A. All contracts involving more than $10,000.00 shall be awarded by the Council.
B. Written contracts signed by the City Administrator or the Administrator’s designee and the contractor shall be used for the following types of procurements:
1. Construction work exceeding $10,000.00;
2. Professional services exceeding $5,000.00. (Prior code § 9A-7)

If any official of the City purchases or contracts for any goods, services or capital improvements in a manner contrary to the provisions of this chapter, such purchase or contract shall be voidable by the City. However, when, in the opinion of the City Administrator, the contracting violation occurred through no fault of the contractor, the contractor may be reimbursed on the basis of goods and services furnished or work performed in good faith, in such amount as the City Administrator may determine. (Prior code § 9A-8)

No person or entity shall have a valid or enforceable claim against the City for the payment of any moneys or any other thing of value pursuant to an alleged contract or agreement, unless the contract or agreement has been signed and authorized as provided in this division. (Prior code § 9A-9)

A. General. All City contracts shall be awarded by competitive sealed bidding or competitive sealed proposals, except as otherwise provided in:
1. Section 7.08.070(A), Small purchases;
2. Section 7.08.070(B), Professional services;
3. Section 7.08.070(C), Emergency procurement;
4. Section 7.08.070(D), Sole source procurement;
5. Section 7.08.070(E), Cooperative purchasing.
B. City Vendors or Suppliers. The City Administrator or designee shall take all reasonable steps to assure that all qualified vendors or suppliers of goods or services residing or having their principal offices in the City are made aware of the City’s issuance of invitations for bids or request for proposals and given an opportunity to submit bids or proposals in response thereto. (Prior code § 9A-10)

A. Conditions for Use. Competitive sealed bidding shall be used when all of the following circumstances apply:
1. Time permits the solicitation, submission and evaluation of sealed bids;
2. The award will be made on the basis of price and price-related factors;
3. It is not necessary to conduct discussions with responding sources about their bids; and
4. There is reasonable expectation of receiving more than one bid.
B. Procedure. The following general procedures shall be followed for awarding contracts by competitive sealed bidding.
1. Invitation for Bids. An invitation for bids shall be issued, which shall include specifications and all contractual terms and conditions applicable to the procurement.
2. Public Notice. Public notice of the invitation for bids shall be given at a reasonable time prior to the date set forth therein for the opening of bids. Such notice may include publication in a newspaper of general circulation.
3. Opening of Bids. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and such other relevant information as may be specified by regulation, together with the name of each bidder, shall be recorded; the record and each bid shall be open to public inspection.
4. Acceptance and Evaluation of Bids. Bids shall be evaluated based on the requirements set forth in the invitation for bids. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as, but not limited to, discounts, transportation costs and total or life cycle costs. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the invitation for bid.
5. Correction or Withdrawal of Bids. Correction or withdrawal of inadvertently erroneous bids before or after award or cancellation of awards or contracts based on bid mistakes shall be permitted in accordance with such regulations as the City Administrator may establish. After the opening of bids, no changes in bid prices or other provisions of bids prejudicial to the interest of the City or fair competition shall be permitted. Except as otherwise provided by regulation, all decisions to permit the correction or withdrawal of bids or to cancel awards or contracts based on bid mistakes shall be supported by a written determination by the City Administrator.
6. Award. The contract shall be awarded with reasonable promptness by written notice to the most responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
7. Multistep Sealed Bidding. When it is considered impractical to initially prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders or offerors whose offers have been qualified under the criteria set forth in the first solicitation.
C. Cancellation of Invitation for Bids. An invitation for bids, or other solicitations may be canceled or any or all bids may be rejected, in whole or in part, as may be specified in the solicitation when it is in the best interests of the City. (Prior code 9A-11)

