Dated: 2/28/07
Replaces: 1/23/03
Internal Policy and Procedures
Bid Process - Official Sealed
POLICY:
Competitive bids shall be developed and processed in compliance with the state’s procurement process (refer to PRO-C-1.) This paper is not intended to replace training by an agent supervisor.
PROCEDURE:
(All procedures are performed by agent unless otherwise specified.)
[NOTE: If a sheltered work center has a product/service, you should negotiate prior to issuing a new bid. If unable to negotiate a price, agent should contact DOA to negotiate further. DOA will resolve and advise how to proceed.]
1. Determine department needs associated with purchase. Use appended work sheet to assist collecting information.
2. Determine if any evaluative measures other than price; if so, refer to IPP #50.
3. Develop and prepare bid document. Draft may be used as basis for discussions with vendor and/or departments.
3.1 Determine whether Special Approvals are required. If required, ensure that they have been obtained and are addressed (refer to IPP #26).
3.2 Edit the appropriate Special Conditions of Bid (SCOB)
3.3 Establish the Itemized Bid List which is the format for bidders to offer their prices consistent with the Method of Award selected in SCOB’s (i.e. item number, quantity, unit, description, manufacturer, unit price and total price).
Price structure:
- discounts from established price list (Use if confident that all bidders can provide pricing from the exact same price list [e.g. a specific manufacturer’s price list])
- quantity (Insert a quantity that is your best estimate of annual usage. The end result should be that you will get the best available pricing based on the estimates presented.)
- price breaks: dollar and item quantity (Confer with potential bidders to identify appropriate levels of quantity and/or dollar breaks. [e.g. 1 pencil=10 cents, dozen = $1.00])
- packaging (Many items are packaged and sold in quantities of more than one. Confer with potential bidders to ensure that you are requesting units in accordance with the way they are packaged and sold [e.g. each, dozen, pound, liter, pallet].)
- apply weight factors to the bid by assigning an arithmetic value (percentage or estimated quantity) to item(s) or categories of products:
- to emphasize their significance to the bid
- to indicate items that are most frequently purchased
- to indicate quantity levels that are most frequently ordered
- where the value is important or has significance
- a market basket is a short list of items from a larger list of related products [i.e. office supplies]. Use this method of awarding the bid to simplify the bid award process and to ensure that you are getting the best price for the products purchased in higher quantities, or those that have higher cost. The market basket must be determined prior to bid opening and be revealed at bid opening. The value in not revealing during the bid process is to avoid low-ball prices.
3.4 Prepare specifications. All specifications should be general or manufacturer specific where competition exists. If space permits, specifications may be included/combined with Itemized Bid List. [Refer to PRO-B-6 and IPP #27].
Edit as needed the Bidders Response Sheet.
Create a bidders list of vendors with vendor number(s) or appropriate addresses in the business of supplying required product/service (viable) and are apt to respond. Include minority businesses (refer to IPP #58, section 4.2.A).
4. If needed, meet with or contact vendors and/or end users to establish and confirm the following. If meeting, suggest a draft bid be distributed for discussion.
4.1 Item or service can or cannot be supplied.
4.2 Feasibility of contract requirements.
4.3 Quantity or monetary price breaks (refer to 1.3.A.). Should be structured consistent with standard industry sales practices.
4.4 Storage or shipping requirements should be structured consistent with standard industry sales practices.
4.5 Ensure specifications allow for open competition.
5. Prepare bid package
5.1 Submit bid package to bid processing including the following:
- Incoming Request for Bid
- Bidders List (to be listed on Incoming Request for Bid form or separate list)
- Special Conditions of Bid (SCOB)
- Specifications
- Itemized Bid List
- Drawings/Samples
- Requisition (if included)
- STOP sign*
- Letters to file
- Supporting documentation
5.2 Bid Processing will:
- Assign bid number
- Verify vendor numbers
- Determine opening date
- Enter bid data on purchasing system
- Prepare the bid jacket to hold original bid, letters to file, supporting documentation and all bids as received
- Prepare/print/proof bid document
5.3 Agent will proof, edit if necessary, and sign bid package.
5.4 Bid Processing will finalize and mail (or fax or e-mail ) bid package:
- Make changes as requested by agent to bid document
- Package and mail (or fax or e-mail) bid to vendors on bid list
- When requested by agent, advertise in the official state newspaper as required by PRO-C-5, para IV.B and PRO-C-6, Legal/Public Notice
- File bid jacket until opening date
- Record receipt of bids as received and add to bid jacket file
- Post it on Vendornet
- Notify DOA MBE Director (via e-mail and fax)
6. If bid specifications are protested, agent refer to PRO-C-34
7. Amendments
Agent receives bid inquiries and conducts required site visits (refer to IPP #16). If a bid inquiry or site visit results in changes to bid condition(s) or specification(s) these changes must be communicated to all bidders by processing a bid amendment.
Agent will:
- Pull bid jacket.
- Photocopy both sides of original work copy of Incoming Request for Bid form and write the reason for the amendment in the area specified on the backside.
- Photocopy the affected pages of the bid and edit by marking the changes.
- Extend the due date if less than 7 calendar days remain before bid opening date or if bidders will need more time due to the changes in the amendment.
- Type and mail, fax or e-mail out amendment to all vendors
- Update on purchasing system
- Post it on Vendornet
Cancellation of bid before it is opened
Agent receives notice from the requesting department that they no longer need the bid and want to cancel it due to change in specifications or want to rebid it at a later date. A cancellation notice must be communicated to all bidders by processing a bid amendment.
