Determination of responsibility of bidders and offerors, prequalification of suppliers, and substantiation of offered prices
§3-401 Determination of Responsibility of Bidders and Offerors
A written determination of nonresponsibility of a bidder or offeror shall be made in accordance with the Procurement Procedures. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to such bidder or offeror. The reasons for determinations of nonresponsibility shall include, but are not limited to, those identified in §9-102(2) (Causes for Debarment or Suspension).
§3-402 Prequalification of Suppliers
Prospective suppliers may be prequalified for particular types of supplies, services, and construction. The method of submitting prequalification information and the information required in order to be prequalified shall be determined by the Director of Procurement. Adequate public notice of the prequalification opportunity and requirements shall be given in the same manner prescribed in §3-202(3) (Competitive Sealed Bidding, Public Notice).
§3-403 Substantiation of Offered Prices
The Director of Procurement may request, or cause to be requested, factual information reasonably available to the bidder or offeror to substantiate that the price or cost offered, or some portion of it, is reasonable, if:
(1) the price is not:
- (a) based on adequate price competition;
- (b) based on established catalogue or market prices; or
- (c) set by law or regulation.
(2) the price exceeds an amount or percentage thereof as established in the Procurement Procedures.
(3) Definitions.
- (a) Adequate Price Competition. Price competition exists if competitive sealed proposals are solicited and at least two responsible offerors independently compete for a contract to be awarded to the responsible offeror submitting the lowest evaluated price by submitting priced offers (or best and final offers) meeting the requirements of the solicitation. If the foregoing conditions are met, price competition shall be presumed to be "adequate" unless the Director of Procurement determines in writing that such competition is not adequate.
- (b) Established Market Price means a current price, established in the usual and ordinary course of trade between buyers and sellers, which can be substantiated from sources which are independent of the manufacturer or supplier and may be an indication of the reasonableness of price.
- (c) Prices Set by Law or Regulation. The price of a supply or service is set by law or regulation if some governmental body establishes the price that the offeror or contractor may charge the County and other customers.
(4) Submission of Substantiating Data
- (a) Time and Manner. When factual information is requested by the Procurement Staff to substantiate that the price or cost offered, or some portion of such price or cost, is reasonable, the offeror shall submit such data to the Procurement Staff prior to beginning price negotiations at any reasonable time and in any reasonable manner prescribed by the Procurement Staff. Such information shall either be actually submitted or specifically identified in writing.
- (b) Refusal to Submit Data. A refusal by the offeror to supply the requested information may be grounds to disqualify the offeror or to defer award pending further review and analysis. In the event the Procurement Staff decides to enter into the contract without first receiving the requested information, the Procurement Staff shall make a written determination setting forth the reasons for the award, which shall be made a part of the procurement file.