Michigan
Administrative Fees:
Administrative Fees on State Contracts
Disclaimer:
This information is self-reported by the state via the Survey of State Procurement Practices
Administrative Fees in Use:
Yes
Types of Contracts with Admin. Fees:
Statewide/Enterprise, National Cooperative, Other: See Notes
Amount and Frequency of Fees Collected:
Various depending on contract category level.
Notes:
All contracts other than Single Agency contracts
State authority to conduct best value procurement (BVP)
Best Value Procurement Definition:
Best Value Procurement Definition
Definition of Best Value Procurement:
Yes
Citation:
Michigan Procurement Policy Manual Chapter 5 Section 5.2 Competitive Solicitation Defined
Citation Language:
Competitive solicitation is the formal or informal process of obtaining quotes, bids or proposals from vendors to determine contract award based on factors such as pricing, product cost, supply situation, quality, timeliness, and best value from responsive and responsible vendors. Some of these concepts are defined below: Best value is determined by analyzing the components of the proposal such as price, quality, expertise, schedule, terms and conditions, product cost, supply situation, timeliness, expertise, Michigan economic impact, environmental and sustainability practices, compliance with labor laws, etc. and identifying the vendor who provides the best overall offer to the State
Public Link:
https://www.michigan.gov/documents/micontractconnect/Chapter_5_-_Pre-Solicitation_512068_7.pdf
Westlaw Flags:
No Flag
Statutory, regulatory, and procedural guidance for bid protests
Protest Procedure:
Protest Procedure
Status:
Statutory Guidance
Citation:
Michigan Department of Technology, Management and Budget Website
Comments:
No statute or regulation lays out protest procedure. State Procurement website provides guidance.
Statutory, regulatory, and procedural guidance for bid responsiveness
Bid Responsiveness:
Bid Responsiveness Definition
Citation:
Michigan Procurement Manual Chapter 8. 8.4.2 Step 2 –Determining if a Vendor is Responsive p. 2
Citation Language:
Prior to initiating the evaluation and negotiation process, the Solicitation Manager is responsible for reviewing the vendor proposals to ensure that the proposal is responsive. A “responsive” proposal is one that is submitted in accordance with the solicitation instructions and meets all mandatory minimum requirements identified in the solicitation.If avendor, or an employee of a vendor, participatesin the solicitation preparation process,the vendoris not permitted to receive an award on a contract resulting from that solicitation. 3If necessary, the Solicitation Manager may request assistance from the Subject Matter Experts in determining if a mandatory minimum requirement is met.Any proposal that is not responsive, as determined by the Solicitation Manager, andin consultation with the Procurement Executive,may not move to Step 3.
Definition:
Yes
Statutory, regulatory, and procedural guidance for bidder responsibility
Responsible Bidder Definition:
Responsible Bidder Definition
Definition:
Yes
Citation:
Michigan Procurement Policy Manual Chapter 8.4.3 Step 3 - Determining if a Vendor is Responsible
Citation Language:
The Solicitation Manager must next determine if the vendor submitting a proposal is responsible. A responsible vendor is a vendor that demonstrates it has the ability to successfully perform the duties identified by the solicitation. In determining if a vendor is “responsible” the Solicitation Manager should consider the following, or similar factors: • Documented and investigated Vendor Performance (https://stateofmichigan.sharepoint.com/teams/insidemi/Purchasing/Pages/IssueResolution.aspx) • Vendor debarment, suspension, or disqualification from bidding or contracting with a governmental entity • Vendor involvement in litigation against the State • Vendor default or termination for cause on a government contract, including the state of Michigan within the past five years • Vendor default or termination for cause on a private contract by any private entity in which similar services or products are being provided within the past five years • Vendor’s financial stability • Vendor meets all certification requirements on SIGMA Vendor Self Service (VSS) • Vendor is able to comply with all legal requirements identified in the solicitation • Vendors answers to questions on the Vendor Questions Worksheet • Vendor history on State Contract Monitoring Reports or Contract Compliance Reports Any vendor that is not responsible, as determined by the Solicitation Manager, and in consultation with the Procurement Executive, may not move to Step 4.
