An Agency's Guide to the Materials Management Office Procurement

i.e. 11-35-20(b) refers to Title 11 Chapter 35 Section 20 Subsection B). If you have specific questions concerning a procurement, please call the Materials Management Office (803-737-0600).

TYPES of PROCUREMENT

Small Purchase (11-35-1550)
Invitation for Bids (11-35-1520)
Request for Proposals (11-35-1530)
Emergency Procurements (11-35-1570)
Sole Source Procurements (11-35-1560)

SMALL PURCHASE (11-35-1550)

Purchases under $1,500.00 may be accomplished without securing competitive quotes if the prices are considered to be fair and reasonable and it is so noted on the purchase requisition. Advertisement is not required.

Purchases from $1,501.00 to $5,000.00 require a verbal or written quote from a minimum of three qualified sources of supply. Attach documentation of the quotes to the purchase requisition. Advertisement is not required.

If your agency is certified to make procurements in excess of $5,000.00 the following small purchase procedures apply. If your agency is not authorized to make procurements above $5,000.00 you should send your purchase request to the Materials Management Office (MMO).

Purchases from $5,001.00 to $10,000.00 require the solicitation of written quotes from at least three qualified sources of supply. Attach documentation of the quotes to the purchase requisition. Advertisement is not required.

Purchases from $10,001.00 to $25,000.00 require written solicitation of written quotes. Attach documentation of the quotes to the purchase requisition. Advertisement is required.

An agency that has completed the quote process and subsequently discovered that the dollars exceed the agency's authority can send the quotes and all pertinent documents to MMO for consideration and award. The entire quote process may not have to be repeated if the quote was properly executed by the purchasing agency (i.e. advertising the quote for the $10,000 - $25,000 range).

The provisions of Section 11-35-4210 (Right to Protest) do not apply to contracts awarded under the small purchase procedures.

GENERAL INFORMATION CONCERNING IFBs and RFPs

This information is relevant to Invitation for Bids (IFB) and Request for Proposals (RFP).

All solicitations over $10,000.00 must be advertised (11-35-1550(2d) and 11-35-1580(4)).

Contracts amounting to twenty-five thousand dollars or more shall be awarded by competitive sealed bidding. (11-35-1520(1)) or competitive sealed proposals (11-35-1530(1)).

Agencies may make purchases up to the dollar amount certified by the Budget and Control Board (11-35-1210).

MMO maintains a list of prospective bidders. (11-35-1520(3)).

MMO must verify the responsibility of a bidder before an award can be issued (11-35-1810).

Notice of awards must be posted at the site and date specified at the bid (IFB & RFP) opening. All protest decisions on timeliness are based on the posting date (11-35-1520(10), 11-35-1530(10) and 11-35-4210(1)).

For awards greater than $50,000.00 an intent to award must be issued and sent to all participating bidders. Intents to award must be issued for 16 days (11-35-1520(10)).

MMO will accept draft specifications from the agency (MSWord is the preferred word processing format). If the agency does not know how to or needs assistance in developing specifications MMO will provide assistance.

INVITATION for BID (11-35-1520).
To reference the Procurement Code for a specific type of bid click the title below.
COMPETITIVE SEALED BIDDING (11-35-1520).
COMPETITIVE FIXED PRICE BIDDING (11-35-1525).
COMPETITIVE BEST VALUE BIDDING (11-35-1528).
Notice of the solicitation shall be given at a reasonable time (MMO uses a 2 week minimum) prior to the opening of the IFB (11-35-1520(4)).

All bids received are kept secure and unopened until the scheduled bid opening date and time (11-35-1520(5)).

Bids are opened publicly in the presence of one or more witnesses. The amount of each bid is tabulated and the tabulation is open to public inspection at that time (11-35-1520(6)).

Bids are accepted unconditionally without alteration or correction (11-35-1520(7)).

Correction or withdrawal of bids and cancellation of bid awards are allowed (11-35-1520(8)). However, you are encouraged to contact MMO before taking any action.

IFBs are awarded to the lowest cost vendor that meets the requirements of the bid and is determined to be responsible.

REQUEST for PROPOSAL (11-35-1530)

Written justification for using the RFP is required (11-35-1530(1)).

