Questions or Comments
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PROCUREMENT POLICY OFFICE
Solicitation for Procurement
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Procurement Policy Office clarifies the form of Solicitation for Procurement to comply with 5 G.C.A. Chapter 5, Guam Procurement Law and Guam Administrative Rules & Regulations, Title 2, Division 4, Procurement Regulations (as of October 2024).
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WHEREAS 5 G.C.A. §5120 mandates the centralization of procurement of supplies, services, and construction in the Procurement Policy Office, the Chief Procurement Officer, and the Director of Public Works.
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WHEREAS certain exceptions are provided by Guam law to the general authority set forth above.
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WHEREAS agencies and entities require guidance as to the more effective form of solicitation.
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The Procurement Policy Office issues the following guidance
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1. Invitation for Bid (IFB)
An Invitation for Bid (IFB) is a sealed bidding process used when an agency clearly understands its product or project needs. Therefore, IFB evaluations are heavily determined by pricing. An IFB does value and considers vendors’ experience, but an agency using an IFB should have a clear description of project scope, requirements, and bidder qualifications. Competitive Sealed Bidding is the preferred method for the procurement of supplies, services, or construction [2 GAR §3109(b)].
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2. Request for Proposal (RFP)
A Request for Proposal (RFP) is a wider process designed to solicit and elicit methods, qualifications, processes, and expected deliverables from bidders. This two-step process requires the receipt of proposals from interested parties and a subsequent price negotiation with the bidder, scoring the highest on the first step to determine the winning bidder.
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3. Process
Both procurement methods should be initiated with a requisition so that funds may be identified and reserved (pre-encumbered). Without this step, it is challenging to control budgeted expenditures as obligations and potential obligations are not identified until an obligation (purchase order or contract) is finally completed. Funding sources should be identified at this stage.
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Enabling Act
§5101 Chapter 5 of Title 5 GCA
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Creation and Membership of the
Procurement Policy Office.
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(a) Policy Office Created. There is created in the Office of the Governor the Procurement Policy Office which in this Chapter is referred to as the Policy Office.
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(b) Membership of the Policy Office. The Policy Office shall consist of three (3) officers or employees of the government of Guam appointed by the Governor, the Director of Public Works and the Director of Administration, who shall serve as the chairperson. None of the three members appointed by the Governor shall act concurrently as Procurement Officer nor shall any of such members subordinates, unless such members are directors of agencies or instrumentalities, act as Procurement Officer.
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(c) Administrative Support. The Governor’s Office shall provide such services as the Policy Office may request, including office space and administrative assistance.