KRS 45A.370: Competitive negotiation.

(1) A local public agency may contract or purchase through competitive negotiation,

which may include a reverse auction, upon a written finding that:

(a) Specifications cannot be made sufficiently specific to permit award on the

basis of either the lowest bid price or the lowest evaluated bid price,

including, but not limited to, contracts for experimental or developmental

research work, or highly complex equipment which requires technical

discussions, and other nonstandard supplies, services, or construction; or

(b) Sealed bidding is inappropriate because the available sources of supply are

limited, the time and place of performance cannot be determined in advance,

the price is regulated by law, or a fixed price contract is not applicable; or

(c) The bid prices received through sealed bidding are unresponsive or

unreasonable as to all or part of the requirements, or are identical or appear to

have been the result of collusion; provided each responsible bidder is notified

of the intention to negotiate and is given a reasonable opportunity to negotiate,

and the negotiated price is lower than the lowest rejected bid by any

responsible bidder.

(2) Proposals shall be solicited through public notice pursuant to KRS 45A.365(3) or

any other means which can be demonstrate d to notify an adequate number of

qualified sources to permit reasonable competition consistent with the nature and

requirement of the procurement. The request for proposals shall indicate the factors

to be considered in the evaluation, including the recip rocal preference for resident

bidders required by KRS 45A.494, and the relative importance of each factor, and

the procedures to be followed if a reverse auction is used in the procurement.

(3) Written or oral discussions shall be conducted with all respon sible offerors who

submit proposals determined in writing to be reasonably susceptible of being

selected for award. Discussions shall not disclose any information derived from

proposals submitted by competing offerors. Discussions need not be conducted:

(a) With respect to prices, where such prices are fixed by law, regulation, or

reverse auction, except that consideration shall be given to competitive terms

and conditions; or

(b) Where time of delivery or performance will not permit discussions; or

(c) Where it can be clearly demonstrated and documented from the existence of

adequate competition or accurate prior cost experience with that particular

supply, service, or construction item that acceptance of an initial offer without

discussion would result in fair and reasonable prices and the request for

proposal notifies all offerors of the possibility that award may be made on the

basis of initial offers.

(4) If discussions pertaining to the revision of the specifications or quantities are held

with any pote ntial offeror, all other potential offerors shall be afforded an

opportunity to take part in such discussions. A request for proposals based on

revised specifications or quantities shall be issued as promptly as possible, shall

provide for an expeditious r esponse to the revised requirements and shall be

awarded upon the basis of the lowest bid price or lowest evaluated bid price after

application of the reciprocal preference for resident bidders required by KRS

45A.494 submitted by any responsive and respon sible offeror. No discussion shall

be conducted with offerors after submission of revised proposals except for a

compelling reason as determined in writing by the local public agency. The request

for proposals shall state that an award is to be made withou t discussion except as

herein provided.

(5) Award shall be made to the responsible offeror whose proposal is determined in

writing to be the most advantageous to the local public agency based upon the

evaluation factors set forth in the request for proposals and the reciprocal preference

for resident bidders required by KRS 45A.494.