When Should Bidding Documents be Made Available to Bidders?

Making bidding documents available to bidders early - or late - both have negative consequences to the bidding process.

Early Availability of Bidding Documents:  A public agency that provides bidding documents to some bidders prior to the advertisement in the newspaper, or prior to notification to contractors on a small works roster, gives those bidders a competitive advantage over the other bidders. The bidders who receive the bidding documents early have additional time in which to review the documents and prepare their bid.  

• Protests:  Providing bidding documents to some bidders early increases the risk that a public agency will receive a bid protest from other bidders who were not afforded the additional time.

• Transparency:  In public contracting, it is important that the process be fair and transparent, and that it builds the confidence of the contracting community and the public in the integrity of the process. Providing bidding documents early to some bidders creates a perception that the public agency is favoring some bidders over others, and that the process is not an open one

Late Availability of Bidding Documents:  When a public agency announces through an advertisement or a roster process that the bidding period has begun, the bidding documents should be available right away.  Failure to have documents available reduces the effective bidding period.

• Non-Compliance with Laws:  Reducing the time allowed for bidders to prepare their bids may result in a shorter time period for bidding than applicable laws may require.

• Fewer Bidders:  Not having the bidding documents availability immediately gives less time for bidders to actually prepare their bids.  As a result, some bidders may choose not to bid given the shortened time period.

• Higher Bid Prices:  Finally, reducing the bidding period by not having the bidding documents available when the project is publicized may result in bids that are not competitive.  If bidders do not have sufficient time to review the documents, understand the project, and assess the risks, they may increase their bid price to deal with these issues.

Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com