a. Deductive Multiple Base Bid Format Format A
b. Additive Multiple Base Bid Format Format B
c. Matrix Multiple Base Bid Format Format C
• The preferred Multiple Base Bid Format HAS BEEN the Deductive Base Bid Format. This format starts with a Base Bid No. 1 that includes the full Scope of Work that the University wants to construct for the Allocation. Deducts are then provided in successive Base Bids, deducting items by priority, resulting in the minimum project that the University wants to receive.
This manual includes the Additive and Matrix Forms to not prohibit the University from using such forms when they are necessary and responsibly used.
There is opinion that the Additive Form may provide the University with better value. Therefore, the University should consider the use of such form.
• There may be cases where the University may need to use Unit Price Items and/or Alternate Price Items with the Multiple Base Bid Format. The complexity of the format should always be a consideration. A format with too many options is not recommended. A format should be logical, easy to follow, and easy to edit.
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4. SELECTION OF BID FORMAT
The System currently has no strict criteria for the use of a One Price Bid Format or a Multiple Base Bid Format. Within the concepts discussed below, the selection of a suitable Bid Format is left to the judgment of the University. Also, the University should be mindful of the provisions of the Design Professional’s Agreement with the System regarding Redesign Requirements Upon Receipt of Bids (see next page). The following concepts should be adhered to:
a. Selection of Base Bid Format - One Price or Multiple Base Bid Format
One Price Bid Format. Certain projects, by their nature, are limited to the use of the One Price Bid Format. The project may be such that there are no components of sufficient size that could be deducted or added to the project in order to use the Additive or Deductive Base Bid Format.
Multiple Base Bid Format. The Multiple Base Bid Format, whether additive, deductive, or matrix, is used to assure that some level of the project will be awarded within the Allocation.
Additive and Deductive Base Bid Formats are generally used regardless of the Preliminary Construction Estimate and the Allocation. However, if the Allocation is exceeded to a maximum of 10%, a Deductive Base Bid Format should be used.
b. Allocation and Scope of Work (Preliminary Design Phase)
Preliminary Construction Estimate vs. Allocation. Generally, for a well-defined design, the Design Professional’s Preliminary Construction Estimate is expected to be within 5% to 10% of the Allocation.
• For a project that is well defined and can be reasonably estimated, if the Preliminary Construction Estimate exceeds the Allocation by more than 10%, the University will not use the Deductive Base Bid Format in the HOPE of attaining the entire scope of work for Base Bid Number 1.
• A project may have components that are less than well defined and cannot be reasonably estimated, whether due to components that are less definable or uncertain market conditions in the construction industry. In that case, if the Preliminary Construction Estimate exceeds the Allocation by 10% to 15%, the University may use judgment and use the Deductive Base Bid Format.
c. Allocation and Scope of Work (Final Design Phase & Bid Phase)
Final Construction Estimate vs. Allocation. The Final Construction Estimate should not exceed the Allocation for Base Bid No. 1, whether for a One Price Bid Format, Deductive Base Bid Format, or Additive Base Bid Format. However, the University may use judgment when the Final Construction Estimate exceeds the Allocation by as much as 10%. This judgment should be exercised with great care, considering the size of the project (the dollar amount of the excess), market conditions, and the ability of the University to obtain additional funds.
Issued April 2003
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d. Redesign Requirements Upon Receipt of Bids
Refer to the Standard Form of Agreement for Professional Services, Article 2 for requirements as to when the Professional is or not paid for redesign when the allocation is exceeded.
UNDER CONSTRUCTION
(Further discussion will be provided here in a future revision to this EA manual.
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e. Announcement of Allocation At The Bid Opening
For certain Multiple Base Bid Formats, the announcement of the Allocation at the Bid Opening, prior to actually opening the bids, is a control to help avoid the appearance of bid shopping.
The possibility of giving the appearance of bid shopping exists when the Allocation is not announced at the Bid Opening. The System strives to award all projects in accordance with governing regulations. However, in cases where the University has followed all mandated regulations, there should be the option to add funds to a project when the University’s interests are jeopardized.
If the Allocation is announced at the Bid Opening, then the Base Bid that most closely fits the Allocation should be awarded, unless the University’s interests are jeopardized. Otherwise, the project may need to be rebid with the same or a revised scope of work.
If the Allocation is not announced at the Bid Opening and additional funds are added to the Allocation to obtain a larger scope of work, the University could be viewed as bid shopping if the project is awarded to a Contractor other than the one that would have been awarded the project that fits the Announced Allocation.
The following chart provides criteria regarding the Allocation Announcement and obtaining additional fund for the various Base Bid Formats.