43.19.1911 - Competitive bids -- Notice of modification or cancellation -- Cancellation requirements--Lowest responsible bidder -- Preferential purchase -- Life cycle costing. - Washington Statutes

Competitive bids — Notice of modification or cancellation — Cancellation requirements — Lowest responsible bidder — Preferential purchase — Life cycle costing.

(1) Preservation of the integrity of the competitive bid system dictates that after competitive bids have been opened, award must be made to that responsible bidder who submitted the lowest responsive bid pursuant to subsections (7) and (9) of this section, unless there is a compelling reason to reject all bids and cancel the solicitation.

     (2) Every effort shall be made to anticipate changes in a requirement before the date of opening and to provide reasonable notice to all prospective bidders of any resulting modification or cancellation. If, in the opinion of the purchasing agency, division, or department head, it is not possible to provide reasonable notice, the published date for receipt of bids may be postponed and all known bidders notified. This will permit bidders to change their bids and prevent unnecessary exposure of bid prices. In addition, every effort shall be made to include realistic, achievable requirements in a solicitation.

     (3) After the opening of bids, a solicitation may not be canceled and resolicited solely because of an increase in requirements for the items being acquired. Award may be made on the initial solicitation and an increase in requirements may be treated as a new acquisition.

     (4) A solicitation may be canceled and all bids rejected before award but after bid opening only when, consistent with subsection (1) of this section, the purchasing agency, division, or department head determines in writing that:

     (a) Unavailable, inadequate, ambiguous specifications, terms, conditions, or requirements were cited in the solicitation;

     (b) Specifications, terms, conditions, or requirements have been revised;

     (c) The supplies or services being contracted for are no longer required;

     (d) The solicitation did not provide for consideration of all factors of cost to the agency;

     (e) Bids received indicate that the needs of the agency can be satisfied by a less expensive article differing from that for which the bids were invited;

     (f) All otherwise acceptable bids received are at unreasonable prices or only one bid is received and the agency cannot determine the reasonableness of the bid price;

     (g) No responsive bid has been received from a responsible bidder; or

     (h) The bid process was not fair or equitable.

     (5) The agency, division, or department head may not delegate his or her authority under this section.

     (6) After the opening of bids, an agency may not reject all bids and enter into direct negotiations to complete the planned acquisition. However, the agency can enter into negotiations exclusively with the lowest responsible bidder in order to determine if the lowest responsible bid may be improved. Until December 31, 2009, for purchases requiring a formal bid process the agency shall also enter into negotiations with and may consider for award the lowest responsible bidder that is a vendor in good standing, as defined in RCW 43.19.525. An agency shall not use this negotiation opportunity to permit a bidder to change a nonresponsive bid into a responsive bid.

     (7) In determining the lowest responsible bidder, the agency shall consider any preferences provided by law to Washington products and vendors and to RCW 43.19.704, and further, may take into consideration the quality of the articles proposed to be supplied, their conformity with specifications, the purposes for which required, and the times of delivery.

     (8) Each bid with the name of the bidder shall be entered of record and each record, with the successful bid indicated, shall, after letting of the contract, be open to public inspection. Bid prices shall not be disclosed during electronic or web-based bidding before the letting of the contract.

     (9) In determining "lowest responsible bidder", in addition to price, the following elements shall be given consideration:

     (a) The ability, capacity, and skill of the bidder to perform the contract or provide the service required;

     (b) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

     (c) Whether the bidder can perform the contract within the time specified;

     (d) The quality of performance of previous contracts or services;

     (e) The previous and existing compliance by the bidder with laws relating to the contract or services;

     (f) Such other information as may be secured having a bearing on the decision to award the contract: PROVIDED, That in considering bids for purchase, manufacture, or lease, and in determining the "lowest responsible bidder," whenever there is reason to believe that applying the "life cycle costing" technique to bid evaluation would result in lowest total cost to the state, first consideration shall be given by state purchasing activities to the bid with the lowest life cycle cost which complies with specifications. "Life cycle cost" means the total cost of an item to the state over its estimated useful life, including costs of selection, acquisition, operation, maintenance, and where applicable, disposal, as far as these costs can reasonably be determined, minus the salvage value at the end of its estimated useful life. The "estimated useful life" of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner. Nothing in this section shall prohibit any state agency, department, board, commission, committee, or other state-level entity from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

[2006 c 363 § 3; 2005 c 204 § 5; 2003 c 136 § 6; 1996 c 69 § 2; 1989 c 431 § 60; 1983 c 183 § 4; 1980 c 172 § 8; 1965 c 8 § 43.19.1911. Prior: 1959 c 178 § 6.]

Notes: Intent -- 1996 c 69: "It is the intent of the legislature to preserve the integrity of the competitive bidding system for state contracts. This dictates that, after competitive bids have been opened, the agency must award the contract to the responsible bidder who submitted the lowest responsive bid and that only in limited compelling circumstances may the agency reject all bids and cancel the solicitation. Further, after opening the competitive bids, the agency may not reject all bids and enter into direct negotiations with the bidders to complete the acquisition." [1996 c 69 § 1.]

Severability -- 1989 c 431: See RCW 70.95.901.

Energy conservation -- Legislative finding -- Declaration -- Purpose: RCW 43.19.668 and 43.19.669.