The University of Memphis

Competitive Bidding

BFGuide

• Bond
• Competitive Bidding
• Evaluation of Bid
• Responsible
• Responsive
• Request for Proposal (RFP) or Proposal
• Request for Quotation (RFQ) or Bid
• Sealed Bid
• Small, Minority, and Woman-Owned Business

• Requirements for Competitive Bidding
• Procurement of Goods, Materials and Supplies/Services
• Purchases from Small, Minority, and Woman-Owned Businesses
• Information on Requests for Quotations and Requests for Proposals
• Minimum Bid Notice and Number of Bids
• Bid Withdrawal, Bid Revision, and Bid Rejection
• Acceptance of Bids/No Rights Created
• Tie Bids
• Protested Bids
• Evaluation of Bids or Proposals
• Bid Calendar

• Protest Bond

• Bid Calendar
• University's Purchasing Policy
• TBR Minimum General Bid Conditions (Attachment A)
• TBR Guideline G-030 Contracts and Agreements
• TBR Policy 4:01:04:00 Solicitation and Acceptance of Gifts
• TBR Policy 4:02:10:00 Purchasing Policy and Procedures
• TBR Guideline B-095
• Tennessee Code Annotated (T.C.A.)

• Procurement Services Staff

A competitive process in which proposals are solicited from possible suppliers, with a source or sources of supply established for a specified period of time at agreed upon unit pricing for goods and/or services

A competitive process soliciting bids from possible suppliers for a one-time procurement of product(s) and/or service(s)

Small business – A business which is independently owned and operated, in accordance with the provisions of T.C.A § 12-3-802, and is not dominant in its field of operation.

Minority-owned business – A continuing, independent, for profit business which performs a commercially useful function and is at least 51% owned and controlled by one or more minority individuals who are impeded from normal entry into the economic mainstream because of past practices of discrimination based on race or ethnic background in accordance with the provisions of T.C.A § 12-3-802.

Woman-owned business – A women owned business that is a continuing, independent, for profit business which performs a commercially useful function, and is at least 51% owned and controlled by one or more women; or, in the case of any publicly owned business, at least 51% of the stock of which is owned and controlled by one or more women and whose management and daily business operations are under the control of one or more women in accordance with the provisions of T.C.A § 12-3-802.

All purchases shall be based upon the principle of competitive bidding except as herein provided. Required documentation related to competitive bidding shall be routed through the University's Procurement Services Department, prior to the purchase, to ensure compliance with applicable policies and guidelines. Unless original signatures are otherwise required (e.g., easements, deeds and other real property documents), electronic procurement is permitted for formal procurements when the required rules and procedures are developed in accordance with TBR Guideline B-095 and TCA §12-3-704, which provides that state agencies shall not require small and minority owned businesses to receive or respond to invitations to bid/request for quotations or request for proposals, or other solicitations electronically. Whenever possible, all specifications for materials, supplies, equipment and services shall be worded or designed so as to permit open and competitive bidding for the supplying of the article, commodities or services to which they apply. For all Requests for Proposals (RFP) and Requests for Quotations (RFQ), exceeding $100,000, written certification from the author or committee that the specifications, to the best of their knowledge, are not proprietary shall be documented in the bid file. It is the responsibility of the procurement officer to ensure all competitive bidding is considered fair and open in a bid process. It will be considered open and competitive bidding by utilizing one of the following purchasing techniques:

1. Request for Quotations (RFQ) – a competitive process soliciting bids from possible suppliers for a one-time procurement of product(s) and/or service(s).
   
   1. Specifications based on brand names and product numbers - reference to brand names, trade names, model numbers or other descriptions peculiar to specific brand products is made to establish a required level of quality and functional capabilities; it is not intended to exclude other products of that level. Comparable products of other manufacturers will be considered if proof of comparability is contained in the bid. Vendors are required to notify the Director of Procurement Services whenever specifications are perceived to be fair and open. All suggestions or objections shall be made in writing and received by the Director of Procurement Services at least three (3) working days prior to the bid opening. It shall be the responsibility of the vendors, including vendors whose product is referenced, to furnish with the bid such specifications, catalog pages, brochures or other data as will provide an adequate basis for determining the quality and functional capabilities of the product offered. Failure to provide this data may be considered valid justification for rejection of a bid;
   2. Specifications based on standard specifications;
   3. Specifications based on qualified products list; or
   4. Specifications based on catalogs, price lists, or price schedules. For any contract that results from an RFQ, the University is not permitted to change the scope of the service(s) once a contract is awarded.
      
