Header:
CODE OF RHODE ISLAND RULES
AGENCY 38. RHODE ISLAND AIRPORT CORPORATION
SUB-AGENCY 010. GENERAL
CHAPTER 001. PROCUREMENT RULES
Date:
08/31/2009
Document:
38 010 001. PROCUREMENT RULES
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6.7 SOLICITATION METHODOLOGY
6.7.1 Procurements in Excess of $ 1,000. Competitive offers shall be solicited for all procurements with a value greater than $ 1,000 except under specifically prescribed circumstances set forth herein.
6.7.2 [37-2-22] Small Purchases. Procurements not to exceed an aggregate amount of twenty-thousand dollars ($ 20,000) for construction and five thousand dollars ($ 5,000) for other purchases may be made in accordance with the following small purchase regulations set forth below. Procurement requirements shall not be artificially divided so as to constitute a small purchase under this section. Small purchases may be effectuated through the use of procurement cards issued by the Purchasing Agent.
6.7.2.1 Small construction purchases shall include building, altering, repairing, improving or demolishing buildings or other improvements to real property. Small construction purchases shall not include routine maintenance or repair of existing structures, buildings, or real property performed by salaried employees of RIAC in the usual course of their jobs.
6.7.3 Three Bid Minimum. Competitive bids shall be obtained from a sufficient number of suppliers to be considered representative of the industry cited. Although three bids shall be considered the minimum, the RIAC Purchasing Agent may in some instances declare the existence of two bids to be considered to provide adequate price competition. The determination shall be made in writing and placed in the bid file.
6.7.4 [37-2-18(1)/22] Sealed, Written Competitive Bids in Excess of $ 20,000 for Construction Contracts and $ 5,000 for All Others. Sealed written competitive bids shall be required for purchase orders exceeding twenty-thousand dollars ($ 20,000) for construction contracts and five thousand dollars ($ 5,000) for all other purchases unless such method is not practicable.
6.7.4.1 [37-2-18(1)] Factors in Determining Whether Practicable - Factors to be considered in determining if competitive sealed bidding is practicable shall include whether specifications can be prepared which permit award on the basis of either the lowest bid price or the lowest evaluated bid price, the available sources, the time and place of performance, and other relevant circumstances appropriate for the use of competitive sealed bidding.
6.7.4.2 [37-2-18(3)] Adequate Public Notice - 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 consist of a written invitation soliciting quotations from suppliers on RIAC's approved vendors list. Such notice may include publication in a newspaper of general circulation in the State of Rhode Island as determined by the RIAC Executive Director not less than seven (7) days nor more than twenty-one (21) days before the date set for the opening of the bids. The RIAC Executive Director may make a written determination that there is a need to waive the twenty-one (21) day limitation. 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.
6.7.4.3 [37-2-18(4)] Opening of Bids - 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 as soon as practicable thereafter. 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.
6.7.5 Formal Competitive Bids
6.7.5.1 Procurements in Excess of $ 2,500: Written Quotation - Except under emergency circumstances, competitive bids shall be obtained in the form of written quotations for all procurements exceeding two thousand five hundred dollars ($ 2,500).
6.7.5.2 Characteristics of Formal Bids - A formal bid shall be distinguished by the solicitation of a minimum of three selected bidders who are potential suppliers for the commodity or service to be procured.
6.7.6 Informal Competitive Bids
6.7.6.1 Procurements Less Than $ 2,500, Oral Quotations - Oral quotations (including telephone) may be solicited for purchase orders with a value less than two thousand five hundred dollars ($ 2,500). If RIAC is unable to verify prices using published lists/catalogs or by market analysis, the lowest quotation obtained by telephone solicitation for procurements exceeding one thousand dollars ($ 1,000) shall be confirmed in writing.
6.7.6.2 Characteristics of Informal Bids - An informal bid shall be distinguished by:
6.7.6.2.1 lack of a specific time by which bids must be submitted;
6.7.6.2.2 lack of sealed written bids; quotes may be oral on the spot or by telephone and confirmed at a later date in writing;
6.7.6.2.3 lack of an opening and reading of bids; and
6.7.6.2.4 the solicitation of selected registered or unregistered bidders who are potential suppliers for the commodity or service to be procured and/or vendors suggested for consideration by RIAC.
6.7.6.3 Three Bid Minimum - Informal bids shall be solicited from a minimum of three suppliers.
6.7.6.4 Maximizing Participation - All informal bid invitations shall be conducted in such fashion as to maximize the opportunity for participation of all responsible suppliers.
