COMPETITIVE SEALED BIDS (§13-1-102 – 13-1-110 NMSA 1978)
Competitive Sealed Bids are for purchases of items of tangible personal property; services and construction over the $10,000 or $20,000 small purchase limits (See small purchase requirements above). Bids for construction contractors or heavy equipment purchases are good examples of a competitive sealed bid. Below are the steps a land grant-merced must follow when procuring services or goods through a competitive sealed bid process:
If a competitive seal bid is required for services the first thing the land grant-merced must do is comply with the New Mexico State Use Act. Please see page on New Mexico State Use Act for more information.
1. The first step is to develop an “invitation to bid.” The invitation for bids shall include the specifications for the services, construction or items of tangible personal property to be procured all contractual terms and conditions applicable to the procurement, the location where bids are to be received and the date, time and place of the bid opening (13-1-103 NMSA 1978). The invitation to Bid should be specific in requesting “Competitive Sealed Bids” and requiring the envelope with the bids be marked as “Competitive Sealed Bids.”
2. Once the invitation to bid is completed the land grant-merced must publish a notice of the invitation to bid in at least one newspaper of general circulation in the area, such as the Albuquerque Journal, Santa Fe New Mexican etc. (13-1-104 NMSA 1978). The notice must be published not less than 10 calendar days prior to the date of when sealed bids received are to be opened (13-1-113 NMSA 1978). The notice of invitation to bid must include: a brief description of the services, construction or items of tangible personal property being sought in the invitation to bid; the name and contact information for the person responsible for distributing the invitation to bid packet as well as the location and time, if applicable, of where bid packets can be picked up; the time deadline for submitting bids.
3. When bids are received do not open; stamp or write the date, time and who received the bids and store in a secure place until the time and date set for the bid opening.
4. The bid opening shall be done publicly and in the presence of one or more witnesses at the time and date designated in the invitation for bids (13-1-107 NMSA 1978). Once opened the amount of each bid along with the name of each bidder shall be recorded and the record and each bid shall be open for public inspection.
5. If the bid is for a construction contractor:
a. The land grant-merced must determine that the contractor is not listed as an ineligible contractor on any State or Federal Lists. This can be done by contacting the New Mexico Regulation and Licensing Department Construction Industries Division at (505) 476-4700 or via the web at www.rld.state.nm.us/CID/. Be sure and document the outcome with the date, time, and the name of the person providing the information or print directly from the website.
b. If the project is greater than $50,000, the contractor must provide proof they registered with the NM Department of Workforce Solutions (NMDWS). This registration fee is $200. Any subcontractor(s) must also register; but may do so after they have been hired. A land grant-merced can verify that all contractors and subcontractors are registered by contacting the NMDWS at (505) 827-6875.
c. It is also important to verify that the contractor’s bonding company is licensed to do business in New Mexico. A land grant-merced can do this by contacting the Company Licensing Section of the Public Regulation Commission at (505) 827-3978 or fax (505) 827-4734.
6. After reviewing all the bids the land grant-merced shall award the bid to the lowest bidder for purchases or if it is a bid for a construction contractor to the lowest bidder that meets all of the above covered requirements. The contract must be a firm fixed-price contract (lump sum or unit price). The award should be approved by the board of trustees and included in the minutes. The lowest bid shall be determined exclusive of any applicable state or local taxes. The award shall be by written notice to the lowest bidder with reasonable promptness. (13-1-108 NMSA 1978).
In the event that a land grant-merced receives two identical low bids then the land grant-merced can take any of the following actions (13-1-110 NMSA 1978):
a. Award to a resident business if the identical low bids are submitted by a resident business and a non-resident business.
b. Award to a resident manufacturer if the identical low bids are submitted by a resident manufacturer and a non-resident manufacturer.
c. Award by lottery to one of the identical bidders; or d. Reject all bids and re-solicit bids or proposals.
In the event that the land grant-merced does not receive any bids or determines that it is in the best interest of the land grant-merced to not accept the bid received, the land grant-merced may cancel the solicitation of bids or reject in whole or in part all bids submitted. The land grant-merced must document the reasons for the cancellation or rejection and include that documentation as part of the procurement file. Once a solicitation is cancelled or all bids associated with a solicitation are rejected the land grant-merced must re-solicit a new invitation for bids. In the case where a land grant-merced did not receive any bids or the bids received are not acceptable in both the first or second solicitations of bids, the land grant-merced may purchase the tangible personal property, construction or services associated with the bid in the open market at the best obtainable price.
7. Once the notice of award has gone out the land grant- merced can prepare and execute a contract formalizing the scope of work, delivery of service schedule and terms of payment.
8. It is also important that the land grant-merced send written notice, by mail, within 15 days of award to all other respondents to the invitation for bid that they did not receive the bid award.
