HomeMy WebLinkAboutPROCUREMENT SOP #09 - Public Works Sealed Bid Process (over $350,000) clb 1-12-23Revision March 2023 Staff Contact: Finance Administrator Kari Roller
PROCUREMENT SOP #09
Public Works Sealed Bids
(over $350,000 or project manager preference)
1.Applicability:
Bidding laws (RCW 39.04, .010, .350, and 35.23.352) requires the city to award public works contracts
to responsible bidders with the lowest responsive bid. This applies to informal bidding, such as a small
works roster, as well as formal competitive bids. Staff may not negotiate with bidders. Bids submitted
after the submittal deadlines or at the wrong location should be rejected as non-responsive. Late bids
should not be opened.
2.Process:
The public works sealed bid process shall be used for all public works projects estimated to cost more
than $350,000 or for lesser amounts when chosen by the project manager. Departments are
authorized to prepare and advertise a call for bids (CFB) notice that shall be published in the Daily
Journal of Commerce at least 13 calendar days prior to the bid submission deadline. Project managers
may have to advertise more than once over a longer advertisement period and/or in additional media
outlets, if required by funding sources. The city also encourages project managers to advertise in
various ethnic media outlets to more equitably distribute the opportunity to bid.
Preliminary Legal Review:
For projects that will be awarded to the lowest bidder through a CFB, a copy of the city’s applicable
contract template along with any required legal terms and specifications should be included with
the CFB packets. Changes are generally not allowed to these contract documents after bids are
opened and vendors should be advised not to add terms and conditions to their bid proposals.
Accordingly, advance legal review of the contract documents is required prior to posting the CFB.
This review will not replace the separately required review for approval as to legal form, but will
streamline that review once a contractor is selected and the agreement blanks are filled in.
Federal Highway Administration (FHWA) Funded Projects:
Project managers must follow current and/or project specific guidelines and procedures outlined
in the Washington State Local Agency (LAG) manual for all public works contracts that include
grant funds from the FHWA.
Contracts Fully or Partially Funded by Federal Grants:
On any contract either partially or fully funded with FHWA grant funds, bidders must submit the
non-collusion declaration form (DOT Form 272-036I) with their bid. Failure to do so will result in
their bid being determined as non-responsive. Prior to awarding a FHWA grant funded contract,
the city must verify that the lowest responsive and responsible bidder is not presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily excluded from
Revision March 2023 Staff Contact: Finance Administrator Kari Roller
participating in covered transactions by any federal department or agency (2 CFR 180.335). This
can be determined by:
• Searching the System for Award Management (www.sam.gov) for the name of the bidder
to determine if the bidder is registered and if they are, their current status (allowed to
participate or prohibited), or
• Requesting the bidder to submit a signed and notarized certification that addresses the
requirements listed in FHWA-1273 (Revised July 5, 2022), required contract provisions
federal-aid construction contracts, section X, certification regarding debarment,
suspension, ineligibility and voluntary exclusion.
• In either case, a copy of the verification shall be provided to the city clerk division when
the contract documents are submitted for execution, pursuant to the debarment and
suspension SOP found here.
Projects that consist of any federal funding must follow both the state and federal competitive
requirements, using the more stringent standard of the two. It is strongly recommended that
project managers work closely with their granting agencies to obtain, in writing, a concise
description of all requirements for any particular grant.
NOTE: Contract bonds (combined payment and performance bonds) are required on projects
funded in whole or in part by federal transportation funds, as RCW 60.28.011 prohibits public
agencies from withholding retainage on such projects. The contract bond replaces the
protections otherwise provided through retainage.
Advertisement:
The CFB advertisement should, minimally, include the following information:
• Title of the project.
• Summarized scope and nature of work, and materials and equipment to be furnished.
• If applicable, a statement of mandatory contractor criteria and notice of supplemental
criteria per RCW 39.04.350.
• If applicable, a statement regarding Title VI requirements.
• Location where the contract documents (plans and specifications) may be obtained or
reviewed including the URL of any electronic posting.
• Bid submittal deadline(s) and the bid submittal location.
• Place, date, and time set for opening of the sealed bids.
• If applicable, virtual meeting information for virtual bid openings.
• Name, telephone, and email contact information of project manager.
• Requirements for an accompanying bid bond.
• Statement indicating the city has the right to reject any and/or all bids, and the right to
waive any minor irregularities in the bidding process.
Bid Proposal Deposit:
Required for contracts over $350,000. This ensures that a bid has been made in good faith and
the bidder will enter into a contract if their bid is awarded. RCW 35.23.352(1) provides that each
bid must be accompanied by a bid proposal deposit in an amount equal to 5% percent of the total
bid amount. Only the following forms of deposits are allowed:
• Cashier’s check (made payable to the City of Renton)
• Postal money order (made payable to the City of Renton)
Revision March 2023 Staff Contact: Finance Administrator Kari Roller
• Proposal bid bond (bid Bond)
After bids are opened and the contract is awarded to the lowest responsive and responsible
bidder as required by RCW 35.23.352, the bid bonds or bid proposal deposits are returned to the
unsuccessful bidders. The successful bidder’s bid bond or deposit is retained until the bidder
enters into the contract and furnishes a contract bond (a combined performance and payment
bond) in the full amount of the contract. If the successful bidder fails to enter into the contract in
accordance with their bid and/or furnish a contract bond (a combined performance and payment
bond) within 10 days from the date at which they are notified that they are the successful bidder,
the bid proposal deposit shall be forfeited to the City of Renton, as set forth in RCW 35A.40.200
and RCW 35.23.352.
