Procurement Methods
EMWD purchases a variety of inexpensive items utilizing
procurement cards, or occasionally, petty cash. All other
purchases for materials, equipment, supplies, and services (with
the exception of public works construction) are the
responsibility of the Purchasing Division and will be authorized
by the issuance of a purchase order to the selected vendor.
The Purchasing staff uses the following three basic procurement
methods
- Request for Quotation (RFQ)
- Request for Bid (RFB)
- Request for Proposal (RFP)
Request for Quotation (RFQ)
This is a simplified process which reduces both paperwork and
administrative time and effort. Telephone quotations are used for
items of small dollar value or where time limitations do not
allow for routine hard copy solicitations.
Although purchase orders are issued based upon the best price
received from a responsible supplier, discussions may be held
with suppliers to clarify or otherwise ensure responses conform
to EMWD requirements.
Supplier responses, i.e., “Quotes”, should completely conform to
the RFQ requirements and include a firm price and the required
delivery date. The RFQ is a flexible and expeditious method for
acquiring goods and services.
Request for Bid (RFB)
The RFB process requires detailed specifications be solicited by
EMWD for firm bids. Bids are currently delivered electronically
via Bonfire Interactive.
The RFB process is rigid. Bids are due on or before the published
date and time for receipt as specified on the RFB. Bids received
after the exact time set for opening of bids will not be
accepted. Negotiation discussions are not allowed.
If suppliers have questions about Bid requirements, they should
ask for clarification prior to bid opening. Contract award is
based on the lowest price received from a responsive and
responsible bidder. Bids that take exception to the bid package
may be rejected.
Request for Proposal (RFP)
The RFP is used when the importance of technical considerations
dictates the contract award be based upon cost and “other
factors”. The “other factors” are expressed in the RFP as
Evaluation Criteria.
Unlike the RFB which contains a detail or design specification,
in an RFP the requirement is generally expressed in terms of
performance specification or required outcome. Suppliers are
asked to propose their own technical solution to achieve the
required results. Suppliers’ proposals may consist of a two-part
offer. The first part is the technical solution. The second part
is the price proposal.
The EMWD proposal evaluation and source selection process begins
with evaluation of the technical proposal by using the Evaluation
Factors listed in the RFP to assess the acceptability of each
technical proposal received. After technical merit is determined,
the pricing proposals of those suppliers whose technical
proposals are determined to be acceptable are reviewed.
Evaluations of technical merit and price are then completed. In
order to ensure a complete understanding of all issues, and the
proposed price properly reflects that understanding, negotiation
discussions may be conducted.
Contract award is made based upon EMWD’s “best buy”
determination. The “best buy” need not be the lowest price.