PURPOSE: This rule defines terms used in this chapter.

1. (1) Award—An action taken by commission on successful purchasing proposals.
2. (2) Bid—An offer to perform a contract for work and labor or to supply materials, goods or services at a specified price; also may include detailed information about services to be furnished.
3. (3) Bidder—A person or entity submitting a solicitation document to department.

4. (4) Bond—A guaranty agreement that contains the promise of a third party to fulfill the bidder’s responsibilities in the event that the bidder is unable or unwilling to fulfill those responsibilities. The department may require the following:

   1. (A) Bid bond—Protects commission against loss due to bidder’s refusal to enter into a contract with commission. May be used as performance security;
   2. (B) Payment bond—Assures commission that persons supplying labor or material in connection with a project will be paid; and
   3. (C) Performance bond—Protects commission against loss due to the inability or refusal of a bidder to perform his/her/its contract.
5. (5) Buyer—A department employee who buys or contracts to buy supplies for the department.
6. (6) Certification—The process in which the bidder swears that the information s/he or it has provided is correct.
7. (7) Commission—The Missouri Highway and Transportation Commission. The entity defined in the provisions of 226.010, RSMo, which has the sole authority to sue and be sued on behalf of the Missouri Highway and Transportation Department.
8. (8) Default—The omission or failure of a bidder to perform a contractual duty.
9. (9) Demurrage—The amount payable or credited to either bidder or department for delivery delays.
10. (10) Department—The Missouri Highway and Transportation Department.
11. (11) Director—The director of the Division of Equipment and Procurement or a designated representative of the director.
12. (12) Division—The Division of Equipment and Procurement within the Missouri Highway and Transportation Department.
13. (13) Domicile—The state in which a business is incorporated.
14. (14) Emergency—A situation which creates a serious and obvious threat to the public health, welfare or safety, or creates a serious and obvious threat to the operation of state government in executing its legal responsibilities to the public or for the persons or property in its legal care, custody or control, or a combination of these.
15. (15) Invitation for bid (IFB)—A formal request for sealed bids which are solicited based upon specifications for which bids must be submitted.
16. (16) Missouri firm—A corporation which is incorporated in Missouri, or in the case of a partnership, joint venture or sole proprietorship, a business which has its principal place of business in Missouri.

17. (17) Multiple award—A contract awarded to two (2) or more bidders to meet the needs of the department. The term is applicable in the following two (2) situations:

    1. (A) Volume of business is so large or the geographical distances are so great that more than one (1) bidder is necessary to serve the state’s needs; or
    2. (B) Differences between various bidders’ versions of a product are so significant that it is useful to have a contract with a bidder of each product.
18. (18) Nonresponsive bid—A bid or proposal which does not fulfill all terms, conditions and specifications outlined in the solicitation document.
19. (19) Notice to proceed—A document sent by department that gives notice to bidder to begin performance on its contract.
20. (20) Proposal security—A guarantee, in the form of an irrevocable bond or deposit, that the bidder, if selected, will accept the contract as bid. 7 CSR 10-11
21. (21) Purchase—Includes rental or leasing of any equipment, articles or supplies.
22. (22) Purchase order—A document issued by department, authorizing bidder to deliver goods.
23. (23) Responsible bid—Bid which complies with all terms, conditions, and specifications outlined in solicitation document.
24. (24) Request for proposal (RFP)—A formal request for sealed proposals which is solicited and based on scope of work requirements. Proposals must be submitted by a specific date and time.
25. (25) Request for quotation (RFQ)—An informal request for either bids or proposals based upon either a specification or a scope of work requirement. Establishes a target date and time by which quotations must be submitted.
26. (26) Solicitation—A process of notifying prospective bidders that the department wishes to receive bids or proposals to provide goods, services or a combination of goods and services. The term includes RFQ, RFP, IFB and any other procurement method which may be used.
27. (27) State—The state of Missouri.
28. (28) Substitution—A shipment of an item that materially conforms to the specifications but is technically different from the item bid.
29. (29) Supplies—Materials, equipment, contractual services and all articles or things.
30. (30) Suspension—An exclusion from contracting with the department for a temporary period of time.
31. (31) Vendor—Any individual, partnership, company, corporation or joint venturer providing materials, supplies or services to the department.
32. (32) Witness—A person who has no interest in the outcome of the drawing of lots.

AUTHORITY: sections 226.020, 226.130 and 227.030, RSMo 1986.* Original rule filed April 5, 1993, effective Oct. 10, 1993.

*Original authority: 226.020, RSMo 1939; 226.130, RSMo 1939, amended 1993, 1995; and 227.030, RSMo 1939.