Competitive Bidding for Small Works Contracts
This page describes the process for public agencies in Washington State to conduct competitive bidding for small works roster contracts under $350,000.
It is part of MRSC's Small Works Roster Manual, which places an emphasis on the use of the statewide small works roster administered by MRSC Rosters.
Small Works Roster Checklist: Also see MRSC's Small Works Roster Checklist, which provides a two-page overview of the small works roster process – including preparing your project, competitive bids, direct contracting, and post-award.
Overview
For all small works contracts with an estimated cost between $150,000 and $350,000, excluding sales tax, that are awarded using a small works roster process, public agencies must follow the competitive bidding process established by RCW 39.04.152(4)(a) and described on this page.
This competitive bidding process may also (optionally) be used for small works contracts with an estimated cost of less than $150,000, not including sales tax, or public agencies may use a direct contracting process instead.
When using the competitive bid process, you must send an Invitation to Bid to the entire List of Businesses (“project-specific roster” or “applicable roster”) generated for your project. You will then evaluate the bids received, select the lowest responsive bid submitted by a responsible bidder, and proceed to contract award and execution.
Federal funding: If your small works project uses any federal funding, more stringent requirements will apply. For more information, see our page Planning a Small Works Roster Project.
Starting Your Project in MRSC Rosters
Start by opening MRSC Rosters (mrscrosters.org) in your web browser and logging in. If you are not a member, you will need to register. If you are unsure if you or another person from your agency has an account, please contact MRSC Rosters.
After logging in, select “small works” and enter the project name and information. The statewide small works roster will then generate a Project ID and prompt you to move to the next step in the process.
Practice Tip: The project name should be simple yet informative and should be consistent across all agency documents and records – for instance, “City of Bellingham Big Rock Garden Pavilion Renovation [insert year].”
Once you select a project type and primary work category, the MRSC Rosters system will generate a “list of businesses.” This list of businesses is the “project-specific,” “appropriate,” or “applicable” roster that you will use to solicit bids. The list will be organized alphabetically with certified firms listed first.
The platform will save the project-specific roster for each project, but we also recommend you save a copy for your procurement files.
Invitation to Bid
Using the email addresses from the roster registration, you will send each contractor on the List of Businesses (“project-specific roster” or “applicable roster”) an electronic Invitation to Bid. Only contractors accepted to a small works roster before a project-specific roster is generated can be invited to bid and be awarded a small works contract.
This part of the procurement process is done outside the MRSC Rosters system in accordance with local policies and procedures – either emailed directly, or sent through a third-party procurement application (Bonfire, Procureware, PublicPurchase, etc.).
If you are using a third-party procurement application, this process (sending invitations to a specific list of businesses rather than a public advertisement) may be known by different terms such as “private solicitation,” “direct invitation,” “by invitation only,” etc.
Practice Tip: Remember to have contractors register both at MRSC Rosters and any other third-party procurement application.
The Invitation to Bid should contain the following information; items with an asterisk (*) are required by RCW 39.04.152(3):
- Project name and number (consistent with agency accounting/contracting and/or platform identification)
- The scope of work* including:
- Existing conditions (as applicable)
- Materials and equipment that will be provided by the public agency* or that the public agency requires
- Current understanding of permitting requirements and authorities having jurisdiction
- The estimated cost*
- Project schedule and deadlines for completing the project
- Information on a site walk and/or pre-bid conference if offered
- Bid due date and time
- Bid form
- Instructions to Bidders, including mandatory bidder responsibility criteria and any supplemental bidder responsibility criteria (RCW 39.04.350)
- Where and how to submit bids
- How questions can be submitted and how addendums, if necessary, will be provided and communicated
- General agency contact information
- Sample contract (contract form) that will be awarded, including:
- General conditions
- Agency required forms
- Insurance requirements (could be included in instructions to bidders)
- Bonding requirements (could be included in instructions to bidders)
- Retainage approach (could be included in instructions to bidders)
- Payment procedures
- Any other contract or project requirements
DES Public Agency Templates: The state Department of Enterprise Services (DES) has prepared sample small works roster bidding templates for public agencies under RCW 39.04.152(4), including a bid form and contract for contracts of $150,000 to $350,000 as well as direct contracting documents for contracts below $150,000. Local governments may (optionally) use these templates but must review and change them to meet their own requirements and business processes.
