Chapter 14 - Selecting the IT Procurement Method

14.1 Competitive procurement methods

Fair and open competition is the core concept behind the Virginia Public Procurement Act, 2.2-4300(C). Choosing the correct procurement method enables the procuring agency to achieve maximum fair and open competition. The procurement methods available that utilize competition are quick quotes, competitive sealed bidding, competitive negotiation and auctions. The dollar amount, overall complexity and level of risk associated with the IT procurement are factors to consider in choosing the appropriate competitive procurement method. The procurement lead/sourcing specialist or procurement project team (see manual Chapter 13, Procurement Project Team, for more information, Chapter 13 should define the business need and select which procurement method would be most appropriate for the type of IT product, solution or service desired. An overview of when to use the respective competitive procurement methods is outlined in the following table. Remember that a VITA statewide contract shall be used first, if available, for any procurement method listed in this table (See section 14.0).

Method	When to use	Where to learn more
Quick quotes	Total procurement value ranges from $10,000- 100,000 Any IT purchases expected to exceed $10,000 in total value require posting a public notice on eVA. Contact VITA at scminfo@vita.virginia.gov for software licenses not available on a statewide contract Quick quotes up to $10,000 will be set aside for micro businesses, with a minimum of one quote, if available (refer to VITA Policy for Small, Women and Minority Businesses for additional guidelines) Quick quotes from $10,000 to $100,000 will be set aside for DBSBD-certified small businesses, with a minimum of four quotes, if available (refer to VITA Policy for Small, Women and Minority Businesses for additional guidelines)	eVA, Chapter 7
Competitive sealed bidding: Invitation For Bid (IFB)	Total value of the IT Procurement is between $200,000-$250,000 Total value of the IT procurement is greater than $250,000. Needs and requirements are clearly defined Price is the determining factor Terms and conditions are not complex and are not negotiable Procurements over $250,000 must be conducted by VITA unless delegated to agency by VITA	Chapter 22
Competitive sealed bidding: IFB or two-step IFBs	Must have clearly defined requirements with an established threshold for pass/fail Technical and pricing proposals are evaluated separately Invite and evaluate technical offers to determine their acceptability to fulfill the requirements Allows for discussions to clarify the technical offer and requirements Negotiations are not allowed Procurements between $200,000-$250,000 must be competed Procurements over $250,000 must be conducted by VITA unless delegated to agency by VITA	Chapter 23
Competitive negotiation: RFP	Total value of the IT procurement is greater than $200,000 Procurements over $250,000 must be conducted by VITA unless delegated to agency by VITA Needs and requirements are complex and/or are not clearly defined; seeking a solution Price is not the sole determining factor Terms and conditions are complex and will likely require negotiation	Chapter 24
Public and online auctions	Does not apply to software Contact VITA at scminfo@vita.virginia.gov if interested in procuring IT through an auction including on-line public auctions Must have CIO approval in advance	Chapter 19
Reverse auctions	Commercial commodity buys with well-defined specifications and universally accepted standards Products with a well-qualified and established base of suppliers Aggregate small buys for multiple users Must have CIO approval in advance	Chapter 19

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