Purchasing & Payment Policy
The City’s policy is to seek the most economical source of supply available to the City. All specifications should seek to promote overall economy for the purposes intended and encourage competition in satisfying the City’s needs and should not be unduly restrictive so to limit competition. The City of Golden is not required to maintain a bidder’s list.
Whenever possible, the Colorado State Price Agreement Listing will be consulted. As a matter of policy, when all factors are deemed to be equal, the bid shall be awarded to the Golden merchant.
|Buyers best judgment||$0 – $2,000|
|Two written or oral quotes||$2,000 – $10,000|
Three written quotes:
$10,000 – $50,000
$10,000 – $100,000
Sealed competitive bidding:
$50,000 and above
$100,000 and above
Exceptions requiring City Council approval:
- Capital improvements over $100,000
- Non-budgeted transactions over $50,000
- Budgeted purchases over $50,000 and 15% over original budgeted amount
Capital Improvement Contracts
The Capital Improvement Contracts Policy applies to any capital improvement contract that the City enters into. According to the City Charter, only the City Manager or the Mayor has the authority to sign a contract for the City (contractual authority).
A. When a capital improvement contract is awarded in excess of twenty-five thousand ($25,000), the following bonds or security shall be delivered to the City and shall become binding on the parties upon the execution of the contract:
1. Bid security in an amount equal to five (5) percent of the total amount of bid shall be required for all competitive sealed bidding for capital improvement contracts when the price is estimated to exceed fifty thousand dollars ($50,000). Bid security shall be a bond provided by a surety company authorized to do business in this state, or the equivalent in certified funds, or otherwise supplied in a form satisfactory to the City. Nothing herein prevents the requirement of such bonds on capital improvement contracts under fifty thousand dollars ($50,000) when circumstances warrant.
When the invitation for bid requires security, noncompliance requires that the bid be rejected.
2. A performance bond satisfactory to the City executed by a surety company authorized to do business in this state, or otherwise secured in a manner satisfactory to the City, in an amount equal to one hundred percent (100%) of the price specified in the contract; and
3. A payment bond satisfactory to the City executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the City for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to one hundred percent (100%) of the price specified in the contract.
B. Nothing in this section shall be construed to limit the authority of the City to require a bond or other security in addition to the bonding requirements as stated above.
C. The City Manager, at his own discretion, may waive or lessen the bonding requirements for contracts up to $100,000 should bonding not be cost-effective.
The contract shall include provisions for retainage of contract sums as prescribed by state law, and may include provisions for retainage in contracts not covered by state law.