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:Outline002_9    LG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  P<+ :Outline003_2   ," <DL,K?<6X9`(Courier NewK23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  iiiiiiii(359=AEIMQ7PPPPPPPPiP<+ :Outline003_3   ) <DL)G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  (359=AEIMQ8PPPPPPPPP+Hairline1 dTable_A<+ :Outline003_4  ` &<<DL&G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline003_5   #DL#G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline003_6    DL G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline003_7  h DDLG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline003_8   LG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline003_9    LG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline004_2   ," <DL,K?<6X9`(Courier NewK23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  <+ :Outline004_3   ) <DL)G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS   _     XXXX&%XX%&BestPracticesProcurementManualChapter4MethodsofSolicitationandSelectionf!f! (#Page  1  #&%#Ԉ  A )  xdEs xA#&v%%&F#&%%&v t #&v%%&#<+ :Outline004_4  ` &<<DL&G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  x9 Z6Times New Roman Regular<+ :Outline004_5   #DL#G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  \  `*Times New RomanTT G .U${XX  1  ڀ  ___{{See#{{#{{_ԀSection1.3.2,"FederalContractualSphere."#{{# x9 Z&Times New Roman F .U${XX  2  ڀ  _ {{UnitedStatesv.JohnC._Grimberg_ԀCo.,702F.2d1362,1367(FedCir.1983)(_in_Ԁbanc).#{ {f#ԴTABLE Sx9 Z&Times New Roman B .U${XX  3  ڀ  __{{SeeChapter6foradiscussionoftheprocurementmethodscommonly_used_Ԁforeachobjectofprocurement.#{{v#<+ :Outline004_6    DL G>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  x9 Z&Times New Roman<+ :Outline004_7  h DDLG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS   .U${XX  4  ڀ  __{{FTACircular4220.1E7.f.#{{s#<+ :Outline004_8   LG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  x9 Z&Times New Roman U .U${XX  5  ڀ  __49_CFR_Ԁ!{{#{!{#Ԁ661.7,AppendixAto!{{#{!{#Ԁ661.7,subparagraph(e).<+ :Outline004_9    LG>Kr`WingdingsG23  ..  2( 4 <DL2XXXS(\  `&Times New RomanS  x9 Z&Times New Roman  .U${XX  6  ڀ  __Asapracticalmatter,youmaywishtoadoptthestatutorythresholdfortheDavisBaconActof$2,000asthe  micropurchasethresholdforconstructionservices.ThisiswhathasbeendonewiththeFederalAcquisition t Regulation!see,FAR'{{#{'{#Ԁ13.60(a)whichdefinesmicropurchasesforconstructionasbeinglimitedto$2,000. 8 However,ifyouhavearequirementfor$2,300ofconstruction,younolongerneedcompetitivequotations,butyou L stillneedDavisBaconwageratesubmissionsandcompliance.'tPx9 Z&Times New Roman .U${XX  7  ڀ  __,{{FTACircular4220.1E8.c.#{,{s#x9 Z&Times New Roman(;2U$ !  XX  0  ڀ($  0    .U${XX  8  ڀ  __4{{Youmustnotsplitaprocurementthatwouldbeinexcessof$2,500(threewidgetsworth$1,500apieceforatotal  of$4,500)intosmallerpurchases(threesequentialpurchasesof$1,500)inordertousethismethodofprocurement.#{4{s#1.x9 Z&Times New Romani1.TABLE R'tP'HKr`Wingdings<6X9`(Courier Newhttp://www.fta.dot.gov/library/legal/buyamer/1.i1.  .U${XX  9  ڀ  __I{{Althoughitiswrittenforthemoredetailed"priceanalysis"requiredincompetitive_procurements_,FAR15.805  discussespriceanalysistechniquesthatmaybeusedoradaptedtosupportyourdeterminationsforthese t micro-purchases.#{I{s#_Hlt55119053_Hlt55119218x9 Z&Times New Roman\TABLE AC .U${XX  10  ڀ  __Q{{ԀFAR13.106(a)(3).#{Q{t#x9 Z&Times New Roman  .U${XX  11  ڀ  __V{{ThesechangeswerepublishedaspartofFederalAcquisitionCircular90-40inVolume61oftheFederal  Registeronpages39189through39199(61Fed.Reg.39189-39199(July26,1996)).#{V{t#x9 Z&Times New Roman .U${XX  12  ڀ  __\{{_FAR13.103(e)._#{\{t#<OU:Body Text In    ," <DL,  2( 4 <DL2   x9 Z&Times New Roman f .U${XX  13  ڀ  __a{{_FAR13.106(a)(3)(i)and1.603-3(b)._ԀSeealsoSection2.1.2,"Autonomy"regardingdecentralization,  generally.#{a{t#x9 Z&Times New Roman .U${XX  14  ڀ  __h{{FAR13.106(b).#{h{t#x9 Z&Times New Roman  .U${XX  15  ڀ  __m{{GAO/_NSIAD_-96-138(8/6/96).GAOReportsareavailableontheInternetattheGovernmentPrintingOffice  website:_ "http://www.access.gpo.gov/".#{m{t#x9 Z&Times New Roman v .U${XX  16  ڀ  _u{{Forfurtherinformation,contactMs.Sandra_Kuykendall_Ԁat4v 8O  5  #{u{d#_  u{{skuykendall@islandtransit.org_L.  6.  7 #{u{}#\  `&Times New Romanmailto:skuykendall@islandtransit.org  .U${XX  17  ڀ  __{{{SeeFTACircular4220.1E9.e--"Granteesshalluse[theBrooksAct]forcontractingforA&Eservices_...._  (emphasissupplied)"SeeSection6.5,ArchitectEngineeringServicesforacompletediscussion.#{{{w#x9 Z&Times New Roman .U${XX  18  ڀ  __{{SeeSection6.5,"ArchitectEngineeringServices."#{{w#x9 Z&Times New Roman  .U${XX  19  ڀ  __{{SeediscussionoftheserequirementsinSection8.1.3,"DavisBaconAct."#{{w#x9 Z&Times New Roman 4 .U${XX  20  ڀ  __{{A"deliveryorder"asopposedtoapurchaseorder,isissuedtypicallyunderthetermsof_arequirements_Ԁtype  contractthathasbeencompetitivelyprocuredunderformalprocedures.Thedeliveryorderissimplyanordering t mechanismunderthatcontractandisnotanindependentcontractlikeapurchaseorder.#{{t#tTABLE Hx9 Z&Times New Roman .U${XX  21  ڀ  _{{FTACircular4220.1E9.#{{d#x9 Z&Times New Roman .U${XX  22  ڀ  _{{FTACircular4220.1E9.c.(1).#{{d#fn113x9 Z&Times New Roman .U${XX  23  ڀ  _{{FTACircular4220.1E9.c.(3).#{{d#x9 Z&Times New Roman .U${XX  24  ڀ  _SeeSection4.4,"SealedBids,"andFTACircular4220.1E9.c.(2). .U${XX  25  ڀ  _SeeSection4.5,"CompetitiveProposals,"andFTACircular4220.1E9.d.  .U${XX  26  ڀ  __{{SeeChapter3,"Specifications"foradiscussionoftheseandotherspecificationissues.#{{w#TABLE Ux9 Z&Times New Roman  .U${XX  27  ڀ  __{{TheBrooksActprocedures,requiredforArchitecturalandEngineeringservicesanddescribedinSection6.5,  goonestepfurtherbyprohibitingpricecompetitionandrequiringselectionbasedsolelyontechnicalcriteria.#{{t#x9 Z&Times New Roman _ResponsibilityTABLE P .__Specifications  .U${XX  28  ڀ  _{{In1990,theFTApublishedProcurementGuidelinesforThirdPartyContractingwhichincluded,inChapterII,  Paragraph7.I,astatementthat"All_ IFBs_ Ԁshouldbeadvertisedinamannerthatpromotesparticipationinthebidding t byallqualifiedandcapablefirms.Advertisingonlyinthelocalnewsmediaisnotnormallyadequate."This 8 documentwascanceledbythepublicationofFTACircular4220.1Cin1995andnofurtherguidelineshavebeen L issued.Theconceptof"allqualifiedandcapablefirms"isaviableoneunderfederallaw,andsuggeststhatyou  shouldtailoryourpublicityprogramstothesupplymarketsforyourprocurement.Thisiswhywehavediscussed  nationalandlocaladvertisementinthetextofthissubsectionandwhy,underthesubsequentdiscussionofmailing H  lists,itisimportantthatallknownfirmsthatprovidetheitemorservicebeingprocuredbesolicited.#{{d#x9 Z&Times New Roman  .U${XX  29  ڀ  __{{IfyouareinterestedinmoredetailsabouttheCBDandotherfederalgovernmentpoliciesrelatingtopublicizing  contractactions,thosedetailsarespelledoutinFARPart5.FARSection5.207detailswiththespecificsof t preparingandtransmittingthenoticesforinclusionintheCBD.#{{t#x9 Z&Times New Roman  .U${XX  30  ڀ  _{{Ifyouarenotsatisfiedwiththeperformanceofthecurrentcontractor,theappropriateremedyisnotto  arbitrarilydecidenottoissuethefirmasolicitationforthefollow-onprocurement.Ifyourperformanceconcernsare t welldocumented,youhavetwoalternatives.First,includethefirmonthelist,addressperformancerecordunder 8 anyappropriatetechnicalcriteriaIfitisultimatelytheapparent_ awardee_ ,addressyourperformanceconcernsaspart L oftheresponsibilitydeterminations--thefirmmaybeabletoaddressyourconcernsatthistimetoyoursatisfaction.  Second,iftheperformanceconcernsareirretrievablydeep,itmayevenbepossibletoinitiatedebarmentor  suspensionatthelocal,state,orFederallevel.DebarmentsandSuspensionsaswellasResponsibility H  DeterminationsarespecifictopicsthatarediscussedinsubsequentsectionsofthisManual.#{{d#x9 Z&Times New Roman  .U${XX  31  ڀ  __{{Ifyoudoreceivenamesoffirmsfromtheconsultantthatpreparedthespecifications,itisrecommendedyoutry  toensurethere_arenoconflict_Ԁofinterestsituationsexisting(e.g.,therecommendedfirmiswholly-ownedsubsidiary t ofthespecificationpreparer)orthatthespecificationsarenotdraftedinsuchamannerastheonlyproductthatwill 8 meetthespecificationrequirementistheproductofthefirmtheywantaddedtothelist.Don'tletthiscaveat L discourageyoursolicitationofrecommendationsfromthatconsultant(theyareaverygoodsource),just_be_Ԁsensitive  tothefirmsprovided.#{{t#x9 Z&Times New Roman  .U${XX  32  ڀ  __Whilethe_IFB_Ԁrequirementsof{{#{{#Ԁ9.c.(2)aregoodpracticesforboth_IFBs_Ԁand_RFPs_,theevaluationcriteria  requirementof{{#{{#Ԁ9.d.(1)isrelevantonlyto_RFPs_ԀandisdiscussedinSection4.5.1, Solicitation&Receiptof t Proposals.x9 Z&Times New Roman Y .U${XX  33  ڀ  __{{Asamatterofinformationonly,referenceismadetotheFAR14.201-1and15.406-1forthe"Uniform  ContractFormat"andFAR14.201-9forthe"SimplifiedContractFormat"usedinbiddingfixedpricecontracts. t TheseareoptionalformatsusedbyFederaldepartmentswhichincludeagooddiscussionofwhatisincludedinthose 8 formatsandwhy.#{{t#x9 Z&Times New Roman n .U${XX  34  ڀ  __{{Averyhelpfulitemtoincludewithyoursolicitationpackageisanaddresslabelwhichincludestheexact  addressyouwantoffersmailedtoandaseparateaddresslabelwhichincludesyourstreetaddressandroomnumber t foroffersthataredeliveredtoyou.Withtheselabels,_ offerors_ Ԁcanaffixtheapplicableonetotheirofferandyouwill 8 beassureditiscomingtotherightplace.Itisalsoagoodideaforyoutoincludethesolicitationnumberonthe L labelswhichisofaidtoyour_ mailroom_ Ԁandyourstaffresponsibleforreceiptofoffers.#{{t#x9 Z&Times New Roman  .U${XX  35  ڀ  __{{Theserepresentationsandcertificationshavelegalsignificancethatshouldnotbeoverlookedbyeitherthe  _ offeror_ Ԁortheagency.The_ offeror_ Ԁcertifies,forinstance,thatitisnotpresentlydebarredorsuspendedbyanyfederal t agency.Thecontractingofficercanrelyonthatcertificationanddoesnothaveto"lookbehindit"indetermining 8 thefirm'sresponsibility.Ifitislaterdiscoveredthatthefirmwasinfactdebarredbyafederalagency,ithasmadea L falsecertification.Thereareadministrativesanctionsthatcanbeimposed(contractterminatedfordefault)and  possiblecriminalsanctionsundereitherfederalorstatelaws(orboth)forsubmittingafalsestatement.#{{t#x9 Z&Times New Roman  .U${XX  36  ڀ  __{{ThiscertificationisdiscussedinmoredetailinSection4.3.3.2.3,"LobbyingCertification."#{{t#x9 Z&Times New Roman@TABLE Q a .U${XX  37  ڀ  __{{ThiscertificationisdiscussedinmoredetailinSection4.3.3.2.1,"CertificationRegardingDebarment,  Suspension,andOtherResponsibilityMatters."#{{t#x9 Z&Times New Roman  .U${XX  38  ڀ  __{{ThiscertificationisdiscussedinmoredetailinSection4.3.3.2.2,"BuyAmericaCertification."#{{t#8ow6Plain Text  K?<6X9`(Courier NewKXXXS\  `&Times New RomanS  (9 Z(Times New Roman x9 Z&Times New Roman  !  _ @ <( 4 <DLX<% @ {XX  %r  {{  39  ڀFARPart15.201(f),forexample,requirestheCOtomakeavailableto allpotential_offerors_,uponrequest,  anyinformationdistributedatapresolicitationconference.TheclearpresumptionoftheFARisthat potential t _offerors_maynotbe(andneednotbe)presentattheconference.