Last Modified on 05/07/2009 09:06:00Chapter 31A PREQUALIFICATION OF CONTRACTORS*
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Charter references: Contracts, ch. XIX.
Cross references: Bonds, sureties and guarantees required by Materials Management Administrator, § 2-19.1; public works contracts, § 2-187 et seq.; construction contractors' affirmative action requirements, § 18-12 et seq.; minority owned, woman owned and small business enterprise participation programs, § 18-100 et seq.
State law references: Public works contracts, A.R.S. § 34-201 et seq.
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Sec. 31A-1. Purpose.
Sec. 31A-2. Definitions.
Sec. 31A-3. Prequalification procedure; application.
Sec. 31A-4. Special projects.
Sec. 31A-5. Disqualifications.
Sec. 31A-6. Temporary disqualification.
Sec. 31A-7. Temporary suspension.
Sec. 31A-8. Hearing procedures.
Sec. 31A-9. Appeals.
Sec. 31A-1. Purpose.
The purpose of this ordinance is to provide for the regulation of contractors desiring to perform public works construction for the City of Phoenix by establishing a prequalification procedure to set the standard for responsibility for bidding on public works construction.
(Ord. No. G-2772, § 1)
Sec. 31A-2. Definitions.
Disqualification means exclusion from bidding or otherwise participating in City construction contracts for a reasonable, specified period of time, commensurate with the seriousness of the offense or the failure or the inadequacy of performance, generally not to exceed three years. However, the City Engineer may exclude a contractor for an indefinite period for the doing of a wrongful or fraudulent act by the contractor resulting in another person being substantially injured, or for the conviction of a felony.
Suspension means a contractor has been disqualified from participation in City work for a temporary period by the City Engineer for any conduct which could result in a permanent disqualification.
(Ord. No. G-2772, § 1)
Cross references: Definitions and rules of construction generally, § 1-2.
Sec. 31A-3. Prequalification procedure; application.
(a) To ensure that all contractors doing work for the City are adequately experienced, equipped and financed to meet their contractual obligations, the determination of responsible bidders shall be made by the prequalification of contractors. All contractors shall submit an application for prequalification to the City Engineer and be prequalified prior to submitting any bid to perform work for the City. The City Engineer shall formulate standards pertaining to the experience, manpower, equipment and financial condition of contractors, and shall use these standards in determining the type and value of work for which each contractor may be prequalified. The City Engineer shall recommend for award construction contracts only to firms accepted as prequalified prior to the date bids are submitted; provided, however, that the City Engineer may exempt from prequalification requirements contracts under the total value of one hundred thousand dollars, contracts of emergency nature, or contracts for types of work deemed not to require special skills or experience.
(b) All contractors, except those exempt under the provisions of section (a) above, must apply for prequalification and be accepted as prequalified prior to submitting a bid for City construction work.
(c) A Prequalification Board shall be nominated by the City Engineer and appointed by the City Manager. The Board shall consist of the City Engineer or a designated representative, a representative of the City Finance Department, a representative of a City operating department and a Minority Procurement Advisor. The members of the Board shall be appointed for staggered terms of two years; however, the City Manager may at any time rescind an appointment for the good of City. Vacancies on the Board shall be filled for the remainder of a term by nomination by the City Engineer and appointment by the City Manager. The Board shall meet from time to time to consider the applications submitted. The Board shall notify each applicant in writing, no more than thirty days after submittal of the application, of its acceptance or rejection of the application. The date of written notification of acceptance for prequalification shall be the earliest date on which the contractor may submit a bid. The Board may recommend changes to the dollar limitations, categories and other regulations to the City Engineer.
(d) A contractor who has any objections to a Board's rejection of his application for prequalification may obtain a review of the Board's determination, if the contractor lodges his objection in writing with the City Clerk no later than 5:00 p.m. of the fifth calendar day following the day on which the Board's notice of rejection was mailed to the contractor. The Board shall act upon properly filed requests within fifteen calendar days from the date of receipt of such request. If, after review, the Board again rejects the contractor's application, the contractor may appeal to the City Engineer. If the contractor files his request for appeal in writing with the City Engineer's secretary no later than 5:00 p.m. of the fifth calendar day following the day on which the Board's notice of rejection of the contractor's appeal was mailed to the contractors, the City Engineer shall conduct a hearing informally within fifteen calendar days following receipt of the contractor's written request. At the hearing, the contractor may present oral testimony concerning the contractor's capability and responsibility. The City Engineer shall notify the contractor of his decision within ten calendar days following the hearing. The contractor may appeal the decision of the City Engineer to the Appeals Board as established in section 31A-9(a). A contractor who is appealing any decision denying his prequalification shall not be eligible to submit a bid on any project during such appeal process. A contractor, who is denied prequalification, shall be disqualified in the same type of work or category of value for a period of six months thereafter.
(Ord. No. G-2772, § 1; Ord. No. G-3313, § 1)
Sec. 31A-4. Special projects.
(a) Notwithstanding the provisions contained in this chapter, in the case of a City construction project requiring specialized experience and knowledge, the City Engineer, at his sole discretion, may require a special prequalification procedure before any contractor will be permitted to bid on such project.
(Ord. No. G-2772, § 1)
Sec. 31A-5. Disqualifications.
Any of the following actions by a contractor may be considered as sufficient grounds for denial of prequalification or for disqualification of contractors previously qualified by the City:
1. Misrepresentation of a material fact in any bid submission, contract document, or in the information submitted in the prequalification statement.
2. Manipulation of competitive low-bid requirements through collusion with another party or parties.
3. Failure to comply with the affirmative action and equal employment requirements of the bid specification.
4. Abandonment of a contract or refusal to perform without legal cause after submission of a bid.
5. Use of unauthorized subcontractor(s) on a City construction project.
6. A record of bidding errors or omissions in two or more bid submissions in a twelve-month period.
7. Willful disregard of the plans and specifications or the time limits provided in the contract.
8. A record of failure to perform or unsatisfactory performance in accordance with one or more contracts. Failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor or subcontractor shall not be considered to be a basis for disqualification.
9. Conviction in any jurisdiction of embezzlement, forgery, theft, bribery, collusion, price-fixing, falsification or destruction of records or any other offense indicating a lack of business integrity or business honesty.
10. Failure to submit annual update required for prequalification.
11. Failure in any material respect to comply with the provisions of this chapter.
(Ord. No. G-2772, § 1)
Sec. 31A-6. Temporary disqualification.
A contractor shall be disqualified from rebidding any project in which the contractor withdrew his bid from the first round of bidding.
(Ord. No. G-2772, § 1)
Sec. 31A-7. Temporary suspension.
If the conduct of any contractor results in any condition which is a public nuisance dangerous to the public health, or a threat to the public safety, the City Engineer may temporarily suspend the qualification of any contractor. The City Engineer shall immediately notify the contractor of the temporary suspension by registered or certified mail, return receipt requested, and shall state the reason for such temporary suspension. The temporary suspension shall be in effect immediately and shall continue in full force and effect, until the City Engineer gives notice that the temporary suspension is set aside. A contractor may appeal the temporary suspension by the City Engineer by filing an application for review with the Appeals Board established in section 31A-9. The temporary suspension shall remain in full force and effect until the Appeals Board issues its decision. The Appeals Board shall have the power to sustain, modify or set aside such temporary suspension. Conditions which are public nuisances dangerous to the public health are defined for the purpose of this section as any health menaces specifically described in A.R.S. § 36-601.A.