2. Request for Proposals (RFP) - a competitive process in which bids are solicited from possible suppliers, with a source or sources of supply established for a specified period of time at agreed upon unit pricing for goods and/or services
   
   1. Request for proposal - Under $25,000, bid with cost & technical proposal submitted as one document (under $25,000 does not require sealed bids; can be written, telephone or electronic);
   2. Request for proposal - $25,000 and over, sealed bid with separate sealed technical and cost proposals which must be submitted at the same time. Compliance with the mandatory RFP requirements shall be determined by the RFP Coordinator in consultation with the Chief Business Officer or designee.  Evaluation of technical offers shall be determined by an evaluation team selected by the president or designee. Members of the evaluation team should be adequate and appropriate to the scope and nature of the RFP. Procurement Services representatives shall review the proposals to ensure procurement procedures were followed and shall offer guidance to the evaluation team but shall not serve on the evaluation team and shall not score technical proposals received, except in instances where the RFP is directly related to a good/service needed by the Procurement Services Department. All technical offers shall be evaluated based on the criteria of the RFP and other information learned during the technical evaluation process. Any technical offer submitted which contains any pricing information of any type shall be rejected. Technical offers not deemed acceptable will not proceed to the pricing phase. Cost proposals shall not be opened if the associated technical proposal has been deemed non-responsive and is rejected by the University. Technical and cost proposals shall not be made public until the inspection period following the evaluation of the cost proposals; or
   3. Additional Procedures for Multi-step sealed bidding – the use of a multi-step sealed bidding process is required in the bidding process for the procurement of products and/or services when it is not practical to prepare initially definitive specifications.
   
   Multi-step sealed bidding is a two-phase process consisting of a technical first phase composed of one or more steps in which proposers submit unpriced technical offers to be evaluated and a second phase in which those proposers whose technical offers are determined to be responsive during the first phase have their price proposals considered. For any contract that results from an RFP, University is not permitted to change the scope of the service(s) once a contract is awarded.
   
   
3. Procurement Under the Authority of Another Entity's Bid Process - Purchase of materials or services, for which any TBR or UT institution or the State of Tennessee Department of General Services, Purchasing Division, has awarded a contract to a vendor through the competitive bidding process may be made without adherence to the Minimum Notice and Number of Bids section, provided the vendor meets the bid specifications. Note: the competitive bidding process of another entity (except the State Purchasing Division) must have specified that other institutions would be permitted to purchase under the bid.  The University is strongly encouraged to include language in RFPs/RFQs asking if the bid is open to other TBR and UT institutions. This Section does not preclude institutions from utilizing a Statewide Contract (SWC) as a bid in accordance with the competitive bidding process outlined in the Minimum Notice and Number of Bids section, if so desired.
4. Procurement of State Manufactured Articles and Services - The University is required to purchase items (goods) and services from other State agencies, e.g., Department of Correction, Blind Services, Tennessee Rehabilitative Initiative in Correction (TRICOR), Community Rehabilitation Agencies (CMRA)/TRUST in Tennessee, whenever such items or services are available therefore and meet the desired conditions and standards. (General Services Rule 0690-3-1-.01(7d)). In addition, for personal, professional and consultant service contracts only, no competitive process is required when the contractor is a State agency, a political subdivision of the State, any other public entity in Tennessee, or an entity of the federal government. The non-competitive negotiation process in this Guideline may be used for such contracts.
5. Procurement Under Contracts with Group Purchasing Organizations - The University is permitted to make purchases of goods and services under a contract with a group purchasing program as provided in TCA 49-7-127. The statute specifically permits such purchases when the price for goods or services under a group purchasing program is lower than the price available on a state contract. A state contract is defined in this section as a TBR institution contract, a TBR system contract, a UT contract, or a General Services contract. Comparison pricing must have been obtained within twelve (12) months of the date of comparison.
6. Gifts -Gifts do not require a procurement process subject to this procedure and TBR Purchasing Policy and Procedures. See TBR Policy 4:01:04:00 Solicitation and Acceptance of Gifts and TBR G-030 Section 3 - For the purposes of this guideline, a gift to the University shall be defined as a voluntary transfer of goods or services to the University made gratuitously and without consideration. Essential elements of a gift are: (a) Capacity of the donor of the gift; (b) Intention of donor to make a gift; (c) Completed delivery of the gift to or for the University, and (d) Acceptance of the gift by the University. Nothing in this guideline shall be construed to mean that the institution must accept any gift.