\  `&Times New Roman,fn132$ H__Ԁdiscussnotificationanddateextension  .U${XX  40  ڀ  __*{{Ifyoucannotidentifywhothe_offeror_Ԁisinthissituationwithoutopeningthebidorproposal,itisrecommended  thatyouopenitinthepresenceofawitness.Writedownthenameandaddressofthe_offeror_Ԁonly,andresealthe t envelopeorpackage.Returnittothe_offeror_Ԁwithacoverletterthatthepackagewasopenedonlysothe_offeror_ 8 couldbeidentified.Itisalsorecommendedthatamemorandumtothefilebemadebyyouandyourwitness L describingwhathappenedandwhy.Youmightwanttocopytheoutsideoftheenvelopetoshownoidentification  butitisrecommendedthatnocopiesbemadeofanyoftheofferdocumentation.#{*{t#x9 Z&Times New Roman  .U${XX  41  ڀ  __0{{ԀSeeSection9.2,"Changes"foramoregeneraldiscussionofthecostsofchanges.#{0{t#x9 Z&Times New RomanĘfn145  .U${XX  42  ڀ  __7{{SeealsothediscussionoftimelinessinSection4.4.2,"BidOpening."#{7{w#x9 Z&Times New Roman  .U${XX  43  ڀ  __>{{Asamatterofreference,yourattentionisinvitedtoFAR52.214-7and52.215-10forlanguageaddressing  latesubmissions,modifications,andwithdrawalsofoffersthatisincorporatedinFAR-coveredsolicitationsfor_ IFBs_  t and_ RFPs_ Ԁrespectively.ForcommentaryintheFARitselfrelatingtothosesolicitationclauses,seeFAR14.304 8 and15.412respectively.Primarilybecauseofthebodyoflawthathasdevelopedinterpretingtheseclauses,many L transitpropertieshaveeitheradoptedthislanguageorhavemodifieditslightlytomeettheirindividualrequirements.#{>{t#x9 Z&Times New Roman  .U${XX  44  ڀ  __E{{Somepractitionerserroneouslyrefertotheconsequencesofalateofferasoneof"non-responsiveness."Infact,  youneveropentheoffer(unlessneededtoforidentificationpurposes)andthuscannotdeterminewhetheritis t responsivetothematerialrequirementsofthesolicitation(thegeneraldefinitionofresponsiveness).Hadtheoffer 8 beenreceivedontime,itmaywellhavebeenresponsivebut,inthiscase,theofferisnotevenconsidered!#{E{t#x9 Z&Times New Roman .U${XX  45  ڀ  __TheserequirementsandapplicableclausesarediscussedindepthinChapter8.  .U${XX  46  ڀ  __N{{SeealsoChapter8,"ContractClauses,"andAppendixA.1,"FederallyRequiredModelClauses."#{N{w#x9 Z&Times New Roman  .U${XX  47  ڀ  __S{{49_CFR_ԀPart29,"DebarmentandSuspension(_Nonprocurement_)and_Governmentwide_ԀRequirementsfor  Drug-FreeWorkplace(Grants)."#{S{t#x9 Z&Times New Roman  .U${XX  48  ڀ  __Y{{"Debarment.Anactiontakenbyadebarringofficialinaccordancewiththeseregulationstoexcludeaperson  fromparticipatingincoveredtransactions.Apersonsoexcludedis'debarred'."49_ CFR_ Ԁ29.105.#{Y{t#x9 Z&Times New Roman  .U${XX  49  ڀ  __]{{"Suspension.Anactiontakenbyasuspendingofficialinaccordancewiththeseregulationsthatimmediately  excludesapersonfromparticipatingincoveredtransactionsforatemporaryperiod,pendingcompletionofan t investigationandsuchlegal,debarment,orProgramFraudCivilRemediesActproceedingsasmayensue.Aperson 8 soexcludedis'suspended'."49_ CFR_ Ԁ29.105.#{]{t#x9 Z&Times New Roman .U${XX  50  ڀ  __c{{49_CFR_Ԁ29.115(b).#{c{t#x9 Z&Times New Roman .U${XX  51  ڀ  __h{{49_CFR_Ԁ29.115(a).#{h{t#Trx9 Z&Times New Roman v  .U${XX  52  ڀ  __s{{See3boftheMasterAgreement,FormFTA_MA(12).#{s{w#8x9 Z&Times New Roman  .U${XX  53  ڀ  __|{{Becauseitisdiscussedasanaspectofresponsibility,andcanbeobjectivelydeterminedatanytimeuptothe  timeofaward,latesubmissionofthedebarmentcertificationcanbepermitted.#{|{t#x9 Z&Times New RomanTABLE L  .U${XX  54  ڀ  __{{YoumaysubscribebywritingtheSuperintendentofDocuments,U.S.GovernmentPrintingOffice,_Washington,  DC_Ԁ20402orbycallingtheGovernmentPrintingOfficeInquiryandOrderDeskat(202)783-3238.#{{t#x9 Z&Times New Roman  .U${XX  55  ڀ  __{{Thelistcanbeaccessed7daysaweek,24hoursperdayandasidefromnormalcostsoflocalorlong-distance  telephonecalls,theaccessisfreetotheuser.Toobtainacopyoftheuser'smanualforaccessingthesystem,contact t GSAat(202)501-4740.#{{t#x9 Z&Times New Roman  .U${XX  56  ڀ  _____GSA_Ԁadvisesthatresponsestotheseinquiriesshouldbefurnishedwithinoneworkingday.fn114TABLE B  .U${XX  57  ڀ  __{{See3boftheMasterAgreement,FormFTA_MA(12).#{{w#|TABLE Nx9 Z&Times New Roman  !  _% @ {XX   @ %+    58  ڀThetextoftheregulationreferstoPart25.108,butthissectionhasbeenmovedtoPart25.104. K .U${XX  59  ڀ  __{{Thepaymenttoany"person"toinfluenceorattempttoinfluenceanofficeroremployeeofanyfederal  departmentoragency,amemberofCongress,anofficeroremployeeofCongress,oranemployeeofamemberof t Congressinconnectionwiththeawardingofanyfederalcontract,themakingofanyFederalgrant,themakingof 8 anyfederalloan,theenteringintoofanycooperativeagreement,andtheextension,continuation,renewal, L amendment,ormodificationofanyfederalcontract,grant,loan,orcooperativeagreement.49_ CFR_ Ԁ20.100(a).#{{t#x9 Z&Times New Roman  .U${XX  60  ڀ  __{{Becausethelanguageoftheregulationsreferstoneedingthecertificationandapplicabledisclosuresattimeof  award,unlessyoursolicitationspecifiedotherwise,failuretosubmittheexecutedcertificationwiththeofferwould t probablynotbeconsideredaresponsivenessissuein_acompetitivebiddingprocurement_,andwouldnotdisqualify 8 the_offer.#{{t#_x9 Z&Times New Roman  .U${XX  61  ڀ  __{{The"LobbyingDisclosureActof1995"(Pub.L.104-65)madesomeamendmentsto31USC1352which  simplifiedtheinformationthatneededtobedisclosedonthisForm.Thosechangesaredetailedat61Fed.Reg.1412 t (January19,1996)andwillbeeventuallyincorporatedintoanewStandardForm.ThreeitemsoftheSF-_ LLL_ Ԁare 8 impacted:Item10aisamendedbyrevising"NameandAddressofLobbyingEntity"toread"NameandAddressof L LobbyingRegistrant";inItem10,thestatement"(attachContinuationSheet(s)SF-_ LLL_ -A,ifnecessary)"isremoved;  andItems11through15areremoved.#{{t#x9 Z&Times New Roman  .U${XX  62  ڀ  __{{SeediscussionatSection4.3.2.5,"Amendmentof_Solicitations."#{{w#_x9 Z&Times New Roman .U${XX  63  ڀ  __{{SeediscussionatSection4.3.2.3,"Solicitation."#{{w#x9 Z&Times New Roman > .U${XX  64  ڀ  _Therequirementsof15.moftheMasterAgreementmirrorthoseof11ofFTACircular4220.1Eandrefer  thegranteetotheprovisionsof49_ CFR_ Ԁ18.36(h).  .U${XX  65  ڀ  __{{SeeSection6.1,_"Construction."#{{w#_x9 Z&Times New Roman  .U${XX  66  ڀ  __SeeSection6.2{{,"Equipmentand_Supplies."#{{#_x9 Z&Times New Roman .U${XX  67  ڀ  __{{SeeSection6.3,"RollingStock."#{{w#x9 Z&Times New Roman .U${XX  68  ڀ  __{{SeediscussioninSection4.5.4,"DiscussionsandClarifications."#{{w#x9 Z&Times New Roman f .U${XX  69  ڀ  __{{Asanexampleofhowtheseandothersituationshavebeenaddressedinthefederalenvironment,seeFAR  _28.101-4.#{{t#_x9 Z&Times New Roman L .U${XX  70  ڀ  __{{SeeChapter3,_"Specification,"_Ԁforguidanceonspecification_development.#{{w#_x9 Z&Times New Roman  .U${XX  71  ڀ  __{{See  Section2.4.2.1,"FullandOpenCompetitionPrinciple,"foradiscussionoffullandopencompetitionand  theeffectofrestraintson_competition.#{{w#_x9 Z&Times New Roman k .U${XX  72  ڀ  __{{SeediscussionofadvertisementandpublicizinginvitationsinSection4.3.2.1,"AdvertisingandPublicizing  _Solicitation."#{{w#_x9 Z&Times New Roman L .U${XX  73  ڀ  __{{Oneinstancerequiringdiscussionistheevaluationofapparenterrors;see Section4.4.5,"Bid_Mistakes."#{{t#_x9 Z&Times New Roman .U${XX  74  ڀ  __{{Seediscussioninsection4.4.3,"ResponsiveBidder."#{{w#x9 Z&Times New Roman  .U${XX  75  ڀ  __ {,{Ԁ AsstatedintheRequirementsdiscussion,discounts,suchaspromptpaymentdiscounts,shouldonlybeusedin  thecalculationoflowbidifthehistorywithinyouragencyindicatesdiscountsofferedareusuallytakenadvantage t of.#{{z#x9 Z&Times New Roman .U${XX  76  ڀ  __{{ԀFTACircular4220.1E,9.c.(2)(_c_).#{{t#x9 Z&Times New RomanHP LaserJet 5,,,,0 +__BidOpening  .U${XX  77  ڀ  __{{Youshouldunderstandthatifanunsuccessfulbidderdiscoversanerror,theywilllikelyfileaprotest(or_formal  query_)almostimmediately.Itisveryimportant,therefore,thatyouproceedverycarefully.Someprocedures,to t discouragefalsehopesandresultingarguments,prohibitthereadingofbidsthatareclearlydefective(e.g.,missing 8 _bidguarantee_).#{{t#__x9 Z&Times New Roman R .U${XX  78  ڀ  __{{SeetheextensivediscussionofthisinSection4.3.3.1,"ReceiptofOffers_,"_whereweaddressedthe  considerationsthataretypicallyweighedwhenpoliciesareadoptedconcerningthereceiptofoffers.TheFAR t provisiontypically_used_Ԁasa"model"isFAR_52.214-7.#{{w#_x9 Z&Times New Roman  .U${XX  79  ڀ  __{{See,e.g.,J.C.KimberlyCo.,Comp.Gen.B-255018.2,94-1_CPD_Ԁ18279(Abidthatwashandcarriedtothebid  openingroomsecondsafterthebidopeningofficerdeclaredthattimehadarrivedwasproperlyrejectedaslate.)One t oftheexceptionsaddressedinFAR52.214-7andelaborateduponinFAR14.304-1(a)(2)addressesthesituation 8 whenlatereceiptofthebidisduesolelytomishandlingbytheagencyafterreceiptattheagency_ location.#{{w#x9 Z&Times New Roman m .U${XX  80  ڀ  __{{Id.Seealso,_Swinerton_Ԁ&_Walberg_ԀCo.,Comp.Gen.B-242077.3,91-1_CPD_Ԁ318.#{{w#x9 Z&Times New Roman  .U${XX  81  ڀ  _{{Thisparagraphwaschangedfrompriorversionsofthecirculartoeliminatethephrase oracceptanceofa  singleproposalwhendiscussingwhatconstitutesasolesourceprocurement.FTAbelievesthat,uponreceivinga t singlebid(orproposal)inresponsetoasolicitation,thegranteeshoulddetermineifcompetitionwasadequate.This 8 determinationmayincludeareviewofthespecificationstodetermineiftheywereundulyrestrictiveorcontacting L sourcesthatchosenottosubmitabidorsolicitation.Itisonlyifthegranteedeterminesthatcompetitionwas  inadequatethattheprocurementshouldproceedasasolesourceprocurement.Themerefactthatonlyonebidor  proposalwasreceiveddoesnotautomaticallymeancompetitionwasinadequatesincemanyunrelatedfactorscould H  causepotentialsourcesnottosubmitabidorproposal.#{{d#\  `&Times New Roman  .U${XX  82  ڀ  _{{Section5.2CostandPriceAnalysisdiscussesvariouspriceanalysistechniques,andtheyinclude(among  others)comparisontopreviouspurchases,comparisontoavalidgranteeindependentcostestimate,andvalue t analysis.#{{d#\  `&Times New Roman  .U${XX  83  ڀ  _Youmayhave,forexample,datafrompreviouspurchases,anindependentcostestimate,etc.withwhichto  comparethebidprice,butnothavea catalogueormarketpriceofaproductsoleinsubstantialquantitiestothe t generalpublicasrequiredbyparagraph10.aoftheCircular. L .U${XX  84  ڀ  __{{"Bidresponsivenessinvolvesthequestionofwhetherthebidassubmitted,representsanunequivocaloffertodo  exactlywhatthegovernmenthasspecified,sothatacceptanceofthebidwillbindthecontractortomeetthe t government'srequirementsinallmaterialaspects."_ Hankins_ ԀLumberCo.,Comp.Gen.B-248101,92-2CPD;50#{{t#.x9 Z&Times New Roman .U${XX  85  ڀ  __{{FAR14.301(a).#{{t#x9 Z&Times New Roman  .U${XX  86  ڀ  __ {{_FAR14.404-2.__#{ {t#_x9 Z&Times New Roman & .U${XX  87  ڀ  __ {{NorthwesternMotorCo.,Comp.Gen.B-244334,91-2_CPD_Ԁ_ 249.#{ {w#x9 Z&Times New Roman $ .U${XX  88  ڀ  __{{RecordPress,Inc.,Comp.Gen.B-229570.2,88-1_CPD_Ԁ_ 161.#{{w#x9 Z&Times New Roman  .U${XX  89  ڀ  __{{49_CFR_Ԁ661.13(b)provides: Thegranteeshallincludeinitsbidspecificationforprocurementwithinthescope  oftheseregulationsanappropriatenoticeoftheBuyAmericaprovision.Suchspecificationsshallrequire,asa v conditionofresponsiveness,thatthebidderor_offeror_ԀsubmitwiththebidacompletedBuyAmericacertificatein : accordancewith661.6or661.12ofthispart,asappropriate.