By Randy Ewald, Info Tech, Inc.

While electronic bidding saves a state transportation agency many hours in data processing and prevents costly bidding errors, there are many states that are not taking advantage of it. This article responds to common concerns and questions that states may have about implementing electronic bidding. Let’s begin with a definition:

It is the electronic transfer of proposal bid data between a state transportation agency and contractors. Electronic bidding can either supplement or replace traditional paper bid documents. Trns•port Expedite® is the AASHTO Trns•port® software product used for preparing and submitting electronic bids. Bid Express™ is an Info Tech, Inc.-owned service used to exchange electronic bidding information via the Internet using digital ID and encryption technology.

Most states using Expedite are already doing electronic bidding. They do so when contractors submit their bid tab information on a floppy disk that they have prepared using the Expedite software. Floppy disk submission generally also requires the contractor to prepare and sign additional paper proposal documents. With Internet bidding, the Expedite EBS file actually becomes a "mini proposal," so when the contractor digitally signs and submits a bid via the Internet, no paper is required. With both floppy disk and Internet bid submission, the need for data entry on the state agency’s side is eliminated. Now let’s look at the steps that need to be taken for implementation.

Step 1: The contractor community buys-in to the process
In general, the contractors are very excited about electronic bidding. However, just like most people, they may be hesitant to change and they tend to resist things that are mandated. It is important to keep the contractor community informed during every step of the process and to plan pilot programs so they gradually get accustomed to the idea. A good way to ensure acceptance of an electronic bidding program is to create an Electronic Bidding Task Force that includes contractors or contractor associations as members. This group can guide your organization through the process and ensure that the contractors’ concerns are being voiced.

Step 2: There is legislation/regulations to support the Digital IDs/signatures
The new federal law popularly called the E-Sign bill was signed by President Clinton during 2000, allowing for the nationwide use of digital signatures. This new law requires digital signatures to be technologically neutral. Generally, the state transportation agency must work with the state attorney general or department of state to determine what the specific state requirements are and if they meet the federal regulations. The Internet bidding system used with Expedite is a closed loop system not open to the public. With this system, no digital ID is enabled without the explicit approval of the state transportation agency. The bids are encrypted with a public key, which can only be opened with the pass phase protected private key that only the state transportation agency holds.

Step 3: The state transportation agency management supports the work-flow changes
Electronic bidding requires either processing of floppy disks or automatic processing of Internet submitted bids. Both processes involve a change from a data entry procedure to a quicker, more streamlined input process. This leads to a change in workflow and often eliminates the need to have a data processing staff. It takes a commitment from the management team to lead a state transportation agency through this phase.

Expedite is licensed for free to all states that also license Trns•port PES®and LAS®. For states not licensing PES and LAS, there is a $10,000 annual fee.

Setting up Internet bid submission capability for states using Expedite can be funded with direct contract or through the AASHTO Service Unit Program. Expedite training for both contractors and state agency personnel is also available for an additional fee.

During Internet bid submission, Bid Express acts as an agent for the state transportation agency. The Bid Express site works directly with Expedite over the Internet to become an electronic countertop and an electronic "lock-box" for the encrypted bids received. There are contracts with the state that must be signed and put in place for Bid Express to act as this "counter-top" agent.

Once these steps are taken, electronic and/or Internet bidding is a relatively easy implementation for both the state agency and the contractor community. The majority of the set-up, training and technical work is done by Info Tech. The work for the state agency typically revolves around management, administrative and workflow tasks, rather than technical issues. Comprehensive training is available for both the contractor community and the state personnel.

Currently, Georgia and Iowa are in full production doing Internet bid submission. They would be happy to share their experiences from a state agency perspective. Please feel free to contact them.