§ 37-2-18.1 - Reverse auctions.
SECTION 37-2-18.1
§ 37-2-18.1 Reverse auctions. – (a) Contracts exceeding the amount provided by § 37-2-22 may be awarded byelectronic reverse auctions when it is determined in writing by the chiefpurchasing officer that the state will obtain a better value with this methodthan with a competitive sealed bid process. Factors to be considered indetermining whether electronic reverse auctions shall be utilized shall include:
(1) Whether specifications can be prepared that permitelectronic posting of bid solicitations and secure receipt of electronic bids;and
(2) The cost for preparing and executing the auction; and
(3) Whether conditions are such that the commodities orservices to be purchased are appropriately competitive.
(b) All reverse auctions shall be conducted electronicallyusing real-time, on-line bidding procedures. These procedures shall include thefollowing:
(1) Participation as a bidder shall be subject to aprequalification process conducted in accordance with the provisions of §37-2-25.1.
(2) The solicitation shall designate both an opening date andtime and a closing date and time. The closing date and time may be dependent ona variable or variables specified in the solicitation. At the opening date andtime, the auctioneer shall begin accepting real-time, on-line bids. Thesolicitation shall remain open until the closing date and time.
(3) Following receipt of the first bid after the opening dateand time, all bid prices shall be posted electronically to the internet andupdated on a real-time basis. At any time before the closing date and time, abidder may offer a lower bid than the lowest bid of any bidder, including hisown. A bidder's lowest bid shall supersede any prior higher bid offered by thatbidder. Bid prices may not be increased at any time after the opening date andtime. All bids shall be binding and may not be withdrawn. If a price entered bythe bidder is in error, the bidder must correct the bid within the time periodand manner specified in the solicitation.
(4) The invitation for bids shall state that the award shallbe made on the basis of the lowest responsive bid price.
(c) The contract shall be awarded with reasonable promptnessby written notice to the responsive and responsible bidder whose bid is eitherthe lowest bid price, lowest evaluated, or responsive bid price.
(d) Subsequent to the awarding of the contract, all documentspertinent to the awarding of the contract shall be made available and open tothe public inspection and retained in the bid file.