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Purchase orders and contracts in any amount may be awarded on a noncompetitive basis in one or more of the following cases when the purchasing manager approves the use of negotiation as a means to procure the goods and services prior to award. Authority to award negotiated purchases shall be in accordance with the limitations established in section 2-672, except as stated in subsection (2) of this section.

(1) Extension of existing competitively solicited contract. A vendor/contractor offers to extend an existing competitively solicited contract under the same conditions of the original contract, and at the same or lower price, and such extension is in the best interest of the city and is in accordance with the solicitation document. As used in this subsection, the term "price" may be deemed "the same or lower" if the price from the previous contract will be increased in the extension only in an amount equal to an inflationary factor as determined by acceptable indices or criteria.

(2) Used, discontinued, unique purchases. Used, discontinued or otherwise unique equipment or commodities which become available or are offered only for a limited time and may be acquired below the cost of similar new or regular items. The city manager or his or her designee shall have the authority to award purchase of used, discontinued or unique equipment or purchases with a report of such purchases above $25,000 to be forwarded to the council prior to award. If council approval is desired, a councilmember will notify the city manager and a review of the item will be placed on a council agenda.

(3) Service on existing equipment. It is in the city's best interest to obtain parts, repair or service on existing equipment from a local factory-authorized dealer or distributor.

(4) Perishable supplies. Supplies that are perishable or cannot be purchased by ordinary procedures because of imminent spoilage or decay.

(5) Reduced total cost. Closer location, more advantageous time allowances or similar variable factors can reduce the total cost of the product or service.

(6) Standardization. Standardization of parts, modules, accessories or additions will minimize excessive inventory or maintain compatibility with existing furnishings or installations.

(7) Lack of specifications or testing. It is not feasible to prepare definite, certain and precise written specifications or testing is desired to better define requirements.

(8) No response. Formal competitive bidding procedures have failed to provide at least two responsive bidders.

(9) Sole source. Only one specific source is known to exist after reasonable inquiry by the purchasing manager or their staff for the required supplies or services (sole source). Departmental assertions of a sole source shall not be determinative upon the purchasing manager's determination but shall be given due consideration.

(10) Priority. In order to reduce down time of procuring equipment and contracts when circumstances warrant, purchase orders may be negotiated with selected vendors or contractors.

(11) Exceptions to purchasing. Exceptions identified in BMP 2-08 promulgated pursuant to section 2-3, Rules and regulations, are not subject to standard purchasing procedures. (Code 1979, § 2-190; Ord. No. 2023-08, § 1, 4-10-2023; Ord. No. 2012-30, § 6, 7-9-2012; Ord. No. 2000-138, § 5, 12-18-2000)