Chapter 26A

 

                                                             PROCUREMENT[1]

 

                    Art. I.          Procurement, §§ 26A-1—26A-49

                                                   Art. II.          Materials Management, §§ 26A-50—26A-53

 

                                                  ARTICLE I.  PROCUREMENT

        

Sec. 26A-1.  General procurement applicability.

 

         (a)     Except as otherwise provided, this chapter applies to all expenditures of public monies irrespective of their source, including federal assistance monies to this city, for the purchase of materials, goods and services, under any contract, except that this chapter does not apply to either grants, or contracts between the city and other governments.  Nothing in this chapter shall prevent the city from complying with the terms and conditions of any grant, gift, bequest or cooperative agreement.

 

         (b)     The provisions of this chapter are not applicable to the following types of procurements that by their nature are not applicable to the competitive process and therefore exempt from the procurement code.  However, any procurements at or in excess of thirty thousand dollars ($30,000) require formal council approval. 

 

                  (1)     Professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which the city is or may become a party or to contracts for special investigative services for law enforcement purposes;

 

                  (2)     Agreements negotiated by the city attorney or risk manager in settlement of a claim or litigation or threatened litigation are exempt from the provisions of this chapter;

 

                  (3)     Worker's compensation payments for medical and related expenses;

 

                  (4)     Works of fine art which are not physically a part of functional construction features, and performing art entertainment;

 

                  (5)     The purchase of miscellaneous books, magazines, newspapers, subscriptions, on-line library reference services, film, videos and assorted materials for library customer check-out purposes for which contracts by competitive bid solicitation is not practicable.  Does not include major book provider contracts which are competitively bid;

 

                  (6)     Intergovernmental payments, purchases and agreements;

 

                  (7)     Public utility purchases of water, power and related services;

 

                  (8)     Specialized seminar, training and educational classes;

 

                  (9)     Magazine and media advertisement;

 

                  (10)   Financial advisory and investment broker/dealer and related services;

 

                  (11)   Election services;

 

                  (12)   Council initiated contracts;

 

                  (13)   Memberships in organizations; or

 

                  (14)   Political lobbyist services.

 

         (c)     The determination of procurements considered exempt shall be made by the procurement administrator.

 

         (d)    The provisions of this chapter are not applicable to the types of procurement described in this paragraph.  However, any procurements at or in excess of thirty thousand dollars ($30,000) require formal council approval.  Procurement of architect services, construction, construction services, construction-manager-at-risk construction services, design-build construction services, engineer services, job-order-contracting construction services, landscape architect services, assayer services, geologist services, and land surveying services shall comply with Title 34 of the Arizona Revised Statutes.  These provisions will also be utilized for the following services: construction program management, construction management, feasibility studies, materials testing, mapping, related data collection and analysis, infrastructure system analysis or other related services.  The public works department, engineering division shall act as the city procurement agency and administrator for the above listed services.

(Ord. No. 97.55, 12-11-97; Ord. No. 2005.69, 9-29-05; Ord. No. 2007.72, 10-25-07)

 

Sec. 26A-2.  Chapter definitions, unless the context otherwise requires.

 

         Adequate evidence means more than mere accusation but less than substantial evidence.  Consideration shall be given to the amount of credible information available, reasonableness in view of surrounding circumstances, corroboration and other inferences that may be drawn from the existence or absence of affirmative facts.

 

         Administrative directive means the document issued by the city manager to establish administrative policy and procedures for city departments and employees.

 

         Affiliate means any person whose governing instruments require it to be bound by the decision of another person or whose governing board includes enough voting representatives of the other person to cause or prevent action, whether or not the power is exercised.  It may also include persons doing business under a variety of names, or where there is a parent-subsidiary relationship between persons.

 

         Assignment of rights and duties means the rights and duties of a city contract are not transferable or otherwise assignable without the written consent of the procurement office.

