CONTRACTING FAQ'S
What is an Invitation to Bid (ITB)?
An Invitation to Bid (referred to as ITB) is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service on State contracts. If not stated otherwise, the supplier with the lowest bid is awarded the contract, provided that they meet the minimum criteria for the bid. Details of the ITB process can be found in Title 29, Chapter 69, (specifically § 6923) "Competitive Sealed Bidding", Sub-Section (e) of the Delaware Code.
What is a Request for Proposal (RFP)?
A Request for Proposal (referred to as RFP) is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service on State contracts. An RFP typically involves more than the price. Other requested information may include basic corporate information and history, financial information (can the company deliver without risk of bankruptcy), technical capability (used on major procurements of services, where the item has not previously been made or where the requirement could be met by varying technical means), product information such as stock availability and estimated completion period, and customer references that can be checked to determine a company’s suitability. RFP’s often include specifications of the item, project or service for which a proposal is requested. The more detailed the specifications, the better the chances that the proposal provided will be accurate. The bidders return a proposal by a set date and time. The proposals are used to evaluate the suitability as a supplier, vendor, or institutional partner. Discussions may be held on the proposals (often to clarify technical capabilities or to note errors in a proposal). In some instances, all or only selected bidders may be invited to participate in subsequent bids, or may be asked to submit their best technical and financial proposal, commonly referred to as a Best and Final Offer (BAFO). Details of the RFP process can be found in Title 29, Chapter 69, (specifically § 6924) "Competitive Sealed Bidding", Sub-Section (e) of the Delaware Code.
An Award Notice is the document used to notify the agencies and includes all the pertinent details to utilizing the contract, i.e., contract requirements, contract period, successful vendor(s), prices, delivery requirements, shipping terms, billing, payment and other terms and conditions.
An addendum is used to modify an existing contract when it becomes necessary to add, delete, or change a particular item or procedure as long as the scope or original contents of the contract remain the same.
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Mutual Extension - The terms of the contract is extended by mutual agreement between the State/Government Support Services, Contracting Unit, and the vendor. This extension would be for the basic contract period. For example, a contract is effective January 1, 2000 through December 31, 2000. It is extended for an additional year under the same terms and conditions.
- Unilateral Extension - The terms of the contract is extended without the agreement of the vendor. The State/Government Support Services, Contracting Unit extends the contract for up to three (3) months due to extenuating circumstances.
The contract period is the length of the contract from start to finish and is usually one year. However, it can be for less or more. There are even some contracts for six (6) month periods.
How long after receipt of an invoice are agencies required to make payment?
Agencies are required by law to make payment within thirty (30) days after receipt of a valid invoice. Details on the payment of bills can be found in Title 29, Chapter 65, (specifically § 6516) “Payment of bills or statements of account”, Sub-Section (d) of the Delaware Code.
What is a User Committee and how do I get involved?
A User Committee is a group of individuals from various State Agencies, School Districts, etc. who contribute to the writing of specifications for the Invitation to Bid (ITB) or Request for Proposal (RFP). They are also involved in the awarding of the ITB or RFP. The committee is also consulted on the extension of the contract period. If you would like to be a part of a User Committee, please contact Contract Officer of the particular contract.
Why is it that costs for products from the negotiated "state authorized" vendor are higher than other vendors and what is the purpose in forcing centralized purchasing if the state agency could go to Best Buy or somewhere else and purchase the same product for less?
Central contracts are for multiple items and in many instances (such as Office Supplies) the vendors are offering goods and services based on a larger scope rather then a single item. In contracts such as these, the total spend is significant although every vendors' offering provides some items that are more expensive than others. The centralization of these contracts permit the state to capitalize on the total spend picture and achieve the best costs for the total offering. Also, we structure contracts of this nature to identify the "core" items that are the most significant, either in cost or volume, so that aggressive pricing may be obtained from competing vendors on these items. With central contracts in place, the state and the agency save money by not having to search for a vendor for common goods or non professional services as the work has already been done by the central office. Additionally, our Terms and Conditions in our contracts give the agency extra benefits i.e. warranty and or extended warranties if required, the ability to go to another vendor should the contract vendor fail to perform per the contract and be able to charge the contract vendor for the price difference. The authorization to return damaged goods or material without difficulty and the expediting of the customers order through local area representatives also adds value to the contract. The reasonable price and the additional terms and conditions make for a better deal for the state agencies over the long term.
