1. A. The City Administrator is authorized to adopt administrative rules, and procurement procedures and forms, as authorized by the Charter, which will be called Portland Public Contracting Rules.
2. B. Except where otherwise defined in the Portland Public Contracting Rules, terms will have the meanings assigned in ORS Chapters 279, 279A, 279B, and 279C.
3. C. In addition to responsibilities under the Charter and Code, the City Administrator is authorized to conduct procurements on the City’s behalf and, through their procurement services and programs (“Procurement Services”), will oversee the administration of this Chapter.
4. D. To the extent required under ORS 279A.050, the City Administrator will exercise all of the City’s procurement authority in accordance with the provisions of the State’s Public Contracting Code.

The Council is the Local Contract Review Board (LCRB), unless the Council designates otherwise in accordance with ORS 279A.060. The procedural rules of the Council sitting as the LCRB are the same as those regulating Council as provided by Chapter 3.02.

1. A. The City will advertise every notice of a solicitation document as follows:
   1. 1. The LCRB has determined that electronically providing public notice of bids or proposals is likely to be cost-effective and authorizes public notice of bids or proposals to be published electronically instead of in a newspaper of general circulation. 
   2. 2. The LCRB has determined that electronic advertisements for public improvement contracts are likely to be cost-effective and authorizes advertisements for public improvement contracts to be published electronically instead of in a newspaper of general circulation.

In accordance with ORS Chapters 279, 279A, 279B and 279C, the City Administrator may require prequalification of prospective bidders or proposers for public improvement contracts, for which the City intends to conduct a procurement.

In accordance with ORS 279B.075, the LCRB designates that the City Administrator may determine in writing that goods or services, or a class of goods or services, are available from only one source.

