Chapter
296
2005 -- S 1114
Enacted 07/15/05
A N A C T
RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES
Introduced By: Senator Daniel DaPonte
Date Introduced: May 19, 2005
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 37-2-15, 37-2-17, 37-2-17.1 and 37-2-18 of the General Laws in
Chapter
37-2 entitled "State Purchases" are hereby amended to read as
follows:
37-2-15.
Source selection and contract formation -- Statutory provisions. -- As
used
in this
chapter unless the context in which they are used clearly requires a different
meaning:
(1) "Cost-reimbursement contract" shall mean a contract under which
the state
reimburses
the contractor for those contract costs, within a stated ceiling, which are
allowable and
allocable
in accordance with cost principles (as provided in section 37-2-43), and a
fixed fee, if
any.
(2) "Established catalogue price" shall mean the price included in
the most current
catalogue,
price list, schedule, or other form that:
(i) Is regularly maintained by the manufacturer or vendor of an item;
(ii) Is either published or otherwise available for inspection by customers;
(iii) States prices at which sales are currently or were last made to a
significant number
of
buyers constituting the general buying public for that item; and
(iv) States prices which are obtained from the most recent industry wide
publications and
informational
journals if any.
(3) "Evaluated bid price" shall mean the dollar amount of a bid,
after bid price
adjustments
are made pursuant to objective measurable criteria, set forth in the invitation
for bids,
which
affect the economy and effectiveness in the operation or use of the product,
such as
reliability,
maintainability, useful life, and residual value.
(4) "Invitation for bids" shall mean all documents, whether attached
or incorporated by
reference,
utilized for soliciting bids in accordance with the procedures set forth in section
sections 37-2-18 and 37-2-18.1.
(5) "Request for proposals" shall mean all documents, whether
attached or incorporated
by
reference, utilized for soliciting proposals in accordance with the procedures
set forth in this
chapter.
(6) "Responsible bidder or offeror" shall mean a qualified bidder or
offeror who has the
capability
in all respects, including financial responsibility, to perform fully the
contract
requirements,
and the integrity and reliability which will assure good faith performance.
(7) "Responsive bidder or offeror" shall mean a person who has
submitted a bid or offer
which
conforms in all material respects to the invitation for bids or proposals, so
that all bidders
or
offerors may stand on equal footing with respect to the method and timeliness
of submission
and as
to the substance of any resulting contract.
(8) "Request for qualifications" shall mean all documents, whether
attached or
incorporated
by reference, utilized for soliciting qualifications of offerors prior to or
during the
solicitation
of bids or proposals.
(9)
"Reverse Auction" shall mean a bid competition where the lowest
responsive and
responsible
bidder wins the auction.
(10)
"Auctioneer" shall mean a business or organization that conducts an
electronic
reverse
auction.
37-2-17.
Method of source selection. -- Except for purchases solicited pursuant
to the
provisions
for small purchases set forth in section 37-2-22, all state contracts and
purchases shall
be solicited
through utilization of the Rhode Island Vendor Information Program (RIVIP) as
set
forth in
section 37-2-17.1. Except as otherwise authorized by law, all state contracts
shall be
awarded
by:
(1) Competitive sealed offers, pursuant to section 37-2-18;
(2) Competitive negotiation, pursuant to sections 37-2-19 and 37-2-20;
(3) Noncompetitive negotiation, pursuant to section 37-2-21; or
(4) Small purchase procedures, pursuant to section 37-2-22. ; or
(5) Reverse auctions, pursuant to section 37-2-18.1.
37-2-17.1.
Rhode Island vendor information program (RIVIP). -- (a) The chief
purchasing
officer is directed to institute an electronic vendor information program which
shall
enable
all invitations for bid and requests for a proposal to be accessed
electronically by all
potential
vendors. This program is to be readily accessible through public access
stations located
at the
following locations:
(1) One Capitol Hill, Providence, Rhode Island;
(2) City hall, town hall or public library of each of the thirty-nine (39)
cities and towns in
the
state.
(b) Further, the vendor information program shall be accessible to potential
vendors
through
means of computer modem.
(c)
The chief purchasing officer may contract with auctioneers as defined in
section 37-2-
15(10)
to conduct electronic reverse auctions, provided that notification of the
opportunity to
participate
in the auction is posted on the RIVIP in accordance with the requirements of
section
37-2-25.1.
37-2-18.
Competitive sealed bidding. -- (a) Contracts exceeding the amount
provided by
section
37-2-22 shall be awarded by competitive sealed bidding unless it is determined
in writing
that
this method is not practicable or that the best value for the state may be
obtained by using an
electronic
reverse auction as set forth in section 37-2-18.1. Factors to be considered in
determining
whether competitive sealed bidding is practicable shall include whether:
(1) Specifications can be prepared that permit award on the basis of either the
lowest bid
price or
the lowest evaluated bid price; and
(2) The available sources, the time and place of performance, and other
relevant
circumstances
as are appropriate for the use of competitive sealed bidding.
