| Estimated Contract Amount | Under $10,000 | $10,000 to $50,000 | Over $50,000 |
|---|---|---|---|
| Procurement Procedure | Sound business practices.1 | Use a written purchase description to solicit written quotations from no fewer than 3 persons who customarily provide the supply or service.2 | Sealed bids or proposals. (M.G.L. c. 30B, §§ 5 or 6). |
| Advertising Required | None. | None. |
post a notice 1) in your jurisdiction's office, and, at least two weeks before bids or proposals are due, publish 2) in a newspaper, and 3) on COMMBUYS. If the procurement will exceed $100,000, at least two weeks before bids or proposals are due, publish in the Goods and Services Bulletin. |
| Award contract to: | Responsible person offering the best price. | Responsible person offering the needed quality of supply or service at the lowest price quotation. | Under § 5, the responsible3 and responsive4 bidder offering the best price. Under § 6, the most advantageous proposal from a responsible and responsive proposer taking into consideration price and non-price proposals. |
| Written Contract Required5 | No. Keep written records as a best practice. | Yes. | Yes. |
| Maximum Contract Term6 | Three years, unless majority vote authorizes longer. | ||
| OSD Option | Yes. | ||
1 M.G.L. c. 30B, § 2, defines sound business practices as "ensuring the receipt of favorable prices by periodically soliciting price lists of quotes."
2 M.G.L. c. 30B, § 4, as amended by Chapter 218 of the Acts of 2016.
3 M.G.L. c. 30B, § 2, defines a responsible bidder or offeror as "a person who has the capability to perform fully the contract requirements, and the integrity and reliability which assures good faith performance."
4 M.G.L. c. 30B, § 2, defines a responsive bidder or offeror as "a person who has submitted a bid or proposal which conforms in all respects to the invitation for bids or request for proposals."
5 M.G.L. c. 30B, § 17(a), states "All contracts in the amount of $10,000 or more shall be in writing, and the governmental body shall make no payment for a supply or service rendered prior to the execution of such contract."
6 M.G.L. c. 30B, § 12(b), states "Unless authorized by majority vote, a procurement officer shall not award a contract for a term exceeding three years, including any renewal, extension, or option."
| Procurement Value by Funding Source Based on Use of Most Conservative Method by Threshold | ||||||
|---|---|---|---|---|---|---|
| Under $3,000 | $3,000 to $50,000 | $50,000 or over | Non-Competitive | |||
| Procurement Process | Sound Business Practice/Micro Purchase | Small Purchase Procedures | Sealed Bids (IFB) | Competitive Proposal (RFP) | Sole Source See State & Federal Restrictions |
|
| Methodology | No competitive quotes IF prices considered reasonable. Distribute purchases among qualified suppliers, to extent possible | Simple and informal. Obtain price or rate quotes from more an adequate number of qualified sources (seek at least 3). Quotes can be in writing, oral, vendor price list on website, online search. | To use: Complete, adequate, realistic specification or purchase description available. 2 or more reasonable bidders Fixed price contract feasible, selection can be based principally on price Requirements: Bids publically solicited, from adequate number of suppliers Sufficient response time Specifications and attachments will define items or services to allow bidder to respond All bids publically opened at prescribed time/place Reject a bid with sound documented reason | To Use: When conditions not appropriate for sealed bids Requirements: RFP must be publicized and identify all evaluation factors and relative importance Consider all responses to maximum extent possible Solicit from adequate # of qualified sources Written method for conducting technical evaluation of proposal and selection Separate price and technical proposals | Must meet: *Item available from only single source *Emergency *Federal awarding agency authorizes noncompetitive proposals in response to written request from non-Federal entity; *After solicitation from number of sources, competition determined inadequate | |
| Awarding | Person offering best price; Distribute purchases among qualified suppliers, to extent possible | Responsible and responsive person offering the best price. | Lowest price, responsible bidder who conforms with all material terms and conditions | Responsible firm whose proposal is most advantageous to program, with price and other factors considered | ||
| Cost or price analysis and/or profit negotiation | Not required | Not required | Required Starting point, independent estimates before receiving bids/proposals Must negotiate profit as separate element of the price if in excess of $150,000 | Required Starting point, independent estimates before receiving bids/proposals Must negotiate profit as separate element of the price if in excess of $150,000 | Must negotiate profit as separate element of the price (FAR suggests less than 10%) Gov’t/non-profit cannot keep profit | |
| Advertising Requirements | No | No |
Yes General circulation newspaper, at least 2 weeks before bid/proposal due and post on jurisdiction’s bulletin board or website; If $100,000 or more, advertise once in the Goods and Services Bulletin at least two weeks before bids or proposals are due. |
NA | ||
| Contract | No written contract required | Written contract required | Written contract; Firm fixed price contract (lump sum or unit price) | Written contract; Fixed price or cost-reimbursement type contract | ||
| Maximum Contract Term | NA | Three years, unless majority vote authorizes longer | ||||
| Contract Provisions | NA | All: Equal Employment Opportunity All: Debarment and Suspensions (EO 12549 and 12689) (require with bid response) Rights to Inventions Made Under a Contract or Agreement: see if 37 CFR 401.2 (a) Over $2,000 and construction: Davis-Bacon Act (40 U.S.C. 3141-3148) $10,000 or more: Termination for cause and for convenience Over $100,000: Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) Over $100,000 with employment of mechanics or laborers: Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708) Over $150,000: Clean Air Act (42 U.S.C. 7401-7671q.) and Federal Water Pollution Control Act (U.S.C. 1251-1387) Over $150,000: address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. | ||||
*Under $2,000 in case of acquisitions for construction subject to the Davis Bacon Act