PURPOSE: This rule prescribes procedures for soliciting and receiving bids and for awarding contracts.

1. (1) When the procurement is estimated to be less than twenty-five thousand dollars ($25,000), an informal method of solicitation may be utilized. Informal methods of procurement may include Request for Quotation (RFQ), telephone quotes, etc.

   1. (A) The division will establish a target date and time for submission of informal bids.
   2. (B) The division may proceed with the evaluation and award anytime after the expiration of the target date and time. Bids received after the target date and time but before the award of a contract may be included in the evaluation at the discretion of the division.

2. (2) When the procurement is estimated to be twenty-five thousand dollars ($25,000) or more, a formal method of solicitation must be utilized. Formal competitive bidding may be accomplished by utilizing an Invitation for Bid (IFB).

   1. (A) Formal bids should be received in the division in a sealed format by the time set for the opening of bids.
   2. (B) Formal bids received after the time set for the opening of bids shall be considered late and will not be opened.
   3. (C) Bids received in response to an IFB shall be available for public review after the bid opening during regular working hours.
   4. (D) When the division decides that all bids are unacceptable and circumstances do not permit a rebid, negotiations may be conducted with only those bidders who submitted bids in response to the IFB. No additional bidders may be solicited. Upon determination that negotiations will be conducted, the bids and related documents will be closed to public viewing in accordance with section 610.021, RSMo.

3. (3) When the procurement requires the utilization of competitive negotiation, the formal Request for Proposal (RFP) solicitation method should be utilized.

   1. (A) Formal proposals should be received in the division in a sealed format by the time set for the opening of the proposals.
   2. (B) Formal proposals received after the time set for the opening of bids shall be considered late and will not be opened.
   3. (C) Proposals received in response to an RFP shall not be available for public review until after a contract is executed or all proposals are rejected.
   4. (D) Offerors who obtain information concerning a competitor’s proposal may be disqualified for consideration for a contract award.

4. (4) When the supplies meet the criteria delineated in section 34.044, RSMo, the division may elect to utilize the Single Feasible Source procurement method. The following delineates additional guidelines and examples to determine satisfaction of the criteria:

   1. (A) The following guidelines may be utilized to determine if supplies may be purchased as a single feasible source due to being proprietary:

      1. 1. The parts are required to maintain

validity of a warranty;

1. 2. Additions to a system must be com-

patible with original equipment;

1. 3. Only one (1) type of computer soft-

ware exists for a specific application; or

1. 4. Factory authorized maintenance must

be utilized in order to maintain validity of a warranty;

1. 5. The materials are copyrighted and are

only available from the publisher or a single distributor; and

1. 6. The services of a particular provider

are unique, e.g. entertainers, authors, etc.;

1. (B) If past procurement activity indicates that only one (1) bid has been submitted in a particular region, a single feasible source procurement may be authorized. In these situations the division will monitor the market for developing competition; and

2. (C) The following guidelines will be utilized to determine if supplies may be purchased as a single feasible source due to being available at a discount for a limited period of time:

   1. 1. The discounted price must be com-

pared to a price established through a reasonable market analysis; and

1. 2. The discounted price should normal-

ly be at least ten percent (10%) less than the current contract or other comparable price. A discount of less than ten percent (10%) may be acceptable under appropriate market conditions. The discount should be compared to a price which, where feasible, should be no more than twelve (12) months old.

1. (5) When conditions meet the criteria outlined in section 34.045, RSMo, emergency procurement procedures may be utilized. The requirement for formal competitive bids or proposals may be waived. However, the emergency procurement should be made with as much informal bidding as practicable. Emergency procedures should only be utilized to purchase those supplies which are necessary to alleviate the emergency.

2. (6) When circumstances dictate that it would be most advantageous, the state may purchase supplies from or in cooperation with another governmental entity.

   1. (A) Supplies purchased from another governmental entity should be limited to those supplies which are provided directly by such entity.
   2. (B) Supplies purchased in cooperation with another governmental entity may be purchased from contracts established in accordance with that entity’s laws and regulations.

