within reasonable limits,the effect of the application of the evaluation factors to their bid. Factors such as estimated quantities,and delivery time when the need is urgent,together with liquidated damages in case of delay and any other circumstances which may cause the award to be made in an "unusual"manner,must be set forth in the request for quotations or invitation for bids. If a bid is non-responsive then it must be rejected and there is no need to continue the evaluation. Rejected bidders are not to be considered for award. Responsiveness is compliance with the requirements of the solicitation, including specifications and contractual terms and conditions. It also insures that all bidders respond to a solicitation in a common manner that provides the basis for equal competition. Absolute conformity is not required. Conformity in material respects suffices. This protects the bidders from being denied from the competition for reasons that are inconsequential. Failure by the bidder to accept the requirements of the bid is grounds for rejection of its bid. Some common instances where bids must be rejected and declared non-responsive are: • The bidder states that it will not accept an award unless the solicitation terms and conditions are modified or altered. • The bidder states that it will only accept an award for all line items when the solicitation allows award by line item or aggregate grouping of line items. • The bid is not submitted on the City's Bid Proposal page. • The Affidavit is not signed and notarized. • The bidder is found to be in arrears in their obligations to the City. • The bidder has been identified on the EPLSSAM. See§9-102 • The bid item does not meet the stated specifications and the bidder has not indicated the item bid is an alternate. (7) Correction or Withdrawal of Bids; Cancellation of Awards.Bidders are allowed to make corrections to their bid only before the bid opening date and time. Bids will still be due at City of Port Arthur Purchasing Manual Page 16 January 2019Mav 2025 the specified date and time in order to be considered for award.A bid that has been opened may not be changed for the purpose of correcting an error in the bid price. This chapter does not change the common law right of a bidder to withdraw a bid due to a material mistake in the bid. A bidder choosing to withdraw their bid may do so by providing a signed letter requesting to withdraw their bid. The withdrawal request letter must identify the method of return or identify the person authorized to receive the bid. If no method of bid return is identified, the bid shall be destroyed after bid opening. Cancellation of awards or contracts shall be permitted with City Council approval and is appropriate only under the following circumstances: • Unavailable, inadequate, ambiguous specifications, terms, conditions or requirements were cited in the solicitation; • Specifications,terms,conditions or requirements have been revised; • The supplies or services being contracted for are no longer required; • The solicitation did not provide for consideration of all factors of cost to the agency; • Bids received indicate that the needs of the agency can be satisfied by less expensive article differing from that for which the bids were invited; • All otherwise acceptable bids received are at unreasonable prices or only one bid is received and the agency cannot determine the reasonableness of the bid price; • No responsive bid has been received from a responsible bidder,or • The bid process was not fair or equitable. If any of the above criteria apply to the solicitation and an award is not consistent with the City's best interests, one of the following actions should be taken, as appropriate, after Council approval: Re-bid 1. Document the purchase file with summary narrative fully explaining the decision making process that lead to the decision to re-bid. 2. The narrative must clearly demonstrate that one or more of the statutory criteria are met. 3. Initiate the re-bid process and make changes to bid document as appropriate. Cancellation of Invitation for Bid I. The bid may be cancelled if the services or supplies are no longer needed. 2. Document the purchase file with summary narrative fully explaining the decision making process that lead to the decision to cancel the procurement. 3. The narrative must clearly demonstrate that one or more of the statutory criteria are met. (8) Award. The contract shall be awarded with reasonable promptness by the City Council to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the City. In determining the best value for the City,the City may consider those things listed in§252.043 of the Texas Local Government Code.If the Best Value Method is utilized,it must be specifically stated in the bid specifications. City of Port Arthur Purchasing Manual Page 17 January 2019MaN 2025 Identical Bids. In cases where bidding is required and where two or more responsible bidders submit the lowest and best bids and these bids are identical in both amount and nature, the governing body of the City shall enter into a contract with only one of the responsible bidders and reject all other bids. If only one of the bidders submitting identical bids is a resident of the City of Port Arthur, the City must select that bidder. If two or more of the bidders submitting identical bids are residents of the City,the bidder shall be selected by casting of lots. In all other cases,the City must select from the identical bids by the casting of lots. The casting of lots must be in a manner prescribed by the Mayor or governing body,as the case may be,and must be conducted in the presence of the governing body of the City at which time all qualified bidders or their legal representatives may be present. Nothing herein shall prohibit the rejection of all bids by the governing body. §271.901 of the Texas Local Government Code. (9) Multi-Step Sealed Bidding.When it is considered impractical to initially prepare a purchase description to support an award based on price,a Request for Information(RFI)may be issued requesting the submission of un-priced offers to be followed by an Invitation for Bids. §3-103 Competitive Sealed Proposals. (1) Conditions for Use. A contract may be entered into by competitive sealed proposals when the Purchasing Manager or a designee above the level of the Purchasing Manager determines that the use of competitive sealed bidding is either not practicable or not advantageous to the City. (2) Request for Proposals. Proposals shall be solicited through a Request for Proposals(RFP). The relative importance of price and other evaluation factors must be specified. (3) Public Notice. Adequate public notice of the RFP shall be given in the same manner as provided in Section 3-102(3). (Competitive Sealed Bidding,Public Notice) (4) Receipt of Proposals. Proposals shall be opened so as to avoid disclosure of contents to competing offerors. Only the name and location of the responding vendors will be announced. A Register of Proposals