DEPARTMENT OF DEFENSE US NAVY
REQUEST OF PROPOSAL
1. INSTRUCTIONS TO BIDDERS
The Instructions to Bidders section contains the information required by bidders for preparation of a bid proposal that will be responsive to each of the requirements included in the other sections of the RFP. Certain RFPs provide this information in an Invitation to Bid letter as well as in the Instructions to Bidders. The following sections discuss items commonly included in Instructions to Bidders.
1.1. General Descriiption of Work
The Instructions provide a general descriiption of the work covered by the contract. If the RFP includes detailed Descriiption of Work or Specifications and Drawings sections, these sections are referenced in the general descriiption of the work.
1.2. What Must Be Included with Bid
In order that the bid proposals may be properly evaluated when they are received, all of the information requested in the RFP must be provided by the bidders. Since several sections of the RFP may require that bidders submit specific information, the instructions summarize the specific information that must be submitted with the bids. Much of the specific information that is required from bidders is addressed in the Proposal section. The technical specifications in the RFP may require that bidders submit certain technical data and procedures with their bid proposals. The management requirements in the Special Conditions may specify that bidders submit information such as quality, safety, environmental, and schedule program descriiptions. The commercial requirements can define financial or insurance documents that must be submitted by the bidders.
1.3. Schedule of Bid Period Activities
The Instructions define the date when bids are due. Many RFPs provide the specific time of day that bids must be received. Most companies will not accept bids after the due date/time. If a bidder notifies an owner in advance that it cannot meet the specified bid submittal date, an owner may extend the deadline for all bidders. Continued extensions of the due dates for bid proposals cause confusion among the bidders and hard feelings on the part of the bidders that complete their proposals on time. The Instructions should clearly define the owner’s position on receiving bids after the due date in the RFP. The Instructions also specify the location where bid proposals will be received by an owner along with the due date.
It is helpful to provide the bidders with an estimate of the date when the contract will be awarded. This date should of course be consistent with project schedule requirements. Providing this date in the Instructions gives the bidders an indication of when contract work will begin and establishes the completion date for the project groups responsible for evaluating the bids for the contract.
If there are specific meetings scheduled during the bid preparation period, the dates for these meetings are defined in the Instructions. For example, there may be a pre-bid meeting to explain the RFP and answer bidder questions. The owner may also want to schedule project site visits and meetings with specific bidders to review their technical and management capabilities.
1.4. Location of Work
The Instructions give the location of the project site. Material and equipment contract bidders need this information to determine shipping costs. If shipments must be made to a storage facility not at the project site, the Instructions provide the location of the storage facility. Service contract bidders may need to visit the site to obtain information necessary to complete their bid proposals. The Instructions provide information on how site visits are arranged with an owner. If the project site is in a remote location, the Instructions provide directions on how to get to the site.
1.5. Pre-Bid Meeting
Pre-bid meetings can be held after the RFPs are issued and prior to the bid due date. Pre-bid meetings may be referred to with other titles in RFPs, such as a pre-proposal conference in government RFPs. If an owner intends to have a pre-bid meeting, the Instructions provide the location, date, and time of the meeting. The Instructions may also describe the purpose of the meeting and how answers to questions from bidders will be handled. The answers to the questions from bidders are normally handled in a formal manner since they are a supplement to the information provided in the RFP.
1.6. Owner Contact for Questions
It is important that an owner designate one individual to act as the contact person for questions from bidders during the bid period. This organizational approach assures that questions are handled in a consistent manner and that all bidders receive the same answers to questions. The answers to individual questions from bidders during the bid period that are not responded to at a pre-bid meeting are also important supplemental information to the original RFP. The procurement group representative assigned to a contract is often the designated contact person for an owner. The Instructions specify the name of the person in the owner’s organization that is responsible for responding to bidder questions. The Instructions also specify contact information (telephone number, e-mail address, and physical address) for the contact person. The Instructions define the procedure that will be used for providing answers to all bidders when one bidder asks a question concerning requirements in the RFP.
1.7. Pre-Award Surveys
Certain owners perform pre-award surveys of specific bidders to obtain information on technical and management capabilities. These surveys are performed after the RFP is issued to the bidders and prior to award. The surveys can require detailed presentations from bidders regarding the technical and management approaches that they will take on a contract. The Instructions inform the bidders of the subjects that are covered at these meetings. The surveys are usually conducted at the bidder’s facility since the adequacy of a bidder’s facility is part of the survey. The timing of a pre-award survey is established on an individual bidder basis.
1.8. Sealed Bid Requirements
Many RFPs require that bid proposals be sealed when submitted to an owner. This provides a measure of security that bids have not been altered after they were prepared. The Instructions define the sealed bid requirements. Requirements for addressing the bids to the proper party are defined in the Instructions. If the bids are not required to be sealed, the Instructions address the acceptability of telegraphic and facsimile bid proposals and bid proposal modifications. The Instructions specify the number of copies of bid proposals that are required.
1.9. Basis for Bid Evaluation
There are advantages to defining the basis that an owner will use in evaluating bid proposals. If an owner intends to give significant weight in its bid evaluation to factors such as technical, quality, and schedule control capability as well as quoted prices, the bidders should be aware of this fact.
This gives bidders the opportunity to emphasize the strengths of their technical and management programs. They may propose stronger programs in these areas if they believe that this will improve their chances of contract award. The Instructions should define the basis that an owner will use to evaluate the bidders for contract work.
1.10. Ethical Standards
Many owners include ethical standards that the owner and the supplier or contractors are required to follow in their relationships with one another prior to and after the award of a contract in the Instructions. These standards often come from corporate procurement policies. They include such items as restrictions on gifts and entertainment from suppliers and contractors provided to owner personnel.
1.11. Responsibility for Surety Bonds
If another section of the RFP does not specify the exact requirements for surety bonds for a contract, the Instructions clarify the types of bonds required and the cost responsibility for providing the bonds.
1.12. Proposal Format
If the RFP requires that bidders prepare detailed proposals describing how they will accomplish contract work activities, the Instructions define the format required for the proposals. Limits may be placed on the length of different sections in the proposal to assure that no overly lengthy proposals are received from bidders.
1.13. List of Bidders
Many RFPs include in the Instructions section a list of the companies that have been asked to bid on the contract. This approach has the advantage of making the bidders aware that they are involved in a competitive bidding process.
Note: Sample A includes a form that can be used for a detailed list of bidders.
1.14. Letter of Acknowledgment
It is important that procurement groups receive feedback as early as possible from companies that receive RFPs regarding their intent to bid the work. If one or more companies on the list of bidders for a contract decline to bid, there may be insufficient bidders to satisfy competitive bidding requirements. It may be necessary to send RFPs to additional bidders to obtain the desired number of bid proposals. To obtain this feedback in a timely manner, the Instructions often include a Letter of Acknowledgment that requires bidders to state whether or not they intend to submit bid proposals.
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