Tuesday, July 10, 2012

How and When to Disclose Bid Results

You've just held a public bid opening for a public works project.  Some of the bidders want to see the bid form and bid guaranty for the low bidder, and maybe want a copy too.  What should you do?

Transparency:  In conducting public bidding, I always think it's best to have as transparent and open of a process as possible.

Options:  The following are some of the ways that various public agencies handle disclosure of the bids that have been submitted:
  • Review after bid opening:  Some agencies permit bidders to examine other bids immediately after bid opening.  This is a good process that promotes transparency.  It is important, however, to carefully control the review of the documents to one bidder at a time, and to keep the documents secure.
  • Case-by-case requests:   Some agencies entertain requests for a copy of the bidding documents on a case-by-case basis, agreeing to send a copy of the documents upon request.
  • Scan bids:  Some agencies make it a practice after bid opening to scan all of the bids and then post them to the agency's website (or an electronic bid distribution service) within a few hours or by the next day.  This is a relatively easy process, maintains the security of the bids, and gives timely access to the bids to anyone interested.  A variation of this option is to email the scanned bid results to anyone making such a request.
  • Public records request:  Some agencies make it a practice to require a formal public records request before they will release a copy of the bids to anyone.   This practice makes it a little harder for bidders and interested parties to obtain a copy of the bids, is a less transparent process, and is more time and process oriented for public agency staff.  Generally, the bids are considered to be public records that are be subject to disclosure under applicable requirements.
Bid tabulations:  In addition to the actual bids, bidders are interested in the summary bid tabulation of all bids received.  If you have a unit price bid, it is important that you check the math for all of the bidders to ensure they have accurately multiplied their proposed unit prices by the estimated quantities, and that they have accurately added up the unit price extensions.  Bidding documents should give public agencies the right (and obligation) to make mathematical corrections of any such errors.  After all of the bids have been checked for accuracy (errors may change the order of bidders from the numbers read during the bid opening), a public agency may disclose the bid tabulation through any of the options noted above.

Protests:  Prompt disclosure of bids submitted is important to bidders in preserving their rights under state or local regulations or the requirements of the bidding documents for how long they have in which to file a bid protest.
Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

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