1. Goods - Goods, materials, and supplies (cumulatively called "goods") should be awarded to the lowest responsive and responsible bidder pursuant to a Request for Quotation. In the event a bid is not responsive and/or not responsible, then the bid is to be disqualified.
2. Goods and Services - Certain services or a combination of goods and services may be procured as a "good", based on a Request for Quotation (RFQ)rather than a Request for Proposal (RFP), if the end product is more important than the service that goes toward its production or when the vendor has little discretion in determining its actual content or form. (a) Examples of this type of service may include, but are not limited to: 1) pest control; 2) security services; 3) moving and hauling; 4) refuse collections; 5) charter services; 6) printing services, and 7) maintenance services. (b) Mischaracterization of an item to be procured as a good or service shall not constitute an error in the procurement if the requirements of this guideline are met, but it may be grounds for the University to terminate the procurement process. For competitive procurement of goods, a Request for Quotation is appropriate, and in general, a purchase order may be used to finalize the purchase. For competitive procurement of services, a Request for Proposal is more appropriate, and a purchase order is generally not sufficient to serve as the written contract for the services. For procurement of services which will require TBR Central Office approval, the Request for Proposal format approved by the TBR Central Office shall be used.
3. Services - A contract for personal, professional, or consulting service shall be used when the vendor's discretion or the form of the end product or service is critical to the performance. All purchases of personal, professional, and consultant services should be based, to the maximum extent practicable, on evaluation and consideration of vendor qualifications and cost. Detailed information regarding service contracts is provided in TBR Guideline G-030. A contract for consulting services hereunder which exceeds $25,000 shall not be allowed unless it is determined by the President, in writing, that the services are in fact needed and that they cannot be satisfactorily or economically performed by a State agency. A cover form will be required to be completed by the ordering department, submitted to the University's Purchasing Department, certifying the need for the service(s) and that appropriate consideration has been given to the use of state resources.
4. Outsourcing - The University is encouraged to determine whether some services can be delivered more economically by the private rather than the public sector. The following process is hereby permitted and encouraged: (a) The State's cost of the service may be ascertained and kept confidential as part of the evaluation process. This cost must be finally determined and provided to the Director of Procurement Services or designee, in a sealed envelope prior to bid/proposal due date. (b) The service may be the subject of a RFQ/RFP, as appropriate, which approximately describes the services heretofore provided by the University. (c) The RFQ/RFP may require that if the proposer's/bidder's price exceeds the State's confidential cost, the proposal/bid may be rejected.
5. Monitoring of Services - The University shall have a monitoring plan for all service contracts*, including grants and grant subcontracts, to ensure the following: (a) deliverables are received, (b) financial obligation of the University does not exceed the contract pricing, and (c) services are in compliance with the terms and conditions of the contract.
   *Service contracts shall have the same meaning as provided in Section 3 above (See TBR Guideline G-030). Procurement of goods under this policy shall not require a monitoring plan, but shall comply with TBR and University internal controls and audit procedures.
6. Illegal Immigrants. No person may enter into a contract to supply goods or services to the state or other state entities without first attesting in writing that the person will not knowingly utilize the services of illegal immigrants in the performance of the contract, and will not knowingly utilizing the services of any subcontractor who will utilize the services of illegal immigrants in the performance of the contract. The procedures for implementing this policy and the attestation form are provided in TBR Guideline G-030. Language to be included in bids/proposals is included in Attachment A, Minimum General Bid Conditions.

