Chapter 296

2005 -- S 1114

Enacted 07/15/05

 

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

     

     Introduced By: Senator Daniel DaPonte

     Date Introduced: May 19, 2005

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 37-2-15, 37-2-17, 37-2-17.1 and 37-2-18 of the General Laws in

Chapter 37-2 entitled "State Purchases" are hereby amended to read as follows:

 

     37-2-15. Source selection and contract formation -- Statutory provisions. -- As used

in this chapter unless the context in which they are used clearly requires a different meaning:

      (1) "Cost-reimbursement contract" shall mean a contract under which the state

reimburses the contractor for those contract costs, within a stated ceiling, which are allowable and

allocable in accordance with cost principles (as provided in section 37-2-43), and a fixed fee, if

any.

      (2) "Established catalogue price" shall mean the price included in the most current

catalogue, price list, schedule, or other form that:

      (i) Is regularly maintained by the manufacturer or vendor of an item;

      (ii) Is either published or otherwise available for inspection by customers;

      (iii) States prices at which sales are currently or were last made to a significant number

of buyers constituting the general buying public for that item; and

      (iv) States prices which are obtained from the most recent industry wide publications and

informational journals if any.

      (3) "Evaluated bid price" shall mean the dollar amount of a bid, after bid price

adjustments are made pursuant to objective measurable criteria, set forth in the invitation for bids,

which affect the economy and effectiveness in the operation or use of the product, such as

reliability, maintainability, useful life, and residual value.

      (4) "Invitation for bids" shall mean all documents, whether attached or incorporated by

reference, utilized for soliciting bids in accordance with the procedures set forth in section

sections 37-2-18 and 37-2-18.1.

      (5) "Request for proposals" shall mean all documents, whether attached or incorporated

by reference, utilized for soliciting proposals in accordance with the procedures set forth in this

chapter.

      (6) "Responsible bidder or offeror" shall mean a qualified bidder or offeror who has the

capability in all respects, including financial responsibility, to perform fully the contract

requirements, and the integrity and reliability which will assure good faith performance.

      (7) "Responsive bidder or offeror" shall mean a person who has submitted a bid or offer

which conforms in all material respects to the invitation for bids or proposals, so that all bidders

or offerors may stand on equal footing with respect to the method and timeliness of submission

and as to the substance of any resulting contract.

      (8) "Request for qualifications" shall mean all documents, whether attached or

incorporated by reference, utilized for soliciting qualifications of offerors prior to or during the

solicitation of bids or proposals.

     (9) "Reverse Auction" shall mean a bid competition where the lowest responsive and

responsible bidder wins the auction.

     (10) "Auctioneer" shall mean a business or organization that conducts an electronic

reverse auction.

 

     37-2-17. Method of source selection. -- Except for purchases solicited pursuant to the

provisions for small purchases set forth in section 37-2-22, all state contracts and purchases shall

be solicited through utilization of the Rhode Island Vendor Information Program (RIVIP) as set

forth in section 37-2-17.1. Except as otherwise authorized by law, all state contracts shall be

awarded by:

      (1) Competitive sealed offers, pursuant to section 37-2-18;

      (2) Competitive negotiation, pursuant to sections 37-2-19 and 37-2-20;

      (3) Noncompetitive negotiation, pursuant to section 37-2-21; or

      (4) Small purchase procedures, pursuant to section 37-2-22. ; or

      (5) Reverse auctions, pursuant to section 37-2-18.1.

 

     37-2-17.1. Rhode Island vendor information program (RIVIP). -- (a) The chief

purchasing officer is directed to institute an electronic vendor information program which shall

enable all invitations for bid and requests for a proposal to be accessed electronically by all

potential vendors. This program is to be readily accessible through public access stations located

at the following locations:

      (1) One Capitol Hill, Providence, Rhode Island;

      (2) City hall, town hall or public library of each of the thirty-nine (39) cities and towns in

the state.

      (b) Further, the vendor information program shall be accessible to potential vendors

through means of computer modem.

     (c) The chief purchasing officer may contract with auctioneers as defined in section 37-2-

15(10) to conduct electronic reverse auctions, provided that notification of the opportunity to

participate in the auction is posted on the RIVIP in accordance with the requirements of section

37-2-25.1.

 

     37-2-18. Competitive sealed bidding. -- (a) Contracts exceeding the amount provided by

section 37-2-22 shall be awarded by competitive sealed bidding unless it is determined in writing

that this method is not practicable or that the best value for the state may be obtained by using an

electronic reverse auction as set forth in section 37-2-18.1. Factors to be considered in

determining whether competitive sealed bidding is practicable shall include whether:

      (1) Specifications can be prepared that permit award on the basis of either the lowest bid

price or the lowest evaluated bid price; and

      (2) The available sources, the time and place of performance, and other relevant

circumstances as are appropriate for the use of competitive sealed bidding.