A. Conditions for Use. A contract may be entered into by the use of competitive sealed proposal method:
1. When the City Administrator determines, in writing, that due to stated circumstances, the use of competitive sealed bidding is either not practical or not advantageous to the City; or
2. For the procurement of professional services.
B. Request for Proposals. Proposals shall be solicited through a request for proposals.
C. Public Notice. Adequate public notice of the request for proposals shall be given in the same manner as provided in Section 7.08.050 (B)(2).
D. Receipt of Proposals. No proposals shall be handled so as to permit disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the evaluation process. A register of proposals shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. The register of proposals shall be open to public inspection only after contract award.
E. Evaluation Factors. The request for proposals shall state the relative importance of price and other evaluation factors.
F. Discussion with Responsible Offeror and Revisions to Proposals. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible to being selected for award for the purpose of clarification to assure full understanding of and conformance with the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposal, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no discussion of the identity of competing offerors.
G. Award. Award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration price and evaluation factors set forth in the request for proposals. The contract file shall contain the basis on which the award is made.
H. Cancellation of Request for Proposals. A request for proposals or other solicitations may be canceled or any or all proposals may be rejected, in whole or in part, as may be specified in the solicitation when it is in the best interests of the City. (Prior code 9A-12)

A. Small Purchases. Any procurement not exceeding the amount of $10,000.00 may be made without the requirement of competitive bidding; provided, however, that procurement requirements shall not be artificially divided so as to constitute a small purchase under this section.
B. Professional Services. Any procurement of or contract for professional services may be made without the requirement of competitive bidding. The City Administrator may, by regulations, establish competitive negotiation or selection procedures for professional service contracts or classes of professional service contracts.
C. Emergency Procurement. The City Administrator or designee may make or authorize others to make emergency procurements without the requirement of competitive bidding when there exists a threat to the public health, welfare or safety under emergency conditions, provided that the City Administrator or designee shall make a written determination of the basis for the emergency, which shall be approved by the City Council by resolution, that such emergency procurements shall be made with such competition as is practicable under the circumstances and that the City Administrator shall make a written determination of the basis for the selection of the particular contractor, which shall be included in the contract file. In no case, shall failure to plan for provision of a City service constitute an emergency under this subsection.
D. Sole Source Procurement. A contract may be awarded for a good, service or construction item without the requirement of competitive bidding when, under such regulations as the City Administrator may establish, the City Administrator determines, in writing, that there is only one available source for the good, service or construction item or if a specific manufacturer’s product is required to ensure compatibility with existing installed equipment and so notifies the City Council. The City Administrator’s determination shall be subject to review and approval by the City Council by resolution.
E. Cooperative Purchasing. The City Administrator may enter into contracts or agreements for cooperative purchasing, as defined in Section 7.04.040 (F) of this chapter, without the requirement of competitive bidding by the City, provided that such cooperative purchasing meets all of the requirements of this division and Chapter 8A of this Code and is consistent with their provisions in every respect and that the cooperative purchasing agreement is subject to review and approval by the City Council by resolution prior to any actual purchase or purchases being made thereunder. (Prior code § 9A-13)

Insofar as it is practical, in all procurements exempt from the requirement of competitive bidding, with the exception of sole source procurement and cooperative purchasing, proposals for the good or service required shall be solicited from at least 3 qualified sources. In the event that 3 qualified sources do not exist, the City Administrator or his or her designee shall make a written determination of that fact and report that determination to the City Council. (Prior code § 9A-14)

An extension of a contract may be awarded without competition when the City Administrator finds, in writing, that circumstances warrant the extension of an existing contract at the same unit price, provided that the extension occurs within 12 months of the date of the execution of the original contract and does not exceed 25% of the total original price. (Prior code § 9A-15)

A. Contents of Record. All determinations and other written records pertaining to any solicitation, award or performance of a contract shall be maintained for the City in a contract file. All records shall be maintained for such time as required by State law or regulation but for not less than 3 years.
B. Submission to the City Council. A copy of such record shall be submitted to the City Council upon request. Such record shall be available for public inspection. (Prior code § 9A-16)

