Formal Competitive Sealed Bids - Procedure 018

1. PURPOSE

   To establish uniform procedures for procuring goods, services, and leases in which City funds are expended.

    

2. SCOPE:

   This procedure applies to all purchases exceeding $15,000.00.

    

3. GENERAL:

    

   1. The underlying philosophy of the formal bid process is to obtain maximum competition from a much broader group of potential bidders. Formal bids require advertising in a newspaper of general circulation in the Central Florida area and notification to all vendors who have expressed an interest in the specific commodity or service. Because of this, the formal bid process is longer than other bidding processes.

      The formal bidding process is considerably more detailed and complex. The processing time from preparation of the legal advertisement to award of bid is approximately four (4) to six (6) weeks.

       

   2. The formal bidding requirement applies to the procurement of all goods and services, excluding:

       

      1. Professional services as defined in Section 287.055 Florida Statues, known as the Consultants Competitive Negotiation Act (CCNA).

          

      2. Other Professional Services

          

4. RESPONSIBILITY:

   Formal bids are to be processed and published by the Procurement Division with assistance from using agencies, when necessary.

5. PROCEDURES:
   1. Future Formal Bid/Proposal Notification

      To assist the Procurement Division in scheduling its bid calendar, it is recommended that departments review their proposed budgets during the last quarter of each fiscal year to identify goods and services requiring formal bids. A Future Formal Bid/Proposal Notification Form (Exhibit 18-A) should be completed for each and forwarded to the Procurement Division as soon as possible.

       

   2. Technical Specifications

       

      1. Specifications should define the level of performance required, not a specific brand name. Specifications can be in the form of a written description, performance requirement, drawings, blueprints, industry standards, commercial designations, sample or other descriptive references.

          

      2. The preparation of specifications is the joint responsibility of the Procurement Division and the using department/division. In some cases, an outside source of expertise may be contacted for assistance. Prior to writing the specifications for the product or equipment needed, market research should be done to determine potential suppliers. The Procurement Division reserves the right to alter or revise specifications, if necessary, to allow open competition without affecting quality or performance.

          

      3. To assist in preparing specifications, refer to the following guidelines

          

         1. Be as clear and concise as possible.
         2. Use simple non-technical language whenever possible.
         3. Specify only minimum requirements.
         4. Specifications should be written to enhance competition (i.e., avoiding the use of brand names that restrict competition).
         5. Describe the requirement completely, but allow enough flexibility for vendors to suggest cost saving improvements or substitutes.
         6. Specifications should be capable of quantifiable evaluation and should state the method of testing.
         7. Specifications should be reasonable in their tolerances and fair to the sellers.
         8. Specifications will be evaluated continuously to see if they need updating due to changes in technology, etc.

             

      4. Using department should provide a hard copy and diskette (preferably in current word processing software format used City-wide) of the final approved technical specifications to the Procurement Division by the date indicated on the Future Formal Bid/Proposal Notification Form. Please notify the Procurement Division if you are not able to meet the date indicated on the form.

          

   3. Legal Advertisement

       

      1. The legal advertisement is prepared by the Procurement Division and shall appear two (2) times in the legal advertising section of a newspaper with general circulation in the Central Florida area. The first advertisement date should be 21 calendar days prior to the scheduled bid due date; however, ten (10) days is the minimum advertising period.

          

      2. In the event of an emergency, the requesting department shall provide a written request to the Procurement Division that the City waive the requirement for public notice. The Procurement Division will forward this request to the City Manager for approval, who will notify the City Commission at the next scheduled Commission meeting of such action.

          

   4. Invitation to Bid

       

      1. The Procurement Division shall prepare documents for the Invitation To Bid (ITB).

          

      2. The ITB generally consists of the following:

          

         1. Table of Contents

            Listing of all sections included in the ITB.

             

         2. Legal Advertisement

            Includes a general description of the goods/services to be purchased; where and how the bid documents may be secured; and the date, time, and place the bid is due.

             

         3. ITB Letter from the Procurement Division

            Letter from the Procurement Division, on behalf of the City, inviting the bidder to submit a bid.

             

         4. Bidding Instructions, Terms and Conditions

            Instructions on how to submit and prepare a bid and the contractual terms and conditions that are generally applicable to all bids.

