The procurement process for a particular transaction depends on its size. When the expected total dollar value of the service or materials equals or exceeds $10,000, there is generally a formal solicitation requiring at least three written bids. Written or verbal quotes are generally required for competitive bids for purchases over $1,000 and less than $10,000. Purchases up to $1,000 are frequently made by EPE personnel who have Company-authorized procurement (credit) cards.
In a formal solicitation, a request for proposal (RFP) is sent to a minimum of three qualified and approved suppliers, providing that three qualified and approved suppliers for that particular service or material exist. An RFP includes a statement of work (SOW) for needed services. It specifies a time frame for the completion of the necessary work or service. EPE's RFP packages will specify within the terms and conditions the insurance coverages and levels for the solicited work, and on a job-by-job basis, may also require a performance bond.
Suppliers will be allowed to submit bids for alternative products if it appears advantageous to the Company to evaluate such alternates. When a supplier submits an equal or better item for consideration, the supplier should indicate in its bid the brand and model number of the offered product. Such items must be approved by EPE's operating departments before an order may be placed. EPE may request specifications and/or samples from the supplier to assist in the evaluation of the items quoted by the supplier as an alternate bid.
Technical information in the bids or proposals is forwarded for evaluation to authorized personnel in the department that will use the supplier's product or service. When appropriate, the proposed terms and conditions undergo legal review and input. After receiving all necessary evaluations and inputs, the final selection is made and the purchase order (PO) is issued.
Regardless of the size of the transaction, the Company reserves the right to reject any or all bids. All proposals and matters relating to received bids are held in strict confidence.
EPE will let all bidders know to which supplier the purchase was awarded. However, price and terms will not be included in this information.