Title 2 ADMINISTRATION
Chapter 2.121 CONTRACTING WITH PRIVATE BUSINESSES
2.121.250 Scope of Chapter 2.121 provisions.
2.121.260 Definitions.
2.121.280 Request for work to be performed by independent contractors.
2.121.290 Rejection of bids or proposals--Language to be included.
2.121.300 Bids and proposals--Solicitation, receipt and award.
2.121.310 Source selection and award--Methods.
2.121.320 Competitive sealed bidding.
2.121.330 Competitive negotiation.
2.121.340 Negotiations after competitive sealed bidding where all bids exceed available funds.
2.121.350 Noncompetitive negotiation.
2.121.360 Determination of bidder responsibility--Language to be included.
2.121.380 Award of contracts--Mandatory prerequisites.
2.121.390 Award of contracts--Statement on reduction of county services.
2.121.400 Breach of contract--Liquidated damages clause required when.
2.121.410 Breach of contract--Performance bond provisions.
2.121.420 Award of contracts--Board of supervisors finding required.
2.121.250 Scope of Chapter 2.121 provisions.
A. This Chapter 2.121 implements Charter Section 44.7 as revised on
November 7, 1978, and shall apply to the contracting with private businesses to
perform personal services which are currently performed by county employees, or
which could be performed by county employees through the recruitment of
additional county personnel.
B. This Chapter 2.121 shall not apply to the
contracting with private business to perform personal services
when:
1. Authority to contract is expressly provided by statute;
2. The
service cannot be performed adequately or competently or satisfactorily by civil
service employees and it is impossible to recruit such personnel to perform such
service for the period of time such service is needed by the county;
3. The
service is of an extraordinary professional or technical nature and the services
are of a temporary nature;
4. The services are needed on a part-time or
intermittent basis; or
5. The contract is for personal services to provide
an independent analysis/evaluation, review and/or audit of an existing or
proposed county project, function or program, and there is a need or contractual
obligation to obtain an independent analysis, evaluation, review and/or audit of
said project, function or program.
C. This chapter shall not apply to the
purchase, lease or acquisition of materials, supplies, furnishings, equipment,
and other personal property. (Ord. 90-0030 § 3 (part), 1990.)
2.121.260 Definitions.
As used in this chapter:
A. “Established catalogue
price” means the price or rate included in the most current catalogue,
price list, rate schedule or other form that:
1. Is regularly maintained by
the offer or; and
2. Is either published or otherwise available for
inspection by customers; and
3. States prices or rates at which services are
currently, or were last, provided to a significant number of users constituting
the general consuming public for that item of service.
B. “Evaluated
bid price” means the dollar amount of a bid, after bid price adjustments
are made pursuant to objective, measurable criteria set forth in the invitation
for bids, which affect the economy and effectiveness of the
service.
C. “Invitation for bids” means all documents, whether
attached or incorporated by reference, utilized for soliciting bids in
accordance with the procedures set forth in Section 2.121.320, Competitive
sealed bidding.
D. “Request for proposals” means all documents,
whether attached or incorporated by reference, utilized for soliciting proposals
in accordance with the procedures, set forth in Section 2.121.330, Competitive
negotiation, Section 2.121.340, Negotiations after competitive sealed bidding
where all bids exceed available funding, or Section 2.121.350, Noncompetitive
negotiation.
E. “Responsible bidder or offeror” means a person,
firm or corporation who has the capability in all respects to perform fully the
contract requirements, and the integrity and reliability which will assure good
faith performance.
F. “Responsive bidder” means a person, firm
or corporation who has submitted a bid under Section 2.121.320, Competitive
sealed bidding, which conforms in all material respects to the invitation for
bids, so that all bidders may stand on equal footing with respect to the method
and timeliness of submission and as to the substance of any resulting contract.
(Ord. 90-0030 § 3 (part), 1990).
