Ethics & Evaluations
Rev. 05/08/2023
Welcome & Introductions
Workshop Objective
This workshop will help you understand the lawful guiding principles that help CDOT purchase goods or services in an ethical, transparent manner while offering opportunity for everyone.
Public vs. Private Sector Procurement
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Activity | Public | Private (Depending on company policy) |
Accept lunch or dinner invitations | Not Accepted | Able to Accept |
Accept entertainment like tickets to sporting events | Not Accepted | Able to Accept |
Worries about the perception of the public | Yes | No |
Has a formal legal procedure for acquisitions | Yes | No |
MAIN DIFFERENCE | ||
Funding | Using Taxpayer Dollars for Purchases | Using Company Money for Purchases |
Public Sector
Gifts & Entertainment
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“6. Never solicit or accept money, loans, credits, or prejudicial discounts, and avoid the acceptance of gifts, entertainment, favors, or services from present or potential suppliers which might influence or appear to influence purchasing decisions.”
“Extreme caution must be used in evaluating the acceptance of any gratuities even if of nominal value (under $25.00), and the frequency of such actions (the collective impact) to ensure that one is abiding by the letter and spirit of these guidelines…”
From the: State of Colorado Code of Ethics and Guidelines
Public Sector
Gifts & Entertainment
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Vendor Items with Logos
Use an abundance of caution with logo branded items such as mugs, pens or hats with logos. Competitors might perceive a bias or unfairness because you have those items in your possession.
Public Sector
Gifts & Entertainment
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Programs work with vendors that will bid on current and/or future opportunities. Work has to continue with the current vendor under the current scope of work. Make sure not to discuss any specifics or details of new/future solicitations that may give them an unfair advantage over other bidders.
A good rule is to kindly decline ALL coffees, lunches, etc., with vendors and especially any instance where the vendor pays. Without exception, ALWAYS decline invitations from current/all vendors that may bid on an opportunity that is open, being evaluated or has not been awarded.
Direct vendors to your Purchasing Agent with any questions to protect the integrity of the process.
Provide email addresses of potential bidders to your Purchasing Agent. Our Help Desk will notify them of the bid.
Public vs. Private Sector Procurement
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As employees in the public sector, we have a responsibility to use taxpayer dollars as specified in the law and must provide equal opportunity and access to everyone competing for contracts or State of Colorado (CDOT) business.
Accountability is important in the public sector. People who intentionally and wilfully violate laws can be penalized for their actions and have to personally pay for any damages.
As employees in the public sector, you are also responsible for reporting fraud or suspicious behavior of state employees, vendors or other parties. Don’t be dismissive!
HOTLINE: Report Fraud, Waste & Abuse: 1-800-461-9330 or www.mysafeworkplace.com
If you suspect fraud, bid rigging, or other suspicious behavior from vendors, contractors, or consultants please notify your Purchasing Agent immediately.
Fraudulent Activities
Bid Rigging, Collusion, Bid Tampering
Change order abuse - Wins a low bid but submits changes or additions to the contract resulting in much higher costs.
Bidder exclusions - Restrictive qualifications/specifications that intentionally eliminates vendors from bidding, publishing a bid with not enough time for vendors to respond to limit bid responses, bundling contracts to exclude bidders, coercion and intimidation or rejection of bids over trivial matters.
Split purchases - Splitting a purchase to keep it under bid thresholds to avoid publishing a bid. Potential for kickbacks and lessens oversight. This is a Fiscal Rule Violation.
Leaking of bid information - Provides an unfair advantage to preferred bidders.
Bid manipulation - Happens after bid responses are received when bid parameters and/or evaluation processes change or other activities allow the selection of the bidder of choice.
Rigged specifications - Happens by tailoring a request to individual bidders or creating vague criterion to choose a preferred bidder.
Unbalanced bidding - Bidder offers high prices for items, intending to raise the number of units while purchasing them at a competitive rate while skimming profits from the artificially high bid price. Bidders may give low quotes for non-necessary items (knowledge gained through collusion or experience) to disadvantage other firms as their bid is more competitive. This serves to increase the cost for new bidders allowing companies to have the advantage.
Unjustified sole source awards - Avoiding competition and claiming sole source status when there are other bidders can provide the goods or services requested.
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Fraudulent Activities
Bid Rigging, Collusion, Bid Tampering
Types of fraud that can happen within selective industries, typically a group of vendors:
Bid suppression - Conspirators agree not to submit bids allowing another conspirator to win the award.
Complementary bidding (cover bidding oir courtesy bidding) - Conspirators agree to submit bids that are intended to be unsuccessful, so another conspirator can win the contract.
Bid rotation - Conspirators take turns being the successful bidder (each takes a turn).
Bid delegation - Conspirator bids on behalf of a different or competing bidder.
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Fraud Examples
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Group Activity - Fraud Discussion (30 Min.)
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Ethics Checklist
Consider the following when evaluating if a behavior is ethical:
Ref. OSC, DPA
Fraud Reporting
Report activities you suspect to be fraudulent to your Procurement Agent.
You may want to document all the details in writing.
Other places to report fraud:
Fraud hotline 1-800-461-9330, www.mysafeworkplace.com
Federal Bureau of Investigation
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Evaluation Committee
You may be selected to participate in the evaluation of Request for Proposal (RFP). The RFP process measures economy and quality when purchasing goods and services, and it ensures fair treatment of vendors desiring to do business with the Colorado Department of Transportation (CDOT). The evaluation committee and its functions are an essential part of that process.
Evaluations
Break
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Evaluation Committee
It is important for you as an evaluator, to know what will be expected of you before committing to this duty.