The University actively solicits bids from small, minority, and women-owned businesses in order to obtain a fair proportion of goods and services from such businesses, whenever possible. Information regarding small, minority and women-owned business solicitations and purchases will be filed with the Governor’s Office of Diversity Business Enterprise and the Department of General Services which consolidates this information into a report to the Legislature.

Requests for Quotations and Requests for Proposals shall specify:

1. the time and place that bids will be received and opened;
2. information describing the purpose of the procurement, technical requirements, bidder qualifications, and any other information considered relevant to the goods or services being acquired;
3. the amount or number of articles or services required;
4. for all RFPs and RFQs exceeding $100,000, in estimated expenditure or revenue, a question/answer period and/or pre-bidders' conference, with all questions and responses forwarded to all prospective bidders (The larger or more complex an RFP is, the more likely a pre-bidders’ conference should be held, and the more likely it may be that two periods of questions and answers may be appropriate;
5. the time of delivery;
6. the amount, if any, of any bid bond or certified checks to accompany the bid/proposal;
7. the amount, if any, of any performance bond which will be required if the vendor is the successful bidder;
8. a declaration of the contract terms and conditions which shall be required by the University;
9. a description of the factors to be considered in evaluating bids/proposals, if applicable;
10. date bid/proposal evaluations will be available for viewing;
11. if applicable, whether other TBR and/or UT institutions may purchase from the contract; and
12. the period of time during which each bidder/proposer will hold its bid open and the period during which the contract awarded will be available to other institutions, if applicable.

RFQs/RFPs may specify any other requirements, conditions, or information in reference to the purchase deemed necessary.

RFQ/RFP files (hard-copy or electronic) shall contain, at a minimum, the following:

1. a copy of the RFQ/RFP issued (including specifications),
2. a list of vendors for solicitation,
3. the date vendors were sent the RFQ/RFP,
4. for RFPs and applicable RFQs, any pre-bid questions/responses or addendums to the RFQ/RFP,
5. for RFPs and applicable RFQs, all documentation relating to the composition of the evaluation team and the evaluation documentation used to make the award,
6. as applicable, any documentation that warrants a re-bid of the RFQ/RFP,
7. any informal bid complaints and the respective responses/actions,
8. as applicable, copies of intent to award letters, and
9. the executed purchase order and/or contract.

The number of bids required and the notice to bidders for solicitation of bids for purchases and revenue contracts shall be as follows:

1. If the estimated amount of the purchase (or revenue) is $25,000 or more, written sealed bids must be solicited from fifteen (15) vendors or the number of vendors on the Vendors/Bid List - whichever is less and to all that request the specific RFQ/RFP. (The Director of Procurement Services or designee must approve the solicitation of less than 15 bids). If the annual estimated amount of the purchase is $100,000 or more, solicitations must be sent in a manner that verifies proof of delivery. An RFQ for goods must be mailed at least fourteen (14) days [ten (10) days when all vendors are local vendors] before the date that the bids are scheduled to be opened. For RFPs and applicable RFQs (for example, those RFQs having requirements in addition to or other than the purchase of goods), a minimum of four (4) to six (6) weeks should be allowed for vendors to adequately prepare a competitive proposal based on the method of RFP or RFQ delivery, bid specifications and pre-bidders' questions/responses. Examples of types of bids which would need to allow at least six (6) weeks include, but are not limited to, banking and other financial services, bookstore and food services, custom software and/or IT system services, advertising management services and any other bid for which the additional time is appropriate. A vendor's general or standing request for notice for all RFQs/RFPs or all RFQs/RFPs of a given type shall not suffice as a request for a specific RFQ/RFP and shall create no obligation on the University.
2. If the estimated amount of the purchase (or revenue) is at least $5,000 but less than $25,000, written, telephone, or electronic bids must be solicited from at least three (3) qualified vendors (with the exception of contracts with group purchasing organizations noted in this guideline). When telephone bids are solicited, a written record of the bidders and amounts bid shall be maintained.

