Section 550.330  Formal Advertising – Procurement Method

a)         The requirements in Sections 550.330 through 550.332 apply to all formally advertised contracts in excess of $10,000.  Any procurement transaction which may exceed $5,000 shall comply with the requirements of Subpart B.  Formal advertising means the public solicitation of sealed bids and agreement award based on a fixed price (lump sum, unit price, or a combination of the two) to the lowest, responsive, responsible bidder.

b)         Formal advertising requires at a minimum:

1)         A complete, adequate, and realistic specification or purchase description of what is required;

2)         Two or more responsible bidders which are willing and able to complete effectively for the Agency business;

3)         A procurement that lends itself to the award of a fixed-price contract; and

4)         The selection of the successful bidder made principally on the basis of price.