You state that the purchasing agent sent out bid documents for the purchase of asphalt, liquids, road oils, and similar items. Although the 'Notice and Instructions to Bidders' uses the term 'annual contract' in relation to such items, none of the bid documents provide the specific term of the contract. Vendor may raise prices only when the market justifies with a 30 day written notice. The contract may be terminated on a 30 day written notice by either party. Company B also changed the units from tons to gallons or pounds on some of the asphalt items.
Competitive bidding is the foundation for purchasing by agencies of the state of Texas.
The purpose and intent of competitive bidding ordinances and statutes are well stated in Sterrett v. Bell, Tex. It requires that all bidders be placed upon the same plane of equality and that they each bid upon the same terms and conditions involved in all the items and parts of the contract, and that the proposal specify as to all bids the same, or substantially similar specifications. Its purpose is to stimulate competition, prevent favoritism and secure the best work and materials at the lowest practicable price, for the best interests and benefits of the taxpayers and property owners. There can be no competive bidding in a legal sense where the terms of the letting of the contract prevent or restrict competition, favor a contractor or materialman, or increase the cost of the work or of the materials or other items going into the project. See also V.T.C.S. arts.