 


         Authorized formal contract signer means the mayor or procurement administrator, as appropriate under the city charter and city code, once the contract has been reviewed and approved by the city procurement office, city risk management and the city attorney's office and awarded by the city council, if necessary.

 

         Business means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture or any other private legal entity.

 

         Central services administrator means the person designated by the financial services manager to administer the activities of the city procurement office, including the duplicating and mail center and surplus property. 

 

         Change order means a written order signed by the procurement administrator or the mayor, as necessary, who directs the contractor to make changes that are authorized by the original city solicitation and any resulting contract.

 

         City means the municipal corporation now existing and known as the City of Tempe.

 

         Confidential information means that if a person believes that a bid, proposal, offer, specification or protest contains information that should be withheld, a statement advising the procurement officer of this fact shall accompany the submission and the information shall be so identified wherever it appears.  The information identified by the person as confidential shall not be disclosed until the procurement officer makes a written determination.  The procurement officer shall review the statement and information and shall determine in writing whether the information shall be withheld.  Such determination statement may be reviewed by the city attorney's office and shall be approved by the procurement administrator; and if the procurement officer determines to disclose the information, the procurement officer shall inform the person in writing of such determination.

 

         Construction means the process of building, altering, repairing, improving or demolishing any public structure or building, or other public improvements of any kind to any public real property. Construction does not include the routine operation, routine repair or routine maintenance of existing structures, buildings or real property.  Procurement responsibility for construction and related architectural and engineering services are delegated to the manager directing the activities of the public works department and set apart from the procurement of goods and services.

 

         Contract means all types of city agreements, regardless of what they may be called, for the procurement of goods and services.

 

         Contract administrator means any person authorized to manage, supervise, and monitor compliance with the requirements of a contract.

 

         Contract amendment means a written modification of the terms and conditions of a contract signed by the parties to the contract.

 

         Contract value means the dollar value or estimated dollar value of single-requirement procurement or for the initial period of a term contract.

 

         Contractor means any person who has a contract with the city.

 

         Cooperative procurement means procurement conducted by, or on behalf of, more than one eligible public procurement unit.

 

         Cost-reimbursement contract means a contract under which a contractor is reimbursed for costs which are reasonable, allowable and allocable in accordance with the contract terms and the provisions of this chapter, and a fee, if provided for in the contract.

 

         Days means calendar days unless otherwise specified as business days and shall be computed pursuant to A.R.S. § 1-243.

 

         Debarment means the disqualification of a vendor to receive bid solicitations or the award of a contract by the city for a specified period of time, not to exceed three (3) years, commensurate with the seriousness of the offense resulting from conduct, failure or inadequacy of contract performance or causing harassment to the award or performance of a city contract. 

 

         Designee means a duly authorized representative of a responsible party.

 

         Discussions means an exchange of information or any form of negotiation.

 

         Eligible procurement unit means a public procurement unit or a nonprofit educational or public health institution which follows a procurement process comparable to the process set forth in this code.

 

         Emergency procurement means the procurement of goods, materials, supplies or services which are required to remedy a situation where the health, safety, welfare or quality of welfare of the public or public property is endangered or severely reduced if immediate corrective or preventive action is not taken.

 

         Evaluation committee means a selected group of people representing the city in evaluating bid, proposal or qualifications responses for the purpose of making a contract award; and whose responsibility is to make fair and impartial decisions.

 

         Filed means delivery to the procurement officer or to the procurement administrator, whichever is applicable.  A time/date stamp affixed to a document by the office of the procurement officer or the procurement administrator, whichever is applicable, shall be determinative of the time of delivery for purposes of filing.

 

         Financial services manager means the person responsible for directing the activities of the city's financial services department.

 

         Formal contract means a written contract resulting from a formal solicitation issued by the city procurement office and, if necessary, has been formally approved and awarded by city council. 

 

         Governing instruments means those legal documents that establish the existence of an organization and define its powers including articles of incorporation or association, constitution, charter and by-laws.

