Source: https://www.uasys.edu/system-office/finance-and-administration/vi-project-bidding-for-hard-bid-capital-construction/
Timestamp: 2019-03-18 19:41:27
Document Index: 400888705

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VI. Project Bidding for Hard Bid Capital Construction - University of Arkansas System
Home / System Office / Finance and Administration / VI. Project Bidding for Hard Bid Capital Construction
A. Competitive Quote Bid
Capital improvement projects which exceed $5,000 and are $20,000 or less (between $5,000.01 and $20,000.000) shall be contracted by contacting and requesting a minimum of three (3) bonafide bidders to bid the work. These projects shall be known as a “Quote Bid.”
Differences between a Quote Bid and a Sealed Bid:
Between $5,000 and $20,000 Required for projects greater than $20,000
May be faxed or e-mailed In sealed envelope and not opened until bid opening
Contractor Licensure not required Contractor Licensure required
Informal deadline, no formal bid opening Hard-bid receipt deadline
No bid security Bid security (bid bond) required
B. Emergency Contracting
Capital improvement contracting may be made pursuant to Arkansas Code Annotated § 22-9-201(Appendix 17) where unforeseen or unavoidable circumstances occur:
When human life, health, safety, or state property is jeopardy.
To reconstruct facilities, construct new facilities, and related site work due to fire, storm, riots, etc.
Construction or repairs to immediately-needed equipment or facilities where delay would result in overall higher expenditures or cause the Institution to lose revenue due to not providing the services responsible for, but is not limited to, medical treatment and education.
Emergency contracting procedures may include sole sourcing or competitive quote bids.
The Vice President of Administration must be contacted in advance for prior written approval, unless time does not permit, and human life, health, safety, or property is in IMMEDIATE danger. In the case of immediate danger, the Vice President of Administration’s approval must be obtained in writing at the earliest practical date by e-mail or fax. Upon approval, the campus can process the bid and award of the contract. The following documentation is required when submitting an emergency contract for approval:
Written justification setting forth the circumstances of the emergency. Insurance Certificate
Performance and Payment Bond issued in accordance with Arkansas laws and rules. The bond must be filed in the county where the work is to be performed.
List of subcontractors as required under Arkansas Code Annotated §22-9-204.
Contractor must be properly licensed with the Contractor’s Licensing Board (refer to Arkansas Code Annotated §17-25-101 et Seq. (Appendix 18)
Any other applicable document required by law or rule including but not limited to EO 98-04 (Disclosure).
All drawings and the project manual on engineering projects which exceed $25,000 and architectural projects which exceed $100,000 shall be stamped, sealed, and signed by the appropriate Design Professional Arkansas Code Annotated §22-9-101 (Appendix 19).
Sole source on capital improvements will be approved only when there are no other sources to perform the required work. This does not relieve the statutory requirements for license, insurance and bonds, nor the requirements to comply with Arkansas Code Annotated §22-9-101.
The following documentation is required when submitting a contract on capital improvements for approval:
A written request from the institution’s authorized official to the Vice President for Administration setting forth the circumstances which justify the sole source request.
List of subcontractors as required under Arkansas Code Annotated §22-9-204 (Appendix 20).
Contractor must be licensed by the Arkansas Contractor’s Licensing Board if dollar amount is $20,000.00 or over pursuant to Arkansas Code Annotated §17-25-101 et Seq.
Any other applicable document required by law or rule including, but not limited to EO 98-04.
All drawings and the project manual on engineering projects which exceed $25,000 and architectural projects which exceed $100,000 shall be stamped, sealed, and signed by the appropriate Design Professional Arkansas Code Annotated §22-9-101.
In instances where the campus has not contracted for the administrative services of a design professional, the institution is responsible for performing those duties which include all phases from bidding to closeout of the project.
Before the institution shall advertise for bids for construction, all requirements shall be met pursuant to the General Accounting and Budgeting laws and other applicable laws.
Certification of Project Amount: Institutions must have sufficient appropriations and funds for the capital improvement project prior to the solicitation of bids. Institutions are responsible for verification or receiving approval of any Methods of Finance or any sufficiency of funds institutions must certify that the appropriated amount for the award of the contract. The amount certified on the project general information sheet is the amount appropriated as defined in Arkansas Code Annotated §22-9-203(h) (Appendix 21).
