The Department will utilize the following purchase procedures when contracting for purchases of equipment or repairs of equipment used in the construction and maintenance of highways as described in Code of Ala. 1975, §41-4-126(k); road building materials used for transportation infrastructure including dirt, gravel, stone, slag, or borrow materials, in natural state or processed by crushing, grading, or screening processes as described in Code of Ala. 1975,  §41-4-126(m); and supplies and services for the maintenance and operation of highway infrastructure and right-of-way as described in Code of Ala. 1975, §41-4-126(n). The purchasing method selected for procurement under this section should be the method that best meets the needs of the Department while promoting fairness, transparency, and good stewardship of State resources.

1. (1) When contracting for purchases of equipment or repairs of equipment, the Director, or his/her designee, may select equipment or repair facilities from the nearest or most cost-effective seller, parts supplier, or mechanic.
2. (2) When contracting for road building materials, road building materials may be purchased from private landowners or commercial providers from the nearest or most cost-effective source available for the particular application.

3. (3) Transportation Invitations to Bid (TITB).

   1. (a) Except as otherwise provided in this chapter, contracts will be awarded by competitive sealed bidding.
   2. (b) An invitation to bid will be issued and will include a purchase description and all contractual terms and conditions applicable to the procurement.
   3. (c) Adequate public notice of the invitation to bid will be given a reasonable time prior to the date set forth in the invitation for the opening of bids.
   4. (d) Bids will be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation to bid. The amount of each bid, the name of each bidder, and any other information required will be recorded. The record and each bid will be open to public inspection to the extent the bid does not contain any confidential or proprietary information or otherwise excluded from disclosure under an open records request.

   5. (e) Bids will be unconditionally accepted without alteration or correction, except as authorized in this section. Bids will be evaluated based on the requirements set forth in the invitation to bid, which may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Any criteria that will affect the bid price and will be considered in evaluation for award will be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. The invitation to bid will set forth the evaluation criteria to be used. No criteria may be used in bid evaluations that are not set forth in the invitation to bid.

      1. 2. After a bid has been opened, with the exception of price negotiations with the lowest responsible bidder, no changes in bid prices or other provisions of bids prejudicial to the interest of the state or fair competition will be permitted.

         (g)1. Unless there is a compelling reason to reject bids, notice of intent to award to the lowest responsive and responsible bidder whose bid meets the requirements set forth in the invitation to bid will be given by posting the notice on the Department's website or at a location specified in the invitation to bid which the Department determines to provide the greatest visibility and access to prospective bidders. Before posting the notice of intent to award, the Director, or his/her designee, may negotiate with the lowest responsive and responsible bidder to lower the bid price within the scope of the invitation to bid.

      2. 2. The Director, or his/her designee, may award multiple purchase contracts resulting from a single invitation to bid where the specifications of the items of supplies or services intended to be purchased by a requisitioning agency or agencies are determined, in whole or in part, by technical compatibility and operational requirements. In order to make multiple awards under this rule, the Department will include in the invitation to bid a notice that multiple awards may be made and the specific technical compatibility or operational requirements necessitating multiple awards. Multiple awards of purchase contracts with unique technical compatibility or operational specifications will be made to the lowest responsible bidder complying with the unique technical compatibility or operational specifications.

      (f)1. When a bid is submitted that contains an error, the Director, or his/her designee, may authorize the correction or withdrawal of the bid or may cancel the award of the contract.

   6. (h) When it is considered impractical by the Director, or his/her designee, to initially prepare a purchase description to support an award based on price, an invitation to bid may be issued requesting the submission of unpriced offers to be followed by an invitation to bid limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.

      1. 2. After receipt of the responses to the request for qualifications from prospective bidders, all qualified bidders, as determined by the Director, or his/her designee, will have an opportunity to bid. The determination regarding which bidders are qualified is not subject to review.

      (i)1. Before soliciting bids, the Director, or his/her designee, may authorize issuance of a request for qualifications from prospective bidders. The request will contain, at a minimum, a description of the scope of work to be solicited by the invitation for bids, the deadline for submission of information, and how prospective bidders may apply for consideration. The request will require information concerning the prospective bidders' product specifications, qualifications, experience, and ability to perform the requirements of the contract. Adequate public notice of the request for qualifications will be given in the manner provided in subsection (c).

4. (4) Transportation Request for Proposals (TRFP). A contract for supplies or services may be entered into by competitive sealed proposals when the Director, or his/her designee, determines that the use of competitive sealed bidding is either not practicable or not advantageous to the state. Contracts for goods and services entered into by competitive sealed proposal will follow the requirements proscribed in Alabama Administrative Code §450-12-2(3) for procurement of other professional services by competitive sealed proposals.
5. (5) Transportation Small Purchases (TS P). Any procurement not exceeding the small purchase amount as defined in Alabama Administrative Code §355-4-3-.04 may be made in accordance with small purchase procedures as prescribed under that chapter. A procurement may not be artificially divided so as to constitute a small purchase under this rule. Small purchases require the solicitation of at least three (3) quotes from any entity known for supplying the needed supply or service, and the Department may select the returned quote for the purchase that will be of best value for the Department.
6. (6) Transportation Sole Source (TSS). A contract may be awarded for a supply or service without competition when the Director, or his/her designee, determines in writing that there is only one source for the required supply or service. Sole source contracts may not exceed one year unless the Director determines in writing that there continues to be only one source for the required supply or service.
7. (7) Transportation Special Procurements (TSP). Notwithstanding any other provision of this chapter, the Director, or his/her designee, may initiate a procurement when the Director, or his/her designee, determines that an unusual or unique situation exists that makes the application of all requirements of competitive sealed bidding or competitive sealed proposals contrary to the public interest. Any special procurement under this section shall be made with as much competition as is practicable under the circumstances. A written determination of the basis for the procurement and for the selection of the particular contractor shall be included by the Director, or his/her designee, in the contract file.
8. (8) Transportation Emergency Purchases (TEP). Notwithstanding any other provision of this chapter, the Department may make emergency procurements of supplies and services when there is a threat to public health, welfare, or safety under emergency conditions, as determined by the Director, or his/her designee. Emergency procurements made under this section will be made with as much competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor will be included in the contract file. Emergency purchases require the solicitation of at least three (3) quotes from any entity known for supplying the needed supply or service, and the Department may select the returned quote for the purchase that will be of best value for the Department. If the emergency situation creates an immediate and serious need for supplies or services that cannot be met through normal procurement methods and the lack of which would seriously threaten (a) the functioning of the Department, (b) the preservation or protection of state right-of-way, or (c) the health or safety of any person, then the Department may take action to immediately address the emergency without solicitation of quotes.
9. (9) Any agreement entered into pursuant to this section where payment is made on a cost-plus-fixed fee basis is not a cost-plus contract as described in Code of Ala. 1975, §41-4-143 and is thus not prohibited by that provision.

Author: William F. Patty, Chief Counsel

Statutory Authority: Code of Ala. 1975, §§23-1-40, 23-1-48, 23-1-50, 23-1-50.1, 23-1-51, 23-1-53, 23-1-59, 23-1-62, 41-4-124, 41-4-126.

History: New Rule: Published November 30, 2022, effective January 14, 2023.