Notwithstanding any other provision of this division, all procurement actions shall comply in every respect with all the provisions of Chapter 14.04 of this Code, known as the “Takoma Park Nuclear-Free Zone Act.” (Prior code § 9A-17)

A. City purchases shall be memorialized by a written contract or a purchase order signed in accordance with this chapter. Purchase orders shall be consecutively numbered from the start of each fiscal year. Purchase orders shall be signed by the City Administrator or his or her designee.
B. No department head shall make any purchase on behalf of or chargeable to the City except by means of a purchase order signed in accordance with subsection (A) of this section; provided, however, that this subsection (B) shall not apply to expenditures made in advance of a purchase in emergencies as defined in and subject to the regulations that may be established by the City Administrator; provided, however, that in the case of emergency expenditures, a purchase order must be obtained from the City Administrator or designee within 72 hours of the purchase.
C. No person employed by the City or providing services to the City as an independent contractor shall purchase or cause to be purchased through or from the City any item for his or her personal use. Without limitation on any other legal actions or remedies available, violations of this section shall be sufficient cause for dismissal, suspension or termination of employment or of any contract for services, as the City Council may determine. A violation of this section shall be a Class A offense. (Prior code § 9A-18)

The City Administrator shall have the authority to establish procedures for petty cash expenditures. Such procedures may provide for departmental petty cash levels of up to $200.00 for expenditures made by or with the approval of department heads. Such petty cash expenditures shall be made after such price shopping as the department head deems appropriate or is otherwise established by the City Administrator. (Prior code § 9A-19)

A. General Preference. The City shall purchase recycled products whenever sufficient quantities are readily available and meet the City’s specifications. The City shall purchase recycled products that contain the highest percentage of recovered material and are produced to the greater extent with post-consumer materials.
B. Price Preference. To the extent practicable the City shall purchase recycled products and may provide for a price preference not to exceed 15%.
C. Purchase of Certain Specified Products and Services. Notwithstanding any other provision of this division, all procurement actions shall comply with the following provisions:
1. All City stationery and envelopes with the City return address shall be made of recycled paper.
2. The City newsletter shall be produced on recycled content newsprint.
3. When the City is using an outside printer, the City must obtain both a price quote for recycled and nonrecycled paper and shall require that the job be done using recycled paper if there is a price differential of 15% or less.
4. All copiers and laser printers purchased by the City after the effective date of this legislation shall be able to use recycled paper, and all copiers shall be able to perform 2-sided copying as an automatic function.
D. Product Specifications. All departments of the City shall review and revise product specifications so as to conform to the following guidelines:
1. Specifications shall not require the use of products made from virgin materials.
2. Specifications shall not exclude the use of recycled products.
3. A minimum percentage of recovered material content shall be incorporated into each specification when it is known that there are sufficient and readily available supplies of a particular recycled product.
E. Practicability of Procurement. In an assessment of the practicability of procurement of goods containing recycled materials, the City shall consider, among other relevant factors, product availability, product suitability for intended use, including whether the product meets established performance standards and will not negatively impact the health and safety of employees and residents, and cost.
F. Certification of Recycled Content. The City shall require the seller to certify in writing that any recycled product sold to the City by competitive bid contract or cooperative purchase contains the minimum percentage of recovered materials set forth in the City’s product specification and shall also specify the percentage of post-consumer materials contained in the product.
G. Labeling of Recycled Products. To the extent practical, all products purchased by the City made from recycled materials shall be labeled as such. City stationery, envelopes with the City return address and the City newsletter shall be labeled as being printed on recycled paper. (Prior code § 9A-19.1)

A. All departments, at such times and in such form as may be prescribed, shall submit to the City Administrator reports listing stocks of all articles which are no longer used, which have become obsolete or which are surplus to the needs of the department. The City Administrator shall transfer serviceable surplus goods between using departments in lieu of filling requisitions for the purchase of new or additional stock of the same or similar articles, unless such transfer is contrary to the best interests of the City as determined by the City Administrator.
B. The City Administrator shall provide a report on disposed equipment/goods to the Council on a quarterly basis. (Prior code § 9A-20)

