Bid Procedure (Extraction)

Opening of Bids:

· The sealed bids must be publicly opened and read orally at the time and place specified in the bid advertisement. While most bids are opened at regular or special board meetings, they may be opened at a different time and place as specified in the bid advertisement.

1. Special board meetings must be advertised to the public at least 24 hours prior to the meeting. Posting on the web site is acceptable.

· Since statute only allows for “sealed” bids to be submitted, a vendor may not FAX a bid directly to the entity.

· All bids should be spread in the minutes by vendor and amount unless the volume of bidders or items bid makes publication prohibitive. Then only the successful bidder needs to be published with reference that all other bids are on file.

Tabling of Bids:

• Not more than 30 days can elapse between the opening of the bids and either the acceptance of the bid of the lowest responsible bidder or the rejection of all bids presented.

Withdrawal and Modification of Bids:

• Any bid may be withdrawn by letter, in person, by FAX or by telegraphic communication. Any bid may be modified by mail, FAX or by telegraphic communication provided such notice is received no later than the time set for the opening of bids. The telegraphic communication or FAX cannot reveal the bid price but only the addition or subtraction to the bid price. A telegraphic communication or FAX may not be withdrawn after the opening of the bid and all FAX and telegraphic communications must be confirmed in writing before the awarding of the contract.
• The discovery of a computational error in the low bid after its acceptance by the governing board does not authorize additional payment by the governing board.
• No bid can be changed or altered verbally by telephone.

Lowest Responsible Bid:

· Existing statute requires the acceptance of the lowest responsible bid in all cases.

· If two bids are submitted that are equal in dollar amount, the board may consider additional attributes in determining the lowest responsible bidder. Some of the additional attributes to be considered are: 1) the bidder’s ability to respond to the requirements of the contract, 2) his ability to execute the contract, and 3) his integrity, judgment and skill.

Rejection of Bids:

• The governing board has the right to reject any and all bids if they feel the bids are not satisfactory or if they believe an agreement has been entered into to prevent competition.
• Notwithstanding provisions of SDCL 5-18-2, the board of township supervisors may reject a bid as unsatisfactory on the basis that the bid was the only bid received, and may re-advertise for bids.
• In the event the low bid is not responsible or the bid is withdrawn, the bid of the next lowest bidder may be accepted.

Awarding of Bids:

· All contracts, whether for the construction of public improvements or contracts for the purchase, lease or rental of materials, supplies or equipment, must be let to the lowest responsible bidder.

· If the lowest possible bid exceeds the final estimated project cost by ten percent or less, any local government may negotiate with the low bidder for the construction of a public improvement or for the purchase of the materials, supplies or equipment at the most advantageous price.

· If other than the lowest bid is accepted, the board minutes must clearly document the reasons why the lowest bid was not accepted.

· A public body cannot reject the low bidder and accept another if the low bid is in conformance with the specifications, is in compliance with SDCL 5-18 and the low bidder is responsible.

· Unconditional rebates may be considered when performing the calculations to determine the lowest responsible bidder.

· No public corporation may award any contract for the construction of any public improvement unless the public corporation has verified with the Department of Revenue that the contractor has a contractor’s exist tax license pursuant to chapter 10-46A or 10-46B.

· The bid is valid for one calendar year. The project needs to be completed within one year from the date of the award.

Negotiations of Contract When No Bids Are Received or When Firm Bids Are Not Received:

• If no bids or no firm bids are received for the purchase of materials, supplies or equipment, the governing board may negotiate a contract at the best price. The materials, supplies or equipment purchased under a negotiated contract must meet the specification originally bid.
• The governing board must contract and attempt to obtain competitive quotations from three vendors. A record of the names of the vendors, amounts quotes and the procurement procedures used are to be documented, indicated in the minutes and retained on file.