6.7.6.5 Equitable Distribution - For those purchases not affected by regional considerations, requests for quotations (RFQs) shall be distributed equitably among various responsible suppliers. Where practical, a quotation will be solicited from other than the previous supplier prior to placing a repeat order.
6.7.6.6 Written Justification - When informal competitive bids are received in accordance with the provisions contained herein and award is not made to the low bidder, the purchase order file shall be annotated with statements of how the supplier was selected and why the price is fair and reasonable.
6.7.6.7 Quarterly Audit - RIAC purchasing management shall audit the use of informal competitive bids. As a minimum, quarterly review of performance by buyers should be conducted to sample (on a random basis) the reasonableness and effectiveness of buyer use and documentation of the informal bid process.
6.7.7 Requests for Proposals
6.7.7.1 When Used - Requests for Proposals (RFPs) shall be utilized to solicit competitive offers in all cases where:
6.7.7.1.1 Lowest price is not the sole or primary consideration to be used in determining an award;
6.7.7.1.2 Performance is neither specific nor objective, and open to the offeror's interpretation;
6.7.7.1.3 It is otherwise anticipated that offers may be substantially different and that there is insufficient common ground for objective comparison; or
6.7.7.1.4 It is anticipated that changes will be made after proposals are opened and that the nature of the proposals and/or prices offered will be negotiated prior to award.
6.7.7.2 Criteria to be Used - Wherever possible, the Request for Proposals shall define the performance or benefit required and shall set forth specific criteria to be utilized in evaluation of offers.
6.7.7.3 How Offers Evaluated - Offers shall be evaluated by a committee comprised of representatives of RIAC on the basis of:
6.7.7.3.1 The qualifications of the offerors, established by professional accomplishment and previous experience;
6.7.7.3.2 Aspects of offers which provide benefit, other than those based on cost; and
6.7.7.3.3 Other provisions of offers which are determined to serve the best interests of RIAC.
6.7.7.4 Award Solely on Basis of Cost - Nothing herein shall be construed to preclude the possibility of determining an award solely on the basis of cost.
6.7.7.5 Full Documentation - The evaluation of offers, including the weight assigned to various aspects of the offers, and all award determinations, including the reasons for a selection recommendation, shall be fully documented.
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10.5 EMERGENCIES
[37-2-21(b)] Notwithstanding any other provision of the State Purchases Act or these procurement rules, the RIAC Executive Director may make or authorize others to make emergency procurements when there exists a threat to public health, welfare or safety under emergency conditions as defined in regulations; provided, that such emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the contractor shall be included in the contract file.
10.5.1 Remedy or Repair Exceeding $ 1000. In accordance with procedures established by the RIAC Purchasing Agent, authorized officials of RIAC shall be permitted to react quickly to critical situations when the cost for a remedy or repair is in excess of $ 1000 and there is not sufficient time to undertake a public, formal, or informal bidding process.
10.5.2 What Constitutes an Emergency. An emergency shall mean a situation to which urgent response is required. Immediate dangers to health and safety, threats to property and necessary functions, and failures of critical equipment constitute emergencies.
10.5.3 Inadequate Anticipation. Inadequate anticipation of need shall not be considered justification for "emergency" purchases.
10.5.4 Commitments Beyond Emergency. Commitments that extend beyond the immediate response to the emergency shall be prohibited, i.e., prevention of future problems by corrective measures other than the immediate restoration of function must be pursued through the competitive purchasing process.
10.5.5 State Emergency Response List. The State Office of Purchases shall establish, through competitive bidding, a list of emergency response vendors and shall make such list available to RIAC.
10.5.5.1 When possible, RIAC shall obtain services from a list of vendors selected by competitive process to provide specialized trade in emergencies.
10.5.5.2 If an emergency cannot be addressed by a designated vendor, the Office of Purchases shall assist in obtaining names and telephone numbers of responsible vendors.
10.5.6 Emergency Response Officer. Upon determination of the existence of an emergency, RIAC's [designated emergency response officer] shall consult with the RIAC Purchasing Agent before committing to a particular vendor. The RIAC Purchasing Agent shall maintain logs of all oral confirmations of authorization to proceed.
10.5.7 Emergency Outside of Business Hours. If the emergency occurs outside of business hours for the RIAC division of purchases, RIAC shall be authorized to proceed in accordance with the principles and policies of sound procurement practices outlined herein.
10.5.8 Documentation. All emergency purchases shall be documented in accordance with procedures established by the RIAC Purchasing Agent. RIAC shall maintain documentation for the emergency situation and response action in writing. All emergency documentation forms shall be signed by either the RIAC Executive Director or the designated emergency response official.
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**Note: Only the section analyzed by the PHASYS team is included here as the entire regulation exceeded ~100 pages.
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