Procurement Decision Matrix

Invitation For Bid (IFB)

Sealed Bid (Formal Advertising)

[FTA C 4220.1F Ch. VI, 3.c]

The procedures used must comply with State and local law as well as with Federal requirements. The following guidance is based on the requirements of the Common Grant Rule for governmental recipients, supplemented by FTA policies that address the needs of FTA recipients.

Definition: Generally accepted procurement method in which bids are publicly solicited, and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is lowest in price.

Basic Requirement:

A preference for the sealed bids procurement method for acquiring property, construction, and other services. Sealed bid procurements should be used when the following circumstances are present:

  • Precise Specifications. A complete, adequate, precise, and realistic specification or purchase description is available.
  • Adequate Sources. Two or more responsible bidders are willing and able to compete effectively for the business.
  • Fixed Price Contract. The procurement generally lends itself to a firm fixed price contract.
  • Price Determinative. The successful bidder can be selected on the basis of price and those price-related factors listed in the solicitation including, but not limited to, transportation costs, life cycle costs, and discounts expected to be taken. Apart from responsibility determinations, contractor selection may not be determined on the basis of other factors whose costs cannot be measured at the time of award.
  • Discussions Unnecessary. Discussions with one or more bidders after bids have been submitted are expected to be unnecessary as award of the contract will be made based on price and price-related factors alone. This contrasts with Competitive Proposal procedures in which discussions with individual offerors are expected to be necessary and may take place at any time after receipt of proposals. However, a pre-bid conference with prospective bidders before bids have been received can be useful.

Procedures:

  • Must obtain price or rate quotations from an adequate number (at least three) of qualified (and potential) sources.

☐ Independent Cost Estimate

… must make independent cost estimates before receiving bids or proposals. [FTA C 4220.1F Ch. VI, 6.]

  • The Invitation For Bids is publicly advertised.
  • Bids are solicited from an adequate number of know suppliers.
  • The Invitation For Bids, including any specifications and pertinent attachments, describes the property or services sought in sufficient detail that a prospective bidder will be able to submit a proper bid.

☐ Clear, Accurate, and Complete Specification

The solicitation and the contract awarded thereunder must include a clear and accurate description of the

recipient’s technical requirements for the property or services to be acquired in a manner that provides for full and open competition. [FTA C 4220.1F, Ch. VI, 2.a.]

☐ Non-Collusion Declaration

  • Bidders are allowed sufficient time to prepare bids before the date of bid opening.
  • Greater than 14 days
  • All bids are publicly opened at the time and place prescribed in the Invitation For Bids.
  • Include time, date, and place of bid opening in Solicitation
  • Complete a sign-in form
  • (Prior to Award) Must preform a cost analysis in connection with every procurement action, including contract modifications. [FTA C 4220.1f, Ch. VI, 6]

☐ Cost Analysis breaks down the total price into its components, looking at the supplier’s

costs to determine the profit margin contained in that price. Cost Analysis is used if it is determined that competition is inadequate or price is inconsistent with the expected range established by ICE.

☐Price Analysis looks at the supplier’s price in comparison to other market prices. Price

Analysis is used if it is determined that competition was adequate and price was within the expected range established by the ICE.

  • A firm fixed price contract is usually awarded in writing to the lowest responsive and responsible bidder, but a fixed prices incentive contract or inclusion of an economic price adjustment provision can sometimes be appropriate. When specified in the bidding documents, factors such as transportation costs and life cycle costs affect the determination of the lowest bid; payment discounts are used to determine the low bid only when prior experience those such discounts are typically taken.

☐ Responsiveness Checklist

  • Any or all bids may be rejected if there is a sound, documented business reason.

Additional Considerations:

  • Restrictive of Competition: Imposing unreasonable business requirements on firms in order for them to qualify to do business. Includes areas of Arbitrary Action, Brand Name Restrictions (“brand name or equal” acceptable), and Geographic Preferences. Unnecessary business requirements and excessive bonding requirements. FTA does have minimum bonding requirements for construction projects.

☐ Organizational Conflict of Interest (if applicable)

☐ Written Procurement Selection Procedures [FTA C 4220.1F, Ch. III, 3.d (1)(c)]

Solicitations shall incorporate a clear and accurate description of the technical requirements for the material,

product, or service to be procured; identify all requirements that offerors must fulfill and all other factors to

be used in evaluating bids.

☐ Award to Responsible Contractor [FTA C 4220.1F, Ch. VI, 8.(b)]

Shall make awards only to responsible contractors possessing the ability to perform successfully under the

terms and conditions of a proposed procurement. Determined after receiving bids and before making contract

award. Areas of responsibility determination; integrity and ethics, licensing and taxes, debarment and

suspension, financial resources, affirmative action and DBE, production capability, technical capacity,

performance record. [FTA C 4220.1F Ch. IV, 2(2)(b)]

  • Evaluations [FTA C 4220.1F, Ch. VI. 7]

When evaluating bids submitted, FTA expects the recipient to consider all evaluation factors specified in its solicitation documents, and evaluated the bids only on the evaluation factors included in those solicitation documents. The recipient may not modify its evaluation factors after the bids have been submitted without re-opening the solicitation.

  • Evaluators. In addition to evaluators with experience in technical or public policy matters related to the procurement, other evaluators may also include auditors and financial experts to the extent that the recipient determines would be necessary or helpful. A recipient lacking qualified personnel within its organization may contract for the evaluation services it needs. The procurement standards of FTA C 4220.1F will apply to those contracts and to those contractors selected to perform procurement evaluation functions on behalf of the recipient.
  • Evaluation of Options [FTA C 4220.1F, Ch. VI, 7.b.]

Grantees must evaluate bids for any option quantities or periods contained in a solicitation if it intends to

exercise those options after the contract is awarded.

•If do not review/evaluate, exercise at a later point is a sole source procurement.

•Run numbers for the entire option period

•Does not matter if options are covered in contracts.

  • Exercise of Options [FTA C 4220.1F, Ch.V, 7.a(1)]

An option may not be exercised unless it has determined that the option price is better than prices available in the market, or that when it intends to exercise the option, the option is more advantageous.

•Conduct a market analysis to ensure best pricing.

  • Sound and Complete Agreement [FTA C 4220.1F, Ch III, 3.(b)]

Must include:

•Termination for convenience and default clauses

•Payment provisions

•Period of Performance

•Disputes Clause

  • Grantees are required to maintain and make available records detailing the history of each procurement. [FTA C 4220.1F, Ch. III, 3.d (1)]
  • Davis-Bacon prevailing wage requirements, however, will apply to construction contracts exceeding $2,000.
  • Prevailing Wage requirements apply to publicly funded construction contract and require payrolls and audits.

•Include clauses in standard boilerplate of contract in the solicitation – allows suppliers to bid based on complying, some clauses implement the certifications provided by the contractor

•For construction work, the IFB/Sealed Bid is the contract, once accepted by the Agency

•Don’t allow suppliers to take exceptions to required FTA clauses.

☐ Ensure Davis-Bacon and Copeland Anti-Kickback Clauses are used for all construction over $2,000.

  • FTA does have minimum bonding requirements for construction projects.

☐ Clauses (In Specification and Contract)

☐ DBE Language in Specifications and full packet as an Exhibit/Attachment

Invitation For Bids Procurement Decision Matrix November,2012Page 1