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									CITY OF RICHMOND
     DEPARTMENT
           OF
 PROCUREMENT SERVICES
POLICIES AND PROCEDURES
    AGENCY MANUAL
       Effective 09-01-02
City of Richmond Department of Procurement Policies and Procedures Manual                                FOREWORD



                                                                      FOREWORD

The Purchasing Policies and Procedures Manual has been developed and published under the authority of City of
Richmond Code Chapter 2, Sec. 2-220.4. The Policies and Procedures are effective September 1, 2002, and apply
to all procurements of goods, services, insurance and construction entered into between the City and any non-
governmental entity. This manual supersedes all previous editions.

Revisions to this manual will be issued as required. Only the policy within the manual that
requires the change/update will be replaced. The latest date of revision will be indicated on each
policy.

All procurement liaisons and department personnel that handle procurement requests for the City
will be responsible for becoming familiar with the content of this Policies and Procedures
Manual.

Any questions concerning this manual should be directed to the Department of Procurement
Services at (804) 646-5716.




APPROVAL OF POLICIES AND PROCEDURES:


__________________________________                                          ______________________________
Ms. Sundra Cecil-Johnson, C.P.M., A.P.P, CPPB                               Date
Director of Procurement Services




__________________________________                                          ______________________________
Dr. Calvin D. Jamison                                                       Date
City Manager
City of Richmond Department of Procurement Policies and Procedures Manual            INTRODUCTION



                                                                             SECTION ONE
                                                                               Introduction
Pursuant to Chapter 22.1 of the Code of the City of Richmond (1993), as amended (the
“Procurement Code”), the Department of Procurement Services discharges the procurement and
supply responsibilities for the City of Richmond (the “City”). The Department of Procurement
Services is responsible for development, implementation, and monitoring of various policies and
procedures through specified rules and regulations. The policies and procedures must comply
fully with the City Charter, applicable state and federal laws, the City Code, and various
directives of the City Manager.

The Department of Procurement Services administers, executes and manages two primary
functions: purchasing and contract management. A detailed account of the Department’s role
and responsibilities can be found on page 3.

The Department of Procurement Services is responsible for purchasing a wide variety of
commodities (goods), construction, insurance and services, as well as for the disposal of surplus
personal property items.

The Department of Procurement Services is also responsible for contract management. This
responsibility includes the establishment, review, evaluation, and overall monitoring of a wide
variety of contracts for construction, professional and non-professional services, and
commodities. In addition, the Department is also responsible for the oversight of the City's
automated purchasing system.

The procurement process is a dynamic process, subject to change pursuant to amendments made
to the Virginia Public Procurement Act, actions by City Council, the City Manager's regulations,
and Advisory Memos issued by the Director of Procurement Services. It is also a mutually
cooperative process since numerous procurement documents require prompt review and opinion
(approval/disapproval) by one or more parties, described as follows:

City Council:

City Council is the governing body of the City and exercises all legislative functions within the
City. It is responsible for the content of the Procurement Code and the City Code’s delegation of
authority to the Department of Procurement Services. In addition, certain controversial contracts
and contracts utilizing certain financing arrangements should be submitted to City Council for an
added level of approval.

City Manager:

The City Manager is the final authority in making decisions in any questionable situation
relating to procurement. Specifically, the City Manager is authorized to allow a waiver of
compliance with the Minority Employment Profile (HRC-2) Policy in cases of "substantial
hardship". The City Manager is also responsible for taking disciplinary action against those in
violation of the Procurement Code. All formal procurement contracts over $100,000 and
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City of Richmond Department of Procurement Policies and Procedures Manual              INTRODUCTION

aggregate change-order increases for fixed-price contracts over $100,000 require the City
Manager's approval.

Using Agencies (“Agencies”):

Timely action by City Agencies in conjunction with that of the Department of Procurement
Services is essential to keep the procurement process efficient and functional. A detailed
account of the Using Agencies' role and responsibilities can be found on page 4. It is strongly
recommended that each Agency designate an individual as that Agency's contact person (liaison)
for procurement. This will not only facilitate monitoring of the procurement process, but will
also lessen duplication of effort among the Agency's staff.

Office of Minority Business Enterprise

The mission of the Office of Minority Business Enterprise is to produce, advance and otherwise
facilitate an environment in which minority and disadvantaged business enterprises (M/DBE)
can participate in the full array of contracting opportunities available in the City of Richmond.
The Office is also responsible for monitoring compliance against City contracts in regards to the
Human Rights Ordinance (HRC-2) and minority participation.

Department of Finance:

The Department of Finance is responsible for making partial and final payments to vendors who
conduct business with the City of Richmond. In some cases, the Director of Finance's signature
may be needed to execute a City contract. In addition, the Department of Finance’s Division of
Risk Management is responsible for managing the City’s exposure to liability, which requires its
review of some contract provisions relating to liability allocation and insurance.

Office of the City Attorney:

If a contract includes bonds or is not on one of the City’s standard contract documents, the
Office of the City Attorney must review the contract to determine whether it is legally acceptable
to the City. The Office of the City Attorney must also review any changes or additions to the
City’s standard language for a contract prior to signing. The Office of the City Attorney will
approve these bonds and contract documents “as to form” to indicate that the documents are
legally enforceable and comply with applicable laws. Additionally, the Office of the City
Attorney will provide legal advice regarding City, state and federal laws and regulations upon
request.

Office of the City Auditor:

The Office of the City Auditor provides periodic review of purchasing transactions to determine
if the procurement was handled in accordance with all applicable policies. Additionally, the
Office of the City Auditor makes recommendations to the Department of Procurement Services
related to protecting the City's interest when outside contractors are hired to handle various City
functions.



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Department of Information Technology:

With the continuation of the automated procurement process, now known as Advantage
Financial, the Department of Information Technology (“DIT”) plays an important role in keeping
the system operational. In addition, DIT must approve all computer (hardware and software) and
all telecommunications equipment purchases made by the City.

FUNCTIONS AND    RESPONSIBILITIES  OF                                        THE   DEPARTMENT           OF
PROCUREMENT SERVICES AND CITY AGENCIES

Successful purchasing for the City of Richmond requires active cooperation between the
Department of Procurement Services and the Agencies it serves. Each entity has fundamental
requirements for this mutually cooperative endeavor.

The Department of Procurement Services has the responsibility to:

1.           purchase or lease, for the use of the City and its Agencies, departments, boards,
             commissions, circuit and district courts, and city jail, all supplies, materials, equipment,
             and contractual services needed. (Exceptions that are the responsibility of the Agency are
             listed in Policy No. 13, page III-19.);

2.           make all contracts or purchases based on a competitive procurement process whenever
             possible;

3.           make emergency purchases, leases, or contracts for supplies, materials, equipment, and
             services for City Agencies;

4.           assist in the development of standard specifications for all supplies, materials, or
             equipment purchased through the Department of Procurement Services, with cooperation
             of the Agencies;

5.           guide City Agencies in making inspections of supplies, materials, and equipment
             delivered to the City;

6.           assist the Division of Minority Business Enterprise of the Department of Economic
             Development (the “MBE office”) in the implementation of its Minority Business
             Utilization Plan and other policies and programs to promote and support active and equal
             opportunity participation by all vendors and individuals;

7.           dispose of surplus, salvaged, obsolete, abandoned, or confiscated property;

8.           assist City Agencies in acquiring general physical and chemical testing laboratory
             services through independent contractors;

9.           encourage the use of recycled products; and

10.          oversee, train personnel, and handle the day-to-day functions of Advantage Financial as it
             relates to purchasing and contract management.

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Agencies have the purchasing functions and responsibilities to:

1.           initiate a purchase requisition except when authorized by the City Charter, the City Code
             or other regulations to directly purchase specified supplies, materials, and equipment;

2.           request all items purchased under a City contract through a Price Agreement Release
             (PG) form;

3.           determine needed quantity and general type or character of supplies, materials,
             equipment, and date by which the delivery is required;

4.           anticipate the need in advance and initiate requisitions allowing adequate time in
             accordance with established cycle times to receive the goods and/or services;

5.           coordinate review of items being considered for purchase, as well as vendors' evaluation
             sessions and interviews with Department of Procurement Services staff;

6.           refuse to accept any shipment or delivery that fails to meet the terms of the purchase
             properly document with the Department of Procurement Services at time of refusal;

7.           report failures to deliver by the designated time to appropriate Procurement Services
             personnel;

8.           make all emergency purchases through the Department of Procurement Services during
             normal business hours whenever possible;

9.           transfer or dispose of surplus or obsolete supplies, materials, or equipment exclusively
             through the Department of Procurement Services;

10.          advise the Director of Procurement Services of any change in plans or programs affecting
             the purchase or use of supplies, materials, or equipment;

11.          advise the Director of Procurement Services of the appropriateness and suitability of
             commodities, equipment, and services furnished;

12.          provide assistance in development of City Standards and Specifications as necessary;

13.          request the establishment of a City contract when it would be beneficial to the Agency;
             and

14.          provide written documentation supporting the performance and/or non-performance of a
             vendor.




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City of Richmond Department of Procurement Policies and Procedures Manual          INTRODUCTION


                                                                                 Format

The manual is divided into Four sections:


Section One - Introduction provides the general overview of the document. The Table of
Contents allows a quick guide to the remainder of the document.

Section Two - Procurement Code provides the chapter of the City Code that governs the City's
procurement policies and procedures.

Section Three - Purchasing Policies provides the policies utilized by the Department of
Procurement Services, and, whenever applicable, the related source of authority. Detailed step-
by-step procedures are provided as appropriate for the various policies.

Section Four - Glossary of Terms provides a simple explanation of frequently used technical
terms and acronyms.

Although effort has been made to keep the language as simple as possible, users are encouraged
to acquire appropriate clarification from Procurement Services officials whenever necessary.

The manual is provided on the City’s Intranet Web Site to quickly and efficiently provide
periodic updates and revisions to City personnel.




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City of Richmond Department of Procurement Policies and Procedures Manual




                                                                                                SECTION TWO
                                                                              Code of the City of Richmond 22.1
                                                                            AN ORDINANCE
                                                                             (Unofficial copy)



To amend the Code of the City of Richmond (1993) by adding therein a new chapter, Chapter 22.1, entitled
“Public Procurement”, and to repeal the existing Chapter 22 entitled “Public Procurement”, to effect a
comprehensive revision of the City Code provisions pertaining to public procurement.


Patron – City Manager


Approved as to form and legality
by the City Attorney



THE CITY OF RICHMOND HEREBY ORDAINS:

             § 1.         That the Code of the City of Richmond (1993) is hereby amended by adding therein a new chapter, Chapter 22.1,

entitled “Public Procurement”, a copy of which chapter is attached to this ordinance and made a part hereof.

             § 2.         That Chapter 22 of the Code of the City of Richmond (1993), entitled “Public Procurement”, shall in all respects be

superseded by Chapter 22.1, and Chapter 22 is hereby repealed.

             § 3.         That all actions taken under authorization of the provisions of Chapter 22 are hereby ratified and confirmed.

             § 4.         This ordinance shall be in force and effect upon adoption.




                                                                        ARTICLE I. IN GENERAL

Sec. 22.1-1. Purpose.

             The purpose of this chapter is to increase public confidence in purchasing by this City, to encourage

competition in public purchasing among vendors or contractors, to administer fairly and equitably purchasing

policies among bidders and to obtain high quality goods and services at the lowest possible price within the

specified time.



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Sec. 22.1-2. Application.

             (a)          This chapter applies to contracts for the procurement of goods, services, insurance and

construction entered into by the City involving every expenditure for public purchasing from nongovernmental

sources.

             (b)          When the procurement involves the expenditure of federal assistance or contract funds, the

procurement shall be conducted in accordance with any applicable mandatory federal laws and/or regulations,

that are not reflected in this chapter. Nothing in this chapter shall prevent any public agency from complying

with the terms and conditions of any grant, gift or bequest which are otherwise consistent with law.



Sec. 22.1-2.1. Financing arrangements.

             As a requisite for entering into any contract for the procurement of goods, services, insurance,

construction or other purchase to be made pursuant to the provisions of this chapter, the approval of the

Director of Finance shall be obtained prior to agreeing to the terms of any contract that will involve lease-

purchase, installment payments, payment of interest on deferred balances or any other means of financing a

deferred balance of the cost of purchase of such goods or services.


Sec. 22.1-3. Definitions.

             The following words and phrases, when used in this chapter, shall have the meanings ascribed to them

below, except in those instances where the context clearly indicates a different meaning:

             Business means any corporation, partnership, individual, sole proprietorship, joint stock company, joint

venture or any other private legal entity.

             Competitive sealed bidding means a method of contractor selection under this chapter, not required for

the procurement of professional services, that begins with the public notice and issuance of a written invitation

for bids under Section 22.1-42, includes a public opening under Section 22.1-47, and results in the evaluation of


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bids under Section 22.1-49 and an award under Section 22.1-50.

             Competitive negotiation means a method of source selection that involves individual discussions

between the City and the offeror on the basis of responses to the City’s request for proposals.

             Construction means building, altering, repairing, improving or demolishing any structure, building,

road, street or highway, and any draining, dredging, excavation, grading or similar work upon real property.

             Construction management contract means a contract in which a party is retained by the City to

coordinate and administer contracts for construction services for the benefit of the City, and may also include, if

provided in the contract, the furnishing of construction services to the City.

             Contract means all types of City agreements, regardless of what they may be called, for the procurement

of goods, services, insurance or construction.

             Contract modification/supplement means any written alteration in specifications, delivery point, rate of

delivery, period of performance, price, quantity or other provision of any contract accomplished by mutual

action of the parties to the contract.

             Contractor means any person, company, corporation, or partnership having a contract with the City or a

using agency thereof.

             Cost analysis means the evaluation of cost data for the purpose of arriving at costs actually incurred or

estimates of costs to be incurred, prices to be paid, and costs to be reimbursed.

             Cost data means factual information concerning the cost of labor, material, overhead, and other cost

elements, which are expected to be incurred, or which have been actually incurred by the contractor in

performing the contract.

             Cost-reimbursement contract means a contract under which a contractor is reimbursed for costs which

are allowable and allocable in accordance with the contract terms and the provisions of this chapter, and a fee or

profit, if any.



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             Design-build contract means a contract between the City and another party in which the party

contracting with the City agrees to both design and build the structure, roadway or other item specified in the

contract.

             Direct or indirect participation means involvement through decision, approval, disapproval, preparation

of any part of a purchase request, influencing the content of any specification or procurement standard,

rendering of advice, investigation, auditing, or any other advisory capacity.

             Director means the Director of Procurement Services of the City.

             Disadvantaged business means a small business that is owned or controlled by a majority of persons,

not limited to members of minority groups, who have been deprived of the opportunity to develop and maintain

a competitive position within the economy because of social disadvantages.

             Goods means all material, equipment, supplies, printing and automated data processing hardware and

software.

             Informality means a minor defect or variation of a bid or proposal from the exact requirements of the

invitation for bids or the request for proposals which does not affect the quality, quantity or delivery schedule

for the goods, services or construction being procured.

             Insurance means a contract whereby, for a stipulated consideration, one party undertakes to compensate

the other for loss on a specified subject by specified perils.

             Intent to award means an intent by the City to accept a bid or proposal.

             Invitation for bids means all documents, whether attached or incorporated by reference, utilized for

soliciting sealed bids.

             Minority business enterprise means a business at least fifty-one percent (51%) of which is owned and

controlled or fifty-one percent (51%) minority-owned and operated by minority group members or, in case of a

stock corporation, at least fifty-one percent (51%) of the stock which is owned and controlled by minority group



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members.

             Minority group members means citizens of the United States who are Blacks, Hispanics, Asians,

Indians, Eskimos or Aleuts.

             Nominal value means a value so small, slight, or the like, in comparison to what might properly be

expected, as scarcely to be entitled to the same, but in no case to be more than thirty dollars ($30.00).

             Nonprofessional services means any services not specifically identified as professional services.

             Person means any business, individual, corporation, union, committee, club, other organization, or

group of individuals.

             Professional services means work performed by an independent contractor within the scope of the

practice of accounting, actuarial services, architecture, land surveying, landscape architecture, law, dentistry,

medicine, optometry, pharmacy or professional engineering.

             Public body means any legislative, executive or judicial body, agency, office, department, authority,

post, commission, committee, institution, board or political subdivision created by law to exercise some

sovereign power or to perform some governmental duty, and empowered by law to undertake the activities

described in this chapter.

             Public contract means an agreement between a public body and a nongovernmental source that is

enforceable in a court of law.

             Qualified products list means an approved list of goods, services or construction items described by

model or catalog number, that, prior to competitive solicitation, the City has determined will meet the

applicable specification requirements.

             Recycled paper means any paper having a total weight consisting of not less than fifty percent (50%)

recovered materials, as that term is defined for purposes of purchasing paper and paper products in 40 C.F.R. §

247.3 (2001), as amended.



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             Request for proposals means all documents, whether attached or incorporated by reference, utilized for

soliciting proposals.

             Request for qualifications means all documents, whether attached or incorporated by reference, utilized

for soliciting qualification statements.

             Responsible bidder or offeror means a person who has the capability, in all respects, to perform fully the

contract requirements and the moral and business integrity and reliability which will assure good faith

performance, and who has been prequalified, if required.

             Responsive bidder means a person who has submitted a bid which conforms in all material respects to

the invitation for bids.

             Services means any work performed by an independent contractor which does not consist primarily of

acquisition of equipment or materials, or the rental of equipment, materials and supplies.

             Small business means a United States business which is independently owned and which is not

dominant in its field of operation or an affiliate or subsidiary of a business dominant in its field of operation.

             Specification means any written description of the physical or functional characteristics, or of the nature

of a good, service or construction item. It may include a description of any requirement for inspecting, testing,

or preparing a good, service or construction item for delivery.

             Using agency means any department, agency, bureau, board, commission, court, City jail or jail forum

or other unit in the City government requiring goods, services, insurance or construction as provided for in this

chapter.


Sec. 22.1-4. Purchasing of recycled materials.

In determining the award of any contract for paper or paper products to be purchased for use by City agencies,

the Department of Procurement Services shall award to the lowest responsible and responsive bidder offering

recycled paper of a quality suitable for the purpose intended, so long as the bid price is not more than ten


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percent (10%) greater than the bid price of the lowest responsive and responsible bidder offering a product that

does not qualify under the definition of “recycled paper” found in Section 22.1-3.


Secs. 22.1-5--22.1-16. Reserved.


Sec. 22.1-17. Unauthorized purchases.

             Except as herein provided, no official, elected or appointed, or any employee, shall purchase or contract

for any goods, services, insurance or construction within the purview of this chapter other than by and through

the Director and any purchase order or contract made contrary to the provisions hereof, or any purchase order or

contract made when sufficient funds are not available is not approved and the City shall not be bound thereby.


Secs. 22.1-18--22.1-25. Reserved.

                                                   ARTICLE II. COOPERATIVE PROCUREMENT

Sec. 22.1-26. Conditions for use.

             (a)          The City may participate in, sponsor, conduct or administer a cooperative procurement

agreement with one or more other public bodies for the purpose of combining requirements to increase

efficiency or reduce administrative expenses. Any public body which enters into a cooperative procurement

agreement with the City shall comply with the policies and procedures adopted by this chapter.

             (b)          The City, which is also a utility operator, may purchase services through or participate in

contracts awarded by one or more utility operators which are not public bodies for utility marking services, as

required by the Underground Utility Damage Prevention Act (Section 56-265.14 et seq. of the Code of Virginia

(1950), as amended). A purchase of services under this subsection may deviate from the procurement

procedures set forth in this chapter, upon a determination made in advance by the Director and set forth in

writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, and

the contract is awarded based on competitive principles.


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Secs. 22.1-27--22.1-35. Reserved.


             ARTICLE III. CONTRACT FORMATION AND METHODS OF SOURCE SELECTION

Sec. 22.1-36. Conditions for use of competitive sealed bidding.

             All public contracts with nongovernmental contractors for the purchase or lease of goods, or for the

purchase of services, insurance or construction shall be awarded after competitive sealed bidding, or

competitive negotiation as provided in this chapter, unless otherwise authorized by law.

Sec. 22.1-37. Competitive sealed bidding or competitive negotiations on state-aid projects.

             No contract for the construction of any building or for an addition to or improvement of an existing

building for which state funds of not more than thirty thousand dollars ($30,000.00) in the aggregate or for the

sum of all phases of a contract or project, either by appropriation, grant-in-aid or loan, are used or are to be used

for all or part of the cost of construction shall be let except after competitive sealed bidding or after competitive

negotiation as provided under subdivision (3) of subsection (a) of Section 22.1-61. The procedure for the

advertising for bids or for proposals and for letting of the contract shall conform, mutatis mutandis, to this

chapter.

Sec. 22.1-37.1. Design-build or construction management contracts; eligibility requirements; award of
contract; records to be kept.

             (a)          While the competitive sealed bid process remains the preferred method of construction

procurement for the City, the City may enter into a contract for construction on a fixed price or not-to-exceed

price design-build or construction management basis provided the City complies with the requirements of this

section and has obtained the approval of the Design-Build/Construction Management Review Board (the

Review Board) pursuant to Section 2.2-2406 of the Code of Virginia (1950), as amended.

             Prior to making a determination as to the use of design-build or construction management for a specific

construction project, the City shall have in its employ or under contract a licensed architect or engineer with


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professional competence appropriate to the project who shall advise the City regarding the use of design-build

or construction management for that project and who shall assist the City with the preparation of the request for

proposals and the evaluation of such proposals.

Prior to issuing a request for proposals for any design-build or construction management contract for a specific

construction project, the City shall:

             (1)          Have adopted, by ordinance or resolution, written procedures governing the selection, evaluation

                          and award of design-build and construction management contracts. Such procedures shall be

                          consistent with those described in this chapter for the procurement of nonprofessional services

                          through competitive negotiation. Such procedures shall also require requests for proposals to

                          include and define the criteria of such construction project in areas such as site plans; floor

                          plans; exterior elevations; basic building envelope materials; fire protection information plans;

                          structural, mechanical (HVAC), and electrical systems; and special telecommunications; and

                          may define such other requirements as the City determines appropriate for that particular

                          construction project. Except as may otherwise be approved by the Review Board, such

                          procedures for:

                          a.           Design-build construction projects shall include a two-step competitive negotiation

                          process consistent with the Review Board’s regulations.

                          b.           Construction management projects shall include selection procedures and required

                          construction management contract terms consistent with the Review Board’s regulations.

             (2)          Have documented in writing that for a specific construction project (i) a design-build or

                          construction management contract is more advantageous than a competitive sealed bid

                          construction contract; (ii) there is a benefit to the public body by using a design-build or




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                          construction management contract; and (iii) competitive sealed bidding is not practical or fiscally

                          advantageous.

             (b)          Once approved by the Review Board in accordance with Section 2.2-2406 of the Code of

Virginia (1950), as amended, the City may procure a design-build or construction management contract for the

specific construction project presented to the Review Board. Unless otherwise specified in the request for

proposals, the contract shall be awarded to the fully qualified offeror who submits an acceptable proposal at the

lowest cost in response to the request for proposals.

             (c)          The City shall provide information as requested by the Review Board to allow post-project

evaluation by the Review Board.


Sec. 22.1-38. Public inspection of certain records.

              (a)         Except as provided in this section, all proceedings, records, contracts and other public records

relating to procurement transactions shall be open to the inspection of any citizen, or any interested person, firm

or corporation, in accordance with the Virginia Freedom of Information Act (Section 2.2-3700 et seq. of the

Code of Virginia (1950), as amended).

             (b)          Cost estimates relating to a proposed procurement transaction prepared by or for a public body

shall not be open to public inspection.

             (c)          Any competitive sealed bidding bidder, upon request, shall be afforded the opportunity to inspect

bid records within a reasonable time after the opening of all bids but prior to award, except in the event that the

public body decides not to accept any of the bids and to reopen the contract. Otherwise, bid records shall be

open to public inspection only after award of the contract.

             (d)          Any competitive negotiation offeror, upon request, shall be afforded the opportunity to inspect

proposal records within a reasonable time after the evaluation and negotiations of proposals are completed but




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prior to award, except in the event that the public body decides not to accept any of the proposals and to reopen

the contract. Otherwise, proposal records shall be open to public inspection only after award of the contract.

             (e)          Any inspection of procurement transaction records under this section shall be subject to

reasonable restrictions to ensure the security and integrity of the records.

             (f)          Trade secrets or proprietary information submitted by a bidder, offeror or contractor in

connection with a procurement transaction or prequalification application submitted pursuant to Section 22.1-

41.1 shall not be subject to the Virginia Freedom of Information Act (Section 2.2-3700 et seq. of the Code of

Virginia (1950), as amended); however, the bidder, offeror or contractor shall (i) invoke the protections of this

section prior to or upon submission of the data or other materials, (ii) identify the data or other materials to be

protected, and (iii) state the reasons why protection is necessary.

Sec. 22.1-39. Reserved.

Sec. 22.1-40. Reserved.

Sec. 22.1-41. Prequalification of non-construction bidders and offerors.

             (a)          The Director is authorized to prequalify bidders or offerors prior to a solicitation of bids or

proposals, whether for goods, services, or insurance, by requiring prospective bidders or offerors to submit such

information as the Director shall deem appropriate, including, but not limited to, samples, financial reports, and

references. The opportunity to prequalify shall be given to any prospective bidder or offeror who has not been

suspended or debarred under this chapter.

             (b)          The Director may refuse to prequalify any prospective bidder or offeror provided that the bidder

or offeror is notified in writing. Such notice shall state the reasons for the action taken. A prospective bidder or

offeror who fails to prequalify for a procurement may not bid on said procurement. However, such prospective

bidder or offeror may appeal said disqualification as provided in Section 22.1-106.

             (c)          In considering any request for prequalification, the Director shall determine whether there is



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reason to believe that the bidder or offeror possesses the management, financial soundness, and history of

performance which indicate apparent ability to successfully complete the plans and specifications of the

invitations for bids or request for proposals, and the bidder’s or offeror’s past and proposed future good faith

minority participation efforts. The Director may employ standard forms designed to elicit necessary

information, or may design other forms for that purpose.

             (d)          Prequalification of a bidder or offeror shall not constitute a conclusive determination that the

bidder or offeror is responsible, and such bidder or offeror may be rejected as nonresponsible on the basis of

subsequently discovered information.

             (e)          Failure of a bidder or offeror to prequalify with respect to a given procurement shall not bar the

bidder or offeror from seeking prequalification as to future procurements, or from bidding or offering proposals

on procurements which do not require prequalification.


Sec. 22.1-41.1. Prequalification of construction bidders.

             (a)          Any prequalification of prospective contractors for construction shall be pursuant to a

prequalification process consistent with the provisions of this section. The opportunity to prequalify shall be

given to any prospective bidder who has not been suspended or debarred under this chapter.

             (b)          Good faith minority participation efforts previously made and those efforts proposed to be made

by the prospective bidder shall be information required to prequalify. The prospective bidder’s past efforts shall

comprise ten percent (10%) of the total prequalification score and the bidder’s proposed efforts shall comprise

twenty percent (20%) of the total qualification score. The City Manager may allow a waiver from the

requirement concerning past efforts, but only for good cause shown. The proposed efforts must be set forth in

detail in writing and must be legally binding on the prospective bidder.

             (c)          The Division of Minority Business Enterprise of the Department of Economic Development

shall maintain and update a list of bona fide minority firms that are qualified in various fields of construction


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subcontracting and shall make this list available to all prospective prime construction contractors who desire to

use it for assistance in attaining the highest possible ranking for good faith minority participation efforts.

             (d)          The application form used in the prequalification process shall set forth the criteria upon which

the qualifications of prospective contractors will be evaluated. The application form shall request of prospective

contractors only such information as is appropriate for an objective evaluation of all prospective contractors

pursuant to such criteria. Such form shall allow the prospective contractor seeking prequalification to request,

by checking the appropriate box, that all information voluntarily submitted by the contractor pursuant to this

subsection shall be considered a trade secret or proprietary information subject to the provisions of Section

22.1-38.

             (e)          Advance notice shall be given of the deadline for the submission of prequalification applications.

The deadline for submission shall be sufficiently in advance of the date set for the submission of bids so as to

allow the procedures set forth in this subsection to be accomplished.

             (f)          At least thirty (30) calendar days prior to the date established for submission of bids or proposals

under the procurement of the contract for which the prequalification applies, the City shall advise in writing

each contractor which submitted an application whether that contractor has been prequalified. In the event that a

contractor is denied prequalification, the written notification to such contractor shall state the reasons for such

denial of prequalification and the factual basis of such reasons.

A decision by the City denying prequalification under the provisions of this section shall be final and

conclusive unless the contractor appeals the decision as provided in Section 22.1-106.

             (g)          Prequalification may be denied to any contractor only if the City finds one of the following:

             (1)          The contractor does not have sufficient financial ability to perform the contract that would result

                          from such procurement. If a bond is required to ensure performance of a contract, evidence that

                          the contractor can acquire a surety bond from a corporation included on the United States



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                          Treasury list of acceptable surety corporations in the amount and type required by the City shall

                          be sufficient to establish the financial ability of such contractor to perform the contract resulting

                          from such procurement;

             (2)          The contractor does not have appropriate experience to perform the construction project in

                          question;

             (3)          The contractor or any officer, director or owner thereof has had judgments entered against him

                          within the past ten (10) years for the breach of contracts for governmental or nongovernmental

                          construction, including, but not limited to, design-build or construction management;

             (4)          The contractor has been in substantial noncompliance with the terms and conditions of prior

                          construction contracts with the City without good cause. If the City has not contracted with a

                          contractor in any prior construction contracts, the City may deny prequalification if the

                          contractor has been in substantial noncompliance with the terms and conditions of comparable

                          construction contracts with another public body without good cause. The City may not utilize

                          this provision to deny prequalification unless the facts underlying such substantial

                          noncompliance were documented in writing in the prior construction project file and such

                          information relating thereto given to the contractor at that time, with the opportunity to respond;

             (5)          The contractor or any officer, director, owner, project manager, procurement manager or chief

                          financial official thereof has been convicted within the past ten years of a crime related to

                          governmental or nongovernmental construction or contracting, including, but not limited to, a

                          violation of (i) Article XI (Section 22.1-151 et seq.), (ii) the Virginia Governmental Frauds Act

                          (Section 18.2-498.1 et seq. of the Code of Virginia (1950), as amended), (iii) Chapter 4.2

                          (Section 59.1-68.6 et seq.) of Title 59.1 of the Code of Virginia (1950), as amended

                          (“Conspiracy to Rig Bids to Government”), or (iv) any substantially similar law of the United



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                          States or another state;

             (6)          The contractor or any officer, director or owner thereof is currently debarred pursuant to an

             established debarment procedure from bidding or contracting by any public body, agency of another

             state or agency of the federal government;

             (7)          The contractor failed to provide to the City in a timely manner any information requested by the

             City relevant to subdivisions (1) through (6) of this subsection; and

             (8)          The contractor failed to make and/or propose to make good faith minority participation efforts or

             failed to satisfy minority participation criteria.


Sec. 22.1-42. Notice of invitation to bid.

             (a)          Notice inviting bids or requesting proposals shall be posted in a designated public area at least

ten (10) calendar days preceding the last day set for the receipt of bids or proposals.

             (b)          When requesting proposals or inviting bids, Director shall also solicit proposals or sealed bids

from a minimum of three (3) responsible prospective suppliers who have requested their names to be added to a

“vendors’ list”, which the Director shall maintain, by sending another notice as will acquaint them with the

proposed purchase or sale. Where there exist less than three (3) known suppliers, the Director shall solicit

proposals or sealed bids from each source. In any case, solicitations sent to the vendors on the vendors’ list shall

be limited to goods or services that are similar in character and ordinarily handled by the trade group to which

the solicitations are sent.

             (c)          The Director shall also advertise pending purchases or sales by notice posted on the public

bulletin board in the office of the Department of Procurement Services.

             (d)          In addition to the requirements above, the Director may provide the notices required by this

section electronically and on the City’s world wide web site in accordance with policies and procedures as the

Director may promulgate to govern such notices.


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Sec. 22.1-43. Use of brand names.

             Unless otherwise provided in the invitation for bids, the name of a certain brand, make or manufacturer

shall not restrict bidders to the specific brand, make or manufacturer named and shall be deemed to convey the

general style, type, character and quality of the article desired. Any article that the City in its sole discretion

determines to be the equal of that specified, considering quality, workmanship, economy of operation, and

suitability for the purpose intended, shall be accepted. The burden of proof as to the comparative quality and

suitability of the alternative equipment, articles, materials or supplies, shall be on the bidder or offeror, who

shall furnish at its own expense such information relating thereto as may be required by the purchasing agent.



Sec. 22.1-44. Comments on specifications.

             For complex equipment, supplies, services or construction, pre-bid conferences with prospective bidders

may be desirable after draft specifications have been prepared. Such conferences may be utilized to help detect

unclear provisions that tend to widen competition by removing unnecessarily restrictive language. Conferences

on purchasing bids will be called by the Director and attended by a requesting agency or department

representative and, if necessary, the City Attorney.


Sec. 22.1-45. Bid bonds on construction contracts.

             (a)          Except in cases of emergency, all bids or proposals for construction contracts in excess of one

hundred thousand dollars ($100,000.00) shall be accompanied by a bid bond from a surety company selected by

the bidder that is authorized to do business in Virginia, as a guarantee that if the contract is awarded to the

bidder, he will enter into the contract for the work mentioned in the bid. The amount of the bid bond shall not

exceed five percent (5%) of the amount bid.