(emphasisadded)#{{t#x9 Z&Times New Roman I .U${XX  90  ڀ  __{{TheComptrollerGeneral,inStaples-Hutchinson&Associates,Inc.,Comp.Gen.B-245007,91-2_CPD_Ԁ491  stated: Whereasbidresponsivenessconcernswhetherthebiditselfasofthetimeofbidopeningunequivocallyoffers t toperforminaccordancewithallmaterialtermsandconditionsofthesolicitation,responsibilityreferstoabidder's : abilitytoperformthecontractrequirementsandisdeterminednotatbidopeningbutatanytimepriortoaward N basedoninformationreceivedbytheagencyuptothat_ time.#{{t#x9 Z&Times New Roman  .U${XX  91  ڀ  __{{EDTConstruction,Inc.,etal.,Comp.Gen.B-240343,91-1_CPD_Ԁ374.#{{w#x9 Z&Times New Roman y .U${XX  92  ڀ  _ {{Althoughunusual,itispossiblethatbeforethetimeanddatesetforreceiptofbids,abiddermaydiscovera  mistakeinabidithasalreadysubmittedtoyou.Ifyouhaveincludedaclauseinthesolicitation(oradopteda t policy)assuggestedinourearlierdiscussionon"ReceiptofOffers"(seeSection4.3.3.1)andtheproblemswithlate 8 submissions,modificationsandwithdrawalsofoffers,theyshouldbefollowed.Essentially,thebidderisadvised L thatmodificationofitsbidwouldbetreatedthesameastheoriginalbid--mustbereceivedtimelyandshould  clearlyidentifythebiditismodifying.#{ {d#x9 Z&Times New Roman .U${XX  93  ڀ  _${{SeeFAR14.406 .#{${g# x9 Z&Times New Roman  .U${XX  94  ڀ  __Ԁ({{SeeR3-202.13(MistakesinBid),RecommendedRegulationsapprovedAugust2,1980,implementingThe  ModelProcurementCodeforStateandLocalGovernments,approvedbytheAmericanBarAssociationonFebruary t 13,1979(hereinafterreferredtoastheRecommendedRegulations).#{({u#x9 Z&Times New Roman __*XcXXX .U*{X*Xc  95  ڀ  Forinstance,AmendmentNumber1tothesolicitationchangedthequantitiesforlineitem4ontheSchedule  from5to12.ThebidincludedaSchedulethatshowedthequantityforlineitem4tobe12.Nootheramendments t wereissuedandthebidderdidnotformallyacknowledgeAmendmentNo.1.Therewasnowayitcouldhaveused 8 thecorrectSchedulepageunlessithadreceivedtheAmendment--clearfromthebidthatitreceivedAmendment L No._1.#{*{ #_x9 Z&Times New Roman , .U${XX  96  ڀ  __/{{SeediscussionatSection4.3.3.2,"FederallyRequiredSubmissionswith_Offers."#{/{w#_x9 Z&Times New Roman  .U${XX  97  ڀ  _TheRecommendedRegulationstotheModelProcurementCode[atRS202.13.4(b)]referstothistypeof  mistakeas mistakeswhereintendedcorrectbidisevident.Themistakeandtheintendedbidareclearlyevidenton t thefaceofthebiddocument. p .U${XX  98  ڀ  _5{{TheRecommendedRegulationstotheModelProcurementCode[atR3-202.13.4(c)]referstothistypeof  mistakeas"mistakeswhereintendedcorrectbidisnotevident."#{5{d#\  `&Times New Roman + .U${XX  99  ڀ  ___You_Ԁshouldconsiderallthe_longrun_Ԁcostofforcingthebiddertoperform_unwillingly._  .U${XX  100  ڀ  _;{{Foranextendedtreatmentofthistopic(andalsoasthesourceformostpoliciesoftransitpropertiesonthe  matter),itisrecommendedthatyoureviewFAR14.406-4andtheRecommendedRegulationsatR3-202.13.5.#{;{e#\  `&Times New Roman ? .U${XX  101  ڀ  _@{{SeeFAR14.406-4(e)forrecommendedprocedurestofollowintheeventthistypeofmistakehasbeen  allegedordisclosed.#{@{h#\  `&Times New Roman .U${XX  102  ڀ  _C{{ThisisthepositiontakenintheRecommendedRegulationsatR3-202.13.5.#{C{e#\  `&Times New Roman .U${XX  103  ڀ  _G{{SeeFAR14.604-4(a)and(b).#{G{h#\  `&Times New Roman  .U${XX  104  ڀ  __J{{FAR__Ԁ_52.214-15.#{J{u#_x9 Z&Times New Roman  .U${XX  105  ڀ  __N{{ԀW.A.Scottv.UnitedStates,44_C.Cl_.524,527(1909).#{N{u#x9 Z&Times New Roman  .U${XX  106  ڀ  __Q{{See,e.g.,Section2.205oftheTexasBusinessandCommerceCodewhichprovides:2.205.FirmOffers.An  offerbyamerchanttobuyorsellgoodsinasignedwritingwhichbyitstermsgivesassurancethatitwillbeheld t openisnotrevocable,forlackofconsideration,duringthetimestatedorifnotimeisstatedforareasonabletime, 8 butinnoeventmaysuchperiodof_ irrevocability_ Ԁexceedthreemonths;butanysuchtermofassuranceonaform L suppliedbythe_ offeree_ Ԁmustbeseparatelysignedbythe_ offeror_ .#{Q{x#x9 Z&Times New Roman Y .U${XX  107  ڀ  __U{{ԀNation-WideReportingandConventionCoverage,_GSBCA_ԀNo.8309,88-2_BCA_Ԁ20,521at103,741.#{U{u#x9 Z&Times New Roman .U${XX  108  ڀ  _FTACircular4220.1E_9.d.(1)._ .U${XX  109  ڀ  _FTACircular4220.1E_9.d.(1)._ .U${XX  110  ڀ  _FTACircular4220.1E_9.d.(2)._ .U${XX  111  ڀ  _FTACircular4220.1E_7.h._ .U${XX  112  ڀ  _FTACircular4220.1E_9.d.(4)._ .U${XX  113  ڀ  _FTACircular4220.1E9.e.  .U${XX  114  ڀ  _Subparagraph(5),likeparagraph6.g.,recognizestheconceptofbestvalue.Onceagain,FTAdoesnotwish  todictateanyparticularfactorsoranalyticprocess.Solicitationsmust,ofcourse,tellpotentialcompetitorsforthe t contractwhatthebasisforawardwillbe. .U${XX  115  ڀ  _FTACircular4220.1E9.e. " .U${XX  116  ڀ  _Thisnewdefinitionwasintendedtorecognizetheconceptofbestvalue.Thelanguageisintendedneitherto  limitnordictatequalitativemeasuresgranteesmayemploy. .U${XX  117  ڀ  _FederalRegisterVol.62,No.189,Sept.30,1997. .U${XX  118  ڀ  _FARPart15wasreissuedbyFederalAcquisitionCircular(_FAC_)97-02datedOctober10,1997. 8 .U${XX  119  ڀ  _TheFARnowseeslowestpricetechnicallyacceptableproposalselectionasoneendofthebestvalue  spectrum,butwehavedistinguisheditfrombestvalueforclarityofdiscussionpurposes. .U${XX  120  ڀ  _ԀFARSubpart15.101!BestValueContinuum. .U${XX  121  ڀ  _ԀSeeSection6.5!Architect-EngineeringServices. o !  _ @  @ <( 4 <DLX<% @ {XX  %    122  ڀNewYorkCityTransit!formoreinformationcallMr.WilliamDeSantisat7186944339. @ tW .U${XX  123  ڀ  _~{{FTACircular4220.1E9.d.(3).#{~{e#x9 Z&Times New Roman .U${XX  124  ڀ  _{{ԀSeediscussioninSection4.5.4,"DiscussionsandClarifications."#{{e#x9 Z&Times New Roman .U${XX  125  ڀ  _{{SeediscussioninSection4.5.3,"CompetitiveRange."#{{e#x9 Z&Times New Roman  .U${XX  126  ڀ  _{{Multipleroundsofbestandfinalstendtocreatesuspicioninthemindsof_offerors_Ԁaboutwhatthemotiveisfor  thesubsequentrequests,particularlyifdoesnotappearthatnegotiationsarebeingreopenedforadiscussionof t substantivematters.Thepreparationofproposalscanbeaverytime-consumingandexpensiveprocessanditis 8 possiblethat,foroneoftheseorsomeotherreason,an_offeror_Ԁmaydecidenottosubmitaresponsetoa3rdor4th L requestforabestandfinaloffer.Also,ifyoumakeapracticeofmultiple_BAFOs_,youmaynotreceive"best"offers  inthefirstroundduringfuture_procurements_.#{{e#x9 Z&Times New Roman .U${XX  127  ڀ  _FTACircular4220.1E7.h. .U${XX  128  ڀ  _FTACircular4220.1E9.d.(4).fn44 m .U${XX  129  ڀ  _{{Averysignificantcaveatmustbeissuedatthistime.Ifyourgoverningbody(citycouncil,county  commissioners,boardofdirectors,etc.)hasreserveduntoitselfthesoleauthoritytorejectbidsforwhateverreason, t you,astheprocurementofficial,havenoauthoritytomakethatfinaldeterminationandnotifythebidderuntilyour 8 governingbodyhasconcurredwithyourrecommendation.#{{e#Դ5TABLE ADx9 Z&Times New Roman .U${XX  130  ڀ  _See4.5.2, EvaluationofProposals. N .U${XX  131  ڀ  _{{See,e.g.,FTACircular4220.1E8.a.:"Allprocurementtransactionswillbeconductedinamanner  providingfullandopencompetition."#{{h#x9 Z&Times New RomanTABLE O .U${XX  132  ڀ  _{{SeediscussionofsmallpurchaseproceduresinSection4.2,"SmallPurchases."#{{e#x9 Z&Times New Roman .U${XX  133  ڀ  _{{SeediscussionofsealedbiddingproceduresinSections4.3and4.4.#{{h#x9 Z&Times New Roman .U${XX  134  ڀ  _{{SeediscussionofcompetitiveproposalsinSections4.3and4.5.#{{e#x9 Z&Times New Roman  .U${XX  135  ڀ  _{{SeediscussionofthesubmissionofcostandpricingdatainSection5.2,"CostandPriceAnalysis."#{{h#x9 Z&Times New Roman  .U${XX  136  ڀ  _Ԁ{{SeediscussionofnegotiationsundercompetitiveproposalmethodatSection4.5.2,"EvaluationofProposals."#{{i#x9 Z&Times New RomanLevel 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5fn6 TABLE AA2P+M 0_level1  , 8.4 <DL!823  ..  5+ 4 <DL!5  .UX ,Style    2( <DL!2   5+ 4 <DL!5  <$$ :Footnote Tex    XXX(+&H4   S =jS   =jS########(359=AEIMQ1 \  `&Times New Romana4_5_1(\ Y`Symbola4_5_2TABLE G !  _XcXXXњ    XChapter4   % K %K  554MethodsofSolicitationandSelection    4.0Overview(5/96)     4.1MicroPurchases(6/03)      ` 4.1.1PurchaseCardsBART(6/98)  t    ` 4.1.2ConsolidationofMicroPurchases(11/03) `   4.2SmallPurchases(5/96) W8    4.3CompetitiveProcurementMethods(5/96) C$     ` 4.3.1OverviewSealedBidsv.CompetitiveProposals(5/96)      ` 4.3.2CommonElementsofSolicitationProcess(5/96)        `  4.3.2.1AdvertisingandPublicizingSolicitation(5/96)     `  4.3.2.2SolicitationMailingList(5/96)     `  4.3.2.3Solicitation(5/96)     `  4.3.2.4PreBidandPreProposalConferences(11/03)     `  4.3.2.5AmendmentofSolicitations(5/96) p    ` 4.3.3CommonElementsofOffers(5/96) gH    `  4.3.3.1ReceiptofOffers(5/96) ?     `  4.3.3.2FederallyRequiredSubmissionswithOffers(5/96) +  *,XXXX*   `    4.3.3.2.10  CertificationRegardingDebarment,Suspension,and   OtherResponsibilityMatters(5/96) (#(#    `    4.3.3.2.2BuyAmericaCertification(11/03) !    `    4.3.3.2.3LobbyingCertification(5/96) "  DWXYZ(}s3    `  4.3.3.3OtherSubmissions(5/96) p  $      `    4.3.3.3.1AcknowledgmentofSolicitationAddenda(5/96) w&X"    `    4.3.3.3.2BidGuarantee(5/96) c'D #   4.4SealedBids(InvitationforBids)(5/96) ;)"%    ` 4.4.0Overview(5/96) +#'    ` 4.4.1Solicitation(5/96) +$(    ` 4.4.2BidOpening(5/96) ,%)    ` 4.4.3SingleBid(3/04) -&*    ` 4.4.4ResponsiveBidder(5/96) .'+    ` 4.4.5BidMistakes(5/96)     ` 4.4.6BidWithdrawal(5/96)     4.5CompetitiveProposals(RequestforProposals)(5/96)      ` 4.5.1Solicitation&ReceiptofProposals(5/96)      ` 4.5.2EvaluationofProposals(11/03)      ` 4.5.3CompetitiveRange(5/96)  t    ` 4.5.4DiscussionsandClarifications(5/96) `    ` 4.5.5AdditionalSubmissions(5/96) kL     `  4.5.5.1RequestforRevisedProposals(5/96) C$     `  4.5.5.2RequestforBestandFinalOffer(5/96) /     ` 4.5.6AwardBasedonInitialProposals(5/96)      ` 4.5.7WithdrawalofProposals(5/96)      ` 4.5.8DebriefingUnsuccessful_Offerors_(5/96)    4.6NonCompetitive(SoleSource)Proposals(5/96)     ` 4.6.1JustificationforUse(5/96) p    ` 4.6.2NegotiationofContract(5/96) {\    ` 4.6.3AssociatedCapitalMaintenanceItem(5/96) gH    ` 4.6.4UnsolicitedProposals(9/05) S4   4.7SpecialProcurementMethods(5/96) +     ` 4.7.1MultiStep_Procurements_(5/96)      ` 4.7.2GovernmentalPricesandContracts(5/96)   9,XX[IX,XXX9   `  4.7.2.10 [ _Procurements_ԀfromGeneralServicesAdministration"[(#[(#    `   [ Schedules(5/96) #    `  4.7.2.2StateandLocalSchedules(6/03) $     `  4.7.2.3StateversusFTARequirements(5/96) %l!    ` 4.7.3 ECommerce:ReverseAuctions(6/03) c'D #   ;)"% _  %  %4.0OVERVIEW  *g "dd Xdd Xdd X(#(#,xdd +  ( (REQUIREMENT +![ < + ThemethodsofsolicitationandselectionallowedwithintheFederalcontractualsphere /  1      4# O  5  6O  7 Ԁare   listedin9ofFTACircular4220.1E.Youmaychoose:   E" rlX|X,XX[IXE0 r L  L"0lr"r"  micropurchasesonlyforcontractamountslessthan$2,500;L#݌ l"l" Ќ  0 r L  L"0lr"r"  smallpurchaseproceduresonlyforcontractamountslessthanthesimplified wX  acquisitionthreshold(currently$100,000);L݌cD l"l" Ќ  0 r L  L"0lr"r"  sealedbidswhereL-݌; l"l" Ќ  0 r 0lr"r"-0 l"l"youhaveacomplete,adequate,andrealisticspecificationorpurchase   description,  " " 0 r 0lr"r"-0 l"l"twoormoreresponsiblebiddersarewillingandabletocompete, " " 0 r 0lr"r"-0 l"l"theprocurementlendsitselftoafirmfixedpricecontractandtheselectioncan  bemadeprimarilyonthebasisofprice,and| " " 0 r 0lr"r"-0 l"l"nodiscussionwithbiddersisneededafterreceiptofoffers;sT " " 0 r L  L!"0lr"r"  competitiveproposals;orL!!