Multiple Award Contracts Training Presented by Jennifer Salts State of Utah - Division of Purchasing 1

Multiple Award Contracts Objective of today’s training is to: Identify Utah Procurement Code and Administrative Rules specific to multiple awards Understand solicitation requirements when seeking multiple awards Identify multiple award methodology types and ordering requirements Recognize when multiple awards are appropriate 2

Code and Rules Pertaining to Multiple Award Contracts Utah Procurement Code 63G-6a-1204 Multiple Award Contracts Administrative Rule R Awarding Multiple Award Contracts Administrative Rule R a Multiple Award Contracts for Unidentified Procurement Items Administrative Rule R b Ordering from a Multiple Award Contract 3

Multiple Award Contracts Utah Procurement Code 63G-6a Multiple Award Contracts Multiple award contracts may be in a procurement unit’s best interest if award to two or more bidders or offerors for similar procurement items is needed or desired for: adequate delivery service availability product compatibility 4

Multiple Award Contracts When entering into multiple award contracts, the procurement unit must do the following: Exercise care to protect and promote competition among bidders or offerors when seeking to enter into multiple award contracts; Name all eligible users of the multiple award contracts in the invitation for bids or request for proposals; and State in the invitation for bids or the request for proposals that the procurement unit may enter into multiple award contracts at the end of the procurement process. 5

Multiple Award Contracts R Requires the solicitation to contain the following: Indicates that contracts may be awarded to more than one bidder or offeror Specifies whether contracts will be awarded on a statewide, regional, combined statewide and regional basis, or agency specific requirement; and Describes specific methodology or a formula that will be used to determine the number of contract awards 6

Multiple Award Contracts Invitation for Bids (IFB) solicitations will use one of the following methods to determine low bid: Award may be made to all bids within a specified percentage, not to exceed five percent, of the lowest responsive and responsible bid, unless otherwise approved in writing Award to all responsive and responsible bidders, provided the contract specifically directs that orders must be placed first with low bidder unless the lowest bidder cannot provide the needed procurement item – the second low bid will be contacted, and so on… Other methodology described in the solicitation to award contracts may be used 7

Multiple Award Contracts IFB allows multiple awards to be made by category, line item, task, or service provided: the solicitation indicates that a contract will be awarded based on the lowest bid per category, line item, task, service, or primary/secondary only one bidder may be awarded a contract per category, line item, task, service, or primary/secondary Other specific IFB award methodology may be used, if approved by the Chief Procurement Officer or head of a procurement unit with independent procurement authority. 8

Multiple Award Contracts Request for Proposals (RFP) may be awarded on a statewide, regional, combination statewide and regional basis, agency specific requirement, or other criteria set forth in the solicitation and: Accordance with point thresholds and other methodology set forth in the RFP With enough specificity as to avoid the appearance of any favoritism affecting the decision of whether to award a multiple contract and who should receive a multiple award contract 9

Multiple Award Contracts R a. Multiple Award Contracts for Unidentified Procurement Items An unidentified procurement item is defined as a procurement item that at the time the solicitation is issued: Has not been specifically identified but will be identified at some time in the future, such as an approved vendor list or approved consultant list; Does not have a clearly defined project or procurement specific scope of work; and Does not have a clearly defined project or procurement specific budget. 10

Multiple Award Contracts Unidentified procurement items may be procured under the approved vendor list process – see Utah Procurement Code Sections 403 and 404 the corresponding Administrative Rules for Request for Statements of Qualification and Approved Vendor List details. 11

Multiple Award Contracts An RFP, request for statements of qualifications, or multi stage solicitation issued for a multiple award contract for unidentified procurement item(s) must: specify the methodology that the procurement unit will use to determine which vendor under the multiple award contract will be selected. The methodology must include a procedure to document that the procurement unit is obtaining best value, including an analysis of cost and other evaluation criteria outlined in the solicitation. The methodology must also ensure the fair and equitable treatment of each multiple award contract vendor, including using methods to select a vendor such as: a rotation system, organized alphabetically, numerically, or randomly; assigning a potential vendor or contractor to a specified geographical area; classifying each potential vendor or contractor based on the potential vendor's or contractor's field or area of expertise; or obtaining quotes or bids from two or more vendors or contractors. 12

Multiple Award Contracts R b Ordering from a Multiple Award Contract When buying a procurement item from a multiple award contract solicited through an invitation for bids, a procurement unit shall do the following: If multiple contracts were awarded to all vendors within a specified percentage as described in R (5)(a)(i) Obtain a minimum of two quotes and place the order with the lowest bidder 13

Multiple Award Contracts If multiple awards were made to all responsive and responsible bidders under R (5)(a)(ii) the ordering instructions require to: Place the order for the procurement item with the lowest bidder on contract unless the lowest bidder cannot provide the needed procurement item, then the order may be placed with the second lowest bidder unless the second lowest bidder cannot provide the needed procurement item and on, in order, from lowest bidder to highest bidder. 14

Multiple Award Contracts If multiple awards were issued based on the lowest bid per category, line item, task, service or primary/secondary as described in R (5)(iii)(b), (c), and (d) The order will be placed with the one bidder specifically awarded to supply the items or services specific to the category, line item, task, service or as instructed with primary/secondary ordering. 15

Multiple Award Contracts When buying a procurement item from a multiple award contract solicited through an RFP, a procurement unit may place orders with any vendor or contractor under contract based on which procurement item best meets the needs of the procurement unit. Contracts awarded through the RFP process are awarded based on best value as determined by cost and non-price criteria specified in the RFP. 16

Multiple Award Contracts A procurement unit may not use a multiple award contract to steer purchases to a favored vendor or use any other means or methods that do not result in fair consideration being given to all vendors that have been awarded a contract under a multiple award. 17

Multiple Award Contracts Here are a few samples of when it’s appropriate to award multiple contracts: Multiple distributors of fresh produce are required to ensure adequate delivery to schools across the entire state Healthcare professionals are needed to provide services to patients locally, in their city or county Auto parts and auto repair technicians must be available to service a variety of fleet vehicle makes and models in locations across the state to reduce towing costs Various software titles must be available to integrate with existing computer systems 18

So in summary… Multiple Award Contracts are not like this… 19

Multiple Award Contracts Any Questions on Multiple Awards??? 20