Policies and Procedures

Solicitation of Bids, Proposals and the Award of Procurement Contracts


 
Chapter:                      2
Section:                      10.06
Computer Index Code:          C2C10.06
Origination Date:             5/22/84
Inst. Council Approval Date:  10/10/84
Revised Date:                 4/92
 
 
Subject:  Chapter  2      BUSINESS-VP FOR BUSINESS
          Section  10.06  SOLICITATION OF BIDS, PROPOSALS AND THE AWARD 
                          OF PROCUREMENT CONTRACTS
 
 
I.   PURPOSE
 
     To outline general bidding requirements for College purchases.
 
 
II.  REFERENCES
 
     Utah Procurement Code, 1953 Utah Code Annotated, 63-56-1 et. seq.
 
     Policy and Procedure 9.6 Procurement from Vendor in which College 
     Employee has an interest.
 
     Policy and Procedure 9.0 College Procurement - General
 
     Policy and Procedure 9.2 Small Purchases and Expedited Procurement
 
 
III. POLICY
 
     A.   Items purchased in excess of $20,000 (Senate Bill 113 of 
          the 1977 Legislature), except emergencies and automobile 
          purchases (Utah Code Annotated 63-2-29), are required to 
          bid publicly, advertised and held open for a reasonable 
          number of days.  Sealed bids are required which must be 
          opened publicly.  Such orders must be awarded "to the
          responsible bidder making the lowest and best bid."
 
     B.   Utah State Law requires that all construction or 
          remodeling in excess of $100,000 be handled and/or 
          approved by the Division of Facilities and Construction 
          Management (UCA 63-1-38.1)
 
     C.   Upon recommendation of the President, the Board of 
          Trustees shall approve/disapprove capital projects that 
          exceed the threshold established by the Legislature 
          (See Utah Code Annotated 63-1-38.1).  Projects for which 
          costs are less than the threshold will be approved by 
          the President.
 
     D.   Items costing less than $20,000 are bid either in 
          writing or verbally, depending on specific circumstances 
          and consistent with good business practice.
 
          1.   Purchase orders will be placed and those funds 
               encumbered from the department's estimated cost on 
               purchases up to $500.00 (without the bidding procedure) 
               at the discretion of the Purchasing Office.
 
          2.   The Purchasing Office uses procedures which will 
               provide for obtaining adequate and reasonable 
               competition for purchases up to $1,000.00.
 
          3.   Purchases from $1,000.00 to $20,000.00 will use the 
               following Procurement Regulations:  Insofar as it is 
               practical for small purchases of supplies or services 
               between $1,000.00 and $20,000.00 no less than two
               businesses shall be solicited to submit written 
               quotations.  Telephone quotations may be used on 
               procurements estimated from $500.00 to $2,000.00.  
               Award shall be made to the business offering the 
               lowest acceptable quotation.
 
     E.  Quotations are solicited from the widest practical selection 
          of firms of proven performance from whom it has been 
          established the best price can be obtained commensurate 
          with quality, required delivery, and the requirements 
          of the purchase.
 
     F.   Bid tabulations are referred back to the department 
          for recommendations when bids require further review.
 
 
IV.  PROCEDURES
 
     A.   Specifications
 
          1.   The Purchasing Department is responsible for 
               preparation, issuance, revision, maintenance and 
               monitoring of specifications for supplies, services, 
               and construction required by the College.  In the 
               preparation of specifications, the Purchasing Agent 
               may obtain the advice and assistance of requisitioning
               departments.
 
          2.   The purchasing office will not change specifications 
               or make unwarranted substitutions without approval of 
               the requisitioning department.
 
          3.   In the selection of possible suppliers, all applicants 
               are given equal consideration if after investigation 
               they are deemed qualified.  Among the factors to be 
               considered in this determination are:  service, 
               reputation, availability of stock, financial 
               responsibility, technical competence, and proximity. 
               Biddable orders shall conform to the State of Utah 
               preferred bidder law where applicable.  (UCA 63-2-50).
 
          4.   While the use of brand names is an essential element in
               achieving simplicity in preparation of the requisition, 
               brand names are used for descriptive purposes only, and 
               except in "No Substitute" cases should be followed by 
               the words "or equal."
 
