M.G.L. c.30B Procurement of Supplies and Services

Estimated Contract AmountUnder $10,000$10,000 to $50,000Over $50,000
Procurement ProcedureSound business practices.1Use a written purchase description to solicit written quotations from no fewer than 3 persons who customarily provide the supply or service.2Sealed bids or proposals. (M.G.L. c. 30B, §§ 5 or 6).
Advertising RequiredNone. None.

Post a notice 1) in your jurisdiction's office, and, at least two weeks before bids or proposals are due, publish 2)in a newspaper, and 3) on COMMBUYS.

If the procurement will exceed $100,000, advertise once in the Goods and Services Bulletin at least two weeks before bids or proposals are due.

Award contract to:Responsible person offering the best price.Responsible person offering the needed quality or service at the lowest price quotation.Under § 5, the responsible3 and responsive4 bidder offering the best price. Under § 6, the most advantageous proposal from a responsible and responsive proposer taking into consideration price and non-price proposals.
Written Contract Required5No. Keep written records as a best practice.Yes.Yes.
Maximum Contract Term6Three years, unless majority vote authorizes longer.

 

1 M.G.L. c. 30B, § 2, defines sound business practices as "ensuring the receipt of favorable prices by periodically soliciting price lists or quotes."

2 M.G.L. c. 30B, § 4, as amended by Chapter 218 of the Acts of 2016.

3 M.G.L. c. 30B, § 2, defines a responsible bidder or offeror as "a person who has the capability to perform fully the contract requirements, and the integrity and reliability which assures good faith performance."

4 M.G.L. c. 30B, § 2, defines a responsive bidder or offeror as "a person who has submitted a bid or proposal which conforms in all respects to the invitation for bids or request for proposals."

5 M.G.L. c. 30B, § 17(a), states "All contracts in the amount of $10,000 or more shall be in writing, and the governmental body shall make no payment for a supply or service rendered prior to the execution of such contract."

6 M.G.L. c. 30B, § 12(b), states "Unless authorized by majority vote, a procurement officer shall not award a contract for a term exceeding three years, including any renewal, extension, or option."

 

2 CFR 200 Methods of Procurement of Supplies and Services (200.320)

 

Procurement Value by Funding Source
Based on Use of Most Conservative Method by Threshold

 

Under $3,000

$3,000 to $50,000

$50,000 or over

Non-Competitive

Procurement Process

Sound Business Practice/Micro Purchase

Small Purchase Procedures

Sealed Bids (IFB)

Competitive Proposal (RFP)

Sole Source
See State & Federal Restrictions

Methodology

No competitive quotes IF prices considered reasonable.

Distribute purchases among qualified suppliers, to extent possible

Simple and informal. Obtain price or rate quotes from more an adequate number of qualified sources  (seek at least 3). Quotes can be in writing, oral, vendor price list on website, online search.

To use:

Complete, adequate, realistic specification or purchase description available.

2 or more reasonable bidders

Fixed price contract feasible, selection can be based principally on price

Requirements:

Bids publically solicited, from adequate number of suppliers

Sufficient response time

Specifications and attachments will define items or services to allow bidder to respond

All bids publically opened at prescribed time/place

Reject a bid with sound documented reason

To Use:

When conditions not appropriate for sealed bids

Requirements:

RFP must be publicized and identify all evaluation factors and relative importance

Consider all responses to maximum extent possible

Solicit from adequate # of qualified sources

Written method for conducting technical evaluation of proposal and selection

Separate price and technical proposals

Must meet:

*Item available from only single source

*Emergency

*Federal awarding agency authorizes noncompetitive proposals in response to written request from non-Federal entity;

*After solicitation from number of sources, competition determined inadequate

Awarding

Person offering best price; Distribute purchases among qualified suppliers, to extent possible

Responsible and responsive person offering the best price.

Lowest price, responsible bidder who conforms with all material terms and conditions

 

Responsible firm whose proposal is most advantageous to program, with price and other factors considered

 

Cost or price analysis and/or profit negotiation

Not required

Not required

Required

Starting point, independent estimates before receiving bids/proposals

Must negotiate profit as separate element of the price if in excess of $150,000

Required

Starting point, independent estimates before receiving bids/proposals

Must negotiate profit as separate element of the price if in excess of $150,000

Must negotiate profit as separate element of the price (FAR suggests less than 10%) Gov’t/non-profit cannot keep profit

Advertising Requirements

No

No

Yes

General circulation newspaper, at least 2 weeks before bid/proposal due and post on jurisdiction’s bulletin board or website; If $100,000 or more, advertise once in the Goods and Services Bulletin at least two weeks before bids or proposals are due.

NA

Contract

No written contract required

Written contract required

Written contract; Firm fixed price contract (lump sum or unit price)

Written contract; Fixed price or cost-reimbursement type contract

 

Maximum Contract Term

NA

Three years, unless majority vote authorizes longer

Contract Provisions

NA

All: Equal Employment Opportunity

All: Debarment and Suspensions (EO 12549 and 12689) (require with bid response)

Rights to Inventions Made Under a Contract or Agreement: see if 37 CFR 401.2 (a)

Over $2,000 and construction: Davis-Bacon Act (40 U.S.C. 3141-3148)

$10,000 or more: Termination for cause and for convenience

Over $100,000: Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)

Over $100,000 with employment of mechanics or laborers: Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708)

Over $150,000: Clean Air Act (42 U.S.C. 7401-7671q.) and Federal Water Pollution Control Act (U.S.C. 1251-1387)

Over $150,000: address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

 

¬Under $2,000 in case of acquisitions for construction subject to the Davis Bacon Act