shall be prepared and shall be open for public inspection. (5) Evaluation Factors. The RFP shall state the relative importance of price and other factors and sub-factors,if any,that will be considered in awarding a contract. Proposals shall be evaluated by committee to be formed by the Purchasing Manager. The evaluation committee shall screen and rate all of the responses that are submitted. (6) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the RFP, discussions may be conducted with up to five (5) responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions,there shall be no disclosure of any information derived from proposals submitted by competing offerors. City of Port Arthur Purchasing Manual Page 18 January 2019May 2025 (7) Award. Award shall be made to the responsible offeror whose proposal conforms to the solicitation and is determined in writing to be the most advantageous to the City taking into consideration price and the evaluation factors set forth in the RFP. No other factors or criteria shall be used in the evaluation. Written notice of the award of a contract to the successful offeror shall be given to all offerors. (8) Debriefings. The Purchasing Manager is authorized to provide debriefings that furnish the basis for the source selection decision and contract award only after an award has been made by City Council. §3-104 Small Purchases. (1) Conditions for Use. Any procurement not exceeding $25,000 may be made by the Department Head or his designee in accordance with small purchase procedures provided below. Purchases above$25,000 will be procured by the Purchasing Division. Purchases shall not be artificially divided so as to constitute a small purchase under this Section. Note:Any purchase expected to exceed$25,000 must be approved by City Council. (2) Request for Quotes. Quotes are to be solicited for purchases between$1,000 and$24,999. • A minimum of three(3) quotations shall be sought from Port Arthur vendors, if available. If fewer than three (3) sources are solicited, the reasons are to be explained within the Purchase Requisition. • A minimum of one (1) minority-owned business and one (1) woman-owned business shall be invited to quote,if available. See§2-106 • Awarded to the lowest,responsive and responsible quote. • If the description of the need is lengthy or complicated,a written solicitation should be used. The following elements should,at a minimum,be included in a Request for Quotes: • Administrative information:name,address,and phone number of using department and any special shipping instructions. • Any special terms and conditions. • The purchase description. • Specifications covering the item or items needed. • Criteria for evaluating the quotes received. (3) Procurement Cards. (pCards) An alternative procurement and payment method designed to reduce costs while preserving procurement controls. For policies and procedures pertaining to pCard purchases see§8-101. (4) Field Purchase Orders. (FPOs) FPOs are limited to a maximum dollar amount of$500 and the items must be purchased from Port Arthur vendors. City of Port Arthur Purchasing Manual Page 19 January 2019May 2025 §3-105 Sole Source Procurement. (1) Conditions for Use. Sole Source purchases are exempt from the standard bidding requirement according to§252.022(7)of the Texas Local Government Code. (2) Types of Sole Source Purchases. a) One-of-a-Kind—The product has no competitive product and is available from only one supplier. The product has essential unique design/performance features providing superior utility not obtainable from similar products. b) Compatibility — The product must match an existing brand of equipment for compatibility and is available from only one supplier. • Products that are an integral repair part or accessory compatible with existing equipment. • Products that, although not an integral repair part or accessory, must be compatible with existing equipment, systems or a substantial parts inventory and compatibility is the overriding consideration. c) Replacement Part—The product is a replacement part for a specific brand of existing equipment and is available from only one supplier • Components or replacement parts for which there is no commercially available substitute. (Ex.Components of a major assembly.) • Warranty required service and/or parts. d) Legal Monopoly—Circumstances may dictate that only one supplier can furnish the service such as Utility services. (3) Public Notice. Adequate public notice of the intent to award a sole source purchase will be posted on the City's website and Public Purchase for those purchases expected to exceed $5,000. (4) Procedure. Using Departments must complete the"Request for Sole Source Purchase" form(Exhibit C)and submit to the Purchasing Division. Upon approval by the Purchasing Manager, any purchases exceeding $25,000 must be submitted to City Council for approval. If there is any reasonable doubt to the validity of a'sole source',competition will be attempted by the Purchasing Division in a manner appropriate to the projected budget. §3-106 Emergency Procurements. (1) Conditions for Use. An emergency purchase may be warranted to prevent a hazard to life, health,safety,welfare,property or to avoid undue additional cost to the City. (2) Procedure. Emergency purchases exceeding $5,000 require a letter of justification documenting the emergency and must be approved by the City Manager or his designee. Using Departments should complete the"Request for Emergency Purchase"form(Exhibit D)and submit to the City Manager for signature. The purchase must be placed on the next City Council agenda for ratification. §3-107 Cooperative Procurements. (1) Definition. The Interlocal Cooperation Act, Chapter 791 of the Government Code and Chapter 271, subchapters F and G, of the Local Government Code authorizes local governments to enter into interlocal agreements with other governmental jurisdictions City of Port Arthur Purchasing Manual Page 20 January 2019May 2025 including all states within the United States, independent school districts, counties, councils of governments, and non-profit corporations created to provide various governmental functions/services. Furthermore,§271.103 of the Texas Local Government Code provides for the purchase of goods and services under Federal supply schedules of the U.S.General Services Administration. (2) Requirements. Purchases of goods and services through co-ops satisfies any state law requiring the City to seek competitive bids for the purchase of the goods or services. Using Departments are requested to contact the Purchasing Division before attempting to secure pricing through any co-ops. Part B—Determinations and Reports §3-201 Finality of Determinations. The determinations required by Section 3-102(7) (Competitive Sealed Bidding, Correction or Withdrawal of Bids;Cancellation of Awards), Section 3-103(1)(Competitive Sealed Proposals, Conditions for Use), Section 3-103(7) (Competitive Sealed Proposals, Award), Section 3-105 (Sole Source Procurement), Section 