The Montana Heritage Commission has specific procurement procedures based on the estimated value and type of commodity being sought by Commission staff.

1) The Executive Director will authorize in writing certain staff to make purchases for the Commission. Expenditures limits may be set at specific amounts. In addition, procurement cards may be issued to certain employees.

2) Purchases of $500 or Less ("Small Purchases")

If the estimated value of a purchase is $500 or less, authorized Commission staff may purchase the item directly from a vendor. At all times, Commission staff should seek the best price for an item or service, keeping in mind that all funds are limited.

3) Purchases Between $500 and $5,000 (“Verbal Bids”)

If the estimated value of a purchase is between $500 and $5,000, Commission staff will obtain verbal bids from a minimum of two vendors.

4) Purchases Between $5,001 and $15,000 ("Limited Solicitation")

If the estimated value of a purchase is between $5,001 and $15,000, the Commission may purchase the item using informal documented competition (written bids).

5) Purchases Over $15,000 (Formal Competitive Requirements)

If the estimated value of the purchase will exceed $15,000, a formal competitive method must be used to procure the item. The Montana Heritage Commission utilizes two formal procedures -- an Invitation for Bid (IFB) or a Request for Proposal (RFP).

6) Invitation for Bid (IFB)

An "Invitation for Bid" is used when the Commission knows precisely what supplies or services it wishes to purchase. The IFB will contain technical specifications and a formal bid closing date/time, which the vendor must comply with in order to be considered for award. Contracts, in most cases, are awarded to the bidder submitting the lowest, responsible bid price.

Interested vendors and the public are invited, but not required, to attend the formal opening of the bids at the time and place listed in the IFB. Normally, no decisions related to an award will be made at the bid opening in order to allow the Commission the opportunity to analyze the submitted bids for compliance with the specifications, terms, and conditions of the IFB.

Request for Proposal (RFP)

A "Request for Proposal" is typically used for complex procurements. It is often used when the Commission needs to consider factors, in addition to cost, in obtaining the required supply or service. The RFP will state the relative importance of all evaluation factors.

The RFP process permits at the Commission’s discretion, negotiation of proposals, including prices. A formal proposal closing date/time will be specified.

Special Note: Vendors should be aware that due to a ruling by the Montana Supreme Court in late May 1998, all of the contents of requests for proposals are open for public inspection with few exceptions. Proposal documents are considered "open" after the time set for receipt of the proposals. In addition, the public may attend all meetings of the evaluation committees. Only legitimate trade secrets (those meeting the requirements) of Title 30, chapter 14, part 4, MCA) and certain financial information may be withheld from public inspection.

Contracting Methods Used by the Commission

There are several types of contracting methods used by the Commission in making purchases. The procurement official selects the appropriate contract method.

A Purchase Order is typically used when making a one-time purchase and formalizes the purchase transaction with a vendor. The purchase order will contain the quantity, description, and price of the supplies or services desired, applicable terms for payment, dates of performance, transportation terms, and any other factor pertinent to the purchase and its execution by the

vendor.

State of Montana Procurement Cards may be also be used when making a one-time purchase. A dollar limit is placed on purchases of Commission staff as indicated in each employee’s contract with the State of Montana Procurement Card office.

A Vendor Contract is awarded by IFB or RFP for a specific period of time, with the ability to extend in annual intervals for a predetermined period. This extension is dependent on the agreement of both parties. The Commission issues contracts exclusively between the Commission and the Vendor. NOTE: Open-ended impose no obligation on the Commission other than the requirement to purchase whatever quantities as may be required during the period of the contract from the successful contractor(s), unless otherwise stated. Be sure to note that receipt of a contract does not authorize shipment; the contract holder may only ship after an order has been received from the Commission.

How the Commission Evaluates and Awards Bids

In the case of an Invitation for Bid, the Commission will award a contract to the lowest responsible bidder meeting all of the criteria and specifications of the solicitation. However, the Commission reserves the right to reject any or all bids when it is in the best interest of the Commission. Exceptions can also be made to awarding a contract to the lowest responsible bidder, when the vendor awarded is a sole source provider for the item or service being solicited.

Cash discounts offered by a vendor for quick payment are encouraged but the discounts are not considered in evaluating the bids.

In the case of a Request for Proposal, the contract is awarded based on the criteria stated in the RFP.

Payment

After delivery of the supplies or services, the vendor must submit a copy of the invoice to the Commission and sent to the “Bill To” address indicated on the purchase order. The invoice, packing lists, and any correspondence must reference the purchase order or contract number.