          Grant means the furnishings by the city of assistance, whether financial or otherwise, to any person to support a program authorized by law.  Grant does not include an agreement whose primary purpose is to procure a specific end product, whether in the form of goods, materials, supplies or services.  A contract resulting from such an agreement is not a grant but a procurement contract.

 

         Gratuities means gifts, services or money offered or given to any officer or employee of the city or to any of their family members with a view toward securing an unfair advantage of obtaining an order or favorable treatment with respect to an award or contract.

 

         Interested party means an actual or prospective bidder or offeror whose economic interest may be affected substantially and directly by the issuance of a solicitation, the award of a contract or by the failure to award a contract.  Whether an actual or prospective bidder or offeror has an economic interest will depend upon the circumstances of each case.

 

         Invitation for bid means all documents, whether attached or incorporated by reference, which are used for soliciting bids.

 

         Late bid means a bid or proposal response that is received by the city procurement office after the due date and time stated in the city's solicitation document or as may be modified by any supplemental addendum; and such late bids or proposals shall be rejected and not considered.

 

         Legal counsel means a person licensed as an attorney pursuant to rules of the Supreme Court, Title 17A, Arizona Revised Statutes.

 

         Manager means a person directing the activities of a city department.

 

         Materials means all personal property, including, but not limited to, equipment, supplies, printing, insurance and leases of personal property but does not include purchase of land, acquiring a permanent interest in land or real property or leasing land or real property.

 

         May denotes the permissive.

 

         Minor informality means a mistake, excluding judgmental errors, that have negligible material effect on price, quantity, delivery or contractual terms and waiver or correction of such mistake does not prejudice other bidders or offerors.

 

         Model procurement code means the comprehensive plan or "model" for the fundamental principles of public procurement as developed by the American Bar Association, Section of Urban, State and Local Government Law.

 

         Multi-step sealed bidding means a two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the city and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered.

 

         Multiple award means an award of an indefinite quantity contract for one or more similar materials or services to more than one bidder or offeror.

 

         Must denotes the imperative.

 

         Nonprofit educational or public health institution means any educational or public health institution, no part of the income of which is distributable to its members, directors or officers.

 

         Person means any corporation, business, individual, union, committee, club, other organization or group of individuals.

 

         Price analysis means the evaluation of price data.

 

         Price data means information concerning prices, including profit and overhead, for goods, materials and services substantially similar to those being procured under a contract or subcontract.  In this definition, "prices" refers to offered or proposed selling prices, historical selling prices or current selling prices of the items being procured.

 

         Procurement means buying, purchasing, renting, leasing or otherwise acquiring any materials, supplies or services.  Procurement also includes all functions that pertain to the obtaining of any material or service, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

 

         Procurement administrator means the central services administrator.

 

         Procurement officer means any buyer, duly authorized to enter into and administer contracts and make written determinations with respect to city contracts; and includes an authorized representative acting within the limits of the officer's authority.

 

         Professional services means those services requiring specialized knowledge, education or skill and where the qualifications of the person(s) rendering the services are of primary importance.  Professional services shall include but not be limited to appraisers, land surveyors, attorneys, architects, engineers, psychologists, physicians, health practitioners, auditors, systems and software analysts and professional consultants.

 

         Public procurement unit means a political subdivision, the city, the State of Arizona or an agency of the United States.

 

         Purchase requisition means that document, or electronic transmission, whereby a department requests that a contract be entered into for a specific need, and may include, but is not limited to, the description of the requested item, estimated cost, delivery schedule, transportation data, criteria for evaluation, and suggested sources of supply.

 

         Qualified products list means an approved list of materials, goods or services described by model or catalogue numbers, that, prior to competitive solicitation, the city has determined will meet the applicable specification requirements.

 

         Qualified providers list means a list of service firms which have been pre-qualified to provide a service in a specific field.  Such list may be established by a competitive sealed proposals or request for qualifications.