The RFP can be preceded with a request for qualifications. Request for qualifications shall require information only on qualifications, experience, and ability to perform the requirements of the anticipated contract. Request for qualifications should not be considered a method of reducing bidders rather it should be a method of determining which bidders can actually do the work required. The agency's decision to not allow a bidder to participate in the RFP is not protestable (11-35-1530(5)).

Adequate notice of the RFP shall be provided as required by Section 11-35-1520(4). MMO uses a minimum of 2 weeks prior to any site visit or pre-proposal conference. (11-35-1530(3)).

All proposals received are kept secure and unopened until the scheduled proposal opening date and time (11-35-1520(5) and 11-35-1530(4)).

Proposals are opened publicly in the presence of one or more witnesses. The only information available to the public at time of opening is the names of those who have submitted a response (11-35-410 and 11-35-1530(4)).

The RFP must state the relative importance of the factors to be considered in evaluating proposals. Price may but does not have to be an initial evaluation factor (11-35-1530(8)).

The weights assigned to the evaluation factors may, but do not have to, be stated.

RFPs require the establishment of an evaluation committee. In most cases, the agency chooses the evaluation committee and MMO approves or rejects the committee members.

Discussion with prospective offerors for the purpose of clarification of the RFP is allowed (11-35-1530(8)).

Proposals shall be evaluated using only the criteria stated in the RFP. All proposals will be ranked from most advantageous to least advantageous (11-35-1530(9)).

If price was an initial evaluation factor, the RFP is awarded to the proposer whose proposal was determined to be most advantageous to the agency (11-35-1530(10)).

If price was not an initial evaluation factor, the agency shall negotiate a contract with the proposer whose proposal was determined to be most advantageous to the agency. If the agency and the proposer cannot agree on a price, the agency may at its option negotiate with the next most advantageous proposer (11-35-1530(9)).

If price was not an initial evaluation factor, the RFP is awarded to the proposer the agency chooses as a result of its negotiations (11-35-1530(9) and 11-35-1530(10)).

When price was an initial evaluation factor the agency may still negotiate. Issues that can be negotiated are price (11-35-1530-11(1)) and matters affecting scope (11-35-1530-11(2)) as long as initial intent is not changed.

The State may make changes to the scope of the RFP and request a best and final offer from all participating proposers (11-35-1530-11(3)).

CONDUCTING A PRE-PROPOSAL CONFERENCE

The purpose of the pre-proposal conference is to allow prospective offerors the opportunity to ask questions concerning the RFP. All questions submitted by prospective offerors must be in writing. Written answers will be sent out in the form of an amendment(s) to the RFP. Amendments to the RFP are binding.

You should have the people most familiar with the requirements of the RFP attend the pre-proposal conference.

You should take every step possible to keep the pre-proposal conference from being mandatory. As a general rule, mandatory pre-proposal conferences do not add any value to the procurement process.

CONDUCTING A SITE VISIT

The purpose of a site visit is to allow the prospective offeror an opportunity to see what is physically required to accomplish the tasks of the RFP. Site visits are frequently used for RFPs and some IFBs for telephone service, wiring of a building, and purchase of equipment requiring environmental changes, etc.

If at all possible, limit the site visit to one time for all offerors. This helps assure that all offerors hear the same answers/comments to questions raised during the site visit. Site visits are usually followed by the pre-proposal conference. This saves you the problem of having to use up more than one day to respond to offerors and it keeps the offerors from incurring the added expense of making two trips to your agency.

You should take every step possible to keep the site visit conference from being mandatory. As a general rule, mandatory site visits do not add any value to the procurement process.

CONDUCTING A PROPOSAL EVALUATION

Though all the steps in the procurement process are important, the evaluation of proposals is the one that generally gets the most attention. The choosing of the evaluators is critical to the success of the procurement.

The Materials Management Office representative serves as the nonvoting chairman of the evaluation committee. You will be briefed on the proper process for evaluating proposals. The briefing will cover issues of:
Conflict of Interest
Non-Responsive Proposals
Independent Evaluation
Rating Structure
Cost
Score Sheets
Documentation of Scoring
Possibility of Protest
Confidentiality.

Cost will be determined by the Materials Management Office representative and will not be revealed to the evaluators until after the completion of the technical evaluation of the RFP.