Institutions, through their Design Professional, shall ensure adequate numbers of plans and specifications be made available to prospective bidders. It is recommended that one set of specifications and half-sized drawings be provided to the institution within three (3) days of advertisement, or in the case of an emergency or sole source contract prior to the issuance to bidders.
All drawings and the project manuals shall be stamped, sealed, and signed by the appropriate design professional pursuant to Arkansas Code Annotated §22-9-101. No drawing used for the construction project shall be allowed on the site stamped or otherwise marked as “Not for Construction” or any other similar term. The Contractor will maintain a set of “approved for construction” drawings on the job site at all times.
Once the plans and specifications have been given final approval by the institution, advertising and award procedure shall be according to Arkansas Code Annotated §22-9-203 and Arkansas Code Annotated §19-4-1405 (Appendix 22).
While pre-bid conferences are recommended, they are not mandatory unless so designated in the plans and specifications. Should the institution decide that one is to be conducted, it should be held at a time and place after the initial advertisement has been published. Design Professionals shall conduct the meeting and inform all prospective bidders on the project requirements, special conditions and any other unique bidding requirements.
All bids shall be submitted in a sealed envelope. Bidders shall comply with
Arkansas Code Annotated Code §22-9-204
and the bid documents with respect to the listing of subcontractors. Every envelope should indicate the name of the bidder, project, number, date, and time of opening. Bidders utilizing a shipping courier (such as FedEx, UPS, etc.) should enclose the bid in an inner envelope with the above stated information listed. Upon receipt at the institution, or an approved alternate site, each bid shall be date and time stamped and held in a secure place until bid opening. No bid may be surrendered to any person after it has been submitted except upon written request and authorization from that bidder.
Any or all addenda will be acknowledged on the bid form and such acknowledgment shall be stated during the reading of the bids. Failure by the bidder to acknowledge all addenda shall be considered as a non-responsive bid. Every effort should be exerted to eliminate addenda. If addenda are necessary they should be issued as soon as possible, but in any event not later than twenty four (24) hours before receiving the bids. An addendum which only sets a later bid date or time, or both, shall not be deemed to be non-responsive. In the event an addendum requires changes in scope of the project, an appropriate extension of the bidding period should be granted.
Late Bids, Modifications, or Withdrawals
Late Bids: All bids received shall be recorded by date and time on the sealed bid envelope. Any bid received at the office designated in the solicitation after the time specified of the receipt will not be considered (unless it was sent by registered or certified mail not later than the fifth calendar day prior to the date specified for receipt of bids, or unless it is determined that the late receipt was due solely to mishandling by the institution after receipt at the office designated on the invitation).
Modifications of Bids: Bidders may submit written modifications to their bids at any time prior to the exact time set for receipts of bids. Modifications may be made on the bidder’s envelope. No modifications made shall show the base bid amount. The bidder must sign any modification.
Withdrawal of Bids: Withdrawal of bids by fax or in person may be made, but only if the withdrawal is made prior to the exact time set for receipt of bids.
The only acceptable evidence for receipt of late bids, modifications or withdrawals is:
The date of mailing of a late bid, modification or withdrawal sent either by registered or certified mail is the U.S. Postal Service, UPS, or FedEx postmark on the outside envelope/package or on the original receipt from the U.S. Postal Service, UPS, or FedEx. If neither postmark shows a legible date, the bid shall be deemed to have been mailed late (the term “postmark” means a printed, stamped, or otherwise placed impression that is readily identifiable without further action as having been supplied and affixed on the date of mailing by employees of the U.S. Postal Service, UPS, or FedEx).
The time of receipt at the institution is the time/date stamp of such institution on the bid wrapper or other documentary evidence of receipt maintained by the institution.
At the time of opening of bids each bidder will be presumed to have read and to be thoroughly familiar with the plans and contract documents, including the addenda. Failure to do so is solely at the bidder’s risk. The failure or omission of any bidder to examine any form, instrument or documents shall in no way relieve any bidder from any obligation in respect to his bid pursuant to Arkansas Gross Receipt Tax Rules. Bidders on capital improvement projects which are not tax exempt and successful bidders cannot avoid sales or use taxes for whom they are performing work for.