             (b)          No forfeiture under a bid bond shall exceed the lesser of (i) the difference between the bid for




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which the bond was written and the next low bid, or (ii) the face amount of the bid bond.

             (c)          Nothing in this section shall preclude the City from requiring bid bonds to accompany bids or

                          proposals for construction contracts anticipated to be less than one hundred thousand dollars

                          ($100,000.00).

Sec. 22.1-46. Bonds for other than construction contracts.

             (a)          At the discretion of the Director, bidders may be required to submit with their bids a bid bond

from a surety company selected by the bidder that is authorized to do business in Virginia, or a certified check,

in an amount to be determined by the Director and specified in the invitation for bids, which shall be forfeited

to the City upon the bidder’s failure to execute a contract awarded to the bidder or upon the bidder’s failure to

furnish any required performance or payment bonds in connection with a contract awarded.

             (b)          The Director may require successful bidders to furnish a performance bond and/or a payment

bond from a surety company selected by the bidder that is authorized to do business in Virginia at the expense

of the successful bidder, in amounts to be determined by the Director and specified in the invitation for bids, to

ensure the satisfactory completion of the work for which a contract or purchase order is awarded.



Sec. 22.1-47. Bid opening.

             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 the Director deems

appropriate, together with the name of each bidder shall be recorded; the record and each bid shall be open to

public inspection upon completion of award. A tabulation of all bids received shall be made available for public

inspection after the bid opening.



Sec. 22.1-48. Withdrawal of bid due to error.



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             (a)          A bidder for a public construction contract, other than a contract for construction or maintenance

of public highways, may withdraw his bid from consideration if the price bid was substantially lower than the

other bids due solely to a mistake in the bid, provided the bid was submitted in good faith, and the mistake was

a clerical mistake as opposed to a judgment mistake, and was actually due to an unintentional arithmetic error

or an unintentional omission of a quantity of work, labor or material made directly in the compilation of a bid,

which unintentional arithmetic error or unintentional omission can be clearly shown by objective evidence

drawn from inspection of original work papers, documents and materials used in the preparation of the bid

sought to be withdrawn.

             If a bid contains both clerical and judgment mistakes, a bidder may withdraw his bid from consideration

if the price bid would have been substantially lower than the other bids due solely to the clerical mistake, that

was an unintentional arithmetic error or an unintentional omission of a quantity of work, labor or material made

directly in the compilation of a bid that shall be clearly shown by objective evidence drawn from inspection of

original work papers, documents and materials used in the preparation of the bid sought to be withdrawn.

             One of the following procedures for withdrawal of a bid shall be selected by the Director and stated in

the advertisement for bids (i) the bidder shall give notice in writing of his claim of right to withdraw his bid

within two (2) business days after the conclusion of the bid opening procedure and shall submit original work

papers with such notice; or (ii) the bidder shall submit to the Director his original work papers, documents and

materials used in the preparation of the bid within one (1) day after the date fixed for submission of bids. The

work papers shall be delivered by the bidder in person or by registered mail at or prior to the time fixed for the

opening of bids. In either instance, the work papers, documents and materials may be considered as trade

secrets or proprietary information subject to the conditions of subsection (f) of Section 22.1-38. The bids shall

be opened one day following the time fixed by the Director for the submission of bids. Thereafter, the bidder

shall have two (2) hours after the opening of bids within which to claim in writing any mistake as defined



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herein and withdraw his bid. The contract shall not be awarded by the City until the two-hour period has

elapsed. The mistake shall be proved only from the original work papers, documents and materials delivered as

required herein.

             (b)          The Director may establish procedures for the withdrawal of bids for other than construction

contracts.

             (c)          No bid shall be withdrawn under this section when the result would be the awarding of the

contract on another bid of the same bidder or of another bidder in which the ownership of the withdrawing

bidder is more than five percent (5%).

             (d)          If a bid is withdrawn in accordance with this section, the lowest remaining bid shall be deemed

to be the low bid.

             (e)          No bidder who is permitted to withdraw a bid shall, for compensation, supply any material or

labor to or perform any subcontract or other work agreement for the person or firm to whom the contract is

awarded or otherwise benefit, directly or indirectly, from the performance of the project for which the

withdrawn bid was submitted.

             (f)          If the Director denies the withdrawal of a bid under the provisions of this section, he shall notify

the bidder in writing stating the reasons for his decision and award the contract to such bidder at the bid price,

provided such bidder is a responsible and responsive bidder.


Sec. 22.1-49. Competitive sealed bidding--Bid evaluation.

             In determining the lowest responsive and responsible bidder on purchases or contracts, the following

factors among such others as will protect and preserve the interests of the City and its inhabitants shall be

considered:

             (1)          The ability, capacity and will of the bidder to perform the contract or provide the service

                          required;


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             (2)          Whether the bidder can perform the contract or provide the services promptly, or within the time

                          specified, without delay or interference;

             (3)          The character, integrity, reputation, judgment, experience and efficiency of the bidder;

             (4)          The quality of performance of previous contracts or services;

             (5)          The previous and existing compliance by the bidder with laws and ordinances relating to the

                          contract, purchase or service;

             (6)          The equipment, personnel and facilities available to the bidder to perform the contract or provide

                          the service;

             (7)          The sufficiency of the financial resources and ability of the bidder to perform the contract or

                          provide the service;

             (8)          The quality, availability and adaptability of the supplies, materials, equipment or services to the

                          particular use required;

             (9)          The ability of the bidder to provide future maintenance and service for the use of the subject of

                          the purchase or contract;

             (10)         The amount and conditions, if any, of the bid.



Sec. 22.1-50. Same--Bid award.

             (a)          Bids shall be awarded to the lowest responsive and responsible bidder. When the terms and

conditions of multiple bids are so provided in the invitation to bid, awards may be made to more than one

bidder.

             (b)          The contract shall be awarded with reasonable promptness by written notice to the lowest

responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If all bids

for a procurement exceed available funds allocated to that procurement by prior agency, departmental or other



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official action, as certified by the agency head or department director, the Director, with the approval of the

City Manager, is authorized, when time or economic considerations preclude resolicitations of work of a

reduced scope, to negotiate an adjustment of the bid price with the lowest responsive and responsible bidder in

order to bring the bid within the amount of available funds allocated to that procurement.

             (c)          When the award is not given to the lowest bidder, a full and complete statement of the reasons

for placing the order elsewhere shall be prepared by the purchasing office and filed with the other papers

relating to this transaction.


Sec. 22.1-51. Tie bids.

             (a)          In the case of a tie bid, preference shall be given to goods, services and construction produced in

the city of Richmond or provided by persons in the city of Richmond, if such a choice is available; otherwise,

the tie shall be decided by lot, unless the provisions of Section 22.1-4 apply.

             (b)          Whenever any bidder is a resident of any other state and such state under its laws allows a

resident contractor of that state a preference, a like preference may be allowed to the lowest responsible bidder

who is a resident of this State.

             (c)          In any contract which is to be awarded through competitive sealed bidding, if there are equal

bids among qualified bidders, then the contract shall be awarded to the contractor who will be able to provide

the greatest degree of accessibility to the City officials who will be administering the contract.

             (d)          If more than two bids received are tied, the City shall compare (i) location, (ii) payment terms,

(iii) delivery terms, and (iv) other terms and shall select the bid most favorable to the City based on that

comparison, which shall be documented in writing.

             (e)          If none of the foregoing provisions of this section resolve the tie, the Director may cancel the

solicitation and re-bid. Records shall be kept of any proceeding connected with tie bids.




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Sec. 22.1-52. Reserved.


Sec. 22.1-53. Contract pricing arrangements.

             (a)          Except as prohibited herein, public contracts may be awarded on a fixed price or cost

reimbursement basis, or on any other basis that is not prohibited.

             (b)          Subject to the limitations of this section, any type of contract which is appropriate to the

procurement and which will promote the best interests of the City may be used; provided that the use of a cost-

plus-a-percentage-of-cost contract or a cost-plus-a-percentage-of-construction-cost contract is prohibited.

             (c)          A cost reimbursement contract may be used only when a determination is made in writing that

such contract is likely to be less costly to the City than any other type or that it is impracticable to obtain the

supply, service, or construction item required except under such a contract.



Sec. 22.1-54. Multi-term contracts.

             (a)          Specified period. Unless otherwise provided by law, a contract for goods, services or insurance

may be entered into for any period of time deemed to be in the best interest of the City, provided the term of the

contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available

for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal

periods shall be subject to the availability and appropriation of funds therefor.

             (b)          Cancellation due to unavailability of funds in succeeding fiscal periods. When funds are not

appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period,

the contract shall be canceled.

Sec. 22.1-55. Contract modification/supplement.

             A public contract may include provisions for modification of the contract during performance, but no

fixed-price contract that will increase the amount to be expended under such contract in an amount in excess of



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one hundred thousand dollars ($100,000.00) shall be made only if the City Manager approves such change in

writing in advance of such modification being made.


Sec. 22.1-56. Retainage on construction contracts.

             (a)          In any public contract for construction that provides for progress payments in installments based

upon an estimated percentage of completion, the contractor shall be paid at least ninety-five percent (95%) of

the earned sum when payment is due, with not more than five percent (5%) being retained to ensure faithful

performance of the contract. All amounts withheld may be included in the final payment.

             (b)          Any subcontract for a public project that provides for similar progress payments shall be subject

to the provisions of this section.


Sec. 22.1-56.1. Deposit of certain retained funds on certain contracts; penalty for failure to timely
complete.

             (a)          When contracting directly with contractors for public contracts of two hundred thousand dollars

($200,000.00) or more for construction of highways, roads, streets, bridges, parking lots, demolition, clearing,

grading, excavating, paving, pile driving, miscellaneous drainage structures, and the installation of water, gas,

sewer lines and pumping stations where portions of the contract price are to be retained, shall include in the Bid

Proposal an option for the contractor to use an escrow account procedure for utilization of the City’s retainage

funds by so indicating in the space provided in the proposal documents. In the event the contractor elects to use

the escrow account procedure, the escrow agreement form included in the Bid Proposal and Contract shall be

executed and submitted to the Director within fifteen (15) calendar days after notification. If the escrow

agreement form is not submitted within the fifteen-day period, the contractor shall forfeit his rights to the use of

the escrow account procedure.

             (b)          In order to have retained funds paid to an escrow agent, the contractor, the escrow agent, and the

surety shall execute an escrow agreement form. The contractor’s escrow agent shall be a trust company, bank or


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savings institution with its principal office located in the Commonwealth. The escrow agreement and all

regulations adopted by the City shall be substantially the same as that used by the Virginia Department of

Transportation.

             (c)          This section shall not apply to public contracts for construction for railroads, public transit

systems, runways, dams, foundations, installation or maintenance of power systems for the generation and

primary and secondary distribution of electric current ahead of the customer’s meter, the installation or

maintenance of telephone, telegraph or signal systems for public utilities and the construction or maintenance of

solid waste or recycling facilities and treatment plants.

             (d)          Any such public contract for construction with the City which includes payment of interest on

retained funds, may require a provision whereby the contractor, exclusive of reasonable circumstances beyond

the control of the contractor stated in the contract, shall pay a specified penalty for each day exceeding the

completion date stated in the contract.

             (e)          Any subcontract for such public project which provides for similar progress payments shall be

subject to the provisions of this section.


Sec. 22.1-56.2. Public construction contract provisions barring damages for unreasonable delays declared
void.

             (a)          Any provision contained in any public construction contract that purports to waive, release, or

extinguish the rights of a contractor to recover costs or damages for unreasonable delay in performing such

contract, either on his behalf or on behalf of his subcontractor if and to the extent the delay is caused by acts or

omissions of the City, its agents or employees and due to causes within their control shall be void and

unenforceable as against public policy.

             (b)          Subsection (a) shall not be construed to render void any provision of a public construction

contract that:



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             (1)          Allows the City to recover that portion of delay costs caused by the acts or omissions of the

                          contractor, or its subcontractors, agents or employees;

             (2)          Requires notice of any delay by the party claiming the delay;

             (3)          Provides for liquidated damages for delay; or

             (4)          Provides for arbitration or any other procedure designed to settle contract disputes.

             (c)          A contractor making a claim against the City for costs or damages due to the alleged delaying of

the contractor in the performance of its work under any public construction contract shall be liable to the City

and shall pay it for a percentage of all costs incurred by the City in investigating, analyzing, negotiating,

litigating and arbitrating the claim, which percentage shall be equal to the percentage of the contractor’s total

delay claim which is determined through litigation or arbitration to be false or to have no basis in law or in fact.

             (d)          If the City denies a contractor’s claim for costs or damages due to the alleged delaying of the

contractor in the performance of work under any public construction contract, the City shall be liable to and

shall pay such contractor a percentage of all costs incurred by the contractor to investigate, analyze, negotiate,

litigate and arbitrate the claim. The percentage paid by the City shall be equal to the percentage of the

contractor’s total delay claim for which the City’s denial is determined through litigation or arbitration to have

been made in bad faith.


Sec. 22.1-57. Performance and payment bonds.

             (a)          Upon the award of any (i) public construction contract exceeding one hundred thousand dollars

($100,000.00) awarded to any prime contractor or (ii) construction contract exceeding one hundred thousand

dollars ($100,000.00) awarded to any prime contractor requiring the performance of labor or the furnishing of

materials for buildings, structures or other improvements to real property owned by a public body, the

contractor shall furnish to the City, the following bonds:

             (1)          Except for transportation-related projects, a performance bond in the sum of the contract amount


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                          conditioned upon the faithful performance of the contract in strict conformity with the plans,

                          specifications and conditions of the contract. For transportation-related projects, such bond shall

                          be in a form and amount satisfactory to the Director.

             (2)          A payment bond in the sum of the contract amount. Such bond shall be for the protection of

                          claimants who have and fulfill contracts to supply labor or materials to the prime contractor to

                          whom the contract was awarded, or to any subcontractors, in furtherance of the work provided

                          for in such contract, and shall be conditioned upon the prompt payment for all such material

                          furnished or labor supplied or performed in furtherance of the work. “Labor or materials” shall

                          include public utility services and reasonable rentals of equipment, but only for periods when the

                          equipment rented is actually used at the site.

             (b)          Each of such bonds shall be executed by one or more surety companies selected by the

contractor that are authorized to do business in Virginia.

             (c)          Bonds shall be made payable to the City.

             (d)          Each of the bonds shall be filed with the Director.

             (e)          Nothing in this section shall preclude the Director from requiring payment or performance bonds

for construction contracts below one hundred thousand dollars ($100,000.00).

             (f)          Nothing in this section shall preclude such contractor from requiring each subcontractor to

furnish a payment bond with surety thereon in the sum of the full amount of the contract with such

subcontractor conditioned upon the payment to all persons who have and fulfill contracts that are directly with

the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in

the subcontract.


Sec. 22.1-58. Action on performance bond.

             No action against the surety on a performance bond shall be brought unless within one year after:


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             (1)          Completion of the contract, including the expiration of all warranties and guarantees; or

             (2)          Discovery of the defect or breach of warranty, if the action be for such.


Sec. 22.1-59. Actions on payment bond.

             (a)          Subject to the provisions of subsection (b), any claimant who has performed labor or furnished

material in accordance with the contract documents in furtherance of the work provided in any contract for

which a payment bond has been given, and who has not been paid in full before the expiration of ninety (90)

days after the day on which the claimant performed the last of the labor or furnished the last of the materials for

which he claims payment, may bring an action on such payment bond to recover any amount due for the labor

or material, and may prosecute such action to final judgment and have execution on the judgment. The obligee

named in the bond need not be named a party to such action.

             (b)          Any claimant who has a direct contractual relationship with any subcontractor from whom the

contractor has not required a subcontractor payment bond under subsection (f) of Section 22.1-57, but who has

no contractual relationship, express or implied, with the contractor, may bring an action on the contractor’s

payment bond only if he has given written notice to such contractor within one hundred eighty (180) days from

the day on which the claimant performed the last of the labor or furnished the last of the materials for which he

claims payment, stating with substantial accuracy the amount claimed and the name of the person for whom the

work was performed or to whom the material was furnished. Any claimant who has a direct contractual

relationship with a subcontractor from whom the contractor has required a subcontractor payment bond under

subsection (f) of Section 22.1-57 but who has no contractual relationship, express or implied, with such

contractor, may bring an action on the subcontractor’s payment bond. Notice to the contractor shall be served

by registered or certified mail, postage prepaid, in an envelope addressed to such contractor at any place where

his office is regularly maintained for the transaction of business. Claims for sums withheld as retainages with

respect to labor performed or materials furnished, shall not be subject to the time limitations stated in this


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subsection.

             (c)          Any action on a payment bond must be brought within one year after the day on which the

person bringing such action last performed labor or last furnished or supplied materials.

             (d)          Any waiver of the right to sue on the payment bond required by this section shall be void unless

it is in writing, signed by the person whose right is waived, and executed after such person has performed labor

or furnished material in accordance with the contract documents.


Sec. 22.1-60. Alternative forms of security.

             (a)          In lieu of a bid, payment or performance bond, a bidder may furnish a certified check or cash

escrow in the face amount required for the bond.

             (b)          If approved by the City Attorney a bidder may furnish a personal bond, property bond, or bank

or savings institution’s letter of credit on certain designated funds in the face amount required for the bid,

payment or performance bond. Approval shall be granted only upon a determination that the alternative form of

security proffered affords protection to the City equivalent to a corporate surety’s bond.


Sec. 22.1-61. Competitive negotiation for non-professional services.

             (a)          Conditions for use:

             (1)          Upon a determination made in advance by the Director and set forth in writing that competitive

                          sealed bidding is either not practicable or not fiscally advantageous to the public, goods,

                          services, or insurance may be procured by competitive negotiation. The writing shall document

                          the basis for this determination.

             (2)          Upon a written determination made in advance by the City Manager that competitive negotiation

                          is either not practicable or not fiscally advantageous, insurance may be procured through a

                          licensed agent or broker selected in the following manner, the basis for this determination being




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                          documented in writing:

                          a.           Selection shall be made of two (2) or more offerors deemed to be fully qualified and best

                                       suited among those submitting proposals, on the basis of the factors involved in the

                                       request for proposals, including price if so stated in the request for proposals.

                                       Negotiations shall then be conducted with each of the offerors so selected. Price shall be

                                       considered, but need not be the sole determining factor. After negotiations have been

                                       conducted with each offeror so selected, the Director shall select the offeror which, in his

                                       opinion, has made the best proposal, and shall award the contract to that offeror. When

                                       the terms and conditions of multiple awards are so provided in the request for proposals,

                                       awards may be made to more than one offeror.

                          b.           Should the Director determine in writing and in his sole discretion that only one offeror is

                                       fully qualified, or that one offeror is clearly more highly qualified than the others under

                                       consideration, a contract may be negotiated and awarded to that offeror.

             (3)          Construction may be procured only by competitive sealed bidding. However, upon a

                          determination made in advance by the Director and set forth in writing by the Director that

                          competitive sealed bidding is either not practicable or not fiscally advantageous to the public,

                          competitive negotiation may be used in the following instances:

                          a.           For the alteration, repair, renovation or demolition of buildings when the contract is not

                                       expected to cost more than five hundred thousand dollars ($500,000.00); and

                          b.           For the construction of highways and any draining, dredging, excavation, grading or

                                       similar work upon real property.

             (b)          Request for proposals. A request for proposals shall be in writing and indicate in general terms

what is sought to be procured, specifying the factors which will be used in evaluating the proposal and



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containing or incorporating by reference the other applicable contractual terms and conditions, including any

unique capabilities or qualifications which will be required of the contractor. If appropriate, requests for

qualifications can be requested prior to the release of a request for proposals. In such case, only those vendors

who have demonstrated that they are qualified may submit a response to the request for proposals.

             (c)          Public notice. At least ten (10) days prior to the date set for receipt of proposals, public notice

shall be given by posting in a public area normally used for posting of public notices or by publication in a

newspaper of general circulation in the Richmond area, or both. In addition, proposals may be solicited directly

from potential contractors.

             (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 process of negotiation.

             (e)          Evaluation factors. The request for proposals shall state the relative importance of price and

other evaluation factors. One evaluation factor shall be minority participation, which may be satisfied either by

subcontracting for the contract in question or by good faith minority participation efforts; and it shall comprise

twenty (20) percent of the total evaluation.

             (f)          Discussion with responsible offerors and revision to proposals. As provided in the request for

proposals, discussion may be conducted with responsible offerors who submit proposals determined to be

reasonably susceptible of 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 proposals 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 disclosure of the identity of competing offerors or of any information derived

from proposals submitted by competing offerors.

             (g)          Award. Award shall be made to the responsible and responsive offeror whose proposal is



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determined in writing to be the most advantageous to the City taking into consideration price and the evaluation

factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The

contract file shall contain the basis on which the award is made.


Sec. 22.1-62. Reserved.


Sec. 22.1-63. Contracting for professional services by competitive negotiation.

             (a)          Conditions for use. Where the cost of professional services is not expected to exceed thirty

thousand dollars ($30,000.00) in the aggregate or for the sum of all phases of a contract or project, professional

services may be procured by direct negotiation with a contractor deemed by the using agency to be qualified.

Where the cost of professional services is expected to exceed thirty thousand dollars ($30,000.00) in the

aggregate or for the sum of all phases of a contract or project, professional services shall be procured by

competitive negotiation.

             (b)          Competitive negotiation; discussion and award. The Director shall engage in individual

discussions with two (2) or more offerors deemed fully qualified, responsible and suitable on the basis of initial

responses and with emphasis on professional competence, to provide the required services. Repetitive informal

interviews shall be permissible. The offerors shall be encouraged to elaborate on their qualifications and

performance data or staff expertise pertinent to the proposed project, as well as alternative concepts. The

request for proposals shall not, however, request that offerors furnish estimates of man-hours or cost for

services. At the discussion stage, the Director may discuss nonbinding estimates of total project costs,

including, but not limited to, life cycle costing and where appropriate, nonbinding estimates of price for

services. Proprietary information from competing offerors shall not be disclosed to the public or to competitors.

At the conclusion of discussion, outlined in this subsection, on the basis of evaluation factors published in the

request for proposals and all information developed in the selection process to this point, the Director shall




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select in the order of preference two (2) or more offerors whose professional qualifications and proposed

services are deemed most meritorious. Negotiations shall then be conducted, beginning with the offeror ranked

first. If a contract satisfactory and advantageous to the City can be negotiated at a price considered fair and

reasonable, the award shall be made to that offeror. Otherwise, negotiations with the offeror ranked first shall be

formally terminated and negotiations conducted with the offeror ranked second, and so on until such a contract

can be negotiated at a fair and reasonable price. Should the Director determine in writing and in his sole

discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified and

suitable than any others under consideration, a contract may be negotiated and awarded to that offeror. If

appropriate, requests for qualifications can be made prior to the release of a request for proposals. In such cases,

only those vendors who have demonstrated that they are qualified may submit a response to the request for

proposals.

             (c)          A contract for architectural or professional engineering services relating to construction projects

may be negotiated by the City for multiple projects provided (i) the projects require similar experience and

expertise, (ii) the nature of the projects is clearly identified in the request for proposals, and (iii) the contract

term is limited to one (1) year or when the cumulative total project fees reach the maximum cost authorized in

this paragraph, whichever occurs first. Such contract may be renewable for two (2) additional one-year terms at

the option of the City. Under such contract, (a) the fair and reasonable prices, as negotiated, shall be used in

determining the cost of each project performed, (b) the sum of all projects performed in one contract term shall

not exceed one million dollars ($1,000,000.00); and (c) the project fee of any single project shall not exceed

two hundred thousand dollars ($200,000). Any unused amounts from the first contract term shall not be carried

forward to the additional term. Competitive negotiations for such contracts may result in awards to more than

one offeror provided the request for proposals so states.


Sec. 22.1-63.1. Consideration of accessibility of contractors.


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             In any contract which is to be awarded through competitive negotiation, the request for proposals shall

contain as one factor for evaluation of proposals the degree of accessibility that the contractor will be able to

provide to the City officials who will be administering the contract.


Sec. 22.1-64. Only practical source procurement.

             Should the Director determine in writing, after conducting a good faith review of available sources, that

there is only one source practicably available for that which is to be procured, the Director may award a

contract to that source without competitive sealed bidding or competitive negotiation and may conduct

negotiations, as appropriate, as to price, delivery and terms. The writing shall document the basis for this

determination. The Director shall maintain a record of only practical source procurements that lists for each

procurement (i) a description that which is being procured, (ii) the contractor selected, (iii) the date on which

the contract was or will be awarded, (iv) the amount and type of the contract, and (v) the identification number

of the contract file.


Sec. 22.1-65. Emergency purchases.

(a)          In case of emergency, the Director may authorize or order the expenditure of funds for emergency

             purchases of supplies, materials, equipment and contractual services for the using agencies without

             competitive sealed bidding or competitive negotiation; however, such procurement shall be made with

             such competition as is practicable under the circumstances. A written determination of the basis for the

             emergency shall be included in the contract file.

(b)          An emergency shall be deemed to exist when the Director determines that (1) a breakdown or failure of

             machinery or other equipment has occurred; (2) a curtailment, diminution or termination of an essential

             service is threatened; or (3) a dangerous condition has developed and that a procurement without

             recourse to competitive sealed bidding or competitive negotiation is (1) needed to prevent loss of life or


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             property; (2) essential to protect and preserve the interests of the City and its inhabitants; (3) needed to

             maintain the proper functioning of the City government; or (4) needed to maintain the efficient

             rendering of public services.

(c)          Whenever, because of scarcity, the Department of Public Utilities is curtailed in excess of fifteen

             percent (15%) of the quantity of natural gas which it is otherwise entitled to receive from its supplier

             pursuant to the terms of a contract approved by the City Council, the Director of Public Utilities is

             authorized, during the period of curtailment, to make purchases permitted by regulations of the Federal

             Energy Regulatory Commission or other governmental authorities having jurisdiction of such additional

             and emergency supplies of natural gas as may be available, without recourse to competitive bidding.

             The Director of Public Utilities shall advise the City Manager and the Director of Procurement Services

             of the fact of such purchase.


Sec. 22.1-66. Small purchases.

             Any contract not exceeding the amount specified in Section 2.2-4303(G) of the Code of Virginia (1950),

as amended, as the ceiling for the use of small purchase procedures may be made in accordance with small

purchase procedures established by the Director; provided, however, that contract requirements shall not be

artificially divided so as to constitute a small purchase under this section. Insofar as it is practical, no less than

three (3) businesses shall be solicited to submit quotations, at least one of which shall be a local minority

business enterprise. The efforts to solicit a local minority business enterprise shall be recorded and maintained

as a public record. Award shall be made to the business offering the lowest acceptable quotation. The names of

the businesses submitting a quotation, and the dates and amounts of each quotation, shall be recorded and

maintained as a public record.


Sec. 22.1-67. Exemptions.



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             (a)          The requirements of this chapter shall not apply to the following:

             (1)          Purchases by the Department of Social Services for the acquisition of motor vehicles for sale or

                          transfer to Temporary Assistance to Needy Families (TANF) recipients.

             (2)          Procurement transactions involving the expenditure of federal assistance or contract funds, the

                          receipt of which is conditioned upon compliance with mandatory requirements in federal laws or

                          regulations not in conformance with the provisions of this chapter, where the Director has

                          determined in a writing, which states the specific provision of this chapter in conflict with the

                          conditions of the grant or contract, that acceptance of the grant or contract funds under the

                          applicable conditions is in the public interest and where the City complies with such federal

                          requirements.

             (3)          The purchase of goods or services that are produced or performed by:

                          a.           Persons, or in schools or workshops, under the supervision of the Virginia Department

                                       for the Blind and Vision Impaired; or

                          b.           Nonprofit sheltered workshops or other nonprofit organizations that offer transitional or

                                       supported employment services serving the handicapped.

             (4)          The purchase of legal services or expert witnesses or other services associated with litigation or

                          regulatory proceedings, including the printing of legal briefs.

             (5)          The purchase of insurance or electric utility services if purchased through an association of

                          which the City is a member if the association was formed and is maintained for the purpose of

                          promoting the interest and welfare of and developing close relationships with public bodies

                          similar to the City, provided such association has procured the insurance or electric utility

                          services by use of competitive principles and provided that the Director has made a

                          determination in advance after reasonable notice to the public and set forth in writing that



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                          competitive sealed bidding and competitive negotiation are not fiscally advantageous to the

                          public and the basis for this determination.

             (6)          Any purchase for the administration of public assistance and social services programs as defined

                          in Section 63.2-100 of the Code of Virginia (1950), as amended, any purchase for a community

                          services board as defined in Section 37.1-1 of the Code of Virginia (1950), as amended, and any

                          purchase of services under (i) the Comprehensive Services Act for At-Risk Youth and Families

                          (Sections 2.2-5200 through 2.2-5214 of the Code of Virginia (1950), as amended) or (ii) the

                          Virginia Juvenile Community Crime Control Act (Sections 16.1-309.2 through 16.1-309.10 of

                          the Code of Virginia (1950), as amended) for goods or personal services for direct use by the

                          recipients of such programs if the procurement is made for an individual recipient; however,

                          contracts for the bulk procurement of goods or services for the use of recipients shall not be

                          exempted from the requirements of this chapter.

             (7)          Contracts for or purchases of equipment, services, the printing of ballots or statements of results,

                          or other materials essential to the conduct of a general, primary or special election.

             (8)          Purchases from the Virginia Correctional Enterprises, from the State of Virginia Department of

                          General Services Division of Purchases and Supply and from the Virginia Department of

                          Transportation.

             (9)          Purchases for special police work when the Chief of Police certifies to the Director that items are

                          needed for undercover police operations.

             (10)         Scientific instruments and equipment, medicines and drugs, legal and scientific books and

                          periodicals, and professional books and periodicals.

             (11)         Manuscripts, maps, charts, sheet music, phonograph records, compact video or audio discs,

                          video or audio cassette tapes, books, pamphlets and periodicals.



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              (12)        Such perishable articles as may be designated in the rules and regulations established by

                          ordinance.

             (13)         Association dues and membership in professional associations for City agencies and employees.

             (14)         Expenses for City-sponsored (i) conference-related room deposits, (ii) hotel and motel lodging,

                          (iii) conference registration, (iv) banquets and (v) catering.

             (15)         Advertising in publications.

             (16)         Sculptures, paintings or other works of art.

             (17)         Purchases on existing contracts established by professional organizations that the City may use

                          by virtue of its membership in such organizations.

              (18)        Purchases on existing contracts established by other public bodies.

              (19)        Services purchased by the Richmond Retirement System related to the management, purchase, or

                          sale of investments authorized by this section, including but not limited to actuarial services,

                          when governed by the standard of care set forth in Section 51.1-803 of the Code of Virginia

                          (1950), as amended.

             (b)          Notwithstanding the provisions of subsection (a) above, the requirements of Section 22.1-70.1

concerning prompt payment of bills and Article X concerning ethics in public contracting shall apply to any

procurement transaction listed in this section.

             (c)          The Director of Procurement Services may delegate to the Director of Public Utilities the

authority to purchase natural gas and to arrange for the transportation of natural gas without requiring that

sealed bids be received pursuant to invitations extended as set out in Section 22.1-42 of this chapter.



Sec. 22.1-68. City contracts; human rights provisions.

             (a)          Definitions. As used in this section:



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             Affirmative action employment program means a positive program designed to insure that a good faith

effort will be made by those persons contracting to do business with the City to employ qualified applicants

without regard to race, color, sex, religion, national origin, marital status, age or handicap. Such program, to be

developed by the City Manager and approved by the City Council, and monitored by the Division of Minority

Business Enterprise of the Department of Economic Development, shall include, where applicable but shall not

be limited to, the following: recruitment and recruitment advertising, selection and selection criteria, upgrading,

promotion, demotion or transfer, lay-off or termination, rates of pay or other forms of compensation, other

terms or conditions of employment and selection for training, including apprenticeship; and shall include

realistic and attainable goals, methodology and timetable for implementation of the program.

             Bidder means any person seeking to be awarded a contract by the City.

             Contract means any contract awarded by the City whereby the City is committed to expend or does

expend its funds in return for work, labor, services or any combination of the preceding or any lease, lease by

way of concession, concession agreement, permit or permit agreement whereby the City leases, grants or

demises property of the City, or otherwise grants a right or privilege to occupy or use property of the City.

             Contractor or vendor means any person who has entered into a contract with the City to provide work,

labor or services valued at ten thousand dollars ($10,000.00) or more and may include subcontractors on such a

contract.

             Director shall mean the Director of Procurement Services or a duly authorized representative appointed

to administer and enforce the provisions of this section.

             Labor organization means any organization which exists for the purpose in whole or in part of collective

bargaining or of dealing with employers on behalf of employees concerning grievances, terms or conditions of

employment, or of other mutual aid or protection in relation to employment.

             Person or persons includes one or more individuals whether male or female, partnerships, corporations,



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associations, labor organizations, mutual companies, joint-stock companies, trustees, unincorporated

organizations, trustees, trustees in bankruptcy, receivers and fiduciaries.

             Public funds means any funds derived from any governmental body or agency.

             Subcontractor means any person that supplies any of the work, labor, services, or any combination of

the preceding to a contractor in connection with a contract. Provided, however, that no person shall be deemed a

subcontractor unless the value of such person’s work, labor, services or any combination of the preceding

supplied to the contractor is ten thousand dollars ($10,000.00) or more.