Lowest Responsive and Responsible Bidder:
After all bids have been submitted, the contract shall be awarded to the lowest responsive and
responsible bidder as defined by RCW 39.04.350(1). The city shall award the contract to the lowest
responsive and responsible bidder; however, it retains the right to reject any and/or all bids that
are considered not the best price obtainable or are unacceptable for other reasons (i.e., including
defects or have significant irregularities). In this case, the city may call for new bids.
Please Note: RCW 39.30.060 specifies that in order for a bid to be considered responsive,
every bidder for a public works contract over $1 million must submit:
• Within one hour after the published bid submittal time, the names of the
subcontractors with whom the bidder, if awarded the contract, will subcontract
for the performance of: HVAC; plumbing as described in chapter 18.106 RCW; and
electrical as described in chapter 19.28 RCW, or to name itself for the work, and
• Within 48 hours after the published bid submittal time, the names of the
subcontractors with whom the bidder, if awarded the contract, will subcontract
for the performance of the work of structural steel installation and rebar
installation.
Determination of Responsible Bidder:
Responsible bidder is defined as follows by RCW 39.04.350 for all public works contracts:
• Being a registered contractor.
• Having a current state unified business identifier (UBI) number.
• Having valid workers’ compensation insurance coverage as evidenced by a valid
certificate of registration from the Washington state Department of Labor and Industry
for bidder employees.
• Having a valid employment security number for unemployment insurance.
• Having an affidavit that indicates the bidder is not disqualified from bidding as provided
by statutes governing unregistered and unlicensed contractors and /or for non-payment
of prevailing wages per RCW 39.12.065(3) and RCW 39.06.010.
• Holding a state excise tax registration number.
Supplemental Criteria Review:
In addition to the standard responsible bidder requirements, the city may develop additional
criteria to determine whether the lowest bidder is responsible. Parameters for supplemental
criteria are set by RCW 39.04.350(2).
Revision March 2023 Staff Contact: Finance Administrator Kari Roller
The purpose of supplemental criteria review is to identify whether the low bidder holds the
relevant experience, training, and/or certification requirements or qualifications. Criteria may
include experience and other qualifications of the bidder’s contractors, suppliers, or employees
who will be performing specific work on the project. Supplemental criteria should be deliberate,
documented, defensible, and relevant to the project.
The supplemental bidding criteria must be advertised in the bid package. Additionally, the city
must state the basis for evaluation, deadline for submitting bidder responsibility documentation,
and the deadline for the appeal of any “not responsible” determination that may be made.
The city shall evaluate the low bidder’s submitted documentation to determine whether they
meet the supplemental criteria for a responsible bidder. If the low bidder fails to submit the
required supplemental criteria documentation, that bidder may be found non-responsible.
Determination of responsibility must be made prior to the award of the contract.
3. Awarding Public Works Contracts:
Following bid opening and tabulation, an agenda bill shall be prepared by the city clerk division. The
project manager shall submit a staff recommendation memorandum to the city clerk division
recommending award of the contract to the lowest responsive and responsible bidder. The
information in the staff recommendation memo should include as a minimum:
• Name of lowest responsive and responsible bidder.
• Amount of lowest responsive and responsible bid.
• Engineer’s estimate.
• Funding source.
• Total project budget.
• If applicable, any minor irregularities that were waived.
• Any other pertinent information (e.g., required funds transfers, etc.).
NOTE: Generally, the city clerk division will prepare and submit the related agenda bill for bid
awards. However, city departments are authorized to submit their own agenda bills. If a city
department submits the agenda bill, remember to include a copy of the city clerk division bid
summary form used at the bid opening.
The agenda bill must include as a minimum:
• Staff recommendation memo (and any related attachments)
• City clerk division bid summary form
• Indication that the bid opening met the following city council criteria:
i. There was more than one bid,
ii. The lowest responsive and responsible bid was within project budget, and
iii. The lowest responsive and responsible bid contained no significant irregularities.
If one or more of these criteria are not met, the agenda bill must be referred to the appropriate city
council standing committee for review and action.
Bond and Retainage for Sealed Bid Contracts over $150,000:
Revision March 2023 Staff Contact: Finance Administrator Kari Roller
Pursuant to RCW 60.28 and 39.08 the city requires 5% retainage be withheld and that the
contractor will provide a contract bond (combined performance and payment bond) on the city
approved form upon execution of the agreement. Payment of the initial 95% will be made in the
next pay cycle of the city finance department after receipt of such voucher or invoice (pay cycles
bi-weekly). The remaining 5% will be retained for the purpose of completion of the project and
fulfillment of claims and liens.
Bond and Retainage for Sealed Bid Contracts under $150,000:
Pursuant to RCW 60.28 and 39.08 the city requires 5% retainage be withheld and that the
contractor will provide a either a performance and payment (contract) bond on the city approved
form upon execution of the agreement or waive the payment and performance bond and instead
the city will retain 10%. Payment of the initial 95% will be made in the next pay cycle of the city
finance department after receipt of such voucher or invoice (pay cycles are bi-weekly). The
remaining 5% will be retained for the purpose of completion of the project and fulfillment of
claims and liens. (Unless the contractor waives the payment and performance (contract) bond
below and opts for a 10% retainage as set forth in the example below.)
Contractor must pick one – if contractor does not pick then 5% with contract bond is required:
_______ To provide a payment and performance bond (contract bond) in the amount of 100% of
the estimate including taxes with a 5% retainage, or
_______ To waive a payment and performance bond (contract bond) and instead the city will
retain the remaining 10% for the purpose of completion of the project and fulfillment
of claims and liens.
4. Signature and Approval Authority:
Dollar Amount Signing Authority
All dollar amounts City council approves, mayor signs