Formal Advertised Bid and Price Quotation Process

POLICY

In accordance with State requirements (California Education Code Section 81640 and Public Contract 20651), Antelope Valley Community College District requires that a formal advertised bid or price quotation process be followed in all instances where goods or services exceeding certain cost limits are made.  Any employee who commits the District to a purchase, sale, lease, or other arrangement without proper authorization may be held personally liable for the transaction.  Employees may not use District funds to make any purchases for personal or private use.  All bids, whether verbal or in writing, must remain confidential to preserve a competitive and fair process.  District employees outside the Business Services Area are not authorized to negotiate vendor pricing, contracts, and/or agreements without involvement of the Purchasing Department, or pre-approval from the Executive Director of Business Services.

SCOPE

This policy applies to all Antelope Valley Community College District employees whose request for purchases from external vendors exceed established cost limits. 

REASON FOR POLICY

This policy is designed to ensure:

• Appropriate stewardship of Antelope Valley Community College District assets
• Integrity when acquiring goods and services
• Accountability to funding sources
• Procurement of goods and services at the lowest cost consistent with the quality, delivery, and service required
• Fulfillment of the District’s needs in a timely, efficient, and properly controlled manner
• Compliance within the parameters set forth by California Public Contract Code, the IRS, and any other applicable laws
• Fair and competitive acquisition processes
• Adherence to ethical business practice

PROCEDURE

Purchases for equipment, materials, supplies, maintenance services, and miscellaneous biddable services:

1. Greater Than or Equal to $1,000 and Less Than $85,999
   
   A minimum of three written quotations must be obtained with the requester being responsible to obtain a minimum of one quote.  If only one quote is obtained and submitted by the Requester, the Purchasing Department will obtain the additional two price quotations if there is adequate lead time.
   1. Step 1:  Requisition
      Using PeopleSoft, initiate a Requisition for a Purchase Order and attach a minimum of one quote.  All portions of the requisition must be complete; see the PeopleSoft Requisition guide for reference.
      
      Purchasing will obtain additional quotes as necessary and evaluate them to determine the lowest responsible bidder.
   2. Step 2:  Purchase Order
      Once a Requisition has gone through workflow (the approval process), all necessary quotes have been obtained, and a vendor determined, the Requisition will be processed into a Purchase Order. Please note that it takes 1-2 weeks for a Requisition to be processed into a Purchase Order and this time may be extended depending on the response time from Vendors regarding quotation requests.
      
      If noted in the header comments section of the Requisition, a copy of the Purchase Order will be sent to the Vendor.
   3. Step 3:  Payment of Purchase Orders
      Antelope Valley Community College District’s standard payment terms are Net 30, meaning payment is due in 30 days.  Antelope Valley Community College District is not a tax-exempt organization, and pays all applicable California State sales tax on purchases. 
      
      Merchandise delivered to the Warehouse will be received in PeopleSoft and inspected.  The Warehouse department forwards a receiving document to Accounts Payable, receives the merchandise in PeopleSoft, and delivers it to the requester.  Once the requester receives the ordered they should also inspect the merchandise for shortages, overages, damage, or other inconsistencies and notify the Purchasing Department immediately if found.  The Purchasing and Warehouse department will work together to coordinate the return of merchandise directly with the vendor and requester.
      
      Once the Requester receives the merchandise they must notify the Accounts Payable department that it is okay to pay any incoming invoices.  This can be done one of two ways:
      1. Email accounts_payable@avc.edu with the following information: REQ and/or PO #, that all or part (including which part) of the order has been received, and that it is okay to pay.
      2. Print a copy of the Requisition, sign, date, note “OK to Pay,” and then forward paperwork to Accounts Payable. 
      
      

      Any invoices received by the Requester should be forwarded as soon as possible to Accounts Payable for processing.  The requester will be asked to make changes to the Requisition if the invoice notes any changes in price or additional expenses such as freight.

2. Greater Than or Equal to $84,000
   
   The District must go out for Formal Advertised Bid if there are no state contracts available.  The bid must follow the District’s request for proposal (RFP) process:
   

   *If requester is unable to provide general specifications, the Purchasing Department will develop a Two-Step Formal Advertised Bid.