3-106 (Emergency Procurements), Section 3-107 (Special Procurement), Section 5-101 (Multi-Year Contracts) are final and conclusive unless they are clearly erroneous,arbitrary,capricious,or contrary to law. §3-202 Bid Protests. (1) Notice of Protest. A vendor wishing to protest any aspect of the procurement process must do so in writing and submit to the Purchasing Manager. The written protest should include, at a minimum: • Both the name and address of the protestor,as well as the vendor they represent, if different. • The name of the bid being protested. • A statement of the grounds for protest and any supporting documentation. A protest may be submitted to the Purchasing Manager no later than five(5)working days after award. (2) Staff Review. A protest must be in writing and supported by sufficient information in order to be considered.A decision and response to the protest will be prepared by the Purchasing Manager or his designee,in consultation with the department and the City Attorney,within fifteen(15)days of receipt of the protest. Within the fifteen(15)day time period,the City will: • Allow for informal conference on the merits of the protest with all interested parties. • Allow for reconsideration if data becomes available that was not previously known,or if there has been an error of law or regulation. • Render a decision supporting or canceling the award,such decision shall be in the form of a staff recommendation. (3) Appeals. If the protesting vendor does not agree with staff recommendation, they may appeal to the City Council by contacting the City Secretary. Staff recommendations will be made available for public review prior to consideration by the City Council. City of Port Arthur Purchasing Manual Page 21 January 20I9Mav 2025 §3-203 Reporting of Anticompetitive Practices. When for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors,a notice of the relevant facts shall be transmitted to the Attorney General. §3-204 Retention of Procurement Records. All procurement records shall be retained and disposed of in accordance with records retention guidelines and schedules approved by the City Council. All procurement records must be made available to the City Secretary in order to remain in compliance with the City's Records Retention Schedule. City of Port Arthur Purchasing Manual Page 22 January 20l9May 2025 CHAPTER 4-SPECIFICATIONS AND AMENDMENTS Part A—Specifications §4-101 Specification Preparation. The creation and submission of specifications to the Purchasing Division is the responsibility of the Using Department. Purchasing will assist the Using Department in any way necessary to develop specifications that will promote full and unrestricted competition. Departments should provide the Purchasing Division at least two(2)weeks to properly prepare a solicitation. It is imperative that Using Departments carefully plan their requests giving consideration to the Purchasing Division's timelines in connection with department deadlines. All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the City's needs,and shall not be unduly restrictive. §4-102 Specifications Prepared by Other Than City Personnel. The requirements of this chapter regarding the purposes and non-restrictiveness of specifications shall apply to all specifications prepared other than by City personnel,including,but not limited to,those prepared by architects,engineers,and designers. §4-103 Specification Amendments. If, after issuance of a solicitation, changes must be made in quantity, specifications, delivery schedule, or closing date, or if corrections are needed because of defects or ambiguities, an amendment to the solicitation will be issued,in writing,no later than twenty-four(24)hours prior to the date and time fixed for submission of bids/proposals. Sole issuing authority of addenda shall be vested in the Purchasing Manager. If there was a mandatory pre-bid conference, only those vendors that were in attendance will be notified of amendments. Bidders are required to sign the amendment and submit it with their bid,attesting to the fact that the changes are reflected in their bid. Failure to submit a signed amendment may be grounds for a bid to be rejected. The City assumes no responsibility for the proposer's failure to obtain and/or properly submit any addendum. It is the vendor's responsibility to check for any addendums that might have been issued before bid closing date and time. All addenda will be numbered consecutively,beginning with 1. §4-104Pre-Bid Conferences and Site Visits. (1) Conditions for Use. A pre-bid conference may be held when specifications or the scope of work is considered somewhat complex and requirements need to be clarified by City personnel. Because of this, pre-bid conferences are mandatory and any vendor/supplier that does not attend will not be allowed to bid. (2) Process. The Purchasing Manager of the City of Port Arthur or his designee shall conduct all pre-bid meetings. In addition to the Purchasing Manager or his designee,there will be at least one city employee from the requesting department present at the pre-bid meeting. This employee must be knowledgeable of the bid specifications and should be prepared to answer all questions that pertain to the specifications. Pre-bid conferences and site visits are an opportunity for dialogue between the Purchasing Division,the Using Department and the Supplier community,and to facilitate the timely exchange of information to enable all involved to clarify bidding requirements and specific program needs. Bidder servicing or equipment capabilities, application of industry requirements or standards may be clarified. In addition,any need for changes in specifications or bid requirements may be identified to facilitate a more competitive environment or to better define the City's needs City of Port Arthur Purchasing Manual Page 23 January 2019May 2025 so that the City obtains the desired materials, equipment or services to meet the City's program needs. Sign-in sheets will be made available to all attending the pre-bid conference. Bids received from vendors not listed on the roll of attendees of mandatory pre-bid conferences will be rejected and returned unopened to the bidder. City of Port Arthur Purchasing Manual Page 24 January 2019:May 2025 CHAPTER 5—LEGAL REQUIREMENTS Part A--Bonds To ensure that the successful bidder will enter into a contract with the City and complete the project as defined by the bid specifications,bidders may be required to provide the City with surety bonds guaranteeing successful completion of the contract. There are three types of surety bonds commonly used with City contracts as listed below. A surety is a firm (usually an insurance company)that will guarantee that the bidder will perform as defined by the specifications. The City will only accept corporate sureties as bonding entities. Personal sureties are unacceptable. Any required bonds must be issued to the City of Port Arthur before any work can begin. §5-101 Payment Bonds. (1) Definition. Payment