19.1 Generally. This chapter is adopted to implement a Value-Based Procurement Program to help the City determine who is a responsible bidder or offeror during a procurement process when bids are close. The City is implementing this Program to promote the City’s interests in quality, cost-effective contracting. The City has examined the experience of its procurement units, and the experience of other communities, and finds that certain practices add value to the performance of City contracts. This Program is therefore adopted for the following purposes:
A. To promote value in City contracting by preferring responsible contracting parties that can better provide value in contracted services.
B. To reduce the City’s burden of administering poorly performed contracts and minimize overall costs to the City.
C. To encourage the development of responsible bidders and offerors in the bid pool who can deliver appropriate value to the City.
19.2 Applicability.
A. Generally. This Chapter 19 applies to contracts for operational and construction-related services. However, it shall not apply to any subcontractor, or to any of the following contracts: contracts not subject to Salt Lake City Code Title 3, Chapter 24; contracts subject to Salt Lake City Code §§ 3.24.115, 3.24.140, 3.29.150, 3.24.160, and 3.24.170; contracts subject to Procurement Administrative Rules Chapters 11, 13 and 14; selections based only on qualifications or where price is not the determinative factor for selecting a proposal; federally funded contracts; and contracts for supplies.
B. Affected Dollar Range. When this Program is applicable under Section 19.2(A), this Program will only affect bids or offers that fall within the following dollar ranges:
1. For contracts with an estimated value of $250,000 or less, the Program will apply to all bids or offers that fall within 2% of the lowest amount submitted.
2. For contracts with an estimated value of more than $250,000 but less than $1,000,000, the Program will apply to all bids or offers that fall within 1/2% of the lowest amount submitted plus $5,000.
3. For contracts with an estimated value of $1,000,000 or more, the Program will apply to all bids or offers that fall within $10,000 of the lowest amount submitted.
19.3 Determining Responsibility.
The City has determined that contractors provide a more appropriate value to the City and are more responsive to the City’s needs when certain practices enhance the contractor’s work environment, and that a modest preference is appropriate to obtain the benefit of those practices. The City has examined the following factors, and found them to be of benefit to promoting value in City contracting. The City shall therefore consider these factors when evaluating the responsibility of a bidder or proposer whenever this Program applies, and shall weight these factors according to the scale stated below.
When this Program is applicable, and if bids or offers are otherwise responsive, responsible and proper, the City will further evaluate responsibility by determining which bidder or offeror can demonstrate the most points based on the following factors (as defined below):
Factor Points
Policy of nondiscrimination ½ point
Sponsorship of state-compliant apprenticeship program(s) ½ point
Use of a pre-employment and “for cause” drug testing program ½ point
Local small business ½ point
19.4 Definition of Factors.
A. Policy of Nondiscrimination Factor. This factor is defined to include bidders or offerors that have adopted and implemented a written company policy stating they will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or sexual orientation. For purposes of this factor, “sexual orientation” means the status of being lesbian, gay, transgender, bisexual or heterosexual.
B. State-Compliant Apprenticeship Program Factor. This factor is defined to include bidders or offerors that have conducted an apprenticeship during the 12 month period preceding the submission of a bid or offer that is consistent with the requirements of Utah Code Title 35A, Chapter 6 (or any successor act), and the requirements of the U.S. Department of Labor Bureau of Apprenticeship and Training.
C. Pre-employment and “For Cause” Drug Testing Program Factor. This factor is defined to include bidders or offerors that have adopted and implemented a written company policy creating a drug-testing program for pre-employment and for testing based on cause consistent with the requirements stated in Utah Code Title 34, Chapter 38 (private employers), Utah Code Title 34, Chapter 41 (local governmental entities), or Utah Code Title 67, Chapter 19 (state) (or any successor acts).
D. Local Small Business Factor. This factor is defined to include bidders or offerors that have a fixed office or distribution point within City boundaries, possess a City business license stating a City address, employ no more than 30 full-time employees (meaning employees working forty hours per week, fifty weeks per year), and have annual gross revenues not in excess of $1 million.
19.5 Consideration and Award.
In any procurement process subject to this Program, the City will consider all of the matters set forth in Chapter 8 of these Procurement Rules before evaluating whether this Program applies to a given contract. The City shall then determine whether this Chapter 19 applies. If it applies, the City shall apply the factors set forth in this Chapter 19 to further evaluate the responsibility of the bidder or proposer to provide value to the City. The City shall make an award, if any, to the bidder or proposer who meets all of the foregoing requirements that apply. The City will develop forms to assist bidders and offerors in connection with this Program, and may adopt policies or other measures to help evaluate submissions and resolve protests consistent with the Procurement Code, and as determined by a Procurement Official. This Program will not be construed to prevent the City from implementing any other procurement measures. Every provision of this Chapter 19 is intended to be severable for the benefit of City contracting, and if any provision is later found to be invalid or unenforceable, such a determination will not affect the remainder or any other provision of this Chapter 19.
19.6 Contract. When the Program applies, the contract for the procurement in question will require the party entering the contract to maintain its implemented policy of nondiscrimination, its apprenticeship program, and its drug testing program throughout the duration of the contract if those factors were considered when awarding the contract. The contract will also provide that the City can recover liquidated damages if the party fails to maintain any factor considered when awarding the contract.
19.7 Implementation. In order to provide time to amend City documents, this Program shall apply to all procurements that the City advertises for the first time on or after March 1, 2005.
CURRENT REFERENCES: Salt Lake City Code §§ 3.24.030(O), 3.24.040 and 3.24.110
INITIAL EFFECTIVE DATE: July 26, 2004
EFFECTIVE DATE OF PRIOR REVISION: March 8, 2005
(Removal of living wage and health benefit considerations)
EFFECTIVE DATE OF CURRENT REVISION: (Date signed by Mayor) March 25, 2013 (Addition of City Code 3.24.115 to exclusions from Chapter 19)