2.121.280 Request for work to be performed by independent contractors.
A. The department recommending the award of a contract for services within
the scope of this chapter shall be responsible for the preparation of the
invitation for bids or request for proposals. The purchasing agent, county
counsel and chief administrative officer shall advise the department, as
appropriate, to assure proper format and compliance with this chapter and other
legal, budget and policy requirements.
B. If any department determines to
contract for services provided by another department, with the exception of
services provided by the auditor-controller and county counsel, and believes
that work can be performed more economically or more feasibly, by independent
contractors, that budgeted funds are available, and that the work will not have
an adverse effect on county tort liability, it may, with the consent of the
chief administrative officer, solicit or request the purchasing agent to solicit
bids or proposals for the work to be performed by independent contractors. The
requesting department or purchasing agent shall also solicit a bid or proposal
from the department providing the services. If the cost to perform the work is
less than $25,000.00, and if at least three bids or proposals are obtained from
independent contractors, the contract may be awarded by the department head. The
obtaining of three bids or proposals from independent contractors, one or more
of which is lower than the bid or proposal submitted by the department providing
the services, shall constitute a finding by the board of supervisors that the
work can be performed more economically by independent contractors. (Ord.
2006-0082U § 1, 2006: Ord. 93-0013 § 1, 1993: Ord. 90-0030 § 3
(part), 1990.)
2.121.290 Rejection of bids or proposals--Language to be included.
All bids or proposals may be rejected when such rejection is in the
best interest of the county. All invitations for bids and requests for proposals
shall contain a provision reading substantially as follows:
“The
County may, at its sole discretion, reject all bids/proposals submitted in
response to this Invitation for Bids/Request for Proposals. In the event of any
such rejection, the County shall not be liable for any costs incurred in
connection with the preparation and submittal of a bid/proposal.” (Ord.
90-0030 § 3 (part), 1990.)
2.121.300 Bids and proposals--Solicitation, receipt and award.
A. The purchasing agent or the department recommending the award of a
contract within the scope of this chapter shall solicit and receive bids and
proposals. All interested bidders shall have the same information and
specifications. Responsive bids and proposals received by the purchasing agent
shall be referred to the department recommending the award of a contract. The
department recommending the award of a contract shall receive and evaluate the
bids and proposals and make award recommendations to the board of supervisors.
Except as otherwise provided in subsection B of Section 2.121.280, all contracts
shall be awarded by the board of supervisors in accordance with the requirements
in this chapter, and shall be signed by the chairman of the board of
supervisors.
B. Any renewal or modification to any contract let under this
chapter shall be approved by the board of supervisors and executed by the
chairman unless the contract contains a provision expressly delegating to a
county officer or employee the authority to renew or modify the contract and the
scope of the authority so delegated is specifically set forth in the contract.
In recommending the award of a contract containing such a delegation, the
department recommending the award shall state in writing that the scope of
delegation has been reviewed with and approved by the county counsel. (Ord.
90-0030 § 3 (part), 1990.)
2.121.310 Source selection and award--Methods.
All contracts for services within the scope of this chapter shall
be awarded by:
A. Competitive sealed bidding, pursuant to Section
2.121.320;
B. Competitive negotiation, pursuant to Section 2.121.330 and
Section 2.121.340; or
C. Noncompetitive negotiation, pursuant to Section
2.121.350. (Ord. 90-0030 § 3 (part), 1990.)
2.121.320 Competitive sealed bidding.
A. Conditions for Use. Contracts shall be awarded by competitive sealed
bidding unless it is determined in writing by the department recommending the
award of a contract that this method is not practicable. Factors to be
considered in determining whether competitive sealed bidding is not practicable
shall include whether:
1. Specifications can be prepared that permit award
on the basis of either the lowest bid price or the lowest evaluated bid price;
and
2. The available sources, the time and place of performance, and other
relevant circumstances are appropriate for the use of competitive sealed
bidding.
B. Evaluation Factors. The invitation for bids shall state whether
award shall be made on the basis of the lowest bid price or the lowest evaluated
bid price. If the latter basis is used, the objective measurable criteria to be
utilized shall be set forth in the invitation for bids.
