Legal Documents of Sweetwater

Code of Sweetwater

Table of Contents » Title 5 Municipal Finance and Taxation » Chapter 4 Bidding And Purchasing Procedures » § 5-403 Advertising and bidding.
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Title 5
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Title 5, Chapter 1
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§ 5-101
Sweetwater
Title 5 : Municipal Finance and Taxation
Chapter 4 : Bidding And Purchasing Procedures

5-403 : Advertising and bidding.

  1. Exceptions. Except as hereinafter provided, all purchases and leases or lease-purchase agreements shall be made or entered into only after public advertisement and competitive bid. Except as follows:
    1. Purchases costing less than twenty-five thousand dollars ($25,000.00); provided, that this exemption shall not apply to purchases of like items which individually cost less than twenty-five thousand dollars ($25,000.00), but which are customarily purchased in lots of two (2) or more, if the total purchase price of such items would exceed twenty-five thousand dollars ($25,000.00) during any fiscal year, which shall automatically be increased if and when a greater sum is authorized by state law.
    2. Any goods or services which may not be procured by common means because of the existence of a single source of supply or being a proprietary product. A record of all such sole source or proprietary purchases shall be made by the person or body authorizing such purchases and shall specify the amount paid, the items purchased, and from whom the purchase was made. A report of such sole source or proprietary purchases shall be made as soon as possible to the municipal governing body and the chief executive officer of the municipality and shall include all items of information as required for the record.
    3. Purchases or leases of any supplies, materials or equipment for immediate delivery in actual emergencies arising from unforeseen causes, including delays by contractors, delays in transportation, and unanticipated volume of work. A record of any such emergency purchase shall be made by the person or body authorizing such emergency purchases, and shall specify the amount paid, the items purchased, from whom the purchase was made and the nature of the emergency. A report of any emergency purchase shall be made as soon as possible to the municipal governing body and the chief executive officer of the municipality, and shall include all items of information as required by the record.
    4. Leases or lease purchase agreements requiring total payments of less than twenty-five thousand dollars ($25,000.00) in each fiscal year the agreement is in effect; provided, that this exemption shall not apply to leases of like related items which individually may be leased or lease purchased with total payments of less than twenty-five thousand dollars ($25,000.00) in any fiscal year, but which are customarily leased or lease purchased in numbers of two (2) or more, if the total lease or lease purchase payments for such items under a single agreement would be twenty-five thousand dollars ($25,000.00) or more in any fiscal year, which shall automatically be increased if and when a greater sum is authorized by state law.
    5. Purchases, leases or lease purchases of real property.
    6. Purchases, leases or lease purchases from any federal, state or local governmental unit or agency of secondhand articles or equipment or other materials, supplies, commodities and equipment.
    7. The governing body may exempt perishable commodities from requirements of public advertisement and competitive bidding when such items are purchased in the open market. Fuel and fuel products may be purchased in the open market without public advertisement, but shall whenever possible be based on at least three (3) competitive bids. Fuel and fuel products may be purchased from the department of general service contract where available.
  2. Expenditures of less than twenty-five thousand dollars ($25,000.00). All purchases, leases or lease purchase arrangements with expenditures of less than twenty-five thousand dollars ($25,000.00) but more than ten thousand dollars ($10,000.00) in any fiscal year may be made in the open market without public advertisement, but shall, whenever possible, be based upon at least three (3) competitive bids. Purchases, leases and lease purchases of ten thousand dollars ($10,000.00) or less in any fiscal year shall not require any public advertisement or competitive bidding. The sum of ten thousand dollars ($10,000.00) in this subsection shall automatically increase to forty percent (40%) of the increased sum for which advertisement and competitive bidding is required if and when a greater sum is authorized by state law.
  3. Other exempt purchases, leases and lease-purchase agreements. The foregoing requirements for advertising and competitive bids for city purchases, leases and/or lease-purchase agreements shall not apply to or restrict the city's ability to participate in any program for municipal purchases, leases and/or lease-purchase agreements by, through, from or with the State of Tennessee, the State Department of General Services, any state agency or any other local government entity, individually or cooperatively, whenever such purchase, lease or lease-purchase agreement is authorized by statute.
  4. Competitive bidding.
    1. Contracts shall be awarded for the lowest competent, responsible bid that is responsive to the request for bids. The lowest responsible bidder means not merely the lowest bidder whose pecuniary ability to perform the contract is deemed the best, but the bidder who is most likely, in regard to skill, ability and integrity, to do faithful, conscientious work, and promptly fulfill the contract according to its letter and spirit. Accordingly, the requirement that the city's contract shall be let to the "lowest responsible bidder" does not require the letting to the lowest bidder upon ascertaining his financial responsibility only, but the term "responsible" includes the ability to respond by the discharge of the contractor's obligation in accordance with what may be expected or demanded under the terms of a contract.
    2. Because the lowest price bid is not the only consideration, the board, selection committee or procurement officer may award a bidder who is not the lowest bidder if other factors affect (i) the overall quality or total cost of the finished product or project, (ii) the cost and/or convenience of maintenance; (iii) the ability of the bidder to efficiently and effectively provide a quality product or service and/or other factors relevant to the particular project that affect the overall cost and quality of performance of the services or goods for which the bid is let, over the anticipated life of the completed project. Said factors may be evaluated using, but not necessarily limited to, job and performance references; background and financial reviews; bidder reports and lists such as equipment lists and staff qualifications; and the bidder's location relevant to the project. Examples of the application of such factors, while not exhaustive, include a bidder for a garbage contract who offers a low bid, but has an inadequate number of trucks to reliably and timely perform the contract; a bidder whose references provide negative reports of the bidder's poor performance on similar projects; a bidder on a contract for which the city will be reimbursed upon progress or completion, whose financial condition does not reasonably permit the bidder to wait for the city to receive the funds with which to pay the bidder; a bidder to sell or lease the city vehicles or equipment, which would have to be driven or transported an inordinate distance for service and/or repairs; or a bidder who offers equipment or services that are not compatible with equipment that the city already owns or leases or providers who already have contracts with the city. The foregoing factors, evaluation tools and examples are illustrative only, are not exhaustive and do not define the limits of the authority of the board, selection committee or procurement official.
    3. Further, the board of commissioners, selection committee or procurement official may reject any and all bids received for purchase or sales; thus a contract need not be awarded to the lowest bidder even if the bid offered by a reliable and responsible bidder. (Ord. #744, April 2002, as amended by Ord. #903, Sept. 2013, Ord. #946, Nov. 2016, and Ord. #1034, March 2024 Ch8_08-05-24)
Date Last Updated: 08/05/2024
Codification Date: 03/01/2004

Officials at Date of Last Codification:

Mayor - Doyle F. Lowe
Vice Mayor - Sam Moser
Commissioner - Lamar Hughes
Commissioner - Johanna Jinks
Commissioner - Alan Richeson
Commissioner - James A. Stutts
Recorder - Sonya Crush
City Attorney - John Cleveland
 

Date Last Updated: 08/05/2024
Codification Date: 03/01/2004

Officials at Date of Last Codification:

Mayor - Doyle F. Lowe
Vice Mayor - Sam Moser
Commissioner - Lamar Hughes
Commissioner - Johanna Jinks
Commissioner - Alan Richeson
Commissioner - James A. Stutts
Recorder - Sonya Crush
City Attorney - John Cleveland