Before bid opening, a vendor may be permitted to withdraw a bid entirely and/or submit a substitute bid. The vendor making such a request must submit suitable identification.

After bid opening, a vendor will be permitted to withdraw a bid only where there is obvious clerical error in the bid such as a misplaced decimal point, or when enforcement of the bid would impose unconscionable hardship due to an error in the bid resulting in a quotation substantially below the other bids received. Withdrawal will be considered only upon written request from the vendor.

In cases of errors in the extension of prices in the bid, the unit price will govern.

Incorrect proposal information – If the University determines that a proposer has provided, for consideration in a contractor selection process or in negotiations, information which the proposer knew or should have known was materially incorrect, the subject proposal may be determined non-responsive, and the proposal may be rejected and the vendor may be removed from the vendor list.

A bid may not be revised after bid opening.

After evaluation is complete and the successful bidder/proposer selected, negotiations may occur which serve to alter the bid/proposal in a way favorable to the University. For example, prices may be reduced, time requirements may be revised, the bid/proposal may be revised to supply omitted contract terms etc. In no event shall negotiations increase the cost or amend the proposal such that the apparent successful proposer no longer offers the best proposal.

Any proposal that restricts the rights of the University or otherwise qualifies or limits the proposal may be considered to be non-responsive, and the proposal may be rejected.

When it becomes necessary to reject all bids, the reason for such rejection must be set out in complete detail and made available to all bidders who submitted a bid.

Action to reject all bids shall be taken only for unreasonably high prices, errors in the RFQ/RFP, cessation of need, unavailability of funds, failure of all proposals to meet technical specifications, lack of competition, a determination that the goods/services can be more economically delivered pursuant to an agreement with another TBR institution or other state agency, or a determination that proceeding with the procurement would be detrimental to the best interests of the University, the reason for which must be documented and approved by the Director of Procurement Services or designee.

If another RFP is to be issued, all prior offers and/or proposals shall remain closed to inspection by the proposers and/or the public until the evaluation of the re-bid is complete.

Notwithstanding any provision contained herein or in any solicitation document, submission of a bid or a proposal shall not create rights, interests or claims of entitlement in any bidder or proposer, including the successful bidder or proposer. Notwithstanding any action or agreement to the contrary, no such right, interest, or claim shall exist unless and until a purchase order has been issued or a contract is fully executed.

For RFPs and applicable RFQs, a notice of intent to award shall be sent to all proposers, containing at a minimum, the content provided by the TBR Central Office.

All bids shall be subject to rejection by the Director of Procurement Services or his or her designee of the University. If awarded, the contract for purchase shall be awarded to the lowest qualified and responsible bidder, taking into consideration quantifiable factors including but not limited to the apparent ability of the bidder to perform the proposed contract, the conformity of the articles or services to the specifications, any discount allowed for prompt payment or for any other reason, transportation charges, and the date of delivery specified in the RFP/RFQ.

A bond for the faithful performance of any contract may be required at the discretion of the University.

A complete written record on all procedures and justifications shall be maintained on each purchasing transaction in order to provide a clear audit trail on the purchase.

Bids must be received in the specified location on or before the date and hour designated for bid opening. All bids received must be date and time stamped to show compliance with the designated opening date and time. Late bids will not be considered in contract award.

All RFQs received shall be publicly opened and examined by a designated University Procurement Services representative at the time and place specified in the RFQ. Whenever multi-step sealed bidding is utilized, bidders shall have no less than five (5) working days after the opening before a purchase order/contract may be awarded.

All RFQs/RFPs conforming to the RFQ/RFP specifications together with the name of the bidder shall be recorded. Only after the completion of evaluation shall the complete procurement files become a matter of public record and open to public inspection.