A. Except as provided in this article, all goods which have become surplus, obsolete or unusable and whose current estimated value is $10,000.00 or more shall be sold to the highest responsible bidder by the competitive bid or proposal procedures prescribed in Article 2 of this chapter, except that the goal shall be to obtain the highest price from prospective purchasers. The City Administrator may waive the competitive bid or proposal procedures and sell such property by auction or by private sale after reasonable public notice when the return to the City is expected to be increased or the nature of the goods is such as to make competitive bid or proposal procedures impractical.
B. Goods which have been found by the City Administrator to have become surplus, obsolete or unusable, and whose current value is estimated to be less than $10,000.00, may be disposed of by the methods described in regulations the City Administrator may establish. Such dispositions shall, wherever feasible, be based on competitive price quotations and shall be made to a responsible purchaser offering the highest price. The City Administrator is authorized to sell by auction such property to the highest responsible bidder, after public notice, when, in the City Administrator’s opinion, the return to the City is expected to increase by this procedure. In order to produce the highest return for the disposition of such personal property, the City Administrator may select from the following disposition methods the method which will yield the greatest return under the circumstances of each disposition:
1. Competitive sealed bids;
2. Competitive sealed proposals;
3. Competitive auction sale;
4. Trade-in or exchange for goods which are of current need;
5. Competitive negotiation.
(Prior code § 9A-21)

In the event that the City Administrator or designee determines that the goods offered for disposal have no real or scrap value, they may be disposed of as refuse. (Prior code § 9A-22)

Every City contract for the provision of services, awarded after a competitive bid or proposal process, shall require the contractor and any subcontractor to pay each employee assigned to perform services under the City contract a living wage. As used in this article, “covered employer” refers to any contractor or subcontractor who is subject to the City’s living wage requirement. (Ord. 2007-55 § 1 (part), 2007)

The provisions of this article do not apply to the following:
A. A contractor or subcontractor who employs fewer than 10 employees;
B. A contract for services valued at less than $20,000.00;
C. A contract:
1. With a public entity,
2. With a nonprofit organization that has qualified for an exemption from federal income taxes under Section 501(c)(3) of the Internal Revenue Code,
3. Procured through an emergency procurement, sole source procurement, or cooperative purchase procurement,
4. For electricity, telephone, cable television, water, sewer, or similar service delivered by a regulated public utility,
5. For the purchase or lease of goods, equipment or vehicles.
D. If the City Manager makes a written determination that application of this article would conflict with an applicable Federal, State or County program, contract, or grant requirement, then the living wage requirements of this article shall not apply to the contract or program. (Ord. 2007-55 § 1 (part), 2007)

A. The City’s living wage requirement shall be identified and set forth in all non-exempt procurement solicitations for the contract.
B. Each response to a bid or proposal to provide services to the City and each City contract for services must include a certification that the contractor and each subcontractor shall comply with the City’s living wage requirements or a certification by the contractor or subcontractor setting forth the applicable exemption from the living wage requirement, along with supporting documentation for the exemption. Any contractor or subcontractor who knowingly makes a false statement in such certification, or who fails to comply with the living wage requirement during performance of a City contract for services, shall be subject to loss of the contract and disqualification from future City contracts.
C. A contractor must not split or subdivide a contract, pay an employee through a third party, or treat an employee as a subcontractor or independent contractor, to avoid the imposition of any requirement under this article.
D. If a contractor or subcontractor commits in its bid or proposal to provide health insurance to any employee who provides services to the City under a City contract, the contractor or subcontractor may:
1. Certify in its bid or proposal the per-employee hourly cost of the employer’s share of the premium for that insurance; and
2. Reduce the wage paid under Section 7.08.210 to any employee covered by the health insurance by all or part of the per-employee hourly cost of the employer’s share of the health insurance premium. (Ord. 2007-55 § 1 (part), 2007)