 

         Requirement of good faith means that all parties involved in the negotiation, performance or administration of city contracts are required to act in good faith.

 

         Request for proposals means all documents whether attached or incorporated by reference, which are used for soliciting proposals in accordance with procedures prescribed within this chapter.

 

         Request for qualifications means a request by the city for detailed information concerning the qualifications of firms to provide professional services.

 

         Responsible bidder or offeror means a person who has the capability to perform the contract requirements and the integrity and reliability which will assure good faith performance.

 

         Responsive bidder or offeror means a person who submits a bid which conforms in all material respects to the invitation for bids or request for proposals.

 

         Services means the furnishing of labor, time or effort by a contractor or subcontractor which does not involve the delivery of a specific end product other than required reports and performance.  Services shall include but not be limited to repair and maintenance, trades and crafts work, clerical and machine operating functions, concession operations, food catering, etc.

 

         Shall denotes the imperative.

 

         Single requirement procurement means the purchase, lease, or rental of materials or services without a known pattern of recurring need by the city.

 

         Solicitation means an invitation for bids, a request for technical offers, a request for proposals, a request for quotations, a request for qualifications or any other invitation or request by which the city invites a person to participate in a procurement process. 

 

         Spot market means a short lived market where specific materials are subject to limited  purchase availability; or where a significantly reduced price offer requires the material's immediate procurement to secure and obtain the item. 

 

         Subcontractor means a person who contracts to perform work or render services to a contractor or to another subcontractor as a part of a contract with the city.

 

         Substantial evidence means such relevant evidence as a reasonable person might accept as sufficient to support a particular conclusion.

 

         Supplementary general principles of law means that unless displaced by the particular provisions of this chapter, the principles of law and equity, including the uniform commercial code of this state, the common law of contracts as applied in this state and law relative to agency, fraud, misrepresentation, duress, coercion and mistake are applicable and supplement the provisions of this chapter.

 

         Suspension means an action taken by the financial services manager temporarily disqualifying a person from participating in city procurements.

 

         Technical offer means unpriced written information from a prospective contractor stating the manner in which the prospective contractor intends to perform certain work, its qualifications, and its terms and conditions.

 

         Term contract means a contract for the supply of materials or services for a specified period of time as stated within the solicitation document and has provisions for contract cancellation, and for additional contract renewal periods.

 

         Term contract administration means the monitoring of term contracts to ensure compliance with the city's contract award and any term contract exceeding its estimated value shall be resubmitted for review and approval by city council.

 

         Vendor means a person or firm in the business of selling or otherwise providing products, materials or services.

 

         Void contract means a contract that contains unlawful language or a contract that conflicts with the requirements of the city's solicitation.

(Ord. No. 97.55, 12-11-97; Ord. No. 2001.17, 7-26-01; Ord. No. 2005.69, 9-29-05; Ord. No. 2007.72, 10-25-07)

 

Sec. 26A-3.  Authority of the procurement administrator.

 

         (a)     Except as otherwise provided in this chapter, the procurement administrator, under the direction of the financial services manager, may adopt operational procedures, consistent with this chapter, governing the procurement and management of all materials and services to be procured by the city and the disposal of materials.

 

         (b)     Except as otherwise provided in this chapter, the procurement administrator shall:

 

                  (1)     Supervise and administer the procurement of all materials and services required by the city in general conformity to procurement practices promoted by the ABA Model Procurement Code;

 

(2)     Establish rules and regulations for the procurement of all materials and services for the city;

 

                  (3)     Establish rules and regulations for the sale, trade, transfer or disposal of surplus materials belonging to the city; and

 

                  (4)     Prepare, issue, revise, maintain and monitor the use of specifications for materials and services required by the city. 

 

         (c)     Written determinations required by this chapter shall be retained in the appropriate official file of the procurement office.

