(A) Definition. For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
MULTI-STEP SEALED BIDDING. A two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the purchasing agency, and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered. It is designed to obtain the benefits of competitive sealed bidding by award of a contract to the lowest responsive, responsible bidder and at the same time obtain the benefits of the competitive sealed proposals procedure through the solicitation of technical offers and the conduct of discussions to arrive at technical offers and terms acceptable to the purchasing agency and suitable for competitive pricing.
(B) Use. The multi-step sealed bidding method will be used when the Purchasing Agent deems it to the advantage of the purchasing agency. Multi-step sealed bidding will thus be used when it is considered desirable.
(1) To invite and evaluate technical offers to determine their acceptability to fulfill the purchase description requirements;
(2) To conduct discussions for the purposes of facilitating understanding of the technical offer and purchase description requirements and, where appropriate, obtain supplemental information, permit amendments of technical offers or amend the purchase description;
(3) To accomplish divisions (B)(1) and (B)(2) above prior to soliciting priced bids; and
(4) To award the contract to the lowest responsive and responsible bidder in accordance with the competitive sealed bidding procedures.
(C) Pre-bid conferences in multi-step sealed bidding. Prior to the submission of unpriced technical offers, a pre-bid conference as contemplated by pre-bid conferences may be conducted by the Purchasing Agent. The Purchasing Agent may also hold a conference of all bidders at any time during the evaluation of the unpriced technical offers.
(D) Procedure for phase one of multi-step sealed bidding.
(1) Form. Multi-step sealed bidding shall be initiated by the issuance of an invitation for bids in the form required by the content of the invitation for bids, except as hereinafter provided. In addition to the requirements set forth above, the multi-step invitation for bids shall state:
(a) Unpriced technical offers are requested;
(b) Whether price bids are to be submitted at the same time as unpriced technical offers; if they are, such price bids shall be submitted in a separate sealed envelope;
(c) 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 technical offers are found acceptable in the first phase;
(d) The criteria to be used in the evaluation of the unpriced technical offers;
(e) The purchasing agency, to the extent the Purchasing Agent finds necessary, may conduct oral or written discussions of the unpriced technical offers;
(f) Bidders may designate those portions of the unpriced technical offers which contain trade secrets or other proprietary data which are to remain confidential; and
(g) The item being procured shall be furnished generally in accordance with the bidder’s technical offer as found to be finally acceptable and shall meet the requirements of the invitation for bids.
(2) Amendments to the invitation for bids. After receipt of unpriced technical offers, amendments to the invitation for bids shall be distributed only to bidders who submitted unpriced technical offers and they shall be allowed to submit new unpriced technical offers or to amend those submitted. If, in the opinion of the Purchasing Agent, a contemplated amendment will significantly change the nature of the procurement, the invitation for bids shall be canceled in accordance with the cancellation of solicitations of these regulations and a new invitation for bid issued.
(3) Receipt and handling of unpriced technical offers. Unpriced technical offers shall not be opened publicly nor be disclosed to unauthorized persons. Bidders may request non-disclosure of trade secrets and other proprietary data identified in writing.
(4) Evaluation of unpriced technical offers. The unpriced technical offers submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the invitation for bids. The unpriced technical offers shall be categorized as:
(a) Acceptable;
(b) Potentially acceptable, that is, reasonably susceptible of being made acceptable; or
(c) Unacceptable. The Purchasing Agent shall record in writing the basis for finding an offer unacceptable and make it part of the procurement file.
(d) The Purchasing Agent may initiate phase two of the procedure if, in the Purchasing Agent’s opinion, there are sufficient acceptable unpriced technical offers to assure effective price competition in the second phase without modification or alteration of the offers. If the Purchasing Agent finds that such is not the case, the Purchasing Agent shall issue an amendment to the invitation for bids or engage in technical discussions as set forth in division (D)(5) below.
(5) Discussion of unpriced technical offers. Discussion of its technical offer may be conducted by the Purchasing Agent with any bidder who submits an acceptable or potentially acceptable technical offer. During the course of such discussions the Purchasing Agent shall not disclose any information derived from one unpriced technical offer to any other bidder. Once discussions are begun, any bidder who has not been notified that its offer has been finally found unacceptable may submit supplemental information modifying or otherwise amending its technical offer at any time until the closing date established by the Purchasing Agent. Such submissions may be made at the request of the Purchasing Agent or upon the bidder’s own initiative.
(6) Notice of unacceptable unpriced technical offer. When the Purchasing Agent determines a bidder’s unpriced technical offer to be unacceptable, such officer shall notify the bidder. Such bidders shall not be afforded an additional opportunity to supplement technical offers.
(E) Mistakes during multi-step sealed bidding.
(1) Mistakes may be corrected or bids may be withdrawn during phase one;
(2) Before unpriced technical offers are considered;
(3) After any discussions have commenced under the procedure for phase one of multi-step sealed bidding, discussion of unpriced technical offers; or
(4) When responding to any amendment of the invitation for bids. Otherwise, mistakes may be corrected or withdrawal permitted in accordance with the mistakes in bids.
(F) Carrying out phase two.
(1) Initiation. Upon the completion of phase one, the Purchasing Agent shall either:
(a) Open price bids submitted in phase one (if price bids were required to be submitted) from bidders whose unpriced technical offers were found to be acceptable; provided, however, that, the offers have remained unchanged and the invitation for bids has not been amended; or
(b) Invite each acceptable bidder to submit a price bid.
(2) Conduct. Phase two is to be conducted as any other competitive sealed bid procurement, except:
(a) As specifically set forth herein; and
(b) No public notice need be given of this invitation to submit.
(Ord. 2020-04, passed 2-18-2020)