EMERGENCY PROCUREMENT (11-35-1570)

Emergency procurements are allowed when there is an immediate threat to public health, welfare, critical economy and efficiency, or safety. A written justification for the emergency procurement must be completed. The agency head or his designee must approve all emergency procurements. Agencies should seek as much competition as practicable (11-35-1570).

SOLE SOURCE PROCUREMENT (11-35-1560)

A contract may be awarded for a supply or service item without competition when there is only one source of supply. A written justification for the sole source must be completed (11-35-1560). The agency head or his designee must approve all sole source procurements.

Suggested steps for a sole source:
1. Develop a clear understanding of your needs.
2. Understand required features to get the job done.
3. Review competition - See other vendors' presentations
Test other vendors' equipment. Run test jobs and determine if your specification requirements can be
met without having to issue a sole source.
4. Be sure only one vendor can meet your requirements.
5. Complete sole source justification.
6. Sign sole source / Call vendor.

Suggested steps for a sole source justification:
1. Prepare justification document for a non-informed audience.
2. Identify the need and the corresponding feature(s). - Be as specific as possible.
3. Quantify and/or indicate the priority of the work to be done (i.e. represents 40 % of the work or requires
a 2 hour turnaround).
4. Describe how the job is done now.
5. Discuss the closest alternative - How would the job be done using this alternative.
6. Unique features should be justified individually and jointly.

TRADE-IN/SURPLUS (11-35-3810)

All trade-ins or declarations of surplus must be reviewed and approved prior to your disposal of goods. A "Request for Trade-In Document" (MMO 137) is used to request a trade-in. A "Turn In Document" (Form No. 1) is used to declare property as surplus. Both of these forms can be obtained from Surplus Property. Your request for trade-in or surplus should be sent to:

Surplus Property
1441 Boston Avenue
West Columbia, SC 29169

When you plan a solicitation which will involves a trade-in (11-35-3520) you should inform the buyer that a trade-in will be included. Though final approval of a trade-in cannot be made until the State knows the dollar amount of the trade-in, it is best to begin the processing of a trade-in prior to the time for contract award. This will make the final steps of contract award easier to accomplish.

When you declare an item to be surplus (B&CB Regulation 19-445-2150(B1)), an evaluator from Surplus Property will make a determination as to the marketability of the item. Surplus Property will either take the item for disposal or declare the item to be junk. Your agency is responsible for the disposal of items that are declared to be junk (B&CB Regulation 19-445-2150(H)).

CONTRACTS BETWEEN STATE AGENCIES

Agencies must get approval to contract with another agency for goods and/or services. A form (MMO-136) stating the agencies that are contracting together, the purpose of the contract, the goods or services to be provided, and the cost to the procuring agency must be completed and approved by the Chief Procurement Officer before a contract can be finalized (11-35-4830 and B&CB Exemption number 53 passed on November 5, 1984).

PROTEST (11-35-4210)

The issue of protest is covered in section 11-35-4210 of the South Carolina Consolidated Procurement Code.

For procurements exceeding $25,000, a protest is always possible. Quotes less than $25,000 are not protestable. How to prepare for a protest is outlined below.

The Procurement Code instructs the Chief Procurement Officer to resolve the protest without a hearing if this is possible. If your agency receives a protest and there is a possible resolution outside of a hearing, you should advise the Chief Procurement Officer of the terms of resolution that are acceptable to you.
A protest will stop the procurement process unless the agency head requests in writing that the Chief Procurement Officer continue the process and explains the reasons such continuance is necessary.

The following items should be brought to the hearing before the Chief Procurement Officer. These documents will become a part of the permanent record:
1. A chronology of events leading up to the protest (i.e. bid date, opening date, amendments and dates,
vendors responding, etc.)
2. A blank copy of the solicitation
3. If the award is protested:
A copy of the winning solicitation (after you have removed any confidential information)
A copy of the protestant's solicitation (after you have removed any confidential information)
4. Copy of any pertinent memoranda, letters, or other documents relevant to the procurement
5. For an RFP:
Copy of evaluation summaries
Weights assigned to evaluation criteria
Copy of an individual evaluator's score sheet (this can be a blank copy).