Bonds are solely for the protection and use of payment bond beneficiaries who have a direct contractual relationship with the prime contractor or a subcontractor to supply public work,labor or material. (2) When Required—Amounts. In accordance with Chapter 2253 of the Government Code,a payment bond is required if a public work contract is in excess of fifty thousand dollars ($50,000). Bonds shall be furnished on prescribed forms in the amount of one hundred percent(100%)of the contract price with corporate surety duly authorized to do business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a certified and effective date copy of their Power of Attorney. (3) Authority to Require Additional Bonds. Nothing shall be construed to limit the City to require a payment bond or other security in addition to such bonds,or in circumstances other than specified in this manual. (4) Suits on Payment Bonds—Right to Institute. Every person who has furnished labor or material to the contractor or its subcontractors for the work provided in the contract, in respect of which a payment bond is furnished under this Section, and who has not been paid in full therefore before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by such person or material was furnished or supplied by such person for which such claim is made, shall have the right to sue on the payment bond for the amount,or the balance thereof,unpaid at the time of institution of such suit and to prosecute said action for the sum or sums justly due such person;provided, however,that any person having a direct contractual relationship with a subcontractor of the contractor, but no contractual relationship express or implied with the contractor furnishing said payment bond, shall have a right of action upon the payment bond upon giving written notice to the contractor within 90 days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material upon which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed.Such notice shall be personally served or served by other form of receipted transmittal that confirms actual delivery to the contractor at any place the contractor maintains an office or conducts its business. (5) Suits on Payment Bonds—Where and When Brought. Every suit instituted upon a payment bond shall be brought in a court of competent jurisdiction for the county or district in which the construction contract was to be performed,but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or City of Port Arthur Purchasing Manual Page 25 January 2019May 2025 material was supplied by the person bringing suit. The obligee named in the bond need not be joined as a party in any such suit. §5-102 Performance Bonds. (1) Definition. Performance Bonds are solely for the protection of the governmental entity awarding the public work contract and are conditioned on the faithful performance of the work in accordance with the plans,specifications,and contract documents. (2) When Required—Amounts. In accordance with Chapter 2253 of the Government Code,a performance bond is required if a public work contract is in excess of one hundred thousand dollars ($100,000). Bonds shall be furnished on prescribed forms in the amount of one hundred percent(100%)of the contract price with corporate surety duly authorized to do business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a certified and effective date copy of their Power of Attorney. §5-103 Bid Bonds. (1) Definition. A bid bond shows proof of guarantee to the governmental entity that you can comply with the bid contract and also that you can accomplish the job as laid out in the contract.It is a guarantee stating that you have the capability to take on and implement the project once you are selected during the bidding process. (2) Requirement for Bid Security. Bids for public works projects of$15,000 to$25,000 shall be accompanied by a bid guarantee of a certified check or cashier's check payable without recourse to the City. Bids for public works projects of $25,000 of more shall be accompanied by a bid bond with corporate security authorized to conduct business in the State of Texas. Chapter 2,Article VI,Sec.2-281 of the Code of Ordinances (3) Amount of Security. Bid security,regardless of project amount,shall be in an amount not less than five percent(5%)of the amount of the total bid. (4) Rejection of Bids for Noncompliance with Bid Security Requirements. When the solicitation requires security,noncompliance requires that the bid be rejected. (5) Withdrawal of Bids. After bids are opened,they shall be irrevocable for the period of sixty (60) days or as specified in the solicitation (except as provided for bids in Section 3- 102(7)). Part B—Insurance All insurance must be written by an insurer licensed to conduct business in the State of Texas, unless otherwise permitted by Owner.The Contractor shall,at his own expense,purchase,maintain and keep in force insurance that will protect against injury and/or damages which may arise out of, or result from, operations under a contract, whether the operations be by himself or by any subcontractor or by anyone directly or indirectly employed by any of them,or by anyone for whose acts any of them may be liable. The minimum insurance required for public works projects will be the types and amounts required in the most recent edition of the Standard Specifications for Public Works Construction issued by the North Central Texas Council of Governments. The Purchasing Manager,Risk Manager,City Engineer,Consulting Engineer or Architect may increase the amounts of insurance required for any project. For construction and construction-related projects,all contractors and sub-contractors, including those delivering equipment or materials, performing service on a Public Works project, shall City of Port Arthur Purchasing Manual Page 26 January 2019Mav 2025 provide Texas workers' compensation for all employees. All contractors shall provide proof of coverage satisfactory to the City. Prime contractors are responsible for seeing that sub-contractors carry the same or higher insurance amounts as those required of the prime contractor. Contracts shall post required signs at job site(s)informing all workers of their right to workers'compensation coverage. Errors and Omissions Insurance Errors and omissions insurance shall be required to cover architectural and engineering services. Part C—Prompt Payment Act Payment will be made upon receipt of the original invoice and the acceptance of the goods or services by the City of Port Arthur, in accordance with the State of Texas Prompt Payment Act. The City's standard payment terms are net 30,i.e.payment is made within thirty(30)days from the date of the invoice. City of Port Arthur Purchasing Manual Page 27 January 2019May 2025 CHAPTER 6^-CONTRACT ADMINISTRATION,MODIFICATION AND TERMINATION Part A—General Information All written contracts, whether they have been competitively bid or not, require City Council approval. Legal review is required on all written contracts being