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A. Lowest Responsible and Responsive Bidder. A contract shall be awarded to the lowest responsible bidder. In determining the lowest responsible bidder, in addition to price, there shall be considered:

1. The ability, capacity and skill of the bidder to perform the contract;

2. Whether the bidder can perform the contract within the time specified, without delay or interference;

3. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

4. The quality of performance of previous contracts for the borough by the bidder;

5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract;

6. The sufficiency of the financial resources and ability of the bidder to perform the contract;

7. The number and scope of conditions attached to the bid;

8. If a bid by a responsible and responsive bidder whose principal place of business is within the borough is higher than that of the lowest bid by a responsible and responsive bidder, preference may be given to the local bidder, as follows:

a. $1,000,000 or less – seven percent local preference,

b. $1,000,001 to $5,000,000 – five percent local preference, or

c. Over $5,000,000 – two percent local preference.

No local bidder preference shall be allowed if such an award is contrary to state or federal regulations.

B. Award to Other than Low Bidder. A decision to award a contract to other than the bidder offering the lowest price shall be made only by the assembly. When an award is given to other than the lowest bidder, a full and complete written statement of the reasons therefor shall be delivered by the mayor or the mayor’s designee to the unsuccessful low bidder or bidders and filed with the other papers relating to the transaction. The minutes of the assembly relating to the matter may be used as the required written statement.

C. Negotiation. If the lowest and best bid for a construction project exceeds the budgeted amount and the borough assembly does not make additional funds available, the manager shall attempt to negotiate with the bidder to reduce the project scope sufficiently to bring the estimate of cost within the funds available.

D. State Contract Requirements. Contracts for construction projects over $25,000 are subject to the AS 36.05 minimum wage rate requirement and construction projects over $100,000 are subject to the AS 36.25.010 payment and performance bond requirements. (Ord. 15-12-425 § 4; Ord. 13-03-316 § 4)