Name:
Commodity Code
Commodity Code:
NIGP
Name:
Competitive Thresholds
Formal/Competitive Sealed Bidding:
$50,000
Citation:
Michigan Procurement Policy Manual (MPPM) Ch. 5 - 5.3.4
Citation Language:
Anticipated Value Greater than $50,000 - Request For Proposal/Invitation to Negotiate - Formal Competitive Bidding Required.
Small Purchases/Informal Purchasing:
$5,000; $50,000
Citation 2:
Michigan Procurement Policy Manual (MPPM) Ch. 5 - 5.3.4
Citation Language 2:
Anticipated Value $5,000.01-$50,000 RFQ requires Informal Competitive Bidding (Formal Competitive Bidding is an acceptable alternative); Anticipated Value less than or equal to $5,000 Alternative Competitive Bidding Solicitation (Formal and Informal Competitive Bidding are acceptable alternatives) Due diligence is encouraged.
Statutory, regulatory, and procedural guidance for contract claims before a specialized body
Contract Claims Procedure:
Contract Claims Procedure
Status:
No Official Guidance
Statutory, regulatory, and procedural guidance for contract claim appeals before a specialized body
Administrative Contract Claims Appeals:
Administrative Contract Claims Appeals
Status:
No Official Guidance
eProcurement:
eProcurement
Platform:
Advantage by CGI
System Type:
ERP
The rules concerning the size and composition of evaluation committees for formal solicitations
Eval Committees:
Evaluation Committees
Evaluation Team Requirements:
Evaluations are conducted by the solicitation manager, the program manager, and subject matter experts on the solicitation team; Alternatively, evaluations are performed by a Joint Evaluation Committee
Citation:
MPPM 6.4.1.8 Evaluation Method;
Public Link 1:
https://www.michigan.gov/-/media/Project/Websites/dtmb/Procurement/documents/MPPM/Chapter_6.pdf
Citation Language:
The Solicitation Manager, in collaboration with the Program Manager and Subject Matter Experts, is responsible for identifying the evaluation method the State will use to evaluate proposals. There are two types of “Evaluation Methods”: • Evaluation conducted by the Solicitation Manager in collaboration with the Program Manager and Subject Matter Experts. • Evaluation conducted by Joint Evaluation Committee.
State entity with the statutory authority and oversight for the purchasing of goods and services
Goods and Services Procurement Entity:
Goods and Services Procurement
Entity:
Central Procurement Office
Citation:
Michigan Compiled Laws (MCL) 18.1261
Public Link:
Citation Language:
Sec. 261. (1) The department shall provide for the purchase of, the contracting for, and the providing of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and all other items as needed by state agencies for which the legislature has not otherwise expressly provided. If consistent with federal statutes, in all purchases made by the department, all other things being equal, preference shall be given to products manufactured or services offered by Michigan-based firms or by facilities with respect to which the operator is designated as a clean corporate citizen under part 14 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1401 to 324.1429, or ...
State authority to conduct multistep competitive sealed bidding
Authorization for Multi-Step Competitive Sealed Bidding:
Authorization for Multi-Step Competitive Sealed Bidding
Status:
No Authorization
Name:
Nonprofit Usage of Statewide Contracts
Authorization:
No
Organizational location for the dedicated procurement attorney assigned to assist with and review purchasing and contracts.
Procurement Counsel Location:
Attorney General's Office
Reports To:
Attorney General
Official state procurement website for public
Public Link to Official State Procurement Website:
State Procurement Website
Statutory, regulatory, or procedural guidance for protest appeals before a specialized body
Administrative Protest Appeals:
Administrative Protest Appeals
Status:
No Statutory Guidance
Comments:
Decision must be challenged in court
The required time between the issuance of a formal solicitation and the scheduled opening of bids or proposals
Public Notice:
Public Notice
Formal Solicitation - Minimum Window for Proposals/Bids:
RFPs: 14 Days; Invitations to Negotiate: 7 days; Competitive Proof of Concept: 7 days; Geographically-Disadvantaged Business Enterprise Mandatory Minimum solicitation: 14 days
Citation:
MPPM Chapter 7.2 Posting Requirements
Public Link 1:
https://www.michigan.gov/-/media/Project/Websites/dtmb/Procurement/documents/MPPM/Chapter_7.pdf
Citation Language:
Request for Proposal (RFP). An RFP with an estimated amount greater than $50,000 must be publicly posted on SIGMA for a minimum of 14 calendar days unless an exception is obtained from the Chief Procurement Officer or designee. Invitation to Negotiate (ITN). The ITN document, described in Chapter 6, Section 6.4 Constructing the Solicitation, must be posted on the SIGMA system for a minimum of seven (7) calendar days unless otherwise approved by the Chief Procurement Officer or designee. 2 Competitive Proof of Concept (CPC). The CPC solicitation documents, described in Chapter 6, Section 6.5 Constructing the Solicitation, must be posted on the SIGMA system for a minimum of seven (7) calendar days unless otherwise approved by the Chief Procurement Officer or designee. Geographically-Disadvantaged Business Enterprise (GDBE) Mandatory Minimum. A GDBE Mandatory Minimum solicitation with an estimated amount greater than $50,000 must be publicly posted on SIGMA for a minimum of 14 calendar days unless an exception is obtained from the Chief Procurement Officer or designee.