C. Public Notice.
Public notice of the invitation for bids shall be given a sufficient time prior
to the date set forth therein for the opening of bids by the posting of a copy
of the invitation for bid in the office of the purchasing agent. Where the award
of a contract can reasonably be expected to exceed $25,000.00, such notice shall
include publication in a newspaper of general circulation within the county of
Los Angeles a reasonable time prior to bid opening.
D. Bid Opening. Bids
shall remain sealed until opened publicly at the time and place designated in
the invitation for bids. No bids shall be accepted after the time designated for
the opening of bids. Each bid, together with the name of the bidder, shall be
retained and be open to public inspection.
E. Award. Except in those
instances where all bids are rejected pursuant to Section 2.121.290, the
contract shall be awarded with reasonable promptness to the responsive and
responsible bidder whose bid is either the lowest bid price or lowest evaluated
bid price. (Ord. 90-0030 § 3 (part), 1990.)
2.121.330 Competitive negotiation.
A. When Used. When the department recommending the award of a contract
determines in writing that the use of competitive sealed bidding is not
practicable, and except as provided in Section 2.121.350, a contract may be
awarded by competitive negotiation.
B. Use After Unsuccessful Competitive
Sealed Bidding. Contracts may be competitively negotiated when it is determined
in writing by the department recommending the award of a contract that the bid
prices received by competitive sealed bidding either are unreasonable as to all
or part of the requirements, or were not independently reached in open
competition, and for which:
1. Each responsible bidder has been notified of
the intention to negotiate and is given reasonable opportunity to
negotiate;
2. The negotiated price is lower than the lowest rejected bid by
any responsible bidder; and
3. The negotiated price is the lowest negotiated
price offered by any responsible offeror.
C. Public Notice. Adequate public
notice of the request for proposals shall be given in the same manner as
provided in subsection C of Section 2.121.320.
D. Evaluation Factors. The
request for proposals shall indicate the relative importance of price and other
evaluation factors.
E. Award. Except in those instances where all bids are
rejected pursuant to Section 2.121.290, award shall be made to the responsible
offeror whose proposal is determined in writing to be the most advantageous to
the county, taking into consideration price and the evaluation factors set forth
in the request for proposals.
F. Discussion with All Responsible Offerors.
Written or oral discussions may be conducted with responsible offerors who
submit proposals determined in writing to be reasonably susceptible of being
selected for award. Discussions shall not disclose any information derived from
proposals submitted by competing offerors. (Ord. 90-0030 § 3 (part),
1990.)
2.121.340 Negotiations after competitive sealed bidding where all bids exceed available funds.
A. Determination. In the event that all bids submitted pursuant to
competitive sealed bidding under Section 2.121.320 result in bid prices in
excess of the funds available and the department recommending the award of the
contract determines in writing:
1. That there are no additional funds
available from any source so as to permit an award to the lowest responsive and
responsible bidder; and
2. The best interest of the county will not permit
the delay attendant to a resolicitation under revised specifications, and/or for
reduced level of services, under competitive sealed bidding as provided in
Section 2.121.320; then a negotiated award may be made as set forth in
subsections B and C of this section.
B. Negotiation with Multiple Bidders.
Where there is more than one bidder, competitive negotiations pursuant to
Section 2.121.330 shall be conducted with the three (two if there are only two)
bidders determined in writing to be the lowest responsive and responsible
bidders to the competitive sealed bid invitation. Such competitive negotiations
shall be conducted under the following restrictions:
1. If discussions
pertaining to the revision of the specifications or quantities are held with any
potential offeror, all other potential offerors shall be afforded an opportunity
to take part in such discussions;
2. An addendum to the invitation for bids,
based upon revised specifications or quantities, shall be issued as promptly as
possible, shall provide for an expeditious response to the revised requirements,
and shall be awarded upon the basis of the lowest bid price or lowest evaluated
bid price submitted by any responsive and responsible offeror. No discussion
shall be conducted with offerors after submission of proposals except for a
compelling reason as determined in writing by the department recommending the
award of a contract. All addenda shall state that award is to be made without
discussions except as herein provided.