             (b)          Bidding requirements:

             (1)          All notices to prospective bidders published on behalf of the City for any contract to be entered

                          into by the City under which the City will expend ten thousand dollars ($10,000.00) or more of

                          public funds shall include as a part of the contract specifications the condition that all bidders

                          will be required to comply with the Richmond Human Rights Ordinance regarding equal

                          employment opportunity.

             (2)          Each bidder shall file in duplicate with the Department of Procurement Services as a part of the

                          bid documents:

                          a.           Copies for the preceding two (2) years of the regular equal employment opportunity

                                       reports (EEO-1) which the bidder has been required to submit to the Equal Employment

                                       Opportunity Commission. If the bidder is not required to file EEO-1 forms with the Equal

                                       Employment Opportunity Commission, he or she shall file this information on a HRC-2

                                       form to be provided by the Department of Procurement Services.

                          b.           An employment profile that includes at least ten percent (10%) minority employees. The

                                       requirement of this section shall apply to all entities that employ fifteen (15) or more

                                       individuals on their payrolls. For construction contracts only, the term minority shall



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                                       mean a minority group that has been subjected to legally mandated racial segregation in

                                       Richmond, as defined in Section 22.1-144. The employment profile for construction

                                       contracts shall apply to professional, executive, managerial, technical and sales positions

                                       and shall not be satisfied by minority employment solely at lower skill and pay levels.

                                       The requirement of this section may be satisfied for construction contracts by employing

                                       minorities for the duration of the contract awarded. The Deputy Director of Economic

                                       Development for Minority Business Enterprise shall be authorized to promulgate rules

                                       and regulations to implement the above requirements, which rules and regulations shall

                                       allow the granting of waivers by the City Manager in those individual situations when a

                                       bidder can prove to the satisfaction of the City Manager that the requirements herein set

                                       forth cannot be achieved. The reasons for granting any such waivers shall be reported in

                                       writing to City Council by the City Manager.

                          c.           A bidder who has previously submitted the EEO-1 form or the employment profile form

                                       and has a current compliance number on file with the Office of Minority Business

                                       Enterprise, need only submit evidence of such compliance when submitting a bid.

             (3)          Following receipt by the Division of Minority Business Enterprise of the Department of

                          Economic Development of the employment information submitted by the bidder, the Deputy

                          Director of Economic Development for Minority Business Enterprise or his designee shall

                          review and determine whether the successful bidder has complied with this section, and shall

                          submit a determination and recommendation thereon to the City Manager and the Director of

                          Procurement Services. The Deputy Director of Economic Development for Minority Business

                          Enterprise or his designee shall also issue a certificate of compliance to those bidders in

                          compliance with this section. Such certificate of compliance shall be good for a two-year period



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                          and may be submitted by a bidder as evidence of compliance for other procurements of the City

                          that occur within such two-year period. At the request of any bidder, the Deputy Director of

                          Economic Development for Minority Business Enterprise shall provide advice and assistance

                          regarding methods for adopting and implementing an affirmative action employment program or

                          regarding any other aspect of compliance with this section.

             (c)          Contract requirements. Any contract entered into by the City under which the City expends ten

thousand dollars ($10,000.00) or more of public funds shall comply with all applicable City human rights

provisions, including those set forth in this section, and shall include the following provisions for equal

employment opportunity:

             (1)          The contractor shall not discriminate against any employee or applicant for employment in its

                          employment practices on the basis of race, sex, color, religion, national origin, marital status, age

                          or disability except where religion, sex, national origin, age or disability is a bona fide

                          occupational qualification reasonably necessary to the normal operation of the contractor.

             (2)          The contractor shall implement an affirmative action employment program as defined in

                          subsection (a).

             (3)          The contractor shall during the life of any contract include in all solicitations or advertisements

                          for employees placed by or on behalf of the contractor the words, “Equal Opportunity

                          Employer.”

             (4)          The contractor shall during the life of any contract notify each labor organization or

                          representative of employees with which such contractor is bound by a collective bargaining

                          agreement or other contract of the contractor’s obligations pursuant to this section.

             (5)          The contractor shall during the life of any contract submit to the Department of Procurement

                          Services upon request, but at least annually, a copy of the regular equal employment opportunity



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                          reports (EEO-1) which the contractor is required to submit to the Equal Employment

                          Opportunity Commission. If the contractor is not required to file EEO-1 forms with the Equal

                          Employment Opportunity Commission, he or she shall file this information on a form to be

                          provided by the Director.

             (6)          The contractor shall during the life of any contract post in conspicuous places, available to

                          employees and applicants for employment, notices setting forth the provisions of this section and

                          notices required to be posted by Title VII of the Civil Rights Act of 1964, as amended.

             (7)          Notices, advertisements and solicitations placed in accordance with federal law, rule or

                          regulation shall be deemed sufficient for the purpose of meeting the requirements of this

                          subsection.

             (8)          The contractor shall include the provisions of subsections (c)(1) through (7) above in every

                          subcontract or purchase order with persons meeting the definitions of subcontractor or vendor

                          contained in subsection (a) so that such provisions will be binding upon each subcontractor or

                          vendor.

             (9)          During the life of any such contract, the Deputy Director of Economic Development for Minority

                          Business Enterprise shall monitor the performance of any contractor or subcontractor who has a

                          contract with the City with respect to the provisions of subsection (c)(1) through (8) above. If

                          the Deputy Director of Economic Development for Minority Business Enterprise determines that

                          a violation of any provision of subsection (c)(1) through (8) above has occurred, the Deputy

                          Director of Economic Development for Minority Business Enterprise shall report such finding to

                          the City Manager and the director of the department involved.

             (d)          Other inquiries. Upon the receipt of the Director’s determination and recommendation or report

of the Deputy Director of Economic Development for Minority Business Enterprise as provided in subsection



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(b)(3) or subsection (c)(9) of this section, the City Manager may make such other inquiry as may be appropriate

and may accept or reject any bid and may terminate or suspend or not renew, in whole or in part, as appropriate,

the contractual relationship with the contractor. Further provided, however, that the Manager may defer

temporarily a suspension or termination if the Manager finds that such suspension or termination may disrupt or

curtail a vital public service, or would otherwise not be in the best interest of the City, in which case the City

Manager shall indicate a certain date when the relationship will be suspended or terminated, or when the

practice complained about will be remedied.


Sec. 22.1-69. Obstruction of practices required under this chapter.

             It shall be unlawful for any person:

                          (1)          Directly or indirectly to cause or coerce, or attempt to cause or coerce, any person to

                                       disregard any practice required to be performed under this chapter;

                          (2)          Directly or indirectly to engage in economic reprisal or intimidation, or to harm or

                                       threaten harm to any person or to retaliate or to interfere with any person, because such

                                       person is willing to or has complied with any practice required to be performed under this

                                       chapter or encouraged others to comply with any provision in this chapter or has

                                       exercised or attempted to exercise any right conferred in this chapter;

                          (3)          Directly or indirectly to cause or coerce or attempt to cause or coerce another person to

                                       engage in economic reprisal or intimidation or to harm or to threaten harm to any person,

                                       or to retaliate against or to interfere with any person because such person is willing to or

                                       has complied with any practice required to be performed under this chapter or

                                       encouraged others to comply with any provision in this chapter or has exercised or

                                       attempted to exercise any right conferred in this chapter.

Sec. 22.1-70. Cancellation of solicitations and rejection of bids or proposals; waiver of informalities.


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              (a)         The Director may cancel an invitation for bids, a request for proposals, or any other solicitation

and may reject any or all bids or proposals in whole or in part when the Director determines that it is in the best

interest of the City to do so. The reasons for cancellation or rejection shall be made part of the contract file.

The Director shall not cancel or reject an invitation for bids, a request for proposals, or any other solicitation,

bid or proposal pursuant to this section solely to avoid awarding a contract to a particular responsive and

responsible bidder or offeror.

             (b)          The Director may waive informalities in bids.


Sec. 22.1-71. Prompt payment of bills.

             (a)          Every City agency that acquires goods or services, or conducts any other type of contractual

business with a nongovernmental, privately owned enterprise, shall promptly pay for the completed delivered

goods or services by the required payment date. The required payment date shall be either: (i) the date on which

payment is due under the terms of the contract for the provision of the goods or services; or (ii) if a date is not

established by contract, not more than forty-five (45) days after goods or services are received or not more than

forty-five (45) days after the invoice is rendered, whichever is later.

             (b)          Separate payment dates may be specified for contracts under which goods or services are

provided in a series of partial executions or deliveries to the extent that the contract provides for separate

payment for partial execution or delivery.

             (c)          Within twenty (20) days after the receipt of the invoice or goods or services, the agency shall

notify the supplier of any defect or impropriety that would prevent payment by the payment date.

             (d)          Unless otherwise provided under the terms of the contract for the provision of goods or services,

every agency that fails to pay by the payment date shall pay any finance charges assessed by the supplier that

shall not exceed one percent (1%) per month.



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             (e)          The provisions of this section shall not apply to the late payment provisions in any public utility

tariffs or public utility negotiated contracts.


Sec. 22.1-72. Permitted contracts with certain religious organizations; purpose; limitations.

             (a)          The General Assembly has indicated its intent, in accordance with the Personal Responsibility

and Work Opportunity Reconciliation Act of 1996, P.L. 104-193, to authorize the City to enter into contracts

with faith-based organizations for the purposes described in this section on the same basis as any other

nongovernmental source without impairing the religious character of such organization, and without

diminishing the religious freedom of the beneficiaries of assistance provided under this section.

             (b)          For the purposes of this section, “faith-based organization” means a religious organization that

is or applies to be a contractor to provide goods or services for programs funded by the block grant provided

pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, P.L. 104-193.

             (c)          The City, in procuring goods or services, or in making disbursements pursuant to this section,

shall not (1) discriminate against a faith-based organization on the basis of the organization’s religious character

or (2) impose conditions that (i) restrict the religious character of the faith-based organization, except as

provided in subsection (f), or (ii) impair, diminish, or discourage the exercise of religious freedom by the

recipients of such goods, services, or disbursements.

             (d)          The City shall ensure that all invitations for bids, requests for proposals, contracts, and purchase

orders prominently display a nondiscrimination statement indicating that the City does not discriminate against

faith-based organizations.

             (e)          A faith-based organization contracting with the City (1) shall not discriminate against any

recipient of goods, services, or disbursements made pursuant to a contract authorized by this section on the

basis of the recipient’s religion, religious belief, refusal to participate in a religious practice, or on the basis of

race, age, color, gender or national origin and (2) shall be subject to the same rules as other organizations that


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contract with the City to account for the use of the funds provided; however, if the faith-based organization

segregates public funds into separate accounts, only the accounts and programs funded with public funds shall

be subject to audit by the City. Nothing in clause (2) shall be construed to supercede or otherwise override any

other applicable state law.

             (f)          Consistent with the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,

P.L. 104-193, funds provided for expenditure pursuant to contracts with the City shall not be spent for sectarian

worship, instruction, or proselytizing; however, this prohibition shall not apply to expenditures pursuant to

contracts, if any, for the services of chaplains.

             (g)          Nothing in this section shall be construed as barring or prohibiting a faith-based organization

from any opportunity to make a bid or proposal or contract on the grounds that the faith-based organization has

exercised the right, as expressed in 42 U.S.C. (§ 2000e-1 et seq.), to employ persons of a particular religion.

             (h)          If an individual, who applies for or receives goods, services, or disbursements provided pursuant

to a contract between the City and a faith-based organization, objects to the religious character of the faith-

based organization from which the individual receives or would receive the goods, services, or disbursements,

the City shall offer the individual, within a reasonable period of time after the date of his objection, access to

equivalent goods, services, or disbursements from an alternative provider.

             The City shall provide to each individual who applies for or receives goods, services, or disbursements

provided pursuant to a contract between the City and a faith-based organization a notice in bold face type that

states: “Neither the City’s selection of a charitable or faith-based provider of services nor the expenditure of

funds under this contract is an endorsement of the provider’s charitable or religious character, practices, or

expression. No provider of services may discriminate against you on the basis of religion, a religious belief, or

your refusal to actively participate in a religious practice. If you object to a particular provider because of its

religious character, you may request assignment to a different provider. If you believe that your rights have



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been violated, please discuss the complaint with your provider or notify the appropriate person as indicated in

this form.”

Secs. 22.1-73--22.1-75. Reserved.


                                              ARTICLE IV. DISPOSAL OF SURPLUS PROPERTY

Sec. 22.1-76. Reports of unused property.

             All using agencies shall submit to the Director, at such time and in such form as prescribed, reports

showing stocks of all supplies, materials and equipment which are no longer used or which have become

obsolete, worn out or scrapped. Agencies having surplus, obsolete or unused supplies, materials or equipment

shall declare such property surplus to the Director by completing a declaration of surplus property form

including quantity, description, location and other details required by the form.


Sec. 22.1-77. Transfer of stock to other using agencies.

             The Director shall have the sole authority to transfer surplus stock to other using agencies.


Sec. 22.1-78. Sale or exchange.

             The Director shall have the authority to sell all supplies, materials and equipment that he determines in

writing to be unsuitable for public use. Further, the Director shall have the authority to exchange such supplies,

material and equipment for or to trade in such supplies material and equipment on new supplies, material or

equipment. When property is sold in lieu of being traded in on the purchase of new supplies, materials or

equipment, the amount received shall be credited to the appropriate City account. Agencies shall list all

possible trade-in items on their replacement purchase requisitions.

22.1-78.1. Donation.

             (a)          If the Director finds in writing that it is impractical to sell or exchange supplies, materials,

equipment or vehicles that are unsuitable for public use as provided in Section 22.1-78, he shall have the


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authority to donate such supplies, materials, equipment or vehicles to other public bodies or to non-profit

organizations.

             (b)          The Librarian of the Richmond Public Library shall have the authority to transfer City-owned

books that he determines to be surplus to private non-profit organizations that will dispose of such books

through a public book sale and return the proceeds to the City for the purchase of additional books or materials

for the Richmond Public Library.

Sec. 22.1-79. Special restrictions.

             (a)          Whenever items are surplus, obsolete or unused in one agency, they shall be transferred to

another City agency, sold, only by the Director, or traded in on the purchase of needed supplies, materials or

equipment.

             (b)          Surplus property not transferred to a City agency or traded in shall be sold by competitive

bidding or public auction whenever practicable. When determined in writing to be impractical or when no bids

or offers are received, the Director may sell surplus property on a negotiated basis. Receipts shall be credited to

the appropriate income account.

             (c)          Employees and dependents of employees of the disposing agency and selling agency may

purchase City surplus property at uniform prices available to the general public in accordance with the State and

Local Government Conflict of Interest Act (Section 2.2-3100 et seq. of the Code of Virginia (1950), as

amended).


Secs. 22.1-80--22.1-90. Reserved.

                                                                       ARTICLE V. DEBARMENT

Sec. 22.1-91. Authority to debar or suspend.

             After reasonable notice to the person involved and reasonable opportunity for that person to be heard,

the City Manager after consulting with the City Attorney is authorized to debar a person for cause from


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consideration for award of contracts. The debarment shall be for a period of not more than three (3) years. After

consultation with the City Attorney, the City Manager is authorized to suspend a person from consideration for

award of contracts if there is probable cause to believe that the person has engaged in any activity which might

lead to debarment. The suspension shall be for a period not exceeding three (3) months. The causes for

debarment include:

             (1)          Conviction for commission of a criminal offense as an incident to obtaining or attempting to

                          obtain a public or private contract or subcontract, or in the performance of such contract or

                          subcontract;

             (2)          Conviction under state and federal statutes of embezzlement, theft, forgery, bribery, falsification

                          or destruction of records, receiving stolen property, or any other offense indicating a lack of

                          business integrity or business honesty which currently, seriously, and directly affects

                          responsibility as a City contractor;

             (3)          Conviction under state or federal antitrust statutes arising out of the submission of bids or

                          proposals;

             (4)          Violation of contract provisions, as set forth below, of a character which is regarded by the City

                          Manager to be so serious as to justify debarment action:

                          a.           Deliberate failure without good cause to perform in accordance with specifications or

                                       within the time limit provided in the contract; or

                          b.           A recent record of failure to perform or of unsatisfactory performance in accordance with

                                       the terms of one or more contracts; provided that failure to perform or unsatisfactory

                                       performance caused by acts beyond the control of the contractor shall not be considered to be a

                                       basis for debarment; and

             (5)          Any other cause that the City Manager determines to be so serious and compelling as to affect



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                          responsibility as a City contractor, including debarment by another governmental entity for any

                          cause in this chapter and for violation of the ethical standards set forth in this chapter.


Sec. 22.1-92. Decision to debar or suspend.

             The City Manager or designee shall issue a written decision to debar or suspend. The decision shall state

the reasons for the action taken and inform the debarred or suspended person involved of such person’s rights

concerning judicial or administrative review.


Sec. 22.1-93. Notice of decision.

             A copy of the decision required by Section 22.1-92 shall be mailed or otherwise furnished immediately

to the debarred or suspended person.


Sec. 22.1-94. Finality of decision.

             A decision under Section 22.1-92 shall be final and conclusive, unless the debarred or suspended person

appeals the decision as provided in Section 22.1-112 for administrative appeals, or in the alternative by

instituting legal action as provided in Section 22.1-113.


Secs. 22.1-95--22.1-105. Reserved.


                                       ARTICLE VI. APPEALS AND REMEDIES FOR PROTESTS

Sec. 22.1-106. Ineligibility of bidder, offeror or contractor.

             (a)          Any bidder, offeror or contractor refused permission to participate or disqualified from

participating in public contracts shall be notified in writing. Such notice shall state the reasons for the action

taken. This decision shall be final unless the bidder, offeror or contractor appeals the decision as provided in

Section 22.1-112 for administrative appeals, or, in the alternative, by instituting legal action as provided in

Section 22.1-113.



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             (b)          If, upon appeal, it is determined that the action taken was not an honest exercise of discretion,

but rather was arbitrary or capricious or not in accordance with the Constitution of Virginia or any applicable

state law or regulation, then the sole relief shall be restoration of eligibility.


Sec. 22.1-107. Appeal of denial of withdrawal of bid.

             (a)          A decision denying withdrawal of a bid under the provisions of Section 22.1-48 on withdrawal

of bid due to error shall be final and conclusive unless the bidder appeals the decision as provided in Section

22.1-112 for administrative appeals or, in the alternative, by instituting legal action as provided in Section 22.1-

113.

             (b)          If no bid bond was posted, a bidder refused withdrawal of a bid under the provisions of Section

22.1-48, prior to appealing, shall deliver to the Director a certified check or cash bond in the amount of the

difference between the bid sought to be withdrawn and the next lowest bid. Such security shall be released only

upon a final determination that the bidder was entitled to withdraw the bid.

             (c)          If, upon appeal, it is determined that the decision refusing withdrawal of the bid was not an

honest exercise of discretion, but rather was arbitrary or capricious or not in accordance with the Constitution of

Virginia, any applicable state law or regulation, or the terms and conditions of the invitation for bids, the sole

relief shall be withdrawal of the bid.


Sec. 22.1-107.1. Determination of non-responsibility.

             (a)          Following public opening and announcement of bids received on an invitation for bids, the City

shall evaluate the bids in accordance with Section 22.1-49. At the same time, the City shall determine whether

the apparent low bidder is responsible. If the City so determines, then it may proceed with an award in

accordance with Section 22.1-50. If the City determines that the apparent low bidder is not responsible, it shall

proceed as follows:



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             (1)          Prior to the issuance of a written determination of nonresponsibility, the City shall (i) notify the

                          apparent low bidder in writing of the results of the evaluation, (ii) disclose the factual support for

                          the determination, and (iii) allow the apparent low bidder an opportunity to inspect any

                          documents which relate to the determination, if so requested by the bidder within five (5)

                          business days after receipt of the notice.

             (2)          Within ten (10) business days after receipt of the notice, the bidder may submit rebuttal

                          information challenging the evaluation. The City shall issue its written determination of

                          nonresponsibility based on all information in the possession of the City, including any rebuttal

                          information, within five (5) business days of the date the City received such rebuttal information.

                          At the same time, the City shall notify the bidder in writing of its determination.

             (3)          Such notice shall state the basis for the determination, which shall be final unless the bidder

                          appeals the decision as provided in Section 22.1-112 for administrative appeals, or in the

                          alternative by instituting legal action as provided in Section 22.1-113.

             (4)          The provisions of the subsection shall not apply to procurements involving the prequalification

                          of bidders and the rights of any potential bidders under such prequalification to appeal a decision

                          that such bidders are not responsible.

             (b)          If, upon appeal, it is determined that the decision of the City was not an honest exercise of

discretion, but rather was arbitrary or capricious or not in accordance with the Constitution of Virginia, any

applicable state law or regulation, or the terms and conditions of the invitation for bids, and the award of the

contract in question has not been made, the sole relief shall be a finding that the bidder is a responsible bidder

for the contract in question or a directed award as provided in Section 112(a) or both. If it is determined that the

decision of the City was not an honest exercise of discretion, but rather was arbitrary or capricious or not in

accordance with the Constitution of Virginia, any applicable state law or regulation, or the terms and conditions



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of the invitation for bids, and an award of the contract has been made, the relief shall be as set forth in Section

22.1-108(b).

             (c)          A bidder contesting a determination that he is not a responsible bidder for a particular contract

shall proceed under this section, and may not protest the award or proposed award under Section 22.1-108.

             (d)          Nothing contained in this section shall be construed to require the City, when procuring by

competitive negotiation, to furnish a statement of the reasons why a particular proposal was not deemed to be

the most advantageous.


Sec. 22.1-108. Protest of award or decision to award.

             (a)          Any bidder or offeror may protest the award or decision to award a contract by submitting such

protest in writing to the Director, no later than ten (10) calendar days after the award or the announcement of

the decision to award, whichever occurs first. The Director shall not be required to consider protests not

properly addressed and delivered to the Director within the ten (10) calendar day period. Any potential bidder

or offeror on a contract negotiated on a sole source or emergency basis who desires to protest the award or

decision to award such contract shall submit such protest in the same manner no later than ten (10) calendar

days after the notice of such contract. However, if the protest of any actual or potential bidder or offeror

depends in whole or in part upon information contained in public records pertaining to the procurement

transaction which are subject to inspection under Section 22.1-38, then the time within which the protest must

be submitted shall expire ten (10) calendar days after those records are available for inspection by such bidder

or offeror under Section 22.1-38, or at such later time as provided in this section. No protest shall lie for a claim

that the selected bidder or offeror is not a responsible bidder or offeror. The written protest shall include the

basis for the protest and the relief sought. The Director shall issue a decision in writing within ten (10) calendar

days stating the reasons for the action taken. This decision shall be final unless the bidder or offeror appeals as

provided in Section 22.1-112 for administrative appeals, or, in the alternative, by instituting legal action as


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provided in Section 22.1-113. Nothing in this subsection shall be construed to permit a bidder or offeror to

challenge the validity of the terms or conditions of the invitation for bids or request for proposals.

             (b)          If, prior to an award, it is determined that the decision to award was not an honest exercise of

discretion, but rather was arbitrary or capricious or not in accordance with the Constitution of Virginia,

applicable state law, or the terms and conditions of the invitation for bids, then the sole relief shall be a finding

to that effect. The Director shall cancel the proposed award or revise it to comply with the law. If, after an

award, it is determined that an award of a contract was not an honest exercise of discretion, but rather was

arbitrary or capricious or not in accordance with the Constitution of Virginia, applicable state law, or the terms

and conditions of the invitation for bids, then the sole relief shall be as hereinafter provided. Where the award

has been made, but performance has not begun, the performance of the contract may be enjoined. Where the

award has been made and performance has begun, the City Manager may declare the contract void upon a

finding that this action is in the best interest of the public. Where a contract is declared void, the performing

contractor shall be compensated for the cost of performance up to the time of such declaration. In no event shall

the performing contractor be entitled to lost profits.

             (c)          If the Procurement Review Board established by Section 22.1-112(c)(1) determines, after a

hearing held following reasonable notice to all bidders or offerors, that there is probable cause to believe that a

decision to award was based on fraud or corruption or on an act in violation of Article X of this chapter, the

Procurement Review Board may enjoin the award of the contract to a particular bidder or offeror.



Sec. 22.1-109. Effect of appeal upon contract.

             Pending final determination of a protest or appeal, the validity of a contract awarded and accepted in

good faith in accordance with this chapter shall not be affected by the fact that a protest or appeal has been

filed.



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Sec. 22.1-110. Stay of award during protest.

             An award need not be delayed for the period allowed a bidder or offeror to protest, but in the event of a

timely protest as provided in Section 22.1-108, or the filing of a timely legal action as provided in Section 22.1-

113, no further action to award the contract will be taken unless there is a written determination that proceeding

without delay is necessary to protect the public interest or unless the bid or offer would expire.


Sec. 22.1-111. Contractual disputes.

             (a)          Contractual claims, whether for money or other relief, shall be submitted in writing to the

Director no later than sixty (60) calendar days after final payment; however, written notice of the contractor’s

intention to file such claim shall have been given at the time of the occurrence or beginning of the work upon

which the claim is based. Nothing herein shall preclude a contract from requiring submission of an invoice for

final payment within a certain time after completion and acceptance of the work or acceptance of the goods.

Pendency of claims shall not delay payment of amounts agreed due in the final payment.

             (b)          A procedure for consideration of contractual claims shall be included in each contract. Such

procedure, which may be incorporated into the contract by reference, shall establish a time limit for a final

decision in writing by the Director.

             (c)          A contractor may not invoke administrative procedures as provided in Section 22.1-112 or

institute legal action as provided in Section 22.1-113 prior to receipt of the decision on the claim, unless the

Director fails to render such decision within the time specified in the contract.

             (d)          The decision of the Director shall be final and conclusive unless the contractor appeals within

thirty (30) calendar days of the date of the final decision on the claim by the Director as provided in Section

22.1-112 for administrative appeals, or, in the alternative, by instituting legal action as provided in Section

22.1-113.



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             (e)          Nothing in this section shall be construed to authorize or permit any contractor pursuing, by any

available procedure, an appeal of a contractual claim or dispute to cease performance of a contract while such

claim or dispute is pending.



Sec. 22.1-112. Administrative appeals procedure.

             (a)          An administrative appeals procedure is hereby established for hearing protests of a decision to

award or an award, appeals from refusals to allow withdrawal of bids, appeals from disqualifications and

determinations of nonresponsibility, appeals from debarments or suspensions, and appeals from decisions on

disputes arising during the performance of a contract, or any of these.

             (b)          Initial administrative appeal:

             (1)          Any act or decision of the City listed in subsection (a) may be appealed or protested by writing

                          to the Director within ten (10) calendar days of the act or decision at issue. The writing must

                          indicate the basis for the protest and the relief sought.

             (2)          The Director must send a written response to the appeal or protest within ten (10) calendar days

                          of his receipt of the appeal or protest.

             (3)          If the decision of the Director is not satisfactory to the offeror, bidder or contractor, the offeror,

                          bidder or contractor has ten (10) calendar days from the receipt of the Director’s decision to

                          request, in writing, a hearing before the Procurement Review Board. Such letter of request shall

                          be addressed and delivered to the office of the Director of Procurement Services.

             (c)          Hearing stage:

             (1)          A Procurement Review Board shall be established, to be comprised of three (3) disinterested

                          individuals, each appointed by the Director for one (1) year terms. At his discretion, the Director

                          may reappoint members for additional one (1) year terms. The members of the Procurement



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                          Review Board shall not be employees of the City.

             (2)          From the receipt of the letter requesting a hearing, the office of the Director of Procurement

                          Services has ten (10) calendar days to inform the offeror, bidder or contractor of the date, time

                          and location of the hearing. Notice of the hearing must be sent at least ten (10) calendar days

                          prior to the hearing date.

             (3)          At the hearing before the Procurement Review Board there shall be an opportunity for both the

                          offeror, bidder or contractor and the City to present pertinent information.

             (4)          The Procurement Review Board shall issue a written decision containing findings of fact. The

                          findings of fact shall be final and conclusive and shall not be set aside unless the same are (i)

                          fraudulent, arbitrary or capricious; (ii) so grossly erroneous as to imply bad faith; or (iii) in the

                          case of denial of prequalification of a potential construction bidder, such findings were not based

                          upon the criteria for denial of prequalification set forth in Section 22.1-41.1. No determination

                          on an issue of law shall be final if appropriate legal action pursuant to Section 22.1-113 is

                          instituted in a timely manner.

             (d)          Any party to the administrative appeals procedure, including the City, shall be entitled to

institute judicial review if such action is brought within thirty (30) calendar days of receipt of the written

decision of the Procurement Review Board.

Sec. 22.1-113. Legal actions.

             (a)          A bidder or offeror, actual or prospective, who is refused permission or disqualified from

participating in bidding or competitive negotiations, or who is determined not to be a responsible bidder or

offeror for a particular contract, may bring an action in the Circuit Court of the City of Richmond challenging

that decision, which shall be reversed only if the petitioner establishes that the decision was not an honest

exercise of discretion, but rather was arbitrary or capricious or not in accordance with the Constitution of



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Virginia, any applicable state law or regulation, or the terms or conditions of the invitation for bids or request

for proposals, or, in the case of denial of prequalification of a potential construction bidder, that the decision to

deny prequalification was not based upon the criteria for denial of prequalification set forth in subsection (g) of

Section 22.1-41.1. In the event the apparent low bidder, having been previously determined by the City to be

not responsible, is found by the court to be a responsible bidder, the court may direct the City to award the

contract, forthwith, to such bidder in accordance with the requirements of this section and the invitation for

bids. The provisions of subsection (b) of Section 22.1-108 shall apply to any such award directed by the court.

             (b)          A bidder denied withdrawal of a bid under Section 22.1-48 may bring an action in the Circuit

Court of the City of Richmond challenging that decision, which shall be reversed only if the bidder establishes

that the decision of the City was not an honest exercise of discretion, but rather was arbitrary or capricious or

not in accordance with the Constitution of Virginia, any applicable state law or regulation, or the terms and

conditions of the invitation for bids.

             (c)          A bidder, offeror or contractor may bring an action in the Circuit Court of the City of Richmond

challenging a proposed award or the award of a contract, which shall be reversed only if the petitioner

establishes that the proposed award or the award is not an honest exercise of discretion, but rather is arbitrary,

capricious or not in accordance with the Constitution of Virginia, applicable state law or regulation, or the terms

and conditions of the invitation for bids or request for proposals.

             (d)          If injunctive relief is granted, the court, upon request of the City, shall require the posting of

reasonable security to protect the City.

             (e)          A contractor may bring an action involving a contract dispute with the City in the Circuit Court

of the City of Richmond.

             (f)          A bidder, offeror or contractor need not utilize administrative procedures as provided in Section

22.1-113, but if those procedures are invoked by the bidder, offeror or contractor, the procedures shall be



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exhausted prior to instituting legal action concerning the same procurement transaction unless the City Council

adopts a resolution providing otherwise.

             (g)          Nothing herein shall be construed to prevent the City from instituting legal action against a

contractor.


Sec. 22.1-114. Alternative dispute resolution.

             The City may enter into agreements to submit disputes arising from contracts entered into pursuant to

this chapter to arbitration and to utilize mediation and other alternative dispute resolution procedures; however,

such procedures entered into by the City shall be nonbinding.


Secs. 22.1-115--22.1-125. Reserved.


                   ARTICLE VII. ASSISTANCE TO SMALL AND DISADVANTAGED BUSINESSES


Sec. 22.1-126. Establishment of programs to expand participation; participation of small businesses and
businesses owned by women and minorities.

             The Division of Minority Business Enterprise of the Department of Economic Development may

establish programs consistent with all provisions of this chapter to facilitate the participation of small

businesses and businesses owned by women and minorities in procurement transactions. The City shall be

further authorized to establish minority enterprise goals and objectives programs. Such programs shall be in

writing, and may include cooperation with the State Office of Minority Business Enterprise, the United States

Small Business Administration and other public or private agencies.



Sec. 22.1-127. Discrimination prohibited.

             In the solicitation or awarding of contracts, the City shall not discriminate because of race, religion,

color, sex, or national origin of the bidder or offeror.



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Secs. 22.1-128--22.1-135. Reserved.

                                            ARTICLE VIII. MINORITY BUSINESS UTILIZATION PLAN


Sec. 22.1-136. Covered contracts.

The City, in awarding contracts to its contractors, including suppliers, for the sale and furnishing of supplies,

materials and equipment, for providing contractual services, and for writing and furnishing policies of insurance

and surety bonds in which the City is the principal insured or party for whom such bond is written and for

which policy of insurance or bond the premium charged is billed to the City, shall strive to obtain a minimum of

twenty percent (20%) of same from minority business enterprises in the annual aggregate expenditure for such

contracts and services.


Sec. 22.1-137. Rules and regulations.

             The Director, in cooperation with the Division of Minority Business Enterprise of the Department of

Economic Development, shall be authorized to promulgate rules and regulations to implement this article.


Sec. 22.1-138. Article remedial; effective through June 30, 2002.

             (a)          This article is remedial and is enacted for the purpose of promoting wider participation by

minority business enterprises in public projects, either as general contractors or subcontractors.

             (b)          This article shall expire and terminate as of the last moment of June 30, 2002.


Secs. 22.1-139--22.1-140. Reserved.

               ARTICLE IX. MINORITY PARTICIPATION IN CONSTRUCTION CONTRACTING


Sec. 22.1-141. Official findings on minority participation in construction contracting.

