Procurement Procedures - Chapter 5: Price Based Procurement

PB 1 Introduction

This chapter outlines Hillsborough County's (County) formal procedures for price-based procurement of goods and services to ensure compliance with applicable laws and policies. The procedures outlined in this chapter aim to maintain fairness, encourage competition, and support the County's objectives in procurement and contracting. Price-based procurement methods include:

1. Small Purchase under $10,000
2. Informal/Invitation to Quote (Greater than $10,000 and up to $50,000)
3. Invitation to Bid (Over $50,000)

PB 2 Small Purchase Under $10,000

Departments shall have authority to make small purchases of $10,000 or less and do not require competition. Small purchases of $10,000 or less shall not require competition; however, in the interest of maximizing value and proper stewardship of public funds, competitive informal quotations should be secured whenever possible and reasonable. Award should be made to the lowest, responsive, and responsible offeror that is able to provide the requested goods and/or services in a time specified by Hillsborough County (County). Purchases shall not be split ¹ to avoid the competitive requirements prescribed in other sections.

PB 2.1 Methods for Small Purchases

1. Purchasing Card (PCard)
• A PCard may be used for small purchases that do not exceed $10,000 and do not require a signature authorizing terms and conditions or an agreement (unless otherwise approved). See chapter 13.
2. Requisition
• Departments should enter a requisition through Oracle if a vendor does not accept a PCard.

PB 3 Invitation to Quote (ITQ) (Informal/Small Procurement Greater Than $10,000 and Up to $50,000)

An ITQ is a simplified informal procurement method used to solicit competitive pricing for goods or services. ITQs may be published in the County’s electronic procurement system (EPS).

PB 3.1 ITQ - Responsibility Reference

As part of the evaluation process, bidder(s) will be requested to provide references that will be reviewed by the Requesting Department (RD). The RD will receive the Award Recommendation and Responsibility Reference documents via an approval in the County’s EPS. RD will return the completed documents via the same approval.

PB 4 Invitation to Bid (ITB) - Bids Over $50,000

This is a method used to solicit competitive sealed bid responses and where award decision is made based on the lowest responsive bid(s) and responsible bidder(s). This is the preferred method for procurement.

PB 4.1 Submission Errors

Once a solicitation is closed, a bidder may not withdraw or alter their submission unless allowed by the solicitation document.

PB 4.2 Single Bid Submittal Analysis

1. Procurement Service’s Responsibilities
• If only one bid submission is received, Procurement Services will review the solicitation process to determine if proper procedures were followed, identify reasons for the lack of responses, and prepare a submittal analysis.
2. Requesting Department’s Responsibilities
• The RD shall conduct a detailed review to ensure the price is fair and reasonable. This may involve comparing prices with those received by other government agencies, prior bids, published market prices, similar indexes and discount or rebate arrangements, or independent cost estimates. For complex projects, a formal cost study with professional experts may be necessary.
• Once the review has been completed the RD shall complete the award recommendation demonstrating that the RD’s Director has reviewed the evaluation and confirmed the price is fair, reasonable, and in the County's best interest.
3. Rejection of Single Bid
• If the single bid analysis reveals the bid is not fair and reasonable, then Procurement Services may reject all. If the project is re-solicited, appropriate changes should be made to encourage greater competition.

PB 4.3 Tie Bids Procedures

In the event two (2) or more bidders have submitted the lowest and best bids, preference will be given in the following order:

1. A bidder who submitted a signed Drug Free Workplace form ² with the bid.
2. A bidder who is both a Service-Disabled Veteran Business and a County registered Small Business Enterprise ³ .
3. A bidder who is a Minority or a Small Business Enterprise, certified or registered by the County ⁴.
4. A bidder who has its principal place of business in the County.
5. A bidder who has a place of business in the County.
6. Finally, the bid may be awarded by drawing lots. The drawing will be performed by Procurement Services.

