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.)