Bid Averaging Method (BAM)

The goal of the Bid Averaging Method (BAM) is to get contractors to bid a true and reasonable cost for a project. This method allows the contractor to bid what the actual project will cost without “needing” to be the lowest bidder.

BAM Contracts are included in $120 Million Cap and must be Submitted and Approved through the Project Management Office.

According to the Work Program Instructions, BAM must not to be used on Federally Funded Projects but only 100% State Funded or Local Projects.

If 5 or More Bids are received, the Department excludes the high and low, then averages the rest and selects contractor closest to the average.

If 3 or 4 bids are received, the Department averages all bids and selects contractor closest to the average. If less Than 3 Bids are received, the Department rejects all bids and re-advertises the project.
Upon award of the project, the Department’s normal contract administration processes are used.