Section 1400.2005  Competitive Sealed Bidding

a)         Application

Competitive sealed bidding is the required method of source selection except as allowed by this Part.  The provisions of this Section apply to every procurement required to be conducted by competitive sealed bidding.

b)         The Invitation for Bids

1)         Use.  The Invitation for Bids is used to initiate a competitive sealed bid procurement.

2)         Content.  The Invitation for Bids must include, at a minimum, the following:

A)        instructions and information to bidders concerning the bid submission requirements, including the time and date set for receipt of bids, the address of the office to which bids are to be delivered, the maximum time for bid acceptance by the Treasurer's office, and any other special information;

B)        the specification, evaluation factors, delivery or performance schedule, and any inspection and acceptance requirements as are not included in the specification; and

C)        the contract terms and conditions, including warranty, collateralization, bonding or other security requirements, as applicable.

3)         Incorporation by Reference.  The Invitation for Bids may incorporate documents by reference if the Invitation for Bids specifies where the documents can be obtained.

4)         Publication and Documentation of the Invitation for Bids.  The Invitation for Bids must be published as provided in Section 1400.1505 and made a part of the procurement file.

c)         Optional Bid Requirements

1)         Bid Form.  The Invitation for Bids may provide a form which includes a space in which the bid price may be inserted and which the bidder must sign and submit along with all other necessary submissions.

2)         Bid Samples and Descriptive Literature.

A)        Bid samples or descriptive literature may be required when it is necessary to evaluate required characteristics of the items bid.

B)        Unsolicited bid samples or descriptive literature submitted at the bidder's risk may not be examined or tested, will not be deemed to vary any of the provisions of the Invitation for Bids, and may not be utilized by the vendor to contest a decision or understanding with the Treasurer's office.

d)         Prequalification

1)         The Chief Procurement Officer may require that vendors be prequalified as a condition of being placed on the bid list.  Any bid lists developed will be updated by June 30 of each year.  Vendors will be given an opportunity to prequalify prior to each update of the list.  The opportunity to prequalify and whether prequalification will be a condition of being awarded a contract must be published as provided in Section 1400.1505.

2)         The fact that a prospective vendor has been prequalified does not necessarily represent a finding of responsibility for a particular procurement.

3)         Distribution of and responses to the solicitation may be limited to prequalified vendors and award of a contract may be denied because a vendor was not prequalified.

e)         Bidders' Conferences

Bidders' conferences may be conducted to enhance understanding of the procurement requirements.  The conferences must be announced to all prospective bidders known to have received an Invitation for Bids.  The conference may be designated as attendance mandatory or attendance optional.  The conference must be held long enough after the Invitation for Bids has been issued to allow bidders to become familiar with it, but sufficiently before bid opening to allow consideration of the conference results in preparing their bids.  Any questions posed in a bidders' conference shall be subsequently submitted in writing and, along with the answers, shall be published on the Treasurer's Web Site as provided in Section 1400.1505.  Nothing stated in the bidders' conference changes the Invitation for Bids unless a change is made by written amendment to the Invitation for Bids.  The Chief Procurement Officer shall cause a listing of all attendees at a bidders' conference to be prepared and made a part of the procurement file.

f)         Amendments to Invitations for Bids

1)         Form.  Amendments to Invitations for Bids must be identified and must require that the bidder acknowledge receipt of all amendments issued.  The amendment must reference the portions of the Invitation for Bids it amends.

2)         Distribution.  Amendments must be sent to all prospective bidders known to have received an Invitation for Bids.

3)         Timeliness.  Amendments must be distributed within a reasonable time to allow prospective bidders to consider them in preparing their bids.  If necessary, the Chief Procurement Officer may extend the response time in writing, or by e-mail or telephone and confirmed in writing.

g)         Pre-Opening, Modification or Withdrawal of Bids

1)         Procedure.  Bids may be modified or withdrawn by written notice received in the office designated in the Invitation for Bids prior to the time and date set for bid opening.  An e-mail modification or withdrawal, or withdrawal received by telephone prior to the time and date set for bid opening, will be effective if followed in writing.

2)         Disposition of Bid Security.  If a bid is withdrawn in accordance with this Section, the bid security, if any, will be returned to the bidder.

3)         Records.  All documents relating to the modification or withdrawal of bids must be made a part of the procurement file.

h)         Receipt, Opening and Recording of Bids

1)         Receipt.  Upon its receipt, each bid and modification must be recorded but not opened and must be stored in a secure place until the time and date set for bid opening.  If a bid is opened in error, the file must so state.

2)         Opening and Recording.

A)        Bids and modifications must be opened publicly, in the presence of one or more witnesses, at the time, date and place designated in the Invitation for Bids.  The name of each bidder, the bid price and any other information that the Chief Procurement Officer deems appropriate must be recorded.

B)        The winning bid must be available for public inspection after award, along with the record of the other bids.

i)          Bid Evaluation and Award

1)         General.  The contract is to be awarded to the lowest bid by a responsible and responsive bidder, unless otherwise permitted in this subsection (i).  No bid may be evaluated for any requirements or criteria that are not disclosed in the Invitation for Bids.

2)         Determination of Bidder as Responsible and Responsive.  The Chief Procurement Officer shall reach the determination of whether each bidder is responsible and responsive.  The determination must be conducted to determine whether each bid is acceptable and appropriate for further evaluation and not for the purpose of determining whether one bidder's product or service capability is superior to another.  If any bidder is determined to be nonresponsive and/or not responsible, that determination shall be reduced to writing and made part of the procurement file.

3)         Product Quality or Service Capability.  The Chief Procurement Officer shall also evaluate and make a notation of any differences in the product quality or service capability among the responsible and responsive bidders before reaching the determination of the lowest bidder.

4)         Determination of Lowest Responsible and Responsive Bidder.  Bids must be evaluated to determine which responsible and responsive bidder offers the lowest cost to the State in accordance with the evaluation criteria in the Invitation for Bids.  Only objectively measurable criteria in the Invitation for Bids may be applied in determining the lowest bidder.

5)         Award.  The Chief Procurement Officer shall award the contract to the lowest responsible and responsive bidder, unless the differences in product quality or service capability suggest that the selection of another bid is in the best interest of the State.

6)         Price Negotiation. The Chief Procurement Officer or designee may negotiate with the low bidder to obtain a lower price for the item bid.

j)          Notification, Publication and Documentation of Award

Following the award, a notice of contract must be provided to the successful bidder, published as provided in Section 1400.1505, and made a part of the procurement file. The notice of contract awarded must indicate if a bidder other than the lowest responsible and responsive bidder was selected and the basis for the selection.

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)