Being on an evaluation committee will require long hours of concentrated effort.
When participating on an evaluation committee, always carefully consider the materials we will cover, and let the Procurement Agent know if you have questions or reservations.
Evaluation Committee
You will be limited to considering only the evaluation criteria published in the RFP to score proposals.
State of Colorado Code of Ethics
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6. Never solicit or accept money, loans, credits, or prejudicial discounts, and avoid the acceptance of gifts, entertainment, favors, or services from present or potential suppliers which might influence, or appear to influence purchasing decisions.
7. Promote positive supplier relationships through impartiality in all phases of the purchasing cycle.
8. Display the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the State of Colorado and the public being served.
9. Provide an environment where all business concerns, large or small, majority or minority owned, are afforded an equal opportunity to compete for State of Colorado business.
10. Enhance the proficiency and stature of the purchasing profession by adhering to the highest standards of ethical behavior.
Affidavit of Acknowledgement
Conflicts of Interest - Defined
A situation in which an individual has competing interest or loyalties because of their duties to more than one person or organization. A person with a conflict of interest potentially can’t do justice to the actual process because of conflicting interests. Furthermore, they are not able to act with an unbiased, non-partial perspective.
Group discussion of conflicts of interest
Office of the State Controller, Procurement Conflicts of Interest Policy & Technical Guidance
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Conflicts of Interest- Examples
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Conflicts of Interest
Anyone who has a conflict of interest or cannot act in an unbiased, non-partial perspective must remove themselves from participation on an evaluation committee.
If you have questions or think you may have a conflict of interest, discuss with the Procurement Agent in your initial discussions.
Your awareness of a potential conflict may not arise until you are well into the evaluation process. If you are ever in doubt about your ability to act ethically on this RFP because of a conflict of interest, please notify the Procurement Agent immediately.
If vendors become aware an award of a solicitation/contract resulted from a conflict of interest, they can protest the award decision. Until the issue is resolved, the procurement will be delayed.
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Evaluation Committee
Rules of Conduct
1. Vendor contact: The committee members will be strictly prohibited from participating in individual meetings, lunch, entertainment, or any other direct contact with vendors once you have been appointed to the Evaluation Committee.
2. Members must have no personal interest in what vendor has recommended.
3. Members must have professional interest that the recommendation of the Committee could lead to the selection of a given vendor and that such vendor can and will provide a product or service to the State of Colorado in an acceptable manner.
4. Evaluation committee members must have a sufficient understanding of the evaluation process and the rules associated with the evaluation process to legally support and defend them, if necessary.
5. Each member will be requested to attest that they have no personal interest in what vendor has recommended and that they understand and can perform with the rules set forth within.
6. Items of question will be brought before the entire Committee. Contact with vendors will be conducted only through the Purchasing Office and responses will be presented either verbally to the Committee by the vendor or in writing to the Committee. If verbally, appointments between the vendor and the Committee will be coordinated by the Purchasing Office. If in writing, schedules for submission will be coordinated by the Purchasing Office.
7. The Committee is directed to perform as fair an evaluation as possible of all proposals and to set aside prejudices.
8. Each member will be requested to sign a form stating his/her participation and concurrence or non-concurrence to the final reports for vendor recommendation. Should a Committee member take exception to a given item or the Committee as a whole, he/she shall record such exceptions and attach to the signed recommendation for award form.
9. During the process of evaluation and while meetings are in session; the Committee shall maintain strict confidentiality. No member shall transmit, communicate, or otherwise convey preliminary conclusions or a result of what was proposed/bid by the vendors, or that a given vendor will be selected. All internal workings of the Committee shall be kept confidential until the Committee has completed its work and provided its final report, and the Purchasing Director has officially announced the selected vendor. You, as a Committee member, may report schedules and activity, which are not to be confused with the activity or results of the Evaluation Committee.
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Evaluation Committee
Instructions
1. The first mandate of the Committee after receipt of the proposals shall be to eliminate from further evaluation any and all vendors who do not meet the predefined mandatory requirements.
2. If such process eliminates all or all but one vendor, the Committee will adjourn until appropriate management action can be taken.
3. If the conditions set forth in Item 2 do not occur, the Committee shall proceed with the detailed evaluation of the two or more remaining vendors.
4. The evaluation process will begin with each committee member conducting an individual evaluation of each proposal/bid submitted. Following such independent review, the committee will meet to discuss their conclusions. The evaluations will be summarized and averaged for the Committee as a whole.
5. It may develop that members of the Committee will not always arrive at the same conclusions. The Committee will discuss any individual differences as best as possible, which may include requests for additional material. The resulting discussions or materials may bring consensus or each member may retain his/her independent thinking in his/her rating, which will be averaged with the other evaluations.
6. Wherein these methods produce an unacceptable conclusion to any member, he/she may, at his/her option, take exception in their final report. Where such differences are matters of fact (mathematical in nature or facts of evidence), and cannot be resolved by consensus, the Committee Chair shall rule. The Chair shall keep a record of the evaluation events in the event of such rulings.
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RFP Sample Review
Tips
Individual Scoring
Any attempts, made by anyone, to influence your judgment of a particular proposal must be reported to the Procurement Agent immediately.
Individual Scoring
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Evaluation Committee Scoring
Evaluation Committee Scoring
Evaluation Committee Scoring
Reference Check Questions
The committee has the option to check offeror references. This form provides some basic questions that may be asked of an offeror’s references. CDOT does not recommend assigning points to references. However, language in the RFP template provides that negative references may be grounds for proposal disqualification.
Handout - RFP Reference Check Form
Questions?
Thank you!
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