CHAPTER 276


98-S 2662 am
Enacted 7/9/98


A N     A C T

RELATING TO THE AWARD OF MUNICIPAL CONTRACTS

Introduced By: Senators Goodwin and Connors

Date Introduced : February 10, 1998

It is enacted by the General Assembly as follows:

SECTION 1. Sections 45-55-2, 45-55-5 and 45-55-6 of the General Laws in Chapter 45-55 entitled "Award of Municipal Contracts" are hereby amended to read as follows:

45-55-2. Method of source selection. -- Except as otherwise authorized by law, all municipal contracts shall be awarded by:

(1) Competitive sealed bidding, pursuant to section 45-55-5;

(2) Competitive negotiations, pursuant to section 45-55-6;

(3) Non-competitive negotiations, pursuant to sections 45-55-7 and 45-55-8;

(4) Small purchase procedures, pursuant to section 45-55-9.

{ADD (5) Qualification based selection (QBS) process for architects/engineers pursuant to 45-55-8.1. ADD}

45-55-5. Competitive sealed bidding. -- (1) Contracts exceeding the amount provided by section 45-55-9 shall be awarded by competitive bidding {ADD unless they are professional engineering/architectural services pursuant to section 45-55-8.1 and ADD} it is determined in writing that this method is not practicable. Factors to be considered in determining whether competitive sealed bidding is practicable shall include whether:

(a) Specifications can be prepared that permit award on the basis of either the lowest qualified bid price or the lowest qualified evaluated bid price; and

(b) The available sources, the time and place of performance, and other relevant circumstances as are appropriate for the use of competitive sealed bidding.

(2) The invitation for bids shall state whether 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.

(3) Adequate 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. Such notice may include publication in a newspaper of general circulation in the state as determined by the purchasing officer for the municipality not less than seven (7) days nor more than twenty-one (21) days before the date set for opening of the bids. The purchasing officer may make a written determination that the twenty-one (21) day limitation needs to be waived. The written determination shall state the reason why the twenty-one (21) 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.

(4) Bids shall be opened publicly in full view of the public 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.

(5) 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, or lowest evaluated or responsive bid price.

(6) Correction or withdrawal of bids may be allowed only to the extent permitted by regulations issued by the purchasing officer.

45-55-6. Competitive negotiation. -- (1) When, under regulations adopted by the city or town council, the purchasing agent determines in writing that the use of competitive sealed bidding is not practicable, and except as provided in sections 45-55-8 {DEL and DEL} 45-55-9, {ADD and 45-55-10 ADD}a contract may be awarded by competitive negotiation.

(2) Adequate public notice of the request for proposals shall be given in the same manner as provided in section 45-55-5(3).

(3) Contracts may be competitively negotiated when it is determined in writing by the purchasing agent that the bid prices received by competitive sealed bidding either are unreasonable as to all or part of the requirements, or were not independently reached in open competition, and for which:

(a) Each competitive bidder has been notified of the intention to negotiate and is given reasonable opportunity to negotiate; and

(b) The negotiated price is lower than the lowest rejected bid by any competitive bidder; and

(c) The negotiated price is the lowest negotiated price offered by a competitive offeror.

(4) The request for proposals shall indicate the relative importance of price and other evaluation factors.

(5) Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the municipality taking into consideration price and the evaluation factors set forth in the request for proposals.

(6) Written or oral discussions shall be conducted with all responsible offerors who submit proposals determined in writing to be reasonably susceptible of being selected for award. Discussions shall not disclose any information derived from proposals submitted by competing offerors. Discussions need not be conducted:

(a) With respect to prices, where such prices are fixed by law or regulation, except that consideration shall be given to competitive terms and conditions; or

(b) Where time of delivery or performance will not permit discussions; or

(c) Where it can be clearly demonstrated and documented from the existence of adequate competition or accurate prior cost experience with the particular supply, service, or construction item, that acceptance of an initial offer without discussion would result in fair and reasonable prices, and the request for proposals notifies all offerors of the possibility that award may be made on the basis of the initial offers.

SECTION 2. Chapter 45-55 of the General Laws entitled "Award of Municipal Contracts" is hereby amended by adding thereto the following section:

{ADD 45-55-8.1. Qualification Based Selection of Architects and Engineers. -- ADD} {ADD When, the purchasing agent determines that the city or town needs the services of a professional architect or engineer, the purchasing agent shall follow the qualification based selection process for the procurement of architectural and engineering consulting services. ADD}

SECTION 3. This act shall take effect upon passage.



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