A. Except as permitted under Section 7.08.200(D), each covered employer must pay each employee who is not exempt under subsection (F) of this section no less than the City’s living wage rate.
B. The City’s living wage rate shall be equal to the Montgomery County living wage rate established and published by Montgomery County pursuant to Section 11B-33A of the Montgomery County Code and any applicable regulations, as amended and in effect from time-to-time.
C. The City’s living wage rate shall be adjusted as of July 1st of each year to reflect the most current Montgomery County living wage rate and shall be applicable to any contract awarded thereafter until the date of the next adjustment; provided, however, that the wage rates in effect at the time a contract is awarded to a covered employer by the City shall remain in effect under such contract during its original term. At the time of the exercise of any renewal option under a City contract with a covered employer, the required wage rate shall be adjusted as provided above, and as adjusted, shall remain in effect during the renewal term.
D. The City Manager shall establish the applicable living wage rate by April 1st of each year and cause such rate to be published in English and Spanish on the City’s web site. Notice of the required living wage rate also shall be stated in procurement solicitations, as required by Section 7.08.200(A).
E. Each covered employer must include the living wage requirements of this article in every subcontract so that the provisions of this article will be binding upon each subcontractor.
F. The living wage requirements of this section do not apply to any employee:
1. Who performs no measurable work related to any contract with the City;
2. Who participates in a government-operated or government-sponsored program that restricts the earnings of or wages paid to employees to a level below the wage required under this section;
3. Who participates for no longer than 120 days in any calendar year in a government-operated or government-sponsored summer youth employment program; or
4. For whom a lower wage rate is expressly set in a bona fide collective bargaining agreement.
G. If any Federal, State, or City law or regulation requires payment of a higher wage, that law or regulation controls. If any applicable collective bargaining agreement requires payment of a higher wage, that agreement controls. (Ord. 2007-55 § 1 (part), 2007)

A. Each covered employer shall conspicuously post notice of the required City living wage rate, in English and Spanish, on such form as shall be provided by the City.
B. Within 3 days of an employee’s request, a covered employer shall provide to such employee a written statement in English and Spanish, on such form as shall be provided by the City, of the then required living wage rate. (Ord. 2007-55 § 1 (part), 2007)

A. During the term of the City contract and for a period of 3 years after the expiration or earlier termination of the City contract, each contractor and subcontractor subject to the provisions of this article, shall keep and preserve records which show the wages provided by such contractor and its subcontractors to each employee who provided services under the City contract. The City Manager, or designee, shall have the power to examine such records at reasonable times during normal business hours for the purpose of administering and enforcing the provisions of this article, and to make copies of all or any parts thereof.
B. As an additional term of the City contract, no covered employer shall discharge, reduce the compensation of, or otherwise retaliate against an employee for asserting any right under this article, filing a complaint of violation, or taking any other action to enforce the requirements of this article. Any retaliation is subject to all sanctions for noncompliance with this article.
C. City contracts may specify that liquidated damages for any noncompliance with this article include the amount of any unpaid wages, with interest at the judgment rate from the date originally due and less any deductions required or permitted by law, and that the contractor is jointly and severally liable for any noncompliance by a subcontractor.
D. Any contractor or subcontractor which fails to pay an employee the living wage required by this article shall be liable to the employee in the amount of the unpaid wages, plus interest at the judgment rate from the date originally due and less any deductions required or permitted by law, reasonable attorney’s fees, and damages for any retaliation for asserting any right under this article. Any aggrieved employee of a covered employer under a City contract shall be deemed a third-party beneficiary of the City contract and of the provisions mandated by this article in the City contract. (Ord. 2007-55 § 1 (part), 2007)

The City Council shall review the living wage requirement, including the exemptions set forth in Section 7.08.190, every 3 years following the effective date of this article. Subsequent to such review, the City Council shall determine whether to continue or modify the City’s living wage requirement. The Council’s failure to conduct such review shall have no effect on the validity of the living wage requirement set forth in this article. (Ord. 2007-55 § 1 (part), 2007)