Additions To or Deletions From the Documents
All deletions, changes, additions, or alterations of the bid documents will be acknowledged and read aloud. If such modifications are not waived, the bid shall be declared non-responsive and rejected. Corrections or change of figures must be noted and unless initialed by authorized officials, shall be sufficient grounds for rejection.
Authority for Opening Bids
The responsibility for the supervision of opening bids is with the Procurement Official of each institution. The person authorized to read shall first check the bid documents to determine if the bid is totally responsive. Items determining responsiveness include but are not limited to: Bid Form is complete, applicable bid security in the correct amount, and if a bid bond is utilized as bid security, the agent’s power of attorney as his authority shall be enclosed bid amount (numerically shown), proper signatures, addenda acknowledgement, corrections or changes initialed, and applicable subcontractors listed. Contractors submitting a bid must be licensed in accordance with the Contractor’s Licensing Board. If all documents appear to be properly submitted and executed, the official may proceed to read the bid. If any statutory formality is omitted, the bid should be declared non-responsive and remain unread. Formalities other than statutory may be waived.
Bid Opening and Recording
Bids shall be opened and read by the Procurement Official of each institution or by the authorized/contracted design professional at the designated time and place. The Procurement Official is responsible for establishing the official expiration of time. In those instances where it is not practical or possible to attend the bid opening, the Procurement Official may delegate this authority to a representative of the Owner.
Bids may be opened in any order, but if listed on a prepared tabulation, they should be opened in such order. Design Professionals shall prior to the award of the contract furnish to the Procurement Official a certified tabulation of bids. Certification of licensure and bid security is the responsibility of the Design Professional or the institution Procurement Official depending on which entity is conducting the bid opening.
Bid tabulations must contain the following information which includes but is not limited to: the date and time of the bid opening; the project number; the amount of the bid; the contractor names; whether a bid security was included along with the bid, security amount, and the listing of any applicable subcontractors. Certification of the bid tabulation is the responsibility of the Design Professional. Determination of the lowest responsible bidder is the responsibility of the institution’s Procurement Official or an approved representative of the Owner.
Rejection of a bid due to scrivener error may be made pursuant to Arkansas Code Annotated §19-4-1405. The criteria under this law must be met before a bidder may receive relief including but not limited to serving written notice to the institution’s chief executive officer or his or her designee any time after bid opening, but no later than seventy-two (72) hours after receiving the intent to award, excluding Saturdays, Sundays, and holidays.
Pursuant to Arkansas Code Annotated §17-25-101 et seq., each contractor including is required to be properly licensed with the Contractor’s Licensing Board and should indicate on his bid form the current license number as issued by the applicable licensing entity. This license is only required on projects of $20,000.00 or more. Failure to list a current contractor’s license will be cause for rejection. Nothing in this section shall be construed to limit the authority of Arkansas Code Annotated §17-25-315 (Appendix 23).
Each campus is responsible for verifying the contractor and subcontractor’s license through the Arkansas Contractors Licensing Board. To confirm the license is valid, access the Licensing Board website at: http://www.arkansas.gov/clb/search.php. Enter the information requested and submit for a record search. Print the results and retain to document the verification.
E-mail: contractors.licensing.board@arkansas.gov
Alarm System License
Arkansas Code Annotated §17-40-305 (Appendix 24)
. This license is required on all projects that require this type of work.
Asbestos License/Certification
Arkansas Code Annotated §20-27-1006 (Appendix 25)
Arkansas Department of Environmental Quality (ADEQ) Air Division
Asbestos and Lead-Based Paint Branch
North Little Rock, AR 72218-5317
(501) 682-0718
All bids received shall be accompanied by a bid security for all bids exceeding $20,000. Acknowledgement of the bid security shall be made aloud. The official reading of the bids shall indicate the bid security amount, the form of security as either a cashier’s check or a bid bond. The official shall review and verify the bid security including but not limited to applicable agent licensure and power of attorney. Arkansas Annotated Code §19-4-1405 and §22-9-203 and §22-9-401 et seq. (Appendix 26) govern bid securities for capital improvements.
