Solicitation of Bids, Proposals, Design Professional Services, Approved Vendor Lists, Sole Source Purchases, and the Award of Procurement Contracts

Procedure 1221-PR2

Purpose & Scope

Purpose

To implement Policy 1221 and outline rules for the solicitation of quotes, bids, proposals, and award of University Procurement Contracts, consistent with the provisions of Utah Procurement Code.

Scope

This procedure is binding for all University colleges, departments, and units.

Definitions

The definitions provided in Policy 1221 apply for this procedure.

Rules & Procedures

Competitive Bidding

  1. Except as otherwise provided in this procedure, Organizational Units must submit a requisition to Purchasing and Contract Services for all purchases exceeding the Standard Competitive Bid Threshold. (see Procedures 1221-PR1)
  2. Procurement related contracts are a result of a Standard Procurement Process.  You should never have a procurement related contract without having followed Policy 1221.
  3. Procurement of items exceeding the Formal Purchase Threshold will be awarded only after solicitation of either an Invitation for Bid, a Request for Proposal or valid sole-source procurement event. (see Procedures 1221-PR1)
  4. Purchasing and Contract Services (PCS) shall conduct procurement services for the University except as otherwise provided under Policy 1221 and supporting procedures. PCS shall conduct solicitations from a reasonable selection of suppliers, contractors or firms, from whom, in the judgment of PCS, the university’s procurement needs can be met.
  5. PCS shall conduct procurement for construction, architecture and engineering services as delegated by the Division of Facilities Construction and Management (DFCM). Under this delegation, PCS may follow procurement rules adopted by the state DFCM.
  6. If only one (1) response is received in response to a solicitation for bids or proposals:
    1. An award may be issued if the requesting department determines pricing is fair and reasonable.
    2. The solicitation may be canceled or reissued to seek additional competition.

Specifications

  1. Organizational Units shall draft specifications to clearly describe requirements and encourage competition. Specifications shall emphasize the functional or performance criteria necessary to meet the needs of the Organizational Unit. PCS is responsible for the approval, issuance, revision, maintenance and monitoring of specifications for supplies and services required by the University except as otherwise provided in University Purchasing Policy and Procedures. Organizational Units of the University will prepare specifications for the supplies or services they require.
  2. All Specifications shall seek to promote overall economy and best use for the purposes intended and shall encourage competition in satisfying university needs. Specification may not be unduly restrictive.
  3. Specifications or requests for bids or proposals may designate a brand name "or equivalency" as a means to identify the performance or other specific requirements of procurement. When so used, the specifications shall include the salient features of the brand name that must be met by bidders or offerors.
  4. Under limited circumstances, specifications may require a brand name without an equivalency if the Organizational Unit that wrote the specifications provides a written justification and PCS approves the written justification.  (See 1221-PR2.F.3 sole-source).
  5. Consistent with University Policy 1221.2.9: an individual who has a conflict of interest may not participate in writing a specification or in the award to a supplier. Consequently, an individual who has a substantial interest in a business entity that intends to participate in or respond to a solicitation may not participate in writing or developing the specification for that solicitation or in awarding the contract associated with that solicitation. An Organizational Unit may retain the services of an individual to assist in writing specifications or other components of writing a solicitation; however, that individual is not eligible to respond to a solicitation or receive a contract award related to the specifications.

Invitation for Bid (IFB) - Formal Bidding Requirements

  1. 1. A formal bid process is conducted for purchases exceeding the Formal Purchase Threshold (1221-PR1). Organizational Units must submit a Purchasing Requisition in EZ-BUY to Purchasing and Contract Services for these purchases. PCS shall determine whether the solicitation method for this procurement is an IFB (Invitation for Bid) or an RFP (Request for Proposal)
    1. The Purchasing Requisition in EZ-Buy most often should be done using the “Non-Catalog Form”.
  2. PCS is responsible for assuring that all bidding procedures, including the invitation to bid, giving of notice, establishment of criteria for bid evaluation, opening and evaluation of bids received, acceptance of bids, and awarding of contracts are in compliance with the requirements of Utah Procurement Code.
  3. Public notice of invitations for bids shall be given a reasonable time, not less than seven (7) consecutive days prior to the date for the opening of bids. The Director of PCS may determine in writing that a shorter time is necessary for a particular procurement.
  4. PCS shall record the amount of each bid, together with the name of each bidder, in writing or electronically at the time and place of bid opening.
  5. Correction or withdrawal of inadvertently erroneous bids before or after award, and the cancellation of awards or contracts based on such bid mistakes, may be authorized by the Director of PCS or his/her designee, when requested in writing and accompanied by full documentation of the facts leading to presentation of the erroneous bid. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the university or fair competition will be permitted.
  6. The university shall award a bid to the lowest Responsive and Responsible bidder who meets the objective criteria described in the Invitation for Bid.
  7. If used, a multiple stage bidding process shall request the submission of unpriced offers to be followed by pricing bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation stage.