   1. Requesters must submit a Request for Proposal (RFP) Information form to the Purchasing Department.  The form requires such information as:
      • Brief Description of products/services to be purchased
      • Additional bid instructions/conditions
      • General Specifications of products or services to be purchased*
      • Evaluation Criteria other than price
      • Background on why products/services are needed
      • Vendors to send RFP to
      • Date products/services need to be delivered/performed by
   2. The Purchasing Department will gather additional information from the Requester as needed to prepare and advertise the RFP.
   3. After the RFP has been advertised and the due date/time that the bids are to be submitted by vendors has passed, the Purchasing Department will perform a public bid reading as specified in the RFP.
   4. The Purchasing Department will then send copies of the bids received to the Technical Expert (usually the requester) for review and to determine vendor’s conformance to specifications; the Purchasing Department will determine vendor’s conformance to the District’s terms and conditions.
   5. Within 60 days of the bid opening, the Purchasing Department will determine the vendor to award the bid to.
   6. If necessary, the Purchasing Department will forward a contract or agreement to the vendor for the equipment/service to be purchased.
   7. The Purchasing Department and Requester will prepare the board communication for the next scheduled board meeting.
   8. The Requester will submit a Requisition through PeopleSoft for the bid to be awarded noting the RFP # in the comments.  Once Requisition is approved, Purchasing will source the Requisition into a Purchase Order.
   9. After board approves the selection by the Purchasing Department, the Purchase Order will be forwarded to the vendor along with all other necessary documentation.

    

Purchases for Public/Construction Project - facility construction, alteration, renovation, demolition, painting, repair, or professional services:

1. Greater Than or Equal to $1,000 and Less Than $15,000
   
   A minimum of three written quotations must be obtained with the requester being responsible to obtain a minimum of one quote.  If only one quote is obtained and submitted by the Requester, the Purchasing Department will obtain the additional two price quotations if there is adequate lead time.
   1. Step 1:  Requisition
      Using PeopleSoft, initiate a Requisition for a Purchase Order and attach a minimum of one quote.  All portions of the requisition must be complete; see the PeopleSoft Requisition guide for reference.
      
      Purchasing will obtain additional quotes as necessary and evaluate them to determine the lowest responsible bidder.
   2. Step 2:  Purchase Order
      Once a Requisition has gone through workflow (the approval process), all necessary quotes have been obtained, and a vendor determined, the Requisition will be processed into a Purchase Order. Please note that it takes 1-2 weeks for a Requisition to be processed into a Purchase Order and this time may be extended depending on the response time from Vendors regarding quotation requests.
      
      If noted in the header comments section of the Requisition, a copy of the Purchase Order will be sent to the Vendor.
   3. Step 3:  Payment of Purchase Orders
      Antelope Valley Community College District’s standard payment terms are Net 30, meaning payment is due in 30 days.  Antelope Valley Community College District is not a tax-exempt organization, and pays all applicable California State sales tax on purchases. 
      
      Merchandise delivered to the Warehouse will be received in PeopleSoft and inspected.  The Warehouse department forwards a receiving document to Accounts Payable, receives the merchandise in PeopleSoft, and delivers it to the requester.  Once the requester receives the ordered they should also inspect the merchandise for shortages, overages, damage, or other inconsistencies and notify the Purchasing Department immediately if found.  The Purchasing and Warehouse department will work together to coordinate the return of merchandise directly with the vendor and requester.
      
      Once the Requester receives the merchandise they must notify the Accounts Payable department that it is okay to pay any incoming invoices.  This can be done one of two ways:
      1. Email accounts_payable@avc.edu with the following information: REQ and/or PO #, that all or part (including which part) of the order has been received, and that it is okay to pay.
      2. Print a copy of the Requisition, sign, date, note “OK to Pay,” and then forward paperwork to Accounts Payable. 
      
      

      Any invoices received by the Requester should be forwarded as soon as possible to Accounts Payable for processing.  The requester will be asked to make changes to the Requisition if the invoice notes any changes in price or additional expenses such as freight.

2. Greater Than or Equal to $15,000
   
   The District must go out for Formal Advertised Bid if there are no state contracts available.  The bid must follow the District’s request for proposal (RFP) process:
   

   *If requester is unable to provide general specifications, the Purchasing Department will develop a Two-Step Formal Advertised Bid.