             (a)          Prime construction contractors. The City finds and determines that the proportion of minority



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construction contractors in the Richmond standard metropolitan statistical area is significantly below the

proportion of minorities in the general population in that area.

             (b)          Construction subcontractors. The City finds and determines that the proportion of minority

subcontractors who have been engaged by prime contractors of the City to participate in governmental

construction contracts with the City is significantly below both the proportion of minority subcontractors

available within the Richmond standard metropolitan statistical area and the proportion of minorities in the

general population in that area. The size of this difference varies among different trades within the construction

industry.

             (c)          Causes for disparities. The City finds and determines that the causes for these disparities are

many and complex, and they vary between various construction contracting specialties. They include the

historical consequences of the legally mandated racial segregation which prevailed in Richmond for many

years, a longstanding lack of general educational and economic opportunities for racial minorities, the absence

of opportunities for entry into various contracting specialties at anything other than the lowest levels, the

absence of opportunities for advancement to higher levels, and some instances of discrimination on the basis of

race in the private sector. The disparities are statistically significant and support an inference that minorities

have been subjected to discriminatory exclusion both as individuals and as subcontractors. Regardless of cause,

it is imperative to the public good that the disparities be redressed and corrected.

             (d)          Consequences of disparities. The present consequences of the disparities include a lack of

competition in City procurement; higher costs paid for procurement as a result of this lack of competition;

increased unemployment; a higher crime rate; aggravated instability of families in the minority community; a

work force which is significantly below its skill potential; the failure of the City to achieve its true economic

potential; and an aberration of the free enterprise economy.


Sec. 22.1-142. Official policy in minority construction contracting.


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             It shall be the official policy of the City of Richmond to increase the number of minorities who

participate meaningfully in all City construction contracts. To this end, the City shall use good faith efforts and

shall encourage good faith efforts by all parties who engage in governmental construction contracting with the

City to the following ends:

             (1)          To stimulate the creation and development of minority contractors and subcontractors, and to

                          advance in reasonable and responsible ways, and deliberately and consistently over the long

                          term, their entrance into and participation in the construction industry.

             (2)          To advance in reasonable and responsible ways, and deliberately and consistently over the long

                          term, the participation of minority individuals at higher skill and responsibility levels within

                          non-minority firms engaged in construction contracting and subcontracting.

             (3)          To encourage voluntary efforts by the construction industry to increase the participation of

                          minority individuals and businesses in the industry.

             All actions taken by the City in construction contract procurement shall be consistent with this policy.


Sec. 22.1-143. Official goals in minority construction contracting.

             (a)          It shall be the official goal of the City to increase the dollar value of all City construction

contracts awarded to minority contractors and subcontractors to the highest level that is reasonably achievable

for any particular field of contracting; and it shall also be the goal of the City to have ten percent (10%)

minority employment by all construction firms contracting with the City. This employment goal shall

specifically apply to executive and managerial positions and shall not be satisfied by minority employment

solely at the lowest skill and pay levels.

             (b)          It is acknowledged that the availability of minority contractors and subcontractors may be lower

in some construction trades than in others, and that said non-availability may impact on the degree to which



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contractors can reasonably comply with this policy. Therefore, current availability of minority contractors and

subcontractors, in addition to other factors, shall be taken into consideration by the City Manager in the

implementation and enforcement of this policy.


Sec. 22.1-144. Definitions.

             Minority, in the context of construction contracts, means a minority that has been subjected to legally

mandated racial segregation in Richmond.

             Good faith minority participation efforts means the sum total of efforts by a particular business to

provide equitable participation of minority employees and subcontractors. For past efforts, this sum total shall

be comprised of the record of minority participation over the past five (5) years either through employment,

retention, and promotion; or through subcontracting or joint ventures in the private sector; or through a

combination thereof. For future efforts, it shall be comprised of such efforts which are proposed to allow

equitable participation of minority employees and subcontractors.


Sec. 22.1-145. Debarment of construction contractors for improper activities.

             Any construction contractor or bidder, or any principal thereof or person associated therewith, found to

have engaged in substantial and intentional misrepresentation concerning either good faith minority

participation efforts or minority ownership status shall be debarred from any City contracting for a period of

two (2) years. This debarment shall also extend to any successor firm substantially controlled or managed,

whether directly or indirectly, by any officers of or persons associated with the debarred bidder or contractor.

This determination shall be made by the City Manager or a designee thereof, and any debarment shall be

reported in writing to the City Council.


Sec. 22.1-146. Racial discrimination in construction contract bonding and insurance.

             In construction contracting, if any person is found by the City Manager or a designee to have engaged in


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discrimination on the basis of race in the granting of bonds or insurance to person who contract with or desire to

contract with the City, or to persons who receive subcontracts or desire to receive a subcontract in connection

with a City contract, the person shall be deemed unqualified to submit a bond or insurance for any City

construction contract unless and until the City Manager or designee determines that the discrimination has been

purged and that adequate assurances have been made that it will not recur. Any determination by the City

Manager of a violation of this section shall be reported in writing to Council.


Sec. 22.1-147. Renewal of existing construction contracts.

             No construction contract shall be renewed unless the contractor has first reported to the City Manager or

a designee on the good faith minority participation efforts which have been made during the contract period;

and the City Manager or designee verifies that those reported efforts have in fact been made and are reasonable

under the circumstances.


Sec. 22.1-148. City Manager to report and to propose goals.

             The City Manager shall at the conclusion of each fiscal year report to City Council on the number and

proportion of minority construction contractors and subcontractors located in the Richmond standard

metropolitan statistical area; and on the level of minority participation in construction contracts that have been

awarded by each department of City government during that fiscal year, both as to prime contractors and as to

subcontractors.


Secs. 22.1-149, 22.1-150. Reserved.


                                                ARTICLE X. ETHICS IN PUBLIC CONTRACTING

Sec. 22.1-151. Purpose.




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             The provisions of this article supplement, but shall not supersede, other provisions of law including, but

not limited to, the State and Local Government Conflict of Interests Act (Section 2.2-3100 et seq. of the Code

of Virginia (1950), as amended), the Virginia Governmental Frauds Act (Section 18.2-498.1 et seq. of the Code

of Virginia (1950), as amended) and Articles 2 (Section 18.2-438 et seq.) and 3 (Section 18.2-446 et seq.) of

Chapter 10 of Title 18.2 of the Code of Virginia (1950), as amended.

             The provisions of this article apply notwithstanding the fact that the conduct described may not

constitute a violation of the State and Local Government Conflict of Interests Act.


Sec. 22.1-152. Definitions.

             As used in this article:

             Immediate family means a spouse, children, parents, brothers and sisters, and any other person living in

the same household as the employee.

             Official responsibility means administrative or operating authority, whether immediate or final, to

initiate, approve, disapprove or otherwise affect a procurement transaction, or any claim resulting therefrom.

             Pecuniary interest arising from the procurement means a personal interest in a contract as defined in the

State and Local Government Conflict of Interests Act (Section 2.2-3100 et seq. of the Code of Virginia (1950),

as amended).

             Procurement transaction means all functions that pertain to the obtaining of any goods, services or

construction, including description of requirements, selection and solicitation of sources, preparation and award

of contract, and all phases of contract administration.

             Public employee means any person employed by the City, including elected officials or appointed

members of the City Council.


Sec. 22.1-153. Proscribed participation by public employees in procurement transaction.



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             Except as may be specifically allowed by subdivisions A. 2. and A. 3. of section 2.2-3112 of the Code of

Virginia (1950), as amended, no public employee having official responsibility for a procurement transaction

shall participate in that transaction on behalf of the City when the employee knows that:

             (1)          The employee is contemporaneously employed by a bidder, offeror or contractor involved in the

                          procurement transaction; or

             (2)          The employee, the employee’s partner, or any member of the employee’s immediate family

                          holds a position with a bidder, offeror or contractor such as an officer, director, trustee, partner,

                          or the like or is employed in a capacity involving personal and substantial participation in the

                          procurement transaction, or owns or controls an interest of more than five (5) percent; or

             (3)          The employee, the employee’s partner, or any member of the employee’s immediate family has a

                          pecuniary interest arising from the procurement transaction; or

             (4)          The employee, the employee’s partner, or any member of the employee’s immediate family is

                          negotiating, or has an arrangement concerning, prospective employment with a bidder, offeror or

                          contractor.


Sec. 22.1-154. Solicitation or acceptance of gifts.

             No public employee having official responsibility for a procurement transaction shall solicit, demand,

accept, or agree to accept from a bidder, offeror, contractor or subcontractor any payment, loan, subscription,

advance, deposit of money, services or anything of more than nominal or minimal value, present or promised,

unless consideration of substantially equal or greater value is exchanged. The City may recover the value of

anything conveyed in violation of this section.


Sec. 22.1-155. Disclosure of subsequent employment.




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             No public employee or former public employee having official responsibility for procurement

transactions shall accept employment with any bidder, offeror or contractor with whom the employee or former

employee dealt in an official capacity concerning procurement transactions for a period of one (1) year from the

cessation of employment by the City unless the employee or former employee provides written notification to

the City Manager prior to commencement of employment by that bidder, offeror or contractor.


Sec. 22.1-156. Gifts by bidders, offerors, contractors or subcontractors.

             No bidder, offeror, contractor or subcontractor shall confer upon any public employee having official

responsibility for a procurement transaction any payment, loan, subscription, advance, deposit of money,

services or anything or more than nominal value, present or promised, unless consideration of substantially

equal or greater value is exchanged.


Sec. 22.1-157. Kickbacks.

             (a)          No contractor or subcontractor shall demand or receive from any of his suppliers or his

subcontractors, as an inducement for the award of a subcontract or order, any payment, loan, subscription,

advance, deposit of money, services or anything, present or promised, unless consideration of substantially

equal or greater value is exchanged.

             (b)          No subcontractor or supplier shall make, or offer to make, kickbacks as described in this section.

             (c)          No person shall demand or receive any payment, loan, subscription, advance, deposit of money,

services or anything of value in return for an agreement not to compete on a public contract.

             (d)          If a subcontractor or supplier makes a kickback or other prohibited payment as described in this

section, the amount thereof shall be conclusively presumed to have been included in the price of the subcontract

or order and ultimately borne by the City and will be recoverable from both the maker and recipient. Recovery

from one offending party shall not preclude recovery from other offending parties.



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Sec. 22.1-157.1. Participation in bid preparation; limitation on submitting bid for same procurement.

             (a)          No person who, for compensation, prepares an invitation for bids or request for proposals for or

on behalf of the City shall (i) submit a bid or proposal for that procurement or any portion thereof or (ii)

disclose to any bidder or offeror information

concerning the procurement which is not available to the public. However, the City Manager may permit such

person to submit a bid or proposal of that procurement or any portion thereof if the City determines that the

exclusion of such person would limit the number of potential qualified bidders or offerors in a manner contrary

to the best interest of the City. This determination shall be stated in writing and kept as part of the

procurement’s records.

             (b)          For the purpose of this section only, the term “prepares” shall include but not be limited to,

serving as a director or deputy director of the agency which his initiated the procurement, serving as the

Director of Procurement Services after the Department of Procurement Services has received information on an

agency’s intent to procure, serving as the procurement manager for the agency which has initiated the

procurement, serving as the procurement officer in charge of the procurement, assisting in the development of

specifications for invitations for bids or requests for proposals, attending an evaluation committee meeting that

is closed to the public, voting on or scoring a bid or proposal, or any other participation in the procurement

process which could lead to unfair advantage.

             (c)          The determination of disqualification under this section shall be made by the City Manager.

             (d)          A contractor submitting a bid or proposal may appeal a determination of disqualification under

this section by following the administrative appeals procedure as provided in Section 22.1-112 or, in the

alternative, institute legal action as provided in Section 22.1-113.


Sec. 22.1-158. Purchase of building materials, etc., from architect or engineer prohibited.



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             (a)          No building materials, supplies or equipment for any building or structure constructed by or for

the City shall be sold by or purchased from any person employed as an independent contractor by the City to

furnish architectural or engineering services, but not construction, for such building or structure, or from any

partnership, association or corporation in which such architect or engineer has a personal interest as defined in

Section 2.2-3101 of the Code of Virginia (1950), as amended.

             (b)          No building materials, supplies or equipment for any building or structure constructed by or for

the City shall be sold by or purchased from any person who has provided or is currently providing design

services specifying a sole source for such materials, supplies or equipment to be used in such building or

structure to the independent contractor employed by the City to furnish architectural or engineering services in

which such person has a personal interest as defined in Section 2.2-3101 of the Code of Virginia (1950), as

amended.

             (c)          The provisions of subsections (a) and (b) shall not apply in cases of emergency.


Sec. 22.1-159. Certification of compliance required; penalty for false statements.

             (a)          The City may require public employees having official responsibility for procurement

transactions in which they participated to annually submit for such transactions a written certification that they

complied with the provisions of this article.

             (b)          Any public employee required to submit a certification as provided in subsection (a) of this

section who knowingly makes a false statement in such certification shall be punished as provided in Section

22.1-161.


Sec. 22.1-160. Misrepresentations prohibited.

             No public employee having official responsibility for a procurement transaction shall knowingly falsify,

conceal, or misrepresent a material fact; knowingly make any false, fictitious or fraudulent statements or



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representations; or make or use any false writing or document knowing the same to contain any false, fictitious

or fraudulent statement or entry.


Sec. 22.1-161. Penalty for violation.

             Willful violation of any provision of this article shall constitute a Class 1 misdemeanor. Upon

conviction, any public employee, in addition to any other fine or penalty provided by law, shall forfeit his/her

employment.




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                                                                                                                     SECTION THREE
                                                                                                       Purchasing Policies
Policy No. 1:                          Minority Utilization ....................................................................... III-3

Policy No. 2:                          User Training ................................................................................. III-4

Policy No. 3:                          Human Rights Compliance (HRC-2 Form) ................................... III-5

Policy No. 4:                          Accessibility of Contractors........................................................... III-6

Policy No. 5:                          Purchasing of Recycled Materials ................................................. III-7

Policy No. 6:                          Processing Time............................................................................. III-8

Policy No. 7:                          Intra-city Purchases........................................................................ III-9
                                        - Procedures

Policy No. 8:                          Petty Cash Purchases ..................................................................... III-11
                                        - Procedures

Policy No. 9:                          Lease-Purchase; Financing Arrangements..................................... III-14

Policy No. 10:                         Funds Available Certification ........................................................ III-15

Policy No. 11:                         Hiring Temporary Employees (For 30-180 calendar days) ........... III-16
                                        - Procedures

Policy No. 12:                         Reserved ........................................................................................ III-18

Policy No. 13:                         Not-Encumbered Invoice/DP-13 (Direct Purchase) ...................... III-19
                                        - Procedures

Policy No. 14:                         Departmental Purchase Request (PD)............................................ III-22
                                        - Procedures

Policy No. 15:                         Requisition Purchases (RX)........................................................... III-25
                                        - Procedures

Policy No. 16:                         Rush Purchases: Maintenance, Repair, and Operating Supplies ... III-29
                                       for Over $2,500 but Under $30,000
                                        - Procedures

Policy No. 17:                         Emergency Purchases .................................................................... III-32
                                        - Procedures

Policy No. 18:                         Printing and Duplicating................................................................ III-34
                                        - Procedures for Print Shop and Copy Center
                                         - Procedures for Printing Purchases from Commercial Firms


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Policy No. 19:                         Purchase of Insurance .................................................................... III-38

Policy No. 20:                         Value Analysis............................................................................... III-39
                                        - Procedures

Policy No. 21:                         Standard Specifications.................................................................. III-41
                                        - Procedures

Policy No. 22:                         Only Practical Source Procurement ............................................... III-43
                                        - Procedures

Policy No. 23:                         Conflict of Interest ......................................................................... III-45

Policy No. 24:                         Emergency Coverage by Procurement Services Officials ............. III-49

Policy No. 25:                         Interaction with Vendors ............................................................... III-50
                                        - Procedures for Meeting with Suppliers,
                                                Professionals and Contractors

Policy No. 26:                         Advertising by Vendors ................................................................. III-51

Policy No. 27:                         Receipt and Inspection of Supplies, Materials, and Equipment .... III-52
                                        - Procedures for Receipt and Inspection
                                        - Procedures for Special Handling (Liquidated Damages)
                                        - Procedures for Receivers Reports
                                        - Procedures for Partial/Final Payment Report: Construction
                                        - Procedures for Performance Evaluation of Contractors and Vendors

Policy No. 28:                         Vendor Invoices............................................................................. III-61

Policy No. 29:                         Competitive Bids ........................................................................... III-62

Policy No. 30:                         Bid Opening................................................................................... III-63
                                        - Procedures

Policy No. 31:                         Bidder Evaluation/Lowest Responsive, Responsible Bidder......... III-66

Policy No. 32:                         Tie Bids.......................................................................................... III-68

Policy No. 33:                         Contracts: Professional and Non-Professional Services ................ III-69
                                        - Procedures for Contracts Up To $30,000
                                        - Procedures for Contracts Over $30,000

Policy No. 34:                         Construction Contracts .................................................................. III-76
                                        - Procedures for Request for Qualifications
                                        - Procedures for Invitation For Bid

Policy No. 35:                         Service/Supply Contracts............................................................... III-84

Policy No. 36:                         Change-Orders, Supplements, and Addenda ................................. III-86



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Policy No. 37:                         Contract Administration ................................................................ III-88

Policy No. 38:                         Surplus Property ............................................................................ III-89
                                        - Procedures for Declaration of Surplus Property
                                        - Procedures for Trade-In of Surplus Equipment on New Equipment
                                        - Procedures for Transfer of Property From Surplus
                                        - Procedures for Sale of Surplus, Salvage, or Obsolete Property

Policy No. 39:                         Sale of Abandoned, Confiscated, or Lost Property........................ III-93
                                        - Procedures

Policy No. 40:                         Federal/State Surplus Property ...................................................... III-94
                                        - Procedures

Policy No. 41:                         Contract Purchases From Existing City Contracts ........................ III-96
                                        - Procedures

Policy No. 42:                          Procurement Review Board ......................................................... III-99




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NO. 1                     MINORITY UTILIZATION


It is the policy of Procurement Services to encourage minority participation in procurement of
supplies, materials, construction projects, and services.

Under the definition provided in the Procurement Code, the term “minority” includes citizens of
the United States who are Blacks, Hispanics, Asians, Indians, Eskimos or Aleuts.


POLICY:

1.              All Departmental Purchase Requests should include at least one quote from a minority
                vendor. The MBE office will, upon request, provide sources of minority firms.

2.              All Requests for Proposals and Requests for Qualifications must include Minority
                Utilization as a criterion for judging such proposals. The weight assigned to this
                criterion shall be 20 of the 100 available points. In construction projects, an additional
                10 points will be assigned for demonstrated past good-faith efforts in sub-contracting to
                minority firms and the firm's minority hiring practices.

3.              Procurement staff will attend trade shows and other functions that support/foster
                minority utilization of supplies, materials, construction projects, and services.

4.              Notice of all solicitations shall be sent to the State Office of Minority Business
                Enterprise, the Metropolitan Business League, the Virginia Regional Minority
                Development Council, and other groups that support and foster the development of
                minority-owned firms.

5.              Procurement Officers, in cooperation with the MBE office, shall actively solicit
                minority vendors.




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NO. 2                     USER TRAINING


It is the policy of Procurement Services to provide training to the City’s user departments. The
training session will be offered at least twice per calendar year, usually during the months of
March and September.

The session will offer training on these Policies and Procedures, Advantage Financial, the
Procurement Code and any other pertinent information.

Specific training classes on subjects such as RFP development, specification writing,
construction contracting, etc. may be offered at various dates through City University.

A survey shall be distributed at each session to measure the effectiveness of the training and to
gain suggestions for future sessions.




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NO. 3                     HUMAN RIGHTS COMPLIANCE (HRC-2 FORM)


Pursuant to Title VI and Title VII of the Civil Rights Acts of 1964 and section 22.1-68 of the
Procurement Code, all bidders and offerors are required to complete the Human Rights
Commission Employment Profile Form HRC-2, and/or provide an EEO-1 report on the firm's
employment profile.


POLICY:

1.           All offerors and bidders having fifteen (15) or more employees must have a minimum of
             10% minority participation in its work force. For construction contracts, this goal cannot
             be satisfied by minority employment solely at the lower skill and pay levels.

2.           This policy does not apply to procurements under $10,000.

3.           All bidders and offerors must accurately complete, sign and submit the Employment
             Profile (HRC-2) Form.

4.           A proposal or bid that does not conform with this policy will be declared non-responsive
             and will not be reviewed for consideration unless the vendor has requested and received a
             waiver from the City Manager.

Equal Employment Opportunity Clause:

"Prospective bidders and offerors must affirm, and shall certify by signing this bid /proposal
document, that he/she and/or his/her company fully complies with Resolution No. 74-R8-11
adopted February 25, 1974, and Title VI and Title VII of the Civil Rights Act of 1964 and all
regulations promulgated there under. IMPORTANT. All bidders and offerors are required to
comply with section 22.1-68 of the Code of the City of Richmond (1993), as amended,
concerning human rights, which requires all bidders and offerors to have ten percent (10%)
minority employees if the company has fifteen (15) or more employees.”




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NO. 4                     ACCESSIBILITY OF CONTRACTORS


Section 22.1-63.1 of the Procurement Code requires that consideration be given to the degree of
accessibility offered to the City by contractors in any contract awarded through competitive
negotiation, and section 22.1-51 of the Procurement Code requires that consideration be given to
the degree of accessibility offered to the City by contractors for contracts awarded through
competitive sealed bidding when bids are tied.


Contractor Accessibility Clause:

"It is understood and agreed that in the event of equally qualified (and responsive) bidders for
an award, the award shall be granted to the bidder with the greatest degree of accessibility to
the City officials responsible for administering the contract.”

1.           In case of equally qualified bidders in a sealed bid competition, the contract shall be
             awarded to the contractor offering the greatest degree of accessibility to the City officials
             responsible for administering the contract.

             Refer to Purchasing Policy No. 32 for selection of a vendor in a tie-bid situation.

2.           In a contract to be awarded through competitive negotiation, the degree of contractors'
             accessibility to administering officials will be considered as one of the criteria of
             evaluation for all Requests for Proposals or Requests for Qualifications.

3.           In cases where both vendors are in the same geographic market, a coin toss shall
             determine the award of the bid.

             Note: This evaluation factor will not be utilized for solicitations funded from
             state and/or federal grants that prohibit its use.




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NO. 5                     PURCHASING OF RECYCLED MATERIALS


Section 22.1-4 of the Procurement Code authorizes the Department of Procurement Services to
purchase recycled (paper) materials.


POLICY:

1. In determining the award of any contract for paper used by City Agencies, Procurement
   Services shall award the project to the lowest responsible and responsive bidder offering
   recycled paper of a quality suitable for the purpose intended, so long as the bid price is not
   more than ten percent (10%) greater than the bid price of the lowest responsive and
   responsible bidder offering a product that does not qualify based on the definition stated
   below:

Definition of Recycled Paper:

Recycled paper means any paper having a total weight consisting of not less than fifty percent
(50%) recovered materials, as that term is defined for purposes of purchasing paper and paper
products in 40 C.F.R. § 247.3 (2001), as amended. Richmond City Code § 22.1-3 (1993).




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NO. 6                     PROCESSING TIME


It is the policy of Procurement Services to process user requests in the most efficient and
expedient manner possible. The following schedule is a guideline indicating the standard time
usually required to process a contract or purchase order (PC, PD, PG) against a user request.
However, the actual processing time may be extended due to factors outside of the direct control
of Procurement Services.


PG’s & PD’s (under $5,000)                                                           1 week

PD’s ($5,000 - $30,000)                                                              2 – 3 weeks

RX’s (informal bid – over $30,000 - $49,999.99)                                      4 weeks

Formal Bids (over $50,000)                                                           10 weeks

Construction Bids                                                                    10 – 12 weeks

RFQ’s                                                                                4 weeks

RFP’s                                                                                16 weeks




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NO. 7                     INTRA-CITY PURCHASES


City Agencies can furnish services on a reimbursable basis to other City Agencies.

All surplus sales or transfers of commodities from one City Agency to another must follow
Purchasing Policy No. 38 for proper and adequate accountability.


POLICY:

1.           City Agencies are encouraged to use the services of other City Agencies to the fullest
             extent feasible.

2.           Charges are made for services furnished when such services are not included as a part of
             the Agency's regular program and budget.

3.           Intra-city Invoices are utilized for payment of intra-city services performed.

4.           Agencies may mutually agree not to charge for services rendered to each other.

PROCEDURES:

DOCUMENTS:                             Intra-city Invoice Form

WHEN USED:                             For all services provided by one City Agency to another except where
                                       special procedures have been provided, such as Printing Service.

1.           Buying Agency:

             (a) staff initiates request according to internal procedures, providing complete details for
                 the need;

             (b) appropriate staff approves the request by signing it and providing the account number
                 to be billed.

2.           Selling Agency:

             (a) performs requested service ;

             (b) bills Buying Agency directly through Finance on an Intra-city Invoice for services
                 rendered;

             (c) distributes Intra-city Invoice as stated on the form.

3.           Finance records transfer of funds between the buying and selling Agencies.


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4.           Buying Agency reviews the invoice for accuracy and reports any discrepancies to
             Finance in writing, along with correction requested.

             Note: Intra-city payments are made by the Department of Finance without any
                   pre-audit by the Agency being charged. If an error is made, the Agency
                   must prepare and send to Finance a memo explaining the error and
                   correction requested.




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NO. 8                     PETTY CASH PURCHASES


Use of petty cash funds is limited to small incidental purchases and is an essential element of an
efficient purchasing program. The privilege to use petty cash shall not be considered a
substitute for regular purchasing procedures.


POLICY:

1.           Individual purchases from petty cash funds are limited to $150 each.

             For emergency petty cash purchases, the limit is $250 per purchase, subject to prior
             approval from the Agency head.

             “An emergency shall be deemed to exist when the Director determines that (1) a
             breakdown or failure of machinery or other equipment has occurred; (2) a curtailment,
             diminution or termination of an essential service is threatened; or (3) a dangerous
             condition has developed and that a procurement without recourse to competitive sealed
             bidding or competitive negotiation is (1) needed to prevent loss of life or property; (2)
             essential to protect and preserve the interests of the City and its inhabitants; (3) needed
             to maintain the proper functioning of the City government; or (4) needed to maintain the
             efficient rendering of public services.” Richmond City Code § 22.1-65(b) (1993).

2.           Items available on an existing supply contract may not be purchased through petty cash
             funds unless the contractor is unable to provide the goods in a timely manner.

3.           Purchases that are essentially a unit shall not be divided for the purposes of evading these
             policies.

4.           Any person making unauthorized purchases or exceeding petty cash limits may be held
             personally liable for the cost or excess cost.

5.           Petty cash reimbursements will be reviewed by Finance and may be audited by
             Procurement Services periodically.

6.           Travel expenses are processed through the Travel Authorization Form, as established by
             the Department of Finance, and shall not be submitted for petty cash reimbursement.

7.           Funds for petty cash accounts may be provided by the Department of Finance upon
             request of the Agency.

8.           Any established petty cash custodian may honor requests from various City Agencies that
             do not maintain a petty cash fund. A current list of custodians may be obtained from the
             Department of Finance.



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PROCEDURES:

DOCUMENTS:                             Petty Cash Purchase Authorization Form, Vendor's Sales Ticket or
                                       Receipt of Purchase

WHEN USED:                             For purchases in a minor emergency when items cannot be included on
                                       regular purchase requisition. The limit for a petty cash purchase is $150.
                                       Limit for exceptional emergency purchase (through petty cash) is $250
                                       (refer to Glossary for definition of "Emergency Purchases"), subject to
                                       prior approval by the Agency head.

1.           Agency:

             (a)                       prepares petty cash purchase authorization form/slip, following the
                                       Agency's internal policy and procedures, prior to making the purchase;

             (b)                       makes the purchase and obtains the original sales receipt containing the
                                       following information: vendor/company name, date, item (description),
                                       quantity and cost;

             (c)                       submits the original sales receipt with petty cash purchase authorization to
                                       Agency petty cash fund custodian for reimbursement. Petty cash
                                       custodians must cancel receipts submitted for petty cash reimbursement.
                                       More than one item may be purchased provided the original sales receipt
                                       is submitted.

2.           An Agency whose reimbursement is rejected by Finance for insufficient funds or invalid
             account codes will be immediately suspended from future reimbursement by Finance
             until reinstatement is authorized.

3.           Agency's Petty Cash Fund Custodian:

             (a)                       examines sales ticket (original only) and petty cash purchase authorization
                                       and, if in order, pays the amount shown and has the employee sign a
                                       receipt;

             (b)                       accumulates originals of petty cash sales tickets, bills, and petty cash
                                       purchase authorization and reviews for completeness, accuracy, and
                                       propriety;

             Note: It is the custodian's responsibility to determine appropriateness of any
                   petty cash reimbursement.

             (c)                       prepares a Petty Cash Reimbursement Summary and attaches originals of
                                       supporting bills or sales tickets and petty cash purchase authorization;



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             (d)                       submits Petty Cash Reimbursement Summary with attached
                                       documentation to Finance's Tax Collection Office for immediate payment.

4.           Department of Finance:

             (a)                       reviews documents to ensure compliance with the Petty Cash Policy prior
                                       to reimbursement to the custodian or individual;

             (b)                       maintains a record of all Petty Cash Reimbursement Summary forms
                                       submitted for payment.

5.           Procurement Services may periodically audit records of petty cash transactions to ensure
             compliance with this procedure and related policy. The Director of Procurement
             Services may suspend petty cash purchase privileges if an Agency is found in violation of
             the petty cash policy.

             Note: The City is tax-exempt and is not charged sales tax on most purchases;
                   however, Agencies are not exempt from sales tax on the purchase of boxed
                   lunches or other meals provided for Agency functions.               Contact
                   Procurement Services prior to petty cash purchases to obtain a tax-exempt
                   certificate. A tax-exempt certificate can be filed with a vendor that is used
                   frequently.




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NO. 9                     LEASE-PURCHASE; FINANCING ARRANGEMENTS
As a requisite for entering into any contract for the procurement of goods, services, insurance,
construction, or other purchase to be made pursuant to the provisions of the Procurement Code,
the approval of the Director of Finance shall be obtained prior to agreeing to the terms of any
contract that will involve lease-purchase, installment payments, payment of interest on deferred
balances or any other means of financing a deferred balance of the cost of purchase of such
goods or services.

The Agency must obtain the written approval of the Director of Finance (and the City Council, if
applicable) prior to submitting the purchase request to Procurement Services for processing.




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NO. 10                    FUNDS AVAILABLE CERTIFICATION


It is the policy of Procurement Services to encourage City Agencies to be fiscally responsible
when procuring goods and services. The availability of funds will be confirmed for any and all
purchases handled through Procurement Services. Funds must also be certified by the Director
of Finance in accordance with City of Richmond Charter Section 6.20 “Certification of Funds;
Penalties for Violation.”

POLICY:

1.           Agency must identify the account(s) that will be used to purchase goods or services.

2.           Procurement Services will use Advantage Financial to ensure that the funds are available
             and to obtain appropriate authorization. Funds will be encumbered in cases of contract
             purchases, and pre-encumbered in cases of requisitions.

3.           If an Agency purchases goods or services for use over a period of two (2) (or more) fiscal
             years, only the funds necessary to cover the current fiscal year are encumbered. At the
             beginning of the next fiscal year, additional funds must be encumbered to cover that
             fiscal year.

4.           An exception to item 3 occurs when the City must obligate funds for an entire specific
             project. In this case, funds are encumbered for the entire contract amount.




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NO. 11                    HIRING TEMPORARY EMPLOYEES
                          (FOR 30-180 CALENDAR DAYS)


The hiring of temporary employees for thirty (30) to one hundred eighty (180) calendar days
may be done through temporary employment firms.


POLICY:

1.           The requesting Agency must write a memo to the Director of Human Resources, giving
             justification for the need for additional help and for hiring temporary employees for more
             than 30 days or at a cost in excess of $5,000.

2.           It is not necessary to route the contract through Procurement Services when individuals
             are temporarily hired to fill a vacant City position, and placed on the City payroll. The
             contract will be between the individual, the Agency Director, and the Director of Human
             Resources. The contract employee must go through the hiring process prescribed by
             Human Resources. This does not apply to individuals who are hired as consultants
             through the competitive negotiation or the informal personnel services process.


             Note: An annual contract for temporary personnel that the Agency can use may
                   be established for these services.


PROCEDURES:

DOCUMENTS:                             Departmental Purchase Request Form (PD)

WHEN USED:                             For hiring of temporary (30-180 calendar day) employees.

             Note: If a temporary worker is needed beyond one hundred eighty (180)
                   calendar days, additional approval and justification are required.

1.           Agency:

             (a)                       follows internal procedures to request temporary assistance;

             (b)                       sends a memo to Director of Human Resources providing justification for
                                       the need;

             (c)                       completes a PD form with three (3) quotes (when practical), one of which
                                       must be a minority, with the memo;




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             (d)                       submits the approval letter from the Director of Human Resources, along
                                       with the PD, to Procurement Services.


2.           Procurement Services:

             (a)                       reviews submitted request and audits three (3) quotes. If quotes are not
                                       provided, Procurement Services will solicit three (3) bids;

             (b)                       selects the most suitable vendor and advises the Agency of name and rate
                                       per hour;

             (c)                       keys PD into Advantage Financial to issue a Purchase Order number.

             Note: If a rush request, Purchase Order Number can be called to the vendor by
                    the Procurement Officer.