      (b) The invitation for bids shall state whether the award shall be made on the basis of the

lowest bid price or the lowest evaluated or responsive bid price. If the latter basis is used, the

objective measurable criteria to be utilized shall be set forth in the invitation for bids, if available.

      (c) Unless the invitations for bid are accessible under the provisions as provided in

section 37-2-17.1, 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. Public notice may include publication in a

newspaper of general circulation in the state as determined by the purchasing agent not less than

seven (7) days nor more than twenty-eight (28) days before the date set for the opening of the

bids. The purchasing agent may make a written determination that the twenty-eight (28) day

limitation needs to be waived. The written determination shall state the reason why the twenty-

eight (28) 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.

      (d) 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. 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.

      (e) The contract shall be awarded with reasonable promptness by written notice to the

responsive and responsible bidder whose bid is either the lowest bid price, lowest evaluated, or

responsive bid price.

      (f) Correction or withdrawal of bids may be allowed only to the extent permitted by

regulations issued by the chief purchasing officer.

 

     SECTION 2. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby

amended by adding thereto the following section:

 

     37-2-18.1. Reverse auctions. – (a) Contracts exceeding the amount provided by section

37-2-22 may be awarded by electronic reverse auctions when it is determined in writing by the

chief purchasing officer that the state will obtain a better value with this method than with a

competitive sealed bid process. Factors to be considered in determining whether electronic

reverse auctions shall be utilized shall include:

     (1) Whether specifications can be prepared that permit electronic posting of bid

solicitations and secure receipt of electronic bids; and

     (2) The cost for preparing and executing the auction; and

     (3) Whether conditions are such that the commodities or services to be purchased are

appropriately competitive.

     (b) All reverse auctions shall be conducted electronically using real-time, on-line bidding

procedures. These procedures shall include the following:

     (1) Participation as a bidder shall be subject to a prequalification process conducted in

accordance with the provisions of section 37-2-25.1.

     (2) The solicitation shall designate both an opening date and time and a closing date and

time. The closing date and time may be dependent on a variable or variables specified in the

solicitation. At the opening date and time, the auctioneer shall begin accepting real-time, on-line

bids. The solicitation shall remain open until the closing date and time.

     (3) Following receipt of the first bid after the opening date and time, all bid prices shall

be posted electronically to the internet and updated on a real-time basis. At any time before the

closing date and time, a bidder may offer a lower bid than the lowest bid of any bidder, including

his own. A bidder's lowest bid shall supersede any prior higher bid offered by that bidder. Bid

prices may not be increased at any time after the opening date and time. All bids shall be binding

and may not be withdrawn. If a price entered by the bidder is in error, the bidder must correct the

bid within the time period and manner specified in the solicitation.

     (4) The invitation for bids shall state that the award shall be made on the basis of the

lowest responsive bid price.

     (c) The contract shall be awarded with reasonable promptness by written notice to the

responsive and responsible bidder whose bid is either the lowest bid price, lowest evaluated, or

responsive bid price.

     (d) Subsequent to the awarding of the contract, all documents pertinent to the awarding of

the contract shall be made available and open to the public inspection and retained in the bid file.

 

     37-2-25.1. Prequalification of vendors for electronic reverse auctions. – (a) Potential

bidders shall be prequalified for participation in each electronic auction.

     (b) A request for qualifications shall be issued stating the intent to conduct a reverse

auction in accordance with the provisions of section 37-2-18.1. The request for qualifications

shall identify the goods and services to be purchased and the criteria to be used to determine how

many and/or which bidders will be selected to participate in the reverse auction. All requests for

qualifications shall be solicited through utilization of the Rhode Island Vendor Information

Program (RIVIP) as set forth in section 37-2-17.1.

     (c) Participants shall be selected based on the criteria set forth in the request for

qualifications, including agreement to any terms, conditions or other requirements of the

solicitation. Written or oral discussions may be conducted with all responsible vendors

determined in writing to be reasonably susceptible of being selected for award.

     (d) Prior to the execution of the auction potential bidders shall be required to receive

instruction on the use of the selected electronic bidding procedure. Only bidders who

successfully complete the training phase of prequalification shall be permitted to participate in the

electronic reverse auction specified in the request for qualifications.

 

     SECTION 3. This act shall take effect upon passage.     

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LC03372

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