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<br />(i) In order for sealed bidding to be feasible, the following <br />conditions should be present: <br />(A) A complete. adequate, and realistic specification or purchase <br />description is available; <br />(B) Two or more responsible bidders are willing and able to compete <br />effectively and for the business; and <br />(C) The procurement lends itself to a firm fixed price contract and <br />the selection of the successful bidder can be made principally on the <br />basis of price. <br />(ii) If sealed bids are used, the followir-g requirements apply: <br />(AI The in~ita:ion for bids will be publicly advertised and bids <br />shall be solicited from an adequate number of kno'NTI suppliers. providing <br />them sufficient time prior to the date set for opening the bids; <br />(B) The in':itation for bids, which wil::' i;:clude any specifications <br />and pertinent attachments, shall define the items or services in order <br />for the bidder to properly respond; <br />(C) All bids will be publicly opened at the time and place <br />prescribed in the invitation for bids; <br />(D) A firm fixed-price contract award will be made in writing to the <br />lowest responsive and responsible bidder. Where specified in bidding <br />documents, factors such as discounts, transportation cost, and life <br />cycle costs shall be considered in determining which bid is lowest. <br />Payment discounts will only be used to determine the low bid when prior <br />experience indicates that such <br /> <br />( (Page 414]] <br /> <br />discounts are usually taken advantage of; and <br />(E) Any or all bids may be rejected if there is a sound documented <br />reason. <br />(3) Procurement by competitive proposals. The technique of <br />competitive proposals is normally conducted with more than one source <br />submitting an offer, and either a fixed-price or cost-reimbursement type <br />contract is awarded. It is generally used when conditions are not <br />appropriate for the use of sealed bids. If this method is used, the <br />following requirements apply: <br />(i) Requests for proposals will be publicized and identify all <br />evaluation factors and their relative importance. Any response to <br />publicized requests for proposals shall be honored to the maximum extent <br />practical; <br />(ii) Proposals will be solicited from an adequate number of <br />qualified sources; <br />(iii) Grantees and subgrantees will have a method for conducting <br />technical evaluations of the proposals received and for selecting <br />a'..,ardees; <br />(iv) Awards will be made to the responsible firm whose proposal is <br />most advantageous to the program, with price and other factors <br />considered; and <br />(v) Grantees and subgrantees may use competitive proposal procedures <br />for qualifications-based procurement of architectural/engineering (A/E) <br />professional services whereby competitors' qualifications are evaluated <br />and the most ~ualified competitor is selected. subject to negotiation of <br />fair and reasonable compensation. The method, where price is not used as <br />a selection factor. can only be used in procurement of A/E professional <br />services. It cannot be used to purchase other types of services though <br />A/E firms are a potential source to perform the proposed effort. <br />(4) Procurement by noncompetitive proposals is procurement through <br />solicitation of a proposal from only one source, or after solicitation <br />of a number of sources, competition is determined inadequate. <br />(i) Procurement by noncompetitive proposals may be used only when <br />the award of a contract is infeasible under small purchase procedures, <br /> <br />: i.)f S <br /> <br />.:. 12 lil~ :-no P\~ <br />