1. A. The City may award a contract as a special procurement pursuant to ORS 279B.085(4). The LCRB determined the following classes of contracts meet the requirements of ORS 279B.085(4) and approves them as class special procurements:
   1. 1. Advertisements. Except as provided by Charter Section 8-101, the City may award a contract for advertising in newspapers and written publications, web-based internet sites and other electronic formats.
   2. 2. Amendments to contracts and price agreements. The City may execute contract amendments, as follows:
      1. a. An original valid contract exists between the parties;
      2. b. Unit prices or “add alternates” were provided in the solicitation document that established the cost basis for the additional work or product or in a lump sum contract the contractor has provided an estimate of the additional cost that has been verified by the Bureau seeking the amendment; and
      3. c. The solicitation document provided for such amendments; or
      4. d. Emergency: The original contract was awarded pursuant to a declaration of emergency, in accordance with Portland City Code Title 15 or the Portland Public Contracting Rules; or
      5. e. Unplanned environmental cleanup: The additional work is required by reason of existing regulations or ordinances of federal, state or local agencies, dealing with the prevention of environmental pollution and the preservation of natural resources, that affect performance of the original contract and the regulations or ordinances either were not cited in the original contract or were enacted or amended after submission of the successful bid or proposal.
   3. 3. Copyrighted materials. The City may award a contract for copyrighted materials where there is only one known supplier available for the goods. This includes, but is not limited to, new books, workbooks, periodicals, subscriptions, curriculum materials, reference materials, audio and visual media, and nonmass-marketed software from a particular publisher or its designated distributor.
   4. 4.Determination of reasonable accommodation. The City may award contracts for determining any reasonable accommodation that may be made to any job classification in the City.
   5. 5. Employee benefit contracts. The City may award contracts relating to employee benefits after the City obtains a consultant pursuant to the Portland Public Contracting Rules to conduct a competitive process to acquire these contractors. These contracts include administrators of employee flexible spending account administration and medical claims third party administration. The City will hire a consultant to advise it on firms available to provide the work and the consultant is authorized to solicit firms pursuant to a request for proposal process as well as assist the City in placing advertisements in specific publications likely to reach the attention of the contractors or consultants. The City may negotiate or enter into the contract that appears most advantageous to the City without further advertisement or issuance of its own request for proposals.
   6. 6. Equipment maintenance, repair and overhaul. The City may award a contract for equipment maintenance, repair, or overhaul without competitive bidding and without obtaining competitive quotations if the extent of repair services, parts, maintenance or overhaul is unknown and cost cannot be determined without preliminary dismantling or testing.
   7. 7. Event sponsorship agreements. The City may award a contract to sponsor an event, whether or not the City receives goods or services in return for its payment.
   8. 8. Financial products. The City may award a contract for financial products such as bond insurance, surety bonds for City bond reserves and liquidity facilities such as letters of lines or credit. The City may pay fees associated with the transactions, including, but not limited to, registrar, paying agent, and escrow agent fees and fees associated with outstanding debt issues.
   9. 9.Golf course management agreements. The City may award contracts for golf course management (including concessions and club house operations) of a duration not to exceed five years for the parks under the jurisdiction of Portland Parks and Recreation.
   10. 10. Goods, services or equipment required by Federal Grant Agreements.  The City may award a contract, without a competitive solicitation process, for goods, services or equipment when they are required to be purchased from a specific source or when a specific brand name is required and no competition is otherwise available.
   11. 11. Hazardous material removal and oil cleanup. The City may award a contract for services to remove or clean up hazardous material or oil from any vendor when ordered to do so by the Oregon Department of Environmental Quality (DEQ) pursuant to DEQ’s authority under ORS Chapter 466. In doing so, the following conditions apply:
       1. a. To the extent reasonable under the circumstances, the City will encourage competition by attempting to obtain informal price quotations or proposals from potential suppliers of goods and services;
       2. b. The Bureau responsible for managing or coordinating the clean-up will submit a written description of the circumstances that require it and a copy of the DEQ order for the cleanup to Procurement Services together with a requisition authorizing the contract;
       3. c. Procurement Services will record whether there was time for competition, and, if so, the measures taken to encourage competition, the amount of the price quotations obtained, if any, and the reason for selecting the contractor to whom a contract award is made; and
       4. d. The City determines the timeline for cleanup does not permit the use of intermediate procurement procedures.
   12. 12. Honoraria. The City may award a contract to make a one-time payment or gratuity granted in recognition of a special service in which propriety or a competitive selection process is not feasible and made without the service provider recognizing themselves as having any liability or legal obligation for services.
   13. 13. Insurance contracts. The City may award contracts for insurance directly to an insurer after the City obtains proposals from an insurance consultant. The consultant will be selected pursuant to the Portland Public Contracting Rules. Among the services to be provided by the consultant is the securing of competitive proposals from insurance carriers for all coverages for which the insurance consultant is given responsibility and advice to the City about the costs and benefits of the various proposals. The City may negotiate or enter into the insurance contract that appears most advantageous to the City without advertisement or issuance of its own request for proposals.
   14. 14. Manufacturer direct supplies. The City may award a contract to a manufacturer if the cost from the manufacturer is the same or less than the cost the manufacturer charges to its distributor(s).
   15. 15. Medical determination of ability to work. The City may award contracts for physician or medical personnel to determine any prospective or current City employee's ability to work or return to work.
   16. 16. Membership dues. The City may award a contract, without a competitive solicitation process, for dues or memberships in professional or community organizations for the benefit of the City.
   17. 17. Modification of intellectual property. The City may award contracts for modifications, including updates, upgrades, and enhancements by the licensor of intellectual property licensed to the City; or an authorized provider if the licensor does not directly provide the services.
   18. 18. Performing artists. The City may award a contract for performance art whether vocal, instrumental, or visual required by the City to provide a paid performance of their work for an audience determined by the City.
   19. 19. Price-regulated goods and services, utilities and utility related services. The City may award a contract, without a competitive solicitation process, for utility services, repair, equipment and/or maintenance work, where the rate or price for the goods and services is established by federal, state, or local regulatory authority or when the services can be provided only by a specific utility.
   20. 20. Purchase of used personal property or equipment. The City may award a contract to purchase used personal property and equipment. Used property and used equipment is property or equipment that has been placed in use by a previous owner or user for a period of time, and that is recognized in the relevant trade or industry, if there is one, as qualifying the personal property or equipment as “used”. Used personal property or equipment generally does not include property or equipment if the City was the previous user, whether under a lease, as part of a demonstration, trial or pilot project or similar arrangement.
   21. 21. Renegotiations of existing contracts with incumbent contractors.
       1. a. Authorization. The City may renegotiate and amend existing contracts with incumbent contractors only if it is in the best interest of the City and has the approval of the City Administrator prior to negotiation.
       2. b. Process and criteria. The City may renegotiate various items of the contract, including but not limited to: price, term, delivery and shipping, order size, item substitutions, warranties, discounts, on-line ordering systems, price adjustments, product availability, product quality, and reporting requirements. The City must meet the following conditions in its renegotiations with incumbent contractors:
          1. (1) Favorable result. The City must determine that, with all things considered, the renegotiated contract is at least as favorable to the City as the original contract and document this determination. For example, the City and the contractor may adjust terms and conditions within the original contract to meet different needs;
          2. (2) Within the scope. The goods and services provided under the renegotiated contract must be reasonably related to the original contract’s solicitation. For example, the City may accept functionally equivalent substitutes for any goods and services in the original contract’s solicitation;
          3. (3) Optional term or condition. If a contractor offered to the City during the original solicitation a term or condition that was rejected at that time, the City may not renegotiate for a lower price based on this rejected term or condition as a mandatory term or condition in the renegotiated contract. If, however, a contractor offers a lower price pursuant to a rejected term or condition without additional consideration from the City and as only an option to the City, then the City may accept the option of a lower price under the rejected term or condition. For example, if the City initially rejected a contractor’s proposed condition that the price required a minimum order, any renegotiated contract may not mandate this condition; but the City may agree to the option to order lesser amounts or receive a reduced price based upon a minimum order; and
          4. (4) Market. In order to avoid encouraging favoritism or diminishing competition, the City may research the accepted competitive practices and expectations of offerors within the market for the specific contract(s) or classes of contracts to be renegotiated, thus establishing a market norm. If the City determines that a market norm exists, then the City must document its results. Based upon this information, the City will confirm that, if the City follows the market norm, favoritism is not likely to be encouraged, competition is not likely to be diminished, and substantial cost savings may be realized. Under no condition may the City accept or follow any market norm that likely encourages favoritism or diminishes competition, even if it is accepted or expected in the market.
   22. 22. Reverse auctions. The City may award a contract through reverse auctions pursuant to the process established in the Portland Public Contracting Rules.
   23. 23. Seminar, training registration, tuition and conference fees. The City may award a contract, without a competitive solicitation process, for seminar registrations and training session fees for attendance at seminars, conferences and training courses hosted by outside entities.
   24. 24. Services for legal advice. The City may award contracts for the City Attorney’s retention of expert witnesses and consultants to assist the City Attorney’s Office in providing legal advice to the City, and for outside legal counsel.
   25. 25. Services related to legal advice. The City may award a contract, without a competitive solicitation process, for services related to the provision of legal advice to the City:
       1. a. When a contractor or consultant, such as a court reporter or copy service, has been selected by another person and the City must bear a portion of the cost in order to receive the benefit of the contractor’s work, such as deposition transcripts or photocopies; or
       2. b. When the contractor or consultant, including, but not limited to a mediator, arbitrator, referee or court appointed individual, is selected either by a court, or by joint agreement between the City and another person or persons, in an effort to resolve a claim or dispute that has been or will be asserted by or against the City, regardless of whether litigation has been filed.
   26. 26. Software and hardware maintenance, licenses, subscriptions and upgrades. The City may award a contract or renew existing contracts for information technology hardware or software maintenance, licenses, subscriptions and upgrades without competitive solicitation where the maintenance, upgrades, subscriptions and licenses are either available from only one source or, if available from more than one provider, are obtained from the City’s current provider in order to utilize the pre-existing knowledge of the vendor regarding the specifics of the City’s hardware or software system. The City will document the facts that justify either that maintenance, license(s), subscriptions and upgrades were available from only one source or, if from more than one source, from the current vendor.
   27. 27. Stormwater improvements. The City may award a contract for stormwater improvements or watershed restoration, or both, without obtaining competitive solicitations if all or a significant portion of the improvements or restoration that the City is funding will be performed:
       1. a. On private property; and
       2. b. By the property owner or a contractor hired by the property owner.
   28. 28. US Postal Service. The City may award a contract without a competitive solicitation process, for permits and postage meters, pre-stamped postcards, establish ongoing postage accounts, etc. from the US Postal Service.
   29. 29. Veterinary medicine. The City may award contracts for veterinary physician, specialist or medical personnel required to determine any prospective or current City-owned service animal’s ability to work or return to work, or for providing general medical upkeep to a City-owned service animal.
   30. 30. Workers' compensation benefits. The City may award contracts for processing of any claim for workers' compensation benefits.

