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Chapter 4: Methods of Selection <br />• sealed bids where <br />http:/iwww.fta.dot.gov/fta/library/adminBppman/sect .40.htm <br />o you have a complete, adequate, and realistic specification or purchase description, <br />o two or more responsible bidders are willing and able to compete, <br />o the procurement lends itself to a firm fixed price cantract and the selection can be made <br />primarily on the basis of price, and <br />o no discussion with bidders is needed after receipt of offers; <br />• competitive proposals; or <br />• noncompetitive proposals (sole source) procurement onlv if you can justify not soliciting <br />additional competition in the manner explicitly defined in FTA Circular 4420.1D § 9f. <br />State law usually restricts the method of <br />more <br />than these Federal <br />DEFINITION <br />Solicitation - A purchasing entity's request for offers, including a telephone request for price quotations, <br />an invitation for bids, or a request for proposals. <br />Offer - A promise to provide goods or services according to specified terms and conditions in exchange <br />for material compensation. <br />Acceptance - Agreement to the terms af an offer. In most jurisdictions, "award" by a public agency can <br />constitute acceptance, and may create an enforceable contract. <br />DISCUSSION <br />Based on your procurement plans and the speeification deveioped with your castomer, you witl <br />generalty initiate the procurement by soliciting offers. Depending on the requirements of the <br />method of procurement you choose, you may soticit ot~'ers in a tekphone calt or in many other <br />forms ranging up to multi-volume requests for proposals. When you receive offers (whether <br />quotations, bids, or proposats), you may accept one, reject them all, or (unless you are using the <br />seated bidding method) request addition~l of~'ers. Regardless of the procurement method, when <br />you accept an ot~'er, you create a binding contract according to the terms of the offer. <br />Best Practices <br />When you and your customer have specified the requirement, you will generaliy solicit offers from <br />suppliers. The solicitation ranges from a telephone caU to make a reasonable price determination (in the <br />case of a micro-purchase), to a lengthy request for proposals in the case of a eompetitive proposal. The <br />terms in your solicitation of offers aze substantially determined by the method of selection you will use. <br />Because your contract will ultimately be based on the terms of the offers, the selection of a method of <br />procurement and the terms in your solicitation of offers are important and you will have the most success <br />if they are based on well-tested practices and documents. <br />The solicitation of offers places you in the position of controlling the eompetitive process. You, rather <br />2 of 45 <br />O1/10/97 13:09:18 <br />