State authority to conduct reverse auctions
Authorization for Reverse Auction:
Authorization for Reverse Auctions
Status:
No Authorization
Official state procurement manual available to public
Public Link to State Procurement Manuals:
State Procurement Manual
Awarded contracts as provided by each state
Link to State-Wide Contracts:
State-wide contracts
State-Wide Contracts Link:
https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746---,00.html
Information for suppliers as provided by each state
Link to Supplier Registration:
Supplier Registration
Supplier Registration Link:
https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_99885---,00.html
State entity with the statutory authority and oversight for the purchasing of technology
Technology Procurement Entity:
Technology Procurement Entity
Entity:
State Central Procurement Office
Citation:
Michigan Compiled Laws (MCL) 18.1261
Public Link:
Citation Language:
Sec. 261. (1) The department shall provide for the purchase of, the contracting for, and the providing of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and all other items as needed by state agencies for which the legislature has not otherwise expressly provided. If consistent with federal statutes, in all purchases made by the department, all other things being equal, preference shall be given to products manufactured or services offered by Michigan-based firms or by facilities with respect to which the operator is designated as a clean corporate citizen under part 14 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1401 to 324.1429, or to biobased products whose content is sourced in this state. The department shall solicit competitive bids from the private sector whenever practicable to efficiently and effectively meet the state's needs. The department shall first determine that competitive solicitation of bids in the private sector is not appropriate before using any other procurement method for an acquisition. (2) The department shall make all discretionary decisions concerning the solicitation, award, amendment, cancellation, and appeal of state contracts. (3) The department shall utilize competitive solicitation for all purchases authorized under this act unless 1 or more of the following apply: (a) Procurement of goods or services is necessary for the imminent protection of public health or safety or to mitigate an imminent threat to public health or safety, as determined by the director or his or her designated representative. (b) Procurement of goods or services is for emergency repair or construction caused by unforeseen circumstances when the repair or construction is necessary to protect life or property. (c) Procurement of goods or services is in response to a declared state of emergency or state of disaster under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421. (d) Procurement of goods or services is in response to a declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33. (e) Procurement of goods or services is in response to a declared state of energy emergency under 1982 PA 191, MCL 10.81 to 10.89. (f) Procurement of goods or services is within a state agency's purchasing authority delegated under subsection (4), and the state agency has established policies or procedures approved by the department to ensure that goods or services are purchased by the state agency at fair and reasonable prices. (4) The department may delegate its procurement authority to other state agencies within dollar limitations and for designated types of procurements. The department may withdraw delegated authority upon a finding that a state agency did not comply with departmental procurement directives. If a state agency has the department's procurement authority delegated to it under this subsection and if it chooses to exercise an option under an existing procurement contract to continue that procurement contract, before exercising that option, the state agency shall first obtain written approval from the department that exercising the option is in the best interest of this state. (5) The department may enter into lease purchases or installment purchases for periods not exceeding the anticipated useful life of the items purchased unless otherwise prohibited by law. (6) The department shall issue directives for the procurement, receipt, inspection, and storage of supplies, materials, and equipment, and for printing and services needed by state agencies. The department shall provide standard specifications and standards of performance applicable to purchases. (7) The department may enter into a cooperative purchasing agreement with 1 or more other states or public entities for the purchase of goods, including, but not limited to, recycled goods, and services necessary for state programs. (8) In awarding a contract under this section, the department shall give a preference of up to 10% of the amount of the contract to a qualified disabled veteran. If the qualified disabled veteran otherwise meets the requirements of the contract solicitation and with the preference is the lowest bidder, the department shall enter into a procurement contract with the qualified disabled veteran under this act. If 2 or more qualified disabled veterans are the lowest bidders on a contract, all other things being equal, the qualified disabled veteran