          5.   An individual who has participated in the preparation of
               specification shall not be eligible to participate in or 
               receive a contract award for any college procurement 
               using such specification.  Exceptions to this rule may 
               be granted by the Vice President for Administration or 
               designee if (a) an exception is justified by the 
               existence of emergency conditions; (b) there is only 
               one practicable source of supply for the contract 
               requirements; or (c) it is not practicable or 
               advantageous to the college to deny an award to the 
               individual or to a bidder/supplier with which that 
               individual is associated.  Such exception shall be in 
               writing and shall be attached to the bidding documents.
 
          6.   When it appears impractical to obtain competition, or 
               when substitutes are not acceptable, a full explanation 
               covering the reasons for such restrictions is required 
               and should be included with the requisition.  Such 
               explanations may include:   
 
               a.   Repair or replacement parts.
 
               b.   As supplementary components of the same 
                    manufacturer.
 
               c.   As necessary to meet physical design or quality
                    requirements.
 
               d.   To satisfy delivery requirements.
 
               e.   Single source of supply.
 
               f.   Special equipment not now manufactured or 
                    available.
 
     B.   Bidding Procedures
 
          1.   The Purchasing Agent 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 award of contracts are in 
               compliance with the requirements of the Utah Procurement 
               Code and college regulations.
 
          2.   Public notice of invitations to bid shall be given a 
               reasonable time (generally 10 working days) prior to 
               the date for opening of bids.  Such notice shall 
               include publication in a newspaper of general 
               circulation.
 
          3.   Bids shall be opened publicly in the presence of one 
               or more witnesses at the time and place designated in 
               the invitation for bids.  All bidding documents shall 
               be affixed to the referenced requisition, filed in the 
               Purchasing Department, and shall be available for 
               public inspection.
 
          4.   Correction or withdrawal of inadvertently erroneous 
               bids prior to the date for opening of bids shall be 
               allowed provided requests for correction or withdrawal 
               shall be received at the Purchasing Department prior 
               to the date and time for opening of bids and provided 
               such requests are in writing and clearly labeled.
 
          5.   Correction or withdrawal of inadvertently erroneous 
               bids after the opening of the bids, based on such bid 
               mistakes, cannot be made except by authorization of 
               the Vice President for Administration or designee.  
               Requests for such action must be made in writing 
               accompanied by full documentation of the facts leading
               to the presentation of the erroneous bid.  The 
               decision to permit the correction or withdrawal of 
               a bid, or to cancel an award or contract based on 
               an alleged bid mistake shall be in writing, with a 
               statement of reasons that takes into consideration 
               the written evaluation and recommendation of the 
               Purchasing Agent.
 
               After bid-opening no changes in bid prices or other 
               provisions of bids prejudicial to the interest of 
               the college or fair competition will be permitted.
 
          6.   When it is considered impractical to prepare 
               initially a purchase description to support an 
               award based on price, an invitation for bids may 
               be issued requesting the submission of unpriced 
               offers to be followed by an invitation for bids 
               limited to those bidders whose offers have been 
               qualified under the criteria set forth in the     
               first solicitation.
 
          7.   An invitation for bids, a request for proposals, or 
               other solicitation may be cancelled, or any or all 
               bids or proposals may be rejected, in whole or in 
               part under the following conditions:
    
               a.   When the need for items as requested on the bid, 
                    proposal or other solicitation no longer exists.
 
               b.   When a bid or bids are received after the 
                    specified due date and/or time.
 
               c.   When it is in the best interests of the college 
                    whether for budgetary reasons or other good and 
                    sufficient reasons to terminate the entire 
                    transaction.
 
               d.   When a bid is not responsive to the requirements 
                    of the specification.
 
               e.   When a bid proposes an unacceptable alternate item.
 
     C.   Requests for Proposals
 
          1.   If the Purchasing Agent determines in writing, with the 
               approval of the Vice President for Administration or 
               designee, that the use of competitive sealed bids for 
               a particular procurement contract or for particular 
               types of recurring procurement contracts is either not 
               practicable or not advantageous to the college, a 
               contract within the scope of such determination may
               be entered into by competitive sealed proposals.
 
