Bid or RFP Specifications - How Strict Are They?

Posted by Administrator on June 28th, 2007

When responding to an RFP, have you ever wondered how strict the RFP requirements are? A recent case in Lucas County, Ohio, proves that even if you’re awarded a contract, it can be taken away if you didn’t fully meet the original specification requirements.

New Era Builders Inc. of Cleveland won a $2.5 million Lucas County contract to install security equipment at an East Toledo water treatment plant. A problem arose because the city’s original bid specifications required the winning contractor to have an office in the Toledo area – and contractors were prohibited from opening an office in the Toledo area just to qualify for this project.

The director of public utilities, Robert Williams, said that the requirement to have an office within a 50-mile radius was ambiguous. Williams said that the local office requirement was unique to that bid specification and that it caused a problem with the whole bid.

The truth came out that New Era Builders did not have a local office that was active. They rented an office on Washington Street that wasn’t managed on a daily basis– and the reason the office was opened was to qualify for Lucas County’s project. Northwestern Ohio Building and Construction Trades Council, a construction workers union, presented a lawsuit. They claimed that New Era Builders Inc. was using a sham office at the 901 Washington Street location.

The lawsuit was brought to the attention of a judge, who ruled that the $2.5 million contract be thrown out. Carty Finkbeiner, Mayor of Toledo, accepted the judge’s ruling. The contract will go out for rebid as soon as possible.

Read the full article.

This Lucas County story spotlights the fact that project specifications aren’t meant to be treated as “guidelines”. If you can’t fully meet the details called out in the RFP specifications but go ahead and pursue the project anyway, you may risk losing the project and damaging your relationship with the agency. It’s important to treat RFP specifications as the exact needs of the agency. If you have any questions, be sure to ask the contracting officer.

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