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<chapter num="14" heading="Auction Bids" title_num="21" subtitle_num="05">
  <regulation prefix="Regulation" num=".01" heading="Auction Bids Authorized.">
    <paragraph num="A.">
      <text>A primary procurement unit may procure supplies and services using the auction bids procurement method.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Whenever the head of a primary procurement unit or designee determines that it is in the best interest of the State for a procurement contract to be based on auction bids, a procurement officer shall seek bids by issuing an invitation for auction bids.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Invitation for Auction Bids.">
    <paragraph num="A.">
      <text>Subject to subsection §B of this regulation, an invitation for auction bids shall include:</text>
      <paragraph num="(1)">
        <text>The specifications of the procurement contract;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Whether the procurement contract will be awarded based on the lowest bid price or the lowest evaluated bid price;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>If the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The small business preference, if designated under COMAR 21.11.01.05;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>The date and time when bidding will commence and the date and time when bidding will end or the event upon which bidding will end;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>The mandatory solicitation requirements set forth in COMAR 21.05.08; and</text>
      </paragraph>
      <paragraph num="(7)">
        <text>A summary of the factors used to determine the expected degree of minority business enterprise participation, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System (NAICS) codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>In the discretion of the procurement officer, the invitation for auction bids may:</text>
      <paragraph num="(1)">
        <text>Include a request for unpriced technical offers or samples;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Direct bidders to submit price bids after the unit evaluates the technical offers or samples and finds they are acceptable under the criteria set forth in the invitation for auction bids; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Inform all bidders who submitted technical offers or samples of the identity of each bidder who submitted an acceptable technical offer or sample.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>A unit shall give public notice of an invitation for auction bids in the same manner as required for an invitation for bids under COMAR 21.05.02.</text>
    </paragraph>
    <paragraph num="D.">
      <text>The period of time between the date of publication of the invitation for auction bids and the date and time when bidding will commence shall be a minimum of 20 days.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Price Bids.">
    <paragraph num="A.">
      <text>A procurement officer shall:</text>
      <paragraph num="(1)">
        <text>Receive bids in public at the time and place designated in the invitation for auction bids; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Record the amount of each bid at the time it is received.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The amount of a price bid shall be available for public inspection from the time it is received.</text>
    </paragraph>
    <paragraph num="C.">
      <text>The identity of the bidder submitting a price bid may not be available for public inspection until bidding has ended.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Price bids may not be received until after the unit has completed evaluation of the technical offers or samples.</text>
    </paragraph>
    <paragraph num="E.">
      <text>A price bid may not be received at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit.</text>
    </paragraph>
    <paragraph num="F.">
      <text>Multiple price bids are permitted in response to an invitation for auction bids. When a bidder submits multiple bids, each bid shall be judged independently and may not revoke previous bids of that bidder.</text>
    </paragraph>
    <paragraph num="G.">
      <text>Except as provided in §H of this regulation, a bid is irrevocable, after receipt, for the period specified in the invitation for auction bids.</text>
    </paragraph>
    <paragraph num="H.">
      <text>A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is:</text>
      <paragraph num="(1)">
        <text>Allowed under regulations applicable to an invitation for bids under COMAR 21.05.02; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Approved in writing by the Office of the Attorney General.</text>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>If there is more than one bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Award.">
    <paragraph num="A.">
      <text>After obtaining any approval required by law or regulation, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that:</text>
      <paragraph num="(1)">
        <text>Is the lowest bid price; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If the invitation for auction bids so provides, is the lowest evaluated bid price.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>If, after bids have been received, a procurement officer determines that only one responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that one bidder under the procedures for sole source procurement in COMAR 21.05.05.</text>
    </paragraph>
    <paragraph num="C.">
      <text>After bids have been received, a procurement officer may award a procurement contract on the basis of revised bids if:</text>
      <paragraph num="(1)">
        <text>All bids are rejected under COMAR 21.06.02;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>All bid prices exceed the funds available for the procurement; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>With the approval of the head of a primary procurement unit or a designee, the procurement officer determines that all bids are unreasonable as to at least one requirement and the delay that would result from issuing a new invitation for auction bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Invitation for Revised Auction Bids.">
    <paragraph num="A.">
      <text>If one of the conditions set forth under Regulation .04C of this chapter exists, as promptly as possible, the procurement officer shall:</text>
      <paragraph num="(1)">
        <text>Issue an invitation for revised auction bids, which shall state whether the award will be made without competitive negotiations; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Require a prompt response to that invitation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>An invitation for revised auction bids is not subject to the notice requirements in Regulation .02C of this chapter.</text>
    </paragraph>
    <paragraph num="C.">
      <text>After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate.</text>
    </paragraph>
    <paragraph num="D.">
      <text>After revised bids have been received and any approvals required by law or regulation have been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that:</text>
      <paragraph num="(1)">
        <text>Is the lowest bid price; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If the invitation for revised bids so provides, is the lowest evaluated bid price.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Publicizing Awards.">
    <text>Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish notice of the award in eMaryland Marketplace.</text>
  </regulation>
  <annotations>
    <annotation type="Authority">State Finance and Procurement Article, §§13-102, 13-111, and 14-303, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: September 18, 2023 (50:18 Md. R. 800)</annotation>
  </annotations>
</chapter>