3.           Upon invoice from the vendor, the Agency completes the Receiver's Report and sends it
             with the invoice to Finance for payment.

4.           Finance processes documents and invoice for payment.

5.           For extension beyond one hundred eighty (180) calendar days, the process is repeated
             following the steps described above.


             Note: Temporary employees are not to be placed on the City payroll. The
                   temporary employee must come from a bona fide Temporary Employment
                   Agency. If the Agency desires to hire an employee as a contract employee,
                   the Agency must initiate a contract with the prospective employee. This
                   contract is between the Agency Director, the contract employee, and the
                   Director of Human Resources. Procurement Services does not get
                   involved in this process unless the individual is secured through the
                   competitive negotiation process (i.e., a Request for Proposals). Keep in
                   mind that a contract employee must go through the hiring process as
                   prescribed by Human Resources.




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NO. 12                    RESERVED




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NO. 13                    NOT-ENCUMBERED INVOICE (DIRECT PURCHASE)


Certain types of supplies, materials, equipment, and services are not generally purchased or
processed by Procurement Services, but are the responsibility of the Agency.


POLICY:

1.           The Agency is given authority to directly purchase certain supplies, materials, equipment
             & services. A Not-Encumbered Invoice is utilized to make payment to the vendor for
             these direct purchases. If a City contract has been established for any of these services,
             payment shall be processed against a PG. Items not specifically listed will be evaluated
             individually by the Director of Procurement services for approval as a direct purchase.
             The Agency makes the direct purchase of:

2.           Toll road passes tokens and bus tickets;

3.           Association dues - membership in professional associations for City Agencies or
             employees;

4.           Care of prisoners - care and maintenance of City prisoners confined in places other than
             City detention;

5.           Concession supplies - supplies and materials required for operation of concessions at
             recreational centers;

6.           Government publications - purchase of government publications offered by federal, state,
             county, or municipal Agencies;

7.           Support of children - wards of the City boarded in private homes and payment of school
             lunches;

8.           Scientific and medical instruments and equipment - although Agencies are authorized to
             purchase these directly, some are purchased through Procurement Services;

9.           Printing of legal briefs - other types of printing are expressly excluded;

10.          Library purchases - manuscripts, maps, charts, sheet music, phonograph records, compact
             discs, DVDs, videotapes, cassette tapes, pamphlets, periodicals, books, and other library
             reference/support materials; Agencies other than the Library requiring these types of
             items may also procure them directly;

11.          Utility payments - certain payments authorized by City Council or a City contract;
             includes connection charges allowed to private contractors for connection to City gas



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             mains, payment for water rights and facilities, canal gate maintenance, and payment to
             natural gas companies for gas and related services; monthly telephone payments;

12.          Legal-related and Office of the City Attorney payments - settlement of claims (authorized
             by the Office of the City Attorney but paid by and routed through the Agency
             concerned); lawyers' and other legal-related fees; warrant, lien and continuance fees; real
             estate purchases and condemnations;

13.          Fiscal Agents' fees when acting on behalf of the Department of Finance for the payment
             of interest and the redemption of negotiable bonds and similar functions, notary fees, etc.;

14.          Bond services - professional and technical services required in connection with the
             issuance of bonds of the City;

15.          Commissions or fees to banks and substations acting as collecting or selling Agencies for
             utility payments, license sales, payments to City Boards or Commissions for services
             rendered;

16.          Clothing allowance for personnel such as police officers required to use civilian clothing;

17.          Rental payments for property, safety deposit boxes and other similar facilities;

18.          City sponsored conferences, room deposits, hotel-motel expenses, and banquet expenses;

19.          Legal, scientific, and professional books when required in the performance of assigned
             duties;

20.          Advertising, postage, transportation and freight, refunds, magazines, newspaper
             subscriptions, payments to federal or state agencies regarding grants, medical payments,
             not under contract (all items shown on a Not-Encumbered Invoice except petty cash);

21.          Goods or personal services for direct use by individual recipients of Social Services
             programs;

22.          Printing of ballots, statements of results, or other materials essential to the conduct of
             elections;

23.          Sculptures, paintings, or other works of art;

24.          Refunds, including taxes, utility deposits, and payroll related refunds;

25.          Parks, Recreation & Community Facilities’ payments for the following:
      •      Event promoters
      •      Sports officials
      •      Instructors for self-sustaining classes
      •      Senior citizen events


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      •      Festival of Arts performers
      •      Other payments as may be approved and allowed on an
      •      individual basis

26.          Freight and transportation payments

27.          Payments to governmental agencies; foundation payments; payments to cover taxes;
             supplies purchases, medical services, etc.; wire transfers.

28.          Direct purchase of materials, supplies, and services less than $500 per purchase.
             Agencies are strongly encouraged to solicit minority vendors when available. (Refer to
             Policy No. 14, #4)

             Note: If materials, supplies and services are used on a recurring basis a blanket
             departmental Purchase Order not to exceed $5,000 should be established.

             Note: Agencies may request that Procurement Services establish a contract for
                   items included within this listing.


PROCEDURE:

1.           Agency:

             (a)                       completes and submits to Finance a Not-Encumbered Invoice along with
                                       the vendor's invoice for payment within three (3) business days of the
                                       purchase;

             (b)                       requests the assistance of Procurement Services to purchase or seek a
                                       contract for items not included under the direct purchase provisions.




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NO. 14                    DEPARTMENTAL PURCHASE REQUEST (PD)


Procurement Services is dedicated to purchasing supplies, materials, and services in a responsive
and efficient manner. To achieve this goal, certain functions are delegated to the Agencies.

POLICY:

1.           All purchases of $30,000 or less may be made through a Departmental Purchase Request
             in one of two ways. The Agency may take one (1) written or verbal quote from a vendor
             for purchases of $5,000 or less, or a minimum of three (3) written quotes from vendors,
             one of which shall be a minority for purchases over $5,000 and up to and including
             $30,000. Final approval by Procurement Services is required for the latter category.

2.           Award is made to the lowest responsive, responsible bidder (refer to Purchasing Policy
             No. 31).

3.           Only items of a similar nature should be included on the same requisition form; e.g.
             office supplies should not be mixed with hardware items.

4.           The Agency may not submit a Departmental Purchase Request for the same supplies,
             materials, or services within ninety (90) calendar days of the initial request. Receipt of
             such a request shall not be processed by Procurement Services with an aggregate amount
             exceeding $50,000.

5.           All Departmental Purchase Requests will be submitted to Procurement Services for
             approval and processing. If in compliance, approval will be issued within processing
             times noted in Section Three, Policy No. 6.

6.           Departmental Purchase Requests may not be used for items that are currently on a City
             Contract unless the vendor is incapable of providing the goods or services when needed.

7.           Violation of this policy and subsequent procedures will result in revocation of this type of
             procurement capability for the Agency. The Director of Procurement Services, in her
             sole discretion, shall determine the time frame of such suspension.

PROCEDURES:

DOCUMENTS:                             Departmental Purchase Request Form (PD)

WHEN USED:                             For purchases up to $30,000 made by City Agencies.

Items or services that are $5,000 or less

1.           Agency:



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             (a)                       identifies the need;

             (b)                       contacts at least one (1) vendor for a written quote. Agencies are
                                       encouraged to solicit minority vendors in this process. The quote must
                                       include any freight/delivery charges;

             (c)                       documents information received on a PD form/worksheet;

             (d)                       completes the PD form indicating the account numbers against which the
                                       purchase is to be charged;

             (e)                       has PD approved by Agency's authorized official;

             (f)                       the PD is keyed into Advantage Financial. The Agency records the system
                                       generated document ID number on the top right of the worksheet.

Items or Services that are over $5,000 and up to $30,000

1.           Agency:

             (a)                       identifies the need for an item or service that is over $5,000 but no more
                                       than $30,000;

             (b)                       contacts at least three (3) vendors, one of which must be a minority, if
                                       available, for a written quote (using Fax Back Request for Price Quote
                                       Form located on Starnet). Each quote must include any freight/delivery
                                       charges;

             (c)                       documents information received on a PD form/worksheet;

             (d)                       recommends award of a contract by indicating the desired lowest
                                       responsive and responsible vendor;

             (e)                       completes the PD form indicating the account numbers against which the
                                       purchase is to be charged;

             (f)                       has PD approved by Agency’s authorized official;

             (g)                       The PD is keyed into Advantage Financial. The Agency records the
                                       system-generated document ID number on the top right of the worksheet.
                                       The worksheet with quotes attached is then forwarded to Procurement
                                       Services.

2.           Procurement Services:




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             (a)                       reviews PD for compliance to applicable policies; if appropriate, releases
                                       a Purchase Order within processing times noted in Section Three, Policy
                                       No. 6;

             (b)                       sends Purchase Order to vendor.

             Note: Agency may pick up the Purchase Order if it is a "Rush." In this case, the
                   PD should be noted with: "Special Handling: Agency will pick up
                   Purchase Order when ready.”


3.           Agency receives items or services and confirms compliance with specifications. If there
             are any discrepancies, Agency makes a note on the Receiver's Report and promptly
             reports the discrepancies to Procurement Services

4.           Vendor sends the invoice to the address noted on the Purchase Order.

5.           Agency approves the invoice, if in order, and returns to Finance.

6.           Finance issues payment to vendor.




Note:     Uses for the PD include:
Type Purchase                  Dollar Value                                           Requirement
Purchases                      $5,000 or less                                         1 quote required
Purchases                      Over $5,000-$30,000                                    3 written bids required (1
                                                                                      minority)
Emergencies                                                 Over $5,000-$30,000       3 quotes when practical
Temp. personnel                                             Over $5,000-$30,000       Copy of original bids
State Contract items                                        Up to $30,000             State Contract No. required
Only Practical Source                                       Up to $30,000             Justification Memo approved
                                                                                      by Director of Procurement
                                                                                      Services
Food purchases                                              Up to $30,000             3 quotes, when practical (1
                                                                                      minority)
Original                            Equipment Up to $30,000                           Justification memo approved
Manufacturer                                                                          by Director of Procurement
                                                                                      Services




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NO. 15                    REQUISITION PURCHASES (RX)


A Purchase Requisition form is used for requesting supplies, materials, or equipment for which
prices are secured and for which purchase orders for items greater than $30,000 are issued by
Procurement Services.

POLICY:

1.           All requests for supplies, materials, or equipment for which prices are secured and
             purchase orders are issued are initiated through use of the Purchase Requisition form.

2.           City Agencies may utilize varying internal methods for processing requests for supplies,
             materials or equipment within their Agency. However, requests for requisition purchases
             will not be considered without a Purchase Requisition.

3.           Only items of similar nature are to be included in a single Purchase Requisition.
             Purchases are made by Procurement Officers who specialize in various commodities;
             therefore, grouping of different types of items results in delay. A requisition that groups
             more than one type of commodity will be returned.

4.           The following information is required on all Purchase Requisitions:

             (a)                       the account number(s) to which the purchase will be charged and a
                                       signature from an individual authorized to approve the purchase request;
                                       and

             (b)                       the approval of the Agency prior to the issuance of the purchase order
                                       when purchase requirements are found to be in need of additional funding
                                       at the time of bid disclosure (in excess of 10% of the original cost).

5.           For requisitions over $30,000, a minimum of four (4) weeks after the requisition is
             received by Procurement Services must be allowed for the issuance of a purchase order to
             accommodate the following process:

             (a)                       Purchase Requisitions from all Agencies are grouped or consolidated on
                                       the scheduled date and bid packages are issued;

             (b)                       awards are made and purchase orders are issued;

             (c)                       at least two (2) weeks is generally required for delivery; however, the
                                       delivery date must agree with the bidder's promised delivery date.

             Note: If earlier delivery date is justified, bid invitations must indicate the
                   required date of delivery.



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6.           Requisitions are handled out of schedule only when a written request from the Agency
             Head for rush handling is received and approved by the Director of Procurement
             Services. In such case, a Purchase Order will be issued in one (1) to five (5) business
             days depending upon the nature of the procurement.


PROCEDURES:

DOCUMENTS:                             Purchase Requisition Form (RX) Purchase Order Form (PC)

WHEN USED:                             For all purchases except those:

             (a)                       secured under contract;

             (b)                       secured from other City Agencies (see Purchasing Procedure No. 7);

             (c)                       secured directly by the Agency as Direct Purchases (see Purchasing
                                       Procedure No. 13);

             (d)                       secured using the Departmental Purchase Request process (see Purchasing
                                       Procedure No. 14).

             (e)                       secured on a “Rush Purchase” basis (see Purchasing Procedure No. 16).

The Purchase Requisition is used as a basis for initiating the issuance of Invitations for Bids and
subsequent Purchase Orders.

1.           Agency:

             (a)                       adequately plans or anticipates requirement;

             (b)                       follows respective internal procedures for notifying needs to Agency's
                                       requisition division;

             (c)                       provides complete details on supplies, materials, equipment, or services as
                                       soon as possible, citing applicable specifications if known;

             (d)                       specifies required delivery date;

             (e)                       provides name and address of specific vendors, if desired;

             (f)                       prepares separate requisition for each category of commodity, such as
                                       hardware, electrical, plumbing, food, etc. A Requisition Continuation
                                       sheet is used when a requisition is longer than one page. Appropriate
                                       copies are provided with proper identification such as requisition number,
                                       date, Agency, etc.


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2.           Agency's Requisition Division or Unit:

             (a)                       completes requested items on a Purchase Requisition;

             (b)                       forwards original to Procurement Services, or, if Agency is on-line with
                                       Advantage Financial, enters requisition into the system.            Any
                                       specifications or other information that cannot be typed into Advantage
                                       Financial are forwarded directly to Procurement Services. The system-
                                       generated document ID number is written on the document so that
                                       Procurement Services can match the document with the Purchase
                                       Requisition;

             (c)                       retains copy of requisition for Agency use;

             (d)                       maintains a "Pending Requisition" file for all requisitions.

3.           Procurement Services:

             (a)                       enters the requisition into Advantage Financial, if applicable, to pre-
                                       encumber funds;

             (b)                       uses the RX (white copy) as the basis for securing bids and awards
                                       Purchase Order (PC) to lowest responsive, responsible bidder;

             (c)                       requests fund increase from Agency if the low bid exceeds the amount of
                                       funds cited in the RX by 10%; issues PC to successful bidder upon
                                       verification of additional funds; cancels Requisition if adequate funds are
                                       not available;

             (d)                       distributes respective copies of PC to vendor to Agency.

4.           Agency's Requisition Division/Unit:

             (a)                       removes RX (yellow copy) from "Pending Requisition" file when Agency
                                       copies of Purchase Orders (PC) are received;

             (b)                       checks the status of requisitions with Procurement Services for delinquent
                                       files;

             (c)                       notes PC number on the RX and places it back in the file by serial number;

             (d)                       distributes Agency copies of PC with final Receiver’s Reports in
                                       accordance with internal (requisitioning Agency's) policy;

             (e)                       places office copy of PC in file marked "Purchase Orders - Pending"
                                       awaiting the delivery of the item;


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             (f)                       after delivery, sends Receiver's Report and vendor's invoice to Finance for
                                       payment.


             Note: Time Frames: It should take approximately four (4) weeks after receipt
             by Procurement Services, to issue a Purchase Order (PC) for a requisition in the
             amount of greater than $30,000 up to and including $50,000. Requisitions over
             $50,000 generally take approximately ten (10) weeks to execute because the
             Procurement Code mandates a formal bid process for these procurements.

             If the request is an emergency, see Procedure No. 17 for processing instructions.

             Over-Runs: Delivery of over-runs up to ten percent (10%) of the original
             quantity ordered and acceptable to the requisitioning Agency may be honored at
             the unit price of the original Purchase Order.

             Over-runs beyond 10% will not be accepted without a written Change-Order
             approved by Procurement Services.

             Increase in the unit price of the original Purchase Order may not be accepted
             without the prior written approval of Procurement Services and appropriate
             execution of a Change-Order.

             Modifications to Purchase Orders (PC) are approved by Procurement Services
             only. Any modifications should be attached to the corresponding copy of the
             original order.




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NO. 16                    RUSH PURCHASES: MAINTENANCE, REPAIR, AND
                          OPERATING SUPPLIES FOR OVER $5,000 AND UP TO
                          $30,000

In certain areas of the City's operations, it is not always possible to anticipate the need for a
purchase. This is particularly true of certain types of repairs. In such cases, purchases may be
made for supplies and services over $5,000 and up to $30,000, contingent upon policies
described as follows:

             Note: See Purchasing Policy No. 17 for emergency purchases over $30,000, and
                   Purchasing Policy No. 14 for purchases under $30,000. To determine
                   differences between rush and emergency purchases, see definition of
                   "Rush Purchases" and "Emergency Purchases" in the Glossary.


POLICY:

1.           As a general rule, the need for all supplies, parts, and required materials should be
             anticipated, and they should be acquired by using the appropriate purchasing process.

             Rush purchases are to be used for unforeseen circumstances such as equipment failures
             and are to be used only when a regular purchase is not feasible.

2.           Rush purchases can only be made with authorization of Procurement Services personnel
             and can be requested by telephone, e-mail, or in person with proper justification and
             authorization.

             A completed Departmental Purchase Request is necessary to secure authorization. If
             approved, Procurement Services will issue a purchase order number.

3.           Rush authorizations must be competitively solicited (when practical) with a minimum of
             3 written quotes. The City strongly encourages that at least one of these bids come from
             a minority vendor when such a vendor is available. (see Purchasing Policy No. 1)

4.           In cases where the Agency has not provided Procurement Services with competitive
             pricing (where competition is feasible) prior to any purchase commitment, the
             responsible Procurement Officer will solicit competition and advise the requesting
             Agency of the source and price to issue the respective, reserved purchase order.

5.           The responsible Procurement Officer will place the order with the selected, lowest
             responsible and responsive bidder and notify the Agency.

Note: Procurement Services does allow the Agency to solicit 3 written quotes. However, it
      must acquire approval of Procurement Services prior to obligating the City or placing an
      order.

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6.           At no time will a rush purchase action be granted for purchases that already have been
             completed by the Agency. This will be considered an unauthorized purchase (see
             Richmond City Code § 22.1-17 (1993)).

             All Department Directors will be made aware of any unauthorized purchase in his/her
             department. The Director of Procurement Services will recommend to the City Manager
             the appropriate action to be taken against individuals in violation of this policy.

7.           If an emergency exists outside of normal business hours and if the Director of
             Procurement Services cannot be contacted, the Agency may make the purchase but must
             advise Procurement Services within two (2) business days of the purchase.

PROCEDURES:

DOCUMENTS:                             Departmental Purchase Request Form (PD)

WHEN USED:                             During minor emergencies due to breakdown or failure of equipment, or
                                       for maintenance or repair supplies, materials, or services when a need
                                       could not be anticipated.

1.           Agency's authorized staff follows Agency's internal procedures to secure authority for
             making a purchase under Rush procedures.

2.           Agency's Requisition Division:

             (a)                       prepares Departmental Purchase Request (PD) form per established
                                       policies (see Related Purchasing Policy No 14); obtains three (3) written
                                       quotes, if practical, one of which should be from a minority vendor.

                          i.           if on-line, keys PD into Advantage Financial, and sends PD to
                                       Procurement Services. The PD should indicate the Advantage Financial
                                       system generated document ID number.

                          ii.          if manual, hand carries PD to Procurement Services.

             (b)                       contacts Procurement Services;

                          i.           if on-line, calls and provides the assigned buyer with vendor code and
                                       Advantage Financial assigned Purchase Order number;

                          ii.          if manual, notifies receptionist that they have a rush request and need to
                                       see a buyer.

3.           Procurement Services/Procurement Officer:

             (a)                       if manual, keys the PD into Advantage Financial;

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             (b)                       reviews PD in system or hard copy to determine if an appropriate
                                       purchase;

             (c)                       if approved, the order will be processed in the daily cycle.

4.           Agency's Staff Requisition Division:

             (a)                       After receipt, completes Receiver's Report and sends with the vendor
                                       invoice to Finance for payment.

5.           Finance processes invoices for payment.




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NO. 17                    EMERGENCY PURCHASES


Emergency purchases are exclusively reserved for justified emergencies and purchases may be
made without taking competitive bids. However, competitive bids are recommended whenever
possible.

“An emergency shall be deemed to exist when the Director determines that (1) a breakdown or
failure of machinery or other equipment has occurred; (2) a curtailment, diminution or
termination of an essential service is threatened; or (3) a dangerous condition has developed
and that a procurement without recourse to competitive sealed bidding or competitive
negotiation is (1) needed to prevent loss of life or property; (2) essential to protect and preserve
the interests of the City and its inhabitants; (3) needed to maintain the proper functioning of the
City government; or (4) needed to maintain the efficient rendering of public services.”
Richmond City Code § 22.1-65(b) (1993).

POLICY:

1.           Emergency purchase procedures are followed only when a Department Director writes a
             Declaration of Emergency.

             The written declaration must be forwarded to the Director of Procurement Services.
             Declaration of Emergency forms are utilized for all emergency purchases in addition to
             the Purchase Requisition. A written and complete explanation of circumstances must be
             included on the Declaration of Emergency form.

2.           Failure to use reasonable diligence and foresight in anticipating requirements will not be
             considered a valid reason for using emergency procedures. If it does become necessary
             to make an emergency purchase due to negligence, the Declaration of Emergency must
             unequivocally state the Agency's responsibility for causing the emergency situation and
             the Agency's failure to plan/project needs.

3.           Procurement Services will attempt to make all emergency purchases at the first available
             opportunity. If an emergency exists outside of normal business hours, and the Director of
             Procurement Services cannot be contacted, the Agency may make the purchase but must
             report it to Procurement Services within two (2) business days.

4.           Upon request, Procurement Services will furnish the home phone numbers of purchasing
             personnel in order to expedite an emergency situation.

5.           During an extended emergency, Procurement Services will stay open beyond normal
             hours to accommodate the need.




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PROCEDURES:

DOCUMENTS:                             Declaration of Emergency Form

WHEN USED:                             For expediting and processing purchases of supplies, materials and
                                       equipment, or services when required during a bona fide emergency.

1.           Agency Director or Head:

             (a)                       declares an emergency in accordance with provisions of the City Code,
                                       using the Declaration of Emergency form located on Starnet, and forwards
                                       form to Procurement Services;

             (b)                       makes a telephone call or an in-person declaration to the Director of
                                       Procurement Services, if time does not permit the transmittal of a written
                                       declaration;

             (c)                       confirms a verbal declaration with a written declaration within two (2)
                                       business days to Procurement Services.

2.           Procurement Services:

             (a)                       takes whatever actions may be necessary to secure requested commodities,
                                       equipment, or services;

3.           Agency:

             (a)                       forwards necessary Purchase Requisition or contract with attached
                                       Declaration of Emergency to Procurement Services;

             (b)                       hand-delivers requisition or contract to appropriate Agencies to expedite
                                       processing;

             (c)                       upon receipt of invoice from vendor, submits a Receiver's Report and
                                       vendor invoice to Finance for processing and payment.

4.           Finance processes payment to the vendor.


             Note: If an emergency occurs during non-business hours, the order may be
                   placed with the vendor without the approval of Procurement Services. In
                   this case the procurement must be reported, in writing, to the Director of
                   Procurement Services within two (2) business days of the purchase.




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NO. 18                    PRINTING AND DUPLICATING


The City's Central Duplicating Services, consisting of the Print Shop and Copy Center, is located
on "A" deck in City Hall and does most printing and copy work for City Agencies. After it is
determined that the Central Duplicating Service is unable to process the requisition, printing may
be done by commercial sources secured through Procurement Services.


POLICY:

1.           A printing order is generated through a Printing Requisition or Copy Center Work
             Request form. Printing done through a commercial vendor is requested through a regular
             Purchase Requisition.

2.           To the fullest extent possible, all forms, business cards, paper, letterheads, or general
             printing is standardized on a City-wide basis.

3.           Normal printing requirements should be anticipated ten (10) workdays in advance.
             Immediate service may not be possible except in case of an emergency.

4.           Emergency handling is done for genuine need only, and requires approval of the Agency
             Head and the Manager of the Print Shop.

5.           Use of standard size paper is encouraged to minimize costly waste, production delays,
             and increased costs.

6.           Proofs will be provided upon request.

7.           Job requests are processed in the order received.




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PROCEDURES FOR PRINT SHOP AND COPY CENTER:


The Central Duplicating Services is made up of two units: a print shop and a high-volume copy
center. All printing requirements must be coordinated with the Manager of the Print Shop.

DOCUMENTS:                             Printing Request and Intra-city Invoice Work Request; Copy Center Form;
                                       Authorization to Sign Form

WHEN USED:                             For all types of printing including forms, letterheads, envelopes,
                                       pamphlets, and high-volume copy work.

LOCATION: Deck "A", City Hall

I.           PRINT SHOP:

1.           Agency:

             (a)                       determines the need for printing services;

             (b)                       prepares Printing Request and Intra-city Invoice specifying the following:

                                 •     Agency, telephone number, authorization, date forwarded to Print Shop,
                                       quantity, account number(s) to be charged, and date by which work is
                                       needed.
                                 •     Requests marked "ASAP" will be returned for clarification regarding
                                       schedule.

             (c)                       provides Print Shop with a draft copy of the work desired, allowing
                                       sufficient time for making a plate, ordering supplies as required, etc.;
                                       requests a copy of the proof if so desired; retains the blue copy of the
                                       request.

2.           Print Shop:

             (a)                       the Manager reviews request to determine if work can be performed in-
                                       house. If a job can only be performed by an outside vendor, returns
                                       printing request with notation to prepare a Purchase Requisition or
                                       Departmental Purchase Request, which is then followed up through
                                       Procurement Services;

             (b)                       the Manager prepares job jacket and assigns job number for each job
                                       request for in-house work;

             (c)                       completes work on first-come, first-served basis;

             (d)                       orders necessary supplies, if not furnished by the Agency;

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             (e)                       makes sure that the proof is reviewed and approved by the Agency, if so
                                       requested, prior to proceeding with completion of the job;

             (f)                       initiates prompt billing to the Agency.

II.          COPY CENTER:

1.           Agency:

             (a)                       determines if work for high-volume meets established criteria;

             (b)                       prepares Copy Center Work Request form.

2.           Print Shop:

             (a)                       reviews work request to verify criteria and accuracy;

             (b)                       assigns a job number;

             (c)                       completes work on first-come, first-served basis;

             (d)                       bills the Agency for payment.




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PROCEDURES FOR PRINTING PURCHASES FROM COMMERCIAL FIRMS:

DOCUMENTS:                             Purchase Requisition Form (RX); Departmental Purchase Request (PD)

WHEN USED:                             For all printing jobs that cannot be handled by the City Print Shop due to
                                       complexity of the work. All commercial printing is processed and
                                       awarded on the basis of competitive bidding in compliance with Related
                                       Purchasing Policy No. 29.

1.           Agency:

             (a)                       determines need for forms and other printed materials;

             (b)                       prepares draft, design, or manuscript copy including layout and specific
                                       printing instructions, as necessary;

             (c)                       confirms with Print Shop that the work is beyond the capability of the
                                       Print Shop and follows procedures for purchase including:

                                 •     quantity and title of printed material,
                                 •     unit (each, sets, etc.), and
                                 •     full description and sample.

2.           Agency's Requisition Division:

             (a)                       completes PD if no greater than $5,000 for one quote or complete PD
                                       between $5,000 and up to and including $30,000 with three (3) quotes, or
                                       RX in same manner as for a regular purchase;

             (b)                       attaches two (2) draft copies of a sample;

             (c)                       attaches the Print Shop Manager's note verifying that the job cannot be
                                       completed in the Print Shop;

             (d)                       signs the PD or RX and sends it to Procurement Services, except for PDs
                                       no greater than $5,000, or if on-line enters the PD or RX into Advantage
                                       Financial. The Agency carries the necessary drafts of the job (which
                                       indicates the system generated Document ID number on them) to
                                       Procurement Services.

3.           Procurement Services processes the request through previously described channels.




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NO. 19                    PURCHASE OF INSURANCE

All insurance required by the City Agencies is purchased by the Division of Risk Management
of Finance.

             Note: Employee-related insurance is purchased by Human Resources.


POLICY:

1.           All regularly scheduled insurance purchases are processed through Procurement
             Services; however, purchases are secured and budgeted on an on-going basis by
             appropriate Agencies, such as the Division of Risk Management or Human Resources
             (for employee health). The City also participates in a self-insurance program for its
             general and automotive liabilities.

2.           New, additional, or different insurance must be requested in writing by the Agency to the
             Division of Risk Management for consideration. Complete details as to type of
             insurance, potential risks, and degree of potential losses are to be included with requests.
             The Division of Risk Management will make the final determination to purchase or not
             purchase commercial insurance or to include the risk in the City's self-insurance program.

3.           If a request for new, additional, or different insurance has been made and is included in
             the Division of Risk Management's insurance budget, no charge is made to the Agency
             concerned. However, if funds have not been requested and included in the budget, the
             Agency will be charged for the costs involved.

4.           Insurance claims are exclusively processed by the Division of Risk Management on all
             insured losses.

5.           All matters relating to the City's insurance program are to be referred to and through the
             Division of Risk Management.




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NO. 20                    VALUE ANALYSIS


It is the policy of the City to purchase based on quality, character, and need of supplies and
equipment. Depending on the use, it may be either the lowest quality available or a choice
premium grade. The process to make this determination is termed "Value Analysis."


POLICY:

1.           The determination of quality and character is a joint function of the Agency and
             Procurement Services. Representatives of each will make an attempt to reach mutual
             agreement on this matter. If mutual agreement cannot be reached, the Director of
             Procurement Services will make the decision.

2.           In determining the quality and character of commodities to be purchased, consideration is
             given to both cost and effectiveness. The "best buy" may be determined to be a more
             expensive item that is actually more cost effective, because it requires a smaller quantity
             to complete a project.

3.           Procurement Services will establish, on an as-needed basis, a Value Analysis Committee
             to perform value analysis. The Procurement Officer for the commodity in question,
             Agency representatives, City technical personnel, and, when appropriate, industry
             representatives will evaluate the product for total value.

                    Note: Purchasing of supplies, materials, and services is a joint and mutually
                           cooperative venture between the Agencies and Procurement Services.

                                  When Agencies keep Procurement Services staff informed of their
                                  needs in a timely manner, service is more efficient.

                                  The City's best interest is served as well as the best utilization of tax
                                  dollars achieved when Agencies have a basic knowledge of the
                                  details of their needs in terms of quality, quantity, deadline, and cost.
                                  It is strongly recommended that agencies get acquainted with the
                                  Procurement Officer(s) assigned to specific commodity areas.


PROCEDURES:

1.           Agency:

             (a)                       submits detailed specifications if the current material, supply, equipment,
                                       or service is not best suited for the job;

             (b)                       forwards recommendations for changes to Procurement Services.


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2.           Procurement Services:

             (a)                       studies the submitted specification;

             (b)                       establishes an ad hoc Product Value Analysis Committee, as required,
                                       composed of appropriate Agency, purchasing, technical, and industry
                                       personnel. Necessary study, analyses, research, and evaluation are carried
                                       out to determine the right quality for the job. Such committees shall be
                                       chaired by the respective Procurement Officer;

             (c)                       develops specifications to make a purchase;

             (d)                       follows appropriate purchasing procedures to procure the goods or
                                       services.




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NO. 21                    STANDARD SPECIFICATIONS


Procurement Services is authorized to “enforce standard specifications for all supplies, materials,
and equipment required by the City government.” Richmond City Code § 2-220.4(b)(1) (1993).

A “standard specification” is a specification for a designated commodity or service adopted by
the City of Richmond for use whenever purchase of that commodity or service is required.

Development and use of standard specifications for the purchase of supplies, materials,
equipment, and contractual services for the City is strongly encouraged.

POLICY:

1.           Standard specifications are developed with the advice, assistance, and technical
             knowledge of persons or Agencies concerned, as well as of qualified industry
             representatives.

2.           Quality standards and types for most commodities are generally established on a City-
             wide basis; however, they may be exclusively established for cases requiring specific
             quality and types.

3.           Specifications developed by other City Agencies, governmental units, trade, and
             professional associations, or any other source may be used when adequate and
             satisfactory. Such specifications may be used in original form or rewritten as a latest
             edition to the City of Richmond Standard Specification by Procurement Services.

4.           City Standard Specifications shall not restrict and shall encourage competition. All
             proprietary requirements, accompanied with detailed written justification, must be
             submitted to the Director of Procurement Services for consideration and approval prior to
             bidding. Any specification developed for vehicles or heavy equipment must be approved
             by Fleet Services prior to bidding.

Standard Specifications may be:
          specifically developed and adopted for City use,
          developed and utilized by other governmental units, such as the Commonwealth of
          Virginia or the U.S. Government,
          developed by professional or trade associations, or
          developed by a commercial firm if not unjustifiably restrictive.

             Note: Generally, these are rewritten as specific City of Richmond Standard
                   Specifications. Development of Standard Specifications is the joint
                   responsibility of Procurement Services and the Agencies.




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PROCEDURES:

DOCUMENTS:                             Standard Specification Documents

WHEN USED:                             For making City Agencies purchases by Procurement Services.

1.           Procurement Services, upon recognizing the need for a standard specification, may
             appoint an ad hoc committee to develop specifications.

             This ad hoc committee shall be chaired by the Procurement Officer in charge of
             specification development and shall be composed of Agency representatives, purchasing
             specialists, City engineering or laboratory personnel, and, when appropriate, trade or
             supplier representatives.

