There are two kinds of State contracts extended to MiDEAL Members: Definite Quantity Contracts and Extended Contracts.
Definite Quantity Contracts
Some bids performed by Purchasing Operations, such as road salt, include MiDEAL Members during the bidding process. In order to participate in these bids, MiDEAL Members provide Purchasing Operations with definite quantities in advance.
MiDEAL members complete a requisition detailing their requirements for the commodity over the contract period. By being included on the bid, the members have entered into an irrevocable commitment to purchase.
These bids are called Definite Quantity contracts, and participation means the member agrees not to take independent bids for the same commodity.
When a bid of this type is conducted, bidders are quoting on the total quantities indicated in the bid, including usage committed to by MiDEAL members. The names of the participating MiDEAL Members and their quantity requirements are included in the solicitation. Bidders determine their bid prices based on this information.
Extended Contracts
The state buys thousands of commodities for use by State agencies. When Purchasing Operations sends out a solicitation to the business community, it asks bidders if they are willing to extend the State contract price to MiDEAL Members if awarded the contract.
Such an extension is voluntary on the part of the bidder and does not affect the evaluation of bids. Once a contract is in place, a MiDEAL Member may purchase off the contract.