§ 15-45. Competitive sealed bids; bid opening; bid bonds; rejection of bids; return of bid bonds.
(a)
A competitive bidding process or variation (such as best value bid) shall generally be used for the purchase of goods, equipment, and work services.
(b)
The CPO shall ensure that the specifications for such purchases are not restrictive and provide maximum opportunity for fair and open competition. When a brand name or make is used as the standard to illustrate the requirements in a specification, the ITB shall include language indicating that the requirement may be met by a different source and shall include the phrase "or equal" so as to avoid issuing specifications that are restrictive.
(c)
Bids shall be opened and read in public. The opening shall be held at a time, date, and place designated in the ITB at a location approved by the CPO. The time and date, and when appropriate, the place of the meeting designated in the ITB may be rescheduled without the necessity of readvertising for bids if:
(1)
The ITB includes notice that the opening may be rescheduled, provided the rescheduled date or time may not be earlier than the time or date identified in the original solicitation; and
(2)
A letter of clarification is issued.
(d)
Late or unsealed bids shall not be read and shall be returned to the bidder unopened.
(e)
For purposes of this section, bid bond means a valid and enforceable bond that is in substantial compliance with the following requirements:
(1)
The bond must be executed by a corporate surety authorized by the state board of insurance to conduct insurance business in the State of Texas and shall comply with any other requirements set out by law or included in the bid package.
(2)
The bond must be payable to the city.
(3)
The bond must be conditioned such that if the bidder is awarded the contract and then fails to execute the contract timely or to provide any required bonds timely, or to do both, then in that event the surety will be obligated to pay to the city an amount equal to the difference between the bid of the bidder on whom the bond was written and the bid of the bidder who is finally awarded the contract and who executes the contract and provides the required bonds, up to the penal sum of the bond.
(f)
All bid documents prepared by or on behalf of the city for public works projects or for contracts for the maintenance of public property shall require:
(1)
That bidders must submit, along with their bids, a bid bond or a certified or cashier's check in an amount equal to ten percent of their bids.
(2)
That the bidder to whom the contract is awarded must, if the contract amount exceeds the amount set by state law or other amount stated in the project documents, provide a performance bond in an amount equal to 100 percent of the contract amount, as described in section 15-52 of this Code.
(3)
That the bidder to whom the contract is awarded must provide a payment bond if the contract is in excess of the amount set by state law or other amount stated in the project documents.
(4)
That the bidder to whom the contract is awarded must provide such other bonds as are required by law or by the terms of the bid documents.
(g)
Bidders submitting bids for the furnishing of materials only shall have the option of furnishing to the city, with any such bid, a cashier's or certified check in the sum of ten percent of the amount of such bid, in lieu of the bidder's bond required by this section. Such cashier's or certified check shall be furnished on the same terms and conditions as set out in this section.
(h)
Upon receipt of a tabulation of bids and a recommendation as to the award of a contract, the CPO shall return to each vendor who has made a bid deposit the bond, cashier's check or certified check representing such deposit, except that the CPO shall retain any such deposit made by the lowest and second lowest bidders, as shown by such tabulation. Any deposit so retained shall be returned at such time as a contract has been awarded.
(Ord. No. 2015-668, § 4(Exh. B), 7-8-2015)