Determining Bidder ResponsibilityVolume 5, Chapter 4
INTRODUCTIONThis chapter sets forth University policy regarding bidder "responsibility" and addresses the four methods of determining responsibility: Show
(Back to top) 4.1 RESPONSIBILITY: ORIGIN AND POLICYReferences: - Public Contract Code, State of California, Sections 10500-10506. The term "responsible," as applied to bidders, has its origin in Public Contract Code, Section 10501, and in University policy. The code and policy both require that contracts "be awarded to the lowest responsible bidder" (see 1.1). A "responsible" bidder is one who is able to satisfactorily perform the work. A contract does not have to be awarded to the lowest bidder if that bidder is not responsible, as determined by the University. The bid, itself, must also be "responsive"; that is, the form and content of the bid must meet the requirements of the bidding documents (see 7.1). A contract does not have to be awarded to the lowest responsible bidder, if that bidder's bid is nonresponsive. University procedure is to use (1) standard bidding document requirements, (2) prequalification, (3) qualification, or (4) disqualification to determine the responsibility of a contractor or subcontractor or their intention to bid on University construction contracts. (Back to top) 4.2 STANDARD BIDDING DOCUMENT REQUIREMENTSThe application of standard, predetermined responsibility requirements in the bidding documents is the most frequently used method of determining bidder "responsibility." If bidders cannot meet these requirements, they should not submit a bid. Any submitted bid not meeting these responsibility requirements is declared nonresponsive (see 7.1). The University's construction documents contain the following predetermined responsibility requirements:
(Back to top) 4.3 PREQUALIFICATIONPrequalification may be used with any contracting mode (see FM4) and is usually used when the Facility wants required project work to be performed by a contractor who has successfully completed similar work. For example, the Facility may determine that to successfully complete a project, the contractor needs five years' experience with specific types of equipment and supervisory expertise in handling toxic waste. The prequalification process will lengthen the bidding period unless prequalification is concluded before the scheduled bidding period. 4.3.1 Prequalification GuidelinesWhen using prequalification, adhere to the following guidelines:
4.3.2 Contractor Prequalification Procedures
The Office of the President is available to provide assistance in preparing the Advertisement For Bids From Prequalified Contractors, the Prequalification Questionnaire, the Prequalification Evaluation and the Announcement to Prequalified Bidders. 4.3.3 Subcontractor Prequalification Procedures
(Back to top) 4.4 QUALIFICATIONBidder qualification is another method of determining bidder "responsibility" (see 4.1) in a limited way by setting forth certain qualification requirements at the time of bid. This method may be used when bidder requirements are not extensive, and time is not available to prequalify bidders. The qualification method may involve, for example:
4.4.1 Qualification Guidelines
4.4.2 Qualification Procedures
(Back to top) 4.5 DISQUALIFICATIONDisqualification is another method of determining bidder "responsibility" (see 4.1). Disqualification may prohibit a contractor from bidding on University projects for a set period of time, whereas prequalification (see 4.3) and qualification (see 4.4) evaluate contractors for bidding on a specific project or on a predetermined value of multiple projects. A list of contractors that have been debarred and are not eligible to bid on public works projects as a result of violations of Labor Code provisions governing prevailing wage and apprenticeship is available on the DIR website. The Facility can check this list to verify if a potential bidder is eligible. Inevitably, there will be some defective work, schedule overruns, and disputes about guarantee work on almost all projects. Before a bidder can be disqualified, however, the Facility must establish, in an objective manner, that the bidder's past performance was materially deficient in the area used as the basis for disqualification. Use the guidelines in 4.5.1 and procedures in 4.5.2 to establish an objective basis for disqualification. 4.5.1 Disqualification Guidelines
4.5.2 Disqualification Procedures
(Back to top) Revised February 24, 2012 (Change No. 12-002-C) << Back to Table of Contents Next chapter >> |