Section 1400.2010  Multi-Step Sealed Bidding

a)         Description

Multi-step sealed bidding is a two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced offers to be evaluated by the Treasurer's office, and a second phase in which those bidders whose unpriced offers are determined to be acceptable during the first phase have their price bids considered.

b)         Applicability of Requirements

Except for the variations described in this Section, all the requirements for competitive sealed bidding in Section 1400.2005 apply to multi-step sealed bidding.

c)         Conditions for Use

The multi-step sealed bidding method may be used when it is considered impracticable by the Chief Procurement Officer or Purchasing Officer to initially prepare a specification to support an award based on price.

d)         Procedure for Phase One of Multi-Step Sealed Bidding

1)         Form.  Multi-step sealed bidding must be initiated by the issuance of an Invitation for Bids in the form required for competitive sealed bidding by Section 1400.2005 with the addition of the following information:

A)        that unpriced offers are requested;

B)        whether priced bids are to be submitted at the same time as unpriced offers in a separate sealed envelope;

C)        that it is a multi-step sealed bid procurement, and priced bids will be considered only in the second phase and only from those bidders whose unpriced offers are found acceptable in the first phase;

D)        the criteria to be used in the evaluation of the unpriced offers;

E)         that the Treasurer's office, to the extent the Chief Procurement Officer or Purchasing Officer finds necessary, may conduct oral or written discussions of the unpriced offers; and

F)         that the item being procured must be furnished generally in accordance with the bidder's unpriced offer as found to be finally acceptable and must meet the requirements of the Invitation for Bids.

2)         Amendments to the Invitation for Bids.  After receipt of unpriced offers, amendments to the Invitation for Bids will be distributed only to bidders who submitted unpriced offers, and they will be permitted to submit new unpriced offers or to amend those submitted.  The Invitation for Bids may be cancelled in accordance with Section 1400.2520 and a new Invitation for Bids issued if, in the opinion of the Chief Procurement Officer, a contemplated amendment will significantly change the nature of the procurement.

3)         Receipt and Handling of Unpriced Offers.  Unpriced offers submitted by bidders must be opened in the presence of at least one witness.  The offers must not be disclosed to unauthorized persons.  Bidders may request nondisclosure of trade secrets and other proprietary data identified in writing.

4)         Evaluation of Unpriced Offers.  The unpriced offers submitted by bidders must be evaluated solely in accordance with the criteria in the Invitation for Bids.  The unpriced offers must be initially categorized as:

A)        acceptable;

B)        potentially acceptable; or

C)        unacceptable, in which case the Chief Procurement Officer or Purchasing Officer shall record in writing the basis for finding an offer unacceptable and make it part of the procurement file.

5)         Discussion of Unpriced Offers.  The Chief Procurement Officer must initiate discussion with the vendors of the unpriced offers unless, in the Chief Procurement Officer's opinion, there are sufficient acceptable unpriced offers to assure effective price competition in the second phase without discussions, in which case he or she may initiate phase two of the procedure. The Chief Procurement Officer, or his or her designee, may conduct discussions with any vendor who submits an unpriced offer that is initially categorized as acceptable or potentially acceptable.  During the course of the discussions the Chief Procurement Officer, or his or her designee, must not disclose any information derived from an unpriced offer to any other bidder.  The Chief Procurement Officer may permit any bidder to submit supplemental information amending its offer.

6)         Acceptability of Potentially Acceptable Unpriced Offer.  Prior to phase two, the Chief Procurement Officer or Purchasing Officer shall determine whether the unpriced offers which were initially categorized as potentially acceptable are acceptable or unacceptable.

e)         Procedure for Phase Two of Multi-Step Sealed Bidding

1)         Unless priced bids were submitted at the same time as the unpriced offers, phase two will be conducted by distributing an Invitation for Bids to those bidders whose unpriced offers were ultimately determined to be acceptable during the first phase, requesting priced bids in accordance with the initial or a revised specification.

2)         If priced bids were submitted at the same time as unpriced offers, the priced bids from the acceptable bidders will be opened in phase two.