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Questions and Answers for School Superintendents
What is the difference between the Lowest Bid and the Lowest Responsible Bid, or Lowest and Best Bid?
We all want to be responsible. We pay taxes so our state grows and prospers. In fact, 50-60% of your school’s budget comes from state tax dollars. Choosing to keep the tax dollars that run your school in your local community is responsible. Choosing to hire a local company instead of an out-of-state company is responsible. Choosing to support your local economy, and not another state’s economy, is responsible.
Isn’t accepting the lowest bid best for my overall budget, even if it means hiring an out-of-state company?
No. Dollars spent with local companies are MULTIPLIED BY THREE. This creates more sales and income tax revenue for your local and state governments. Dollars spent with out-of-state companies generate ZERO sales and income tax for the state and local governments. Oklahoma tax dollars come back to you to fund your school’s budget.
How do you define an in-state company versus an out-of-state company?
In-state Company
• Oklahoma owned
• Headquartered in Oklahoma
• Physical presence, main operations, warehouse
• Employs local employees
Out-of-state Company
• Non-Oklahoma owned
• Headquartered outside Oklahoma
Does it really make a difference to hire a local company?
Absolutely! Remember, money SPENT out-of-state, STAYS out-of-state. By hiring local companies for your construction project, you are contributing to the community that pays the taxes to support your school. This includes tax payers such as your employees, your volunteers, and the parents of your students.
I thought I was legally required to accept the lowest bid?
No. You have a choice, according to Oklahoma Statutes Title 74, §85.2 and §85.7, and Title 61, §103 and §117. We have included the detail of these sections in this packet.
Do I have to do anything extra to accept the lowest “responsible” bid?
Yes. However, the steps are very simple. We have supplied a sample letter you can use when accepting the lowest responsible bid for your Kitchen Project. Click on the link below for a PDF document you can customize and print on your letterhead.
For more information regarding the lowest responsible bid, lowest and best bid, or the following Oklahoma Statutes Title 61 or 74, please contact Jay Gulick, Curtis Restaurant Supply owner at (918) 622-7390.
Oklahoma Statutes Title 61
Public Building and Public Works
§ 103. Competitive Bidding Required
A. Unless otherwise provided by law, all public construction contracts exceeding Fifty Thousand Dollars ($50,000.00) shall be let and awarded to the lowest responsible bidder, by open competitive bidding after solicitation for sealed bids, in accordance with the provisions of the Public Competitive Bidding Act of 1974. No work shall be commenced until a written contract is executed and all required bonds and insurance have been provided by the contractor to the awarding public agency.
§ 117. Award to Other Than Lowest Bidder
If an award is made to other than the lowest bidder, the awarding public agency shall accompany its action with a publicized statement setting forth the reason for its action. Such statement shall be placed on file, open to public inspection and be a matter of public record.
Oklahoma Statutes Title 74
The Central Purchasing Act
§85.2 Definitions
2. “Best value criteria” means evaluation criteria which may include, but is not limited to, the following:
a. the acquisition’s operational cost a state agency would incur,
b. the quality of the acquisition, or its technical competency,
c. the reliability of the bidder’s delivery and implementation schedules,
d. the acquisition’s facilitation of data transfer and systems integration,
e. the acquisition’s warranties and guarantees and the bidder’s return policy,
f. the bidder’s financial stability,
g. the acquisition’s adherence to the state agency’s planning documents and announced strategic program direction,
h. the bidder’s industry and program experience and record of successful past performance with acquisitions of similar scope and complexity,
i. the anticipated acceptance by user groups, and
j. the acquisition’s use of proven development methodology, and innovative use of current technologies that lead to quality results;
19. “Lowest and best” means an acquisition based on criteria which include, but are not limited to, the following:
a. the lowest total purchase price,
b. the quality and reliability of the product, and
c. the consistency of the proposed acquisition with the state agency’s planning documents and announced strategic program direction;
§85.7 Competitive Bid or Proposal Procedures
B. Acquisitions shall be awarded to the lowest and best, or best value, bidder at a specified time and place, which shall be open to the public.