presented to City Council for approval. Contracts that require payment by the City must be approved by the Finance Director for the availability of funds before being presented to City Council for approval. Any contracts that have been competitively bid must be reviewed by the Purchasing Manager before being presented to City Council for approval. Part B—Types of Contracts The preferred type of contract to use for procurements is firm fixed price. It requires minimum administration and provides maximum incentive to the supplier. Examples of other contract types permitted are fixed-price with economic price adjustments, fixed-price incentive, cost- reimbursement,and time and materials contracts.However,any type of contract that will promote the best interest of the City may be used. A cost-reimbursement contract may be used only when a determination is made in writing that such a contract is likely to be less costly to the City than any other type or that it is impracticable to obtain the supplies,services,or construction required except under such a contract. The use of a cost-plus-a-percentage-of-cost contract is prohibited. Contracts based upon percentage discounts from or percentages added to prices listed in a manufacturer's published price list,in general distribution,are not considered to be cost-plus-a-percentage-of-cost contracts. §6-101 Multi-Year Contracts. (1) Specified Period. Unless otherwise provided by law,a contract for supplies or services may be entered into for any period of time deemed to be in the best interest of the City provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefore. (2) Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period,the contract shall be cancelled. Part C—Contract Administration §6-201 Execution. (1) City Administrators. The City Secretary is responsible for obtaining all City Administrator signatures on two(2)original contracts. After obtaining signatures,the City Secretary shall forward original contracts/resolutions to the Purchasing Manager for vendor signatures. (2) Vendors/Suppliers. The Purchasing Manager is responsible for obtaining all vendor/supplier signatures,as well as vendor insurance and payment/performance bonds, as necessary. This must be done before any work may commence. The vendor shall retain one(1)original signed contract and the Purchasing Manager shall return one(1)original signed contract to the City Secretary. Copies of the signed contract,Notice of Award, Notice to Proceed, Blanket Purchase Order, Certificate of Insurance and Bonds (if necessary) shall be supplied to the City Attorney and the Using Department. Original bonds and insurance documents shall be maintained by the Purchasing Manager. City of Port Arthur Purchasing Manual Page 28 January 2019May 2025 (3) Notice of Award. The Purchasing Manager shall issue a Notice of Award, in writing, notifying the successful bidder of the City Council's approval of their contract. (4) Notice to Proceed. The Purchasing Manager shall issue all Notices to Proceed,in writing, only after a signed contract,Certificate of Insurance and Payment/Performance Bonds(if necessary)have been received. Using Departments must not issue Notices to Proceed in any form. §6-202 Monitoring. (1) Using Departments. The Using Department is responsible for monitoring the vendor and the goods and services being provided to the City. It is imperative that Using Department Heads and Superintendents familiarize themselves with their contracts in order to help facilitate vendor compliance. The scope of work,services and the terms and conditions of the contract must be met prior to making payment. (2) Vendor Performance/Complaints. Vendor performance will always be a consideration when deciding on contract award or renewal. The Purchasing Office,with the assistance of all Using Departments, will maintain a historical file of vendor performance. This information shall be used by the Purchasing Office in determining a vendor's suitability for award of future orders and contracts by the City. Using Departments should document a vendor's negative performance in meeting the terms and conditions of the contract using the Vendor Complaint Form (Exhibit E) and forward to the Purchasing Office. The Purchasing Office shall make contact with the vendor in an attempt to correct the problem within a reasonable amount of time. Should the problem not be corrected and/or negative vendor performance continues the Using Department shall terminate the contract based on the terms set forth in the solicitation. Vendors whose contracts have been terminated for poor performance shall not be allowed to bid for at least one(1)year. (3) Vendor References. The Purchasing Office may provide upon request by other governmental agencies, information as to the City's experience with a particular vendor and may request similar information from other governmental and non-governmental entities to determine a potential supplier's reliability and/or capability to perform in accordance with the City's requirements. §6-203 Renewals. (1) Vendor Agreement. The Purchasing Division shall be responsible for obtaining,in writing, a vendor's agreement to renew a contract at the original contract price. Once received,the Purchasing Division shall forward this information to the Using Department. Vendor Decline. Should a vendor choose to decline an option to renew its contract with the City, the Purchasing Division shall obtain new pricing on behalf of the Using Department using the applicable method as listed in§3-101. (2) Using Department. The Using Department shall be responsible for preparing the necessary paperwork to submit a contract renewal to City Council for approval. The renewal process should be completed prior to a contract's expiration to allow for uninterrupted operations. Part D—Contract Modifications and Terminations §6-301 Change Orders. (1) Definition. As stated in Texas Local Government Code§252.048,if changes in plans or specifications are necessary after the performance of the contract is begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, City of Port Arthur Purchasing Manual Page 29 January 2019May 2025 equipment, or supplies to be furnished, the City Council may approve change orders making the changes. (2) Requirements. The original contract price may not be increased by more than twenty-five percent(25%). The original contract price may not be decreased by more than twenty-five percent(25%)without the consent of the contractor. All change orders must be approved by the City Council. (3) Appropriations. The total contract price may not be increased because of the changes unless additional money for increased costs is appropriated for that purpose from available funds. §6-302Terminations. (1) for Cause. If,through any cause,a Contractor shall fail to fulfill in a timely and proper manner his obligations under a contract, or if a Contractor shall violate any of the covenants,agreements or stipulations of a contract,the City shall thereupon have the right to