(b) The invitation for bids shall state whether the award shall be made on the
basis of the
lowest
bid price or the lowest evaluated or responsive bid price. If the latter basis
is used, the
objective
measurable criteria to be utilized shall be set forth in the invitation for
bids, if available.
(c) Unless the invitations for bid are accessible under the provisions as
provided in
section
37-2-17.1, public notice of the invitation for bids shall be given a sufficient
time prior to
the date
set forth therein for the opening of bids. Public notice may include
publication in a
newspaper
of general circulation in the state as determined by the purchasing agent not
less than
seven
(7) days nor more than twenty-eight (28) days before the date set for the
opening of the
bids.
The purchasing agent may make a written determination that the twenty-eight
(28) day
limitation
needs to be waived. The written determination shall state the reason why the
twenty-
eight
(28) day limitation is being waived and shall state the number of days, giving
a minimum
and
maximum, before the date set for the opening of bids when public notice is to
be given.
(d) Bids shall be opened publicly at the time and place designated in the
invitation for
bids.
Each bid, together with the name of the bidder, shall be recorded and an
abstract made
available
for public inspection. Subsequent to the awarding of the bid, all documents
pertinent to
the
awarding of the bid shall be made available and open to public inspection and
retained in the
bid
file.
(e) The contract shall be awarded with reasonable promptness by written notice
to the
responsive
and responsible bidder whose bid is either the lowest bid price, lowest evaluated,
or
responsive
bid price.
(f) Correction or withdrawal of bids may be allowed only to the extent
permitted by
regulations
issued by the chief purchasing officer.
SECTION
2. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby
amended
by adding thereto the following section:
37-2-18.1.
Reverse auctions. – (a) Contracts exceeding the amount provided by
section
37-2-22
may be awarded by electronic reverse auctions when it is determined in writing
by the
chief
purchasing officer that the state will obtain a better value with this method
than with a
competitive
sealed bid process. Factors to be considered in determining whether electronic
reverse
auctions shall be utilized shall include:
(1)
Whether specifications can be prepared that permit electronic posting of bid
solicitations
and secure receipt of electronic bids; and
(2)
The cost for preparing and executing the auction; and
(3)
Whether conditions are such that the commodities or services to be purchased
are
appropriately
competitive.
(b)
All reverse auctions shall be conducted electronically using real-time, on-line
bidding
procedures.
These procedures shall include the following:
(1)
Participation as a bidder shall be subject to a prequalification process
conducted in
accordance
with the provisions of section 37-2-25.1.
(2)
The solicitation shall designate both an opening date and time and a closing
date and
time.
The closing date and time may be dependent on a variable or variables specified
in the
solicitation.
At the opening date and time, the auctioneer shall begin accepting real-time,
on-line
bids.
The solicitation shall remain open until the closing date and time.
(3)
Following receipt of the first bid after the opening date and time, all bid
prices shall
be
posted electronically to the internet and updated on a real-time basis. At any
time before the
closing
date and time, a bidder may offer a lower bid than the lowest bid of any
bidder, including
his
own. A bidder's lowest bid shall supersede any prior higher bid offered by that
bidder. Bid
prices
may not be increased at any time after the opening date and time. All bids
shall be binding
and
may not be withdrawn. If a price entered by the bidder is in error, the bidder
must correct the
bid
within the time period and manner specified in the solicitation.
(4)
The invitation for bids shall state that the award shall be made on the basis
of the
lowest
responsive bid price.
(c)
The contract shall be awarded with reasonable promptness by written notice to
the
responsive
and responsible bidder whose bid is either the lowest bid price, lowest
evaluated, or
responsive
bid price.
(d)
Subsequent to the awarding of the contract, all documents pertinent to the
awarding of
the
contract shall be made available and open to the public inspection and retained
in the bid file.
37-2-25.1.
Prequalification of vendors for electronic reverse auctions. – (a)
Potential
bidders
shall be prequalified for participation in each electronic auction.
(b)
A request for qualifications shall be issued stating the intent to conduct a
reverse
auction
in accordance with the provisions of section 37-2-18.1. The request for
qualifications
shall
identify the goods and services to be purchased and the criteria to be used to
determine how
many
and/or which bidders will be selected to participate in the reverse auction.
All requests for
qualifications
shall be solicited through utilization of the Rhode Island Vendor Information
Program
(RIVIP) as set forth in section 37-2-17.1.
(c)
Participants shall be selected based on the criteria set forth in the request
for
qualifications,
including agreement to any terms, conditions or other requirements of the
solicitation.
Written or oral discussions may be conducted with all responsible vendors
determined
in writing to be reasonably susceptible of being selected for award.
(d)
Prior to the execution of the auction potential bidders shall be required to
receive
instruction
on the use of the selected electronic bidding procedure. Only bidders who
successfully
complete the training phase of prequalification shall be permitted to
participate in the
electronic
reverse auction specified in the request for qualifications.
SECTION 3. This act
shall take effect upon passage.
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LC03372
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