Policies and Procedures

Solicitation of Bids, Proposals and the Award of Procurement Contracts


Chapter: 2

Section: 10.06

Computer Index Code: C2S10.06

Origination Date: 5/22/84

Inst. Council Approval Date: 10/10/84

Subject: Chapter 2 BUSINESS--VP FOR BUSINESS
Section 10.06 SOLICITATION OF BIDS, PROPOSALS AND THE AWARD OF PROCUREMENT CONTRACTS

  1. PURPOSE

    To outline general bidding requirements for College purchases.

  2. 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

  3. POLICY

    1. 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."
    2. 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)
    3. 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.
    4. 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.
    5. 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.
    6. Bid tabulations are referred back to the department for recommendations when bids require further review.
  4. PROCEDURES

    1. 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:
        1. Repair or replacement parts.
        2. As supplementary components of the same manufacturer.
        3. As necessary to meet physical design or quality requirements.
        4. To satisfy delivery requirements.
        5. Single source of supply.
        6. Special equipment not now manufactured or available.
    2. 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:

        1. When the need for items as requested on the bid, proposal or other solicitation no longer exists.
        2. When a bid or bids are received after the specified due date and/or time.
        3. 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.
        4. When a bid is not responsive to the requirements of the specification.
        5. When a bid proposes an unacceptable alternate item.
    3. 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.
    4. 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.
    5. 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.
    6. 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

        1. 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.
        2. 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

        1. 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.
        2. 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.
        3. 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.
        4. 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.
    7. 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.

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