We currently have a project out to bid for the installation of about a quarter mile of 10-inch water main. As usual, after we release the notification to bidders, we begin receiving requests from companies asking for a list of bidders or plan holders. Our city’s policy is to not release this list until after the bid opening because of the potential of affecting bid prices. For example, a potential bidder could submit a different bid based on who the competition is and how many other companies have picked up plans.
With the relatively new FOIA laws in Illinois, we’ve had companies trying to claim the information as a FOIA request. However, we have been denying the request under the following exemption stated in this law:
(h) Proposals and bids for any contract, grant, or agreement, including information which if it were disclosed would frustrate procurement or give an advantage to any person proposing to enter into a contractor agreement with the body, until an award or final selection is made. Information prepared by or for the body in preparation of a bid solicitation shall be exempt until an award or final selection is made.
We received a request the other day from a company outside of Illinois and sent them our standard denial letter based on this exemption. They ended up sending a letter to the State of Illinois arguing that we should release the information because they want to submit bids as a subcontractor and the information would encourage a more competitive bid. There are several issues with this.
- First and most importantly, we believe we are exempt from releasing it, although the final decision will now rest with the State.
- Next, if the State determines we must release the information, this would become a FOIA request for a commercial purpose which the company failed to mention and by failing to do so violated the law. However if the State determines we must release the information and if the company ends up properly requesting the information, we would have 21 days to respond since it is a request for a commercial purpose which means they would receive the information after the bid opening rendering it useless for their purpose.
- Finally, the project involves no work that would require the type of services they appear to offer. It would be like bidding out a road resurfacing project and a supplier of excavators wanting to get a list of bidders to give them prices on new equipment. There’s just no specific pay item for that work. So I am not even sure how giving a heavy equipment sales company a list of bidders for a specific project that has no specialty items helps lower our cost.
The end result is a waste of time for everyone. Where I worked before, I ended up not being able to even send out lists because we offered proposal materials online so we would not have known who downloaded them. And if we continue to have issues with this, we would probably end up choosing to do the same or just not keep a list. But I was wondering how other agencies are handling these requests, if others believe releasing the lists can affect the bids, and if other states require agencies to release the information prior to opening of the bid.