1. POLICY. The Simplified Bidding Process is necessary when the estimated cost of a supply, service (except printing), or equipment is greater than $5,000 and less than $25,000. The Simplified Bidding Process may be performed by departments or will be performed by Purchasing Services . Departments may RECOMMEND awards to Purchasing Services. Simplified bidding performed by departments will be subject to review by Purchasing Services which may elect to solicit additional bids to assure the requirement for competitive bidding has been met. Official award will be made by Purchasing Services. Simplified Bidding is not intended to circumvent other appropriate purchasing procedures. Mandatory State Bulletins must be used unless prior approval is obtained through Purchasing Services. UW-Madison and UW System (UWS) have non-mandatory contracts available for department convenience and savings. See Websites: http://www.bussvc.wisc.edu/purch/contract/conindx.html for UW Madison Contracts or http://www.uwsa.edu/proc/home-5.htm for UW System Contracts. 2. Simplified Bidding is suggested for all purchases less than $25,000. Best Judgement Purchases, of $5,000 or less may beawarded to the vendor judged best able to supply at best price available without Simplified Bidding. For more information see PPP 3 for Best Judgements or contact Purchasing Services for instructions.CAUTIONS. All UW-Madison personnel involved in soliciting bids are responsible for compliance with the laws, administrative rules and regulations of the State of Wisconsin Campus departments must follow UW-Madison Purchasing Policy & Procedures: Website: http://www.bussvc.wisc.edu/purch/pppindx.html 2.1 When the cost of a transaction is estimated to be more than $25,000, Official Sealed Bids are required. Please contact your department purchasing person(s) or Purchasing Services for instructions. Bidders must be made aware of Standard Terms and Conditions. Refer to Website: http://www.bussvc.wisc.edu/purch/stdterms1.html 2.2 Ethics/Conflict of Interest. Classified Staff refer to Classified Employe Work Guidelines and Chapter ER-Pers 24 of the Wisconsin Administrative Rules. Faculty and Academic Staff refer to Wisconsin Administrative Code, UWS Chapter 8. Website: http://www.legis.state.wi.us/rsb/code/uws/uws.html
Only information needed to clarify a specification and prepare a bid may be given out and made available to all vendors. Vendors may ask to be notified of the bid results . Departments are not authorized to release this information until after the purchase order has been issued.. 2.3 Insurance. Insurance coverage will be required from the successful bidder for service, installation, inside delivery and other work performed on campus. It is imperative that this requirement be made known to the supplier as part of the bid specification. Contact your department purchasing person or Purchasing Services for assistance in this area. Review IPP 12, Website: http://www.bussvc.wisc.edu/purch/ipp/ipp12.html 3. CONTACT. For additional information on the Simplified Bid Processing, contact Purchasing Services for the agent who is assigned the commodity you are purchasing. Directory Site: http://www.bussvc.wisc.edu/purch/purchdir.html . 4. USAGE. Price quotes must be obtained from three or more viable vendors who are normally expected to carry or provide the supply, service or equipment. Always indicate that you are requesting quotes for ___ Repetitive/frequent requisitions from the same department for the same supply, service or equipment will be consolidated by Purchasing Services and the appropriate purchasing procedures will be followed. 4.1 Whenever possible, a minimum of one Minority Businesses Enterprise (MBE) should be requested to bid. For additional information on the MBE Program see Website: http://www.bussvc.wisc.edu/purch/mbe.html 4.2 When other campus departments or other government agencies are considered viable vendors, they should be contacted and considered prior to any competitive bidding process, not concurrent with. 4.3 Price quotes may be obtained through the following methods: current price lists, advertisements, telephone or verbal quotes, facsimile quotations, e-mail quotes, written bids, or previous quotes on file (see Sec. 4.5 below). Vendors contacted for price quotes must be documented. 4.4 When comparing bids/quotes, the following elements must be considered: price (discount), conformity with ORIGINAL specifications, delivery date (if specified), freight charges, and special preferences (MBE, sheltered workshops, etc. etc.). Alternate Bids. If vendors submit bids for product or service different from that specified, a determination must be made if the alternate item is an equal substitution. The vendor must provide sufficient product information for the user to evaluate the alternate item. Specifications must be clear and detailed enough to identify the products or services needed. Specifations that are not clear enough may result in products not meeting the needs of the department and may require rebidding.
