Demolition/Abatement Constracts (Folders 1-2)

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Chapter 4: Mcthods of SelecGOn http://wwtiv.fta.dot.gov/ftaAibrary/adminBPPman/sect 40.htm procurement tool for you to use. E.g., development of a new information system to serve a unique need woutd probably require a negotiated procurement. Purpos~ Sealed bidding (sometimes called "invitation for bid method" or "formal competition") and competitive proposals (sometimes called "request for proposal method, or "competitive negotiation") are the two principal procurement methods. The sealed bid method is preferred because: • it is a simple process without complex evaluation criteria or repeated requests for and receipt of offers; • it maximizes price competition by basing the selection among responsive, responsible bidders on price alone; and • it is the most easily understoad by suppliers and the public, maximizing public acceptance and minimizing the opportunity for unethical practice. However, it requires a very clear specification since it could result in you not getting what you want, and the successful bidder can use ambiguity in the specification to reduce its costs and increase its profit. Nevertheless, this method is required by many state laws for many major transit procurements. Your customers may not embrace sealed bidding as eagerly. In addition to the burden of specification which often falls on them, they may believe that sealed bidding requires them to set minimums on these parameters just to maximize price competition. Hence, the negative cannotation of "low bid" equipment or services. Most states require, or at least pernut, use of the eompetitive proposal method for professional services. Computer system procurements were often classified as professional services, recognizing the design and software development content which made it difficult to specify computer systems for price competition. Today, software systems often have their own exemptions from competitive bidding requirements. Where it is permissible, there is a$rowing trend to use competitive proposals. An increasing number of states permit competitive proposals for bus procuremertts and the American Public Transit Associatian Standard Bus Procurement Guidetines encourage the use of this method. The competitive proposal method is intended to pernut competition on quality and other factors, as well as on price.26 It is a good practice to become familiar with your state laws and work with counsel to maximize flexibility oFthe procurement process to be used. Best Practices Similarities between the Sealed Bidding and Competitive Proposal Methads of Procurement - The competitive proposal method has many common attributes with the s~ated bidding process: • Like an Invitation for Bids, the Request for Proposals is a written document published to the "world", soliciting the submissian of offers in response to the Request. • The objective is to promote full and open competition. • The terms and conditions of the solicitation and the resulting contmct are spelled out in the Invitation or Request. 10 of 45 O 1/10/97 13:09:26