The competitive proposal method of procurement is normally conducted with more than one source submitting an offer or proposal. Either a fixed price or cost reimbursement type contract is awarded. This method of procurement is generally used when conditions are not appropriate for the use of sealed bids (i.e. when descriptions of experience, education, expertise, availability of services, etc, are necessary for evaluation).
If this procurement method is used the following requirements apply:
- Requests for proposals will be publicized.
- All evaluation factors will be identified and included along with their relative importance in the RFP. If scores are based on a uniform scale (i.e. 1-10, or 1-100), it is best to define in advance levels of compliance, skills, or proximity to the ideal that each step of the scale represents. (i.e a bachelor’s degree is worth 25 points, a master’s degree is worth 50 points, and a doctorate is worth 100 points)
- Proposals will be solicited from an adequate number of qualified sources.
- Departments must have a written method in place for conducting technical evaluations of the proposals received and for selecting awardees. This documentation must be submitted to the master file for inclusion.
- Awards will be made to the responsible firm whose proposal is most advantageous to the grantee’s program with price and other factors considered. Other factors may include labor rates, specifications, labor hours, and delivery schedule. Documentation of the award justification should clearly identify key determination factors.