2.           Agency (one or several) studies the City's technical requirements, use, and other pertinent
             factors. These will generally be in the nature of performance requirements.

3.           Engineering or lab personnel (when applicable) develop technical, chemical, design, or
             physical requirements.

4.           Ad hoc committee:

             (a)                       reviews tentative specifications and approves or makes amendments. In
                                       the absence of a trade or supplier member, specifications may be
                                       submitted to potential suppliers or trade associations for review and
                                       recommendation;

             (b)                       approves and adopts specifications as City of Richmond Standard
                                       Specifications. Committee members sign the document indicating
                                       approval.

5.           Procurement Services:

             (a)                       prepares and distributes copies of standard specifications to all concerned
                                       parties;

             (b)                       obtains and distributes copies to all parties concerned in the case of
                                       adoption of a standard specification developed by other than the City;

             (c)                       places one copy in a master "Specification" file;

             (d)                       maintains an adequate supply (copies) of standard specifications;

             (e)                       reviews Standard Specifications periodically to determine if revision or
                                       modification is required.



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NO. 22                    ONLY PRACTICAL SOURCE PROCUREMENT


DEFINITION:

Only Practical Source: A determination that, while there may be numerous sources for an item
or service, there is only one source that is practical for that which needs to be procured.

Example: Original equipment manufacturers generally designate an authorized dealer in each
         market. While there may be a number of vendors available throughout the U.S., there
         is only one practical source - the authorized dealer in the Richmond market. The City
         would not want to send a piece of heavy equipment to Baltimore to be repaired.

POLICY:

1.           A contract may be awarded without competition when the Agency's Director, after a
             good faith review of available sources, affirms in writing to the Director of Procurement
             Services, the exclusive availability of a required service, goods, insurance, or
             construction item.

2.           The Agency's Director or the Procurement Officer shall conduct negotiations, as
             appropriate, regarding price, delivery, and terms upon approval by Procurement Services
             of the only practical source declaration.

3.           Procurement Services shall maintain a sole source record file including amount and type
             of each contract, description of items procured under each contract, and identification
             number of each contract file.


PROCEDURES:

DOCUMENTS:                             Purchase Requisition Form (RX); Departmental Purchase Request Form
                                       (PD); Declaration of Only Practical Source form

WHEN USED:                             When a procurement is required to meet an Agency's need and there is
                                       only one practical source for that which needs to be procured.

1.           Agency:

             (a)                       completes a Sole Source/Only Practical Source form and submits it to
                                       Procurement Services to request the services or goods desired;

             (b)                       provides detailed and specific documentation as to why the procurement
                                       should be an “only practical source.”

2.           Procurement Services:


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             (a)                       reviews justification and specifications for completeness and determines
                                       through market analysis if the item or service is, in fact, an Only Practical
                                       Source;

             (b)                       if approved, instructs the Agency on procedures to follow to generate a
                                       Purchase Order.




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NO. 23                    CONFLICT OF INTEREST
The following ethical rules apply to all City officers and employees involved in procurement
transactions and contract administration: (i) Article X of the Procurement Code, titled “Ethics in
Public Contracting”; (ii) sections 2.2-3100 through 2.2-3127 of the Code of Virginia, titled
“State and Local Government Conflict of Interests Act”; and (iii) the provisions of Res. No. 96-
R120-181, adopted on November 25, 1996 by the City Council, titled “Code of Ethics of the City
of Richmond”.

DEFINITIONS:

1.                        Pursuant to section 22.1-152 of the Procurement Code, the following terms shall
                          have the meanings ascribed to them below:

                          Immediate family means a spouse, children, parents, brothers and sisters, and any
                          other person living in the same household as the employee.

                          Official responsibility means administrative or operating authority, whether
                          immediate or final, to initiate, approve, disapprove or otherwise affect a
                          procurement transaction, or any claim resulting there from.

                          Pecuniary interest arising from the procurement means a personal interest in a
                          contract as defined in the State and Local Government Conflict of Interests Act
                          (Section 2.2-3100 et seq. of the Code of Virginia (1950), as amended).

                          Procurement transaction means all functions that pertain to the obtaining of any
                          goods, services or construction, including description of requirements, selection
                          and solicitation of sources, preparation and award of contract, and all phases of
                          contract administration.

                          Public employee means any person employed by the City, including elected
                          officials or appointed members of the City Council.

                          (See Richmond City Code § 22.1-152 (1993).)

POLICY:

1.                        Proscribed participation. A public employee having official responsibility for a
                          procurement transaction shall not participate in that procurement transaction if:

                          (a)          the employee is employed, or has been employed within the previous
                                       twelve (12) months, by a bidder, offeror, or contractor involved in the
                                       procurement transaction;

                          (b)          the employee, the employee’s partner, or any member of the employee’s
                                       immediate family


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                          (i)          holds a position with a bidder, offeror or contractor such as an officer,
                                       director, trustee, partner, or the like;

                          (ii)         is employed in a capacity involving personal and substantial participation
                                       in the procurement transaction; or

                          (iii)        owns or controls a pecuniary interest of more than five percent (5%)
                                       arising from the procurement transaction;

             (c)          the employee, the employee’s partner, or any member of the employee’s
                          immediate family has a pecuniary interest arising from the procurement
                          transaction; or

             (d)          the employee, the employee’s partner, or any member of the employee’s
                          immediate family is negotiating, or has an arrangement concerning, prospective
                          employment with a bidder, offeror or contractor.

             (See Richmond City Code § 22.1-153 (1993).)

2.           Solicitation or acceptance of gifts. A public employee having official responsibility for
             a procurement transaction shall not solicit, demand, accept, or agree to accept from a
             bidder, offeror, contractor or subcontractor any payment, loan, subscription, advance,
             deposit of money, services, or anything of more than nominal or minimal value, present
             or promised, unless consideration of substantially equal or greater value is exchanged.
             This policy is not intended to apply to regular fees required in accordance with applicable
             procurement regulations. The Procurement Code empowers the City to recover the value
             of anything conveyed in violation of the preceding. (See Richmond City Code § 22.1-
             154 (1993).) Further, a public employee having official responsibility for a procurement
             transaction shall not accept any gift, payment, deposit of money, services or kickback
             offers from any bidder, offeror, contractor, subcontractor or supplier.

3.           Disclosure of subsequent employment. A public employee or former public employee
             having official responsibility for procurement transactions shall not accept employment
             with any bidder, offeror or contractor with whom the employee or former employee dealt
             in an official capacity concerning procurement transactions for a period of one (1) year
             from the cessation of employment by the City unless the employee or former employee
             has provided written notification to the City Manager prior to commencement of
             employment by that bidder, offeror or contractor. (See Richmond City Code § 22.1-155
             (1993).)

4.           Kickbacks. The Procurement Code prohibits:

             a.           a contractor or subcontractor from demanding or receiving from any of his
                          suppliers or his subcontractors, as an inducement for the award of a subcontract or
                          order, any payment, loan, subscription, advance, deposit of money, services or


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                          anything, present or promised, unless consideration of substantially equal or
                          greater value is exchanged;

             b.           a subcontractor or supplier from making or offering to make kickbacks as
                          described by section 22.1-157 of the Procurement Code; or

             c.           a person from demanding or receiving any payment, loan, subscription, advance,
                          deposit of money, services or anything of value in return for an agreement not to
                          compete on a public contract.

             If a subcontractor or supplier makes a kickback or other prohibited payment as described
             in section 22.1-157 of the Procurement Code, the amount thereof shall be conclusively
             presumed to have been included in the price of the subcontract or order and ultimately
             borne by the City. In accordance with section 22.1-157, the City will recover any such
             payment from both the maker and the recipient. (See Richmond City Code § 22.1-157
             (1993).)

5.           Restrictions on purchases from architect or engineer. Except in cases of emergency,
             building materials, supplies, or equipment for any building or structure constructed by or
             for the City shall not be purchased from an architect or engineer employed by the City as
             an independent contractor to furnish architectural or engineering services. (See
             Richmond City Code § 22.1-158 (1993).)

6.           Penalty for violation. Willful violation of any provision of this policy constitutes a Class
             1 misdemeanor according to section 22.1-161 of the Procurement Code. Upon
             conviction, any public employee, in addition to any other fine or penalty provided by
             law, shall forfeit his employment. (See Richmond City Code § 22.1-161 (1993).)

PROCEDURES:

Procurement Services:

                   1. Each Procurement Services officer and employee shall sign a “Code of Ethics”
                      Certification Form each fiscal year that certifies his compliance with the ethical
                      provisions both referred to by and detailed in this policy.

                   2. The original copy of the “Code of Ethics” Certification Form shall be maintained
                      in the Human Resources file of each officer and employee. Also, Procurement
                      Services shall maintain a copy of this form.

Agency:

      1. Agency personnel serving in the capacity of a project manager or a selection committee
         member on formal solicitations shall sign a “Conflict of Interest & Confidentiality of
         Information” Certification Form for each City project for which they serve in such a
         capacity. If the City project does not utilize a project manager or selection committee,


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         the Agency personnel making the formal recommendation of award shall sign this
         Certification Form.
      2. The original copy of any Certification Form shall be maintained within the official bid or
         proposal file in Procurement Services.
      3. The requirements of this procedure, as to Agencies, do not apply to City-wide contracts
         implemented by Procurement Services. The Director of Procurement Services may
         determine on a case-by-case basis that the requirements of this procedure, as to Agencies,
         apply to informal contracts.




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NO. 24  EMERGENCY COVERAGE BY PROCUREMENT SERVICES
OFFICIALS


Procurement Services provides emergency coverage to all City Agencies seven-days-a-week
including after-hours and weekends.

“An emergency shall be deemed to exist when the Director determines that (1) a breakdown or
failure of machinery or other equipment has occurred; (2) a curtailment, diminution or
termination of an essential service is threatened; or (3) a dangerous condition has developed
and that a procurement without recourse to competitive sealed bidding or competitive
negotiation is (1) needed to prevent loss of life or property; (2) essential to protect and preserve
the interests of the City and its inhabitants; (3) needed to maintain the proper functioning of the
City government; or (4) needed to maintain the efficient rendering of public services.”
Richmond City Code § 22.1-65(b) (1993).

POLICY:

1.           After-hours and weekend contact with Procurement Services officials is not a substitute
             for diligence and planning by the using Agencies and may be exercised only in case of a
             situation meeting the definition of “emergency” above.

2.           In addition to the Procurement Services official on emergency call duty, the Director of
             Procurement Services may also be contacted, if deemed necessary. Name(s) and
             telephone numbers of personnel on call may be obtained from Procurement Services.

             Note: Such notice in no way relieves the Agency representative from briefing the
                   City Manager or a designee thereof if circumstances warrant.




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NO. 25                    INTERACTION WITH VENDORS

The Procurement Code requires professional interaction between vendors (and prospective
vendors) and representatives of the City, and this professional interaction is essential for a
professional and effective purchasing program.

POLICY:

1.           Although Agency contact with suppliers is not restricted, the presence of a Procurement
             Officer is strongly recommended at all meetings for product information with vendors.
             Attendance at these meetings shall be at the discretion of the Procurement Officer
             assigned to the commodity or service.

2.           Upon notifying the appropriate Procurement Officer, engineering and technical personnel
             requiring technical data in connection with design development may contact vendors
             directly. However, resulting design or specifications shall not be restrictive (refer to
             Purchasing Policy No. 21) and shall promote competition.

3.           All contact with vendors involving complaints about delivery and failure to meet
             specifications must be made through Procurement Services by submitting a completed
             vendor complaint form (located on Starnet).

4.           Refer to Purchasing Policy No. 23 for restrictions regarding acceptance of any personal
             favors and gifts from prospective vendors.

PROCEDURES FOR                                    MEETING                    WITH     SUPPLIERS:   PROFESSIONALS            &
CONTRACTORS:

1.           Agency:

             (a)                       arranges a meeting with the supplier. If appropriate, the Agency may
                                       request that a representative of Procurement Services attend this meeting;

             (b)                       reports any pertinent information as a result of a meeting with a supplier
                                       to Procurement Services.

2.           Agencies may directly contact vendors for information necessary to write specifications.
             However, under no circumstances shall a vendor be allowed to write specifications for an
             item for which the vendor may submit a bid within twelve (12) months following such
             writing.

3.           Direct contact with vendors during the evaluative phase of a bid or proposal is prohibited.
             Vendors soliciting information during this process shall be directed to the appropriate
             Procurement Officer.



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NO. 26                    ADVERTISING BY VENDORS


Requests are sometimes received from vendors, suppliers, and manufacturers for permission to
mention or feature the sale of their products or services to the City of Richmond.

POLICY:

1.           Vendors, suppliers, contractors, consultants, or manufacturers may not use the fact of sale
             of their product or services to the City of Richmond in product literature or advertising
             without the expressed written permission of the Director of Procurement Services.

2.           All vendors or contractors are to be advised of this requirement through the Supply or
             Commodity Advertising Clause at the time of solicitation or a contract is awarded.


Advertising Clause.

“It is understood and agreed that, in the event a contract is awarded for the supplies, equipment,
or services included in this proposal, that no indications of such sales or services to the City of
Richmond will be used in any way in product literature or advertising unless with written
approval from the City of Richmond and only for bibliographical and curriculum vitae
purposes.” Section II. City’s Terms and Conditions




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NO. 27                    RECEIPT, ACCEPTANCE AND INSPECTION OF SUPPLIES,
                          MATERIAL AND EQUIPMENT

             Note: The City does not have a central receiving and inspection point. Agencies
                   are responsible for receipt and inspection of all shipments.

POLICY:

1.           All shipments of supplies, materials, or equipment must be carefully checked to
             determine if the quality, amount, and other requirements are in agreement with the
             specifications of the order.

             If satisfactory, a partial or final Receiver's Report shall be immediately processed by the
             Agency.

2.           If the shipment is not satisfactory, Procurement Services should be advised on the
             Vendor Complaint Form of the deficiencies and what corrective action, if any, has been
             taken by the Agency.

3.           In case of suspicion of damage to a product in its original shipping container, the notation
             “Possible Concealed Damage” on the delivery ticket is required. In cases of actual
             damage, this will allow a quick replacement at no additional cost to the City.

4.           Upon request by the Agency, Procurement Services will make arrangements to verify the
             noted deficiencies and take appropriate steps to correct such deficiency.

The "liquidated damages" clause is applied in certain purchases where a supplier is required to
pay specified compensation to the City for failing to meet the delivery deadline

          Note: Agencies are responsible for the receipt, inspection and acceptance of all
                materials, supplies, equipment, and services purchased in accordance with
                policies established by Procurement Services.




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PROCEDURES FOR RECEIPT AND INSPECTION:

DOCUMENTS:                             Purchase Order Form with Final Receiver’s Report; Partial Delivery
                                       Receiver's Report

1.           Agency/Receiving Personnel:

             (a)                       notes promised delivery date on purchase order or contract. If delivery is
                                       not made by promised date, assigned Procurement Officer is promptly
                                       notified by phone;

             (b)                       receives merchandise from supplier or inspects work upon completion;

             (c)                       inspects all items delivered from supplier or services furnished for
                                       compliance with specifications or terms of order. Counts, weighs, or
                                       otherwise verifies that delivery complies with delivery document,
                                       Purchase Order, or Price Agreement Release;

                                 •     if order is complete and there are no discrepancies, renders Final
                                       Receiver's Report and forwards to Finance;
                                 •     if delivery is incomplete and there are discrepancies, renders a Partial
                                       Receiver's Report with appropriate distribution;
                                 •     upon final delivery, completes Final Receiver's Report and distributes
                                       appropriately;
                                 •     if over/under delivery (quantity) is acceptable to Agency, renders a Final
                                       Receiver's Report and notes the exact quantity received; or
                                 •     if over/under delivery is accepted, promptly notifies the assigned
                                       Procurement Officer for contract adjustment;

             (d)                       promptly contacts the assigned Procurement Officer in case of a rejection
                                       due to material or service not matching the specifications or terms of the
                                       order.

2.           Agency:

             (a)                       contacts the supplier in cases where materials or service do not match
                                       specifications or terms of the order;

             (b)                       asks the supplier for the corrected delivery and confirms it in writing with
                                       copies to the appropriate procurement officer for the purchasing files;

             (c)                       follows Change-Order procedures for any increase in quantity accepted;

             (d)                       forwards copy of respective Receiver's Report (final or partial) to Finance;




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             (e)                       requests Procurement Officer’s assistance, if necessary, in making the
                                       inspection or resolving discrepancy with vendor.

              Note: All visual damages must be noted on delivery tickets by the receiving
                    agent.
                    When the Purchase Order specifies that shipments are to be made
                    "F.O.B. Shipping Point," the City is responsible for transportation
                    charges and the cost should not be deducted from the vendor's invoice by
                    Finance. See Va. Code Ann. § 8.2-319.

PROCEDURES FOR SPECIAL HANDLING (LIQUIDATED DAMAGES):

DOCUMENTS:                             Liquidated Damages Form; Vendor Complaint Form

                           Note: Dependable delivery is one of the important factors in
                                 determining the lowest responsive, responsible bidder.
                                 Procurement Services is required to maintain a record on
                                 failure to meet delivery date. Agencies, therefore, must
                                 provide this information.

1.           Promised delivery date is noted on Purchase Order or contract. If not delivered as
             promised, Agency promptly notifies assigned Procurement Officer via a Vendor
             Complaint Form.

2.           Procurement Services:

             (a)                       makes note of failure on Vendor Complaint Form, showing Purchase
                                       Order or Contract Number, date of report, and delivery date promised;

             (b)                       telephones (and confirms in writing) supplier to expedite delivery;

             (c)                       follows through to ensure delivery or to determine the course of action as
                                       necessary;

             (d)                       completes Vendor Complaint Form and files it for future use.

If "Liquidated Damages" statement is applicable, it will appear as "the provisions of the attached
Liquidated Damages Clause are hereby incorporated with this order."

3.           Agency:

             (a)                       files copy of order under delivery date due or otherwise notes the date for
                                       follow-up;



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             (b)                       notifies the assigned Procurement Officer promptly by phone if order is
                                       not delivered by the due date;

             (c)                       renders Receiver’s Report in accordance to established procedures;

             (d)                       promptly contacts assigned Procurement Officer on a delayed delivery.


4.           Procurement Services:

             (a)                       takes whatever steps necessary or possible to expedite delivery;
                                       immediately notifies vendor and reminds the vendor of the liquidated
                                       damages clause, if applicable, and confirms notice in writing; and informs
                                       the Agency of the action taken;

             (b)                       sends Stop Payment Notice to Finance with copy to receiving Agency,
                                       another copy to file.


5.           Agency advises Procurement Officer handling order when shipment is actually received
             and renders Receiver's Report according to established procedure.

6.           Procurement Services:

             (a)                       determines course of action to assess liquidated damages and consults
                                       Agency, if necessary;

             (b)                       conducts a detailed study of the case and documents facts to vendor in
                                       writing, requesting necessary information in return;

             (c)                       completes Approval for Payment showing action to be taken and forwards
                                       it to Finance with information copy to Agency, and one copy to file.

7.           Finance makes necessary changes to the vendor invoice and processes it routinely.

8.           Procurement Services maintains a copy of the Vendor Complaint Form and Cure Notice
             for each vendor, indicating final results.



             Note: In a case where a Liquidated Damages Clause is applicable and where
                   the delivery is not in compliance with specifications, City employees
                   should not make any statement to any supplier, contractor or vendor that
                   damages might not have been suffered. This may invalidate any claim the
                   City may have.



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PROCEDURES FOR RECEIVERS REPORTS:

DOCUMENTS:                             Partial Receiver's Report; Final Receivers Report; Purchase Order Form
                                       (PC)

WHEN USED:                             For all payments of amounts due to firms, vendors, and organizations for
                                       supplies, materials, equipment, maintenance, services, consultant
                                       contracts, and rush purchases.

             Note: Transfer of funds between City Agencies is handled exclusively through
                   Intra-city Invoices.

PURCHASE ORDERS (PC):

1.           Procurement Services distributes copies of the Purchase Order (PC) as indicated on form.

2.           Vendor sends four (4) copies of invoice upon delivery of materials or service per
             instructions on Purchase Order.

3.           Agency's Requisition Office:

             (a)                       checks PC for discrepancies; upon satisfactory delivery of goods and
                                       services, signs and dates final Receiver's Report and invoice and sends to
                                       Finance;

             Note: All blocks on Partial Receiver's Report must be completely filled in except
                   the "unit price" and "amount, " which may be left blank.

             (b)                       contacts the assigned Procurement Officer to close out a PC which is not
                                       complete.

             Note: The Final Receiver's Report is the only document that closes out a
                   Purchase Order (PC) at Finance except, in rare cases, where
                   Procurement Services may close out an order by the use of a Cancellation
                   Change-Order form, exclusively executed by a Procurement Officer.

4.           Finance:

             (a)                       matches PC, vendor's invoice, and Agency's Receiver's Report(s). If all
                                       documents match, discounts are computed and, when appropriate, a check
                                       is issued for payment;

             (b)                       forwards invoice and Receiver's Report(s) to Procurement Services for the
                                       Procurement Officer to take corrective action if they do not agree with the
                                       Purchase Order.



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IF A PURCHASE ORDER IS NOT COMPLETED SATISFACTORILY:

1.           Procurement Officer:

             (a)                       contacts the vendor for agreement to cancel, where applicable, with
                                       confirmation in writing;

             (b)                       authorizes the Agency to render a Final Receiver’s Report to Finance. In
                                       such a case, the Agency must document the item number(s) and quantity
                                       received on the "Date Received" line;

             (c)                       approves acceptance of a delivery exceeding ten percent (10%) of a
                                       Purchase Order. The Procurement Officer will issue a modified Purchase
                                       Order for all quantity in excess of ten percent (10%) provided funds are
                                       available and certified by Finance. All discrepancies with unit prices must
                                       be promptly reported to the Procurement Officer;

             (d)                       keeps Agency updated on all late deliveries.

2.           Agency:

             (a)                       indicates on the partial or Final Receiver's Report the item number(s) and
                                       quantity received on the "Date Received" line when an order is cancelled;

             (b)                       indicates on the Partial or Final Receiver's Report(s) the item number(s)
                                       and quantity received in case of a quantity overcharge that does not
                                       exceed ten percent (10%) of the quantity ordered;

             (c)                       reports all late deliveries to the Procurement Officer on a Vendor’s
                                       Complaint Form.

3.           Finance initiates payment when all actions are completed and documents are returned.


PROCEDURES FOR CONTRACT PURCHASES:

1.           Agency:

             (a)                       specifies appropriate Procurement Services Contract Number on all Price
                                       Agreement Release forms (PGs) and vendor invoices; uses PO number in
                                       lieu of a contract number for a rush purchase order;

             (b)                       uses Price Agreement Release form (PG) to increase or decrease funds
                                       during the life of the PG;

             (c)                       approves or disapproves vendor's invoices immediately upon receipt and
                                       forwards to Finance;

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             (d)                       issues a Partial Receiver's Report for each payment of a long-term PG,
                                       using appropriate Procurement Services Contract Number, PO number, SP
                                       (for surplus), or PG numbers, as necessary;

             (e)                       issues and appropriately distributes Final Receiver's Report to close out a
                                       document.

2. Finance:

             (a)                       matches vendor's invoices and Receiver's Reports with PG forms by
                                       number;

             (b)                       separates all vendor's invoices based on PGs that also have a PO number;

             (c)                       makes payment to vendor.

             Note: Unauthorized purchases require detailed written justification from the
                   Agency Head prior to Procurement Officer's approval.


PROCEDURES FOR PARTIAL/FINAL PAYMENT REPORT: CONSTRUCTION

DOCUMENTS:                             Monthly Partial Payments - Works and Utilities
                                       Performance Report
                                       Final Receiver's Reports
                                       Monthly Partial Payments - Schedule of Values

WHEN USED:                             For making partial or final payments on construction contracts for Works
                                       and Utilities projects.

1.           Agency:

             (a)                       prepares an estimate of work completed showing amount of percentage of
                                       work completed and amount due. Invoices in amounts of five percent
                                       (5%) or less of the original contract will not be processed except for final
                                       payments or extenuating circumstances;

             (b)                       prepares and distributes Partial Receiver's Report showing the Price
                                       Agreement Release (PG) number and the Procurement Services' Contract
                                       number with a copy sent to the Procurement Services Procurement Officer
                                       who handles construction;

             (c)                       submits final payment document to general contractor for signature of
                                       acceptance with all appropriate adjustments;



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             (d)                       follows prescribed procedures upon receipt of contractor's signed final
                                       payment document, as outlined in Purchasing Procedure No. 26;

             (e)                       renders final Receiver's Reports to Finance and Procurement Services
                                       upon processing for final payment;

             (f)                       prepares Performance Report and forwards it to Procurement Services.


2.           Procurement Services approves Performance Report and forwards it to Finance.

3.           Finance makes final payment after receipt of approved Performance Report and final
             Receiver's Report.


PROCEDURES FOR PERFORMANCE AND EVALUATION OF CONTRACTORS AND
VENDORS:

DOCUMENTS:                             Vendors Performance Report Form; Evaluation Report

WHEN USED:                             For evaluation of a vendor’s performance (i) upon completion of all of the
                                       Agency’s construction projects (ii) during annual renewal process for
                                       supplies, materials, equipment or services; (iii) when any supplies,
                                       materials, equipment, or contracted services fail to meet the pre-
                                       established specifications; or (iv) when a product or service is
                                       unacceptable to the Agency.

1.           Procurement Services furnishes the Agency with a Performance Report with each
             construction contract, and an Evaluation Report when purchases are made under supply
             or service contracts.

2.           Agency:

             (a)                       reviews and evaluates work of the contractor before completing the
                                       Performance Report;

             (b)                       consults with concerned parties for a fair and impartial evaluation, if
                                       necessary, and submits the report to Procurement Services.

3.           Procurement Services:

             (a)                       reviews the report to determine subsequent action:

             If negative, takes appropriate action that may include meeting(s) between Agency and
             contractor, and/or the removal of the contractor from the bidders’ list for construction
             projects. A negative report may result in cancellation of the contract or demand for
             replacement of materials in a supply or service contract.

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             If positive, sends letter to renew contract.

             (b)                       upon approval, forwards a copy to Finance for release of final payment.




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NO. 28                    VENDOR INVOICES


To simplify the City's positive payment procedures, all invoices are processed on the vendors'
own invoice forms. All vendors and contractors are advised of the City policies as follows:


POLICY:

1.           Each contractor doing business with the City may use his/her own invoice forms,
             submitting in quadruplicate to the ordering Agency as indicated on the Purchase Order or
             contract. Three (3) copies are needed for processing by Finance; one (1) copy is for
             Agency use.

2.           All invoices must show the following information:

             (a)                       to whom supplies or services were delivered, as stated on all purchase
                                       orders/contracts (designating department, Agency, bureau, or division);

             (b)                       Purchase Order (PC/PG/PD) Number;

             (c)                       Contract Number, if applicable;

             (d)                       whether invoice is for partial or final payment;

             (e)                       Terms or Conditions (must agree with Purchase Order or contract); and

             (f)                       amount of payment due.

             If all information noted above is not included on all four (4) copies of the vendor's
             invoice, it may be returned to the vendor, thus delaying payment.

             Agencies must promptly process the required Receiver's Reports to Finance in order that
             invoices may be paid on time and to avoid the loss to the City of the vendor's cash
             discounts.


                           Note: Loss of any cash discounts resulting from the Agency's
                                 delay in processing the invoice will be charged to the
                                 Agency. Late payment may also be subject to a 1%
                                 finance charge as indicated in Richmond City Code §
                                 22.1-71, “Prompt Payment of Bills.”
                                 The City pays only from approved invoices, and will not
                                 honor requests for payment in the form of statements.




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NO. 29                    COMPETITIVE BIDS


It is the policy of the City to make all purchases of supplies, materials, equipment, and
contractual services on the basis of competitive bids whenever possible. Formal competitive
bids are solicited by Procurement Services.

POLICY:

1.           Type of bidding required :

             (a)                       Request for Quotations are utilized for purchases between $5,000 and up
                                       to and including $30,000. At least three (3) written quotes are required.
                                       At least one of the quotes should be solicited from a minority vendor.

             (b)                       Informal bids are utilized for purchases over $30,000 and up to and
                                       including $50,000. At least three (3) written bids are required. At least
                                       one of the bids should be solicited from a minority vendor.

             (c)                       Formal Competitive sealed bids are required for purchases over $50,000.

2.           Use of restrictive or non-representative bid list(s) is not permitted. Procurement Services
             solicits competitive bids from as many qualified sources as possible.

             All formal and informal Invitation for Bid (IFB) solicitations will be posted in the lobby
             of Procurement Services.

3.           All specifications will be written to allow free and open competition except when
             dictated by specific make, model, or design.

             Note: HRC-2 forms are required for all contracts awarded over $10,000. (See
                   Policy No.3)




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NO. 30                    BID OPENING


POLICY:

1.           All formal Invitation for Bids (sealed bids) are publicly opened and read aloud by a
             Procurement Officer at the time and place specified, and recorded and tabulated by a
             Purchasing staff member.

2.           Bids may be examined at bid opening by interested persons under the supervision of a
             Procurement Officer or staff member, provided it does not interfere with the conduct of
             City business.

3.           A person requesting to review a bid may see only one bid at a time.

4.           No attempt will be made to evaluate or interpret any bid at bid opening time.

5.           All bids are evaluated based exclusively on the contents of the sealed bid.

6.           A Procurement Officer or concerned Agency representative shall not discuss or allow
             vendor access to files under evaluation from the time bids are opened and an intent to
             award is announced, with the exception of a bid tabulation sheet.

7.           A bid tabulation summary sheet that indicates the pricing information from various
             vendors is available at any time during the bidding process after the bid opening.


PROCEDURES:

WHEN USED:                             When the character, quality, design, or suitability of a product or service
                                       purchased is subject to differing opinions, bids received are submitted to
                                       concerned Agencies for review and recommendation.
BID OPENING:

1.           Procurement Services/Procurement Officer:

             (a)                       declares the time set for bid opening;

             (b)                       requests attendees to sign the log-record;

             (c)                       removes bids from the locked box, opens bids in the presence of all
                                       attending bidders or interested persons, reads them aloud without any
                                       comment, and ensures that they are recorded by a procurement staff
                                       member;




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             (d)                       reviews all bids and accompanying documents to assure compliance with
                                       pre-established instructions contained in the Invitation for Bids;

             (e)                       safeguards opened bids until all bids are tabulated;

             (f)                       allows public examination of bids only under close supervision, one
                                       person at a time and one bid at a time;

             (g)                       maintains order during the bid opening process.

RECOMMENDATIONS FOR AWARD:

2.           Procurement Services/Procurement Officer:

             (a)                       identifies the lowest responsive/responsible bidder that is in the best
                                       interest of the City along with the criteria outlined in policy No. 31.

             (b)                       sends bids and related documents to concerned Agency that has greater
                                       technical knowledge for review and recommendation, if appropriate.

             Note:                     The file does not become public information again until after the
                                       announcement of an Intent to Award.

3.           Agency:

             (a)                       does not evaluate or interpret any feature of any bid during bid opening;

             (b)                       ensures no discussion by others with vendors on any specifications,
                                       features, or other information on bids under evaluation;

             (c)                       does not discuss with or allow vendors any access to file under evaluation
                                       from the time of bid opening to the announcement of an Intent to Award
                                       except to view a copy of the bid tabulation sheet prepared at the time the
                                       bids are registered.

                                       This procedure accomplishes the following:

                                 •     resolves non-concurrence prior to contract award,
                                 •     eliminates possible pressure on the Procurement Officer,
                                 •     reduces the possibility of erroneously notifying the wrong bidder that may
                                       expose the City to liability,
                                 •     fosters better relations with contractors doing business with the City, and
                                 •     assures that the award is made on the most economically sound judgment.

             (d)                       approves and forwards recommendations, reviews bids with Procurement
                                       Officer, and makes recommendations for purchase or award.


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4.           Procurement Services reviews recommendations and, if they concur, makes award
             accordingly per evaluation criteria and the Agency's recommendations and judgment.

             In the case of a disagreement, Procurement Services arranges a conference with the
             Agency to develop a mutually acceptable recommendation.




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NO. 31                    BID EVALUATION/LOWEST RESPONSIVE, RESPONSIBLE
                          BIDDER


The purchase or award of a contract for supplies, materials, equipment, or services is made on
the basis of competitive bids, whenever possible.

Award for competitive bids is made to the lowest responsive, responsible bidder. Multiple
awards may be considered at the exclusive determination of Procurement Services if so specified
in the Invitation for Bids.

POLICY:

1.           The following criteria are utilized to determine the lowest responsive, responsible bidder
             on purchases or contracts:

             (a)                       best interest of the City and its inhabitants;

             (b)                       ability, capacity, and will of the bidder to perform the contract or provide
                                       the service required;

             (c)                       ability of the bidder to perform the contract or provide the service, within
                                       specified deadline, without delay or interference;

             (d)                       character, integrity, reputation, judgment, experience and efficiency of the
                                       bidder. The City reserves the right to bar individuals/firms from bidding if
                                       they have been barred by other localities;

             (e)                       bidder's performance in previous contracts or services;

             (f)                       previous and existing compliance by the bidder to perform the contract or
                                       provide the service, as well as compliance with all other applicable
                                       federal, state, and local statutes;

             (g)                       equipment, personnel, and facilities available to the bidder to perform the
                                       contract or provide the service;

             (h)                       sufficiency of financial resources and ability of the bidder to perform the
                                       contract or provide the service;

             (i)                       quality, availability, and adaptability of supplies, materials, equipment, or
                                       services to the particular use required;

             (j)                       ability of the bidder to provide future maintenance and service for the use
                                       of the subject purchase or contract;



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             (k)                       amount and conditions, if any, of the bid;

             (l)                       accessibility of the bidder to City officials; and

             (m)                       utilization of minorities within bidder's work-force (HRC-2).

