HomeMy WebLinkAboutPROCUREMENT SOP #10 - Public Works Unit-Priced On-Call ContractsRevision March 2023 Staff Contact: Finance Administrator Kari Roller
PROCUREMENT SOP #10
Public Works Unit-Priced On-Call Contracts
Indefinite Quantity/Indefinite Frequency
1. Applicability:
RCW 35.23.352(13) establishes the requirements for procuring public works with a unit-priced
contract for the purpose of completing anticipated types of work based on hourly rates or unit pricing
for one or more categories of work or trades. Unit-priced contract means a competitively bid contract
in which public works are anticipated on a recurring basis to meet the business or operations needs
of the city under which the contractor agrees to a fixed period of indefinite quantity of delivery of
work, at a defined unit price for each category of work.
2. Process:
Unit-priced (on-call) public works contracts shall be procured in the same manner as public works
contracts. When establishing an on-call contract, special care should be given to ensure all
procurement and contracting laws are followed. On-call contracts must only be made with contractors
that meet the applicable minimum requirements established by RCW 39.04.350.
Solicitation to Bid:
Invitations for unit-price bids shall be submitted on the MRSC small works roster as a unit-
price/on-call contract and include, for purposes of the bid evaluation, estimated quantities of the
anticipated types of work or trades, and specify how the city will issue or release work
assignments, work orders, or task authorizations pursuant to a unit-priced contract for project,
tasks, or other work based on the hourly rates or unit prices bid by the contractor.
• Unit-priced contracts are not associated with a particular project, do not guarantee any
amount of work, and do not establish a total dollar value.
• Unit-priced, on-call contracts are limited to $100,000 per contract, must have an initial
term not exceeding three years, and may allow the city to extend or renew the term for
one additional year.
• Unit-price contractors shall pay prevailing wages for all work that would otherwise be
subject to the requirements of chapter 39.12 RCW. Prevailing wages for all work
performed pursuant to each work order must be the prevailing wage rates in effect at the
beginning date for each contract year. Unit-priced contracts must have prevailing wage
rates updated annually. Intents and affidavits for prevailing wages paid must be
submitted annually for all work completed within the previous twelve-month period of
the unit-priced contract.
• Retainage requirements are dependent on the size of the task orders. A task order over
$50,000 will require retainage.
• Multiple contracts may be awarded; however, a contract must be awarded to the lowest
responsive and responsible bidder per RCW 39.04.01.
Revision March 2023 Staff Contact: Finance Administrator Kari Roller
• The prices for different tasks may be based upon different units. Commonly used units
include:
o Weight such as tons
o Surface area, such as square feet or acres
o Volume, such as gallons or cubic yards
o Length/depth, such as linear feet or vertical linear feet
o Time, such as hours
o Quantity of items
o Lump sum per task
• When a specific project is identified, individual work task orders are authorized based
upon either a “not to exceed” time and materials basis or a negotiated lump sum amount
using the previously established unit prices.
Considerations for Establishing an On-Call Contract:
• Identify all the potential small tasks that will need, or may need, to be completed
throughout the duration of contract. Do not include tasks that are so large that they
should be procured individually through a stand-alone service or public works project.
• Parts and materials can be bid by the vendor as a cost plus a defined mark-up.
• Vendors can also bid the hourly cost of their works based on prevailing wage plus a
defined mark-up.
• The total bid should be the sum of the unit prices items plus multiplied by the task
quantity. The vendors that bid are not guaranteed any minimum contract amount.
• Consider including a contract clause that reserves the city’s right to ask for a price in
advance for each project that is estimated to exceed $2,500. The city can select one on-
call vendor or several. Within the bid documents, the city can outline the expectations of
how quickly the vendor will respond. Selecting several vendors to be on the list provides
for availability of several firms and each city department can use the list to find a vendor
that suits their needs.
• These contracts should be one year in duration, with a maximum of two separate one-
year extensions.
• The contractor must comply with Washington state prevailing wage requirements.
Contractor must file an intent to pay prevailing wage at the beginning of the project and
at the beginning of each calendar year, and an affidavit of wages paid at the end of each
calendar year and at the end of the project with the Washington State Department of
Labor and Industries. Final payment will be held until affidavit of wages paid is submitted
for each period/calendar year or end of project.
3. Signature and Approval Authority:
Dollar Amount: Signing Authority
Under $50,000 Administrator
$50,000 - $100,000 Mayor