             

         5. General Specifications

            General requirements that are common, but with minor changes, as they apply to the particular goods/services being requested in the bid including contract term, bid pricing information, ordering instructions, etc.

             

         6. Insurance Requirements Specifications

            Insurance requirements as determined and/or approved by the City’s Risk Manager.

             

         7. Technical Specifications

            Clear and concise description of goods/services requested.

             

         8. Proposal Bid Form (PBF)

            Form on which the bidder enters his bid price and acknowledges, by signature, that he understands and agrees to the terms, conditions, and specifications detailed in the bid.

             

         9. List of References Form

            Form provided for the bidder to submit references.

             

         10. "No Bid" Response Form

             Bidders should complete this form if they elect not to submit a bid. A vendor who fails to submit a bid or a "No Bid" three times is subject to removal from the City’s official vendors list.

              

      3. The ITB may also include the following:

          

         1. Instructions to Bidders

            Additional instructions to bidders that are generally related to underground utility work, building construction, or maintenance projects.

             

         2. Schedule of Prices

            Used if there are many items being called for in the bid. Bidder enters bid price on this form then transfers the group prices and/or total price to the PBF.

             

         3. Bid Bond

            A written agreement or check by which a third party guarantees that a bidder will accept a contract as bid, if it is awarded.

             

         4. Contract

            The offer (ITB) and the acceptance (submission of a bid) are two elements of a contract. However, if deemed necessary, a separate document related to the goods/services being bid is included as part of the bid document and becomes part of the binding force.

             

         5. Payment and Performance Bond

            A contract of guaranty, executed subsequent to award by a successful bidder to protect the City from loss due to the bidder’s failure to pay suppliers or sub-contractors or the inability to complete the contract as agreed. Generally, required for underground utility work, building construction or maintenance projects that exceed $25,000.00.

             

         6. Release of Lien

            Evidence that the supplier or sub-contractor has been paid in full by the contractor. Generally required for underground utility work, building construction or maintenance projects that exceed $25,000.00.

             

         7. Maintenance Bond

            A guarantee executed upon completion of the project to protect the City and assure that the contractor will make repairs that are related to the project. Generally required for underground utility work, building construction or maintenance projects that exceed $25,000.00.

             

         8. Attachments

            Any additional information that is helpful and related to the bid.

             

         9. Drawings and Plans

            Related to the project and usually approved by a registered architect or engineer. Generally required for large underground utility work, building construction or maintenance projects

             

             

   5. Notice of Bid

       

      1. The Procurement Division shall distribute a Notification of Bid (NOB) to those bidders whose names appear on the official vendors list maintained by the Procurement Division.

          

      2. The Procurement Division may also distribute this notification to vendors listed in publications, catalogs, previous vendors who have supplied the goods/services being requested and to vendors suggested by the using department.

          

   6. Distribution of Documents

      The Procurement Division is the only party authorized to distribute the ITB documents to bidders or other interested parties. Bidders or other interested parties, must call or visit the Procurement Division to receive an ITB package. This is necessary to assure that the official and most current version of the ITB package is distributed and that the Procurement Division has all the necessary information recorded on the Bid Distribution List in the event that an addendum must be issued.

       

   7. Pre-Bid Conference (if necessary)

      A meeting held with prospective bidders prior to the bid due date to discuss the technical specifics of the project and to allow bidders to ask questions related to the project. The meeting can be non-mandatory or mandatory. However, due to the potential of eliminating and reducing competition, mandatory conferences should only be considered if the project/service is extremely complex in nature.

       

   8. Vendors Questions or Concerns

      Inquiries, whether technical or general, should be directed to the Procurement Division and must be in writing. Bidders must not contact the requesting department directly unless explicitly authorized by the Procurement Division.

       

   9. Addenda (if necessary)

      Some inquiries made concerning the bids will be addressed in the form of an addendum. The addendum will be mailed no less than five (5) calendar days (or faxed or express mailed if less than 24 hours) prior to the bid due date and time to all parties listed on the Bid Distribution List.

       

   10. Receive/Open Bids

        

       1. Bids must be enclosed in a sealed envelope, as instructed in the ITB, and received in the Procurement Division by the due date and time specified in the ITB. It is the bidders’ responsibility to allow for any delays such as: post office delays, weather, traffic, parking, etc. and to assure that the bid is properly addressed and delivered to the Procurement Division.