2.           Criteria, other than low price, used for determining lowest responsive bidder must be
             clearly demonstrated and substantiated.

3.           Only documented evidence will be considered in reviewing the performance record of a
             responsive, responsible bidder.

4.           Life cycle costs can be considered as a criterion in determining lowest bid and shall be
             duly pointed out in the bid invitation specifications.




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NO. 32                    TIE BIDS


POLICY:

1.           In case of a tie bid, preference shall be given to goods, services, and construction
             produced in the city of Richmond or provided by persons in city of Richmond, if such a
             choice is available; otherwise, the tie shall be decided by lot, unless the provisions of
             Section 22.1-4 apply.

2.           Whenever a bidder is a resident of any other state and such state under its law allows a
             resident contractor of the state a preference, a like preference may be allowed to the
             lowest responsible bidder who is a resident of this State.

3.           In any contract which is to be awarded through competitive sealed bidding, if there are
             equal bids among qualified bidders, then the contract shall be awarded to the contractor
             who will be able to provide the greatest degree of accessibility to the City officials who
             will be administering the contract.

4.           If more than two bids received are tied, the City shall compare (i) location, (ii) payment
             terms, (iii) delivery terms, and (iv) other terms and shall select the bid most favorable to
             the City based on that comparison, which shall be documented in writing.

5.           If none of the foregoing provisions of this section resolve the tie, the Director may cancel
             the solicitation and re-bid. Records shall be kept of any proceedings connected with tie
             bids.




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NO. 33                    CONTRACTS: PROFESSIONAL AND NON-PROFESSIONAL
                          SERVICES


Contracts for professional and non-professional services are authorized by the Director of
Procurement Services pursuant to guidelines stated in the Procurement Code.


DEFINITION:

Professional Service Contract - A contract for services within the scope of the practice of
accounting, actuarial services, architecture, land surveying, landscape architecture, law,
dentistry, medicine, optometry, pharmacy or professional engineering.

Non-Professional Service Contract - A contract for any services not specifically identified as
professional services.

POLICY:

1.           Use of a professional or non-professional services contract must be justified. A contract
             may be authorized when one or more of the following conditions exist:

             (a)                       Adequate technical expertise is not available within the City.

             (b)                       Due to existing workload, the additional work would strain the Agency's
                                       personnel resources.

             (c)                       It would be more cost-effective to contract out rather than employ
                                       additional permanent staff.

             (d)                       An unbiased review of staff recommends the proposed solution as the best
                                       possible answer.

             (e)                       Previous experience is required, or new and innovative approaches
                                       provide a better solution.

2.           All professional services contracts over $30,000 shall be considered under the process of
             competitive negotiation. This method of source selection is based on responses to the
             City's Request for Proposal (RFP) process.

             All offerors shall be accorded fair and equal treatment in regard to discussion and
             revision of proposals after submissions, and prior to award, to obtain the best and final
             offer. In conducting discussions, there shall be no disclosure towards the identity of, or
             information derived from, the competing offerors. Proposal details are considered
             confidential until the announcement of the Intent to Award or the contract is awarded.



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             Proprietary information will be kept confidential in accordance with section 22.1-38 of
             the Procurement Code.

             Except for the factors stated in the RFP, no other criteria shall be used to evaluate offers.
             The award shall be made in writing by the Director of Procurement Services.

             The contract file shall contain an evaluation sheet showing total scores for each firm.

2.           The Agency shall be responsible for the administration and supervision of services
             rendered under professional and non-professional service contracts, and shall keep
             Procurement Services informed of progress and completion of contract.


PROCEDURES FOR PROFESSIONAL SERVICE CONTRACTS $30,000 AND UNDER
(AND NON-PROFESSIONAL SERVICE CONTRACTS $50,000 AND UNDER):

DOCUMENTS:                             Professional/Non-Professional Service Contract

1.           Agency:

             (a)                       checks the contractual database located on Starnet or contacts
                                       Procurement Services to make sure that the City does not already have a
                                       contract for the desired services;

             (b)                       identifies need and develops scope of work;

             (c)                       solicits three (3) proposals from firms or individuals capable of providing
                                       desired services; at least one solicitation should be from a minority
                                       vendor;

             (d)                       writes a memo to the Director of Procurement Services requesting
                                       permission to establish a contract with the lowest responsive/responsible
                                       vendor. This memo should identify the scope and reason for the work,
                                       and basis for selecting the desired vendor;

             (e)           works with Procurement Services to prepare a contract, if required, (1
                           original and two (2) copies) using the standard form. A completed Price
                           Agreement Release form (PG) must be submitted to encumber the funds
                           even if the Agency is on-line. .
             Note: Steps d. and e. can be done simultaneously.

2.           Procurement Services:

             (a)                       prepares the contract and circulates it for the required signatures: vendor,
                                       Agency Director, and Human Resources, if the contract is with an
                                       individual. The Agency may be asked to assist in this step.


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             Note: If the contract is with an individual, it is the Agency's responsibility to
                   ensure that a Form 1099 is on file with Finance.

             Note: The Office of the City Attorney must approve any deviation in terms and
                    conditions from the City’s standard contract.

             (b)                       processes the contract and enters PG into Advantage Financial and
                                       forwards one (1) copy of the contract to the Agency and one (1) copy to
                                       the vendor);

             (c)                       distributes the Purchase Order to the vendor, Agency, and Finance.

3.           Vendor invoices Agency directly.

4.           Agency:

             (a)                       prepares Receiver's Report;

             (b)                       submits Receiver's Report and vendor invoice to Finance for payment.

5.           Finance processes payment to vendor.

PROCEDURES FOR PROFESSIONAL SERVICE CONTRACTS OVER $30,000
AND NON-PROFESSIONAL SERVICE CONTRACTS OVER $50,000:

1.           Agency:
             (a)                       determines the need for a Professional/Non-Professional Service Contract
                                       and its compliance with the specified scope;

             (b)                       submits a RFP request form to the Director of Procurement Services
                                       justifying the need and requesting procurement of specific services
                                       through competitive negotiation.

             (c)                       develops specification for a Request for Proposal (RFP), with the
                                       assistance of and format provided by Procurement Services, including:
                                                      scope of services - description of proposed project,
                                                      background - history behind the need for the desired
                                                      services,
                                                      desired qualifications of the vendor,
                                                      proposed submittal format,
                                                      City's terms and conditions,
                                                      insurance that may be required (The Division of Risk
                                                      Management and the Office of the City Attorney should be
                                                      consulted for advice concerning special coverage required),
                                                      criteria by which to judge proposals (Two are required in
                                                      every RFP; (1) minority participation [20% of the total


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                                                                  100% available], and (2) accessibility of the vendor to City
                                                                  personnel.), and
                                                                  required forms (HRC, Drug Free Workplace and Minority
                                                                  Business Utilization Affidavits, etc.).
                    Note: Items b & c should be completed and submitted together.

                    Note: For Professional Services only, the RFP shall not ask for cost
                           until the negotiation stage.

             (d)                       consults with Procurement Services to determine if a pre-proposal
                                       conference is needed;

             (e)                       sends specification and a bid list of prospective contractors to
                                       Procurement Services for review and recommendation.

2.           Procurement Services reviews specifications and, if in order, develops RFP and returns it
             to the Agency for approval. Procurement Services, will assign a proposal number and an
             opening date and time.

3.           Agency makes recommended changes and returns to Procurement Services on plain
             white paper, or by e-mail attachment for final processing.

4.           Procurement Services:

             (a)                       prepares the RFP document along with a cover sheet that lists the closing
                                       date, description of services, and information regarding a pre-proposal
                                       conference, if one is to be held;

             (b)                       prepares advertisements for the newspapers including a brief description
                                       of the requested services, location, place where the RFP can be obtained,
                                       time, date and location of submission, and award criteria;

             Note: The Agency is responsible for the cost of the advertisements and will be
                    billed directly by the newspaper. The Agency may also be responsible for
                    the printing and mailing costs of large volume bulk mailings of the RFP.

             (c)                       mails a copy of the RFP to all firms identified by the using Agency and
                                       other interested parties requesting a copy of the RFP;

             (d)                       makes a public announcement at least ten (10) calendar days prior to the
                                       date set for receipt of proposals. Public notice shall be given by posting
                                       the RFP in a public area normally used for posting public notices along
                                       with advertisement in a local newspaper of general circulation. Additional
                                       advertisements in professional journals or publications may be utilized if
                                       warranted;


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             (e)                       non-publicly opens and lists the proposals for record at the designated
                                       time and date. The responsive proposals will then be forwarded to the
                                       Agency for review and recommendation;

             Note: If a firm fails to meet the HRC-2 requirement it will be deemed non-
                   responsive, unless the City Manager grants a waiver.

             (f)                       declines proposals received after the deadline and returns them unopened.
                                       No exceptions are made to this policy.

             Note: With the approval of the Director of Procurement Services, professional
                   service contracts $30,000 and under may be solicited for award by the
                   Agency without the use of the RFP.

5.           Professional Service Contracts exceeding $30,000 or Non-Professional Service Contracts
             exceeding $50,000 shall be awarded in the following manner: the Director or Agency
             Head will select a chairperson and appoint an evaluation committee. At least one
             member of this committee shall be an employee of the Agency. The Procurement Officer
             shall participate as a non-voting member of the evaluation committee to provide
             procedural guidance. Non-employees may be utilized by the Agency to share their
             expertise and guidance to the committee in a non-voting capacity only.

6.           The Evaluation Committee:

             (a)                       evaluates and scores the proposals;

             (b)                       determines the firms to be interviewed based on the best responses to the
                                       evaluation criteria outlined in the RFP. No other criteria or factors, than
                                       those specified in the RFP, are used in the evaluation.

             The Evaluation Committee, in conjunction with the Procurement Officer, determines the
             shortlist of firms for the interviews. The Evaluation Committee can, upon the approval
             of the Director of Procurement Services, cancel the interviewing stage and move directly
             to the negotiation stage. The reason for such a determination must be documented.

7.           Procurement Services arranges personal interviews for each selected offeror with the
             Evaluation Committee.

8.           The Evaluation Committee:

             (a)                       interviews each offeror separately,

             (b)                       conducts the interviews based on the evaluation criteria that may include
                                       any of the following:



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                                       management and technical ability (experience),
                                       approach to the problem (imagination and innovation, methodology),
                                       understanding of the City's primary objectives,
                                       qualification of representatives/staff (relevant experience),
                                       knowledge of local conditions,
                                       communication skills,
                                       confidence and positive attitude (presentation),
                                       appropriateness of presentation,
                                       conformity to time schedule with City requirements,
                                       result of City's reference check,
                                       minority utilization plan: majority firms allocating twenty percent (20%)
                                       (City’s suggested participation level) or more to a minority firm, and
                                       minority firms automatically receive the full 20 points. Majority firms
                                       allocating less than 20% receive points based on the following formula:
                                       points equal to % allocated and
                                       cost (non-professional contracts only).

             Note: Offerors are allowed to elaborate on their qualifications and performance
                   data, staff expertise, or alternate concepts.

             Discussion of non-binding estimates of total costs including design, construction,
             and life cycle costs are also permitted, as are the methods in arriving at these
             estimates.

             In conducting interviews, there shall be no disclosure of the identity or
             proprietary information of competing offerors to each other or to the public in
             accordance with section 22.1-38 of the Procurement Code.

             (c)                       ranks all participants using the pre-established criteria based on
                                       professional qualifications and merits;

             (d)                       schedules and conducts negotiations. Professional contracts require
                                       negotiation with the top ranked offeror only. If satisfactory and
                                       advantageous negotiations can be made with the top ranked offeror, the
                                       award is granted. If not, negotiations are formally terminated and
                                       continued with the succeeding offerors until such a contract can be
                                       satisfactorily negotiated.

                                       Non-professional contracts require negotiation with the top two (2)
                                       offerors. If only one offeror turns out to be fully qualified or if one offeror
                                       is clearly more highly qualified than the others, the committee prepares a
                                       written statement justifying its basis for the selection. The contract may
                                       then be awarded to that offeror upon the approval of the Director of
                                       Procurement Services.




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             Note: The evaluation committee scores produced as a result of the interviews
                   will determine the top firm(s) with which to begin negotiations.

             (e)                       maintains a complete file on the interview and negotiation process
                                       including a score sheet and rank of each offeror.

9.           Procurement Services posts an Intent to Award, indicating the successful offeror, and
             notifies the unsuccessful offerors of the selection of award.

10.          Agency consolidates the negotiated contract work papers including a copy of the original
             RFP, original proposal submitted, and any negotiated changes and submits to
             Procurement Services.

11.          Procurement Services prepares the contract for signatures.

12.          Procurement Services:

             (a)                       advises the contractor through the "Letter of Transmittal" that the contract
                                       is not official until signed by the Director of Procurement Services, and
                                       any work performed prior to such authorization will be done at the
                                       offerors own risk;
             Agency:

             (a)                       reviews and signs the contract document in the space provided on the
                                       standard form, and processes a Price Agreement Release (PG) to
                                       encumber the funds.

             Note:        Contracts over $100,000 must also be signed by the City Manager. Contracts that
                          modify the standard contract form must be “approved as to form” by the Office of the
                          City Attorney. Other signature requirements may apply depending on the nature of the
                          contract or the Agency for which Procurement Services procured the contract.

13.          Procurement Services:
             (a)          has contract signed by the Director or his/her designated representative,
                          and returns a properly executed copy and PG Form (less Procurement
                          Services copy) to Agency and vendor;

14.          Agency:
             (a)                       properly administers contract and supervises field performance of
             contract;

             (b)                       submits Partial Receiver's Reports, if required, citing PG or Purchase
                                       Order number to Finance to make partial payments to the vendor; submits
                                       a Final Receiver's Report to Finance for final payment to the vendor.
NO. 34                    CONSTRUCTION CONTRACTS



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Construction contracts (Capital Improvement or Operating Budget) are made based on plans and
specifications prepared by the appropriate City Agency. For construction contracts, Procurement
Services accepts sealed competitive bids.

POLICY:

1.           Construction contracts (Capital Improvement or Operating Budget) are made based on
             plans and specifications prepared by the appropriate City Agency. For construction
             contracts, Procurement Services accepts sealed competitive bids.

2.           “Construction means building, altering, repairing, improving or demolishing any
             structure, building, road, street or highway, and any draining, dredging, excavation,
             grading or similar work upon real property.” Richmond City Code § 22.1-3 (1993).

3.           Agencies should consult with Procurement Services at the earliest feasible date to
             determine the lead time required for a contemplated project.

4.           A Request for Qualifications to identify qualified firms must be issued for any
             construction project in excess of $200,000 unless the Director of Procurement Services
             determines that this process will not be in the City’s best interest. Qualified firms
             comprise the pool from which bids are solicited for these projects. Only pre-qualified
             firms may submit bids in compliance with the City’s established bid process. The
             Director of Procurement Services may authorize the use of a Request for Qualifications
             for non-construction contracts.

5.           The Agency may designate and retain the services of an architect, engineer or appropriate
             professional specialist to develop, design, prepare plans and specifications, supervise
             performance of contract work, or other tasks not inherently the responsibility of City
             personnel.

6.           If applicable to the services required, multiple awards may be made from a single
             Invitation for Bids. Such intent shall be clearly stated in the solicitation along with the
             procedure for contractor rotation.

7.           Competitive sealed bids regardless of dollar amount are received at Procurement Services
             in strict compliance with the City’s established bid process.

8.           Procurement Services in cooperation with the Agency makes contract award to the lowest
             responsive, responsible bidder or bidders.

8.           The Agency, or designated representative, involved in the construction project is
             responsible for supervision and performance of the contract. When a potential conflict
             arises in the performance of the contract, the Agency should notify Procurement Services
             for monitoring purposes.


PROCEDURE FOR REQUEST FOR QUALIFICATIONS:

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DOCUMENTS:                             Price Agreement Release Form (PG); Request for Qualifications (RFQ);
                                       Various Other Contract Forms

WHEN USED:                             For all programs or projects included in the approved Capital
                                       Improvement Budget that are performed under contract, or for
                                       performance of Operating Budget remodeling, renovating, improvement,
                                       maintenance or demolition projects under contract.

1.           Agency:

             (a)                       discusses the character, use and scope of the project with a City
                                       engineering agency, if appropriate, and consults the staff of other
                                       departments if the project requires input from that agency;

             (b)                       determines the need for construction procurement. If the project is under
                                       $200,000, skip to Procedure for Invitation for Bids;

             (c)                       prepares preliminary design specifications and plans;

             (d)                       identifies the specific trades involved in the construction project by dollar
                                       value and nature of work, completes and forwards to Procurement
                                       Services a completed Construction Request Form along with preliminary
                                       plans and specifications;

             (e)                       forwards a draft RFQ to Procurement Services including:

                                       •      purpose of qualifications and description of the project
                                       •      proposed submittal format
                                       •      critical areas of consideration outside of the standard criteria
                                              established in the RFQ (criteria will always include minority
                                              participation)
                                       •      other information that the Agency deems appropriate;

             (f)                       forwards a list of prospective contractors to Procurement Services;

             (g)                       provides the name of three (3) to five (5) individuals assigned to sit on the
                                       Evaluation Committee. The Agency representative will serve as the
                                       committee chair and is responsible for preparing a written
                                       recommendation to Procurement Services;

             (h)                       in conjunction with Procurement Services, establishes a mutually
                                       convenient date and time to hold the proposal review and evaluation.




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2.           Procurement Services reviews the RFQ and, if in order, returns it to the Agency with
             approval to prepare qualification documents. At this time, Procurement Services assigns
             an RFQ number and opening date and time.

3.           Agency makes recommended changes and forwards a copy on plain white paper, e-mail
             attachment or a diskette to Procurement Services.

4.           Procurement Services:

             (a)          reviews and finalizes the RFQ, assigns a procurement number and establishes a
                          receipt date and time;

             (b)          ensures that the RFQ consists of a cover sheet that lists the receipt date, project
                          description and contact information;

             (c)          prepares advertisements for the newspapers including a brief description of the
                          requested services, method by which the RFQ can be obtained and the time, date
                          and location of submission.

             Note:         The Agency is responsible for the cost of the advertisement and will be
                          billed directly by the newspaper.

             (d)          forwards a copy of the RFQ to various plan houses and prospective contractors.
                          RFQ packages should be sent by electronic mail whenever feasible;

             (e)          issues any corrections or clarifications in the form of a written addendum;

             (f)          non-publicly opens and lists the qualification statements for record at the
                          designated time and date; prepares an RFQ summary to determine
                          responsiveness;

             (g)          requests corrections or clarifications from contractors, if needed. Corrections
                          should be made within forty-eight (48) hours of the request;

             Note: Firms failing to submit the requested information within the established
                   time frame may be deemed non-responsive.

             (h)          forwards all responsive qualifications to the Agency and MBE Office for review;

             (i)          upon completion of the evaluation process, forwards a letter to each firm
                          submitting a statement that provides the status of the firm’s qualifications. If a
                          firm is found not qualified, the reasons shall be clearly stated in the notification.


              Note: If a firm fails to submit the HRC-2 form, it may be deemed non-
                    responsive.

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5.           The Evaluation Committee:

             (a)          consists of between three (3) and five (5) individuals, not solely from the
                          requesting Agency, technically capable of evaluating the strengths, weaknesses
                          and experience of each firm. A representative from Procurement Services shall
                          always be included in the evaluation process as a non-voting member; the MBE
                          office shall be kept abreast of evaluation developments and will review and
                          approve the past and proposed MBE rankings assigned. Non-employees may be
                          utilized by the Agency to share their expertise and guidance to the committee in a
                          non-voting capacity only.

             (b)          evaluates and scores the qualifications using the criteria established in the RFQ.
                          No other criteria or factors other than those specified in the RFQ are used in the
                          evaluation and scoring of the statements;

             (c)          determines the contractors to be qualified to bid on the proposed project based on
                          the best responses to the RFQ. Typically, a firm receiving a score of 70 or above
                          is deemed qualified unless a clear and definite break is evident by the average
                          scores;

             (d)          The Procurement Officer will compile an average score based on technical merits
                          and overall score and forward to the committee chairperson for review;

             (e)          The chair of the evaluation committee develops a complete file on the review of
                          the qualification process, including a score sheets and rank of each firm. The
                          chair then forwards the original documents, along with the recommendation, to
                          Procurement Services for review and final approval;




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PROCEDURE FOR INVITATION FOR BIDS:


1.           Responsible engineering agency finalizes designs, prepares specifications and performs
             other necessary work, either with City personnel or under a professional services
             contract.

2.           All involved Agencies approve plans and specifications. Procurement Services will
             perform a procurement review during the development stage.

3.           Procurement Services approves plans, specifications, Invitations for Bids (IFBs), pricing
             structure and all related documents for bidding requirements. If the Agency is providing
             reproduction, Procurement Services will prepare and forward to the Agency the IFB and
             the specification front-end documents.

4.           Agency provides Construction Request Form. Information regarding fund codes and
             deposit amounts must be included unless the Agency is obtaining its own printing
             services.

5.           Responsible engineering agency prepares sufficient copies of Invitations for Bids
             including drawings and specifications for Procurement Services.

6.           Procurement Services:

             (a)          prepares advertisements for the newspapers including a brief description of the
                          requested services, method by which the IFB can be obtained, the pre-qualified
                          firms (if applicable), the cost of bid documents and the time, date and location of
                          submission;

             Note: The Agency is responsible for the cost of the advertisement and will be billed
                   directly by the newspaper.

             (b)          prepares a Notice of Proposed Work and sends to firms on the bid list or pre-
                          qualified list, plans house listing, and posts the Notice on the public information
                          boards;

             (c)          furnishes copies of the bid documents to prospective bidders and subcontractors
                          upon payment of required non-refundable deposit;

             (d)          provides copy of Vendors List upon request;

             (e)          receives, opens and tabulates bids at the designated date and time. In compliance
                          with State guidelines, construction bids are received on one day and opened
                          twenty-four (24) hours later.




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             (f)          evaluates bids for responsiveness and forwards responsive bids to Agency for
                          review.




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7.           Agency:

             (a)          reviews submitted bids and makes written recommendation to Procurement
                          Services for approval of award including confirmation of availability of funds and
                          respective account numbers;

8.           Procurement Services:

             (a)          reviews recommendation and other pertinent information for accuracy and
                          completeness.    If Procurement Services concurs with the Agency’s
                          recommendation, issues Intent to Award memo that is posted on the Notice
                          Boards;

             (b)          prepares the contract and bond documents in triplicate and forwards to the
                          successful contractor. The contract documents consist of the Request for
                          Qualifications, Contractor’s Submittal, the Invitation for Bid, the Bid, the General
                          Conditions of the Contract, Special Provisions, Performance Bond, Payment
                          Bond, Certificate of Insurance, Drawings, Specifications, Addenda, Minority
                          Enterprise Business forms, written Change Orders, extra Work Orders, and
                          Agreements;

             (c)          obtains appropriate signatures, which include but are not limited to the
                          Contractor, the Agency Director, the City Attorney, the Director of Finance, the
                          Director of Procurement Services, and the City Manager;

             (d)          makes distribution of fully executed contract. Prepares and distributes the
                          contract extract. Enters the data in Advantage Financial;

             (e)          returns bid bonds;

9.           Agency:

             (a)          issues PG that identifies the contractor, amount of contract and a description of
                          the scope of work;

10.          Procurement Services:

             (a)          receives PG, and if in order, distributes copies of the purchase order;

11.          Contract Administration:

             1.           Agency

                          (a)          in conjunction with Procurement Services, issues Notice to Proceed to the
                                       contractor, which shall be the official start of the performance time;



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                          (b)          supervises field performance on contract and notifies Procurement
                                       Services, in writing, of all contract problems, meetings, disputes, pending
                                       changes and other information necessary for a complete contract file;

                          (c)          ensures compliance with Contract Documents, including submission of
                                       provisional insurance (Builder’s Risk, Blasting or other applicable
                                       insurance). Provides copies to Procurement Services for review and
                                       approval;

                          (d)          forwards copies of applicable correspondence to Procurement Services;

                          (e)          prepares and distributes Partial or Final Receiver’s Reports as appropriate
                                       to Finance Department;

                          (f)          develops and negotiates required Change Orders using the standard
                                       Change Order form. Attaches copies of itemized costs and supporting
                                       documentation in support of the Change Order. If possible, Change
                                       Orders should be initiated and finalized within the same billing period in
                                       which the change occurs;

             Note:         All Change Orders must be approved in writing in advance by the
                          Director of Procurement Services. All Change Orders or modifications
                          exceeding $100,000 must be approved in writing in advance by the City
                          Manager.

                          (g)          issues a modified PG for increase or decrease of project funding upon
                                       receipt of an approved Change Order;

                          (h)          monitors performance period and advises Procurement Services of any
                                       approved time extensions;

                          (i)          within five (5) days of project completion, prepares a performance report
                                       and forwards to Procurement Services for inclusion in the contract file;

                          (j)          maintains detailed contract file and retains in accordance with Agency
                                       guidelines;

                          (k)          provides copies of all warranties, guarantees, manuals, instructions,
                                       catalogs and parts lists to City Agency responsible for property
                                       maintenance;

                          (l)          provides invoicing and progress payments;




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             Note: Contractor submits invoice on agreed upon date. Agency, consultant, and
                   contractor agree on percent of work complete. Invoices must list the
                   percent of work performed by all subcontractors. MBE firms must be
                   annotated. Use of AIA invoice is recommended.

                          (p)          upon approval and agreement between the Agency, the contractor and the
                                       consultant, the Agency approves for payment less five percent (5%)
                                       retainage;

             Note: On a project lasting longer than twelve (12) months, the contractor may
                   invoice for completed and accepted work if readily identifiable and
                   separable from the project as a whole.

                          (r)          pays final retainage within ninety (90) days of project acceptance;

             Note: Warranties are generally implemented at the date of acceptance. The
                   contractor is generally warranted for a period of twelve (12) months, or
                   more if mutually agreed to, for all labor, materials, equipment and
                   supervision.




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NO. 35                    SERVICE/SUPPLY CONTRACTS


The City obtains mechanical, technical or maintenance-oriented services, for which Agencies do
not have staff, through contracts let by Procurement Services.

Some specific examples of service contracts include air conditioning maintenance, termite
treatment and control, window washing, machine shop services, rental of hauling equipment,
copier machine maintenance, etc.

Supply contracts provide a list of goods and supply items, their source of supply, prices to be
charged, terms and conditions, and other pertinent information.

Any contract not utilizing the City's standard contract document as provided by Procurement
Services requires the approval of the Office of the City Attorney.

POLICY:

1.           Service contracts are made on a Citywide basis for use by all City Agencies whenever
             feasible. Agencies are authorized to use certain service contracts through issuance of a
             Contract Extract that lists the Agency as an authorized user. All requests for service
             contracts must be forwarded to Procurement Services for bid or proposal and execution
             of a contract.

2.           Supply contracts are prepared by Procurement Services and include a list of supplies,
             materials, and equipment that may be purchased on each. Supply contracts may be used
             as required by City Agencies for periodic quantity orders, or for purchase of frequently
             requisitioned items. Agencies are authorized to use supply contracts as indicated on the
             Contract Extract of that particular contract, and must possess a copy of this extract prior
             to issuing a Price Agreement Release.

             When making a contract purchase, Agencies are required to cite the appropriate contract
             number on the Price Agreement. Items not specifically listed on the contract are not
             available for purchase from that contract, and any such purchase shall be deemed
             unauthorized.

             Upon receipt of goods or services, the Agency must promptly provide a Partial or Final
             Receiver's Report to the Finance Department. Failure to do so will result in loss of
             authority to use supply contracts.

             All City Agencies can use contracts for commodities and selected service agreements. In
             some cases, due to the nature of the project, the contracts will be for use by only one
             Agency.




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3.           Awards shall be made to the lowest responsive and responsible bidder.

             Bid specifications may be written to allow awards to lowest responsive, responsible
             bidder on the basis of zone*, batch, or line item.

             The Agency must have prior approval from the Director of Procurement Services before
             placing an order with another vendor that can supply the item at a lesser cost. The
             Director will consider approval on a case-by-case basis only if the cost differential is
             greater than twenty-five percent (25%).


             * The term “zone” refers to items belonging to a particular class, category or specific
               use; e.g., street lights, electrical poles, etc.




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NO. 36                    CHANGE-ORDERS, SUPPLEMENTS, AND ADDENDA


POLICY:

1.           A public contract may include provisions for modification of the contract during
             performance, but no fixed-price contract may be increased by the cumulative amount of
             $100,000 without the advance written approval of the City Manager. Richmond City
             Code § 22.1-55 (1993). The Director of Procurement Services must approve all change
             orders in advance of implementation.

2.           Whenever a change or modification is made to an original contract, Purchase Order,
             Invitation for Bids, Request for Proposals, or any other procurement document, it shall be
             executed through the use of an appropriate Procurement Services form, such as a
             Change-Order, Supplement or Addendum, depending on the circumstance and nature of a
             change, as follows:

Change-Order Forms/Construction are to be utilized exclusively for increase/decrease in the
original cost, extension (of duration) to complete a project, and any other modifications resulting
from unforeseeable events within the construction contracts. These forms shall be initiated by
the Agency after the contractor and the Agency have agreed to the changes. Procurement
Services processes these requests within five (5) working days.

             Note: Numerous situations may govern utilization of a Change-Order Form.
                   Refer to the General Conditions of the Construction Contract for details.

Change-Orders may be utilized to make any modification to any Purchase Orders including a
simple correction of a typographical error, change in cost, duration, scope of work, service, or
quantity, etc. This is handled by Procurement Services, generally at the request of an Agency.

An Agency must request a supplement in order to modify professional and non-professional
service contracts or commodity contracts. Procurement Services shall initiate the supplement, if
appropriate. Some changes can be made to a contract with a letter from Procurement Services to
the vendor, while other, more significant changes, will require the contract supplement.

Procurement Services uses addenda to modify, change, or supplement a public procurement
solicitation document. All vendors that are on the Vendors’ List, or those to whom plans and
specifications have initially been mailed, will receive a copy of the addendum. This includes
construction bids, services bids, Request for Proposal/Qualifications, Invitation for Bids, and all
other types of procurement documents.

Vendors shall submit any request for a contract increase/decrease directly to Procurement
Services. Procurement Services will forward the request to the Using Agency for approval or
disapproval of the request. If the Agency grants approval, the Agency shall forward a change
order form indicating such to Procurement Services for processing. The Procurement Officer



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shall process the appropriate documents to effect the change and issue proper notification to the
requesting vendor.



          Note:         All Change Orders must be approved in writing in advance by the Director
                        of Procurement Services. All Change Orders or modifications exceeding
                        $100,000 must be approved in writing in advance by the City Manager.




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NO. 37                    CONTRACT ADMINISTRATION

It is the responsibility of each City Agency to properly and fairly administer the contracts that
have been let for that Agency. The Department of Procurement Services will promulgate
standard procedures for the administration of City contracts. Agencies shall administer contracts
in accordance with the established guidelines.

The Agency shall be responsible for administering the following activities concerning City
contracts:

             Initiate post award contract meeting with vendor and appropriate City Agencies to
             coordinate “start-up” activities
             Coordinate the day to day delivery of the contracted goods and/or services
             Ensure that goods and/or services are delivered in accordance with the contract terms and
             conditions
             Certify that invoices are billed in accordance with contract costs, terms and conditions
             Ensure that the contract amount is not exceeded without the proper authorization of
             Procurement Services
             Ensure that the contract terms and conditions are not extended, increased, decreased or
             modified in any way without the approval of Procurement Services
             Monitor vendor/contractor performance and report appropriately to Procurement
             Services; initiate vendor complaint, if required
             Assist Procurement Services and the Office of the City Attorney in the resolution of
             performance and other contract-related issues.




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NO. 38                    SURPLUS PROPERTY

Whenever items are surplus, obsolete or unused in one Agency, they may be transferred to
another City Agency; sold, only by Procurement Services; or traded in on the purchase of needed
supplies, materials or equipment. Richmond City Code § 22.1-79(a) (1993).

POLICY:

1.           Agencies having surplus, obsolete or unused supplies, materials or equipment must
             declare such property “surplus” to Procurement Services by completing a “Declaration of
             Surplus Property” form, providing details (e.g., quantities, description, location, etc.) as
             indicated on the form. Richmond City Code § 22.1-76 (1993).

2.           Agencies declaring fixed asset items as surplus (including sale, retirement, replacement,
             trade-in or storage as surplus) must notify the Department of Finance in accordance with
             that department’s procedures. A copy of the “Declaration of Surplus Property” form (and
             “Continuation of Surplus Property” form, if applicable) shall be provided to Procurement
             Services.

3.           Transfers from one Agency to another can be made through completion of a “Fixed Asset
             Report” (to be submitted to Finance).

4.           When property is sold in lieu of being traded-in on the purchase of new supplies,
             materials or equipment, the amount received shall be credited to the General Fund with
             the exception of items from the Internal Service Fund, which will be credited to that
             Fund. Agencies should list all possible trade-in items on their replacement purchase
             requisitions.