terminate the contract by giving written notice to the Contractor of such termination and specifying the effective date thereof,at least fifteen(15)days before the effective date of such termination. Notwithstanding, the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the contract by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined. (2) for Convenience. The City may terminate a contract at any time giving at least thirty(30) days notice in writing to the Contractor. If a contract is terminated by the City as provided herein,the Contractor will be paid for the service that it has performed up to the termination date. Part E—Maintenance and Lease Agreements §6-401 Maintenance Agreements. (1) Definition. The City maintains service agreements with manufacturers and authorized service centers for various machines and equipment. Criteria used to determine this need are: (a) The item cannot be repaired by City maintenance personnel without extensive training; (b)The item has many moving mechanical parts or is of such a nature that regular adjustment of an exacting nature is required; (c) The equipment is old,costly to replace,but in adequate shape for continued use. Cost benefit must be favorable; (d)The item is costly and the guarantee has expired. Computer related equipment is maintained through the Information Technology Division (IT). No computer maintenance agreements will be contracted for,until first approved by IT. (2) Responsibility. It is the using department's responsibility to budget funds for and obtain necessary maintenance agreements and present them to City Council for approval, depending on the price and terms of the agreement. It is also the responsibility of the using department to assure that equipment is serviced per terms of the agreement. The using City of Port Arthur Purchasing Manual Page 30 January 2019Mav 2025 department must inform Purchasing of any disposition of equipment that makes it necessary to cancel an existing maintenance agreement. §6-402 Lease Agreements. All lease purchases or capital leases shall be coordinated with the Finance Department. This type of purchase and financing is unique and is accounted for through debt service funds, not the customary departmental expenditure accounts. City of Port Arthur Purchasing Manual Page 31 January 2019May 2025 CHAPTER 7^-SURPLUS MATERIALS AND EQUIPMENT Part A--Disposal (1) Definition. The Purchasing Manager is responsible for the final disposition of City-owned surplus property through a public on-line auction. Surplus property shall consist of the following: • City-owned property,real or personal,which has been retired from service and no future need of same property is anticipated. • All abandoned,stolen or recovered property of every kind unclaimed with the Police Department for a period of sixty(60)days and bicycles unclaimed for a period of thirty(30)days. • Property seized by the Police Department and no longer of use to the department. (2) Restrictions. Under this provision, an employee may not purchase property of any type through City auction. The prohibition would also include an employee's spouse since property acquired during marriage is"community property"for which the employee would have an ownership. (3) Public Notice. The notice of an auction shall appear in the City newspaper for two consecutive weeks,with the first notice appearing fourteen(14)days prior to the auction being held. The notice shall also be placed on the City's website,www.portarthur.net. (4) Proceeds. The Purchasing Manager shall deposit the proceeds from the sale of salvage or surplus property into the City's general fund. §7-101 City-Owned Materials and Equipment. (1) Procedure. The Purchasing Manager will notify each department of the dates that the Adam's Building will be available to accept surplus items. Using departments will complete the Surplus Property Disposition Form(Exhibit F)and submit to the Purchasing office via e-mail( _ i portarthur.net)or interoffice mail, those items(including vehicles and heavy equipment)that they wish to dispose of. Once received,the Purchasing office will contact the using department to schedule the drop-off of surplus items. Each department is responsible for physically moving the surplus items to the Adam's Building and placing them in the appropriate gate. Vehicles and Heavy Equipment. Using departments that have vehicles and/or heavy equipment that they wish to dispose of must contact the City's garage and arrange for the equipment to be placed at the garage. (2) Responsibilities. Purchasing. The Purchasing Manager shall be responsible for: • Maintaining an inventory log of surplus items and equipment. • Advising all departments of the availability of the surplus items. • Releasing the item(s)to any using department based on first come-first serve. • Preparing an agenda item for City Council approval for the sale of the items and equipment,when appropriate. • Photographing all items and equipment and submitting to the auctioneer. • Notifying the public of the date and time of the auction. City of Port Arthur Purchasing Manual Page 32 Januar) 2019May 2025 • Scheduling the auction, coordinating with the auctioneer and overseeing the sale. • Releasing the property to the successful bidder. No auction items shall be released to any buyer without a paid sales receipt from the Auctioneer. • Issuing an Application for Transfer of Title and the original title to the buyer of vehicles and equipment. • Filing a Notification of Transfer with the State. • Collecting the revenue from the auctioneer and depositing it with the Cashiers. • Ordering any of the property to be destroyed or otherwise disposed of as worthless if the City undertakes to sell that property and is unable to do so because no bids were received. • Establish contract to sell scrap metal. Equipment Services. The Garage shall be responsible for: • Removing any decals from the vehicle(s). • Removing all license tags from the vehicle(s). • Removing all additional equipment(GPS,siren,etc.)from the vehicle(s) • Preparing the appropriate forms for the auctioneer and submitting them to Purchasing. • Providing adequate personnel to assist in the management, placement and physical removal of auction vehicles and equipment prior to,during and after the auction. Auctioneer. The Auctioneer shall be responsible for: • Providing an on-line internet auctioneering service according to the terms and conditions of the City's most current contract. • Setting minimum prices on items sold at auction. However,should it be in the best interest of the City to set a minimum price,the item should be appraised by an expert to determine a fair market value. • Collecting all monies from the successful bidder(s)per the contract agreement. • Providing receipts to the Purchasing Manager when buyers have rendered payment. • Negotiating the sale of any item(s) sold and not claimed to the next highest bidder. • Submitting payment of the total gross sales less sales tax and auctioneer commission to the Purchasing