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City of Midland

Purchasing Department

Purchasing Agent Mike Meyer
989-837-3331

 

 

PROCEDURE FOR REMOVAL OR

SUSPENSION FROM THE BIDDER’S LIST

 

Policy

 

The Purchasing Agent shall have the authority, with the approval of the Director of Fiscal Services, to remove or suspend vendors from the list of eligible bidders and to disqualify such vendors from receiving any business from the City of Midland for a period of up to one (1) year.  Such action shall be based on serious failures on the part of the vendor and shall include formal notice to the vendor with an opportunity for response to the actions.

 

Removal or Suspension for Cause

 

Grounds for removal or suspension of a vendor shall include, but not be limited to, the following:

·         Default or failure to honor a bid or contract.

·         Delivery of commodities, equipment, or services which do not comply with the published requirements or specifications.

·         Failure to make delivery or complete a project in the time period specified on the contract or purchase order.

·         Failure to keep an offer firm for sixty (60) days from the bid opening or the period stated in the bid specifications.

·         Failure to provide a performance bond when required as part of the contract documents.

·         Collusion with other bidders or prospective bidders in an attempt to restrain competition.

·         Failure to accept orders offered that are based on firm bids within the allowed period for acceptance.

·         Failure to make applicable adjustments or replacement of damaged goods.

·         Failure to honor warranties and guarantees on products supplied.

·         For consecutive failure to respond with either a valid bid or an indication of “No Bid” to the City’s Invitation to Bid or Request for Proposal.

·         Any violation of the City’s policies and procedures or laws of the State of Michigan or the Federal government.

·         Any party that is involved in a current law suit or legal action against the City.

 

Procedure

 

·         Upon receiving a complaint from a City department on one or more of the above listed problems, the Purchasing Agent shall notify the vendor in writing and request explanation prior to proceeding.

·         Vendor may dispute the department’s claim by responding in writing within two (2) weeks of notification.  Response should include the vendor’s interpretation of the events described by the City department.

·         In their response, the vendor may request a formal meeting with the Purchasing Agent, Director of Fiscal Services, and the department involved.

·         Following consideration of all information obtained in the complaint, vendor response and formal meeting, the Purchasing Agent may recommend removal, suspension, or no action.

·         A recommendation for removal or suspension shall take effect immediately upon approval by the Director of Fiscal Services.

·         Vendor shall receive written notice of the decision, and shall have ten (10) business days from the date of said notice to request an administrative show cause hearing with the City Manager.

·         Vendor shall have the right of final appeal to the City Council, which must be exercised by the vendor at a City Council meeting not later than four (4) weeks from the date of the City Manager’s ruling.  The decision of the City Council shall be final.

·         Purchasing Agent shall issue notice of removal or suspension to all departments and shall cause the vendor’s number to be designated as “Inactive” in the City’s computerized purchasing system.

·         No purchase orders or contracts are to be issued or executed with a vendor which has been removed or suspended in accord with this policy and procedure.

·         Removal or suspension shall include all products or services provided by the suspended vendor.

 

Subcontracting by an Ineligible Vendor

 

·         Suspension shall include City business directly or indirectly such as being a subcontractor to another vendor on City work.

·         Any disqualified vendor that is found to be a subcontractor on a City job shall have their suspension increased an additional year.

·         Use of ineligible vendors as subcontractors may cause the main contractor to be placed on the City’s list of ineligible vendors.  The City’s “Standard Instructions to Bidders” shall include a warning to this affect, as well as information on obtaining a current list of suspended vendors.

 

Duration and Reinstatement

 

·         Suspension shall be for an initial period of up to one (1) year, based on the recommendation of the Purchasing Agent and approval by the Director of Fiscal Services.

·         At the end of the suspension period, a review will be conducted by the Purchasing Agent to determine if problems have been resolved to correct the situation(s) that caused the original suspension.

·         If the problems have been resolved, the suspension will be lifted and the vendor returned to eligible status.  If the problems have not been resolved, an additional period of suspension shall be imposed or suspension may be made permanent and the vendor removed from the City bid lists.

·         Reinstatement to the active bidder’s list may be petitioned by the vendor at any time after formal notice of removal is received by the vendor.  The vendor may submit in writing an explanation of the circumstances that caused the removal or suspension and the actions taken to correct the deficiency.  On the basis of such explanation or demonstration, the Purchasing Agent may, with the approval of the City Manager, modify or rescind the removal or suspension.