7-14. Duties when Common Council Orders Public Works.
1. SEALED BIDS, REVERSE AUCTION BIDS, ETC.
a. Whenever any public work or improvement or, notwithstanding the provisions of s. 16-05-1, other work, shall be ordered by the common council, the commissioner of public works shall advertise for proposals. A plan or profile of the work to be done, accompanied with specifications for doing the same, or other appropriate and sufficient description of the work required to be done, and of the kinds and quality of material to be furnished, shall be placed on file in the office of the commissioner for the information of bidders and others. Such advertisement shall be published at least 2 days in the official city papers, and shall state the work to be done and the time for doing the same, which shall in all cases be such reasonable time as may be necessary to enable a contractor with proper diligence to perform and complete such work.
b. The commissioner of public works shall solicit sealed, competitive bids, or conduct a reverse auction as defined s. 16-05-3-d, or a combination of these 2 methods when awarding contracts under this section. The commissioner of public works shall establish and maintain a reverse auction bidding process, either in-house, or through a hosting vender, or by sharing the reverse auction vehicle established by the city purchasing director, and this reverse auction bidding process shall comply with vender notice and fairness policies. This reverse auction bidding process shall be designed, established and used as a tool to ensure goods and services purchased by the city are purchased at market-competitive rates. Under this section, a reverse auction shall not be used in awarding a contract for the construction, execution, repair, remodeling or improvement of a public work or building, or for the furnishing of supplies or material of any kind for the construction, execution, repair, remodeling or improvement of a public work or building required by law to be let by bidding.
c. Each sealed, competitive bid shall be accompanied with a bid bond of a surety company licensed to do business in the state of Wisconsin, to the city of Milwaukee in such penal sum, not less than 10% if the amount of the bid. Prior to a reverse auction participants shall provide a bid bond as described in this paragraph equal to 10% of the highest bid the bidder expects to make during the reverse auction and no bid greater than 10 times the face amount of bidder’s bid bond will be registered as a bona fide bid. The bond shall be conditioned that such bidder will execute and perform the work for the price mentioned in the proposals and according to the plans and specifications on file, in case the contract shall be awarded to the bidder. In case of default on the bidder’s part to execute a contract to perform the work specified and to comply with all requirements set forth in the bidding documents, including the furnishings of a performance and payment bond, the bid bond shall be prosecuted in the name of the city, and judgment recovered thereon for the full amount of the penalty thereof, but not more than 10% of a reverse auction participant’s lowest bid, as liquidated damages, in any court having jurisdiction of the action, unless the common council shall, by resolution, direct that no action shall be commenced.
d. A bidder required by the commissioner of public works to provide a bid bond per par. c may satisfy this requirement by depositing with the commissioner of public works cash or a certified check equal to 10% of the face amount of the bid, under an agreement that the same shall be returned to such bidder in case the contract for the work is not awarded to such bidder, or in case the bidder does not default in the execution of the contract if it is awarded to such bidder, and that in case the contract is so awarded, and the bidder fails to execute a contract to perform the work specified, for the price named in the bid, within a reasonable time after such contract is prepared and ready for execution, then said sum of money shall become the property of the city, as fixed and liquidated damages for such default, and shall be paid by the commissioner to the city treasurer, per s. 1, Ch. 3878, L. 1889.
2. COMMISSIONER OF PUBLIC WORKS; CONTRACTS TO LOWEST BIDDER, SURETIES, RELETTING. a. All contracts shall be awarded to the lowest responsible bidder, who shall have complied with the foregoing requisitions; provided, that no contract shall be entered into by the commissioner of public works, unless the contractor furnish a performance and payment bond by a surety company licensed to do business in the state of Wisconsin guaranteeing to the satisfaction of said commissioner the performance of such contract by the contractor under the superintendence and to the satisfaction of said commissioner and evidence of such insurance as the commissioner of public works in conjunction with the city comptroller shall determine to protect the interests of the city. Provided further, that whenever the lowest bid for any work to be let by said commissioner, shall appear to said commissioner to be unreasonably high, the said commissioner is authorized to reject all bids therefor, and to re-let the work anew; and whenever any bidder shall be, in the judgment of said commissioner, incompetent or otherwise unreliable for the performance of the work for which he bids, the said commissioner shall report to the common council of the said city a schedule of all the bids for such work with a recommendation to accept the bid of the lowest competent and reliable bidder for such work, with his reasons for such recommendations, and thereupon it shall be lawful for the said common council to direct the said commissioner either to let the work to such lowest competent and reliable bidder, or to re-let the same anew; and provided further, that the said commissioner may reject the bid of any person who shall previously have willfully or negligently failed to complete any work or contract entered into by him with the city or any officer or department thereof, or who shall have willfully or negligently failed to enter into a contract for any work or improvement that shall have been previously awarded to him by said commissioner. The failure to let such contract to the lowest responsible bidder, in compliance with any provision of this section, shall not invalidate such contract, or any special assessment thereunder, or for the work done in virtue thereof.