(Ord. No. 97.55, 12-11-97; Ord. No. 2001.17, 7-26-01; Ord. No. 2005.69, 9-29-05; Ord. No. 2007.72, 10-25-07)

 


Sec. 26A-4.  Procurement procedures by dollar value.

 

         (a)     Small purchases under $5,000.  The single requirement procurement of materials and services, of less than five thousand dollars ($5,000) shall be made in accord with those rules and regulations set forth and published by the city procurement administrator.

 

         (b)     Small purchases $5,000 to $29,999.  The single requirement or term contract procurement of materials and services, of less than thirty thousand dollars ($30,000) and greater than or equal to five thousand dollars ($5,000) shall be made in accord with § 26A-11(b).

 

         (c)     Formal procurements $30,000 and over.  Materials, goods and services, except as otherwise provided herein, when the single requirement or estimated value during an initial term contract period shall be equal or exceeding thirty thousand dollars ($30,000) shall be procured by formal, written solicitation.

(Ord. No. 97.55, 12-11-97; Ord. No. 2005.69, 9-29-05; Ord. No. 2007.72, 10-25-07)

 

Sec. 26A-5.  Procurement authorization levels.

 

         (a)     The procurement administrator shall have the authority to approve and sign, if necessary, procurements up to and including twenty-nine thousand nine hundred ninety-nine dollars ($29,999).

 

         (b)     Except for formal contracts requiring the signature of the mayor, the financial services manager or designee shall have the authority to enter into city council approved procurements equal to or exceeding thirty thousand dollars ($30,000). 

 

         (c)     The city council shall award contracts with a value equal to or exceeding thirty thousand dollars ($30,000).

(Ord. No. 97.55, 12-11-97; Ord. No. 2001.17, 7-26-01; Ord. No. 2005.69, 9-29-05; Ord. No. 2007.72, 10-25-07)

 

Sec. 26A-6.  Competitive sealed bidding.

 

         (a)     Conditions for use.  All contracts of the city shall be awarded by competitive sealed bidding except as otherwise provided in this chapter.

 

         (b)     Invitation for bids.  An invitation for bids shall be issued and shall include specifications, and all contractual terms and conditions applicable to the procurement.

 

         (c)     Public notice.  The procurement office shall develop and maintain a method for providing adequate notice of public bid solicitations, which shall identify the place, date and time of bid opening.  Notice of the bid solicitation shall be posted for public inspection and a copy of the bid solicitation shall be available for public inspection review in the procurement office.

 

         (d)    Late bids.  A bid is late if it is received at the location designated in the invitation for bids after the time and date set for bid opening.  A late bid shall be rejected and not considered, regardless of the reason for lateness, including circumstances beyond the control of the bidder.  A late bid shall not be opened, except (if necessary), for identification purposes.  Delivery and return of late bids shall be handled in the following manner:

 

                  (1)     If hand delivered, a late bid shall be refused and returned to the bidder with a late bid notice placed in the bid file;

 

                  (2)     If not hand delivered and electronically delivered, if available, record the time and date of receipt and bid shall be filed unopened within the procurement office for thirty (30) days.  The procurement administrator may discard the document within thirty (30) days after the recorded date unless the offeror requests the document be returned;

 

                  (3)     A late bid notice shall be mailed or electronically sent to the late bidder; and

 

                  (4)     The procurement office shall determine the method for bid issuance and for acceptable response delivery and so state in the invitation for bids document.

 

         (e)     Bid opening.  Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids.  The amount of each bid, and such other relevant information as the procurement administrator deems appropriate, together with the name of each bidder shall be recorded.  This record shall be open to public inspection.  The bids shall not be opened for public inspection until after a contract is awarded.  After contract award, the bids shall be available for public inspection, except to the extent that the withholding of information is permitted or required by law.  If the bidder designates a portion of its bid as confidential, it shall isolate and identify in writing the confidential portions in accordance with procedures set forth in this chapter, but the city remains subject to the Arizona public records law requirements.

