Three-Bid Process (For Non-profit grantees only) Non-profit grantees must attempt to obtain bids before awarding a contract on a grant-funded project for services (greater than $5,000), and for construction work (greater than $25,000), thus ensuring state funds are spent responsibly. Process: Non-profit grantee attempts to obtain three bids for services (greater than $5,000) and for construction work (greater than $25,000). To ensure that bidders understand the required project elements, the non-profit grantee provides each bidder (potential contractor) the same written invitation for bid describing the project work to be performed based on “Best Value” factors, and the required project elements based on the Grant Scope/Cost Estimate Form, and concept level site plan. Solicit bids by contacting at least three potential contractors or by invitation for bids advertising, or a combination of both methods. The non-profit grantee’s Board of Directors evaluates the bids to determine which contractor will provide the “best value” and will meet project requirements. “Best value” should be determined by price, quality of materials, equipment, and workmanship. The evaluation process must ensure no conflict of interest between the contractor and the non-profit grantee’s Board of Directors. The non-profit grantee’s Board of Directors need not necessarily accept the lowest bid, but a reasonable justification for the decision should be recorded in writing. The Board of Directors selects a contractor and awards a contract. For audit purposes, the grantee keeps records of Steps 1 – 4 above. Waiver of Three-Bid Requirement The non-profit grantee may request a waiver of the three-bid process requirement. To request a waiver, the grantee must send a written request to the project officer assigned to the grant project and explain why a waiver is required. ELIGIBLE AND INELIGIBLE COSTS non-construction costs include expenses incurred prior to ground breaking, as well as costs associated with grant administration. No more than 25% of the grant amount may be spent on non-construction costs. Additionally, if the Grantee committed match for this project, these costs are not eligible for reimbursement.
Audit Checklist An audit of the project may be performed before or following project completion. Listed below are some of the items the auditor will examine during the review. The grantee must have these records available in a central location ready for review once an audit date and time has been confirmed. Contact DPR’s Audits Office at (916) 657-0370 for questions about audit requirements. CONTRACTS Summary list of bidders (including individual bid packages) Recommendation by reviewer of bids Awarding by governing body (minutes of the meeting/resolution) Construction contract agreement contract bonds (bid, performance, payment) contract change orders Contractor's progress billings Payments to contractor (cancelled checks/warrants, bank statements and EFT receipts, etc.**) Stop Notices (filed by sub-contractors and release if applicable) Liquidated damages (claimed against the contractor) Notice of completion (recorded) FORCE ACCOUNT LABOR* Authorization/work order identifying project Daily time sheets signed by employee and supervisor Hourly rate (salary schedules/payroll register) Fringe benefits (provide breakdown) IN-HOUSE EQUIPMENT* Authorization/work order Daily time records identifying the project site Hourly rate related backup documents CONTRACTS/MATERIALS/SERVICES/ EQUIPMENT RENTALS Purchase orders/Contracts/Service Agreements Invoices Payments (actual cancelled checks/warrants, bank statements and EFT receipts, etc.**) ACQUISITION Appraisal Report Did the owner accompany the appraiser? 10 year history Statement of just compensation (signed by seller) Waiver of just compensation (if purchased below appraisal: signed by seller) Final Escrow Closing Statement Cancelled checks/warrants, bank statements and EFT receipts, etc.** (payment(s) to seller(s)) Grant deed (vested to the participant) or final order of condemnation Title insurance policy (issued to participant) Relocation documents Income (rental, grazing, sale of improvements, etc.) INTEREST Schedule of interest earned on State funds advanced. Interest on grant advances is accountable, even if commingled in a pooled fund account and/or interest was never allocated back to the grant fund. AGREEMENT/CONTRACTS Leases, agreements, etc., pertaining to developed/acquired property DEFINITIONS Capitalized words and terms used in this procedural guide are defined below.