Contract Proposals - Should they be sealed>

MikeS1
Posts: 521

Posted:

Currently, we have 3 or 4 large contracts that are bid out every two years (sometimes only one year). An RFP proposal is put together and then the proposals are all emailed over to our property managers. Sometimes, we leave it up to the property manager to go out and find other vendors. We don't know who the vendors are sometimes until the meeting. In order to make a perfectly level playing field, I would like some way that these proposals are sealed bids. Other than mailing a sealed bid, to the property manager, I don't know of any way that we can seal bids electronically, but I think that it should be done. Over the years, after being exposed to 5 different PMs, I'm seen some funny stuff and (sorry), I just don't trust anyone anymore.

Any ideas on how we could submit electronic proposals that are sealed/encrypted?

FredS7 (Arizona)
Posts: 927

Posted:

If you don't trust your property manager to keep bids sealed, why would you not start by replacing the property manager?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Designate a board member, vs. the PM, to correlate the bids.
The PM would provide the sealed envelope to the designated board member.

Perhaps you will volunteer to do this.

MikeS1
Posts: 521

Posted:

I'm not going to throw the baby out with the bath water. It's hard enough to find a good pm. It's just that we would like to remove all risk.

Tim - I think that we're just going to recommend sending the sealed bids to the president. Not me. Thanks.

LarryB13 (Arizona)
Posts: 4,099

Posted:

What are you taking bids on? Nuclear submarines? C'mon, you're running a rinky dink HOA. Why all the concern for secrecy?

CarolR11 (Colorado)
Posts: 2,563

Posted:

Tim has a good idea and yours of having the sealed bid go to the president also makes sense.

To assure that each vendor receives the same RFP, include in it that it be returned to your HOA with the bid. If you're worried about some sort of hanky-panky on the part of your PM, I can see where one might not give the entire RFP to a certain vendor, or??

MikeS1
Posts: 521

Posted:

"Rinky Dink" - Not really - You can't assume this. That was uncalled for and not productive. There are 3-4 very large contracts and I think that we're going with Tim's sage advice. We just need a policy of determining (early on) who is getting the RFPs and who will be submitting sealed bids in order to make sure that bids are not being thrown out. State and County agencies use this routinely. There is enough history here to motivate us to make sure that there is a level playing field.

MikeS1
Posts: 521

Posted:

Thanks Carol.

MikeS1
Posts: 521

Posted:

Thanks Carol.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I don't get the need for sealed bids in a HOA. The PM shouldn't be deciding on the contracts that's a given. It should only be the HOA board as the PM is a contractor to the HOA. However, I don't believe in secrecy when it comes to conditions of contracts except in matters of personal salaries of employees. The HOA's budget should run like you left your checkbook on the dining room table for the whole family to see. That means all should know the details of what goes into the decision making.

There should be one volunteer on the board be it the President or another Board member who gathers the bids. My rule was we had to have 3 bids on every contract. The resource for the contractor could be anybody. General membership to board members could suggest a contractor. However, that meant who ever they suggested was up against atleast 2 other contractors. It was the board to decide the best contractors out of the 3 bids. Which the contracts were discussed in open meetings. The members have a right to know what contracts the HOA are entering in and what the conditions are for each one. Doesn't mean they get to vote for a certain contractor. The board is to do that. However, the board does represent the General membership and should liste to what the general membership may feel about different conditions of the contract or contractor.

It made my job easier as President if I was open and let people see what went on when deciding on new contractors. It helped especially with getting some feed back. Maybe the members do NOT want certain lawncare services like leaf blowing. Would this not be a condition in a contract when reviewing bids for landscaping? Listen to what the people want. Contractor decisions should be discussed atleast 3 months before the final vote. That's enough time to gather bids, review the conditions, and then vote on the 3 bids to finally decide...

Former HOA President

MikeS1
Posts: 521

Posted:

No said that the PM decides on the contracts (where did you get that from?). Mel- You don't know the history behind this, so there is good reason for a change and process. ...and the HOA budget is publishd, posted and mailed to every homeowner. Let's close out this discussion.

AlbertN (California)
Posts: 10

Posted:

Without sealed bids, how does one handle the situation of a Board member who always wants to see the bids to see if the competition can meet/beat the bid? (I call it bid shopping!)

MikeS1
Posts: 521

Posted:

Exactly Robert - Unless it's a documented process where we know which vendors have been selected and have been sent RFPs, there are some proposals that might get lost in the process. We've seen some unusually high bids come in on some things as compared to where the market prices usually are.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Don't be so rude MikeS1...This is a free advice column...Don't appreciate the attitude...Your HOA is over complicating stuff and can't see the forrest for the trees anyways...

Former HOA President

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By MikeS1 on 09/12/2012 5:22 AM
"Rinky Dink" - Not really - You can't assume this. That was uncalled for and not productive. There are 3-4 very large contracts and I think that we're going with Tim's sage advice. We just need a policy of determining (early on) who is getting the RFPs and who will be submitting sealed bids in order to make sure that bids are not being thrown out. State and County agencies use this routinely. There is enough history here to motivate us to make sure that there is a level playing field.

You are not the state. You are not the county. You are not bound by the state and county bidding procedures. There is no legal requirement that you have "a level playing field."

All HOA's are rinky-dink as they are created by real estate developers and run by non-professional clueless volunteer boards. That includes my own association except while I was on the board.

JonD1
Posts: 2,350

Posted:

Quote:

Posted By LarryB13 on 09/12/2012 11:56 AM

Posted By MikeS1 on 09/12/2012 5:22 AM
"Rinky Dink" - Not really - You can't assume this. That was uncalled for and not productive. There are 3-4 very large contracts and I think that we're going with Tim's sage advice. We just need a policy of determining (early on) who is getting the RFPs and who will be submitting sealed bids in order to make sure that bids are not being thrown out. State and County agencies use this routinely. There is enough history here to motivate us to make sure that there is a level playing field.

You are not the state. You are not the county. You are not bound by the state and county bidding procedures. There is no legal requirement that you have "a level playing field."

All HOA's are rinky-dink as they are created by real estate developers and run by non-professional clueless volunteer boards. That includes my own association except while I was on the board.

I assume that was a joke because you must be kidding....

hoatalk (California)
Posts: 603

Posted:

Quote:

Posted By LarryB13 on 09/12/2012 11:56 AM

Posted By MikeS1 on 09/12/2012 5:22 AM
"Rinky Dink" - Not really - You can't assume this. That was uncalled for and not productive. There are 3-4 very large contracts and I think that we're going with Tim's sage advice. We just need a policy of determining (early on) who is getting the RFPs and who will be submitting sealed bids in order to make sure that bids are not being thrown out. State and County agencies use this routinely. There is enough history here to motivate us to make sure that there is a level playing field.

You are not the state. You are not the county. You are not bound by the state and county bidding procedures. There is no legal requirement that you have "a level playing field."

All HOA's are rinky-dink as they are created by real estate developers and run by non-professional clueless volunteer boards. That includes my own association except while I was on the board.

Please read our posting rules here: http://www.hoatalk.com/PostingRules/tabid/71/Default.aspx

Larry: Your post above breaks this rule: “Post any relevant topic you like, but please keep it clean, helpful, positive and friendly.”

We appreciate you giving advice to others but please watch the tone of your emails and don’t insult our members our the thousands of people that volunteer in their communities.

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