All payment terms will be computed from the date of delivery of the goods or receipt of a properly executed invoice, whichever is later. The Commission is allowed 30 days by statute to pay such invoices, unless other provisions have been incorporated into the purchase order.

When merchandise is received by the agency, it is inspected and checked against the specifications and a receiving report is prepared. The receiving report is matched with the vendor's invoice and the order form. If discrepancies are noted, the vendor will be contacted for correction.

In the instances involving purchases of $5,000 or less, The Commission may choose to utilize the Commission’s "pro-card" in which case, payment is made by the card company to the vendor within 72 hours.

HOW TO RESPOND TO BIDS AND PROPOSALS

Vendors are encouraged to submit bids/offers for each IFB or RFP that they can supply in accordance with the specifications, terms, and conditions stated in the IFB/RFP. Bidders/offerors should carefully read the entire solicitation.

Currently, the Commission does not accept bids or proposals electronically. All bids must be submitted on the forms provided. The use of company bid forms containing terms and conditions, which are in conflict with those of the Commission, are not acceptable. The

bid or proposal must be signed by an authorized representative. The bids and offers must be submitted in a sealed envelope or box with the IFB or RFP number and closing date in the upper left-hand corner just below the return address.

It is the vendor's responsibility to ensure that a bid or proposal is received by the issuing agency prior to the time and date specified. Late bids will be rejected regardless of the degree of lateness or the reason for the delay, including causes beyond the control of the vendor.

Facsimile copies of bids will be accepted only if they fully comply with all other conditions of the IFB and only if they are transmitted and received prior to the time and date set for receipt of bids. Facsimile copies of responses to an RFP will be accepted only on an exception basis with the prior approval of the procurement official.

Bids and proposals may be withdrawn prior to the bid/proposal opening time and date. Unless withdrawn, all submitted bids and proposals become the property of the Commission. Bids and proposals must be firm for 30 days, unless otherwise provided for in the IFB or RFP.

Bid/Proposal Submission Checklist

Below is a checklist to use when preparing a bid or proposal. The list includes common errors made by bidders and offerors responding to IFBs and RFPs. Please note that these instructions do not contain all applicable requirements, and careful reading of the IFB or RFP is critical.

Review all standard terms and conditions

Properly identify return envelope or box

Sign your bid or offer on the front page

Initial any bid or offer changes you make

Submit bid security (if requested)

Include literature (if requested)

List contractor registration (if requested)

Review and complete all listed requirements

Bid F.O.B. destination (Ship to: address) Freight prepaid

Include Montana-Made preference affidavit if applicable

Have current Montana resident preference affidavit in place if applicable

Sign and return with bid/proposal, the Acknowledgement of Addendum (if any)

Bid and Contract Performance Security

Requiring security as a part of the bidding and award process is intended as protection for the Commission against the bad faith or failure of the bidders, offerors, and contractors. "Bid or proposal security" affords protection against a bid/offer being withdrawn after it has been opened. "Contract performance security" is required to provide for the fulfillment of the contract

obligations.

If bid or proposal security is required, it will be stated in the IFB or RFP. The amount of security required is determined by the procurement official. At the time the bid or offer is submitted, the bidder or offeror must furnish the bid or proposal security in one of the following forms:

A sufficient bond from a surety company licensed in Montana with a Best's rating of no less than A-;

Lawful money of the United States;

An irrevocable letter of credit not to exceed $100,000, a cashier's check, certified check, bank money order, certificate of deposit, money market certificate, or bank draft that is drawn or issued by a federally or state-chartered bank or savings and loan association that is insured by or for which insurance is administered by the federal deposit insurance corporation or that is drawn and issued by a credit union insured by the national credit union share insurance fund.

All securities must be assigned only to the Montana Heritage Commission, including certificates of deposit and money market certificates. All interest income from these certificates must accrue only to the contractor and not the Montana Heritage Commission. Facsimile copies of securities are not acceptable. Negotiable securities will be returned to the unsuccessful vendors after the award is made.

If contract performance security is required, the successful bidder/offeror’s bid or proposal security will be held until the appropriate contract security is received by the requesting agency. The amount of security required is determined by the procurement official. It is generally required on all construction contracts and on service contracts in which a part of the contract price is for the payment of labor.

The types of securities accepted for contract performance security are the same as those listed above. All contract performance securities must be assigned only to the Montana Heritage Commission and remain in effect for the entire contract period, unless otherwise noted. Facsimile copies of the securities are not acceptable. The security must provide that, if the bidder/offeror fails to perform any such obligations, the Montana Heritage Commission may recover from either the bidder/offeror or the surety company (or both) all damages suffered because of the breach.

If contract security is required, the contractor may not start work until the security has been received and accepted.