Failure to execute the contract, submit and file an acceptable payment and performance bond, obtain proof of liability insurance, provide illegal immigration certifications and disclosure documents pursuant to EO 98-04, within the time specified in the bid documents after the intent to award has been issued to the bidder shall be just for cancellation of the award and forfeiture of the bid security which shall become to property of the institution, not as a penalty but in liquidated damages sustained. Award may then be made to the next lowest responsible bidder, or the work may be rebid and constructed under contract or otherwise as the institution determines. The responsible low bidder who fails to execute the Contract will not be considered for an award of any contract or any subsequent bid of that project.
The listing of subcontractors on the form of proposal shall be made pursuant to
and the bid documents. The designated official of the institution shall be responsible for verifying the licenses of the applicable subcontractors listed.
Announcing Low Bidder
Until such time as the bids have been reviewed and certified, any announcement or reference to low bidder will use the phrase “apparent low bidder.” Contract awards should not be made on the day of bid opening except in special cases.
In the event no responsive bids are received or the bidders are deemed not responsive, or both, and it is determined that further solicitation of bids would be futile, the contract may be awarded to any available qualified contractor upon approval by the institution’s Procurement Official.
Pursuant to Arkansas Code Annotated Code §22-9-203, in the event that all bids submitted exceed the amount appropriated for the award of the contract and if bidding on alternates was not required by the plans and specifications, the institution shall have the authority to negotiate an award with the apparent responsible low bidder but only if the low bid is within twenty-five percent (25%) of the amount appropriated.
If the plans and specifications for the project require bids on alternates in addition to a base bid, there shall be no more than three (3) alternates, and the alternates shall:
Be deductive; and
Be set forth in the plans and specifications in numerical order.
If all bids submitted exceed the amount appropriated for the award of the contract, then the institution may determine the apparent responsible low bidder by deducting the alternates in numerical order.
E. Trench or Excavation Safety Systems
Campuses shall adhere to Arkansas Code Annotated §22-9-212 (Appendix 27) in regards to trench or excavation safety systems.
F. Davis-Bacon Act (Federal Funds)
If federal funds are applied to the project, then the standard Davis-Bacon contract clauses found in 29 5.5(a) should be included in bid documents and resultant covered construction contracts that are in excess of $2,000 for construction, alteration or repair (including painting and decorating); this is regardless of the amount of federal funding or assistant, unless specifically exempt from these provisions by the federal funding agency. The advertisement should state that federal funds are applied to the project and that Davis-Bacon Prevailing Wage Rates and other related acts do apply. The applicable Davis-Bacon wage determinations should also be included in the bid documents to allow the bidders to accurately estimate labor and construction costs.
Please see section IX. Award of Contract (B) of these capital construction policies and procedures for more guidance and information regarding Davis-Bacon.
DOL Prevailing Wage Resource Book (October 2010) http://www.dol.gov/whd/recovery/pwrb/toc.htm
G. Arkansas Prevailing Wage Rates
On state-funded or other non-federally funded capital improvement projects, wage determinations shall be published pursuant to Arkansas Code Annotated §22-9-301 et seq. (Appendix 28). The advertisement of the notice for such projects and the invitations for bids shall state that state funds are being used and that the State Wage Determinations shall apply.
H. Payment and Performance Bond
Performance and Payment Bonds are not required for bids $20,000 or under. For work exceeding $20,000, the bidder shall furnish a Performance and Payment Bond in the amount equal to 100 percent of the contract price, on a form identical to the Arkansas Statutory Performance and Payment Bond Form (Appendix 29) as security for faithful performance of the Contract and payment of all obligations arising thereunder within ten days after receipt of the Intent to Award. The bond shall be written by a surety company qualified and authorized to do business in the State of Arkansas. The bond shall be executed by a resident agent or non-resident agent and shall be licensed by the Insurance Commissioner to represent the surety company executing the bond and filing with the bond the agent’s Power of Attorney as his authority. The bond shall be written in favor of the Owner. Bidder shall file and record the bond with the Circuit Clerk in the county where the Work is to be performed. Failure to deliver said bonds, as specified, shall be considered as having abandoned the Contract and the bid security will be retained as liquidated damages. The bidder shall include in the bid the Performance and Payment bond amount so that the bid represents the total cost to the Owner of all work included in the contract. All bonds shall be issued to the “Board of Trustees of the University of Arkansas” not the campus where the contract is performed.