Demolition/Abatement Constracts (Folders 1-2)

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Chapter 4: Methods of Selection http:/hv~vw~.fta.dot.go~-~frailibran•-admin'I3YPman'sect 40.htm The solicitation of offers places you in the position of controlling the competitive process. You, rather than the supplier, decide whether to accept or reject the offers. A technical exception to this competitive model occurs in some micropurchases and small purchases when, based on catalogues or other supplier information, you issue a purchase order (or similar document) without receiving a direct offer. In this case you are technically making the affer,' and the supplier is in a position to accept (usually by performing) or reject (usually by notice to you). A solicitation does not bind your agency to purchase the goods or services solicited, although it may create an implied contract of fair dealing with your suppliers.? Although you will want to treat suppliers as partners and with respect for the purposes of long run competition and cost-effective business relations, many agencies make clear in their solicitations that they reserve the right to reject all offers, i.e., that they are merely soliciting offers and that the solicitation does not create any rights in suppliers. The price quotations, bids, or proposals submitted by suppliers should be firm offers to your agency to supply the goods or services upon the material terms in your solicitation. In sealed bidding, there is generally no further modification of material terms: your agency either accepts one of the offers or rejects all bids. In the other procurement methods, you may request or receive additional offers before you accept one. Although FTA Circular 4220.1D provides you broad choice and discretion, state laws and local policy often require that you use sealed bids in certain procurements and that you use competitive proposals in others. Based on state law and your own practice, you may find the method of procurement is largely determined by the type of services or goods you are procuring.3 If the procurement is too large for micro-purchase or small purchase proeedures, you will generally invite sealed bids for selection primarily based on price, or request proposais which will be evaluated according to additional criteria before a selection is made. Under certain restrict~d circumstances, you may solicit a non-competitive proposal from a sole source. Purchases under coritracts with sister states or local agencies may also meet the Federal requirements.4 If the legal and policy requirements leave you with more than one available procurement method, your choice among these methods will depend largely on: • the time and expense required of you and your suppliers for the respective methods, and • the likelihood of getting the best buy for your customers. When you accept an offer, you establish a contract. 4.1 MICRO-PURCHASES UIREMENT § 9.a, a new provision added to the Cir~ular with the issuance of FTA Circular 4220.1D (effective April 15, 1996), authorizes the use of micro-purchases as a method of procur~ement, when appropriate. If used, the following apply: l. Micro-purchases are defined as those purchases under $2,500. 2. Micro-purchases may be made without obtaining competitive quotations if the grantee determines that the price to be paid is fair and reasonable. 3 of45 OL/10/97 l3:09:19