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Sub -Recipients shall publicly advertise the ITB. The precise manner of advertising depends upon the facts and circumstances of the procurement, subject to any applicable state, local, and/or tribal requirements. Sub -Recipients shall solicit bids from an adequate number of known suppliers. The regulation does not provide specific guidance regarding the method for soliciting additional bids or what constitutes an adequate number of qualified sources. These determinations shall be dependent upon the facts and circumstances of the procurement, subject to any relevant state, local, and/or federal requirements. The general requirements for an ITB are as follows: • The ITB shall define the items or services including any specifications and pertinent attachments so potential bidders can properly respond. • The subrecipient shall provide potential bidders sufficient time to prepare and submit bids prior to the date set for bid opening. • All bids shall be opened at the date, time, and location established in the ITB. • After the official bid opening procedures are completed, the subrecipient shall award a contract to the lowest price bid provided by a responsive and responsible bidder. If specified in the bidding documents, the subrecipient may consider discounts, transportation costs, and life cycle costs to determine which bid is the lowest. If using the Sealed Bidding method of procurement, the subrecipient shall document the procurement history. Examples of circumstances under which a subrecipient may reject an individual bid include but are not limited to: • The bid fails to conform to the essential requirements or applicable specifications as outlined in the ITB; • The bid fails to conform to the delivery schedule as outlined in the ITB; • The bid imposes conditions that would modify the requirements as outlined in the ITB; • The Sub -Recipient determines that the bid price is unreasonable; • The bid is submitted by a suspended or debarred vendor; and/or • A bidder fails to furnish a bid guarantee when such a guarantee is required. The contract should then be awarded to the responsible and responsive vendor who submits the lowest responsive bid. The Subrecipient shall also provide a justification letter to the Division supporting their selection. Request for Proposal: Under this procurement method, the solicitation document used is also known as the RFP. Proposals are an acceptable method of procurement when the nature of the procurement does not lend itself to sealed bidding and when a cost -reimbursement contract is appropriate. Through this process, vendors can compete on a cost basis for like items or services. The request for proposals method of procurement is an acceptable method of procurement, where non -state entities cannot base the contract award exclusively on price or price -related factors due to the nature of the service or property to be acquired. Simply put, the Sub -Recipient can describe what it wants to accomplish but the methods or means to accomplish the desired outcome cannot be easily defined. An RFP is appropriate when the following conditions are present: • The Sub -Recipient cannot base the contract award exclusively on price or price - related factors due to the nature or the service or property to be acquired; • The requirements are less definitive, more development work is required, or there is a greater risk of performance; • Technical capability, past performance, and prior experience considerations play a dominant role in source selection; and/or 51