Source: http://fsmlaw.org/fsm/code/title55/T55_Ch04.htm
Timestamp: 2019-04-26 07:43:30+00:00

Document:
§ 403. Competitive bidding required.
§ 404. Citizen-bidder preference — Amount.
§ 405. Citizen-bidder preference — Eligibility.
§ 406. Bonding and insurance.
§ 407. Exception — Foreign aid requirements.
§ 409. Qualifications of bidders.
§ 410. Advertisement for bids.
§ 411. Bids — Opening, rejection.
§ 412. Bids — Information.
§ 413. Award to lowest responsible bidder.
§ 414. Effect of restraint of competition.
§ 415. Effect of advance disclosure of terms of bid.
§ 416. Assignment of contracts.
§ 417. Institution of legal actions.
Editor’s note: Chapter 3, originally reserved for Government Contracts in the 1982 edition of the code, was renumbered chapter 4 by the codifiers herein.
Chapter 4, originally reserved for Public Auditor in the 1982 edition of the code, has been renumbered chapter 5.
Source: PL 2-65 § 1.
(e) upon termination of the Trusteeship, a business which has paid gross revenue taxes to the Federated States of Micronesia for the one year period immediately prior to the submission of its bid.
(2) “Contracting officer” means the official in charge of letting a contract for a National Government agency.
(3) “Lowest responsible bidder” means the lowest bidder whose offer adequately responds in quality, fitness, and capacity to the particular requirements of the proposed work called for by the contract.
(4) “National Government agency” means any branch, department, office, division, board, bureau, commission, committee, institution, or authority of the National Government of the Federated States of Micronesia.
Source: PL 2-65 § 2; PL 4-4 § 1.
All contracts for construction projects involving $20,000 or more or for the purchase of personal property involving $50,000 or more made on behalf of any National Government agency shall be let by free and open competitive bidding, by sealed bids, to the lowest responsible bidder in accordance with the provisions of this chapter.
Source: PL 2-65 § 3.
(1) Citizen bidders who qualify to bid under the provisions of this chapter shall receive preference over noncitizen bidders in determining the award of the contract.
(d) there shall be no citizen bidder preference with respect to contracts for construction projects involving $10,000,000 or more, or for the purchase of personal property involving $10,000,000 or more.
Source: PL 2-65 § 4; PL 4-4 § 2.
(4) For construction projects, the bidder shall commit that until the termination of the Trusteeship, at least 25 percent of all workers employed at all times at the job site shall be citizens of the Trust Territory of the Pacific Islands; that upon termination of the Trusteeship, at least 25 percent of all workers employed at the job site at all times shall be citizens of the Federated States of Micronesia; and that at least 25 percent of all materials and supplies utilized in the construction project shall be purchased from within the Federated States of Micronesia.
Source: PL 2-65 § 5; PL 4-4 § 3.
Except for contracts for construction projects involving $150,000 or less, or for the purchase of personal property involving $10,000,000 or less, the contracting officer is hereby authorized to impose such bonding and insurance requirements that, in his best judgment, are necessary and appropriate to ensure proper performance of the contract by the contractor. Such bonding and insurance requirements may include, but need not be limited to, bid guarantee, performance bond, or payment bond.
Source: PL 2-65 § 6; PL 4-4 § 4.
The provisions of this chapter shall not apply if the Federated States of Micronesia has entered into an agreement for a foreign aid project, the terms of which require that construction contracts or contracts for the purchase of personal property which are necessary for the completion of the project shall be let to nationals of the donor country.
Source: PL 2-65 § 7; PL 4-4 § 6(part); PL 4-100 § 1.
In case of emergency affecting public health, safety, or convenience so declared in writing by the President upon application by the head of any National Government agency setting forth the nature of the emergency and the danger to the public health, safety, or convenience caused by delay, contracts may be let to the extent necessary to meet the emergency without public advertisement. Such action and the reasons therefor shall immediately be made public by the awarding authority.
Source: PL 2-65 § 8; PL 4-4 § 6(part); PL 4-100 § 2(part).
Before any prospective bidder may be entitled to submit a bid for the performance of a contract covered by section 403 of this chapter, he shall, not less than 10 calendar days prior to the date designated for opening bids, give written notice to the contracting officer of his intention to bid, and such officer shall satisfy himself of the prospective bidder’s financial ability to perform the work intended and of his experience and competence in performing similar work. Whenever it appears to the contracting officer that the prospective bidder is not fully qualified and able to perform the intended work, the contracting officer shall refuse to receive or consider any bid offered by the prospective bidder. Upon being determined not to be fully qualified, a prospective bidder may appeal this determination within 10 days after notice of disqualification in accordance with the Administrative Procedures Act, chapter 1 of title 17 of this code.
Source: PL 2-65 § 9; PL 4-4 § 6(part); PL 4-100 § 2(part).
Publication of a call for sealed bids shall include posting of notice for at least ten days in the immigration office and in one other prominent public place in each State in the Federated States of Micronesia, the use of radio and newspaper media when considered appropriate by the contracting officer, and any other means he may consider feasible. The notice shall state in clear terms the project that is to be bid on.
Source: PL 2-65 § 10; PL 4-4 § 6(part); PL 4-100 § 2(part).
The time of opening sealed bids shall not be less than 30 days after the final publication. All bids shall be sealed and delivered to the contracting officer and, in the presence of all bidders who attend, shall be opened by him at the hour and places as stated in the advertisement and may be inspected by any bidder. Any bid which does not comply with the requirements of the advertisement shall be rejected. If two or more bids are the same and the lowest, the contracting officer may accept the one he chooses. If no bids are received, the contracting officer may have the project done without further compliance with this chapter.
Source: PL 2-65 § 11; PL 4-4 § 6(part); PL 4-100 § 2(part).
Source: PL 2-65 § 12; PL 4-4 § 6(part); PL 4-100 § 2(part).
All contracts shall be in writing and shall be executed by the National Government agency which is authorized to let contracts in its own name and shall be made with the lowest responsible bidder. If the lowest bid is rejected, the contracting officer may, at his discretion, award the contract to the lowest remaining responsible bidder or advertise anew for bids pursuant to section 412 of this chapter. In each instance the officer, at his discretion, after determining the lowest responsible bidder, may negotiate with that bidder, and that bidder only, to reduce the scope of work and to award the contract at a price which reflects the reduction in the scope of work.
Source: PL 2-65 § 13; PL 4-4 §§ 5, 6(part); PL 4-100 § 2(part).
Source: PL 2-65 § 14; PL 4-4 § 6(part); PL 4-100 § 2(part).
Source: PL 2-65 § 15; PL 4-4 § 6(part); PL 4-100 § 2(part).
No contracts awarded to the lowest responsible bidder shall be assignable by the successful bidder without written consent of the awarding authority.
Source: PL 2-65 § 16; PL 4-4 § 6(part); PL 4-100 § 2(part).
Any citizen taxpayer in the Federated States of Micronesia or any bona fide unsuccessful bidder on a particular contract shall be empowered to bring a civil action in the Federated States of Micronesia Supreme Court to enjoin execution of any contract entered into in violation of this chapter.
Source: PL 2-65 § 17; PL 4-4 § 6(part); PL 4-100 § 2(part).
Cross-reference: The statutory provisions on Judicial Procedure are found in title 6 of this code.
The President may issue regulations to implement this chapter in accordance with the provisions of the Administrative Procedures Act, chapter 1 of title 17 of this code.
Source: PL 2-65 § 18; PL 4-4 § 6(part); PL 4-100 § 2(part).

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