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 the lowest in price.

Note: Sealed bids are evaluated by the procuring department for compliance with bid specifications, responsible and responsive bidders, verification of pricing, fund availability, etc.

  1. In order for sealed bidding to be feasible, the following conditions should be present:
    1. A complete, adequate, and realistic specification or purchase description is available;
    2. Two or more responsible bidders are willing and able to compete effectively for the business;
    3. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.
    4. No discussion with bidders is needed.
  2. If this procurement method is used, the following requirements apply:
    1.  The invitation for bids will be publicly advertised and bids shall be solicited from an  adequate number of known suppliers, providing them sufficient time to prepare bids prior
      to the date set for opening the bids;
    2. The invitation for bids, which will include any specifications and pertinent attachments, shall define the items or services sought in order for the bidder to properly respond;
    3. All bids will be publicly opened at the time and place prescribed in the invitation for bids;
    4. The Bid Summary Sheet, Bid Checklist, and Bid Cost Factors Forms will be placed in the master file;
    5. A firm fixed-price contract award will be made in writing to the lowest responsive and responsible bidder. When specified in bidding documents, factors such as discounts, transportation costs, and life cycle costs shall be considered in determining which bid is lowest;
  3. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
  4. The procuring department may reject any and/or all bids, if there is a sound documented business reason. The procuring department rejecting lower bids than the bid being accepted
    for award must provide a detailed written Determination of Findings outlining the reasons for rejection for inclusion in the master file.
  5. The sealed bid method is the preferred method for procuring construction if the conditions in paragraph (1) above apply. In determining which proposals is most advantageous, grantees
    may award (if consistent with State law) to the proposer whose proposals offer the greatest business value to the Agency based upon an analysis of a trade off of qualitative technical factors and price/cost to derive which proposal represents the “best value” to the Procuring Agency. If the grantee elects to use the best value selection method as the basis for award, however, the solicitation must contain language which establishes that an award will be made on a “best value” basis.