Market Basket Bids the

Market Basket Bids
“Meat and Potatoes”
AASBO Spring Conference
March 28, 2013
Presented by:
Lila McCleery – Phoenix Union High School District
 What is a market basket bid?
 Are market basket bids a new trend?
 Why and when would I consider doing a market basket
 What are the advantages/disadvantages of doing a
market basket bid?
 How does evaluation of a market basket bid differ from a
line item bid?
 Will my market basket bid satisfy the auditors?
What is a Market Basket Bid?
Standard Line Item Bid - Specifications
Standard Line Item Bid - Pricing
Standard Market Basket Bid Specifications and Pricing
Are Market Basket Bids a New Trend?
 No.
 Not a new trend, but possibly not as utilized by some school
districts as others
Reasons to Use a Market Basket Bid:
 Save Time and Money
 Eliminate Duplication of Effort - multiple bids annually for
the same commodity (i.e., art supplies, athletic supplies)
 Provide Multiple Vendor Options for your End-Users
 Detailed Control of Your Market Basket (sub-categories)
Why and When to do a Market Basket Bid
 Multiple Category Bids (M&O Supplies)
 Unknown annual quantities to be
purchased or unable to identify
anticipated needs
 Too cumbersome to list 500-1000 items
that you would list and evaluate in a
line item bid.
 Time/cost savings realized in
 School/District is not required to
purchase a certain quantity of any
 Satisfy competition requirements for
walk-in and in-store type purchases
What are the Advantages / Disadvantages
 Time savings in bid preparation
 Time savings in evaluation
 Money savings (Time is Money!)
 Easier bid management after
 Multiple award (more vendor
choices for end-users)
 Potential 5 year bid award
 Significant percentage discounts
 Specified category shipping
 Flexibility in writing your response
requirements (vendor must
respond to at least 60% of the
market basket to be considered)
 Only one discount per market
basket will be accepted.
 Better pricing could be
achieved with a line item bid
if specific quantities are
known and purchased
 Educating the end-users on
proper use of contract award
 No vendor response or poor
vendor response on a
specific category
 Having to educate vendors
on responding to this type of
How Does Evaluation of a Market Basket Bid
Differ from a Line Item Bid?
How Does Evaluation of a Market Basket Bid
Differ from a Line Item Bid?
 Truth is, it really doesn’t differ.
 Evaluation should be
performed by individual(s)
with the expertise to
determine “or equals”
You have 7 line items in a specific bid
category, and 5 vendors respond. If
each vendor is the lowest priced
vendor on a line item, then you
could award that category to all 5
 Awarded vendors on each
market basket are still
determined by lowest
You have 7 line items in a specific bid
category, and 22 vendors respond.
ABC Vendor is the lowest priced on
each item, but there is a question as
to whether ABC vendor will always
have the item in stock for immediate
delivery, you may determine to
award the category to the top 2 or 3
lowest priced vendors.
 Evaluation shouldn’t take as
long as a multiple line item bid
 Document your bid file on
how you determined the
number of awarded vendors.
REGARDLESS of how you award, it should
always be to the LEAST number of
vendors required to meet your District’s
Language That Should be in Your Bid
Will My Market Basket Bid
Satisfy the Auditors?
If your Market Basket Bid is:
 Thoughtfully prepared using a realistic market basket of commonly used
 Thoroughly documented – Why did you do what you did? Write it down.
 Written determinations for multiple year bid and multiple awards (if
 Fairly evaluated by individuals with the expertise to determine “or equals”
The auditors should find no procurement discrepancies with your Market
Basket Bid.

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