Purchasing and Business Services Manual (PUR)

Effective: 1/1/1985

Revised: 7/1/2008

PUR 502–02: Accepting or Rejecting Bids or Proposals

Purpose

To define the conditions for accepting or rejecting bids or proposals

Sources

Arizona Board of Regents Policy Manual - 3-803

University policy

Policy

Purchasing and Business Services may accept some bids or proposals submitted by vendors and reject others because of irregularities or other factors. Bids or proposals may be accepted or rejected under the following conditions:

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Conditions under which Bids or Proposals May Be Accepted

Envelope Not Sealed

An unsealed envelope may be treated as a minor informality and is not cause for rejection of the bid or proposal.

Erasures or Corrections

Erasures or corrections to a bid or proposal may be treated as minor informalities and are not cause for rejection of the bid or proposal. If erasures or corrections are noted at the time of opening and reading of bids or proposals, however, a verbal announcement will be made and a notation included in the bid or proposal file.

Failure to Submit Subcontractors List

Failure to include a subcontractors list with a bid or proposal is not cause for rejection of the bid or proposal unless it is specified in the solicitation that the subcontractors list must be included with the bid. The requirement for the submission of a subcontractors list is for the purpose of determining the qualifications of the subcontractors. The failure to include a subcontractors list may be corrected by the bidder or proposer by submission of a subcontractors list within a reasonable time as specified by the director of Purchasing and Business Services.

Modification of Bids or Proposals before Opening

Bidders or proposers may modify bids or proposals, or correct mistakes discovered before the time and date set for opening, provided the modifications or corrections are made in writing.

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Conditions under which Bids or Proposals May Be Rejected

Bids or Proposals Not Submitted on University Forms

Bids or proposals that are not submitted on university forms may be rejected provided it is made clear in the solicitation that university forms are to be used for submission of bids or proposals and that failure to do so will cause rejection of the bid or proposal. Otherwise, the failure to submit proposals on ASU forms will be treated as a minor informality.

Insufficient Competition

If only one bid or proposal is received in response to the solicitation, an award may be made if the director of Purchasing and Business Services determines that the proposed price is fair and reasonable, that other prospective bidders or proposers had a reasonable opportunity to respond, and that time constraints do not allow for a new solicitation. Otherwise, the bid or proposal may be rejected for insufficient competition.

Low Price Unreasonable

If the lowest price received in response to a solicitation does not seem reasonable after a price analysis, the bids or proposals may be rejected and a new solicitation issued.

Modification of Bids or Proposals after Opening

Bidders or proposers may not withdraw a bid or proposal or correct a mistake based on an error in judgment. Minor informalities in a bid or proposal may be waived or corrected if correction is advantageous to the university. If a nonjudgmental mistake is obvious and the intended bid or proposal is evident on the face of the bid or proposal, the bid or proposal shall be corrected to reflect the intended bid or proposal. If an obvious error is evident on the face of the bid or proposal but the intended bid or proposal is not evident, the bidder or proposer may be allowed to withdraw the bid or proposal without penalty. If the bidder or proposer establishes by clear and convincing evidence that a nonjudgmental mistake was made, the bidder or proposer may be allowed to withdraw the bid or proposal without penalty.

Nonresponsive Bids or Proposals

Bids or proposals may be rejected as nonresponsive if they fail to conform in all material respects to the solicitation.

Nonresponsive Bidder or Proposer

Bids or proposals may be rejected and the bidder or proposer deemed nonresponsive if there is justification, to include past performance, that the bidder or proposer cannot adequately provide the goods or service requested.

Signature Missing

Bids or proposals that do not have the signature of the vendor’s representative shall be rejected provided it is made clear in the solicitation that a signature of the bidder’s or proposer’s representative is required and that failure to provide it will cause the bid or proposal to be rejected. Otherwise, failure to sign the bid or proposal will be treated as a minor informality.

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Conditions under which Bids or Proposals Will Be Rejected

Bid Bond Not Included

If the solicitation requires the submission of a bid bond, failure to submit such bond will cause rejection of the bid or proposal as nonresponsive.

Failure to Meet Requirements

Failure to meet specifications, required delivery time, or other requirements specified in the solicitation shall be cause for rejection of the bid or proposal.

Late Bids or Proposals

Bids or proposals not received at the date, time, and location specified in the solicitation will not be considered. Late bids or proposals will be so noted on the envelope and will be returned to the bidder or proposer. A notation will be recorded in the bid or proposal file. It is the responsibility of the bidder or proposer to ensure that the bid or proposal is received on time.

Facsimile, Telegraph, or Telephone Bids or Proposals

Facsimile (fax), telegraph, or telephone bids or proposals will not be considered in procurements costing $50,000 or more. At the buyer’s discretion, facsimile, telegraph, or telephone bids may be considered in procurements costing less than $50,000.

Withdrawal of Bids or Proposals

Bids or proposals may be withdrawn at any time before the date set for opening. Bids or proposals may not be withdrawn after opening except as allowed by the director of Purchasing and Business Services.

Conflict of Interest

Bids or proposals submitted by an individual or firm that developed the specifications or plans for a project will not be considered.

Cross-References

For related information on conflict of interest, see PUR 103, “Conflict of Interest.”

For related information on bidding, see PUR 501–03, “Bid Security and Performance and Payment Bonds.”

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