CUPCCAA Informal Bids: What They Are, When to Use Them, and Why Many Agencies Get Them Wrong

So, you've heard about the California Uniform Public Construction Cost Accounting Act (CUPCCAA) and its role in lessening some costs and time when procuring public construction projects. But what's the deal with these "Informal Bids" that keep popping up in conversations? Let's break it down in plain English, shall we?

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What Exactly is an "Informal Bid"?

Imagine a regular formal bid for a construction project - you know, the kind where you see ads in newspapers and hold a public bid opening. Now, strip away a few layers of formality, and you've got yourself an "Informal Bid." But what makes it informal, you ask? Well, here are the key differences:

1. No Newspaper Ads: Unlike formal bids over $220k, there's no need to advertise in a newspaper of general circulation. That means saving a few bucks on advertising - always a plus!  With no formal ad, you’ll still need to work hard to get the word out so bid pressure can be there to hold your project price down.

2. No Public Bid Opening: While a public spectacle might add a touch of drama, it's not mandatory for informal bids. Bidders still have a date and time certain requirement to meet, but the bid opening need not be public.  Swell, but why not do it in a public manner anyway so they all know who won and that pesky bid protest period can easily begin.

3. Shortened Bid Period: Instead of the required 16 days or more, you can get away with a minimum of just 11 days for contractors to submit their bids. But hey, why rush things, right? Contractors usually need a bit more time anyway.

Why Go Informal?

Sure, saving money on newspaper ads sounds great, but why bother with informal bids at all? Well, it's all about efficiency:

1. Faster Process: Skipping the newspaper ads and public opening can streamline the bidding process internally, allowing staff to get the bid out on the street faster.

2. Still Legally Sound: Don't worry, going informal doesn't mean cutting corners when it comes to legality. CUPCCAA provides clear guidelines for informal bids to ensure everything stays above board.

How to Handle Informal Bids

So, you've decided to dip your toes into the world of informal bidding. Here's what you need to know:

1. Use the Right Code Reference: Make sure to label your bid documents with "INFORMAL BID UNDER CUPCCAA." This lets everyone know you're playing by the rules, even if you're skipping a few formalities.

2. If the Bid Comes in Higher than $220k?: If your estimate including enough money for unforeseen conditions and allowances is even close to hitting the $220k mark, go formal!  You must stay under that even with change orders.  CUPCCAA allows the awarded amount some wiggle room - up to $235,000, but only with special board action.  Otherwise, your only option is to re-bid.

3. Do Your Usual Post-Bid Activities: Just because it's informal doesn't mean it’s not a normal bid in other ways.  Treat the post-bid due diligence like you would any formal bid over $220k.

Conclusion

And there you have it - the lowdown on informal bids under CUPCCAA. While they may lack a little of the pomp and circumstance of their formal counterparts, informal bids offer a practical and efficient way to get things done in the world of public construction.

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