REQUIREMENTS FOR AWARDING AUCTIONS

A. At equal conditions, the auction shall be awarded to the lowest bidder. The auction may be awarded to another bidder if the quality of the product and convenience of the Department in such sense, justifies it. In the evaluation of the proposals, the 18 recommendation of the requesting office and the technical committee, if any, may be requested in order to determine if the product or the quoted service satisfies the needs of the Department. In case that a bidder, which is not the lowest one, is selected the reasons for his selections shall be given in writing. B. One, various or all the proposals received as a result of an invitation for an auction may be rejected if the bidders lack of the adequate capability to comply with their proposals, or if the nature or quality of the equipment, materials or nonprofessional services does not adjust to the requirements, or if the quoted prices are considered unreasonable for being to high, or 80 low that raise doubts on the bidder compliance, or if for the interest of the Department its rejection is justified. C. In the event that two or more bidders make identical proposals in specifications, conditions and prices, it shall be proceed in the following manner: 1. Draw Bidders shall be appointed, through any available mean of communication, for a date that may not exceed three days counting from the date of the determination. It shall be recorded in the file. Draw bidders shall appear in the Purchases Office, at the time and dated appointed, and submit their new prices in a new envelope, which shall be equal or lower than those previously quoted. Such envelopes shall be opened in the presence of the bidders or his representatives. 2. If a new draw arises, the same procedure shall be followed. D. When the Board receives a bid of one sole bidder, the same may be accepted, or another decision may be taken, according to the public best interests. E. Should the quotation of the only bidder be of an unreasonable price, the same shall be rejected because there was not an adequate competition. The offer may also be rejected if the bidder is not reliable, in agreement to the requirements established in this Regulation. F. The Board may authorize the Department or its institutional units to negotiate with the only bidder in order to attain possible agreements. If no agreement is reached, the offer shall be rejected and the auction may be cancelled. G. Should all proposals be rejected for not complying with the specifications, or the conditions or because it proposes unreasonable prices, or because a collusive behavior intervenes, a minute shall be written containing the details that caused the rejection and a new auction shall be called. 19 H. When all proposals exceed the funds available for the acquisition of the equipment, materials and non-professional services requested, the amount should be negotiated with the bidder that turns to be the lowest and which complies with all the requirements without the need to cancel the auction. in those cases the award shall require the previous authorization of the Secretary of the Department of Agriculture, or his authorized representative in the institutional units. I. The Auctions Board shall evaluate any proposal, or quotation which contains alterations, crossing outs, or irregularities and not having initiated by the bidder in order to determine if the same constitute a fundamental error that affects the award of the auction. If the bidder, or his authorized representative is present, shall be granted with the opportunity to make the pertinent corrections and to write his initials by the modifications made. However, if the bidder or his authorized representative does not assist to the auction's opening the Board may reject forthright his proposal. J. In the award process T the provisions of Act No. 42 of August5, 1989, "Preference Procurement Policy Act for the Government's Purchases" that establishes as a public policy to favor the purchase of equipment, materials and non-professional services produced, manufactured, assembled or marketed in Puerto Rico. Such preference shall be included in the actions invitation. Purchases may be adjudicated in favor of businessmen or firms outside of Puerto Rico when no local firms that may serve the equipments, materials, or services wished to be acquired exists in Puerto Rico.