5. REFERENCES PPP #3--Best Judgement ($5,000.00
or less) Purchases
PROCEDURES FOR THE SIMPLIFIED BID PROCESS 1. Prepare written specifications before soliciting bids. Elements that may be included are: 1.1 Quantity wanted; packaging information (i.e., 12 60-oz. containers/case). 1.2 Trade or brand name; manufacturer part number, model number, and catalog number. 1.3 Physical description; i.e. dimensions, size, color, weight, grade, finish; composition; performance requirements. 1.4 For installation and/or service contracts: insurance requirements, nature of service, location, time limits. 1.5 Delivery deadline if applicable; delivery location(s); type of delivery, i.e. dock delivery, installed. 1.6 Request for freight costs if not already included in the bid price. 1.7 Method of award, specify line item or lot total. 2. Prepare a bidders list by using bidders from previous purchases, catalogs, yellow pages, trade publications, or contact a purchasing agent for suggestions. Departments are encouraged to solicit bids from Minority Business Enterprises (MBE) and Sheltered Workshops. Contact your department purchasing person(s) or Purchasing Services for guidance on determining awards involving these types of vendors. 3. Obtain price quotations by one or a combination of the methods. In all methods, collect the following information: supplier/company name and order address; first and last name of person giving the quote; date and/or number of current price list used; date of quote; unit price, extended price, and lot total where designated; freight costs if not included in price; payment terms (i.e., net 30, 2% 10/N30); delivery date or calendar days until delivery from when supplier receives your order (i.e., 3 weeks after receipt of order (ARO); and designation of Minority Business and/or Sheltered Workshop using the Simplified Bid Summary Sheet. 3.1 Telephone. Contact the suppliers directly. It is important the suppliers understand you are taking COMPETITIVE BIDS and not placing an order. Provide all suppliers with the exact same specifications and information, and request they get back to you by a specific date with their quotation. The nature of the procurement and the urgency of your need will determine this deadline. Be sure to allow sufficient time for special situations where a site inspection may be necessary, i.e. service contracts. In the event you need to alter the specifications because of a change in needs, error in the specification, etc., it will be necessary to re-contact all suppliers. Remember, competitive bids are confidential until the purchase order is issued. 3.2 Facsimile (FAX). Prepare a list of your needs and the specification and transmit it to the suppliers. It is important to include in a prominent position, the phrase "REQUEST FOR BID" so the supplier does not think it is an order. 3.3 Written Request for Bid. Similar to a facsimile quotation except the document is mailed to the suppliers. 3.4 Price Lists. Prices may be taken from current price lists or advertisements. These lists MUST be current and appropriate for the commodity area. It is best to check with the supplier by phone or facsimile to confirm the pricing. In many cases, there may be an additional discount for a quantity purchase or an educational institution discount. 3.5 In the event the supplier does not respond by the stated deadline,
the phrase "No Response" should be entered on the Simplified
Bid Summary Sheet. This no response may be used to meet the requirement
of three or more solicitations. 4. Analyze bid results. The recommended award shall be made to the lowest responsible bidder meeting all the specifications (to be determined by an agent or delegated agent). 4.1 Minority Business Enterprises receive a 5% price preference and Sheltered Workshops receive a 2% price preference in competitive bidding. Contact your department purchasing person(s) or Purchasing Services for guidance in making these determinations. 4.2 When the recommended award is made to other than the lowest bidder, a justification must be provided for each bid that is lower than the recommended award. Examples include: the low bid is for an alternate item of inferior quality (be specific), the low bid cannot meet the required delivery deadline, other deviations from the bid specification, or interstate reciprocity considerations. Contact your department purchasing person(s) or Purchasing Services for assistance in this area. 4.3 If there are tied bids or if there is some confusion, contact your department purchasing person(s) or Purchasing Services for assistance. 4.4 Attach the completed Simplified Bid Summary Sheet to the requisition. A sample sheet is included as Appendix A. Departments may use this format or develop their own so long as it includes the same information. 5. Upon reviewing simplified bidding results, Purchasing Services
may elect to solicit additional bids. Purchasing Services will be
the agent of record on the purchase order; it is their responsibility
to see that the requirement for competitive bidding has been met. Simplified Bid Summary Sheet |