Multi-Stage Bidding

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Multi-Stage Bidding
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Definition - NIGP
Definition
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Definition - NIGP

• A method of source selection involving two
  competitive steps, combining the elements of both
  competitive sealed bids and competitive sealed
  proposals. The first step may require the
  submission of technical and price proposals with
  only the technical proposals being evaluated and
  scored. The second step involves the opening of
  price proposals of those firms who have achieved
  the highest technical scores.

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Advantages of Multi-Stage Bidding
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Advantages of Multi-Stage Bidding

• Allows pre-qualification screening process
• Allows more flexibility with potentially
  acceptable bid responses
• Allows request for additional information from
  bidders

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Advantages of Multi-Stage Bidding

• Larger potential pool of qualified bidders
• Award made to low bidder
• No cost benefit analysis required
• Other

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Dis-Advantages of Multi-Stage Bidding
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Dis-Advantages of Multi-Stage Bidding

• New procedure-training
• Time duration of process
• Award made to low bid
• Other

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Prequalification Procedures
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Prequalification Procedures

• Publish the solicitation as required by the
  jurisdiction
• state type of procurement item being solicited
• State scope of work
• Conduct as many stages as determined to be
  appropriate

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Prequalification Procedures

• Requirements for and purpose for each stage to be
  published in bid
• Criteria not to be so restrictive to unreasonably
  limit competition
• Instructions, Due dates and time for each stage
  are established
• Evaluation criteria are established

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Prequalification Procedures

• No pricing to be submitted during qualification
  stage(s)
• Bids in a subsequent stage will only be accepted
  from bidders deemed qualified in the previous
  stage

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Prequalification Questions
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Prequalification Questions

• Do all stages need to be listed in the original
  bid ?
• Do performance rating criteria need to be
  included?
• Is a bid rejected if pricing is submitted during
  a qualification stage?
• Do notifications need to be sent after a bidder
  is deemed unacceptable?

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Case Study
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Final Stage
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Final Stage

• Solicit bids from bidders who are prequalified
• Award to low bidder

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Multi-Stage Questions
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Multi-Stage Questions

• Can Process be used for multiple award contracts?
• Can Process by used for term contracts?
• What are examples of commodities or services
  where this is the optimal tool?

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Creation of Approved Vendor Lists
Caution
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Creation of Approved Vendor Lists

• Request for Qualifications (RFQ)

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Creation of Approved Vendor Lists

• Code requires additional procedures
• Pre-qualified vendor lists only good for 18
  months
• Units may limit bid participation to
  pre-qualified bidders for the specified item(s)
• RFQ may not be used if only 1 vendor is placed on
  list. Rfq process to be cancelled

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Creation of Approved Vendor Lists

• Code requires additional procedures
• Written justification to be sent to all suppliers
  who are not put on list
• To include reasons that the supplier did not meet
  qualification requirements

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Creation of Approved Vendor Lists

• Code requires additional procedures
• Make approved vendor list available to public
  within 30 days after RFQ due date

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Questions