Manager, along with the sales recap outlining (for each item sold)the buyer's name and address and amount of sale. Buyer. The successful bidder shall be responsible for: • Rendering payment to the Auctioneer within forty-eight (48) hours of the auction close. • Removing the property from the City's facility within ten(10)working days. The ownership of the property shall revert back to the City if the successful bidder does not comply with the removal time limitation. City of Port Arthur Purchasing Manual Page 33 January 2019May 2025 §7-102 Seized,Abandoned,Unclaimed Property. (1) Definition. All unclaimed or abandoned personal property of every kind, other than contraband subject to forfeiture under Chapter 59 of the Code of Criminal Procedure and whiskey, wine and beer, seized by any peace officer of the City which is not held as evidence to be used in any pending case and has not been ordered destroyed or returned to the person entitled to possession of the same by a magistrate,which shall remain unclaimed for a period of(30)days shall be delivered to the Purchasing Manager for disposition. (2) Procedure. The disposition of seized,abandoned and unclaimed property shall be made in accordance with Article 18.17 of the Code of Criminal Procedure as it may be amended from time to time. §7-103 Gambling Paraphernalia,Prohibited Weapon,Criminal Instrument and Other Contraband. (1) Procedure. The disposition of gambling paraphernalia, prohibited weapons, criminal instruments and other contraband shall be made in accordance with Article 18.18 of the Code of Criminal Procedure as it may be amended from time to time. §7-104 Explosive Weapons and Chemical Dispensing Devices. (1) Procedure. The disposition of explosive weapons and chemical dispensing devices shall be made in accordance with Article 18.181 of the Code of Criminal Procedure as it may be amended from time to time. §7-105Seized Weapons. (1) Procedure. The disposition of seized weapons shall be made in accordance with Article 18.19 of the Code of Criminal Procedure as it may be amended from time to time. Part B—Transfers/Donations §7-201 Between Departments. (1) Procedure. The Purchasing Manager shall make available the list of surplus property, including vehicles and equipment, to any using department. The property shall remain available for direct transfer to other using departments until the Adam's Building closes to prepare for auction. The Purchasing Manager will coordinate the transfer directly to another using department on a first come-first serve basis. §7-202 To or From an Outside Source. (1) To an Outside Source. The City may dispose of property by donating it to a civic or charitable organization or another governmental entity,or accept an offer of in-kind service equal to the FMV,if allowed by law. City Council approval will be required for items with a value of more than$500 prior to disposition. (2) From an Outside Source. Any donation or gift offered to the City must be approved in writing by the City Council prior to acceptance. The determination to accept or reject the donation will be based upon the best interest of the City, considering such things as projected operating,maintenance and insurance costs. CHAPTER 8^-CREDIT CARDS §8-101 Procurement Cards(pCards). City of Port Arthur Purchasing Manual Page 34 January 20l9May 2025 (1) Definition. It is the policy of the City to maintain a procurement card program for the purchase of small dollar goods and services, and travel related expenses. pCards are available to individual employees upon written request by their department director. No employee shall receive a pCard until they have received training from the Purchasing Manager or his designee. Dollar limits are established by the Purchasing Manager with input from the Director of Finance and department heads. Employees on probation and temporary employees are not eligible to receive a pCard. (2) Procedure. The issuance,use and termination of pCards shall be made in accordance with the City of Port Arthur Procurement Card Program Policies and Procedures Manual as it may be amended from time to time. §8-102 Fuelman Cards. (1) Definition. A gas card assigned to each vehicle and piece of equipment in the City's fleet. (2) Procedure. The issuance,use and termination of fuel cards shall be made in accordance with the City of Port Arthur Fuel Card Program Policies and Procedures Manual as it may be amended from time to time. §8-103 Shell and Chevron Gas Cards. (1) Definition. A gas card issued to City employees to be used only for out-of-town, City- related travel while using the employee's personal vehicle or a rental. (2) Procedure. Employees must contact the Accounting Division to acquire a card for City- related travel. The gas card and all related receipts must be submitted to Accounting within one(1)week of returning to work. City of Port Arthur Purchasing Manual Page 35 Januar 2019Mav 2025 CHAPTER 9^-FEDERAL ASSISTANCE REQUIREMENTS §9-101 Compliance with Federal Requirements. (1) Procedure. All procurements that involve the expenditure of federal funds shall comply with such federal law and authorized regulations which are mandatorily applicable and which are not presently reflected in this manual. §9-102 System for Award Management (EPLSSAM). (1) Definition. An electronic,web-based system that identifies those parties excluded from receiving Federal contracts,certain subcontracts,and certain types of Federal financial and non-financial assistance and benefits. (2) Procedure. Purchasing Division will verify the selected vendor is NOT on the LPLSSAM debarred list up to seven (7)days before the contract date,but no later than the contract start date. The verification process involves searching for the vendor on the EPLSSAM website �1ttp: \"v.ep1sSAM. eplsisear-eh,Ele.Click on the Search Tab.Any names found will - {Flew Code Changed appear in alphabetical order. If'a math a alid the• g department should t��_office. (3) Documentation. Using departments must provide documentation from the LPLSSAM website as to the status of a potential vendor. §9-103 Compliance with FTA Requirements. (1) The City will include the federal clauses required by FTA Circular 4220.1 F.Including Buy America. (2) The Purchasing Division will contact Disadvantage Business Enterprises(DBE)for federal procurements, (3) The City will provide independent cost estimates(ICE)for federal procurements. The City will competitively purchase items, and avoid using Cooperative Purchasing Programs contracts that are not approved by FTA. §9-104 Minority Contractors. (1) The City will wit-l-make a good faith effort to contract minority contractors using the following criteria. a. Solicitation Lists.Must place small and minority businesses and women's business enterprises on solicitation lists.2 C.F.R.§200.321(b)(l). b. Solicitations.Must assure that it solicits small and minority businesses and women's business enterprises whenever they are potential sources.2 C.F.R. § 200.321(b)(2). c. Dividing Requirements.Must divide total requirements,when economically feasible,into smaller tasks or quantities to permit maximum participation by small and minority businesses and women's business enterprises.2 C.F.R.