Sec. 18.1-9. Negotiations when all bids exceed available funds.
(a) Unless cancelled or rejected, a responsive bid from the lowest responsible bidder shall be accepted as submitted, except that, if such bid exceeds available funds, and if the city deems it appropriate to do so rather than cancel the solicitation, the city may negotiate with the lowest responsive, responsible bidder to obtain a contract price within available funds using the procedures set out in this section.
(1) If the using agency wishes to conduct negotiations pursuant to this section, it shall provide the procurement administrator with a written determination that the bid from lowest responsive, responsible bidder exceeds available funds. This determination shall be confirmed in writing by the director of finance or his designee. The using agency shall also provide the procurement administrator with suggested measures to bring the proposed purchase within budget through negotiations with the lowest responsive, responsible bidder, including reductions in scope, changes in quality, value engineering, changes in terms and conditions, or changes in schedule.
(2) The procurement administrator shall advise the lowest responsive, responsible bidder, in writing, that the proposed purchase exceeds available funds. He shall further invite proposed measures, such as a reduction in scope, change in quality, value engineering, changes in terms or conditions, or changes in schedule for the proposed purchase, and invite the lowest responsive, responsible bidder to amend its bid based upon the proposed measures to bring the purchase within available funds.
(3) Informal discussions between the city and the lowest responsive, responsible bidder, either in person, by e-mail, by telephone, or by other means, may be used to attempt to obtain a contract within available funds.
(4) Following any successful negotiations, the lowest responsive, responsible bidder shall submit a proposed addendum to its bid, which addendum shall include the specific changes in the proposed purchase, the reduction in price, and the new contract value. The addendum shall be reviewed by the purchasing agency, the city manager, and city attorney for acceptability.
(5) If an addendum is acceptable to the city, the city may award a contract within funds available to the lowest responsive, responsible bidder based upon the amended bid proposal.
(6) If the city and the lowest responsive, responsible bidder cannot negotiate a contract within available funds, all bids shall be rejected.
(b) These procedures shall be deemed to be incorporated automatically in all invitations to bid issued by the city. However, the city manager or his designee(s) should ensure this section is set out in all invitations to bid. (Ord. of 12/13/05, Ord. No. O-05-161)
Last updated date: 10/23/2006 4:15:21 PM