Chapter
4
LOCATING SERVICE PROVIDERS
Locating sufficient numbers of potential service
providers to ensure competition is both rewarding and essential to success.
4.1 SOURCES
You should first consider
whether there are alternative providers available and, if so, whether you are
required to use an alternative provider. For example, does another state agency
provide the services you are seeking? Are you required by law or executive
order to use the services of another state agency or service provider? Could
you utilize the services of a targeted small business?
Service providers may be located using many
sources
• • Responses to notice of procurement posted on the State’s or the Agency’s
website
• • Responses to a published legal notice
• • Internet, e.g., Department of Administrative Services website: http://das.iowa.gov
• • Agency service provider listings
• • Trade journals and periodicals
• • TSB websites: https://dia.iowa.gov/tsb
http://www.iowalifechanging.com/business/tsb/tsbbadsearchpass.htm
http://www.iowalifechanging.com/business/tsb/tsb.htm
• • Professional societies and associations
• • Telephone book
4.2 ADVERTISING AND NOTICE
A new law passed during the
2002 legislative session requires executive branch agencies, the general
assembly, and the judicial branch to advertise any request for bids and
proposals on the official state Internet site operated by the Information
Technology Department. An electronic link to the agency’s website is acceptable
if the agency’s website contains the request for bids or proposals. See
HF 2536.
In addition, agencies may
wish to publish a notice of the procurement in a newspaper or other publication.
Publishing informs the public that you are purchasing something and maintains
the integrity of the competitive process. You may put advertisements about a procurement in regular newspaper, but you may also want to
place it in the media appropriate to the type of procurement, such as trade
journals. The timing of the publication of the notice,
the number of newspapers (if any) and duration of the advertisement will depend
on the cost and complexity of the procurement, time frame of the project, and
availability of qualified service providers. As a rule of thumb, agencies are
generally more likely to advertise notices in a newspaper when procurements
involve higher costs, are highly complex, or have large numbers of potential
service providers. If you are using federal money to help pay for the services,
there may also be federal requirements addressing advertising. Absent any
specific requirement for newspaper advertising that is applicable to your
procurement, whether to advertise in a newspaper varies depending
on each individual procurement. Some very high cost and highly complex
procurements may not warrant advertising notice if you know who all of
the potential service providers are and can send each potential provider notice
of the Request for Proposal (RFP) directly. The bottom line is to figure out
how to get the word about the procurement out to as many potential service
providers as possible so that you will have a good field of proposals from
which to choose. If advertising in newspapers will not further that goal and
there are no applicable legal requirements for advertising, you may not want to
spend the money on an advertisement. The notice should include a brief
description of the procurement, the date on which the solicitation information
will be available, how to obtain the information and the contact person’s name
and number. A Sample Notice to Bidders is found at Appendix M.
4.3 NUMBER OF SERVICE
PROVIDERS TO SOLICIT
Proposals should be solicited
from a reasonable number of service providers. A "reasonable" number
is a judgment call determined by the characteristics of the procurement, i.e.
complexity, cost, number of available qualified service providers. Enough
service providers should be solicited to assure fair and open competition and increase
the likelihood of receiving a number of responsive proposals. Often less than
half of the firms that receive a solicitation document actually respond, so it
is advisable to distribute solicitations broadly.
If you are permitted to use
an informal competitive process under 11 IAC chapter
106, you should contact at least three firms. If you cannot locate at least
three providers, you must document the steps you took to identify at least
three providers and maintain the documentation in the contract file. See
Chapter 5 – Purchasing Methods – for more information on informal competitive
processes.
4.4 TARGETED SMALL BUSINESS
(TSB)
The "Iowa Targeted Small
Business Act" is codified at Iowa Code sections 73.15 through 73.21. You should
familiarize yourself with the provisions of this Act, but some of the
highlights of the Act are discussed here. Iowa Code subsection 73.16(1) says
"Every agency, department, commission, board, committee, officer or other
governing body of the state shall purchase goods and services supplied by small
business and targeted small businesses in
In order to assure that
targeted small businesses are given an opportunity to participate in your
solicitations, you can utilize the following processes:
•
You can find targeted small businesses to send solicitations to by searching an
on-line database of all Targeted Small Businesses certified to operate in the
State of
•
Iowa Code section 73.16(2) also requires agencies to issue electronic bid
notices for distribution to the targeted small business web page at least 48
hours before issuing the bid notice. This requirement requires you to post all
your solicitations on the State of
•
This website is password protected and the password changes every month. The
password can be obtained by contacting Department of Administrative
Services, General Services Enterprise – Purchasing at 515-281-6355. The agency
must post the following information on the website at least 48 hours prior to
the release of your solicitations: procurement reference number, description of
the procurement opportunity, ending date to accept bids, agency with the
procurement opportunity, county where the procurement opportunity will be
available, contact for the procurement, phone number of contact, e-mail address
of contact, and URL of web page that procurement can be found. You should note
that it is not helpful to post notice of your solicitation to the TSB website
at 4:30 on a Friday. In that situation, TSB’s do not have a reasonable opportunity
to see and respond to the notice.
Appendix
M: http://das.gse.iowa.gov/procurement/AppM_NoticetoBidders.html