 

         (f)     Bid acceptance and bid evaluation.  Bids shall be unconditionally accepted without alteration or correction, except as authorized in this chapter.  Bids shall be evaluated based on the requirements set forth in the invitations for bids.  No criteria may be used in bid evaluation that are not set forth in the invitation for bids.

 

         (g)     Correction or withdrawal of bids; cancellation of awards.  Correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, may be permitted where appropriate.  Mistakes discovered before bid opening may be modified or withdrawn by written notice received in the procurement office prior to the time set for bid opening.  After bid opening corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake of a non‑judgmental character was made, the nature of the mistake, and the bid price actually intended. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the city or fair competition shall be permitted.  All decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts based on bid mistakes, shall be supported by a written determination made by the procurement officer and approved by the procurement administrator.  In lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if:

 

                  (1)     The mistake is clearly evident on the face of the bid document but the intended correct bid is not similarly evident; or

 

                  (2)     The bidder submits evidence which clearly and convincingly demonstrates that a mistake was made. 

 

         (h)     Contract award.  The contract shall be awarded by appropriate written notice to the lowest responsible and responsive bidder whose bid conforms in all material respects to requirements and criteria set forth in the invitation for bids:

 

                  (1)     In evaluating the bids, and for purposes of determining the low bidder, the procurement office shall include the amount of applicable business privilege tax, except that the amount of city business privilege tax shall not be included in the evaluation.  Tempe privilege tax that is to be paid (returned) to the city shall be considered as a pass-through cost and calculated as zero expense to the city for evaluation purposes;

 

                  (2)     In the event the low responsive and responsible bid for a purchase exceeds available funds as certified by the procurement officer and budget office, and such bid does not exceed such funds by more than five percent (5%), the procurement office is authorized, when time or economic considerations preclude re‑solicitation of work of a reduced scope, to negotiate an adjustment of the bid price with the low responsive and responsible bidder, in order to bring the bid within the amount of available funds.  Any such negotiated adjustment shall be based only upon eliminating independent deductive items specified in the invitation for bids;

 

                  (3)     After contract award, bids shall be available for public inspection, except to the extent that the withholding of information is permitted or required by law.  If the bidder designates a portion of its bid as confidential, it shall isolate and identify in writing the confidential portions as designated in the definition of confidential information, but the city remains subject to the Arizona public records law;

 

                  (4)     The city, at its option, may not recommend for award the bid of a vendor who is in default on the payment of city taxes, licenses or other monies due the city at the time of bid opening;

 

                  (5)     The city, at its option, may not recommend for award the bid of a vendor who has defaulted on a previous contract with the city; or has defaulted on a similar contract with another jurisdiction or public entity during a past three (3) year period;

 

                  (6)     If there are two (2) or more low responsive bids from responsible bidders that are identical in price and that meet all the requirements and criteria set forth in the invitation for bids, award may be made by a coin toss; and

 

                  (7)     The procurement office shall procure recycled materials in accord with ordinances, resolutions and administrative directives of the city. 

(Ord. No. 97.55, 12-11-97; Ord. No. 2007.72, 10-25-07)

 


Sec. 26A-7.  Multi-step sealed bidding.

 

         (a)     General.  When it is considered impractical to initially prepare a specification to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been determined to be technically acceptable under the criteria set forth in the first solicitation.

 

         (b)     Multi-step sealed bidding.  Multi-step sealed bidding shall be initiated by the issuance of an invitation for bids.  The multi-step invitation for bids shall state:

 

                  (1)     That unpriced technical offers are requested;

 

                  (2)     Whether priced bids are to be submitted at the same time as unpriced technical offers; if they are, such priced bids shall be submitted in a separate sealed envelope;

 

                  (3)     That it is a multi-step sealed bid procurement, and priced bids will be considered only in the second phase and only from those bidders whose unpriced technical offers are found acceptable in the first phase;

 

                  (4)     The criteria to be used in the evaluation of the unpriced technical offers;

 

                  (5)     That the city, to the extent the procurement officer finds necessary, may conduct oral or written discussions of the unpriced technical offers;

 

                  (6)     That bidders may designate those portions of the unpriced technical offers which contain trade secrets or other proprietary data which are to remain confidential; and

 

                  (7)     That the item being procured shall be furnished in general accordance with the bidder's technical offer as found to be finally acceptable and shall meet the requirements of the invitation for bids.