           

       2. Bids must be received and officially recorded in the Procurement Division ONLY. Bids must be received before the official due date and time. The Procurement Division will record the date and time the bid is received. The time of the clock in the Procurement Division prevails. Bids received after the specified due date and time will be rejected and returned to the sender unopened.

           

       3. Immediately following the bid due date and time, a public bid opening will take place. The total base bids (as tabulated by each bidder) will be read aloud. Once the bids have been opened, they become public record and may be examined in accordance with the Florida Sunshine Law.

           

   11. Bid Tabulation

        

       1. After the bid opening, the Procurement Division shall verify the bid amounts, if applicable. The bid amounts may be different than announced at the bid opening due to errors made by bidders.

           

       2. A tabulation of the bid should be available for public inspection within 48 hours of the bid opening.

           

       3. The Procurement Division will distribute copies of the bid tabulation to all bidders who submitted a bid.

           

   12. Bid Evaluation

        

       1. The City reserves the right to reject any or all bids.

           

       2. The City may accept any item or group of items on any bid, unless the bidder qualifies his bid by specific limitation.

           

       3. The City reserves the right to waive minor technicalities. Technicalities that shall not be considered minor include, but may not be limited to the following:

           

          1. Failure to sign the PBF, Bid Form or failure to provide some other binding signature that indicates the bidders’ intent to honor the bid as submitted.

              

          2. Failure to provide a bid bond as required.

              

          3. Failure to deliver bid by the posted due date and time.

              

       4. Bids shall be evaluated based on the criteria set forth in the ITB. Those criteria shall be objectively measurable such as discounts, transportation costs and total or life cycle costs, etc. The ITB shall set forth the evaluation criteria to be utilized. No criteria may be used in bid evaluations that are not set forth in the ITB.

           

       5. The bid shall be awarded to the lowest, responsible and responsive bidder. In addition to the evaluation criteria, the following factors may be considered in determining the lowest, responsible and responsive bid:

           

          1. Ability and skill of the bidder to perform.

              

          2. Ability to deliver in the specified time frame.

              

          3. Quality of performance.

              

       6. Personal preference must not be used when making a recommendation. Thorough documentation of reasons is needed when awarding a bid, especially, if it is not the lowest bidder.

           

       7. If only one bid is received, a bid may still be awarded. However, care must be taken to make sure the bid received is fair and reasonable.

           

       8. In accordance with Section 287.087, Florida Statutes, preference shall be given to businesses with drug-free workplace programs when receiving tie bids.

           

       9. The Procurement Division shall evaluate the bids to determine conformance to the general requirements of the bid. The Procurement Division will then forward copies of the bids to the requesting department for their evaluation. After evaluation of the technical specifications, the requesting department shall submit to the Procurement Division a memo explaining their recommendation for award. The Department Director, or designee, should sign this memo.

           

   13. Award Recommendation

        

       1. The Procurement Division reviews the bid evaluation memo.

           

       2. If no further information is required, the Procurement Division approves the award recommendation and forwards it to the City Commission for final approval.

           

   14. Intent to Award

       The Procurement Division attempts to notify, by mail or fax, all bidders who submitted a bid of the award recommendation.

        

   15. Bid Award Protests

       Receive and respond to vendors’ concerns or questions regarding the recommendation for award in accordance with Procedure Number 021.

        

   16. Pre-Contract/Purchasing Order Processing

       Notice to the recommended bidder to provide paperwork required to start contract/purchase order processing

        

   17. Award Recommendation

       Upon approval by City Commission, the City Clerk Department forwards, to the Procurement Division, a copy of the City Commission Agenda indicating approval or denial of award

        

   18. Notice of Award

       After approval of the bid award, the Procurement Division attempts to notify, by mail or fax, all bidders who submitted a bid.

        

   19. Contract/Purchase Order Processing

       The Procurement Division continues to monitor the status of all paperwork required to process a contract and/or purchase order. Paperwork required includes, but is not limited to, formal contract documents, Certificates of Insurance, and Payment and Performance Bonds.

   20. Purchase Order

       After approval of the award recommendation and upon receipt of all required paperwork, a purchase order will be issued.