3. (7) Regardless of the solicitation method utilized, the following procedures shall apply:

   1. (A) The division shall develop standardized terms and conditions to be included with the solicitation documents;
   2. (B) The division may request bids/proposals for new equipment employing the trade-in of used equipment. The solicitation document may request pricing with a trade-in and without a trade-in;

   3. (C) The division may require bid/proposal security and/or performance security.

      1. 1. The acceptable form and amount of

the bid/proposal security shall be stipulated in the solicitation document.

1. 2. The bid/proposal securities of unsuc-

cessful vendors may be returned after the finalization of the award. If the successful vendor fails to accept the contract, the amount of the bid/proposal security shall be forfeited to the state.

1. 3. If a performance security is required,

the bid/proposal security of the successful vendor may be returned after the receipt of the performance security. The acceptable form and amount of the performance security will be stipulated in the solicitation document. If the contractor fails to submit the performance security as required, the bid/proposal security shall be forfeited to the state and the contract shall be void;

1. (D) In the event that the division receives a container which is not identifiable as a specific bid/proposal, an authorized person within the division may open the container to determine the contents. If the contents are determined to be a bid/proposal, the container will be resealed and the solicitation number, opening date, and time will be noted on the outside. The container will then be filed until the official time for opening;
2. (E) After the bid/proposal opening, a vendor may be permitted to withdraw a bid/proposal prior to award at the sole discretion of the division if there is a verifiable error in the bid/proposal and enforcement of the bid would impose an unconscionable hardship on the vendor. This withdrawal will be considered only after receipt of a written request and supporting documentation from the vendor. Withdrawal shall be the vendor’s sole remedy for an error other than an obvious clerical error. Withdrawal of a bid/proposal may result in forfeiture of the bid/proposal security;
3. (F) For bids/proposals with a value of twenty-five thousand dollars ($25,000) or more, bidders/offerors who can certify that goods or commodities to be provided in accordance with the contract are manufactured or produced in the United States or imported in accordance with a qualifying treaty, law, agreement, or regulation shall be entitled to a ten percent (10%) preference over bidders whose products do not qualify. Failure to provide a certification may result in forfeiture of any preference;
4. (G) Bids/proposals submitted by qualified organizations for the blind and sheltered workshops shall be entitled to five (5) bonus points in addition to other points awarded during the evaluation process. Qualified bidders should notify the division of their status upon submittal of their bid/proposal;
5. (H) In addition to cost, subjective judgment may be utilized in the evaluation of bids/proposals provided that the method is published in the solicitation document;
6. (I) The division may request samples for evaluation purposes. Any samples requested must be provided free of charge. Samples which are not destroyed by testing will be returned at the vendor’s expense if return of the samples is stipulated in the vendor’s bid/proposal. Samples submitted by a vendor who receives the award may be kept for the duration of the contract for comparison with shipments received;
7. (J) During the course of a solicitation, vendors may be required to demonstrate proposed products. Such demonstration shall be coordinated by the division;
8. (K) When bids are equal in all respects, any preferences shall be applied in accordance with applicable statute. If all such bidders or none qualify for the statutory preference, the contract shall be awarded by a formal drawing of lot. Whenever practical, the drawing will be held in the presence of the vendors who are considered equal. If this is not practical, the drawing will be witnessed by a disinterested person;
9. (L) The division may make multiple awards from a single solicitation document when such awards are in the best interest of the state;
10. (M) After an award is made, the solicitation file or facsimile thereof shall be made available to the public for inspection at any time during regular working hours;
11. (N) Neither a contractor nor a state agency shall assign any interest in a contract to another party without written permission from the division;
12. (O) Unless otherwise specified in the contract, substitution of items, personnel or services shall require the approval of the division prior to shipment or performance; and
13. (P) Employees of the division, evaluators, and any other persons involved in procurement decisions shall not accept for personal benefit gifts, meals, trips or any other thing of significant value or of a monetary advantage, directly or indirectly, from a vendor.

1. (8) Contracts awarded as the result of a competitive solicitation may be amended when such an amendment is in the best interest of the state and does not significantly alter the original intent or scope of the contract.

AUTHORITY: section 34.050, RSMo Supp. 1997.* Original rule filed Oct. 15, 1992, effective June 7, 1993. Rescinded and readopted: Filed Oct. 20, 1997, effective May 30, 1998. *Original authority 1939, amended 1945, 1993, 1995.