Purchasing and Bidding: Services, Equipment, Materials and Supplies

Contents

• Services
• Equipment, Materials and Supplies

Services

Washington cities or towns are not required to seek competitive bids for services, except towns, second class cities and code cities with a population under 20,000 who must call annually for bids to select a city's official newspaper. Counties are not required to seek bids for any services, except annually for bids to select a county's official newspaper. Other agencies are generally not required to seek bids for services. However, the agency's attorney should be consulted if there is a question about the need for bidding specific services.

Services are non-public works activities requiring labor, equipment, supplies and materials for which an agency contracts, on a periodic and/or routine basis.
Examples include:

• customized accounting software and ongoing support services, as opposed to purchase of an "off-the-shelf" program with minimal support
• cemetery, landscaping, building and grounds maintenance contracts (Note: Prevailing wages are required on public building service (janitorial) contracts (RCW 39.12.020).)
• utility billing services
• yearly contracts for snow and ice removal
• garbage collection and disposal (Note: Solid waste collection and disposal contracts do not have to be bid. An RFQ/RFP process as noted in RCW 35.21.156 can be used and is recommended.)
• maintenance contracts for office equipment, including computers
• official newspaper
• contracts for professional architectural, landscape architecture, surveying and engineering services

Contracts for professional architectural and engineering services require an advertising and negotiation process in accordance with Ch. 39.80 RCW. See Design Using Consultants in the Washington State Model Design and Construction Management Manual and Contracting for Professional Services ( 6.8Mb) - MRSC Information Bulletin #485. Contracts for other professional services (defined as activities such as consulting that have a primarily intellectual final product) may or may not require an advertising and negotiation process, depending on individual agency policies.

Equipment, Materials and Supplies

Many purchases made by agencies are not connected to a public works project. Items in this category include supplies, materials and equipment that are for general government purposes or will not be used to accomplish a specific public works project. Office supplies and equipment are obvious examples as are vehicle and specialty equipment purchases by agency departments. Other, not so obvious examples are:

• Acquisition of a telephone system that requires installation of cable, conduits, and other devices may fall within the definition of a public work. If, however, the acquisition were merely of hardware, such as telephones, it would probably be considered an equipment purchase.
• Purchase of a number of parking meter heads, which will be stockpiled in a warehouse and used over a period of time to replace defective heads, would be an equipment purchase. However, if the heads are being purchased in connection with a specific project and will be installed within a short period of time, it probably is a public work. Similarly, stockpiling traffic signal heads, poles, wire, etc., for routine maintenance and repair would be an equipment purchase.

As the Purchasing and Bidding Chart for Local Agencies in Washington State () illustrates, all local governments can use the 'vendor list' procedure set out in RCW 39.04.190 for purchases of equipment, materials and supplies that are not to be used in connection with any public work or improvement. Second class cities, towns, and code cities with a population under 20,000 and all counties must call for bids costing more than $7,500 (cities) or $2,500 (counties). However, advertisement and formal sealed bidding may be dispensed with for purchases between $7,500 and $15,000 (cities) or between $2,500 and $25,000 (counties), if the governing body authorizes, by resolution, use of this vendor list procedure. Similar limits for other municipalities are shown in the Chart. () Cost estimates must include applicable sales and use taxes. Many agencies include vendor list and small works roster procedures in the same resolution or ordinance.

A vendor list may be used to secure telephone or written quotations under certain conditions, as follows:

• The agency must advertise at least twice a year in a newspaper of general circulation that a vendor list (or lists, if they want to keep different vendor lists for different products) exists and it must solicit names for the list.
• If possible, at least three quotations should be secured to ensure a competitive process, with the contract being awarded to the lowest responsible bidder.
• Immediately after the award, all bid quotations that the agency obtained must be recorded and made open to public inspection. This information must also be available to those who inquire by telephone.
• At least every two months, an agency using vendor lists must post a list of contracts awarded. The list must contain the name of the vendor, the amount of the contract, a brief description of items purchased, and the date of the award.

RCW 39.04.270 authorizes local governments to use a "competitive negotiation" process as an alternative to the competitive bid process when purchasing telecommunications and data processing (computer) equipment or software. This alternative process requires, at a minimum, the following steps:

• A request for proposals (RFP) must be published in a newspaper of general circulation at least 13 days before the last date on which the proposals will be received.
• The RFP must be submitted to an adequate number of qualified sources, as determined by the agency in its discretion, to permit reasonable competition consistent with the requirements of the procurement.
• The RFP must identify significant evaluation factors, including price, and their relative importance.
• The agency must provide reasonable procedures for technical evaluation of the proposals, identification of qualified sources, and the selection process for awarding the contract. The award must be made to the qualified bidder whose proposal is "most advantageous" to the agency and the agency may reject all proposals for good cause and request new proposals.

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