1. A. In addition to the personal services and related professional services described in ORS 279C.100, the LCRB has designated the following classes of service contracts as personal service contracts:
   1. 1. Contracts for personal or professional services performed by an independent consultant, excluding City employees, for the provision of services that require specialized technical, creative, expert, professional or communication skills or talents, unique and specialized knowledge, or the exercise of discretionary judgment, and for which the quality of the service depends on attributes that are unique to the service provider. Personal services include, but are not limited to: attorney; legal services including outside counsel; expert witness and related consultants; accounting and auditing services; information technology services including modification of intellectual property licensed to the City; workers’ compensation claim processing; medical determination of employees’ ability to work; determination of reasonable accommodations to job classifications; veterinary medicine for City-owned service animals; golf course management; planning and development services; artists; designers; performers; property managers and consultants. 

In accordance with ORS 279A.100, the City Administrator may develop and adopt administrative rules, as authorized by the Charter, to carry out an affirmative action goal, policy, or program limiting competition for a public contract.

1. A. In accordance with ORS 279C.335(2), the LCRB exempts the following classes of public improvement contracts from the competitive bidding requirement of ORS 279C.335(1):
   1. 1. The City may use a job order contracting method to award a contract for asphalt paving, repair and concrete projects estimated to cost between $5,000 and $1 million that limits the pool of contractors to those meeting the criteria as established by the State of Oregon’s Certification Office for Business Inclusion and Diversity (COBID) as COBID-certified businesses.
   2. 2. The City may use a job order contracting method to award a contract for alterations projects estimated to cost between $5,000 and $1 million including renovation, rehabilitation, repair and maintenance, and smaller scale new construction for clearing deferred maintenance backlog, performing emergency work, and renovating facilities, with time periods generally within 90 to 180 calendar days. The classes of work included in this exemption include:
      1. a. Tenant improvements and remodeling;
      2. b. Roofing; and
      3. c. HVAC.
   3. 3. The City may use a job order contracting method to award a contract for civil construction and building alteration projects estimated between $5,000 and $1million and include concrete work, paving, street improvements, ADA ramps, building renovation, rehabilitation, repair and maintenance, and smaller scale new construction for clearing deferred maintenance backlog, performing emergency work, and renovating facilities, with time periods generally within 90 to 180 calendar days. The classes of work included in this exemption include:
      1. a. Civil construction; and
      2. b. Tenant improvements and remodeling.