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New Competitive Bidding and Contract Rules Established
Message Posted October 20, 2003
FORM 470
In previous years, some applicants simply listed dozens of services on their 470 Description of Services instead of making the services requested align to their technology plan and to their actual needs. In these cases, vendors really had no way of knowing what services they should be bidding on. Because of this practice, the SLD will be looking closely at the 470, and whether you've taken this step seriously. More detail should be included, rather than less, and no longer will they accept a laundry list of items from the eligible services list. According to the SLD, it is still acceptable to list "high speed internet access for X number of buildings or T-1 or greater speeds connecting 8 schools", but listing "T-1, T-3, ATM, and Fiber for all district buildings", is no longer acceptable.
In addition, since voice mail is now a newly eligible service, the SLD is insisting that if you want this service, you need to list it on your 470. And although centrex service always has been eligible, you should begin listing this service on your 470 as well, just to be safe. As I said, the more detail on the 470 the better.
Finally, the SLD is insistent that if there is a possibility that you may sign a multi-year contract, you must inform potential bidders of this on your 470, Item 13 and/or in you RFP (if one is available). Therefore we are advising virtually all applicants to list this or similar language on Item 13 of the Form 470, "There is a possibility that we may sign a multi-year contract for this service."
BID EVALUATION PROCESS AND DOCUMENT RETENTION
Applicants are expected to evaluate all bids that are received as a result of your 470 posting and select the most cost effective vendor. This means that you are required to have price be the most heavily weighted factor when selecting your vendor. For example, if you have 3 criteria you're using to judge your bids (such as price, experience and response time), price must be weighted at least 34% of your consideration.
Applicants are advised to save all bids received (even for services such as basic and long distance phone service) and all bid evaluation documentation. If no bids are received for a specific service, the SLD advises applicants to "log" that fact (e.g., document in a memo-to-file). For example if you posted a 470, waited 28 days, received no bids and chose to stay with your current provider, you would write a brief memo for your Year 7 E-rate file which states, "Year 7 Form 470 posted for X service. No bids received.
Existing service provider selected. Sign and dated." If more than one bid is received, applicants should have a bid evaluation procedure to select your vendor, and one that can be produced on a moment's notice for the SLD, if requested, showing the scores of the proposals submitted.
CONTRACTS
For services not provided under tariff or month-to-month arrangements, the SLD previously accepted service provider quotes or purchase orders as evidence that the school intended to enter into agreement with the service provider for the requested services or products. The SLD has now changed this rule, stating that that CONTRACTS, not simple quotes, were required prior to the submission of Form 471 discount requests, and that what constitutes a 'contract' is determined by state law. We have consulted with PDE's General Counsel's Office, and they stated that only the purchaser of services need sign the contract for it to be a legal contract under PA Procurement Law. Further, purchase orders also are considered contracts under the law. And finally, as we've advised you to do before, PDE has confirmed that it is permissible under state law to include contingencies in your contract, such as contingencies for E-rate and other funding, if you don't want the service without the E-rate discounts.
These and other new E-rate rules/changes for Year 7 will be discussed in detail at both the Beginners and Veterans E-rate Training Workshops. There are still a few seats remaining at all locations, so if you haven't registered yet, please do so asap!
Please let me know if you have any questions.
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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