C. Negotiation with Single Bidder.
Where, after competitive sealed bidding, it is determined in writing by the
department recommending the award of a contract that there is only one
responsive and responsible bidder, a noncompetitive negotiated award may be made
with such bidder in accordance with Section 2.121.350. (Ord. 90-0030 § 3
(part), 1990.)
2.121.350 Noncompetitive negotiation.
A contract may be made by noncompetitive negotiation only when
competition is not feasible, as determined in writing prior to award by the
department recommending the award of a contract. (Ord. 90-0030 § 3 (part),
1990.)
2.121.360 Determination of bidder responsibility--Language to be included.
A determination of responsibility of a bidder or offeror shall be
made. All invitations for bids and requests for proposals shall contain a
provision reading substantially as follows:
“A reasonable inquiry to
determine the responsibility of a bidder or offeror may be conducted. The
unreasonable failure of a bidder or offeror to promptly supply information in
connection with such inquiry, including but not limited to information regarding
past performance, financial stability, and ability to perform on schedule, may
be grounds for a determination of nonresponsibility with respect to such a
bidder or offeror.” (Ord. 90-0030 § 3 (part), 1990.)
2.121.380 Award of contracts--Mandatory prerequisites.
A. No contract may be awarded pursuant to this chapter unless all of the
following requirements are met:
1. The services provided under the contract
will be performed more economically or more feasibly by an independent
contractor;
2. The county’s ability to respond to emergencies will not
be impaired;
3. The award of the contract will not result in the
unauthorized disclosure of confidential information;
4. Alternative
resources are available so that the services can be obtained from another source
in the event of default by the contractor;
5. The award of the contract will
not infringe upon the proper role of the county in its relationship to its
citizens; and
6. The award of the contract, if financed in whole or in part
by federal or state funds, will be in full compliance with all applicable
federal and state regulations.
B. In making a recommendation to the board of
supervisors for the award of a contract, the department recommending the award
shall state in writing that the requirements of this section have been met.
(Ord. 2006-0082U § 2, 2006: Ord. 93-0013 § 2, 1993; Ord. 90-0030
§ 3 (part), 1990.)
2.121.390 Award of contracts--Statement on reduction of county services.
In making a recommendation for the award of a contract, the
department recommending the award shall state in writing whether the contract
will result in a reduction of county services, and if so, the extent of the
reduction. (Ord. 90-0030 § 3 (part), 1990.)
2.121.400 Breach of contract--Liquidated damages clause required when.
In all cases where it would be impracticable or extremely difficult
to fix the actual damage resulting from a breach by the contractor, the
invitation for bids or request for proposals and the contract shall include a
liquidated damages clause. (Ord. 90-0030 § 3 (part), 1990.)
2.121.410 Breach of contract--Performance bond provisions.
Contracts awarded pursuant to this chapter may require the
contractor to post a performance bond adequate in amount to cover the
county’s damages in the event of a breach of contract by the contractor.
(Ord. 90-0030 § 3 (part), 1990.)
2.121.420 Award of contracts--Board of supervisors finding required.
A. No contract shall be awarded pursuant to this chapter until the board
of supervisors has made a finding that the services can more economically or
more feasibly be performed by the independent contractor.
B. The department
recommending the award of a contract shall provide the board of supervisors, in
writing:
1. Those facts which support a finding that the work can be
performed more economically or more feasibly by independent
contractors;
2. A description of the anticipated scope and cost of the work
to be contracted;
3. A statement as to the availability of budgeted
funds;
4. A statement as to the possible impact on county tort liability;
and
5. A statement concerning the projected employee relations
implications.
C. A finding of feasibility under this section 2.121.420 shall
be limited only to contracts for physician services. (Ord. 2006-0082U § 3,
2006: Ord. 93-0013 § 3, 1993: Ord. 90-0030 § 3 (part),
1990.)
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