The following items may be needed and may become a part of the record (copies can be made at the hearing):
1. The complete solicitation file (this should provide a complete history of the procurement)
2. All memoranda, letters, or other documents relevant to the procurement
3. For a RFP - all individual evaluators' score sheets.

What you can expect in a hearing:
1. Opening comments from the Chief Procurement Officer
2. The State will be called upon to outline the events leading up to the protest
3. The protestant will present his arguments
4. The State will be given an opportunity to respond to all issues presented by the protestant.

The hearing may or may not involve lawyers. They are not required.

You will be expected to be able to:
1. Provide the chronology of events
2. Discuss any issues unique to the procurement
3. Reference the Procurement Code and how you have complied with it
4. Explain your understanding of the protestant's position
5. Provide any recommendations that could result in resolving the protest.

How do you prepare for a protest?
1. Know the issues of the protest
2. Determine if the protest is valid
3. Be organized and have all documentation needed
4. Prepare your defense - Define what, why and justify
5. Anticipate and plan responses for the arguments you expect the protestant to raise.

VENDOR DEBARMENT or SUSPENSION (11-35-4220)

The issues of debarment or suspension of a vendor are covered in Section 11-35-4220 of the South Carolina Consolidated Procurement Code.

Vendors can be debarred or suspended from doing business with the State when the Chief Procurement Officer makes a determination that such action is in the best interest of the State (11-35-4220(3)).

Debarment decisions are most commonly related to lack of performance, violation of contract provisions or deliberate failure to perform as required by the contract. Vendor debarment is set for a specific period of time based on the issues presented before the Chief Procurement Officer (11-35-4210(2)).

Debarment can also occur when a vendor is convicted of a criminal offense by state or federal law.

Suspension can occur when it appears a vendor's actions will warrant debarment following a review of such actions. Vendor suspension may not have a specific time period but rather will be subject to the outcome of a review of the charges/claims brought against the vendor (11-35-4220(2)).

Agencies may request that the Chief Procurement Officer debar or suspend a vendor. Such request should outline the reasons the Chief Procurement Officer should take action against the vendor.

If the vendor requests it, a hearing will be held to determine the validity and fairness of charges brought before the Chief Procurement Officer.

Issues of debarment or suspension can only be brought forward to the Chief Procurement Officer by the State. Vendors cannot ask for debarment or suspension of another vendor.

Use the guidelines under Protest to prepare for a hearing before the Chief Procurement Officer.

CONTRACT CONTROVERSIES (11-35-4230)

The issue of contract controversy is covered in Section 11-35-4230 of the South Carolina Consolidated Procurement Code.

Issues of contract controversy can be brought to the Chief Procurement Officer by the State or the vendor involved in a contract (11-35-4230(2)).

Agencies should seek to resolve contract controversies without involving the Chief Procurement Officer. After all reasonable attempts to resolve a contract controversy have been exhausted by the agency and the vendor, either party may request that the Chief Procurement Officer get involved. It is usually in the best interest of the agency and the vendor to resolve contract controversies before the Chief Procurement Officer gets involved.

The Chief Procurement Officer has the authority to award such relief as is necessary to resolve the controversy as allowed by the terms of the contract or by applicable law (11-35-4320).

If a mutually acceptable resolution cannot be completed by the parties involved, the Chief Procurement Officer will hold a hearing and issue a decision which will include a resolution that must be followed by the State agency and the vendor.

Use the guidelines under Protest to prepare for a hearing before the Chief Procurement Officer.

FREEDOM of INFORMATION (11-35-410)

When someone submits a written request (including e-mail) for copies of a bid or proposal, that request is governed by the Freedom of Information Act. In response to these requests, you should take all appropriate steps to release as much information as possible, as soon as possible. Cooperation with such requests is not only required by law but also accents the fact that the State seeks to do business out in the open.

As a rule, all bids and proposals are available under FOIA as soon as a notice of intent to award has been issued. For details regarding the standard process for responding to requests for bids or proposals, you may wish to consult our FOIA Document Guide. In addition, you may wish to consult our standard FOIA bidding instructions . If you still have questions regarding what should be released in response to a Freedom of Information Request, you can call the Materials Management Office for assistance.