Request for Quote (RFQ) - Informal Quote Requirements

  1. An informal quote process may be conducted for a purchase between the Standard Competitive Bid Threshold and the Formal Purchase Threshold (1221-PR1). Organizational Units must submit a Purchasing Requisition in EZ-BUY to Purchasing and Contract Services for these purchases. PCS shall determine the solicitation method for an informal quote process.
    1. The Purchasing Requisition in EZ-Buy most often should be done using the “Non-Catalog Form”.
  2. PCS may solicit informal purchases by electronic means including email, electronic bids, telephone, or a request for written quotes.
  3. Informal purchases should be documented with at least three (3) written quotes or proposals, whenever possible.
  4. The university shall provide the award to the supplier offering the lowest Responsive and Responsible quotation based on objective criteria described in the solicitation.
  5. PCS shall record the amount of each quote, together with the name of each bidder, in writing.

Request for Proposals (RFP)

  1. An RFP process is conducted for purchases in which we gather potential solutions, capabilities and pricing from multiple suppliers for a specific project. Organizational Units must submit a Purchasing Requisition in EZ-BUY to Purchasing and Contract Services for these purchases. PCS shall determine whether the solicitation method for this procurement is an RFP (Request for Proposal) or an IFB (Invitation for Bid)
    1. The Purchasing Requisition in EZ-Buy most often should be done using the “Non-Catalog Form”.
  2. A RFP process may be used instead of bidding (IFB) if determined by PCS the process will provide the best value to the Organizational Unit, and if criteria in addition to cost should be considered.
  3. The Director of PCS or designee is responsible for ensuring the integrity of the RFP process in conformance with Utah Procurement Code.
  4. Public notice of the RFP shall be given a reasonable time, not less than seven (7) calendar days prior to the date for the opening of proposals. A longer time period may often be required.
  5. The RFP process shall include:
    1. a description of the procurement goods and/or services sought;
    2. a description of the subjective and objective criteria that will be used to evaluate the proposal;
    3. the standard contractual terms and conditions;
    4. the relative weight that will be given to each criterion, including cost;
    5. the formula that will be used to determine the score for cost;
    6. a description of each stage and the criteria and scoring that will be used to screen offerors at each stage for multi-stage RFP’s;
    7. all other requirements of Utah Procurement Code.
  6. An evaluation committee shall be appointed consisting of at least three (3) individuals who:
    1. do not have a conflict of interest;
    2. can fairly evaluate each proposal;
    3. during the time of the procurement, do not contact or communicate with an offeror for any reason other than conducting the procurement process or university business not related to the procurement;
    4. unless an exception is made in writing by the Director of PCS, do not know or have access to any information relating to the cost proposals from offerors until after the evaluation committee submits its final technical scores on all other criteria to PCS;
    5. meets all other requirements in Utah Procurement Code.
  7. PCS shall grant the award to the Responsive and Responsible offeror whose proposal receives the highest overall score (Technical + Cost) from the evaluation committee. If the highest scored offeror is disqualified, PCS shall grant the award to the next highest scored Responsive and Responsible offeror, or the RFP may be cancelled. The procurement file shall contain the basis on which PCS makes an award, including why the awarded offeror is the best value to the university.

Exceptions: Procurement without Competition (Non-standard Procurement)

  1. Small purchases up to the Standard Competitive Bid Threshold or the Consultant and Professional Services Threshold shall be processed in accordance with university purchasing Policy and Procedures 1221.
  2. PCS may utilize State Contracts authorized by Utah Procurement Code without additional competitive processes.
  3. Sole Source contracts. A contract exceeding the Single Purchase Threshold may be awarded for a supply, service, or construction item without competitive bidding when the Director of PCS or designee determines in writing only one source exists for the requisitioned item and procedures regarding a Sole Source procurement has been met Policy 1221.2.4. This may include, but not be limited to, any of the following considerations:
    1. There is only one source for the procurement item.
    2. The type of transaction includes compatibility/transitional costs from existing equipment, technology, software, accessories, replacement parts, or service, including professional services that are unreasonable or cost prohibitive.  See Policy 1221.2.4.2
    3. A Procurement item is needed for trial use or testing to determine whether the procurement item will benefit the Organizational Unit.  See Policy 1221.2.4.4
    4. A procurement item meets an exception to standard procurement process requirements under Procedures 1221-PR3, Utah Procurement Code Part 8 (Exceptions) or Utah Board of Higher Education Rule R-571.
  4. Publication of notice of Sole Source
    1. Public notice of a Sole Source shall be made in accordance with Utah Procurement Code Section 63G-6a-802(3), for a procurement that exceeds $50,000 and that will not be subject to a competitive process. The notice shall be given a reasonable time, not less than seven (7) consecutive days.
    2. The Director of PCS may make a written determination to approve a shorter time period.
  5. Extension of a contract without engaging in a standard Procurement process may be approved by the Director of PCS in accordance with Utah Procurement Code.
  6. See Procedures 1221-PR3 for additional exceptions to procurement requirements.

Approved Vendor List

When determined to be necessary or appropriate, PCS may prequalify prospective suppliers for particular types of supplies, services and construction. Award of a contract from an approved vendor list shall require a competitive process.

Contractual Terms

The Office of General Counsel and PCS shall develop, modify, and maintain standard contract clauses to be used in University Procurement Contracts. USU Facilities shall use standard contract clauses for contracts for construction and architect and engineering services as required by state law and adopted by the State Division of Facilities Construction and Management (DFCM).

Protest

Protests filed by aggrieved bidders, offerors, or potential bidders or offerors, shall be handled by PCS in consultation with legal counsel and in accordance with state law.

Policies, Procedures, Guidelines, Forms, and other Related Resources

Policies and Procedures

References

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