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PURCHASING DEPARTMENT POLICIES
Bid Bond

If required, a bid bond, certified or cashier's check in the amount requested must be attached to the bid.

Performance and Payment Bonds

Pursuant to Act 213 of the Michigan Public Acts of 1963, as amended, all contracts exceeding $50,000 for the construction, alteration or repair of any public building or public work or improvement shall require a performance and payment bond for 100% of the contract amount.  The successful bidder must submit a performance bond and a payment bond which are to be reviewed and approved by the City Attorney prior to the commencement of any work.  If required by contract documents, a Maintenance & Guarantee Bond shall be submitted simultaneously with the Performance and Payment Bonds.

Insurance

If required, the Contractor will show evidence of automobile and commercial general liability insurance, worker's compensation insurance and professional liability insurance (where applicable), which is acceptable to the City.  The commercial general liability insurance policies shall name the City, its agents, representatives, officers and employees as additional insureds to protect their interests.

Prequalification

Construction projects, including construction, maintenance or repair to public streets or right of ways, with an estimated cost of $100,000 or more, shall have obtained a Michigan Department of Transportation (MDOT) or City of Jackson prequalification prior to bidding upon such projects.  For all other projects, prequalification shall be optional at the descretion of the Purchasing Agent and the Department Head involved in the project.

A bidder's prequalification shall be based upon information regarding financial resources, construction equipment available, facilities, holdings, and work experience, of both the corporation and its key personnel.

Tie Bids

If two or more low bids are received for the same total amount or unit price, and the quality and service are equal, the contract shall be awarded to one of the tie bidders by drawing lots in public, unless one of the bidders is a taxpayer or resident of the City, in which case such taxpayer or resident shall be awarded the contract.

Sole Source

Bidding procedures shall be used unless it is determined to be a single sole source procurement by the Purchasing Agent.  A sole source procurement exists when; there is a lack of responsible competition for a commodity or service which is vital to the operation and best interest of the City; a vendor possesses exclusive and/or predominant capabilities; a product or service is unique and easily established as one-of-a-kind; there is a patented feature providing a superior utility not obtainable from similar products; a proprietary right exists and the product is available from only one prime source and not merchandised through wholesalers, jobbers or retailers.

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City Hall is located at 161 W. Michigan Ave. Jackson, Michigan 49201-1324
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