(a) Solicitation of bids. Where the purchase entails a major expenditure, the Purchasing Director shall provide for the procurement of competitive bids as follows:
(1) Prepare the invitation for bids, describing the City’s requirements clearly, accurately and completely, avoiding unnecessarily restrictive specifications which might unduly limit the number of bidders. The invitation shall include:
a. A notification to all bidders that the City has a preference for environmentally preferred goods and services and will purchase them where they are price competitive, available, and substantiated according to accepted federal and commercial standards; and
b. A notification to all bidders that prices bid will be compared to prices available to the City from applicable cooperative purchases resources.
(2) Publicize the invitation for bids by advertising for bids one or more times both in the newspaper designated to print the official business of the City and in a centralized location on the City’s official website. Where appropriate, the Purchasing Director shall include advertisements in newspapers, trade journals, association postings, websites, and any other appropriate media sources. In addition, the Purchasing Director may send copies of such advertisement to persons and firms likely to be interested therein. Such advertisement shall accurately and clearly describe or refer to the subject matter of the proposed purchase and may also refer the bidder to specifications on file in the Office of Contracting and Procurement. Such advertisement shall specify the time and place of submitting bids and such other information from the specifications as the Purchasing Director shall deem advisable in the interest of the City. After publication of one advertisement, specifications shall not be changed without the publication of a new advertisement calling attention to such change. A reasonable time shall be allowed to enable prospective bidders to prepare and submit bids before the time set for public opening of bids.
(3) Receive written bids submitted by prospective contractors.
(b) Comparison of equalization credits.
(1) Detroit-based business and Detroit resident business. As the first step in comparing bids, the bid of any Detroit-based business or small Detroit-resident business shall be deemed a better bid than the bid of any competing firm which is not a Detroit-based business or Detroit-resident business whenever the bid of such competing firm shall be equal to or higher than the bid of the Detroit-based business or Detroit-resident business, after the appropriate equalization percentage credit from the following equalization allowance table has been applied to the bid of the Detroit-based firm:
Equalization Allowance Table
|
Contract Amount |
Equalization Percentage |
|
Up to $10,000.00 |
5% |
|
$10,000.01 to $100,000.00 |
4% |
|
$100,000.01 to $500,000.00 |
3% |
| $500,000.01 and over |
2% |
If the bidder qualifies as both a Detroit-based business and a Detroit-resident business, the equalization factor in the preceding table shall be doubled. If the bidder has qualified as a Detroit-based business by virtue of being a Detroit-headquartered business, as defined in Section 17-5-1 of this Code, it shall receive the equalization factor in the preceding table plus an additional three percent,
provided, that an affiliate, a subsidiary, a limited-liability corporation, or other business structure shall not receive the additional three percent where the Human Rights Department determine that another related office outside the City has a larger presence than the Detroit office
(2) Joint ventures, mentor ventures, and Detroit-based small and micro businesses. In comparing bids, the bid of any joint venture, mentor venture, Detroit-based small business, or Detroit-based micro business shall be deemed a better bid than the bid of any competing firm, which is not a joint venture, mentor venture, Detroit based small business, or Detroit-based micro business whenever the bid of such competing firm shall be equal to or higher than the bid of the joint venture, mentor venture, Detroit-based small business or Detroit-based micro business, after the appropriate equalization percentage credit from the following equalization allowance table has been applied to the bid of the Detroit-based firm:
|
Detroit-based small business |
1% |
|
Detroit-based microbusiness concern |
2% |
|
Joint venture |
2% |
|
Mentor venture |
1% |
(c) Application of equalization credits.
(1) For purposes of evaluating or scoring bids, a bidder shall be entitled to receive the equalization percentage credit for each category for which it qualifies under Section 17-5-12 through Section 17-5-14. The bidder that makes the lowest bid, as evaluated or scored shall be deemed the lowest equalized bidder. If the lowest equalized bid is evaluated or scored below the lowest responsible bid submitted, the lowest equalized bidder shall be awarded the contract, provided that, the contract awarded to such bidder shall not exceed, more than 12 percent above the lowest responsible bid submitted or $100.000.00, whichever is less.
(2) In the application of these equalization percentage credits, a joint venture shall not also be considered a mentor venture and a mentor venture shall not also be considered a joint venture. Unless certified before the deadline for submitting a bid, no bidder or firm shall receive an equalization credit as a Detroit-based business, small business or micro business concern. A joint venture or mentor venture shall not receive an equalization credit unless the Detroit-based business in the venture has been certified as such before the deadline for submitting a bid.
(3) If a bidder claims an equalization credit as a Detroit-resident business, it shall submit documentation of its eligibility with its bid. The Office of Contracting and Procurement or the contracting department shall determine whether the bidder qualities as a Detroit-resident business after the bid opening.
(4) After applying any equalization percentage credit that is contained in this section, the Purchasing Director shall apply Section 17-5-14 through 17-5-16 of this Code. Where Section 17-5-14 through 17-5-16 of this Code do not apply, the contract shall be awarded to the lowest responsible bidder.
(d) Limited bidding permitted in certain circumstances. On the Purchasing Director’s own initiative or at the request of the contracting department, the Purchasing Director may limit the bidding for a contract to Detroit- based businesses, Detroit-based small businesses, or Detroit-based micro businesses, provided, that there are at least three firms certified or registered by the Human Rights Department which would be eligible to bid for the contract. The equalization factors in Section 17-5-12 of this Code shall not apply to the solicitation of bids under this subsection. In determining whether to so limit the bidding, the Purchasing Director should make commercially reasonable efforts to maximize the utilization of Detroit-based businesses, Detroit-based small businesses, or Detroit-based micro businesses. As used in this subsection only, “should” means a strong recommendation, but does not mandate the actions described.
(e) Documentation to be made available. Any bidder who claims to be entitled to an equalization percentage credit shall agree to make the records that were necessary to establish eligibility available to the City.
(f) Prohibition against unapproved assignments or subcontracts. A Detroit resident business, a Detroit-based business, or a mentor venture or joint venture with a Detroit-resident business or Detroit-based business may not assign or subcontract its City contracts to a non Detroit-based business or a non-Detroit resident business without the approval of such assignment or subcontract by the Purchasing Director.
(g) Exemptions. The requirements of this section shall not be applicable where any one of the following conditions exists:
(1) Public exigencies require the immediate delivery of the articles or performance of the service;
(2) The Purchasing Director certifies that only one source of supply is available;
(3) The services to be performed are professional in nature; or
(4) The item to be acquired is rare or unique.
Codified by Ord. No. 28-19 (JCC 7/23/2019, Passed 9/10/2019, Approved 9/11/2019, Published 9/20/2019, Effective 10/1/2019); Amended by Ord. No. 2021-46 (JCC 11/3/2021, Passed 11/16/2021, Approved 11/22/2021, Published 11/30/2021, Effective 11/30/2021).