5.           Surplus property not transferred to a City Agency or traded-in shall be disposed of in
             accordance with City policy.

             When sale by competitive bidding or public auction is determined in writing to be
             impractical or when no bid or offer is received, surplus property may, with the approval
             of the Director of Procurement Services, be sold on a negotiated basis. Richmond City
             Code § 22.1-79(b) (1993). Receipts shall be credited to the General Fund Income
             Account.

             Procurement Services may negotiate the sale of items to non-profit organizations or other
             governmental agencies when in the best interest of the City.

6.           Employees and dependents of employees of the disposing Agency and selling Agency
             may purchase City surplus property at uniform prices available to the general public, in
             accordance with the State and Local Government Conflict of Interest Act. Richmond
             City Code § 22.1-79(c) (1993).



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PROCEDURE FOR DECLARATION OF SURPLUS PROPERTY:

DOCUMENTS:                             Declaration of Surplus                         Property Form; Declaration of Surplus
                                       Continuation Form;

WHEN USED:                             For declaration of items (furniture, equipment, machines) as surplus when
                                       broken, worn out, obsolete, or no longer needed.

1.           Agency:

             (a)                       completes Declaration of Surplus Property form and forwards it to
                                       Procurement Services; and

             Note: For more than one item, a Declaration of Surplus Continuation form is attached.

             (b)                       completes Fixed Asset Disposal Notification in accordance with Finance
                                       procedures.

2.           Procurement Services:

             (a)                       arranges for pick up of surplus property from the Agency and forwards a
                                       signed copy of Declaration to the Agency for its records;

             (b)                       advises Agency to contact a commercial mover that is on the City contract
                                       if disposal or transfer of property cannot be moved by the Agency. (the
                                       Agency is responsible for the cost); and

             (c)                       authorizes opening of Surplus Property Warehouse at the request of an
                                       Agency so that surplus property may be transferred to area if needed.

PROCEDURE FOR TRADE-IN OF SURPLUS PROPERTY ON NEW EQUIPMENT:

DOCUMENTS:                             Purchase Requisition

WHEN USED:                             When new equipment is purchased to replace worn out, obsolete, or
                                       broken equipment.



                 Note:         If an Agency desires to trade in an old unit of equipment on the
                              purchase of new one, the Purchase Requisition should contain a
                              statement as follows:
                              "LESS TRADE-IN ON (Full name and designation of equipment)."




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1.           Procurement Services:

             (a)                       evaluates and makes a decision on requisitions for new equipment based
                                       on whether the existing equipment will be traded in on new equipment,
                                       transferred to another City Agency, or sold as surplus or salvage; and

             (b)                       proceeds with regular purchase procedure if decision is made to trade in
                                       equipment;

2.           Agency:

             (a)                       submit a purchase requisition to Procurement Services, including trade-in
                                       information.

             (b)                       completes Fixed Asset Disposal Notification to Finance.


             Note: The value of the trade-in will be deducted from the unit price of the new
                   equipment, and noted in the description of the item on the Purchase
                   Order.


PROCEDURE FOR TRANSFER OF PROPERTY FROM SURPLUS:

DOCUMENTS:                             Transfer of Property Form

The Surplus Property Warehouse stores all items and is open at the request of an Agency.

1.           Agency:

             (a)                       contacts Procurement Services to make arrangements to inspect the
                                       Warehouse for selection of items;

             (b)                       makes necessary selection;

             (c)                       completes Transfer of Property form for fixed assets and submits copy to
                                       Finance and Procurement Services.

             Note: The Agency shall provide transportation. - Surplus property that cannot
                   be utilized by any City Agency will be sold in the most advantageous
                   manner by Procurement Services, either by public auction, formal
                   bidding, or negotiated sale, or any other method in accordance with the
                   City's surplus property disposal policy.




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PROCEDURE FOR SALE OF SURPLUS, SALVAGE, OR OBSOLETE PROPERTY:

WHEN USED:                             When property is surplus to the needs of all City Agencies, has been
                                       condemned as unfit or unsafe for use, is obsolete or can no longer be used,
                                       or is a salvage material unusable by the City, it is sold or otherwise
                                       disposed of by Procurement Services.

1.           Procurement Services:

             (a)                       determines individual or group disposal depending on the nature of the
                                       property by using one of the following methods:

                                 •     sale by sealed bid,
                                 •     sale by informal bid,
                                 •     negotiated sale,
                                 •     public auction,
                                 •     fixed price sale,
                                 •     destruction (scrap), or donation.
                                 •     any other method deemed to be in the best interest of the City;

             (b)                       follows Virginia conflict of interest laws that prohibit sale to employees or
                                       dependents of employees of Procurement Services or the Agency where
                                       the surplus property in question originated except at uniform prices
                                       available to the general public in accordance with the State and Local
                                       Government Conflict of Interests Act (Richmond City Code § 22.1-79(c)
                                       (1993)); and

             (c)                       credits received income to the General Fund Account or Internal Service
                                       Income Account, as appropriate.




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NO. 39                    SALE OF ABANDONED, CONFISCATED, OR LOST
                          PROPERTY

Certain abandoned, confiscated, or lost property accumulated by the Department of Police and
other City Agencies may be periodically sold at public auction by Procurement Services.

POLICY:

1.           Upon meeting all statutory requirements, the Department of Police shall request that
             Procurement Services sell unclaimed property such as motor vehicles, bicycles, etc. at a
             public auction. Procurement Services may contract out this function to an auction
             company.

2.           Income received from the sale shall be credited to the General Fund Income Account.

3.           Employees of the disposing Agency and selling Agency are prohibited from buying the
             property except at uniform prices available to the general public in accordance with the
             State and Local Government Conflict of Interests Act. Richmond City Code § 22.1-79(c)
             (1993).

PROCEDURES:

WHEN USED:                             When items such as bicycles, motor vehicles, etc. are accumulated and
                                       held by the Department of Police. Upon meeting all of its legal
                                       requirements, the Department of Police requests that Procurement
                                       Services sell the property.

                                       All sales of abandoned, confiscated, lost, or unclaimed property shall be
                                       made in strict accordance with the State and Local Government Conflict
                                       of Interests Act, which prohibits sale to employees or dependents of
                                       employees of the Department of Procurement Services and Department of
                                       Police except at uniform process available to the general public.

1.           Police Department submits documentation to Procurement Services including:

                                 •     detailed description of property,
                                 •     engine, body, or frame number, as applicable,
                                 •     quantity, and
                                 •     location.

2.           Procurement Services:

             (a)                       in cooperation with an auction company, makes necessary arrangements
                                       for sale;
             (b)                       deposits proceeds from the sale in the appropriate fund account.


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NO. 40                    FEDERAL/STATE SURPLUS PROPERTY


Eligible municipalities are allowed to receive Federal or State Surplus Property, subject to
certain restrictions.


POLICY:

1.           Only authorized Agency personnel shall represent an Agency in selecting property for
             their use and will be the only ones to have access to the Federal/State Warehouse.

2.           Copies of authorized selected personnel signatures must be on file with Procurement
             Services and the State Warehouse.

3.           Agencies shall not dispose of any item received from Federal Surplus for at least one year
             after acquisition.

4.           When an Agency desires to have an employee included on the access list, it must contact
             Procurement Services to receive necessary forms and instructions.

5.           Only persons who have been authorized access through Procurement services will be
             allowed in the Warehouse to select and sign for the property.

6.           It is the responsibility of each Agency to keep its access list current.

7.           Procurement Services shall ensure the accuracy of forms filled out by using Agencies.

             Note: Transportation of surplus property from the Federal/State Warehouse
                   shall be the responsibility of the Agency.

PROCEDURES:

DOCUMENTS:                             DGS State Form; Departmental Purchase Request Form (PD)

WHEN USED:                             When designating an employee to have access to State Surplus Property
                                       Warehouse or when obtaining Federal surplus property from the
                                       Federal/State Surplus Property Warehouse, located at 6400 Darbytown
                                       Road. The Warehouse is open 8:00 a.m. to 4:45 p.m. daily.

1.           Agency:

             (a)                       appoints personnel for access to Surplus Property Warehouse and
                                       maintains an updated list on such personnel;




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             (b)                       consults with Procurement Services when items are desired and completes
                                       a PD form per stated instructions;

             (c)                       forwards the forms to Procurement Services and obtains surplus property
                                       (SP) number from Procurement Services;

             (d)                       ensures that only authorized personnel (those with a signature on file with
                                       the Federal /State Warehouse) visit the Warehouse.

2.           Procurement Services returns the PD form after the SP number has been placed on the
             form.

3.           The Agency's authorized personnel visits the Warehouse and makes selection of items or
             materials.

4.           State Warehouse Personnel:

             (a)                       prepares invoice upon selection of item(s) and places Procurement
                                       Services assigned SP number in upper right-hand corner of invoice;

             (b)                       gives original signed copy of invoice to City representative with item(s)
                                       selected.

5.           Agency:

             (a)                       completes PD form indicating prices and units, places complete SP
                                       number in description, and submits PD to Procurement Services;


             (b)                       completes a Receiver’s Report and submits it, along with the warehouse
                                       invoice, to Finance for payment.

             Note: Payment cannot be made until the PD is processed by Procurement Services.

6.           Finance processes documents for payment to the vendor.




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NO. 41                    CONTRACT PURCHASES FROM EXISTING CITY
                          CONTRACTS


POLICY:

Whenever possible, City Agencies should obtain goods and services from existing City
contracts.

PROCEDURES:

DOCUMENTS:                             Price Agreement Release Form (PG), Contract Extract

WHEN USED:                             To purchase goods or services from existing City contracts

Agency:

1.           Agency examines its file or book of Contract Extracts or reviews contracts on Advantage
             Financial or Starnet to determine whether or not the item or service is under contract. If
             there is not a current City contract for the desired items, the Agency may request that
             Procurement Services establish a contract for the specific items (including appropriate
             data for making a new contract, e.g., description, quantity, size, color, shape, etc.).

2.           Agency's Requisition Division:

             (a)                       verifies contract data furnished by the Agency staff by referring to
                                       Contract Extract file or Advantage Financial;

             (b)                       prepares PG, as per purchasing requirements, making sure that the
                                       Contract Number is filled in in the appropriate block, and processes PG
                                       internally for approval;

             (c)                       if on-line, keys document into Advantage Financial; if manual, forwards
                                       to Procurement Services.

                              Note:          If rush handling is necessary, use one of the following methods:

                              (a)                        If on-line, call Procurement Services prior to keying in the
                                                         order to obtain permission to give the Purchase Order (PO)
                                                         number to the vendor. You must indicate on the order that
                                                         this is a confirming PO by inserting the following information
                                                         during document entry: Type "Confirming phone order to
                                                         (Name of Contact) "and date.
                              (b)                        If on-line and need the hard copy of the order the next day,
                                                         key into Advantage Financial and call Procurement Services
                                                         before 9:00 a.m. the next morning and request that the order
                                                         be pulled and held for pick up.
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                        (c)                       Have the vendor code, vendor name, and PO number ready
                                                  when you call. All orders must be picked up before 12:00 noon.
                        (d)                       If manual, hand carry to Procurement Services, inform the
                                                  receptionist that you have a rush request and need to see a
                                                  buyer. The buyer will review the document and have it keyed
                                                  into Advantage Financial. The method of delivery will be
                                                  determined and appropriate procedure will be followed. The
                                                  Agency representative is required to stay with the document
                                                  until released by Procurement Services.


3.           Procurement Services:

             (a)                       keys document into Advantage Financial (if necessary);

             (b)                       approves document;

             (c)                       distributes copies of the Purchase Order to the vendor, the Agency, and
                                       Finance.

4.           Contractor delivers materials or furnishes services specified on the Purchase Order and
             invoices the City.

5.           Agency's Requisition Division:

             (a)                       completes a Receiver's Report, either Partial or Final;

             (b)                       submits Receiver’s Report and vendor's invoice to Finance for payment.

7.           Finance processes payment.

                    Note: If changes to the original PG are necessary, the Agency
                          prepares a Change-Order utilizing the Price Agreement
                          Release form.     To alert Procurement Services that it is a
                          Change-Order, the Purchase Order number of the original
                          order is placed in the top right corner of the PG used to make
                          the change. If the Agency is on-line, the Change-Order is
                          processed by the Agency by simply keying the change into
                          Advantage Financial.

                    Note: Contracts for furnishing supplies, material, equipment, or
                          services are established when demand by agencies indicates
                          that it is feasible.
                          In most cases, agencies are authorized to issue purchases
                          against these contracts directly by using a Price Agreement
                          Release form, if they are listed as Authorized Users on the
                          Contract Extract.
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                          If an Agency is not listed as an authorized user, they may request, in
                          writing to the designated buyer in Procurement Services, to be added as
                          an authorized user.

                          When a supply or service contract is used frequently over a period of time,
                          most Agencies issue a Price Agreement Release to cover purchases for a
                          monthly or quarterly period. When this is done, the PG must show the
                          exact or an estimated amount of funds before it will be accepted.

                          The Agency must have prior approval from the Director of Procurement
                          Services before placing an order with another vendor that can supply the
                          item at a lesser cost. The Director of Procurement Services will only
                          consider approval if the cost differential is greater than twenty-five (25%).




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NO. 42                                 PROCUREMENT REVIEW BOARD


PURPOSE:

This policy outlines the procedures for conducting hearings as part of the administrative
appeals procedure for procurement protests established in the Procurement Code.


POLICY:

This policy is set forth in accordance with section 22.1-112 of the Procurement Code,
captioned “Administrative Appeals Procedure.”

Specifically, section 22.1-112(a) provides that “An administrative appeals procedure is
hereby established for hearing protests of a decision to award or an award, appeals from
refusals to allow withdrawal of bids, appeals from disqualifications and determinations
of nonresponsibility, appeals from debarments or suspensions, and appeals from
decisions on disputes arising during the performance of a contract or any of these.”

Section 22.1-112(b) further provides that any act or decision as described in the above
paragraph may be appealed or protested by providing written notice to the Director of
Procurement Services. The Director must then provide a written response to the appeal or
protest. In the event that the decision of the Director is not satisfactory to the offeror,
bidder or contractor, the appealing or protesting party may, by written notice to the
Director, request a hearing before the Procurement Review Board.

Finally, section 22.1-112(c) provides for a Procurement Review Board comprised of
three (3) “disinterested individuals” appointed by the Director of Procurement Services.
Members of the Board shall not be employees of the City.


PROCEDURE:

Provided the appeal or protest is filed in accordance with the applicable section of the
Procurement Code, the Director of Procurement Services, within ten (10) days upon
receipt of the letter requesting a hearing, shall notify the members of the Procurement
Review Board and schedule a hearing date and time.

The Director shall assemble and distribute a packet of documents to the Board and the
offeror, bidder or contractor who filed the appeal or protest (the “Appellant”) no later
than three (3) calendar days prior to the date of the hearing. The packet shall contain a
copy of the letter of protest, the original IFB or RFP and any addenda or amendments, if
any, the bid or proposal of the successful offeror, bidder or contractor and the bid or
proposal of the Appellant, if different. The packet shall also contain position statements,
along with supporting documentation, from both the Appellant and the City, if the


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Director receives such statements and supporting documentation from the Appellant no
later than seven (7) calendar days prior to the date of the hearing. No documents shall be
distributed at the hearing.

The Appellant, the City, and any other offeror, bidder or contractor to the contested
procurement, (as well as any representative or other third party acting on behalf of any of
these) are prohibited from having any contact with any Board members regarding the
merits of the procurement or the protest at any point prior to the rendering of a decision,
other than is allowed during the scheduled hearing.

The Board shall select a chairperson from its membership prior to commencing the
hearing. The chairperson shall coordinate the hearing and ensure that the hearing is
conducted in a constructive, professional and orderly manner in which only relevant
matters are considered. Legal counsel shall be provided to the Board to serve as
parliamentarian and legal advisor during the hearing and to assist in the preparation of
the Board's decision and findings of fact.

At the hearing, the Appellant or its representative, and the City or its representative, each
shall be allowed up to one (1) hour to make presentations and arguments supporting their
positions. The Appellant shall present first and may reserve time for rebuttal if it so
designates prior to beginning its presentation. During the one (1) hour period, members
of the Board are allowed to ask questions of the presenters. Neither party may call
witnesses or cross-examine presenters for the other party. In addition, neither party may
make objections during the presentation of the other party. Although the Board shall
endeavor to ask all its questions within the one (1) hour period, the Board also may
extend the time for either party a maximum of fifteen (15) minutes in order to pose
additional questions.

In its discretion, the Board also may designate time to ask questions of any other
offerors, bidders or contractors present at the hearing. However, no offerors, bidders or
contractors other than the Appellant shall be allowed to make presentations or arguments
during the hearing.

All presentations and questions from the Board shall be limited to the grounds stated and
outlined in the protest letter from the offeror, bidder or contractor who filed the protest.

The Director shall arrange to have the hearing recorded. However, either party may, at its
own expense, provide for a court reporter to record the proceedings and prepare a
transcript.

The hearing shall be open to the public. After the hearing has concluded, the Board shall
meet privately to deliberate and reach a decision regarding the matters presented in the
protest, to receive necessary legal advice, and to draft its written decision and findings of
facts.

The decision of the Board shall be based strictly on the matters and things alleged in the
letter of protest. The Board may uphold or reverse the City's decision. However, the

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Board shall not have the authority to award a contract to the Appellant or to any other
offeror, bidder or contractor to the contested procurement. The procurement decision of
the City shall be upheld unless the Appellant can demonstrate that the City's decision
was not an honest exercise of discretion, but rather was arbitrary and capricious (i.e.
willful and unreasonable action without consideration or in disregard of facts or without
determining principle).

In accordance with section 22.1-112(c)(4) of the Procurement Code, the Board shall
issue a written decision containing findings of fact. The findings of fact shall be final
and conclusive and shall not be set aside unless the same are (i) fraudulent, arbitrary or
capricious; (ii) so grossly erroneous as to imply bad faith; or (iii) in the case of denial of
pre-qualification of a potential construction bidder, such findings were not based upon the
criteria for denial of prequalification set forth in section 22.1-41.1 of the Procurement Code. No
determination on an issue of law shall be final if appropriate legal action is instituted in a timely
manner.

The decision of the Board may be announced immediately following its deliberations or within
five (5) working days of the hearing. In any event, the decision shall be provided in written form,
and addressed to the Director. The Director shall immediately notify all interested parties of the
decision.

Either the Appellant or the City shall be entitled to institute judicial review, if such action is
brought within thirty (30) days of receipt of the written decision of the Board.




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                                                                                    SECTION FOUR
                                                                                          Glossary
Advantage Financial System:
The City's automated financial/accounting and purchasing system. (Formerly known as “LGFS”.)

Bid Evaluation:
The examination of bids after opening to determine the bidder's responsibility, responsiveness to
requirements, and other characteristics pertinent to award selection criteria.

Bidder:
One who submits a response to an Invitation for Bids.

Brand Name or Equal:
A specification used only to demonstrate the characteristics of a certain product; if another brand name
meets these characteristics, it is an equal.

Business:
Any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any
other private legal entity. Richmond City Code § 22.1-3 (1993).

Cancellation:
The termination of a procurement transaction or any portion thereof.

Capital Improvement:
An improvement related to the City's infrastructure, maintenance, remodeling of existing buildings,
facilities and equipment, purchase and installation of new equipment, and minor work of utilities or
public works nature.

Centralized Purchase Order (PC):
A type of purchase order that is the result of a purchase transaction initiated by a requisition.

Change-Order:
A written order approved by the Director of Procurement Services, directing the contractor to make
changes as mutually agreed upon by the Agency and contractor. Change-Orders are used for construction
contracts and to modify Purchase Orders.

City Charter:
An Act of the General Assembly of Virginia last amended in 1998 that sets forth the form of government
of the City of Richmond. The Charter states in general terms the functions and powers of City
government.

City Code:
Cited as “Richmond City Code (1993)” or textually referred to as “the Code of the City of Richmond
(1993)” in these policies and procedures, the City Code represents the codification of the City’s
ordinances (i.e., laws) of general application. Changes to the City Code require action by the City
Council. Chapter 22.1 of the City Code contains the City’s public procurement law, and these policies
and procedures refer to that chapter as the “Procurement Code.”


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City Warehouse:
Warehouse for the exclusive use of City Agencies, located at 3101 E. Main Street.

Competitive Negotiation:
A method of source selection that involves individual discussions between the City and the offeror on the
basis of responses to the City's Request for Proposals. Richmond City Code § 22.1-3 (1993).

Competitive Sealed Bidding:
The process of publicizing government needs, inviting sealed bids, conducting public bid openings, and
awarding a contract to the lowest responsive and responsible bidder. See Richmond City Code § 22.1-3
(1993).

Confidential Information:
Any information that is available to an employee only because of the employee's status as an employee of
the City and that is not a matter of public knowledge or available to the public upon request.

Construction:
Building, altering, repairing, improving, or demolishing any structure, building, road, street or highway,
and any draining, dredging, excavation, grading, or similar work upon real property. Richmond City
Code § 22.1-3 (1993).

Construction Management Contract:
A contract in which a party is retained by the City to coordinate and administer contracts for construction
services for the benefit of the City. It may also include, if provided in the contract, the furnishing of
construction services to the City. Richmond City Code § 22.1-3 (1993).

Contract:
All types of City agreements, regardless of what they may be called, for the procurement of goods,
services, insurance, or construction. Richmond City Code § 22.1-3 (1993).

Contract Extract:
A contract summary that specifies name, address, phone number, services, and terms and conditions of
services of a contractor. In addition, it also provides an exclusive list of Agencies that are authorized to
use the contract.

Contract Modification/Supplement:
Any written alteration in specifications, delivery point, rate of delivery, period of performance, price,
quantity, or other provision of any contract accomplished by mutual action of the parties of the contract.
Richmond City Code § 22.1-3 (1993).

Contractor:
Any person, company, corporation, or partnership having a contract with the City or an Agency thereof.
Richmond City Code § 22.1-3 (1993).

Cost Analysis:
The evaluation of cost data for the purpose of arriving at costs actually incurred or estimates of costs to be
incurred, prices to be paid, and costs to be reimbursed. Richmond City Code § 22.1-3 (1993).
Cost Data:




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Factual information concerning the cost of labor, material, overhead, and other cost elements which are
expected to be incurred, or which have been actually incurred by the contractor in performing the
contract. Richmond City Code § 22.1-3 (1993).

Cost-Reimbursement Contract:
A contract under which a contractor is reimbursed for costs that are allowable and allocable in accordance
with the contract terms and the provisions of Chapter 22.1 of the Code of the City of Richmond (1993)
and a fee or profit, if any. Richmond City Code § 22.1-3 (1993).

Debarment:
The barring of a person or company from participating in a procurement action because of previous illegal
or irresponsible action.

Departmental Purchase Request (PD):
A purchase transaction, up to and including $5,000, where the Agency is allowed to take one (1) quote or
over $5,000 and up to and including $30,000, where the Agency is allowed to take three (3) written
quotes (including one from a minority firm) and submit this information to Procurement Services so that a
Purchase Order can be issued.

Direct or Indirect Participation:
Involvement through decision, approval, disapproval, recommendation, or preparation of any part of a
purchase request, influencing the content of any specification or procurement standard, rendering of
advice, investigation, auditing, or acting in any other advisory capacity. Richmond City Code § 22.1-3
(1993).

Direct Purchase:
A purchase of specific items made by City Agencies without going through Procurement Services.

Disadvantaged Business:
A small business which is owned or controlled by a majority of persons, not limited to members of
minority groups, who have been deprived of the opportunity to develop and maintain a competitive
position in the economy because of social disadvantages. Richmond City Code § 22.1-3 (1993).

EEO-1 Form:
The form used by the Federal government to determine the employment profile of a company.

Emergency Purchases:
Expenditure of funds allowed by the Director of Procurement Services for purchase of supplies, materials,
equipment, and contractual services for Agencies without recourse to competitive bidding when the
Director has determined that “(1) a breakdown or failure of machinery or other equipment has occurred;
(2) a curtailment, diminution or termination of an essential service is threatened; or (3) a dangerous
condition has developed and that a procurement without recourse to competitive sealed bidding or
competitive negotiation is (1) needed to prevent loss of life or property; (2) essential to protect and
preserve the interests of the City and its inhabitants; (3) needed to maintain the proper functioning of the
City government; or (4) needed to maintain the efficient rendering of public services.” Richmond City
Code § 22.1-65(b) (1993).

Final Receiver's Report:
A document pursuant to which a final payment can be made after all offsets and claims are completed.
F.O.B.:



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“F.O.B.” means “Free on Board,” is qualified by place of shipment or place of destination, and may be
qualified by vessel, car or other vehicle. “F.O.B. place of shipment” requires that the seller ship the
goods as required by the Uniform Commercial Code (i.e., Title 8.2 of the Code of Virginia; see Va. Code
Ann. § 8.2-504) and bear the expense and risk of putting them into the possession of the carrier. Va.
Code Ann. § 8.2-319(a). “F.O.B. place of destination” requires that the seller must at his own expense
and risk transport the goods to that place and there tender delivery of them as required by the Uniform
Commercial Code (i.e., Title 8.2 of the Code of Virginia; see Va. Code Ann. § 8.2-503). Va. Code Ann.
§ 8.2-319(b). If the term is also F.O.B. vessel, car or other vehicle, the seller must in addition at his own
expense and risk load the goods on board. Va. Code Ann. § 8.2-319(c).

Formal Advertising:
A method of procurement, usually preferred by law in municipal and governmental procurement, that
announces the intention of the City to procure certain goods or services.

Formal Bid:
Invitation for bid issued for purchase requests over $50,000.

General Fund:
The general operating fund used for the day-to-day operation of the City.

Goods:
All material, equipment, supplies, printing, and automated data processing hardware and software.
Richmond City Code § 22.1-3 (1993).

HRC-2 Form:
A Human Relations Commission form utilized to obtain the employment profile and related information
from vendors/contractors. Required for all contracted purchases over $10,000.

IFB:
See Invitation for Bids.

Informal Bid:
Invitation for bid issued for purchase requests over $30,000 and up to and including $50,000.

Informality:
A minor defect or variation of a bid or proposal from the exact requirements of the invitation for bids or
request for proposals which does not affect the quality, quantity, or delivery schedule for goods, services,
or construction being procured, as determined by the Director of Procurement Services. Richmond City
Code § 22.1-3 (1993).

Insurance:
A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss
on a specified subject by specified perils. Richmond City Code § 22.1-3 (1993).

Intra-city:
Between/among (City) Agencies.

Inventory:
Goods in stock or an itemized list of a stock of goods showing volume and value.




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Invitation for Bids (IFB):
All documents, whether attached or incorporated by reference, utilized for soliciting sealed bids.

Invoice:
A list of goods or services, sent to a purchaser showing prices, quantities, and shipping charges for
payment.

Liquidated Damages:
Liquidated Damages are the amount of damages that parties to a contract may properly agree in advance
[are] to be paid for a loss that may result from a breach of the contract where damages are difficult to
determine. A liquidated damages clause in a contract is valid and enforceable when the amount fixed is
not out of proportion with the probable loss.

Minority Business Enterprise (MBE):
A business at least fifty-one percent (51%) of which is owned and controlled by minority group members
or fifty-one percent (51%) minority-owned and operated by minority group members or, in case of a stock
corporation, at least fifty-one percent (51%) of the stock which is owned and controlled by minority
group members. Within the City, the Division of Minority Business Enterprise of the Department of
Economic Development (referred to in these policies and procedures as the “MBE Office”) administers
the City’s HRC-2 and MBE programs. Richmond City Code § 22.1-3 (1993).

Minority Group Members:
Citizens of the United States who are Blacks, Hispanics, Asians, Indians, Eskimos or Aleuts. Richmond
City Code § 22.1-3 (1993).

Modification Order:
Also called a change-order (for Purchase Orders). See Change-Order.

NEI:
See Not-Encumbered Invoice.

Nominal Value:
An amount so small, slight or the like, in comparison to what might properly be expected, as scarcely to
be entitled the same, but in no case to be more than $30.00.

Non-Professional Services:
Any services not specifically identified by section 22.1-3 of the Code of the City of Richmond (1993) as
professional services. Richmond City Code § 22.1-3 (1993).

Non-Responsive Bid:
A bid that does not conform to the mandatory or essential requirements of the invitation for bids.

Not-Encumbered Invoice (NEI):
A City form utilized by Agencies to make direct purchase of authorized items and services.

Original Equipment Manufacturer (OEM):
The original manufacturer of a piece of equipment who maintains exclusive rights to the replacement of
parts and accessories to that equipment.

Partial Payment:



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The payment authorized in a contract upon delivery of one or more units called for under the contract, or
upon completion of one or more distinct items of service called for there under.

Partial Receiver's Report:
A report used to acknowledge partial delivery of goods or services by Agencies; sent to Finance for
payment.

PC:
See Centralized Purchase Order.

PD:
See Departmental Purchase Request.

Performance Specification:
Description of the performance of materials desired by the City without reference to brand names, etc.

Petty Cash Purchases:
Money from the General Fund, allowed to be expended by City Agencies up to $150.00 per purchase for
specified items and services only, pursuant to specific internal regulations.

PG:
See Price Agreement Release Form.

PO:
See Purchase Order Form.

Practical Source, Only:
A written determination by the Director of Procurement Services that, while there may be numerous
sources for an item or service, there is only one source practicably available for that which is to be
procured. See Richmond City Code § 22.1-64 (1993).

Price Agreement Release Form (PG):
A preliminary purchasing document required from the Agency to make purchases from existing City
contracts.

Price Analysis:
The evaluation of price data, without analysis of the separate cost components and profit as in cost
analysis, that may assist in arriving at prices to be paid and costs to be reimbursed.

Pricing Data:
Factual information concerning prices for items substantially similar to those being procured. Prices in
this definition refer to offer or proposed selling, historical and current selling prices. The definition refers
to data relevant to both prime and subcontract prices.

Procurement:
The combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection,
storage, payment, salvage, and disposal.

Professional Services:




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Work performed by an independent contractor within the scope of the practice of accounting, actuarial
services, architecture, land surveying, landscape architecture, law, dentistry, medicine, optometry,
pharmacy or professional engineering. Richmond City Code § 22.1-3 (1993).

Public Body:
Any legislative, executive or judicial body, agency, office, department, authority, post, commission,
committee, institution, board, or political subdivision created by law to exercise some sovereign power or
to perform some governmental duty, and empowered by law to undertake the activities described in the
Procurement Code. Richmond City Code § 22.1-3 (1993).

Purchase Order Form (PO):
A form utilized by City Agencies to formalize a purchase transaction with a vendor. The form provides a
written documentation stating all terms and conditions of the transaction and has a specific number
authorized by Procurement Services.

Purchase Requisition Form (RX):
An internal document, through which the needs for an acquisition, service, or contract are conveyed by
the authorized unit or Agency.

Qualified Products List:
A list of products that, because of length of time required for test and evaluation, are tested in advance of
procurement to determine which suppliers comply with specification requirements.

Recycled Paper:
Any paper having a total weight consisting of not less than fifty percent (50%) recovered materials, as
that term is defined for purposes of purchasing paper and paper products in 40 C.F.R. § 247.3 (2001), as
amended. Richmond City Code § 22.1-3 (1993).

Request for Proposal (RFP):
All documents, whether attached or incorporated by reference, utilized for soliciting proposals.

Request for Qualifications (RFQ):
All documents, whether attached or incorporated by reference, utilized for soliciting qualification
statements.

Responsible Bidder or Offeror:
A bidder or offeror who has the capability, in all respects, to perform fully the contract requirements and
the moral and business integrity and reliability that will assure good faith performance, and who has been
pre-qualified, if required. Richmond City Code § 22.1-3 (1993).

Responsive Bidder or Offeror:
A person who has submitted a bid that conforms in all material respects to the invitation for bids.
Richmond City Code § 22.1-3 (1993).

RFP:
See Request for Proposal.

RFQ:
See Request for Qualifications.
Rush Purchase:



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Purchases made during minor emergencies due to breakdown or failure of equipment; or for maintenance
of supplies, materials, or services when a need could not be anticipated; applicable purchases over $5,000
up to and including $30,000, utilizing Departmental Purchase Request (PD) form.

RX:
See Purchase Requisition Form.

Small Business:
A United States business which is independently owned and which is not dominant in its field of
operation or an affiliate or subsidiary of a business dominant in its field of operation. Richmond City
Code § 22.1-3 (1993).

Specification:
Any written description of the physical or functional characteristics of the nature of a good, service or
construction item. It may include a description of any requirement for inspecting, testing or preparing a
good, service or construction item for delivery. Richmond City Code § 22.1-3 (1993).

Standard Specifications:
Any written description of the standard of quality, performance, and other salient characteristics needed
to meet City requirements.

Subcontractor:
A party that contracts under the prime contractor to perform all or any part of the prime contractor's
obligations.

Supplement:
See Contract Modification/Supplement.

Surplus:
Items, materials, and equipment that are obsolete or not used by an Agency, that could be used by another
Agency, sold or traded in for new equipment and supplies.

Using Agencies (Agencies):
Any department, agency, bureau, board, commission, court, jail or jail forum, or other unit in the City
government.

Value Analysis:
An organized and systematic effort to analyze the function of systems, products, specifications, standards,
practices, and procedures for the purpose of satisfying the required function at the lowest total cost
effectiveness, consistent with requirements of performance, reliability, quality, and maintainability.

Vendor Performance Report:
Submitted by user Agency(ies) to Procurement Services for evaluation of a vendor/contractor's
performance.




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