          2.   The Purchasing Agent is responsible for the preparation,
               issuance, giving of notice, opening, registering, 
               evaluating, negotiating, and awarding of contracts 
               pursuant to requests for proposals when the use of 
               request for proposals is authorized; provided that 
               all such proceedings shall be in conformity with the 
               Utah Procurement Code and, in order to assure maximum
               practicable competition, shall be subject to the 
               applicable time limitations and other procedures 
               specified above relating to competitive bidding.
    
          3.   Award shall be made to the responsible offeror whose 
               proposal is determined in writing to be the most 
               advantageous to the college taking into consideration 
               price and the evaluation factors set forth in the 
               request for proposals.  No other factors or criteria 
               shall be used in the evaluation.  The contract file 
               shall be used in the evaluation.  The contract file 
               shall contain the basis on which the award is made.
 
     D.   Pre-qualification
 
          1.   When determined to be necessary or appropriate by 
               the Purchasing Department prospective suppliers may 
               be pre-qualified for particular types of supplies, 
               services, and construction.  Solicitation mailing 
               lists of potential contractors shall include but 
               shall not be limited to pre-qualified suppliers.
 
     E.   Contractual Terms
 
          1.   Any contractual terms permitted by law may be used 
               for college procurement purposes, as the best 
               interests of the college may require, except that 
               the use of cost-plus-a-percentage of cost contract 
               is prohibited.
 
          2.   The Purchasing Agent is responsible for assuring 
               compliance with procedural requirements of the 
               Utah Procurement Code applicable to the terms 
               and provisions of procurement contracts including
               requirements that specified determinations be made 
               as a condition precedent to the inclusion or 
               modification of specified contractual provisions 
               (see Utah Code Annotated 63-56-32, 63-56-40) or 
               the use of change orders (See Utah Code Annotated 
               63-56-41).
 
          3.   When the best interests of the College so require, 
               the Purchasing Agent may include in college 
               procurement contracts any or all contract clauses, 
               so far as relevant, that are authorized by the 
               Utah Procurement Code (Utah Code Annotated 63-56-40 
               to 63-56-41) with respect to adjustments in price, 
               time of performance, scope of contract work, variations 
               between estimated and actual quantities, site 
               conditions, remedies, and other contract provisions.
 
          4.   The Purchasing Department shall develop, modify, and 
               maintain a file of standard contract clauses to be 
               used in college procurement contracts pursuant to 
               paragraph 3 above, and such clauses shall be deemed 
               incorporated herein by reference.  The Purchasing 
               Agent may modify any such clause for inclusion in any
               particular contract upon written determination that 
               such variation will promote the interests of the
               college or encourage fair and open competition provided 
               that notice of any such material variation must be 
               given in invitation to bid or request for proposals.
 
     F.   Procurement of Construction Work
 
          1.   Construction contracts will be entered into with 
               responsible licensed contractors subject to the 
               provisions of the Utah Procurement Code.  See Utah 
               Code Annotated 63-56-36 to 63-56-39.  For the purpose 
               of this provision the term "construction" has
               the same meaning as in the Utah Procurement Code, Utah 
               Code Annotated 65-56-5(4) and includes remodeling, 
               renovation, and landscaping.
 
          2.   Construction and remodeling contracts having an 
               estimated cost of $20,000 or less will be awarded 
               when requested by the Facilities Division on a standard 
               requisition form accompanied by a copy of the 
               architectural services job estimate and two (2) written 
               proposals obtained from eligible contractors.  One
               written proposal and the job estimate will satisfy this
               requirement when a written statement by the director of
               Facilities or his designee accompanies the request setting 
               forth special circumstances justifying the proposed 
               contract upon that basis.
 
          3.   Bid Security
 
               a.   Bid security in amount equal to at least 5% of 
                    the amount of the bid shall be required for all 
                    competitive sealed bidding for construction contracts 
                    with an estimated cost of $50,000 or more, and for 
                    any other contracts where such bid security is deemed 
                    essential by the Purchasing Agent.  Bid security 
                    shall be a bond provided by a surety company authorized 
                    to do business in this state, the equivalent in cash, 
                    or any other form satisfactory to the college and 
                    consistent with the Utah Procurement Code.
 
               b.   When a bidder fails to comply with the requirement 
                    for bid security set forth in the invitation for bids 
                    the bid shall be rejected unless the Purchasing Agent 
                    determines in writing that the failure to comply with 
                    the security requirements is non-substantial.
 