PB 4.4 Submission Evaluation

1. Initial Responsiveness Check
• Procurement Services will review bid submittals to determine initial responsiveness but is not responsible for identifying undisclosed deviations within the entire content. If a submittal does meet responsiveness requirements, Procurement Services will forward it to the RD for review.
• If a submittal fails to meet responsiveness requirements, Procurement Services may conduct discussions with bidder(s) for clarification. If submittals still fail to meet responsiveness requirements, Procurement Services will notify the bidder(s) that their bid(s) has been deemed nonresponsive. If the nonresponsive bidder wishes to challenge the County’s notice, the bidder must submit a written objection to Procurement Service within five (5) business days after receipt of the nonresponse notice. The five (5)-day period begins on the business day following the date of notice and ends at 5:00 p.m. (EST) on the fifth day. The bidder must include all relevant documents, information, and evidence necessary to support the objection. Once received, Procurement Service will review and take appropriate next steps. After the five (5)-day period has expired without a challenge, Procurement Services will begin reviewing the next lowest bid submittal.
2. Department Review of Bid Documents
• The RD reviews bid(s) submittals to ensure the bidder is in compliance with the minimum requirements and minimum qualifications.
• Note: The RD cannot find the bidder(s) nonresponsible for prior bad performance unless there is documented detailed evidence to support the prior bad performance (eg. cure notices and meetings for performance improvement).
• Note: The RD cannot find the bidder(s) nonresponsible for past performance on a contract awarded for unrelated goods or services.
• If a bid is deemed nonresponsible, the RD must provide a detailed explanation in the Recommendation for Award.
3. Procedure for Handling Deviations
• Deviations in bids may be either material or immaterial. The RD will make an initial determination on the materiality of deviations against the solicitation specifications and document findings on the Recommendation for Award. Procurement Services will assess the validity of the recommendation and take appropriate action.
• (A) Immaterial Deviations
• Immaterial or minor deviations are those that do not alter the substance of the bid and do not provide undue competitive advantage to a bidder. These deviations may be waived. Examples include, but are not limited to, omission of brochures or inaccurate extension of unit prices.
• (B) Material Deviations
• Material deviations are ones that deprive the county of its assurance that the contract will be entered into, performed, and guaranteed according to the bid’s specific requirements; or provide the deviating bidder with an undue competitive advantage. These deviations may not be waived. Examples include, but are not limited to, deviations affecting the price, quality or delivery of goods or services offered.
4. Request for Bid Clarification
• If clarification is needed to evaluate a bid, the RD should develop clarification questions and immediately provide them through the EPS. Procurement Services will send the questions to the bidder(s) with a specified response deadline and then forward the returned clarification to the RD for review.

PB 5 Reference Checks & Documentation

The RD is responsible for contacting the references provided by the apparent low bidder(s) and obtaining reference checks. The results must be documented in the Recommendation for Award. Reference checks may also include sources beyond those provided by the bidder, including the bidder's prior experience with the County.

PB 5.1 Example Questions

1. Did the bidder deliver according to the schedule?
2. Did the bidder deliver within budget or at the bid price?
3. Did the bidder respond in good faith to resolve problems, request additional compensation or justify change orders?
4. Would you contract with this bidder again?
5. Have you debarred this bidder from doing business with you?
6. Has this bidder ever defaulted on a contract with you, or have they been terminated and/or not renewed when the option was available?
• (A) If yes, please describe in detail
• (B) Would you fax or email public records in relation to this action?
• (C) Was the bidder cooperative with the transition to the new bidder (e.g. transition of data/records)?
7. How would you rate the bidder’s overall performance with regard to quality: Poor; Satisfactory; Good or Exceptional?
8. How would you rate the bidder’s overall performance with regard to timeliness: Poor; Satisfactory; Good or Exceptional?
9. Can you elaborate on the bidder’s particular strengths, if any?
10. Can you elaborate on the bidder’s particular weaknesses, if any?
11. Would you recommend this bidder to Hillsborough County?
12. Are you aware of any reason that Hillsborough County should consider not contracting with this bidder?

PB 6 Equipment Demonstrations

If needed, Procurement Services will obtain the bidder's insurance certificate(s) and forward to Risk Management & Safety for approval prior to the demonstration. Following approval, Procurement Services will schedule the demonstration at a mutually agreed location and time.

The RD must ensure County-provided items are available at the demonstration, inspect the bidder’s offered product, and document the demonstration outcome for inclusion in the Recommendation for Award.

PB 7 Rejection of Bid Submissions

The County may reject any bid if the bidder is deemed nonresponsible, the bid is nonresponsive, or if rejection serves the County’s best interest.

PB 8 Award Process

Once the RD’s recommendation is submitted, Procurement Services will process the recommended award.

PB Notes

1. Split Purchase: Occurs when two or more transactions are deliberately divided between the same vendor to misrepresent the total value of a single purchase. This practice is used to circumvent competitive solicitation requirements, spending thresholds, or other procurement policies. Split purchases may involve one or multiple cardholders intentionally breaking up a purchase to remain within single transaction limits or avoid triggering formal procurement processes.
2. Pursuant to Fla. Stat. § 287.087
3. As set forth in Part III, Section 1 of the Hillsborough County Economic Development Department Small Business Development Office Operational Procedures, pursuant to the Board directive given at the December 16, 2009, regular meeting based on a staff report regarding Service-Disabled Veterans Preference Program.
4. Pursuant to Board Resolution No. R06-264, as amended by Resolution No. R11-020, Resolution No. R12-156, and Resolution No. R15-105