Each bid should give the full name and business address of the bidder; if the vendor is a corporation, the name shall be stated as it is in the corporate charter. Each bid must be signed in ink by the vendor’s authorized agent. Unsigned bids will be rejected. The person signing the bid must show his title, and if requested by the University, must furnish satisfactory proof of his or her authority to bind his or her company in contract. Bids must be typewritten or in ink; otherwise they may not be considered. However, the University may conduct informal procurement electronically, and if the University requests or permits electronic bidding, no bidder’s signature shall be required. TCA § 12-3-704. Unless original signatures are otherwise required (e.g., easements, deeds and other real property documents), electronic procurement is permitted for formal procurements when the required rules and procedures are developed in accordance with TBR Guideline B-095, and TCA §12-3-704, which provides that state agencies shall not require small and minority owned businesses to receive or respond to request for quotations or request for proposals, or other solicitations electronically. A purchase order, if applicable, will be issued to the firm name appearing on the bid.

When more than one item is specified in the RFQ/RFP, the University may provide in the RFQ/RFP that the University shall have the right to determine the low vendor(s) either on the basis of each individual item, a group of items, or the total of all items.

Alternate bids will not be considered unless specifically called for in the bid.

All material, supplies, and equipment offered and furnished must be new unless the RFQ/RFP specifically permits offers of used, remanufactured, or reconditioned items. RFQs/RFPs which specifically permit offers of used or reconditioned items shall require a warranty; however, the Director of Procurement Services or his or her designee, shall have the authority to waive this requirement.

Goods - A tie bid exists when two or more bidders offer products that meet all specifications, terms and conditions at identical prices, including cash discount offered. In such case, a tie bid will be broken by the following methods, in descending order of preference:

1. Tennessee businesses will be given preference. Tennessee business means a business (TCA 12-4-121(c)(2)): (a) incorporated in this state; (b) that has its principal place of business in this state; or (c) that has an established physical presence in this state.
2. Small, minority and women-owned businesses will be given preference.
3. Award item(s) to vendor who was low bidder on other item(s) being bid per the same requisition.
4. Best delivery
5. By lot or coin toss (properly witnessed and documented)

Personal, Professional and Consultant Services - In the event that a proposal evaluation process results in two or more proposals receiving evaluation scores that tie for the rank of highest score, the University shall request best and final cost proposals from only those proposers with scores that tie. The University may calculate new evaluation scores for the tying proposals by adding the original technical scores to the recalculated cost scores. Should another tie result, the contract shall be awarded by coin toss.

The procedures on Vendor's Right to Protest are available at the following link http://bf.memphis.edu/procurement/protest.php.

1. Departmental Recommendation for Award - Departmental personnel shall be given the opportunity to evaluate bids and make a recommendation for award to the Director of Procurement Services. The following criteria should be used in the evaluation of the bid: (a) ensure that the bidder has quoted in accordance with the terms and conditions of the Request for Quotation (RFQ) or Request for Proposal (RFP). (b) recommendation requires award be made to the lowest qualified and responsible bidder, taking into consideration quantifiable factors including but not limited to the apparent ability of the bidder to perform the proposed contract, the conformity of the articles or services to the specifications, any discount allowed for prompt payment or for any other reason, transportation charges, and the date of delivery specified in the RFQ or RFP. (c) If an award is recommended to other than the low bidder,a full and complete written statement of the reasons shall be prepared as a part of the recommendation for review and approval of the Director of Procurement Services.
2. Award of Order - Recommendations are not considered final until reviewed and approved by the Director of Procurement Services. Disclosure of the award is the responsibility of Procurement Services.

The Bid Calendar is provided as an information tool for interested suppliers to view the University's requests for bids or proposals. While every effort is made to assure accuracy and completeness of information provided, the Official Documents are the Requests for Quotation (RFQ) or Requests for Proposal (RFP)documents as prepared and issued by Procurement Services.

Vendors may contact Procurement Services at 901-678-2265, to obtain copies of a particular RFQ or RFP.

Ordering departments may also find the Bid Calendar useful to obtain information about relevant bid requests. Departmental personnel are invited to attend public bid openings.

http://bf.memphis.edu/procurement/protest-bond.pdf

TBR Minimum General Bid Conditions (Attachment A)

http://bf.memphis.edu/procurement/tbrmingenbid.pdf

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