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<br />(c) All bids shall be formal bids submitted sealed in accordance with the <br />instructions contained in the "Invitation for Bid" form. <br /> <br />(d) The bids shall be opened in public, at the time and place stated on <br />the "Invitation for Bid." All bids shall be publicly declared. <br /> <br />Section 10. Section 2-806.1 is added to Chapter 2 of the Santa Ana Municipal <br />Code to read in full as follows: <br /> <br />Sec. 2-806.1. Acquisition of goods and services by reverse auctions; <br />Posting on Internet; Registration and requirements; Inapplicability to <br />construction contracts <br /> <br />(a) Notwithstanding the bidding provisions of this chapter, <br />reverse auctions may be utilized for the acquisition of goods <br />and services. The reverse auction process shall include a <br />specification of an opening date and time when real-time <br />electronic bids may be accepted, and provide that the <br />procedure shall remain open until the designated closing date <br />and time. <br /> <br />(b) All bids on reverse auctions shall be posted electronically on <br />the Internet, updated on a real-time basis, and shall allow <br />registered bidders to lower the price of their bid below the <br />lowest bid posted on the Internet. <br /> <br />(c) The purchasing manager shall require vendors to register <br />before the reverse auction opening date and time, and as part <br />of the registration, agree to any terms and conditions and <br />other requirements of the solicitation. The purchasing <br />manager may require vendors to be prequalified prior to <br />placing bids in a reverse auction. <br /> <br />(d) For purposes of this section, "reverse auction" means a <br />competitive online solicitation process for fungible goods or <br />services in which vendors compete against each other online <br />in real time in an open and interactive environment. <br /> <br />(e) The reverse auction process may not be used for bidding on <br />any construction contract that is subject to Section 422 of the <br />City Charter. <br /> <br />Section 11. Section 2-807 of the Santa Ana Municipal Code is hereby amended <br />such that it reads as follows (new language in bold, deleted language in strikeout for <br />tracking purposes only): <br /> <br />Ordinance No. NS-XXX <br />Page B of 10 <br /> <br />11A-8 <br />