   1. Requesters must submit a Request for Proposal (RFP) Information form to the Purchasing Department.  The form requires such information as:
      • Brief Description of products/services to be purchased
      • Additional bid instructions/conditions
      • General Specifications of products or services to be purchased*
      • Evaluation Criteria other than price
      • Background on why products/services are needed
      • Vendors to send RFP to
      • Date products/services need to be delivered/performed by
   2. The Purchasing Department will gather additional information from the Requester as needed to prepare and advertise the RFP.
   3. After the RFP has been advertised and the due date/time that the bids are to be submitted by vendors has passed, the Purchasing Department will perform a public bid reading as specified in the RFP.
   4. The Purchasing Department will then send copies of the bids received to the Technical Expert (usually the requester) for review and to determine vendor’s conformance to specifications; the Purchasing Department will determine vendor’s conformance to the District’s terms and conditions.
   5. Within 60 days of the bid opening, the Purchasing Department will determine the vendor to award the bid to.
   6. If necessary, the Purchasing Department will forward a contract or agreement to the vendor for the equipment/service to be purchased.
   7. The Purchasing Department and Requester will prepare the board communication for the next scheduled board meeting.
   8. The Requester will submit a Requisition through PeopleSoft for the bid to be awarded noting the RFP # in the comments.  Once Requisition is approved, Purchasing will source the Requisition into a Purchase Order.
   9. After board approves the selection by the Purchasing Department, the Purchase Order will be forwarded to the vendor along with all other necessary documentation.

Exceptions to Formal Advertised Bidding and Price Quotations

1. Purchases Less Than $1,000
   
   Competitive bids and price quotation processes are not required, although every attempt should be made to obtain the best value for any purchase by following best purchasing practices. Please refer to the Purchasing Department’s policy for the general purchasing process.  The Purchasing Department may choose to obtain quotes from vendors other than selected on Requisition by requester.
2. “Piggybacking” on other Public Agency Contracts
   
   In accordance with State requirements (Public Contract Code Sections 20652 and 20653), items purchased through State contract are exempt from bidding at the discretion of the Purchasing Department.  If state contracting is followed, the District does not need to seek bidding or price quotations.  Please refer to the California Procurement Division website for a list of Statewide Contracts, http://www.bidsync.com/DPX?ac=agencycontlist&foroid=307818.
   
   Although bidding and solicitation of price quotations is not required, through the competitive bid or price quotation process, the District may be able to obtain better pricing than state contract pricing.  The Purchasing Department may choose to check prices with vendors who are not on the state contract list.  If a vendor’s price is lower than prices on the state contract list, the competitive bid process must be followed.
3. Sole Source Purchases
   
   Approval for sole source purchases, as described in Public Contract Code Section for 3400, must be obtained from the Purchasing Department.  In case of reasonable doubt, the Purchasing Department will seek vendors that can provide the needed goods or services.   If more than one vendor is located, the District is required to solicit competitive pricing.
   
   Requesters must substantiate the reason for a sole source purchase by submitting a Sole Source Justification form to the Purchasing Department. When adequate rationale for sole source purchases cannot be provided, the Purchasing Department will not approve the purchase and the goods and/or services will be obtained through the bidding or price quotation process.
   
   Examples of circumstances that could necessitate sole source procurement include:
   • The compatibility of equipment, accessories, or replacement parts is the paramount consideration;
   • A sole supplier item is needed for trial use or testing; or
   • The service to be provided is from a public utility

RESPONSIBILITY

It is the responsibility of all Antelope Valley Community College District employees wishing to solicit bids or written quotations to comply with the provisions of this policy.

RESOURCES/QUESTIONS

For any questions or additional information, please contact the Purchasing Department, (661) 722-6300 ext. 6310.

Please note that other Antelope Valley Community College District policies may apply or be related to this policy.

California Education Code

Public Contract Code

DEFINITIONS

Bid – A competitive process involving a written price evaluation.

Goods – Any tangible product (e.g. equipment, supplies, books, or other products) used in the daily operation of College business.

General Specifications (i.e. salient characteristics, attributes) – List of specific qualities essential to a piece of equipment or a service.

Quote – A non-competitive process involving a written price valuation.

Responsible Vendor – Prospective vendors who have the capability to perform contract requirements in full and whose integrity and reliability will assure good faith performance. Factors considered in evaluating responsibility may include financial resources, past performance, delivery capability, experience, organization, personnel, technical skills, operation controls, equipment, and facilities.

Responsive Bidder – A vendor who has submitted a bid or proposal that conforms in all material respects to the request for proposal (RFP).

Request for Proposal (RFP) – The document used to invite vendors to bid on a project that involves services to be rendered. All proposals are evaluated on dollar amount, quality, delivery, or other criteria.

Services – Any deliverable resulting from labor performed specifically for the College, including application of physical or intellectual skills. Services include repair work, consulting, maintenance, data processing, custom software design or coding, etc.

Sole Source –A product or service that is practicably available from only one source.