 

         (c)     Amendments to the invitation for bids.  After receipt of unpriced technical offers, amendments to the invitation for bids shall be distributed only to bidders who submitted unpriced technical offers, and they shall be permitted to submit new unpriced technical offers or to amend those submitted.  If, in the opinion of the procurement officer, having obtained the procurement administrator's approval, a contemplated amendment will significantly change the nature of the procurement, the invitation for bids shall be cancelled and a new invitation for bids issued.

 

         (d)    Receipt and handling of unpriced technical offers.  Unpriced technical offers shall not be opened publicly but shall be opened in front of two (2) or more procurement officials.  Such offers shall not be disclosed to unauthorized persons.  Bidders may request non-disclosure of trade secrets and other proprietary data identified in writing.

 

         (e)     Evaluation of unpriced technical offers.  The unpriced technical offers submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the invitation for bids.  The unpriced technical offers shall be categorized as:

 

                  (1)     Acceptable;

 

                  (2)     Potentially acceptable, that is, reasonably susceptible of being made acceptable; or

 

                  (3)     Unacceptable.  The procurement officer shall record in writing the basis for finding an offer unacceptable and make it part of the procurement file.

 

         (f)     Initiation of phase two.  The procurement officer may initiate phase two of the procedure if, in the procurement officer's opinion, there are sufficient acceptable unpriced technical offers to assure effective price competition in the second phase without technical discussions.  If the procurement officer finds that such is not the case, the procurement officer shall issue an amendment to the invitation for bids or engage in technical discussions.

 

         (g)     Discussion of unpriced technical offers.  The procurement officer may conduct discussions with any bidder who submits an acceptable or potentially acceptable technical offer.  During the course of such discussions the procurement officer or members of the evaluation team shall not disclose any information derived from one unpriced technical offer to any other bidder.  Once discussions are begun, any bidder who has not been notified that its offer has been finally found unacceptable may submit supplemental information amending its technical offer at any time until the closing date established by the procurement officer.  Such submission may be made at the request of the procurement officer or upon the bidder's own initiative.

 

         (h)     Notice of unacceptable unpriced technical offer.  When the procurement officer determines a bidder's unpriced technical offer to be unacceptable, such offeror shall not be afforded an additional opportunity to supplement its technical offer.

 

         (i)      Mistakes during multi-step sealed bidding.  Mistakes may be corrected or bids may be withdrawn during phase one at any time.  During phase two, mistakes may be corrected or withdrawal permitted in accordance with subsection (c) above.

 

         (j)      Procedure for phase two initiation.  Upon the completion of phase one, the procurement officer shall either:

 

                  (1)     Open priced bids submitted in phase one (if priced bids were required to be submitted) from bidders whose unpriced technical offers were found to be acceptable; or

 

                  (2)     If priced bids have not been submitted, technical discussions have been held, or amendments to the invitations for bids have been issued, invite each acceptable bidder to submit a priced bid.

 

         (k)     Procedure for phase two conduct.  Phase two shall be conducted as any other competitive sealed bid procurement except:

 

                  (1)     No public notice need be given of this invitation to submit priced bids because such notice was previously given;

 

                  (2)     After award the unpriced technical offer of the successful bidder shall be disclosed as follows.  The procurement officer shall examine written requests of confidentiality for trade secrets and proprietary data in the technical offer of such bidder to determine the validity of any such requests.  If the parties do not agree as to the disclosure of data, the proc