A RESOLUTION APPROVING THE AMOUNT AND FORM
OF AND CONDITION FOR BID PROTEST APPEAL BOND OR SECURITY
The City Council of the City of Las Cruces is informed
that:
WHEREAS, Municipal Code Section 24-286(a)
entitled, "Right to Protest" requires that the City Council set,
by resolution, the amount of the appeals bond that shall accompany
a bid protest filed with the City's Purchasing Manager, formerly
known as the Purchasing Agent:
WHEREAS, bid protestants should be
allowed to post other forms of security in lieu of an appeal bond
as long as the same purpose is adequately served;
WHEREAS, the appeal bond or
other security should be graduated based on the size of the contract
to be awarded;
WHEREAS, the procedures attached
to this Resolution apply to both invitations for bids and request
for proposals.
NOW, THEREFORE, be it resolved by
the governing body of the City of Las Cruces:
(I)
THAT the
Procedures for Bid Protest Appeal Bond or Other Security, which sets
forth the amount and form of and conditions for bid protest appeal
bonds and security and which are attached as Exhibit "A" to this
resolution, be approved.
(II)
THAT City staff and any City Bid Protest
Appeals Board are hereby authorized to do all deeds necessary to
accomplish the intent of this Resolution.
DONE AND APPROVED this 15th day of
November, 1999.
EXHIBIT "A"
PROCEDURES FOR BID PROTEST APPEAL BOND OR
SECURITY
Municipal Code Section 24-286(a)
provides that the initial bid protest filed with the City's Purchasing
Manager should be accompanied by an appeal bond in an amount set
by the City City Council by Resolution. Resolution No. 00-148
entitled, "resolution Approving the Amount and Form of and Conditions
for Bid Protest Appeal Bonds or Security" and adopted on November
15, 1999, authorizes the following procedures:
A. Optional Forms
of Appeal Bond or Security:
1. An
appellate bond through a bonding company authorized to do business
in New Mexico;
2. Letter
of credit or its equivalent from a federally insured financial institution
such as a bank, savings and loan association, or credit union; or
3. Cashier's
check or its equivalent payable to the City of Las Cruces.
B. Amounts of Appeal Bond
or Security:
1. One
Thousand and No/100 Dollars ($1,000.00) for a bid protest to a contract
expected to be awarded in an amount under One Hundred Thousand and
No/100 Dollars ($100,000.00).
2. Five
thousand and No/100 Dollars ($5,000.00) for a bid protest to a contract
expected to be awarded in an amount between One Hundred Thousand
and No/100 Dollars ($100,000.00) and Five Hundred Thousand and No/100
Dollars ($500,000.00).
3. Ten
Thousand and No/100 Dollars ($10,000.00) for a bid protest to a contract
expected to be awarded in an amount in excess of five Hundred Thousand
and No/100 Dollars ($500,000.00)
4. The
Purchasing Manager will determine the amount of the appeal bond or
security based on bids received, the engineer's estimate, and/or
budgeted project funds. Her/his decision will be final.
C. Procedures for Acquiring
and Holding Appeal Bond or Security:
1. The
bond or security shall be delivered to the City's Purchasing Department
presently located at 1501 e. Hadley Avenue, Las Cruces, New Mexico,
when the written protest is filed with the City's Purchasing Manager.
2. If
the appeal bond or security is in the correct amount and valid, the
Purchasing Department shall accept the bond or security and shall
give the Protestant or its agent a written dated receipt identifying
the amount and type of appeal bond or security. Failure to
deliver a valid appeal bond or security in the correct amount may
cause the purchasing manager to reject the bid protest.
3. If
the protestant does not appeal the Purchasing Manager's decision
to the City Clerk in accordance with Municipal Code Section 24-286(c),
then the appeal bond or security will be returned to the protestant
or its agent within five (5) working days after the written appeal
to the City Clerk was otherwise due.
4. If
the protestant does appeal the Purchasing Manager's decision to the
City Clerk, then the appeal bond or security will be retained by
the Purchasing Department pending the outcome of the appeals process.
5. The
disposition of the appeal bond or security will then be determined
by the appeal board.
D. Application:
These
procedures apply to protests concerning either invitations to bid
or requests for proposals.
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