W. Va. Code R. § 148-1-11

Current through Register Vol. XLI, No. 24, June 14, 2024

Section 148-1-11 - Reverse Auctions

11.1. Authority. Authority to promulgate rules relating to reverse auctions derives from W.Va. Code § 5A-3-10d.

11.2. Justification for Use. The spending unit requesting that a reverse auction be utilized to procure commodities must provide the Director with an explanation of how the reverse auction process would be fair, economical, and in the best interest of the state. Additionally, the spending unit must provide written documentation verifying that the commodities to be procured:

11.2.1. Are subject to low price volatility;

11.2.2. Have specifications that are common and not complex;

11.2.3. Vary little between suppliers;

11.2.4. Are sourced primarily based on price, with limited ancillary considerations;

11.2.5. Require little collaboration from suppliers; and

11.2.6. Are sold by a large, competitive supply base.

When soliciting bids for commodities through a reverse auction, the Purchasing Division may be considered the spending unit and the Purchasing Division may rely on information provided by one or more of the spending units that will utilize the contract in satisfying the requirements necessary to utilize a reverse auction.

11.3. Prequalification. All reverse auctions conducted under these rules must be preceded by prequalification of vendors. Only vendors that have completed prequalification for the auction will be permitted to participate in the auction. Prequalification will be completed as follows:

11.3.1. Notice of Reverse Auction. If the Director approves the spending unit's request to utilize a reverse auction, the spending unit will then prepare specifications to describe the commodity being procured by reverse auction and list any mandatory requirements the vendor must meet. The spending unit must then provide that information to the Director, along with any additional documentation the Director deems necessary, in a manner suitable to the Director. The Purchasing Division will then ensure that an adequate description of the contemplated reverse auction is included and will advertise the reverse auction in the same manner that a request for quotation is advertised under Chapter 5A, Article 3 of the West Virginia Code.

11.3.2. Prequalification Bid. Any vendor desiring to participate in the reverse auction must submit a prequalification bid to the Purchasing Division before the deadline contained in the advertisement or specifications. Failure to submit a prequalification bid prior to the deadline will result in automatic disqualification from participation in the reverse auction. The Director may request additional information from a vendor to assist in evaluating a vendor's prequalification bid.

11.3.3. Prequalification Request Review; Approval; Denial. Each prequalification bid submitted prior to the applicable submission deadline will be evaluated to ensure compliance with all specifications and mandatory requirements. All vendors in compliance with the specifications and mandatory requirements will be notified that they have been approved to participate in the reverse auction. Vendors that are not in compliance with the specifications and mandatory requirements will be notified that their request to participate in the reverse auction has been denied.

11.3.3.a. Approval. A vendor that has been approved will be provided with the necessary information to participate in the reverse auction. This information may include website addresses, log-in information, etc.

11.3.3.b. Denial. A vendor that has been denied will be provided with notice thereof and, upon request, the vendor must be provided with a reason for the denial.

11.4. Reverse Auction Bidding. The prequalified vendors will be granted access to participate in the reverse auction either physically or electronically depending on the format of the auction. Each prequalified vendor may submit bids until the time for bidding has expired. Any bid that a vendor submits during the reverse auction process will supersede all prior bids submitted by that vendor.

11.5. Award. The lowest responsible bidder within the time period allowed for the reverse auction will be awarded a contract. If the Director determines that a vendor identified as the lowest responsible bidder has failed to meet a mandatory requirement contained in the specifications or if the vendor fails to consummate the contract after bidding, the Director may reject the bid of that vendor or cancel an award that has been made and move to award to the next lowest responsible bidder.

11.6. Reverse Auction Options. The Director may conduct reverse auctions through software systems owned and/or operated by the State of West Virginia, through industry-recognized third-party providers, through mailing and electronic submissions, or through a live auctioneer. Third-party providers or auctioneers must be selected through a procurement method authorized by Article 3, Chapter 5A of the West Virginia Code for the procurement of services.

W. Va. Code R. § 148-1-11