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A. The City shall use a competitive procurement process in the award of all public contracts, except as exempted by State law or this chapter. Personal service contracts may be awarded as provided in this section or in BC 1.55.040.

B. Competitive procurement includes:

1. Invitations to bid and requests for proposals in compliance with State law and applicable rules. A process that involves a prequalification stage followed by an invitation to bid or request for proposals is a competitive process, provided the prequalification stage includes public notice equivalent to that required for invitations to bid and requests for proposals.

2. For contracts of $100,000 or less in value, obtaining bids or proposals from at least three potential contractors (limited solicitation).

3. Awarding contracts under a Federal or State master contract or purchase arrangement or program.

4. Awarding contracts on the same terms as an existing contract award by another governmental entity after a competitive procurement.

5. Awarding contracts for computer equipment, software and services based on obtaining bids or proposals from at least three potential contractors unless the City finds that fewer than three potential contractors provide the needed equipment, software or services.

6. Contracts awarded under ORS 279C.100 to 279C.125 and implementing rules, including contracts for related services.

C. The following contracts are exempt from competitive procurement:

1. Contracts exempted from competitive procurement by the Oregon Contracting Code.

2. Contracts under $10,000, which may be entered into by direct award.

3. Emergency contracts awarded in compliance with applicable statutes and rules. In the event the emergency is of a nature that requires immediate action to prevent damage to property or health (e.g., a major water line break or sewage overflow) the City Manager, or in the City Manager’s absence, the Chief of Police, Fire Chief and/or Public Works Director, may use all the means necessary to meet the emergency. Any emergency contract in excess of $100,000 shall be brought before the Contract Review Board for ratification at the next scheduled Council meeting.

4. Public facility improvement agreements entered into between the City and a person responsible for carrying out conditions of approval of a City land use decision.

5. Purchases of used goods when the cost of the used goods is substantially below the cost of new goods, and the City has made a reasonable effort to obtain the best quality goods at the lowest price. The City shall maintain a written record of its efforts to obtain the best quality goods at the lowest price, including a list of quotes obtained from other vendors.

6. Any other contracts where the public interest would be promoted by exempting the contract from the competitive bidding process; provided, that the Contract Review Board adheres to the Public Contracting Code and the Model Rules in making the exemption.

D. The City may use competitive procurement even if a contract is exempt from competitive procurement requirements. An exemption from competitive procurement does not relieve the City of the obligation to take reasonable measures to ensure that procurements are consistent with the policy of obtaining the best combination of quality and price.

E. Contracts awarded by competitive bids shall be awarded based on the lowest “life cycle” costs to the City. Life cycle costs include both initial cost and cost of operating, repair, maintenance and replacement. Contracts awarded by competitive proposals shall be awarded to the responsible proposer that provides the best combination of price and quality, and shall consider cost on a “life cycle” basis.

F. A procurement may not be artificially divided or fragmented to qualify for direct award or limited solicitation. A series of contracts with the same contractor for substantially similar work without a significant time between the contracts will normally be considered a single contract for purposes of determining whether an appropriate competitive selection process was used.

G. Notice for competitive procurements may be electronically published by the City and shall comply with State law. [Ord. NS-2210, 2013; Ord. NS-2174, 2011; Ord. NS-2159, 2011; Ord. NS-2145, 2010]