݌K,l"l" Ќ  0 r L  LV""0lr"r"  noncompetitiveproposals(solesource)procurementonlyifyoucanjustifynot # solicitingadditionalcompetitioninthemannerexplicitlydefinedinFTACircular   4420.1E9.h.LV"q"݌ l"l" Ќ  I,XX[IX rlX|XIStatelawusuallyrestrictsthemethodofprocurementmoretightlythantheseFederal " requirements. "#  "DEFINITION %   Solicitation-Apurchasingentity'srequestforoffers,includingatelephonerequestforprice ' " quotations,aninvitationforbids,orarequestforproposals. (l!# Offer-Apromisetoprovidegoodsorservicesaccordingtospecifiedtermsandconditionsin c*D#% exchangeformaterialcompensation. O+0$&  ;,%' Acceptance-Agreementtothetermsofanoffer.Inmostjurisdictions,"award"byapublic  agencycanconstituteacceptance,andmaycreateanenforceablecontract.    DISCUSSION   Basedonyourprocurementplansandthespecificationdevelopedwithyourcustomer,you   willgenerallyinitiatetheprocurementbysolicitingoffers.Dependingontherequirements   ofthemethodofprocurementyouchoose,youmaysolicitoffersinatelephonecallorin  t manyotherformsranginguptomulti-volumerequestsforproposals.Whenyoureceive ` offers(whetherquotations,bids,orproposals),youmayacceptone,rejectthemall,or kL  (unlessyouareusingthesealedbiddingmethod)requestadditionaloffers.Regardlessof W8  theprocurementmethod,whenyouacceptanoffer,youcreateabindingcontract C$  accordingtothetermsoftheoffer. /  BestPractices    Whenyouandyourcustomerhavespecifiedtherequirement,youwillgenerallysolicitoffers  fromsuppliers.Thesolicitationrangesfromatelephonecalltomakeareasonableprice  determination(inthecaseofamicro-purchase),toalengthyrequestforproposalsinthecaseofa  competitiveproposal.Thetermsinyoursolicitationofoffersaresubstantiallydeterminedbythe  methodofselectionyouwilluse.Becauseyourcontractwillultimatelybebasedonthetermsof p theoffers,theselectionofamethodofprocurementandthetermsinyoursolicitationofoffers {\ areimportantandyouwillhavethemostsuccessiftheyarebasedonwell-testedpracticesand gH documents. S4 Thesolicitationofoffersplacesyouinthepositionofcontrollingthecompetitiveprocess.You, +  ratherthanthesupplier,decidewhethertoacceptorrejecttheoffers.Atechnicalexceptionto  thiscompetitivemodeloccursinsome_ micropurchases_ Ԁandsmallpurchaseswhen,basedon   cataloguesorothersupplierinformation,youissueapurchaseorder(orsimilardocument)   withoutreceivingadirectoffer.Inthiscaseyouaretechnicallymakingtheoffer,andthe ! supplierisinapositiontoaccept(usuallybyperforming)orreject(usuallybynoticetoyou). " Asolicitationdoesnotbindyouragencytopurchasethegoodsorservicessolicited,althoughit $  maycreateanimpliedcontractoffairdealingwithyoursuppliers. /  2      4. O  5  62O%2  7S2ԀAlthoughyouwillwantto %l! treatsuppliersaspartnersandwithrespectforthepurposesoflongruncompetitionand w&X" cost-effectivebusinessrelations,manyagenciesmakeclearintheirsolicitationsthattheyreserve c'D # therighttorejectalloffers,i.e.,thattheyaremerelysolicitingoffersandthatthesolicitation O(0!$ doesnotcreateanyrightsinsuppliers.Thepricequotations,bids,orproposalssubmittedby ;)"% suppliersshouldbefirmofferstoyouragencytosupplythegoodsorservicesuponthematerial '*#& termsinyoursolicitation. +#'  +$( Insealedbidding,thereisgenerallynofurthermodificationofmaterialterms:youragencyeither  acceptsoneoftheoffersorrejectsallbids.Intheotherprocurementmethods,youmayrequest   orreceiveadditionaloffersbeforeyouacceptone.  AlthoughFTACircular4220.1Eprovidesyoubroadchoiceanddiscretion,statelawsandlocal   policyoftenrequirethatyouusesealedbidsincertain_ procurements_ Ԁandthatyouuse   competitiveproposalsinothers.Basedonstatelawandyourownpractice,youmayfindthe   methodofprocurementislargelydeterminedbythetypeofservicesorgoodsyouareprocuring. /  3      4/&#O  5  68O8  7&#9Ԁ  t Iftheprocurementistoolargeformicro-purchaseorsmallpurchaseprocedures,youwill ` generallyinvitesealedbidsforselectionprimarilybasedonprice,orrequestproposalswhich kL  willbeevaluatedaccordingtoadditionalcriteriabeforeaselectionismade.Undercertain W8  restrictedcircumstances,youmaysolicitanon-competitiveproposalfromasolesource. C$  PurchasesundercontractswithsisterstatesorlocalagenciesmayalsomeettheFederal /  requirements.T /  4      40b O  5  6$<O8<  7b f<   Ifthelegalandpolicyrequirementsleaveyouwithmorethanoneavailableprocurementmethod,   yourchoiceamongthesemethodswilldependlargelyon:  L  L="0    thetimeandexpenserequiredofyouandyoursuppliersfortherespectivemethods,andL==݌(#(# Ќ  L  L>"0    thelikelihoodofgettingthebestbuyforyourcustomers.L>>݌(#(# Ќ  Whenyouacceptanoffer,youestablishacontract. {\   % 1 4.1MICRO-PURCHASES%1? S4 *l dxdd xg "(#(#l,xdd +  + +  REQUIREMENT  p  9.aofFTACircular4220.1Eauthorizestheuseofmicro-purchasesasamethodof   procurement,whenappropriate.Ifused,thefollowingapply:    (#17sDWXYZ2 #1  1  .3  0 l Micro-purchasesaredefinedasthosepurchasesunder$2,500."l"l" 2 #1  2  .3  0 l Micro-purchasesmaybemadewithoutobtainingcompetitivequotationsifthegrantee $  determinesthatthepricetobepaidisfairandreasonable.%x!l"l" 2 #1  3  .3  0 l Micro-purchasesareexemptfromtheBuyAmericarequirements. /  5      #o'P #l"l"  # (l!# _ *l ddxdd x (#(#l,xdd +   2 #1  4  .3  0 l Micro-purchasesshouldbeequitablydistributedamongqualifiedsuppliersinthelocal d areaandpurchasesshouldnotbesplittoavoidtherequirementsforcompetitionabove oP the$2,500micro-purchasethreshold.[ <l"l" 2 #1  5  .3  0 l TherequirementsoftheDavis-BaconActapplytoconstructioncontractsbetween 3  $2,000and$2,500.4n O  5  6GOG   7n G" /  6       l"l" 2 #1  6  .3  0 l OtherthantheDavisBaconActclausesforconstructioncontractsbetween$2,000and   $2,500,nootherFederalclausesarerequired.  l"l"  2 #1  7  .3  0 l Minimaldocumentationisrequired:(a)adeterminationthatthepriceisfairand   reasonableand(b)howthisdeterminationwasderived. # l"l" #DEFINITION     Micro-purchasing-Amethodofprocuringgoodsandservicesunder$2,500.Amicropurchase h doesnotrequireobtainingcompetitivequotationsifyoudeterminethatthepricetobepaidisfair sT andreasonable. _@  DISCUSSION 7  Ifpermittedbystateandlocalrequirements,purchasesunder$2,500nolongerrequire  morethanonepricetosatisfyFederalrequirements,aslongasyoudeterminethatthe  pricepaidisfairandreasonable.Youcanincludea"fairandreasonableprice"  determinationinyourformsusedformicro-purchases.Rotatingthroughalistofthe  suppliersisonemethodtoequitablydistributethemicro-purchasesamongqualified  suppliers.  BestPractices !d  Athresholdquestionyoumustgetananswertoiswhetherornotyourstatelawallowsyouto [#< implementamicro-purchasemethodofprocurementthatdoesnotrequire"fullandopen G$( competition."Ifyouhavethelegalauthorityunderyourstatelawtoimplementamicro-purchase 3%  program,youmustcomplywiththeproceduralrequirementsstatedasitems1,2,4,&5under &! theRequirementsportionofthissection.Onceyouaresatisfiedthatyoucanlegallyhavea   '" micro-purchaseprogramunderyourstate'slaws,youneedtodevelopaprocedureorregulation  thataddressestheFTArequirementsandprovidespracticalguidancetoyourorganization     LimitsandProcedures- Howwillyouguidetheuseofmicro-purchaseprocedures? In   accordancewiththegeneralrequirementtohaveprocurementproceduresandacontract   administrationsystem(includingwrittenselectionprocedures),( /  7      45O  5  6lSOS   7reSԀlargeragenciesoftenmaintain   formalwrittenproceduresthataddressthecircumstancesunderwhichmicro-purchaseprocedures   shouldbeused.Althoughthesecircumstancesshallnotincludepurchasesgreaterthan$2,500,  x youmaywishtosetyourlimitlowerdependingonstatelawandyourownexperiencewiththe d cost-effectivenessofpricecompetitionusingsmallpurchaseprocedures.Ifyoucanefficiently oP  ascertainthelowestcostsupplier,youmaynotalwayswishtousemicro-purchaseprocedures. [<  Thismethodofprocurementisintendedtobeusedascreativelyaspossibleandtominimizethe 3  paperworkthatisinherentinotherprocurementpractices.Inestablishingpoliciesrelatingto   micro-purchasesatthegranteelevel,youmustalwaysbemindfulofthe"equitablydistribute"    requirementandtheprohibitionagainstsplittingprocurements.0T /  8      46reO  5  6xXOX   7reXԀThelatterrequirementisone   youalreadydealwithatalllevelsofyourprocurementprocesses.However,asignificant  requirementistomeetthedocumentationrequirementoftheFTA--adeterminationthatthe  priceisfairandreasonableandhowthisdeterminationwasderived.    EquitableDistribution- Howwillyouequitablydistributeyourpurchasesamonglocal t suppliers? Doyouhaveanautomatedpurchasingandmaterialsmanagementsysteminplace d thatallowsyoutotrackpurchasesbylineitemandvendortheitemwaspurchasedfrom?Ifso, sT andifyouhavemultiplevendorsforthatitemorservice,youcanalternateamongthosevendors. _@ Doyouhaveblanketpurchaseagreementsinplacewithmultiplevendorsformultipleproducts K, whichwereestablishedasacompetitiveprocess?Ifso,micro-purchasescouldbemadefrom 7 thosevendors,againonarotatingbasis.Itisagoodpracticetokeeprecordsondollaramounts # awardedduringtheyeartoassistinmonitoringdistribution.     BidSplitting- Howwillyoumonitorprocurementssothatrequirementsarenotbeingsplit ! toavoidanotherprocurementmethod? Youmayhaveasysteminplacenowthatallowsyou " tomonitoranytendencytosplitrequirementsoveryoursmallpurchasemaximumintosmall # purchases.Micro-purchasingwouldbeanadditionalmethodofprocurementaddressedinyour $  proceduresandtrainingwithinyouragency.Ifyouhaveanautomatedsystemwhichrecords %! individualprocurements,thatsystemmayhavetobereviewedperiodicallytoanalyzethe  &l" procurementpatternsforaparticularproductorservice.Manytimes,yousimplyrelyonyour  buyerorcontractingofficertomonitornotonlybidsplittingbutalsoequitabledistribution.     FairandReasonableDetermination- Howdoyoudocumentyourdeterminationthatthe   priceisfairandreasonableandthebasisforthatdetermination? Youmaywanttoprepare   some"boilerplate"determinationsforsignaturethataddressspecificwaysyoubuyproductsor   services.YoumaywanttosaythatbaseduponatelephonequotefromJohnDoeCompanyfor   thewidgetandcomparingthatpricewithapricepaid6monthsagoforthesamewidget,itisfair  | andreasonable--youwouldfillintheblanksinyourform,signit,andfileintheprocurement h file.Alternatively,youmayuseanexistingformsuchasabuyer'stabulationthatisfiled.You sT  maywanttohaveanotherformthatindicatestheprocurementisbeingmadefromanexisting _@  BlanketPurchaseAgreementforwhichcompetitionwasobtained.Youmaywanttopreparea K,  formthataddressessalesitems--youarebuyingthiswidgetfromXCompanybaseduponan 7  advertisementthatthewidgetnormallysellsfor$35eachandisonsalefor$29.50andthisisfair #  andreasonable.Finally,youmaywanttohaveaformthatsimplyaddressesastandard   commercialitem--thepriceisfairandreasonablebecauseitisastandardcommercialitemsold   intheopenmarketplace.D /  9      47re O  5  6gOh #  7re 3h  InimplementingthisrequirementattheFederallevel,theregulationsrecognizethepaperwork  costofverifyingthereasonablenessofpricemaymorethanoffsetthepotentialsavings.The  priceisalsoessentiallyassumedtobereasonableunlessthecontractingofficersuspectsorhas x informationtoindicatethatthepricemaynotbereasonable(higherthanrecentpricepaidorhas d personalknowledgeofpriceforthesupplyorservice),orasupplyorserviceisbeingpurchased oP forwhichthereisnotcomparablepricinginformationreadilyavailable.M /  10      48reO  5  6kOk #  7rek [< OtherFederalPrecedent-Inresponsetorequestsfromitsownfieldofficesformoreguidance, 3 theFederalGovernmentrecentlyreviseditsregulationsdealingwithdirectFederal  micropurchases.Rl /  11      ׀Becausethesechangesgivemoreflexibilitytoprocuringagencies,youmight   wanttoreviewtheseprovisionsasyouconsiderpoliciesandguidanceforyouragency's   micropurchases.49re O  5  6{nOn #  7re nԀAmongthechangeswere: !  