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
To outline general bidding requirements for College purchases.
UtahProcurement Code, 1953 Code Annotated, 63-56-1 et. seq. Utah
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
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
Code Annotated 63-1-38.1). Projects for which Utah
costs are less than the threshold will be approved by
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.
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
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
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
c. As necessary to meet physical design or quality
d. To satisfy delivery requirements.
e. Single source of supply.
f. Special equipment not now manufactured or
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
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
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
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
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
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.
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
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
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
UtahProcurement Code ( Code Annotated 63-56-40 Utah
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
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,
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
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
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
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
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
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:
Director of Risk Management