Bidding Frequently Asked Questions (FAQs) for AARA/WAP

1. Why use NWC/Bid Express as Bid Managers?

NWC/Bid Express are specialists in compliant procurement, providing guidelines on Preparing Engineer's Estimates, Bid Reviews and Evaluation. NWC provides simplification and standardization the bidding process.

2. Why is Internet bidding better than paper only?

Paper-only bidding is not efficient and results in fewer bidders. The result of fewer bidders is not receiving the best competitive pricing.  Internet bidding facilitates both procedural and mathematical error checking to reduce or eliminate common bid errors.

3. Does NWC/Bid Express support paper bidding?

Yes, paper bids are accepted with electronic bids. Upon the bid opening data from the paper bids is entered into the database.  Both paper and electronic bids are included in the automatic bid analytics.

4. How much does it cost for NWC Bid Management Services?

$ 350.00 per bid, with custom services priced separately. (Pricing subject to change without notice)

5. Does NWC provide bid guidelines for ARRA/WAP?

Yes, visit ARRA/WAP Bidding Guidelines.

6. What about all the affidavits and other required paperwork?

NWC/Bid Express standardizes the required paperwork and creates both paper and electronic documents.

7. How are secure signatures processed?

Digital Electronic signatures are applied to all documents.

8. Why does NWC suggest contractors not bid on large groups of multiple dwellings, like groups of 25 or more?

Bulk bidding limits the number of bidders. Agencies do not advance funds to contractors and many small business operators can't afford to bid on large projects because of limited capital and delayed payments of 30 days or more.

9. Should contractors be required to inspect all dwellings before bidding?

No, because it is not in the best interest of the client to have many prospective bidders inspecting all the dwellings. When a legal notice is published, it is normally only 10 business days before bid opening, therefore it is not practical to make arrangements. Additionally, the agencies are seeking solicitations for un-related dwellings, so touring a subset of dwelling provides no basis for other dwellings.

10. If NWC does not suggest an inspection of all dwelling before bidding, how can a realistic bid be achieved?

NWC recommends that a comprehensive line item "Price-Sheet" of the most common used weatherization measures be used.

11. Does NWC provided the line item price-sheet, and can it be customized to meet agencies' requirements?

Yes, detailed price-sheets are provided and can be customized for each agency and/or solicitation.

12. How is the line item price-sheet developed?

The price-sheet is developed based upon historical experience of within the weatherization community. At this time NWC has over 200 line items for weatherization job tasks.

13. What are the benefits to the subgrantee for using engineer's estimates?

Engineer's estimates provide guidance to the contractors. The critical review of any bid depends on the reliability of the estimate it is being compared to therefore NWC devotes sufficient attention to the preparation of estimates using the same level of detail as the contracting industry. Engineer's estimates reflect the amount the contracting agency considers fair and reasonable and is willing to pay for performance of the contemplated work.

14. What are "Engineer's Estimates" and how are they developed?

NWC works directly with the agency using a collaborative approach in creating engineer's estimates. This approach combines the use of historic bid data with actual cost data. A Historic Data Approach uses historic data from recently awarded contracts as a cost-effective method to for developing the engineer's estimate. Most projects contain a small number of items that together comprise a significant portion (e.g. 70-80 percent) of the total cost. An Actual Cost Approach takes into consideration factors related to actual performance of the work (i.e. the current cost of labor, equipment, and materials; sequence of operations; production rates; and a reasonable value of overhead and profit).

15. Does NWC suggest that Engineer's Estimate be used in the bid proposal?

Yes, the engineer's estimates are provided only as guidelines for the contractors. The benefits of making them public include minimizing the possibility of bidders misunderstanding the requirements.

16. What are Unbalanced Bids?

In discussing unbalanced bids, it is best to define two terms: mathematically unbalanced and materially unbalanced. An unbalanced bid may be only mathematically unbalanced or the bid may be mathematically and materially unbalanced. A mathematically unbalanced bid is one containing sum or unit bid items which do not reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs, which he/she anticipates for the performance of the items in question.

17. What is materially unbalanced?

The main concern of the contracting agency should be to assure itself that the bids have not been materially unbalanced in order to take advantage of the open competitive process. When one or more contractors submit unbalanced bids, it is likely they could become the mathematically lowest bidders.

18. How can an agency avoid the problem of unbalanced bids?

Agencies can avoid the problems of unbalanced bids by inserting into their contract specifications a specific clause prohibiting unbalanced bidding. Bids subsequently shown to be mathematically unbalanced would be rejected as nonresponsive. It is important that such a clause contain clear and explicit language as courts have noted that "contractors are entitled to know how their bids will be evaluated; they cannot effectively compete when the standards for judgment exist only in the contracting officer's head," North Virginia Van Company v. U.S., 3 C1. Ct. 237 (1983)

19. Why should agencies have Multiple Bid Awards?

Weatherization is different than many large construction bids because the production is not for a single project. Agencies have hundreds of dwellings, not one single project. Therefore it is in the best interest of the public to have multiple bid awards to contractors. The number of contractors to be awarded contractors is determined based on the production requirement based on the time required for completion of the units.

20. What is the suggested mathematical method for awarding Multiple Bid Awards?

The suggested method of awarding multiple awards, is using the lowest bids, and selecting a number of contractors that will meet the production goals. One way is to use the average of each line item to determine the average price. Then offer all the selected bidders that price. This method is like a “Dutch Auction” or “Sealed first-price auction”, also known as a first-price sealed-bid auction (FPSB). In this type of bid all bidders simultaneously submit sealed bids so that no bidder knows the bid of any other participant.