DWXYZ(}s7L  0  Lo"0` (#(#  theGovernment-widecommercialpurchasecardisthepreferredmeans(butnot # theonlymeans)topurchaseandpayformicro-purchases;W /  12      4:re O  5  6 qO4q #  7re bqLoo݌$ ` (#` (# Ќ  0  _ %t!(#(# L  0  LAr"0` (#(#  agenciesareencouragedtodelegatemicro-purchaseauthoritytoemployeesofthe  agencywhowillactuallybeusingthesuppliesorservicesbeingpurchased;] /  13      4;re!O  5  6sOs #  7re!sLArhr݌ ` (#` (# Ќ  0   (#(# L  0  Lt"0` (#(#  contractclausesarenotrequiredfor_ micropurchases_ ;andLtt݌ ` (#` (# Ќ  0   (#(# L  0  Lu"0` (#(#  documentationtosupportmicro-purchasesistobeminimized.d /  14      4<O  5  6vOv #  7wLuu݌ ` (#` (# Ќ  ArecentreportbytheGeneralAccountingOfficej /  15      4=O  5  64xOHx #  7vxԀthataddressesuseofcreditcardsbyFederal  t agenciesisexpectedtoresultinmorerelaxedguidancebeingissuedbytheFederalagenciesand ` increasedusageofthecreditcard.Thereportdiscussesthesavingsintimeandmoneythatan kL  agencycanrealizebyutilizingcreditcardsformicro-purchasesandthefactthattherehasbeen W8  noapparentincreaseinprocurementfraudthroughtheutilizationofthesecards. C$  Thereisnoabsoluteguidancethatcanbegiveninthisareaastowhatworksbestorevenwell.   Theauthoritytousemicro-purchasesisintendedtoprovideaveryflexibleprocurementmethod   whichwillallowyoutobuylow-priceditemsinacost-efficientmanner.    4.1.1PurchaseCards    DISCUSSION    Thissectiondealswiththeuseofpurchasecardsformicropurchases,whicharethoseof {\ $2,500orless.Sincemicropurchasesareexemptfromtherequirementsofpublicizingand gH obtainingcompetitivequotes,theyarewellsuitedtobeingdelegatedbytheprocurement S4 departmenttotheendusersofthesuppliesorservices.Andsincepurchasecardshave ?  proventohavecertainadvantagesinmaking_ micropurchases_ ,thedelegationofauthority +  tousepurchasecardswillbethefocusofthissection.  Apurchasecardworkslikeapersonalcreditcard,suchasVISAorMasterCard.Purchase   cardsofferanumberoftangibleadvantagesoverthetraditionalpurchasingmethodsof ! issuingindividualpurchaseordersorblanketpurchaseorders,buttheyalsopresentnew " challenges,especiallyintheareaofinternalcontrolsandtheequitabledistributionofthe # agency'sbusinesstovariousvendors,includingDisadvantagesBusinessEnterprises $  (_ DBE_ 's). %l! _   c'D # BestPractices   TheSanFranciscoBayAreaRapidTransitDistrict(BART) institutedapilot program for  purchasecardsonJuly1,1996.TheresultsoftheBARTprogramhavegenerallybeenvery   positive.TheBARTexperiencehasdemonstratedanumberofimportantlessonswhichother   granteesshouldbeawareof,andthesearediscussedbelow.Thedetailedproceduresadoptedby   BARTforimplementingitspurchasecardsystemareincludedinAppendixB.13,BART   PurchaseCardSystem.  x DelegationofAuthority Allpurchasecardsshouldbecentrallycontrolledoutofthe oP  ProcurementDepartment . TheProcurementDepartmentmustberesponsiblefortrainingthose _@  individualswhoaretobegivenauthoritytousethepurchasecards.Inordertomaximizethe O0  benefitsof_ micropurchasing_ Ԁwithpurchasecards,thepersonsauthorizedtousethecardshouldbe ;  thosewhosedepartmentwillbeusingthesuppliesorservicesbeingpurchased.Thedelegation '  ofauthoritytoendusersshouldinvolvetheappointmentinwritingoftheseendusersas   "contractingofficers"(orsuchothertitleasthegranteemayusetodescribethosehaving   authoritytoawardcontracts).SuchanappointmentprocedurehasbeenadoptedbyBART,and  isalsofollowedbyFederalagencies(SeeFAR1.6033,Appointment).Allpurchasecard  activitywouldfunction,therefore,as_ redelegated_ Ԁprocurementauthorityrequiringavalid  warrant,trainingandperiodicreviewbytheProcurementDepartment.Cardholderswouldbe  subjecttothesameStandardsofConductasotherprocurementpersonnel(See_ BPPM_ Ԁ | 2.4.2.2.2,WrittenStandardsofConduct).Theywouldalsobesubjecttotheprocurement h policiesissuedbytheProcurementDepartment.Thegrantee'swrittenprocurementprocedures sT mustbeexpandedtogivespecificguidanceforpurchasecardactivity,includingtheinternal _@ controlsandthebestbusinesspracticesforuserstofollow. K, AdvantagesofthePurchaseCard󀄀BARThasidentifiedanumberofadvantagesinusingthe # purchasecard.Theseinclude:   ! ! &DWXYZ(ysDWXYZ"3"  E" ,X,` [IX,XX[IXE  3ڌ23  0    Vendorsarenowgettingpaidmuchmorequickly;i.e.,within12days.3ڌX݌!(#(# Ќ  ! ! &DWXYZ(yy&DWXYZ"3"  0  3ʎ23  0(#(#  Vendorsarerespondingrapidlytotheagency'sorders;i.e.,within2030minutesofan # order.3ʎ݌$ (#(# Ќ  0   (#(# ! ! &DWXYZ(yy&DWXYZ"3"  0  3ː23  0(#(#  Ifavendordoesnothavetheneededpart,theenduser"shops"thestreetuntiltheycan &d" findanothervendorwhohasthepart,insteadoforderingthepartfromtheinitialvendor o'P # whowouldhaveto"buy"thepartandpassitthroughtheblanketpurchaseorderwithan [(2O3  0    Ifyouradvertisingvolumeissignificantandyourmediamarketcomplex,youmayfind #  thatanagencycancosteffectivelynegotiatemediaavailability.3;>t>݌$!(#(# Ќ  "3"    3?2O3  0    OneofthemosteffectivewaystoincreaseDBEparticipationinyourprocurement y&Z# processesistoadvertiseinmediareadbythattargetcommunity.YourDBEprogram e'F $ mayrequireyoutoadvertiseintarget-specificnewspaperstoenhanceparticipationby Q(2!% thoseentities.Youragency'sprogrammaybelargeenoughtodistributearegular =)"& publicationtoallvendorscertifiedunderyourprogramortomembershiplistsofsuch )* #' organizationsasminoritychambersofcommerce.Whateverisbeingdonebyyour +#( agencyintermsofadvertisingtheprogram,youcantakeadvantageofthatopportunity ,$) andadvertiseup-comingprocurementsaswell.Becauseoftimerequirementsinadvance ,%* 3??݌ -&+(#(# Ќ  0  0(#(#oftheactualpublication,youmaynotbeabletogiveallofthedetailaboutaspecific  procurement,butyoustillcanputthecommunityongeneralnoticeabouttheopportunity. (#(# "3"    3D2O3  0    Doestheconstructionindustryinyourcommunity(AGC,ASA,etc.)advertisetoits   membershipnoticesofup-comingprocurementsinthepublicsector?Ifso,trytoget   yournoticespublishedthereaswell.Frequentlythereisnochargeforthisservice.3DD݌ (#(# Ќ  Wehaveidentifiedinthe"Requirements"discussionabove,theonlyFTArequirementsthatexist  t intermsofpublicizingnoticesaboutup-comingprocurements.Eventhoughthereareno ` detaileddiscussionorsetofguidelinesotherthanthesegeneralstatements. /  28      4` O  5  6(HOH O  5  6.OBxibi  7H porL&݌ t4(#4(# Ќ  L    L"0 4   FailuretosubmitBuyAmericaCertification. L>݌kL 4(#4(# Ќ  Responsivenessisafairlyobjectiveconceptandisascertainableatthetimeofbidopening._  2 /  87      _ 4?!O  5  6Oxibi  7! C$  Further,thebidder'sintenttobeboundbythe_ IFBs_ Ԁrequirementscannormallybedetermined /  fromthebiditself._  /  88      _ ԀA4@ O  5  6Oxibi  7 Ԁ"secondbiteattheapple"isaphrasecommonlyheardindiscussions   pertainingtothepreceptthatresponsivenessbedeterminedatthebidopeningsolelyfromthebid   documentsandwithoutexplanation.Youwillnotwantanapparentlylowbiddertore-evaluate   itsbidafterthepublicopeningandeffectivelywithdrawthebidbyrefusingtorespondor  respondinginasubversiveway;thebiddershouldnothaveasecondbiteattheapple.This  meansthatthebidpackagemustbeexaminedthoroughly.Someofthequestionsyoumayask  are:     CXXcl#XcXC# XXc0 4 #XcX ? #Doesthecoverlettertakeexceptiontoanymaterialtermsandconditions?{\4(#4(# L    L "0 4   Isthebidambiguous?Isitsusceptibletotwoormorereasonableinterpretations?L  ݌S44(#4(# Ќ  L    L "0 4   Wereallmaterialamendmentstothesolicitationacknowledged?L  ݌+ 4(#4(# Ќ  L    L "0 4   Wasthebidsigned?L  ݌ 4(#4(# Ќ    L  Lw "0 4   Wereallmaterialrepresentationsandcertificationscompleted?Lw  ݌!4(#4(# Ќ  L    LC "0 4   IstheBuyAmericacertificaterequiredby49_ CFR_ Ԁ661.6or661.12signed?_ R /  89      _ 4A!O  5  6Oenes  7!LC j ݌#4(#4(# Ќ   %l!   L  L"0 4   Wererequireddescriptiveliteratureandbidsamplesincludedwiththebid?L݌4(#4(# Ќ  L    Lh"0 4   Ifrequired,wasabidbondorbidguaranteesubmitted?Lh݌4(#4(# Ќ  L    L:"0 4   Wasthebiddefective?L:a݌ 4(#4(# Ќ  L    L"0 4   Wasthepriceofferedfirmanddefinite?L݌ 4(#4(# Ќ  L    L"0 4   Werethematerialitemsorinformationrequiredbytheinvitationsubmittedwiththe ` bid?L݌kL 4(#4(# Ќ    L  0  L"04(#(#  Wasthebidreceivedattheplacedesignatedintheinvitationattheexacttime C$  specifiedorwasitlate? L݌/ 4(#4(# Ќ  Ifsomethingisquestionable,istheissueoneofresponsibilityorresponsiveness? /  90      ׀4B O  5  6Oenes  7 Your   customersmaywanttogaingreaterconfidenceinthebidsbyspecifying,purportedlyasa   conditionofresponsiveness,thatbiddershavespecificcapacities.Youmayalsofindadefect  (e.g.incertificationsorrequestedinformation)thatrelatesprimarilytotheabilityofthebidder  toperform.PrecedentfordirectFederalprocurementisthatmerelybythelanguageinan_ IFB_ ,a  contractingagencycannotchangeamatterofresponsibility(abilitytoperform)intooneof  responsiveness(unequivocaloffertoperform).D /  91      ׀T4CO  5  6AOUenes  7hebestpracticeistomaintainthisdistinction. p Materiality-Wholecoursesaretaughtonsealedbiddingandtheissueofresponsiveness.The gH listofquestionsandissuesraisedinthisdiscussionshouldnotbeconsideredas S4 all-encompassing.Instead,theyareintendedtoraisesensitivitytosomeoftheissuesthatimpact ?  responsiveness.Itshouldbeapparentfromthisdiscussionthatthesinglemostimportantconcept +  impactingresponsivenessis"materiality"--doestheinclusionoromissionofthefact,item,or  requirementaffectprice,quantity,quality,ordeliveryoftheitemsoffered?Ifso,thebidis   probably_ nonresponsive_ .Ifnot,thebidisprobablyresponsive.Thereare,however,manyfacts   andsituationsthatdonotclearlyfallwithintheseparametersandbecomeissuesthatmayrequire ! analysisandinputfromyourlegaladvisor.Ifindoubt,ask!  "  _ DBE_ -Although_ DBE_ Ԁprogramcomplianceismoreoftenaresponsibilityrequirement,some $  processesmake_ DBE_ Ԁcomplianceaconditionofresponsiveness.Thisissueisdiscussedfurther  %l! inthediscussionof_ DBE_ ԀsubmissionsandawardinChapter7,"DisadvantagedBusiness  Enterprise."     4.4.5BidMistakes     ̀DISCUSSION    Itmaynotbeascertainasdeathandtaxes,butinevitablyandunfortunately,amistake  t maybediscoveredinyourlowbid.Amistakedoesn'tnecessarilymeanyoucannotaward ` acontracttothelowbidder,butthatcouldbetheresult.Howyoutypicallytreatthe kL  mistakewilldependuponwhatthemistakeisandwhenitisdiscovered.Statelawinsome W8  statesexplicitlyaddressesbidmistakes. C$  BestPractices    Mistakesinbidsareusuallydiscoveredafterbidsareopened /  92      ׀andbeforethecontractis   awarded.Themistake,orsuspicionofamistake,maybediscoveredbytheprocurementofficial  initsreviewofthebids.Someprocedurescallfortheidentificationofcleardefects(e.g.,  absenceofabidbond)atthebidopeningandtherejectionwithoutreadingofthebid.This  minimizesthediscussionandlikelihoodofprotest.Themistakemaybediscoveredbyan  unsuccessfulbidder(notjustthelowbidder)whenitisreviewingthebidsafterbidopening.Or p itmaybediscoveredbytheapparentlowbidderuponreturningtoitsofficeafterbidopening-- {\ sometimesdriventoanexaminationofitsbidafterithaslearnedhowmuchmoneywas"lefton gH thetable!"Regardlessofhowitisdiscovered,itisaprobleminthesealedbiddingmethodof S4 procurementbecauseofthestrictrulesofresponsiveness,becausebidshavebeenexposed,and ?  