          4.   Performance and Payment Bonding
 
               a.   When a construction contract is awarded for an 
                    amount exceeding $50,000 and performance and payment 
                    bonding is stipulated in the bid solicitation, 
                    performance, and payment bonds, or other evidence 
                    satisfactory to the college must be delivered to the 
                    college and shall be binding on the parties upon the 
                    execution of the contract subject to the provisions 
                    of the Utah Procurement Code. See Utah Code Annotated 
                    63-56-39.
 
               b.   The form of the performance and payment bonds shall be
                    substantially the same as provided in rules and 
                    regulations applicable to construction contracts 
                    awarded by the Division of Facilities Construction 
                    and Management.
 
               c.   Performance and payment bonds will ordinarily not be
                    required for construction contracts of $50,000 or 
                    less.  However, to promote the best interest of the 
                    college the Purchasing Agent may require performance 
                    and payment bonds on such small contracts or may 
                    waive the requirement for such bonds on contracts 
                    over $50,000, providing the successful bidder through 
                    past performance has proven to be honest and reliable.
 
               d.   When a bidder fails to comply with the requirement 
                    of a performance or payment bond the bid shall be
                    rejected unless the Purchasing Agent determines in
                    writing that such bonding is deemed unnecessary for 
                    the protection of Salt Lake Community College.
 
     G.   Architect-Engineering Services
 
          1.   For contracts costing $20,000 or less Section 9.2 Small
               Purchases and Expedited Procurement shall apply.
 
          2.   For contracts costing over $20,000 but less than $50,000 
               for architect-engineer services negotiation is on the 
               basis of demonstrated competence and qualification for 
               the type of services required at fair and reasonable 
               prices. 
 
               This paragraph does not affect the authority of and does 
               not apply to procedures undertaken by the college to obtain 
               the services of architects or engineers in the capacity 
               of employees.  
        
          3.   In the procurement of architect-engineer services the 
               Facilities Director shall encourage firms engaged in 
               the lawful practice of their profession to submit annually 
               a statement of qualifications and performance data 
               responsive to published criteria approved by the director.  
               A selection committee for architect-engineer services 
               contracts consisting of the direction of Facilities and 
               the Purchasing Agent shall evaluate current statements 
               of qualifications and performance data on file together 
               with those that may be submitted by other firms in response 
               to the announcement of a proposed contract.  The selection 
               committee shall where feasible consider not less than
               three firms, and shall select therefrom, based upon the
               established criteria, not less than three of the firms 
               deemed to be the most highly qualified to provide the 
               services required.
 
          4.   The Director of Facilities shall negotiate a contract 
               with a qualified firm at compensation which the selection 
               committee determines to be fair and reasonable to the 
               college after taking into account the estimated value, 
               scope, complexity, and professional nature of the services 
               to be rendered.  Should the Director of Facilities be 
               unable to agree to a satisfactory contract with the firm 
               first selected, at a price determined to be fair and 
               reasonable to the college, discussions with that firm 
               shall be formally terminated and discussions shall then be
               undertaken with a second qualified firm.  Failing accord 
               with the second firm, discussion shall be formally 
               terminated and discussions shall then be undertaken with 
               a third qualified firm.  Should agreement not be reached 
               or should the college be unable to award a contract at a 
               fair and reasonable price with any of the selected firms, 
               the Director of Facilities, upon recommendation to the 
               committee, shall undertake discussions with additional 
               firms until an agreement is reached.
 
          5.   The Purchasing Department shall award the contract to 
               the selected firm on the basis of 1, 2, 3, and 4 above.
 
 
 
For More Information, Contact: 
Nancy Sanchez 
Director of Risk Management
(801) 957-4041
E-mail:  nancy.sanchez@slcc.edu
 
http://www.slcc.edu
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