b. All contracts awarded under ss. 7-14-2 and 7-22 of the city charter shall be awarded by the commissioner of public works to the lowest responsible bidder determined in accordance with any applicable city ordinances relating to the participation of minority, woman, small business or local business enterprises or requiring participation of city residents. Following the opening of any bid where the commissioner has considered compliance with such city ordinances, the commissioner shall publish in an official city newspaper his or her determination as to the lowest responsible bidder. Any bidder who objects to the determination based on the consideration of such city ordinances, may appeal the recommendation by filing a written appeal with the commissioner within 5 working days of the date of publication. The appeal shall state the specific objection to the determination, including supporting documentation, and specify an alternative determination. Any appeals that do not conform to this paragraph shall not be considered. The commissioner shall schedule a hearing before the public works contract appeals committee which shall be comprised of the chair of the economic development committee or his or her designee, a member of the economic development committee selected by the chair and the director of administration or his or her designee to be held within 5 days of receipt of the appeal. The public works contract appeals committee shall have the authority by majority vote to affirm or set aside the determination of the commissioner and its decision in this regard shall be final. In the event that a timely appeal meeting the requirements of this paragraph is not filed, or the committee affirms the commissioner's determination following a timely appeal, the commissioner shall make an award in accordance with his or her determination.
3. PERFORMANCE BOND. a. All contracts involving $10,000 or more for performance of labor or furnishing materials when the same pertain to any public improvement or public work shall contain a provision for the payment by the prime contractor of all claims for labor performed and materials furnished, used or consumed in making the public improvement or performing the public work.
b. Such contracts whose cost exceeds $10,000 in cost but does not exceed $25,000, shall not be made unless the prime contractor gives either an irrevocable letter of credit or a performance and payment bond or bonds issued by a surety company licensed to do business in the state of Wisconsin. Such bond shall carry a penalty of not less than 50% of the contract price, and shall be conditioned for the faithful performance of the contract and the payment to each person entitled thereto of all the claims for labor performed and materials furnished under the contract to be used or consumed in making the public improvement or performing the public work as provided in the contract and this section. No assignment, modification or change of the contract, or change in the work covered thereby, or any extension of time for the completion of the work may release the sureties on the bond or bonds.
c. Such contracts exceeding $25,000 in cost shall not be made unless the prime contractor gives a performance and payment bond or bonds issued by a surety company licensed to do business in the state of Wisconsin. Such bond shall carry a penalty of not less than the contract price, and shall be conditioned for the faithful performance of the contract and the payment to each person entitled thereto of all the claims for labor performed and materials furnished under the contract to be used or consumed in making the public improvement or performing the public work as provided in the contract and this section. No assignment, modification or change of the contract, or change in the work covered thereby, or any extension of time for the completion of the work may release the sureties on the bond or bonds.
(HISTORY: Section 7-14 am. Ch. Ord. 310, File #64-4089, April 6, 1965. 7-14-1, am. Ch. Ord. 494, File #80-1093, Oct. 21, 1980. 7-14-1, am. Ch. Ord. 566, File #86-1898, Feb. 24, 1987; eff. May 11, 1987. 7-14-1; am. File #101210, March 23, 2011; eff. June 8, 2011. 7-14-1-a am. File #872441, March. 29, 1988; eff. June 14, 1988. 7-14-1-b am. File #871460, Nov. 17, 1987; eff. Feb. 7, 1988. 7-14-1-b am. File #111161, Jan. 18, 2012; eff. April 4, 2012. 7-14-2 am. Ch. Ord. 494, File #80-1093, Oct. 21, 1980. 7-14-2 rn to 7-14-2-a, File #901996, Apr. 23, 1991; eff. July 9, 1991. 7-14-2-b cr. File #901996, Apr. 23, 1991; eff. July 9, 1991. This provision became null and void after June 30, 1993, per the provisions of File #901996. 7-14-2-b cr. File #930436, July 6, 1993; eff. Sept. 21, 1993. 7-14-2-b am. File #980966, Oct. 30, 1998; eff. Jan. 18, 1999. 7-14-2-b am. File #020885, Nov. 8, 2002;eff. Jan. 27, 2003. 7-14-2-b am. File #080685, March 25, 2009, eff. June 9, 2009. 7-14-2-b am. File #110087, Oct. 11, 2011, eff. Dec. 27, 2011. 7-14-3 cr. Ch. Ord. 494, File #801093, Oct. 21, 1980. 7-14-3 am. Ch. Ord. 546, File #84-1633, Feb. 12, 1985; eff. April 30, 1985. 7-14-3 am. File #871460, Nov. 17, 1987; eff. Feb. 7, 1988. 7-14-3 am. File #872441, March 29, 1988; eff. June 14, 1988. 7-14-3 am. File #891610, Dec. 19, 1989; eff. March 14, 1990. 7-14-3 ra. File #910806, Mar. 29, 1994; eff. June 15, 1994. 7-14-3 rc. File #981569, Mar. 2, 1999; eff. May 18, 1999. 7-14-3-a am. File #980533, July 24, 1998, eff. October 12, 1998. 7-14-3-b cr. File #910806, Mar. 29, 1994; eff. June 5, 1994.)