§ 200.321(b)(3). City of Port Arthur Purchasing Manual Page 36 January 2019May 2025 wr- d. Delivery Schedules.Must establish delivery schedules,where the requirement permits,which encourage participation by small and minority businesses and women's business enterprises.2 C.F.R.§200.321(b)(4). e. Obtaining Assistance.Must use the services and assistance,as appropriate,of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce.2 C.F.R. § 200.321(b)(5). f. Prime Contractor Requirements.Must require the prime contractor,if subcontracts are anticipated or let,to take the five affirmative steps described in steps 1-5 above.2 C.F.R.§200.321(b)(6). 9-105 Duplicative or Unnecessary Items 1) The City will give consideration to consolidate or break out procurements to obtain more economical purchase. 2) The City will purchase only items that are intended for the grant and not use grants funds to pay for additional items. 3) The City Department managing the project will work with Accounting by reviewing previous payments for items for the project at least two months prior to ensure no duplication in payment. City of Port Arthur Purchasing Manual Page 37 January 2019May 2025 CHAPTER 10^-PROFESSIONAL SERVICES §10-101Professional Services. (1) Definition. Generally,those services performed by an individual or group of individuals where education, degrees, certification and/or license is required for qualification to perform the service. The service is usually based on intellectual qualifications as opposed to craftsmanship. Certain professions are specifically named in the Professional Services Procurement Act,Government Code Sec.2254.002(2)(a). (2) Method of Selection. The City may not select a provider of professional services or a group or association of providers or award a contract for the services on the basis of competitive bids submitted for the contract or for the services,but shall make the selection and award: (1)on the basis of demonstrated competence and qualifications to perform the services; and(2)for a fair and reasonable price. The professional fees under the contract may not exceed any maximum provided by law. Government Code Sec.2254.003. §10-102Competitive Sealed Qualifications. (1) Conditions for Use. A contract may be entered into by competitive sealed qualifications for such professional services as architecture,land surveying,or professional engineering. (2) Request for Qualifications. Qualifications shall be solicited through a Request for Qualifications (RFQ). The relative importance of competence, qualifications and other evaluation factors must be specified. (3) Public Notice. Adequate public notice of the RFQ shall be given in the same manner as provided in§3-102(3). (Competitive Sealed Bidding,Public Notice) (4) Receipt of Qualifications. Qualifications shall be opened so as to avoid disclosure of contents to competing offerors. Only the name and location of the responding vendors will be announced. A Register of Qualifications shall be prepared and shall be open for public inspection. (5) Evaluation Factors. The RFQ shall state the relative importance demonstrated compliance with requirements, offeror qualifications, financial capacity, project schedule and other factors, if any. Qualifications shall be evaluated by committee to be formed by the Purchasing Manager. The evaluation committee shall screen and rate all of the responses that are submitted. (6) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the RFQ, discussions may be conducted with up to five(5)responsible offerors who submit qualifications determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion. In conducting discussions,there shall be no disclosure of any information derived from qualifications submitted by competing offerors. (7) Negotiations. Once the evaluation committee has selected the most highly qualified provider,the City Manager,or his designee,must attempt to negotiate with that provider a contract at a fair and reasonable price. If a satisfactory contract cannot be negotiated with the most highly qualified provider,the City Manager,or his designee, shall formally end negotiations with that provider, select the next most highly qualified provider and attempt to negotiate a contract with that City of Port Arthur Purchasing Manual Page 38 January 2019May 2025 provider at a fair and reasonable price. This process shall continue until a contract is entered into. (8) Award. Award shall be made to the responsible offeror whose qualifications conform to the solicitation and is determined in writing to be the most advantageous to the City taking into consideration the evaluation factors set forth in the RFQ. No other factors or criteria shall be used in the evaluation. Written notice of the award of a contract to the successful offeror shall be given to all offerors. (9) Debriefings. The Purchasing Manager is authorized to provide debriefings that furnish the basis for the source selection decision and contract award only after an award has been made by City Council. §10-103lnfrastructure Facilities and Services. (1) Definition. An infrastructure facility is a building; structure; or networks of buildings, structures, pipes, controls, and equipment that provide transportation, utilities, public education, or public safety services. Included are government office buildings; (waste)water treatment plants,and public roads and streets. (2) Project Delivery Methods. The following project delivery methods are authorized for procurements relating to infrastructure facilities and services in the City of Port Arthur: (a)Design-bid-build. A project delivery method in which the City Council sequentially awards separate contracts,the first for architectural and engineering services to design the project and the second for construction of the project according to the design. Design. The qualifications based selection process set forth in§10-102 shall be used to procure architectural and engineering services. Construction. Competitive sealed bidding,as set forth in§3-202 shall be used to procure construction in design-bid-build procurements,except where regulations authorize the use of competitive sealed proposals, as set forth in §3-203 for contracts for construction management at-risk. (b)Design-build. A project delivery method in which the City enters into a single contract for design and construction of an infrastructure facility. Contracts for design-build shall be procured by competitive sealed qualifications as set forth in§10-102. (3) Authorization. The Purchasing Manager,or his designee,has the discretion to select an appropriate project delivery method for a particular project. (4) Procedure. Project delivery methods shall be made in accordance with Chapter 271 of the Texas Local Government Code. City of Port Arthur Purchasing Manual Page 39 January 2019May 2025