Reverse Auction in Rhode Island

Rhode Island Statutes
Title 37. Public Property and Works
Chapter 37-2. State Purchases

§ 37-2-15. Source selection and contract formation - Statutory provisions

As used in this chapter unless the context in which they are used clearly requires a different meaning:
(1)    "Cost-reimbursement contract" shall mean a contract under which the state reimburses the contractor for those contract costs, within a stated ceiling, which are allowable and allocable in accordance with cost principles (as provided in § 37-2-43 ), and a fixed fee, if any.
(2)    "Established catalogue price" shall mean the price included in the most current catalogue, price list, schedule, or other form that:
(i)    Is regularly maintained by the manufacturer or vendor of an item;
(ii)    Is either published or otherwise available for inspection by customers;
(iii)    States prices at which sales are currently or were last made to a significant number of buyers constituting the general buying public for that item; and
(iv)    States prices which are obtained from the most recent industry wide publications and informational journals if any.
(3)    "Evaluated bid price" shall mean the dollar amount of a bid, after bid price adjustments are made pursuant to objective measurable criteria, set forth in the invitation for bids, which affect the economy and effectiveness in the operation or use of the product, such as reliability, maintainability, useful life, and residual value.
(4)    "Invitation for bids" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting bids in accordance with the procedures set forth in §§ 37-2-18 and 37-2-18.1.
(5)    "Request for proposals" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting proposals in accordance with the procedures set forth in this chapter.
(6)    "Responsible bidder or offeror" shall mean a qualified bidder or offeror who has the capability in all respects, including financial responsibility, to perform fully the contract requirements, and the integrity and reliability which will assure good faith performance.
(7)    "Responsive bidder or offeror" shall mean a person who has submitted a bid or offer which conforms in all material respects to the invitation for bids or proposals, so that all bidders or offerors may stand on equal footing with respect to the method and timeliness of submission and as to the substance of any resulting contract.
(8)    "Request for qualifications" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting qualifications of offerors prior to or during the solicitation of bids or proposals.
(9)    "Reverse Auction" shall mean a bid competition where the lowest responsive and responsible bidder wins the auction.
(10)    "Auctioneer" shall mean a business or organization that conducts an electronic reverse auction.

Cite as R.I. Gen. Laws § 37-2-15

§ 37-2-18.1. Reverse auctions

(a)    Contracts exceeding the amount provided by § 37-2-22 may be awarded by electronic reverse auctions when it is determined in writing by the chief purchasing officer that the state will obtain a better value with this method than with a competitive sealed bid process. Factors to be considered in determining whether electronic reverse auctions shall be utilized shall include:
(1)    Whether specifications can be prepared that permit electronic posting of bid solicitations and secure receipt of electronic bids; and
(2)    The cost for preparing and executing the auction; and
(3)    Whether conditions are such that the commodities or services to be purchased are appropriately competitive.
(b)    All reverse auctions shall be conducted electronically using real-time, on-line bidding procedures. These procedures shall include the following:
(1)    Participation as a bidder shall be subject to a prequalification process conducted in accordance with the provisions of § 37-2-25.1.
(2)    The solicitation shall designate both an opening date and time and a closing date and time. The closing date and time may be dependent on a variable or variables specified in the solicitation. At the opening date and time, the auctioneer shall begin accepting real-time, on-line bids. The solicitation shall remain open until the closing date and time.
(3)    Following receipt of the first bid after the opening date and time, all bid prices shall be posted electronically to the internet and updated on a real-time basis. At any time before the closing date and time, a bidder may offer a lower bid than the lowest bid of any bidder, including his own. A bidder's lowest bid shall supersede any prior higher bid offered by that bidder. Bid prices may not be increased at any time after the opening date and time. All bids shall be binding and may not be withdrawn. If a price entered by the bidder is in error, the bidder must correct the bid within the time period and manner specified in the solicitation.
(4)    The invitation for bids shall state that the award shall be made on the basis of the lowest responsive bid price.
(c)    The contract shall be awarded with reasonable promptness by written notice to the responsive and responsible bidder whose bid is either the lowest bid price, lowest evaluated, or responsive bid price.
(d)    Subsequent to the awarding of the contract, all documents pertinent to the awarding of the contract shall be made available and open to the public inspection and retained in the bid file.

Cite as R.I. Gen. Laws § 37-2-18.1