becausetheintegrityoftheprocurementprocessisatstake. +   Thefourgenerallyacceptedcategoriesofbidmistakesare:    (#17p[DWXYZ  1.0 4 Minorinformalitiesorirregularitiesinbidspriortoawardofthecontract; !  4(#4(#   2.0 4 Obviousorapparentclericalmistakesdiscoveredpriortoaward; #  4(#4(#   3.0 4 Mistakesotherthanminorinformalitiesorirregularitiesinbids,orobviousor %l! apparentclericalmistakesthatarediscoveredpriortoaward;or w&X"  c'D #4(#4(#   4. 4 Mistakesdiscoveredafteraward.    Ifamistakefitswithinoneofthesecategories,threethingscanhappen:themistakecanbe   corrected,themistakewillberecognizedandthebidallowedtobewithdrawn,orthemistake   willnotberecognizedandthebidnotallowedtobewithdrawn.    Wewilldiscusseachofthesecategoriesofmistakesandwhattheconsequencesofeachareifit  t isestablishedthatamistakehasbeenmade.Onefinalthoughtbeforethatdiscussion:many ` transitpropertiesintheirprocurementregulationshaveadoptedrulesrelatingtothetreatmentof kL  thesecategoriesofmistakesand,inmostcases,havepatternedtheirrulesaftertherulesineither W8  theFAR" /  93      ׀ortheRecommendedRegulationsfortheAmericanBarAssociation'sModel C$  ProcurementCodeforStateandLocalGovernments.%4 /  94      ׀Ifyouhaverulesaddressingthis /  commonproblem,itmakestheadministrationofyourprocurementprocessmucheasierbecause   therulesareknown,notdecidedonacase-by-casebasis.   Thefollowingtablesanalyzethetypesofmistakeandonesetofactions;manyvariationsonthe  illustrativerulespresentedherearesuccessfullyinuse.  *lK Ldxdd x: ;(#(#l, dd ,dd +    Minorinformalitiesor  irregularitiesinbidspriorto  awardofthecontract.   Merelyamatterofformand  notofsubstance.   Maybeanimmaterialdefectin {\ abidthatcanbecorrectedor g H waivedwithoutbeing S!4 prejudicialtootherbidders.  ?"   Thedefectis"immaterial" $  whentheeffectonprice, %! quantity,quality,ordeliveryis %" negligiblewhencontrastedi  &#  Remedy: thecontractingofficershallgivethebidderan $ opportunitytocurethedeficiencyorwaiveit,whicheveris % inthebestinterestsoftheowner.  & Examples ofminorinformalitiesorirregularitiesinclude ( failureofthebidderto:  )  Returntheincorrectnumberofsignedbidsrequiredbythe d+ _ IFB_ Ԁ(1submitted,3required). o P,  Signthebid,butonlyiftheunsignedbidisaccompaniedby G"(. othermaterialindicatingthebidder'sintenttobebound,such 3#/ asabidguaranteeorlettersignedbythebidderreferringto $0 andclearlyidentifyingthebiditself.  %1 Acknowledgereceiptofanamendmenttothe_ IFB_ ,butonly &3 ifitisclearfromthebiditselfthatthebidderreceivedthe4 ' 4    4  )"5 Ї*G Jdd dd dd K L(#(#, dd ,dd +   withthetotalcostorscopeof d therequirementbeing oP procured.9  [ < amendmentandintendedtobeboundbyitsterms) /  95      ׀orthe d amendmentinvolvedhadno(oranegligible)effectonprice, oP quantity,quality,ordelivery. [ < Furnishrequiredinformationthatgoestotheissueof 3  responsibility(e.g.,numberofemployeesbidderhas,    informationconcerningparentcompanyandanyaffiliates,:    certificationsconcerningEEOandAffirmativeAction    programs,certificationconcerningLobbying.4oO  5  6~=O=reme  7o>,B /  96      )     Obviousorapparent cD  clericalmistakesdiscovered O0  priortoaward.0 /  97       ;  Mistakemustbeobviousor   apparentonthefaceofthebid.   Thisisthecategoryofmistake  mostfrequentlydiscoveredby  thecontractingofficerduring  itsexaminationofthebidafter  bidopening. l Ifyouknow,orhavereason cD toknoworsuspect,thata O0 mistakeinabidhasbeen ; made,thereisarealissueof ' whetheryoucan,ingoodfaith,   acceptthatbid.   <  !   Examples include: cD ! Obviousmisplacementofdecimalpoint. ? # Obviousreversalofthepricef.o.b.destinationandprice  % f.o.b.origin--higherpriceforyoupickingtheproductupat  & theoriginthanforthebiddertodelivertheproducttothe ' placedesignatedbyyou. ( ̀Obviousmistakeindesignationofunit. * ̀Typographicalerrors. l, ̀Errorinextendingunitprices. C cD.  󀄀Transpositionerrors ;0 ̀Arithmeticalerrors.  2 =F   3  * dd dd dd G J(#(#, dd ,dd +   Thebiddermayalsodiscover d thiscategoryofmistakeand oP bringittoyourattentionand [ <  requestthatitbeallowedto G ( correctthemistake.F 3       Procedure: Whatdoyoudoifyouhavethiscategoryof d mistake? sT  Recommendyoumakeyourlegalcounselawareofsituation    soproperlegaladvicecanbeobtainedasyouproceed    throughthemistakeevaluationprocess.Thisisanareathat    isprimeforalaterprotestbyeitherthefirmrequestingrelief   froma"mistake"orfromanotherbidderthatfeelsitcouldbe   impactedbyyourdecisionregardingthemistake.  Requestverificationofthebid.Thisisnecessarytoassure _@  thecontractingofficerthatthebidasconfirmediswithout K,  error,ortoelicittheallegationofamistakebythebidder.H 7  Thisprocessnormallyincludesthefollowingsteps:   Prepareawrittenrequesttothebidderthatitverifyitsbid h price. sT Therequestputsthebidderonnoticeofamistakesuspected  bythecontractingofficerasappropriate.Forinstance,the  bidissomuchlowerthantheotherbidsortheagency  independentestimateastoindicateapossibilityoferror.Or,  highlightimportantorunusualcharacteristicsofthe  specification.Pointoutthefactthattherewerechangesin   thespecificationsorrequirementsfrompreviouspurchases ! ofasimilaritem.Yournoticecanincludeanyinformation, p" whichisproperfordisclosure,thatleadyou(asthe {\# contractingofficer)tobelievethatthereisamistakeinthe g H$ bid. S!4% Evaluatetheverificationresponsefromthebidder.Ifthe "' bidderverifiesitsoriginalbid,youmayconsiderthebidas #( originallysubmitted.If,however,thebidderallegesa $) mistakewasmade,itisrecommendedyoutakethefollowing %* actions. &+ Advisethebiddertomakeawrittenrequesttowithdrawor S(4!- modifyitsbid. ?) ". Advisethebidderthatitmustsupportitsrequestwithany *#0 andallevidencetosupportthepositionitistaking. +$1  IAdvisethebidderofdefinitetimedeadlinesinwhichto {-\&3 providetheinformationrequested._   ԍ $t. Besuspicious--don'tforgetthateveryone'sbidhasbeen &T0 exposedtotheworld! 'D 1 Ў Remedy :Afterverification,thecontractingofficermay _)$"3 Ў correctanapparentorobviousclericalmistake.Itis O*#4 recommendedthatyou: ?+$5 Attachtheverificationtotheoriginalbid. -%7 Reflectthecorrectionintheawarddocument. -%7 Ў_   g.H'4  Ї*7 8dd dd dd  (#(#, dd ,dd +     d Besuspicious!don'tforgetthateveryone'sbidhasbeen d exposedtotheworld! oP  &v%XXcXcX%&vRemedy :Afterverification,thecontractingofficermay 3  correctanapparentorobviousclericalmistake.Itis #  recommendedthatyou:     &v%XXcXcX%&vAttachtheverificationtotheoriginalbid.          X  &v%XXcXX݌̌   XcX%&vReflectthecorrectionintheawarddocument. x  &v%XXcXcX%&vDocumenttheprocurementfiletoindicatewhyyoutookthe [<  actionyoudid. G(  qL&v%XXcXcX%&vYoushouldonlyallowabidtobecorrectedifthebid,as    submitted,wasresponsive--youshouldnotallowcorrection   ofabidthatwouldmakeanon-responsivebidaresponsive  bid.  Ifcorrectionofthebidwoulddisplaceoneormorelower  bids,itisrecommendedthatyounotallowcorrectionunless t theevidenceofthemistakeandbidactuallyintendedare ` ascertainablesubstantiallyfromtheinvitationandbiditself kL asopposedtoevidencebroughtintoyoubythebidderin W8 responsetoyourrequestforverification. C$ Donotallowthebidtobewithdrawn.Z    Mistakesotherthanminor  | informalitiesorirregularities !h inbids,orobviousor s"T apparentclericalmistakes _#@  thatarediscoveredpriorto K$,!  l` award.]    _ Y_   _ 2 /  98      F_ 7%" Thesemistakesaregenerally '$ raisedbythebidderalongwith ' % arequesttowithdrawitsbid.K`  (!&  Procedures: Itisrecommendedthatyoufollowthe  |' proceduresoutlinedinthepreviousdiscussionwhenabidder !l( allegesamistakehasbeenmade.Payparticularattentionto w"X) theevidencethebidderfurnishesthatestablishesthe c#D* existenceofthemistake!remember,itisnotobviousfrom O$0+ thebiditself.Beparticularlysensitivetothebidderthat a ;%, wantsoutofitsbidsimplybecauseitmadeajudgmental '&- errorinpreparingitsbidand,afterbidopening,discoveredit '. "lefttoomuchmoneyonthetable." ' / c  (!0 Examplesinclude: d      2d  Apricingelementfroma [ < vendorwasreceivedbutnot G ( includedinthebid!the 2dd݌ 3  Ќ         2e  electricalsubcontractor'squote   wasnotincluded.ee݌   Ќ     5  ,T( 4 <DL S |XTXcXXXc  2 ,?( 4 <DL4X?5f  5fg݌̌ 6" S |XX6  XcXXXc  Thematerialcostforan   elementofworkwasincluded"d   butthelabortoinstallitwas   notincluded.h     Remedy: Youshouldallowthebiddertowithdrawitsbidif: d    Themistakeisclearlyevidentonthefaceofthebid _ @ documentbuttheintendedcorrectbidisnotsimilarly K , evident;or 7  Thebiddersubmitsproofwhichclearlyandconvincingly   demonstratesthatamistakewasmade.     Youmaymakeadeterminationtocorrectthebidandnot  allowitswithdrawalif:Hi   Thebidderrequestspermissiontowithdrawabidratherthan x  correctit;7 /  99       d  Theevidenceisclearandconvincingbothastotheexistence [< ofamistakeandastothebidactuallyintended;and G( Thebid,bothasoriginallysubmittedandascorrected,isthe  lowestbidreceived. k     m Mistakesdiscoveredafter p! award.    _ /n   _ 9 /  100       {\"   Althoughitismuchrarerthan S4$ otherallegationsofmistake,a ? % contractormayraisetheissue + & ofmistakeinbidafteraward  ' ofthecontractismade.m !( Obviously,theburdenof "* provingamistakewasmadeat #+ thistimeisgreatandmustbe $, carriedbythecontractor.   _  p  _ = /  101       %-   "p  &l.  qRemedy :Whatyoudowithmistakesdiscoveredandproven p/ afterawardarereallypolicyquestionsthatyoushould `0 considerwhenadoptingyourregulations.Therereallyisno kL1 "best"practiceinthisareabutitappearsthattransit W82 propertieshavetakenoneofthetwoapproachesoutlined C$3 below: /4  l` The"hardline"approach:donotallowcorrectionexcept !6 wherethecontractingofficermakesawrittendetermination !7 thatitwouldbeunconscionablenottoallowthemistaketo "8 becorrected.   _  u  _ A4 /  102      7r  #9  l` u  d  TheFARapproach   _  v  _ D /  103      offersmorealternativesotherthanthe d "unconscionable"approach: oP Themistakemaybebycontractamendmentifcorrectingthe G ( mistakewouldbefavorabletothetransitpropertywithout 3  changingtheessentialrequirementsofthespecification.         x  xx݌̌   Additionally,adeterminationcouldbemadeto(a)rescind    thecontract;(b)reformthecontracttodeletetheitems   involvedinthemistakeortoincreasethepriceifthecontract   price(ascorrected)doesnotexceedthatofthenextlowest   acceptablebidundertheoriginal_ IFB_ ;or_ (c)_ Ԁallownochange   tobemade. t  Itisrecommendedthatyouproceedverycarefullythrough kL  thisprocessandwithadviceoflegalcounsel.Cv W8   4.4.6BidWithdrawal  _@  DISCUSSION 7  It'stwodaysafterbidopening.You'resittingatyourdeskbaskinginthegreat  procurementyouconductedandallthecompetitivebidsyoureceived.Thephonerings,  breakingtheself-congratulatorymood,andyoupickitup."Hi,I'mMr.LowBidderand  wehavedecidedwereallydon'twantthiscontractandwanttowithdrawourbid!"Talk  aboutmessingupyourday.Whatdoyoudonext?   Section4.4.5addressestherulesrelatingtothewithdrawalofbidsbecauseofamistakein  x bid.Thoserulesgovernalmostalloftheinstancesinpubliccontractinginwhichabidder !d isallowedtowithdrawitsbidafterbidopeninginthesealedbiddingprocess.Biddersare o"P usuallypermittedtomodifyorwithdrawtheirbidspriortobidopening. [#<  BestPractices 3%!  