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Bid Opening and Award Federally-funded Highway and Bridge Public Improvement Construction/Maintenance Projects

Bid Opening and Award Federally-funded Highway and Bridge Public Improvement Construction/Maintenance Projects. Presented by Marie Wright, ODOT Procurement December 4, 2009. Overview–Role of ODOT Procurement Office.

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Bid Opening and Award Federally-funded Highway and Bridge Public Improvement Construction/Maintenance Projects

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  1. Bid Opening and AwardFederally-funded Highway and Bridge Public Improvement Construction/Maintenance Projects Presented by Marie Wright, ODOT Procurement December 4, 2009

  2. Overview–Role of ODOTProcurement Office • Oversee the advertisement, bid and award of STIP (Statewide Transportation Investment Plan) Projects. • Ensure compliance with Federal and State laws, and Oregon Administrative Rules. • Ensure a competitive and fair bidding process. • Administer ODOT’s Electronic Bidding system for construction contracts. ODOT Procurement Office - Construction

  3. Cont. Overview–Role of ODOTProcurement Office • Prequalify contractors for ODOT work. • Review bids for responsiveness/ responsibility. • Communicate award or rejection information. • Handle bid protests. • Issue Notice to Proceed. • Coordinate BOLI Fee payments on behalf of ODOT. ODOT Procurement Office - Construction

  4. Overview - Applicable Laws, Rules, Specifications Local Agency Guidelines Manual http://www.oregon.gov/ODOT/HWY/LGS/Certification.shtml ODOT Follows These Federal Requirements & Guidelines: • United States Code • Code of Federal Regulations • FHWA Contract Core Curriculum Participant’s Manual & Reference Guide 2006 ODOT Follows These State Laws • Oregon Revised Statutes (ORS) 279 A, C ODOT Procurement Office - Construction

  5. Overview – Competitive Bidding • Federal Code - Construction contracts are to be awarded competitively to the contractor submitting the lowest responsive bid (23 U.S.C 112). • State Law - All public improvement contracts are based upon competitive bids (ORS 279C.335). • Exceptions to Competitive bidding require ODOT Director approval and oversight by FHWA. • Emergency Projects (declared emergencies) are exempted from competitive bidding requirements although competition is encouraged to the extent possible. ODOT Procurement Office - Construction

  6. Scheduling of Bid Opening Dates • ODOT has reached agreement with the construction contracting industry to consider these factors when scheduling bid openings and projects: • Careful scheduling of projects to ensure strong competition. • Twice monthly bid openings, typically the 2nd and 4th Thursdays of the month. Occasional Tuesday bid openings. • Avoid placing too many projects at one bid opening, or too many projects of the same type (i.e. bridges, paving, etc.). This could result in diluting number of bidders, resulting in poor competition. ODOT Procurement Office - Construction

  7. Bid Opening Day • Federal regulation requires all bids to be opened publicly and announced either item-by-item, or by total amount. ODOT reads total amounts. (23 CFR 635.113) • Oregon Statute: Bids must be “opened publicly by the contracting agency immediately after the deadline for submission of bids.” (ORS 279C.365(2)(c); • Oregon Administrative Rule (OAR731-005-0600) ODOT shall publicly open Bid or Proposal Price Offers. ODOT Procurement Office - Construction

  8. Bid Opening Bid / Price Analysis /Review (7 days) Rejection of individual bidder Bids 10% or more over Engineer’s Estimate. Justification to award / Input from local agency / Regions Confirmation of funding Notice of Intent to Award (3 day Protest Period) Protests, Lawsuits Award Approval (3-4 days) -ODOT Deputy Director, OTC, FHWA Unresolved issues i.e. permits, agreements, personal services, etc. Bonding, Insurance, execution of contract. (1 - 2 weeks) Notice to Proceed Progression from Bid Opening to Notice to Proceed ODOT Procurement Office - Construction

  9. ODOT’s Bid Review Process Office of Project-letting • A Cost Analysis is performed to determine if price is best value to public. Factors considered include: • Comparison of prices to historical price data. • Current market conditions and workloads to determine fair market value. • Number of bids and comparison of prices in range with other bidders. • Assessment and identification of any apparent mathematical and/or material unbalancing by the bidders. • Flawed Procurement. Identification of issues that may cause the procurement to be considered flawed (i.e. missing, incorrect, or poorly defined bid items, significant quantity errors, etc.). ODOT Procurement Office - Construction

  10. ODOT’s Bid Review Process (cont.) ODOT Procurement Office-Construction Review bids for responsiveness and responsibility. • A responsive bid is one that meets all the requirements of the advertisement and proposal. • A responsible bidder is one who is physically organized and equipped to complete the contract (i.e. has available the appropriate financial, material, equipment, facility and personnel resources and expertise). ODOT Procurement Office - Construction

  11. Checkpoints for Responsiveness / Responsibility • Prequalification: • Must be pre-qualified in class of work 10 days prior to bid opening. (ORS 279C.430; OAR 731-005-0450; OAR 734-010; Oregon Standard Specs 00120.00) • Affiliations / ownership: (collusion) • TERO (Tribal Employment Rights Office): • Contractor must be certified prior to bidding on projects on or near Umatilla Indian Reservation (23 USC 140; 23 CFR 635.117) (http://www.oregon.gov/ODOT/CS/OPO/construction/docs/TEROcontractors2005wo.pdf ODOT Procurement Office - Construction

  12. Checkpoints for Responsiveness / Responsibility (cont.) • Construction Contractor Board (CCB) License • Required prior to bid for state funded; prior to execution of contract for federally-funded (23 CFR 635.110(b)(c); ORS 279C.365(1)(k); ORS 701.055; ORS 671.530; Oregon Standard Specs 00130.40 (d)) • Secretary of State Business Registry • Required prior to execution of contract for federally-funded (23 CFR 635.110(b)(c); Oregon Standard Specs 00130.40 (d)) ODOT Procurement Office - Construction

  13. Potential Causes for Delays in Award or Notice to Proceed Protests • An adversely affected Offeror may submit to ODOT a written protest of award within three working days after issuance of Notice of Intent to Award (OAR 731-005-0690). • Most common protest issues include: • DBE Goal • Subcontractor Disclosure form • Unbalancing of bid items • Prequalification ODOT Procurement Office - Construction

  14. Potential Causes for Delays in Award or Notice to Proceed (cont.) Disqualification Under certain circumstances, a company can be disqualified from bidding with ODOT for up to a period of 3 years (ORS 279C.440): • Conviction under state or federal antitrust statutes. • Violation of contract provision that is regarded by ODOT to be so serious as to justify disqualification. • DBE infractions. • Does not carry workers’ compensation or unemployment insurance. ODOT Procurement Office - Construction

  15. Notice of Award and Notice to Proceed • After all bids have been reviewed, award is approved by ODOT Deputy Director, or Oregon Transportation Commission. Some projects require concurrence by Federal Highway Administration. • Contract is executed by all parties and a Notice to Proceed with construction is issued to the Contractor. ODOT Procurement Office - Construction

  16. ODOT Construction Contracts Contact Information Wynnette Gentemann, Manager Procurement Oversight & Construction Contracts (503) 986-2987 Wynnette.gentemann@odot.state.or.us Marie Wright, Leadworker Construction Contracts Unit (503) 986-2737 marie.a.wright@odot.state.or.us Fax: (503) 986-6910 Website: http://www.oregon.gov/ODOT/CS/CONSTRUCTION/ ODOT Procurement Office - Construction

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