See the DES webpage Forms/Reference Documents: Public Works Bidding (scroll down to the section that says "Small works roster/Bidding templates for public agencies."
Practice Tip: Since the statewide small works roster will only require general state licensing at application/registration on the roster, each agency may need to use supplemental bidder responsibility criteria to inform bidders of award criteria (RCW 39.04.350) and any agency-specific requirements such as an agency business license, access/badging requirements, etc.
When preparing bidding documents it is a good practice to “reserve your right” as an agency or local government to request additional information and other similar owner discretionary measures to ensure the best price, a complete bid, and responsibility of the contractor.
Evaluating Bids
At the designated bid due date and time, you will save and record each bid received in your procurement file and begin the evaluation process.
As with any public works procurement, you must:
- Evaluate each bid for responsiveness. You will need to confirm that all aspects of each bid form are filled in, signatures (electronic or other) are attached, and that you can ascertain the bid amount.
- Confirm that the bidder meets the mandatory bidder responsibility criteria in RCW 39.04.350 and any supplemental criteria.
Practice Tip: It is advisable to use a checklist for the bid evaluation process and keep documentation for each bidder indicating the date and how an agency determined bidder responsibility and responsiveness of a bid. It is not uncommon for there to be issues with bidder responsibility or additional information that is needed before award is recommended.
For an example, see MRSC's mandatory bidder responsibility checklist.
Entering Bid/Award Information into MRSC Rosters
After procurement and award is complete (outside the MRSC Rosters platform), the agency or local government will return to the MRSC Rosters system under “Documentation” and manually populate each response to the invitation.
The options for each prospective contractor are:
- No response (default)
- Declined
- Not responsive
- Not responsible
- Bid received
For each bid received, the agency or local government will enter the bid amount. Once the information is entered into the system, it is immediately publicly available in accordance with RCW 39.04.152(6).
Practice Tip: The bid amounts submitted by contractors will include sales tax, which will add roughly 10% to the potential award amount (depending on the local sales tax rate). If the lowest bid exceeds roughly $385,000 ($350,000 plus sales tax), you may need to revisit the project scope/estimate or consider another procurement method.
The DES model rules, which may (optionally) be adopted by local governments, state that the contracting agency may award contracts for more than the maximum limits in RCW 39.04.152 if the contract cost is not "excessive" or does not constitute a "cardinal change." Their general guidance is that exceeding the statutory bid limit by 10% or less will not constitute a cardinal change. See WAC 200-330-040.
If no responsive bids from responsible bidders are received, or if you are otherwise unable to select a contractor or award your project, you may cancel your project and procure through another method or start a new project.
If you cancel a small works project, you should write a memo for your procurement file explaining the rationale and your plan to pursue the project later (starting with a different list of businesses) or using a different public works methodology.
Notice of Award and Contract Execution
You will provide a written Notice of Award to the selected contractor, request insurance and bonding documentation as detailed in the contract, and request contractor signatures on the contract.
Once insurance and bonding documentation are collected and appear satisfactory, and both the agency and the contractor have signed the contract, you will store the executed contract (including the bid) in your procurement files and financial records – often a separate Purchase Order needs to be issued – and send to the contractor a fully executed agreement with a Notice to Proceed letter.
Tracking and Reporting Roster Usage
All state agencies and local governments must make small works roster awards, bids, and use of direct contracting “publicly available” and available by request. See RCW 39.04.152(6). “Publicly available” is commonly interpreted as available without a public records request. Many agencies post a spreadsheet or list of small works project awards on their website.
Once per year, the agency must publish a list of all small works contracts awarded, as well as all contractors contacted for a direct negotiation process (even if the contractor contacted for direct negotiation was not awarded a contract). See RCW 39.04.152(7) and RCW 39.04.200.
For public agencies using the statewide small works roster, MRSC Rosters provides project-specific roster, bidding, award, and direct contracting information continuously on the website as entered by users. This meets the requirements of RCW 39.04.200. Public agencies using the statewide small works roster will not be required to post information separately.
