Solicitation Approaches - 1405.1

Informal vs. Formal 

Solicitations are documents used to request quotes, offers, bids, or proposals from suppliers and are characterized as either informal or formal.

Informal solicitations are generally straightforward or uncomplicated and usually of lower dollar value and may be conducted using a solicitation vehicle such as the Request for Quotations (RFQ) or Invitation for Bids (IFB), depending on the degree of specific language needed.

The following table provides the dollar thresholds for identifying the informal dollar thresholds when using the competitive acquisition method:

Acquisition Type	Informal Competitive Solicitation Dollar Value
Non-IT Goods	$100,000.00 and less
IT Goods	$1,000,000.00 and less
IT Services	$1,000,000.00 and less

Warning:  IT goods and/or services informal solicitations valued from $100,000.01 to $1,000,000 require specific solicitation language for protest and award procedures.

Phone Quotes 

Informal solicitations for goods valued less than $50,000.00 or for services valued less than $4,999.99 may be conducted by phone.

The phone quote solicitation requires preparation of a “script” or narrative of the requirements so that each bidder is informed equally and quotes can be evaluated fairly.  The “script” must include referring bidders to the PD web page to read the current bidder instructions and applicable general provisions associated with the purchase. The quotes received over the phone are documented using the recommended Bid/Quote Worksheet. Both the script and the bid/quote worksheet must be retained in the procurement file.

A phone quote would not be an acceptable method for conducting a solicitation if the service portion (set-up, installation, etc.) of the purchase exceeds $4,999.99 or if the combined purchase amount (goods and services) exceeds $50,000.

Click here for a sample Bid/Quote Worksheet.

Written Solicitations

Informal solicitations may be conducted using written solicitation formats. There are instances where an informal solicitation must be written such as:

Any solicitation that is advertised in the CSCR.

Any goods transaction that exceeds $50,000.00.

Any IT service transaction that exceeds $4,999.99.

Written solicitations may be distributed by fax, mail, electronically or by other means such as a supplier picking up the solicitation in person. It is recommended that whatever delivery method is used, the activity is documented in the procurement file.

Click here for sample templates of the RFQ: IT Goods and/or Services, IT Goods Only, Non-IT Goods

Supplier Signatures

For any written solicitation, supplier quote and/or bid responses regardless of dollar value; solicitation format or delivery method (i.e., fax, electronically, mailed or delivered in person) must include the signature of an authorized supplier representative of the bidder.

“Faxed” signatures are acceptable for solicitation as allowed by the pertinent delivery method. Faxing would not apply in a formal IT value-effective solicitation response that requires separate volumes for administrative/technical and cost (which must be separately sealed until the administrative and technical requirements are evaluated).

For phone quote solicitations, supplier signatures are not required; however, the supplier representative name providing the quote must be documented in the procurement file.

Mailing List

Mailing lists may be established using a variety of means to locate potential suppliers. The selection of suppliers should be varied to broaden the supplier base and increase competition. Certified SB’s and certified DVBEs should be solicited whenever possible. Resources available to identify and/or establish lists are:

• Phone books
• Referenced supplier/manufacturer
• Other agencies who uses similar products
• Federal, State, Counties, Cities SB and DVBE databases
• Request for Information (RFI)
• Internet search
• Local trade unions
• Chamber of commerce
• Industry listings
• LPA databases
• Certified SB and DVBE firms database
• Recommendations from customers

Lists are generally used for informal solicitations. However, mailing lists may be used in addition to advertising for formal solicitations.

Faxing Bid Responses

The following paragraph must be included in all written competitive acquisition methods when suppliers are allowed to fax their bids:

“Facsimile machine bids will be considered only if they are sent to (insert office fax number) for solicitations originating from the (department office location). Bids sent to any other (department unit name) fax number will not be considered. To be considered, all pages of the faxed bid that are received prior to the bid opening time specified in the bid will be considered “the complete bid”. Please be advised that there is a heavy demand placed on the fax machine receiving bids. The State assumes no responsibility if a supplier cannot transmit their bid via fax or if the entire bid is not received prior to the bid opening time.”

When a buyer receives a faxed bid, the buyer must directly enter the information into the FI$Cal System.

Note:  Faxing is not allowed for IT solicitations that:

• Use the IFB (when services are included that must be evaluated for value-effectiveness)
• Use the RFP format and require cost to be separately sealed
• Are valued over $500,000 and being evaluated for low net cost

Acceptance of Fax Bids

Fax bids will only be accepted when:

1. The solicitation specifically states they will be allowed.
2. Received on the fax machine designated by phone number in the solicitation document); and,
3. Completely received prior to the bid opening time indicated on the solicitation.
   1. The internal clock of the receiving fax machine will be the time by which the official time of receipt will be determined.
   2. Fax bids will be determined to be complete only when they:
      1. Contain all information necessary to evaluate the bid and
      2. Meet all requirements of the solicitation.

Seal FAX Bid Immediately

The Fax bid will be sealed immediately upon receipt and remain sealed until bid opening.  The State will not assume responsibility for a bidder’s inability to fully transmit their Fax bid.  The bidder assumes full responsibility for timely transmission and receipt by the State prior to the bid opening time.  Inability to transmit a bid because of usage and/or possible mechanical problems of the receiving fax machine (which can be unpredictable) will not relieve a bidder of this responsibility.