Whentoallowwithdrawalofbids  '# Ifyoureceiveawrittenrequestfromabidderpriortothetimeanddatesetforreceiptof bids that (!% itwishestowithdrawabidithaspreviouslysubmitted,thatrequestishonoredundermost  )"& procurementpolicies.Iftherequesttowithdrawisreceivedafterthetimeanddatesetforreceipt  ofbids,thesamerulesapplytothatrequestaswouldapplytothelatereceiptofabid.     AswediscussedinSections4.3.2.3,"Solicitation,"and4.4.1,"Solicitation"(SealedBids),we   recommendedinclusionofaclausethataddressestheLateSubmissions,Modifications,and   WithdrawalsofBids.Thisclausesetsforththeonlycontractualperiodduringwhichbidscanbe   withdrawn.Subparagraph(g)oftheFARclause,whichformsthebasisformanytransitproperty   clauses,provides:   t  ( 7 N" ,XX4` [IX S |XN0  (g)Bidsmybewithdrawnbywrittennoticeortelegram(including_ mailgram_ )received kL  atanytimebeforetheexacttimesetforreceiptofbids.Ifthesolicitationauthorizes W8  facsimilebids,bidsmaybewithdrawnviafacsimilereceivedatanytimebeforetheexact C$  timesetforreceiptofbids,subjecttotheconditionsspecifiedintheprovisionentitled /  'FacsimileBids.'Abidmaybewithdrawninpersonbyabidderoritsauthorized   representativeif,beforetheexacttimesetforreceiptofbids,theidentityoftheperson   requestingwithdrawalisestablishedandthepersonsignsareceiptforthebid. (#(# Ifabidderhasestablishedtheexistenceofamistakeinitsbidpriortoawardofthecontract,it  shouldbeallowedtowithdrawitsbidif:     DWXYZ(}sL  K ,X, [IX ,XX4` [IXK0  0(#(#Lv"04(#(#  Themistakeisclearlyevidentonthefaceofthebiddocumentbuttheintended p correctbidisnotsimilarlyevident;orLv݌{\4(#4(# Ќ  L  0  0(#(#L"04(#(#  Thebiddersubmitsproofwhichclearlyandconvincinglydemonstratesthatamistake S4 wasmade.L=݌? 4(#4(# Ќ  Whatiftherequesttowithdrawdoesnotfitintothosecategories?  Forthereasonsthatfollow,youwillprobablynotallowthebiddertowithdrawitsbidwithout   legalcounsel.Thisisanissuethatmaybeimpactedbyaninterpretationofyourstatelawon ! publiccontracting,particularlyintheabsenceofaclauseaswillbediscussednext. " Ofcriticalimportancetobeingabletotakethispositionistheinclusioninyoursolicitation $  documentoftwoc_ lauses_ ԀwhichwehavereferredtoinprevioussectionsoftheManual.Thefirst %l! clause(whichwehaveincludedasuggestedprovisionearlierinthisdiscussion)istheLate w&X" Submissions,Modifications,andWithdrawalsofBidsclause.Thesecondisaclauseaddressing c'D # thebidnotificationperiodasdiscussedinSection4.4.1,"Solicitation."Justasanexample,the O(0!$ followingistheclausethataccomplishesthislevelofprotectionbyfederalagencies: ;)"%  K" ,XX4` [IX ,X, [IXK ( sDWXYZ0  PeriodofAcceptanceofBids  +#'  (#(# 0  Incompliancewiththesolicitation,thebidderagrees,ifthisbidisacceptedwithin____ ,%) calendardays(60calendardaysunlessadifferentperiodisinsertedbythebidder)from0@R"(#(# -&*(#(# 0  thedatespecifiedinthesolicitationforreceiptofbids,tofurnishanyorallitemsupon  whichpricesarebidatthepricesetoppositeeachitem,deliveredatthedesignated   point(s),withinthetimespecifiedintheSchedule.H /  104      (#(# Thereisnothingmagicalabouttheparticularlanguageinthisclause,butthelegalcontextisvery   important.Ifthislanguageispartofthesolicitationthatthebiddersignswhensubmittingits   bid,aspartofitsoffer,itistellingyouthatyouhave60daystoacceptitsbid.Ithasagreedto   holditsofferopenforthatperiodoftimeandyoucantakethatlongtoactuponthatoffer.  t Underthisexample,youdonot,however,have61daystoacceptthebid!  `  "Whatistherationaleforthisresult?Ithoughtyoucouldalwayswithdrawyourofferpriortoit W8  beingaccepted."Thereisalotoflawonthissubject,butoneoftheearliestarticulationsofthis C$  philosophyiscontainedinthequotefroma1909decisionoftheUnitedStatesCourtofClaims /  thatisstillgoodlawonthisissue:     0  Whataretherightsofbiddersastothewithdrawaloftheirbidsaftertheyhavebeen   openedandtheyhavebeeninformedthereof,butbeforetheyhavebeenaccepted?  TheagentsoftheGovernmentstanduponadifferentfootingfromprivateindividualsin  thematterofadvertisingforthelettingofcontractsinbehalfoftheUnitedStates.They  havenodiscretion.Theymustacceptthelowestorthehighestresponsiblebid,orreject  allandre-advertise.Privateindividualsarenotrequiredthustoact.Henceitisapparent p thatthegovernmentagentsshouldbeallowedareasonabletimeaftertheopeningofbids {\ beforetheyareallowedtobewithdrawn,sotheycanbeaffordedopportunitiesto gH ascertainwhethercollusionorfraudhadbeenperpetratedagainsttheUnitedStatesby S4 thepartiesengagedinthebidding.Itisalsoapparentthatiftheruleofallowing ?  immediatewithdrawalsaftertheresultsofthebiddingareknown,fraudsinnumerable +  couldbeperpetratedagainsttheUnitedStatesandthuspublicjusticewouldbegreatly  hampered.L /  105           (#(#  Youneedtocheckwithyourlegalcounseltoseehowthislanguagemightbeaddressedunder ! yourparticularstatelaw.Ifthematterhasnotbeenchallengedandyouarefacedwitha " challenge,thiscaseisagoodstartingpointtoseehowandwhythisrulehasdevelopedinthe # wayithas.Thisruleisalsoreferredtoasthe"firmbidrule." $  "ButIdidn'thavethatlanguageinthesolicitation.WhatdoIdo?"Again,theanswermaywell w&X" lieinyourstatelawsandyourlawyerwillhavetoadviseyouonwhattodo. c'D #   ;)"% However,intheabsenceofthisclause,youmightwanttocheck2.205oftheUniform  CommercialCodewhichmaybethelawinyourstate.O /  106      ׀I4Ude*O  5  6Oǡ(  7is*naddressingtheFARclause(ora   predecessorclause),theGeneralServicesBoardofContractAppealsopined(andreiteratedthe  Scottrationale):     0  ThisruleforGovernment_ procurements_ Ԁalsofindssupportincommercialsettings.Under   theUniformCommercialCode,UCC2-205,'firm'offersareirrevocable.InWestern   Adhesives,_ GSBCA_ ԀNo.7449,85-2,_ BCA_ Ԁ17,961,theappellantattemptedtodisputethe  t validityofacontractanddefaultterminationonthebasisthatitwithdrewitsbidpriorto ` award.TheBoardfoundthatGovernmentacceptanceofabidduringanextended kL  acceptanceperiodgrantedbythebiddercreatedavalidcontractbecausethesolicitation W8  wasaformallyadvertisedprocurementforwhichbidswereirrevocableduringthe C$  acceptanceperiod.Failuretoperformafteracceptancejustifieddefaulttermination.The /  Boardconcluded,'thisappealturnsonthefirmbidrule.Abidsubmittedinaformally   advertisedprocurement--sealedbid--isirrevocable,andanacceptanceafteran   attemptedwithdrawalwillcreateacontract.'WesternAdhesives,85-2_ BCA_ Ԁ[17.961]at   90,018.R /  107      (#(# Ifabidderwithdrawsitsbidaccordingtotheallowancesinthepriorsection,youwillnormally  proceedtothenextlowestbidderwithoutexpectingcompensationfromtheerringbidder.  However,ifthebidderisrefusedpermissiontowithdraw,andattemptstowithdrawbyfailureto p perform(e.g.,failuretoproduceaperformancebond),youmaybeinapositiontoterminatethe {\ bidderfordefault,minimizeyourdamagesbyawardingtothenextlowestbidder,andrecoverthe gH damagesincludingthebiddifferentialfromthedefaultingcontractor.Youshouldevaluateall S4 thecostsofundertakingthiscourseofaction,(includinglongruneffectoncompetitionand ?  pricing)ifany,beforeproceeding.  +  4.5COMPETITIVEPROPOSALS(REQUESTFORPROPOSALS)     % ) {XXcXcX{4.5.1Solicitation&ReceiptofProposals%) !  {XXc** Hdd dd dd 7 8(#(#,xdd +  a#Ba#B  XcX{REQUIREMENT  #  Requestsforproposalsshallbepublicized.VR /  108       E%&!   a&B! *l` mddxdd x* H(#(#l,xdd +    _ RFPs_ Ԁshallidentifyallevaluationfactorsalongwiththeirrelativeimportance.X /  109       d ^XXc#XcX^#Proposalswillbesolicitedfromanadequatenumberofqualifiedsources.[ /  110      ׀Youshallmake   awardonlytoresponsiblecontractorspossessingtheabilitytoperformsuccessfullyunderthe   termsandconditionsofaproposedagreement.Considerationshallbegiventosuchmattersas    {contractorintegrity,compliancewithpublicpolicy,recordofpastperformance,andfinancial   andtechnicalresources.]B /  111         ^XXc#XcX^γ#Awardswillbemadetotheresponsiblefirmwhoseproposalismostadvantageoustothe G(  grantee'sprogramwithpriceandotherfactorsconsidered.` /  112       3   0^XXc#XcX^=#Inarchitecturalandengineeringservices_ procurements_ ,granteesshallusecompetitiveproposal   proceduresbasedontheBrooksAct,whichrequiresselectionbasedonqualificationsand   excludespriceasanevaluationfactorprovidedthepriceisfairandreasonable.(SeeSection   6.5!ArchitectEngineeringServices.)b /  113          0DISCUSSION     4 &  Arequestforproposalstypicallyincludesalloftheelementsofaninvitationforbids,and  inadditionshallcontaintheevaluationfactorsandtheirrelativeimportance,e.g.,by  statingthatthefactorsarelistedindecliningorderofimportance.Therequestcanspecify z theinformationneededtoperformtheevaluation,andmayrequirethatcost/price f 'Ainformationbephysicallyseparatedsothatthetechnicalevaluationcanbeperformed qR separatelyfrompriceevaluation._ RFPs_ Ԁaretypicallypublicizedinnewspapersand/or ]> tradejournals,andareissuedtoqualifiedmailinglistsmaintainedinamannersimilarto I* _ IFB_ Ԁlists.(SeeSection4.3.2.2,"SolicitationMailingList.") 5 Purpose    Therequiredfeaturethatprincipallydistinguishesan_ RFP_ Ԁfroman_ IFB_ Ԁisthelistingofevaluation ! factors.Thesefactorstypicallyincludenotonlyresponsibilityfactors(suchasfinancial,human, " andphysicalcapacitytoperform),butalsotechnicalfactors(suchasthedegreetowhichthe # proposerisexpected,basedoninformationsubmittedandavailable,toachievetheperformance  $  &v%XXcXcX%&vobjectives,toprovidethequalityexpected,andontherelativequalificationsoftheproposer's  personnel).Many_ RFPs_ Ԁgobeyondlistingthesefactorsinorderofimportance,andalsodescribe   theevaluationprocessindetail,listingweightsforeachfactor,illustratingthescoringmethod,  andspecifyingtheprocedureforweighingpriceintotheselection.   Thepurposesfordisclosingoftheevaluationprocessaresothat:    [DWXYZ(Op"3"  B,, X ,XX4` [IXB  32O3  0    _ offerors_ Ԁcanmoreaccuratelyrespondtoyourneedsratherthansolelyrelyonthetechnical  t specificationsalone;3Q݌`(#(# Ќ       "3"    32O3  0    proposerswillbeabletoclearlypresenttheinformationyouneedtoconductyour W8  evaluation;and3݌C$ (#(# Ќ  "3"    32O3  0    theappearanceoffavoritismorunethicalpracticein_ offeror_ Ԁselectionwillbediminished.   3݌ (#(# Ќ  $   H( <DL!,, XH   E+ 4 <DL!  X!E$)    Thecompetitiveproposalprocessinvolvesasubjectiveevaluationprocessanddiscussionsthat   aretypicallyconfidential.Publicacceptanceandacceptancebydisappointed_ offerors_ Ԁmightbe  lessthaninthecaseofsealedbids,iftheevaluationandselectionprocessisnotwelldocumented  anddisclosedinadvance.$)݌  Ќ  -,, XX!-   BestPractices  p EvaluationandAward-Thefollowingisalistingofelementscommonlyfoundinthe gH competitiveproposalmethodofprocurement. S4 "3"    3A2O3  0    Bothatechnicalandcostproposalarerequestedsothattheymaybeevaluated,frequently +  byseparatestaff.Wheretheappearanceoftechnicalobjectivityisimportant,itisabetter  practicetoinitiallyevaluatethetechnicalproposalswithoutknowledgeofcosts,sothat   objectiveandimpartialevaluationcanbeobtained.3Az݌ (#(# Ќ  "3"    32O3  0    Theevaluationfactorstobeconsideredintheawardareidentifiedinthe_ RFP_ Ԁalongwith " therelativeimportanceofeach.Whilethisrequiresonlytherankingofthefactors # withoutquantifyingtheimportanceordescribingtheprocessforapplyingthefactorsto $  proposals,someagenciesdisclosetheirselectionprocessindetail.3݌%l!