its part of cost and bidding for project management courses.

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COMPETETIVE BIDDING
CHAPTER 5

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Key Questions
1. What are the requirements for competitive
bidding?
2. What are the stages in the bidding process?
3. What are the various bid structures available
to the owner/gov’t?
4. What are the requirements/practices for the
selection of Contracts for Special Services?

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Bid Limits
 Public work projects that meet or
exceed $15,000 involving labor; and
 Projects where materials and/or
equipment exceed $69,000.
Formal bids are required in all cases
where supplies, equipment, and services
exceed the State mandate under Public
Contract Code. Bids required for:

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Bid Process: Pre-Bid Stage
Preparation is Critical !
1. Identify need for materials or services;
2. Identify that a Budget has been developed
and approved and that funds are available;
3. Determine scope of work;
4. Develop specifications to meet scope of
work;
5. Request Board approval to go out for bid;

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Bid Process: Bid Stage
6. When appropriate Utilize OCDE general bid
documents(The OECD is an acronym for the Organisation
for Economic Cooperation and Development. Essentially,
the OECD is a united front for countries to share about
their common eco-social problems, as well as collaborate
on finding solutions.)
7. Include specifications;
8. Establish bid opening date and time;
9. Advertise for two weeks in a journal of general publication.

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Specifications – Finding the Balance
Require high caliber contractors
 Proven ability to perform public works or specific work?
 Ability to respond to district’s needs
 Equipment and labor force sufficient for size of job
But……encourage and Include all capable contractors
 Keep contact information on all contractors that have expressed interest
 Encourage contractors to bid
 Answer Request For Information (RFI) expediently and clearly

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Bid Stage: Pre Selection
1. Open bids at the place, time, and date
advertised (open to the public);
2. Review documents to determine the
bidder who is qualified, see below;
3. Tabulate bid prices submitted;

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Bid Stage: Pre Selection
4. Confirm contractor licenses
5. Board Approval
6. Agreement signed, notice to proceed
and purchase order issued.

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Bid Stage: Pre Selection
 Bids submitted must be sealed
 Bids must be received at the designated
place and time
 Bid openings are open to all interested
parties
 Bids must meet definition of “responsive”

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Bid Stage: Selection Criteria
Items submitted by bidders (with bid)
 Bid bond(A bid bond is a debt secured by a bidder
for a construction job, or similar type of bid-based
selection process, for the purpose of providing a
guarantee to the project owner that the bidder will
take on the job if selected.)
 Bid form
 Designation of subcontractors
 Information required of bidder
 Non-collusion affidavit, notarized

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Bid Structures
General Contractor Bid
 Typically used for construction projects
 Architectural plan and specification issued
to bidders
 Mandatory pre-bid conference and/or job
walk conducted
 Sub-contractors listed

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Bid Structures
Unit Price Bids
 Used when the volume of work or
materials required is not known
 Bidders provide a per-hour rate for
specific trade, apprentice, and laborer
 Bidders provide prices based on a
specific unit of measure

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Bid Structures
Unit Price Bids
 Possible work that may occur during the
year-used to secure price in advance
 Used for –
 Emergency repairs – Montano Plumbing
 Supplement labor force – PRB Construction
 Specialized work – Hardy & Harper Paving
 Materials – California Electrical
DistributorsSTOPPED HERE

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Bid Structures
Extensions of Bids
 Labor bids may total five years; One year
contract may be extended for 4 additional
years.
 Material and supplies bids may total four
years; One year contract maybe be extended
for 3 additional years.

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Bid Structures
Extension of Bids
 May be in the best interest of the owner
 Contractor knowledge and experience
 Prices are secured, 10% cap on
increases
 Extensions may be good business
decision
 Efficient use of staff time

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Bid Structures
Extension of Bids
 Is Competition restricted?
 Is there a potential for better price?
 Does an extension limit the owner?
 New and different processes
 New and better contractors
 A fresh approach to services
 New contractors moved into the field
 Speaks to the need to balance extensions with new bids

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Bid Structures
Piggyback Bids
 Equipment and materials only
 Saves time and money
 Economies of scale
 (Piggy-back applies to contractual
agreements in law, more specifically
shareholder selling rights. ... Generally,
a piggyback clause applies only to a
majority shareholder or someone with a
large portion of the shares.)

18.  Piggyback (Piggyback Cooperativ
es) is a form of intergovernmental,
cooperative purchasing in which an
entity will be extended the same.
pricing and terms of
a contract entered into by another
entity generally.
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Special Services Contracts:
Guidelines and Procedures
Government creates an exception to
competitive bidding laws
Special services and advice:
1. financial
2. economic
3. accounting
4. engineering
5. legal
6. textbooks, library books, etc.

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Special Services Contracts:
Guidelines and Procedures
 The government can solicit under a
Requests for Proposals (RFP) format,
 Or, The government can solicit under a
Request for Qualification (RFQ) format.
 RFP’s include pricing, schedule and
terms, RFQ’s ask for only qualifications
 Or, The government can look for
providers of services by asking for
simple quotes.

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Special Services Contracts:
RFP’s & RFQ’s
The RFP or RFQ Process
 Government solicits for goods or services
 Government spells out desired outcome
 Proposals provide solutions to desired outcome
 Award based on criteria that best meets desired
outcome

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Special Services Contracts:
What’s included?
Proposals often include:
 A Not to Exceed (NTE) price
 Terms, monthly, annual, renewals
 Insurance coverage
 Names of reps working with us
 All Agreements approved by Board
 Purchase orders issued
 May include the entire amount
 Budgetary Cash flow may suggest incremental

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INDIVIDUAL ASSIGNMENT
a)Briefly discuss competitive bidding process in
Somaliland Public procurement
b)How can we improve the selection process?
NB:Submit on 9th August 2019

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Thank You !!