General Requirements - 1402.1

Procurement Standards

Departments granted purchasing authority to conduct competitive procurements for non-IT goods and IT goods and services will do so in a manner that promotes open, fair and equal competition among prospective suppliers.

Supplier Treatment

Buyers conducting competitive procurements shall provide qualified suppliers with a fair opportunity to participate in the competitive acquisition process, stimulating competition in a manner conducive to sound State fiscal practices emphasizing the elimination of favoritism, fraud, and corruption in awarding contracts.

Per Transaction Thresholds

Competitive procurements conducted under purchasing authority for non-IT goods or IT goods and services may not exceed the dollar thresholds as authorized by DGS/PD to the individual department, as identified on the department’s Purchasing Authority Approval Letter (PAAL).

With the exception of the SB/DVBE Option, dollar thresholds exclude sales and use tax, finance charges, postage and handling.

Shipping charges are included in the dollar threshold limits during the evaluation when the freight terms are FOB Origin, Freight Collect, FOB Destination, or Freight Prepaid/Add.

When a transaction exceeds or is expected to exceed a department’s approved authority threshold, the department will send a requisition to DGS/One-Time Acquisitions Unit (OTA) through workflow in FI$Cal for processing.

Confidentiality of Information

The general premise for confidentiality is that all information must remain confidential and secured during the development and management of the competitive acquisition, through the evaluation, and up to the award.

When there is a public bid opening, the price portion of the proposal becomes public. In some cases, such as the Alternative Protest Process (APP), final proposals are made public when the intent to award is published.  In these cases the contents of all bids, proposals, draft bids, correspondence, agenda, memoranda, working papers, or any other medium which discloses any aspect of a bidder’s proposal or bid shall be held in the strictest confidence until the notice of intent to award is issued.

A proposal marked “Confidential” or “Proprietary” may be rejected, and marking it as such does not keep the document(s) from being released as part of the public record following issuance of the notice of intent to award for formal solicitations or award of informal solicitations.  In order to prevent the release of documents marked “confidential” or “proprietary,” it is the bidder’s responsibility to obtain a court order that directs the State not to release the document(s).

Any disclosure of confidential information by the bidder during the procurement process is a basis for rejecting the bidder’s proposal and finding the bidder ineligible.  Any disclosure of confidential information by a state employee during the procurement process is a basis for disciplinary action, including dismissal from State employment, as provided by Government Code (GC), Section 19570 et seq.  Total confidentiality during the procurement process is vital to preserve the integrity of the process. It cannot be over emphasized.

Who Should Sign Confidentiality Statements

Procurement officials (also referred to as "buyers") and bidders should be aware that any information submitted, may be subject to the Public Records Act at any point during the procurement process.

During the development, procurement officials are not to provide and unfair advantage to suppliers.

In addition to the buyer, competitive acquisitions can involve a team that may be internal and/or external to the department, in the solicitation development, evaluation, and selection process, as well as other personnel on a “need to know” basis.  All of these personnel must sign confidentiality statements.  The signed statements must be retained within the procurement file.

A confidentiality statement should include statements that the person signing the confidentiality statement:

• Certifies that he/she has no personal or financial interest and no present or past employment or activity which would be incompatible with my participation in any activity related to the planning or procurement processes for the project or procurement
• Agrees that no gift, benefit, gratuity or consideration will be accepted, or a personal or financial interest in a party who is bidding/proposing, or associated with a bidder/proposer initiated on a project or procurement
• Certifies that all information concerning the planning, processes, development or procedures of the project or procurement will be kept confidential and secure
• Certifies that no copy or disclosure of information will be made to any other party who has not signed a copy of this confidentiality agreement with the exception of DGS/OLS and oversight agencies
• Understands that the information to be kept confidential includes, but is not limited to, specifications, administrative requirements, and terms and conditions. This includes concepts and discussions as well as written or electronic materials
• Understands that if he/she leaves the project or procurement before it ends, that all project or procurement information must still be kept confidential
• Agrees that any instructions provided by the project or procurement relating to the confidentiality of project information will be followed
• Fully understand that any unauthorized disclosure he/she makes may be a basis for civil or criminal penalties and/or disciplinary action (including dismissal for State employees)
• Agrees to immediately advise the buyer in the event that he/she either learns or has reason to believe that any person who has access to confidential project or procurement information has or intends to disclose that information in violation of this agreement

The person signing the confidentiality statement should also provide the following information:

• Date
• Signature
• Printed Name
• Title
• Organization
• Telephone Number
• Fax Number
• Email address

Click here to access a sample confidentiality policy.

Click here to access a sample confidentiality statement.

Confidentiality of Data Made Available to the Contractor

Contracts and solicitation documents may include a version of the following paragraph customized as appropriate to the situation.

“All financial, statistical, personal, technical, and other information relating to the State's operations, which are designated confidential by the State and made available to the contractor in order to carry out this contract, shall be protected by the contractor from unauthorized use and disclosure by the observance of the same or more effective procedural requirements as are applicable to the State.  The identification of all such confidential data and information as well as the State's procedural requirements for protection of such data and information from unauthorized use and disclosure will be provided by the State in writing to the Contractor.  If the methods and procedures employed by the Contractor for the protection of the contractor’s data and information are deemed by the State to be appropriate, such methods and procedures may be used, with the written consent of the State, to carry out the intent of this paragraph.  The Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information that is or becomes publicly available, is already rightfully in the Contractor’s possession, is independently developed by the contractor outside the scope of this Contract, or is rightfully obtained from third parties”.

Supplier Recrimination Will Not Be Tolerated

Departments shall not condone recriminations against suppliers who request information regarding a bid response or who request information regarding specifications required in any contract.