(#(# Ќ        "3"      32O3  0    DisclosureDisadvantages.Disclosingthespecificweightsandscoringprocessesmay c'D # encourageproposerstodistorttheirproposals,andmaystrengthenthedisappointed O(0!$ proposer'sattackontheagencydecision;3d݌;)"%(#(# Ќ    "3"      32O3  0    DisclosureAdvantages.Thefulldescriptionoftheprocessguidesproposersin +#' understandingyourneeds,bolsterstheobjectivityofyourevaluationteam,encourages +$( candorfromtheproposersduringnegotiations,andencouragescompetitionthroughthe ,%) perceptionoffairtreatment.3?݌-&*(#(# Ќ   .'+ #&v%XXc#"3"    3\2O3  0    XcX%&vManystandard_ RFPs_ Ԁnotifyprospective_ offerors_ Ԁthatawardmaybemadeonthebasisof  initialproposalssubmittedwithoutanynegotiationsordiscussions.Theimplicationis   clearly,thattheinitialproposalshouldbetheirbesteffort.3\݌(#(# Ќ    ProposalGuarantee-Althoughperformancebondsareoftenappropriateandrequiredby_ RFPs_ ,   theuseofaproposalguaranteeislesscommonthanbidguarantee.Becausetheproposers   generallyhaveunavoidableopportunityduringnegotiationstorendertheirproposals   unacceptable,partofthepurposeofbidguaranteescannotbeachievedinthecaseofproposals.  t (SeeSection4.3.3.3.2,"BidGuarantee"andSection8.2.1,"PerformanceBonds.")However,ifit ` isparticularlyimportantthattheinitialproposalsbefirmcommitmentsbythe_ offerors_ ,that kL  frivolousproposalsnotbesubmitted,orthatproposersbeabletoprovideperformancebonds, W8  thenaproposalguaranteeintheformofacashier'scheck,letterofcredit,orapprovedbondmay C$  becost-effective. /   % - 4.5.2EvaluationofProposals    %- *l7 8ddxdd x` m(#(#l,xdd +   REQUIREMENT  C$  FTACircular4220.1E,paragraph9.d,requiresthefollowingwhenprocuringbycompetitive  proposals:  0 @ 0l@"@" @ d. l ProcurementByCompetitiveProposal/RequestforProposals(_ RFP_ )....Ifthis h procurementmethodisusedthefollowingrequirementsapply:sTl"l" ";"  3 T X,, X30 T X T X0;0  2O(  1  )3  0 ""  Requestsforproposalswillbepublicized.Allevaluationfactorswillbe0@30@""0@ " "0@T "T "0@ " "0@""0@\"\" @  K, identifiedalongwiththeirrelativeimportance;;݌7 " " Ќ  0  (2)  Proposalswillbesolicitedfromanadequatenumberofqualifiedsources; ""   0  (3)Granteeswillhaveamethodinplaceforconductingtechnicalevaluationsof0@!""the ! 0 ""proposalsreceivedandforselecting_ awardees_ ;" " " 0  (4)0 ""Awardswillbemadetotheresponsiblefirmwhoseproposalismost0@T "T " $  advantageoustothegrantee'sprogramwithpriceandotherfactorsconsidered; %x! and&d" " " 0  (5)0 ""Indeterminingwhichproposalismostadvantageous,granteesmayaward(if0@=!T "T " [(   _ _  /  155      _ h;;݌   Ќ  $ 4X X$  h  <%  <DL4X<  h&@    GSAconductedareverseauctionpilotprogramfromMay2000toMay2001.GSAreportsthat  variousgovernmentagenciesparticipatinginthepilotprogramrealizedsavingsof12%48%  throughthereverseauctionprocess.Forexample,theDefenseFinancingandAccounting  Servicepaid22percent,or$2.1millionless,thannormalpricesfordesktopcomputers,laptops  andprinters.TheNationalInstitutesofHealth(NIH)paid25percent,or$395,000,lessthan p normalpricesforutilitywipes,atypeofcleaningsupplies.TheCoastGuardpaid22percent,or {\ $300,000,lessthannormalpricesforsparepartsfor_ HU_ Ԅ25Falconjets.h&@@݌ gH Ќ  $ 4X X$  h  <%  <DL4X<  h0D  h0DD݌̌  $ 4X X$  TheDeputyAssistantCommissionerforServiceDevelopment,GSAFederalTechnology ?  Service,Mr.Manny_ DeVera_ ,iscreditedwithdeveloping TenCommandmentsforReverse +  Auctions:    ReverseAuction   TenCommandments  !    (#17p[DWXYZ* X4X*  1.0  Linkreverseauctionstrategytoacquisitionstrategy.Whendevelopingtheacquisition # strategyask, Couldreverseauctioningapplytothisrequirement?$| (#(#   2.0  FollowtheFederalAcquisitionRegulation.Theseguidingprinciplesstillapply.   _ H   _ ` /  156      s&T"(#(#   _'@ # _   3.0  Chooseasolidperforming_ enabler_ .(_ Enablers_ Ԁarefirmsthatperformreverseauctions.)  Withthetroublescurrentlybeingexperiencedinthedigitaleconomy,afew_ enablers_    maynotbearoundinthefutureandcouldpresentrisks.(#(#  E( 4 <DL XE' XX'  4.0  Educatesuppliersinadvanceofconductingareverseauction.Fullservice_ enablers_    providethisserviceintheirfees. (#(# h  B%  <DL XB  * X X*hL    5.0  Bepreparedforpublicityanduseittoyouradvantage.Publicityhappensbecause  t reverseauctionsarerelativelynewandthemedia,tradeassociations,seniorhLPM݌`(#(# Ќ  0 X X0  0  0(#(#governmentofficialsandothersareallcarefullywatchingthegovernmentsentryinto kL  thisnewwayofdoingbusiness._ Enablers_ Ԁarealsoaggressivelypublicizingtheir W8  activities.C$ (#(# E( 4 <DL XE' XX'  6.0  Beginwithsimplerequirementsandmovegraduallytomorecomplexones.Themore   experienceanorganizationhaswithconductingauctions,themorecomplex   requirementstheycanputoutforbid. (#(#   7.0  Establishtherulesofthereverseauctionupfront.Someexamplesoftheserulesare  thebidincrementstobeused,timeextensions,logisticsandotherconsiderations.(#(# E( 4 <DL XE' XX'  8.0  Conductamockauction.Theadage practicemakesperfectisveryappropriate p here.{\(#(# 0 X X0  9.0  Considerconductinganauctionwherebiddersbidtoprovideaquantityofa S4 commodity,asopposedtopricebasedbidding.Forexample,reverseauctionsare ?  beingconductedwherethebuyerhasasetamounttheywanttospend,say$1million +  forPCs,andisnotfocusedontheunitcost.Intheseauctions,biddersbasetheirbids  onthenumberofPCsthattheywillprovideforthe$1million. (#(#   10.0  TheContractingOfficerisincontrolofthereverseauctioneventatalltimes.!(#(# _ FIRSTGOV.gov_ !TheU.S.Governmentsofficialwebportalis_ firstgov.gov_  /  157      .Inserting #  reverseauctionsintheSearchboxwillgiveyouaccesstomorethan186millionwebpages $  fromfederalandstategovernmentswhereyouwillfindinformationregardingtheseagencies %l! experiencewithreverseauctions. w&X"   #XXc#XcX PrivateIndustryExperience! Theprivateindustrysectorhasbeenusingreverseauctions O(0!$ sincethemid1990s.Arecentwhitepaperpresenteddataindicatingthat20percentofall  ?) "% privateindustryfirmsmaybeusingonlineauctions(realtimebidding)toprocureaportionof  theirgoodsandservices._  /  158      _     [   ݀   Acurrentmagazinearticlediscussestheexperienceofonemajorprivateindustryplayerinthe   reverseauctionarena!SunMicrosystems.SunimplementeditsDynamicBiddingprogramin   May2000withagoalof20percentreductionoftheirtargetedbudget,andtheyachievedthisin   theirfirstpilotauction.Ithassincebeenusedformorethan100_ procurements_ Ԁandcoversallthe   commoditiesSunbuys.OneoftheimportantfacetsoftheSunmethodisthatthecompanyuses  t a bestvalueapproachtosourceselectionwiththeirpriceauctions.Sunbelievesitssupplier ` relationshipsarestrategicanditwillnotswitchtoanuntestedcompanysimplytogetalower kL  price.Pastperformanceinareassuchasquality,manufacturingflexibility,facilitylocationand W8  engineeringsupportarealsoconsideredinthefinaldecision.Sunemphasizesthatthereverse C$  auctionapproachdoesnotreplacethestrategicrelationshipbetweencompanies.Pricesbidare /  onlyonefactorinthefinalselectiondecisionprocess,buttheauctionsmeanthatlesstimeis   spentonnegotiatingtheprice,termsandconditionsthanwaspreviouslythecase. Theend   resultisthatittakesSunanhourtofindthetruemarketprice,eliminatingweeksorevenmonths   ofnegotiatingbackandforth.IthasalsoresultedinsignificantbottomlinesavingsforSun.  Theyusedthisprocesson$1billionoftheirdirectspendinfiscalyear2001,andhaveraisedthe  goalforthisfiscalyear.    b$     /  159        ArecentarticleinanEbusinesspublicationsuggestedanumberofareasthatmightbegood p candidatesforreverseauctions.    c$     /  160      Theauthorsrecommendationsforreverseauctionsinclude: {\ -4X X- [DWXYZ(Op7"3"    3e2O3  0 4   StrategicRelationshipisLessImportant3ee݌S44(#4(# Ќ  h  ?%  <DL4X?  ! ` `  X!hf  Theauthorbelievesitisdifficulttobuildcooperativerelationshipswithsuppliers ?  throughanauctionprocessandthusauctionsaremoresuitableforpurchasesofoff +  theshelf,nearcommoditydirectmaterials.hf5g݌  Ќ  $4X` ` ,$  "3"  *,4X*  3h2O3  0 4   PriceisMainDecisionFactor3h0i݌ 4(#4(# Ќ  h  ?%  <DL,?  ! ` `  X!hi  Auctionsworkbestforcategorieswherethemain_ discriminator_ Ԁbetweensuppliersis ! price.hinj݌ " Ќ  $,` ` ,$    #  [DWXYZ(Opp[DWXYZ"3"    3)l2O3  0 4   '  ` ,'#XXcX#XcXManyQualifiedSuppliers3)lbl݌ 4(#4(# Ќ  h  <%  <DL ` X<  ! ` `  X!hxm  Auctionsneedadequatecompetitiontosucceed.Wherethereislimitedcompetition  becauseofascarcityofsuppliers,acommitmentofsupplyismoreimportantthanany   incrementalpricesavingsthatcouldbeachievedthroughanauction.hxm n݌   Ќ  !  ` X` ` ,!  "3"   K*4  ` X*  3o2O3  0 4   LowtoMediumStrategicImportance3op݌ 4(#4(# Ќ  * '44w*h  <%  <DL' <  $ '4 X$hp  0 ' 04'(#'(#Themoststrategiccategoriesshouldnotbesubjecttoastandaloneauction.This  t wouldincludecomponentscriticaltothecompanysendproduct.Inthesecasesthe ` auction,ifconducted,shouldbecombinedwithsomesortoffacetofacediscussions kL  withkeysuppliers.hp~q݌W8 4(#4(# Ќ  $ ' ' $  XK! 44 ' !"3"   ,44X3s2O3  0 4   PurchasesCanBe Lotted3ss݌/ 4(#4(# Ќ  h  9%  <DL,9  X! ` `  X!ht  Itmaybecumbersometorunindividualauctionsforeachofmanylineitems.Line   itemscanbebundledinto lotsandsupplierswillberequiredtobidonalltheparts   inthatlotornone.Thisconceptof lottingworkswellwithofficeproducts.ht9u݌   Ќ   ,` ` ,  "3"   #XXcl#XcX  4 ,3v2O3  0 4    @4 Benchmarks3vw݌4(#4(# Ќ  h  9%  <DL 49  !  4  X! ,h:x  Whenacompanyissatisfiedwithacurrentsupplierbutfeelsaneedtotestthemarket  toensuretheyarereceivingacompetitiveprice,theymaydothisthroughanauction.h:xx݌ p Ќ    4 4  ,x4 " , 4zw"$X` ,$0  04(#(#Potentialsupplierscanberequiredtorespondtoan_ RFP_ Ԁinordertoqualifyforthe {\ auction.Thekeyistoadequatelydocumentonesservice,delivery,paymentterms0@R" 0@R"percent0@R"(#(# gH andother nonpricerequirementsupfronttoensurethatsuppliersarebiddingonan S4 applestoapplesbasis.? 4(#4(# h  ?%  <DLXX?  4 h|  TransitAgencyExperience !TransitAgencyexperiencewithreverseauctionshasbeenh|}݌  Ќ  'XX X'  h  ?%  <DLXX?  h}  extremelylimitedincomparisontoboththeprivatesectorandtheFederalgovernment.TheLos   AngelesCountyMetropolitanTransitAuthority(_ LACMTA_ )hasusedthisprocesssuccessfully   onalimitedbasisbutdoesnotfeelithassignificantpotentialfortheirneeds._  /  161      _ _ LACMTA_  ! believesitcanworkwellforcommonmaterialsbutmaybeinconsistentwithgoodlongterm " partnershiprelationshipswithsuppliers.Forexample,wherethereisaneedfortechnicalsupport # orforquickreactiontimeinordertomeetcriticalagencyneeds,theauctionprocessdoesnot $  lenditselftothekindofagency/supplierrelationshipsthatarerequiredforlongtermmission %p! success.But_ LACMTA_ Ԁbelievesthatifpriceistheonlyconsideration,andsupplierpartnerships {&\" forthecommodityalsoisnotaconsideration,thenreverseauctioningcanworkwell.h}X~݌ g'H # Ќ  'XX X'  h  ?%  <DLXX?  h  h݌̌  'XX X'  h  ?%  <DLXX?  h  TheSoutheasternPennsylvaniaTransportationAuthority(SEPTA)conductedapilotprogramto ?) "% testtheprocessonaprocurementoffluorescenttubesandtheyweresuccessful.Buttheyalsodo +* #&  notfeelthattheiragencywilladoptthistechniquetoanysignificantdegree.Oneofthelessons +#' learnedbySEPTAisthecriticalityanddifficultyofinformingpotentialbiddersoftheauction  andgettingthempreparedtobid.    4    /  162      h݌      'XX X'    h  ?%  <DLXX?  h?  h?݌̌  'XX X'    h  ?%  <DLXX?  h(  TheHoustonMetropolitanTransitAuthority(MTA)isconsideringtheuseofareverseauction   forfurniture.    34   2 /  163      h(݌   Ќ  'XX X'    #XXcXw#  ##