with the lowest bid shall be awarded the contract under this act. (9) It is the goal of the department to award each year not less than 5% of its total expenditures for construction, goods, and services to qualified disabled veterans. The department may count toward its 5% yearly goal described in this subsection that portion of all procurement contracts in which the business entity that received the procurement contract subcontracts with a qualified disabled veteran. Each year, the department shall report to each house of the legislature on all of the following for the immediately preceding 12-month period: (a) The number of qualified disabled veterans who submitted a bid for a state procurement contract. (b) The number of qualified disabled veterans who entered into procurement contracts with this state and the total value of those procurement contracts. (c) Whether the department achieved the goal described in this subsection. (d) The recommendations described in subsection (10). (10) Each year, the department shall review the progress of all state agencies in meeting the 5% goal with input from statewide veterans service organizations and from the business community, including businesses owned by qualified disabled veterans, and shall make recommendations to each house of the legislature regarding continuation, increases, or decreases in the percentage goal. The recommendations shall be based upon the number of businesses that are owned by qualified disabled veterans and on the continued need to encourage and promote businesses owned by qualified disabled veterans. (11) To assist the department in reaching the goal described in subsection (9), the governor shall recommend to the legislature changes in programs to assist businesses owned by qualified disabled veterans. (12) Beginning October 1, 2017, the department and all state agencies may not enter into a contract with a person to acquire or dispose of supplies, services, or information technology unless the contract includes a representation that the person is not currently engaged in, and an agreement that the person will not engage in, the boycott of a person based in or doing business with a strategic partner. (13) The following records are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, as provided in this subsection: (a) A bid, quote, or proposal submitted in connection with the authority granted under this section, and records created in the preparation for and evaluation of the bid, quote, or proposal until the time of final notification of award of the contract. (b) Records containing a trade secret as defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902, or financial or proprietary information submitted in connection with the authority granted under this section. (14) The department shall develop policies and procedures that require all procurement contracts entered into by the department or a state agency, including departments that have delegated procurement authority under this act, to include performance-related liquidated damages or performance targets with incentives in all procurement contracts. The department shall also develop policies and procedures that require the department or state agency to enforce these provisions. Departments or state agencies acting under delegated authority shall inform the department of relevant performance issues. Exceptions to the inclusion or enforcement of performance-related contract provisions may only be granted by the department as provided in a written or electronic record by the department. (15) As used in this section: (a) “Biobased product” means a product granted the United States Department of Agriculture certified biobased product label. (b) “Boycott” means refusal to have dealings with, divest from, or otherwise engage with a person. Boycott does not include 1 or more of the following: (i) A decision based on bona fide business or economic reasons. (ii) A boycott against a public entity of a foreign state when the boycott is applied in a nondiscriminatory manner. (iii) Conduct necessary to comply with applicable law in the person's home jurisdiction. (c) “Financial or proprietary information” means information that has not been publicly disseminated or which is unavailable from other sources, the release of which might cause the submitter of the information competitive harm. (d) “Person” means any of the following: (i) An individual, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group. (ii) Any governmental entity or agency of a government. (iii) Any successor, subunit, parent company, or subsidiary of, or company under common ownership or control with, any entity described in subparagraph (i) or (ii). (e) “Qualified disabled veteran” means a business entity that is 51% or more owned by 1 or more veterans with a service-connected disability. (f) “Service-connected disability” means a disability incurred or aggravated in the line of duty in the active military, naval, or air service as described in 38 USC 101(16). (g) “Strategic partner” means a strategic partner described in 22 USC 8601 to 8606. (h) “Veteran” means an individual who meets both of the following: (i) Is a veteran as defined in section 1 of 1965 PA 190, MCL 35.61. (ii) Was released from his or her service with an honorable or general discharge. Credits
