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PART 18 - UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOP... Page 25 of 38 <br />(i) In order for sealed bidding to be feasible, the following conditions should be present: <br />(A) complete, adequate, and realistic specification or purchase description is available; <br />(B) Two or more responsible bidders are willing and able to compete effectively and for the <br />business; and <br />(C) The procurement lends itself to a firm fixed price contract and the selection of the <br />successful bidder can be made principally on the basis of price. <br />(ii) If sealed bids are used, the following requirements apply: <br />(A) The invitation for bids will be publicly advertised and bids shall be solicited from an <br />adequate number of known suppliers, providing them sufficient time prior to the date set for <br />opening the bids; <br />(B) The invitation for bids, which will include any specifications and pertinent attachments, <br />shall define the items or services in order for the bidder to properly respond; <br />(C) All bids will be publicly opened at the time and place prescribed in the invitation for <br />bids; <br />(D) A firm fixed -price contract award will be made in writing to the lowest responsive and <br />responsible bidder. Where specified in bidding documents, factors such as discounts, <br />transportation cost, and life cycle costs shall be considered in determining which bid is <br />lowest. Payment discounts will only be used to determine the low bid when prior experience <br />indicates that such discounts are usually taken advantage of; and <br />(E) Any or all bids may be rejected if there is a sound documented reason. <br />(3) Procurement by competitive proposals. The technique of competitive proposals is normally conducted <br />with more than one source submitting an offer, and either a fixed -price or cost - reimbursement type <br />contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If <br />this method is used, the following requirements apply: <br />(i) Requests for proposals will be publicized and identify all evaluation factors and their relative <br />importance. Any response to publicized requests for proposals shall be honored to the maximum <br />extent practical; <br />(ii) Proposals will be solicited from an adequate number of qualified sources; <br />(iii) Grantees and subgrantees will have a method for conducting technical evaluations of the <br />proposals received and for selecting awardees; <br />(iv) Awards will be made to the responsible firm whose proposal is most advantageous to the <br />program, with price and other factors considered; and <br />(v) Grantees and subgrantees may use competitive proposal procedures for qualifications -based <br />procurement of architectural/engineering (A/E) professional services whereby competitors' <br />qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of <br />fair and reasonable compensation. The method, where price is not used as a selection factor, can <br />only be used in procurement of A/E professional services. It cannot be used to purchase other types <br />of services though A/E firms are a potential source to perform the proposed effort. <br />http: / /www. dot .gov /ost/m60 /grant/49cfr18.htm 8/30/2012 <br />