7.1 Agent will:- Pull bid jacket.
- Photocopy both sides of original work copy of Incoming Request for Bid form and write the reason for the cancellation in the area specified on the backside.
- Type and mail, fax or e-mail out amendment to all vendors
- Update on purchasing system
- Cancel it on Vendornet
7.3 On the day prior to the bid opening, bid processing will notify the agent if no bid responses have been received.
7.4 If agent is not confident bids will be received by bid opening time he/she must either call bidders or accept “no bid” situation and proceed to step 9 below.
- If calling all bidders remind them of the due date, ask if there are any problems that caused their non responsiveness.
- If potential bidders state there were no problems, determine whether additional time would enable a response. Decide whether to issue an amendment extending the bid due date.
- If potential bidders state there are problems with the bid, confer with end user if necessary, and issue amendment before 2:00 PM extending the due date and correcting the problem(s).
9. Agent decision required if all are “no bid” or no bid responses are received:
9.1 Contact solicited bidders to identify problems
9.2 Advise department
9.3 Determine if you should re-bid or discontinue process
9.4 If determined to re-bid, return to step 5.
10. Agent will review bids:
10.1 Confirm receipt of required submittals and verify bids are signed.
10.2 Ensure pricing is as requested based on Itemized Bid List.
10.3 Forward bid package to bid processing.
Bid Processing will:
10.4 Prepare abstract (refer to bid processing procedure manual).
11. Agent will analyze bids:
11.1 Verify compliance with specifications and conditions of bid.
11.2 Review exceptions taken by bidders and determine whether acceptable or not.
- If no one vendor meets ...
- If requirement is FOB Destination ...
11.3 If only one vendor responds to a request for bid and includes a collaboration agreement with their bid response, purchasing will notify the department that such an agreement was included and the discount provided by the bidder requires acceptance of this agreement. All documents will be sent to the department for review. If the department determines that it is within the University's best interest to pursue the collaboration agreement, they must contact RSP to review and approve the agreement. A Purchase Order will not be issued until RSP has approved and signed the agreement. At that time we will also determine with RSP whether the collaboration funding will flow through the University as contract revenue or as a purchase discount. If it is to flow as a purchase discount, it will be reflected on the Purchase Order and the actual collaboration contract will be referenced as the source of the discount. If it is to flow as contract revenue, then the PO will be for the full dollar amount and we will put positive approvals on the PO so that the invoice is not paid until the University has received the collaboration funds.
If more than one vendor responds to a request for bid and one or more bidders include a collaboration agreement with their response, the vendor(s) will be asked to withdraw their collaboration agreement as part the bid evaluation. If they will not withdraw the agreement, they will not be considered for an award. Purchasing may also chose to issue a complete rebid and consider an RFP so that others may propose similar arrangements.
11.4 Verify that bid is not labeled confidential/proprietary. If bid is labeled confidential/proprietary, bidder must withdraw that requirement in writing in order to be considered.
11.5 Proof abstract ensuring bid prices and abstract agrees (i.e. minority preference).
11.6 Report suspected anti-trust/collusion to Agent Supervisor Director (refer to PRO-D-26)
11.7 Complete Notification of Bid Results (NOBR) process (refer to IPP #25)
11.8 Evaluate samples/demos/references/and site visits (refer to IPP #16)
12. Federal Debarment
As per the process defined in IPP #3, when there is an impending purchase of $100,000 or more involving federal funds (defined as account funds 142 thru 152 (most notably 144), the agent must acquire a debarment certification from the vendor before issuing the purchase order. In some cases debarment status can be checked via the web, please refer to IPP #3 for a process clarification and detail.
13. Determine award
13.1 Review NOBR to ensure acceptability of department award determination request and confirm department any justification to bypass low bid is valid and initial your acceptance on the justification form.
13.2 Document justification for rejecting low bid on the abstract or attach to abstract.
13.3 Confirm the intended awarded bid meets specifications and conditions of bid.
13.4 Ensure Request for Bid (RFB) form from intended awardee is signed as bid must be signed before Intent to Award (ITA)/Notice of Award (NOA) can be issued. If not signed, bid processing staff will send signature request letter.
13.5 Process ITA/NOA letters (refer to IPP #21)
13.6 If protest received from bidder(s) (refer to IPP #22)
14. Award bid/contract. Issue purchase order, contract award letter and/or a supplemental contract, if appropriate.
15. Complete and file cost analysis if necessary. (refer to IPP #10)
16. Forward to bid processing for publication (refer to IPP #17) and/or filing.
REFERENCES:
State Procurement Manual PRO-B-6
State Procurement Manual PRO-C-1
State Procurement Manual PRO-C-5
State Procurement Manual PRO-C-6
State Procurement Manual PRO-C-34
State Procurement Manual PRO-D-26
IPP 2 Bid Openings
IPP 3 Federal Debarment
IPP10 Fair Price Analysis
IPP 16 Evaluation of Samples and Demonstrations and Conducting of Reference Checks and Site visits
IPP 17 Contracts, Publishing and Distribution
IPP 21 Intent to Award Letter/Notice of Award Process
IPP 22 Protest of an Award Process
IPP 25 Notification of Bid Results
IPP 26 Special Approvals Process
IPP 27 Specifications, Use of Manufacturer or Brand Names
IPP 50 Request for Proposal (RFP)
IPP 58 Contract Management
FORMS:
Special Conditions of Bid SCOB - for Contracts
Special Conditions of Bid SCOB -
for specific bids
Itemized Bid List
Incoming Request for Bid form (worksheet for
Bid Processing)
Standard Terms and Conditions of Bid
Special Conditions of Bid - for Proposals