103AWARD AND EXECUTION OF CONTRACT

14 ALASKA 2020 SECTION 103 AWARD AND EXECUTION OF CONTRACT

103-1.01CONSIDERATI ON OF BIDS. After the bids are opened and read, the bids will be

mathematically checked and compared on the basis of the sum of the products of the bid schedule quantities and the unit bid prices. The unit bid prices govern if there is an error in extending the unit bid prices, or in totaling the extensions, or if an extension is missing. The results of the bid comparisons will be made available to the public as soon as practicable. Until the Award, the Department may reject any or all bids, waive minor informalities or advertise for new bids without liability to any bidder if the Department, in its discretion, determines that to do so is in the best interests of the State. A bidder may request withdrawal of a bid after opening and before the Award only in accordance with AS 36.30.160(b) and State procurement regulations. Submit the request to the Contracting Officer. An interested party, as defined in AS 36.30.699, may protest a proposed Award of contract as per AS 36.30.560 and AS 36.30.565. Submit the protest to the Contracting Officer. WHOLLY ST ATE-FUNDED PROJECTS. On wholly state- funded projects, determination of the low bidder will include bidder preferences as required under AS 36.30.321, according to subsections 1- 3 below. Alaska Bidder Preferences, Alaska Veteran Preference, and Alaska Prod uct Preference are not applicable on projects with federal funding.

Alaska Bidder Preference Certification, certifying they qualify as an Alaska bidder eligible for Alaska Bidder Preference according to AS 36.30. If the bidder qualifies as an Alaska Bidder, a five percent (5%) preference will be applied to the price of the bid. "Alaska bidder" means a person who:

person's current Alaska business license;

proprietorship and the proprietor is a resident of the state, is a limited liability company organized under AS 10.50 and all members are residents of the state, or is a partnership under former AS 32.05, AS 32.06, or AS 32.11 and all partners are residents of the state; and

Veteran Preference Certification, certifying they qualify as an Alaska bidder eligible for Alaska Veteran Preference according to AS 36.30. If a bidder qualifies as an Alaska bidder and is a qual ifying entity, an Alaska Veteran Preference of 5 percent shall be applied to the bid price. The preference may not exceed $5,000 (AS 36.30.321). A “qualifying entity” means a:

15 ALASKA 2020 b. partnership under AS 32.06 or AS 32.11 if a majority of the partners are Alaska veterans;

Alaska veterans; or

A preference under this section is in addition to any other preference for which the bidder qualifies. To qualify for this preference, the bidder must add value by the bidder itself actually performing, controlling, managing and supervising a significant part of the services provided or the bidder must have sold supplies of the general nature solicited to other state agencies, governments, or the general public. An Alaska veteran is a resident of Alaska who:

States armed forces; or the Alaska Territorial Guard, the Alaska Army National Guard, the Alaska Air National Guard, or the Alaska Naval Militia; and

Alaska Products Preference Worksheet, according to the worksheet instructions, and submit the completed worksheet with their bid. Except for timber, lum ber and manufactured lumber products used in the construction project under AS 36.30.322(b), an Alaska products preference will be given as required under AS

36.30.326 - 36.30.332 when the bidder designates the use of Alaska products

If the successful bidder/contractor proposes to use an Alaska product and does not do so, a penalty will be assessed against the successful bidder/contractor according to AS

.330(a)

Each Alaska product declared on the Alaska Product Preference Worksheet must have an “App roval” date on the Alaska Product Preference Program List, that is on or before the bid opening date for this contract, and that does not expire before the bid opening date for this contract.

103-1.02SUBCONTRACT OR LIST. The apparent low bidder shall submi t a completed

Subcontractor List, Form 25D -5, within five working days following receipt of written notification by the Department that it is the low bidder. An apparent low bidder who fails to submit a completed Subcontractor List form within the time allowed will be declared nonresponsible and may be required to forfeit the bid security. The Department will then consider the next lowest bidder for award of the Contract. If a bidder fails to list a subcontractor, or lists more than one subcontractor for the same portion of work, and the value of that work is in excess of one- half of one percent of the total bid amount, the bidder agrees to perform that portion of work without a subcontractor and represents that it is qualified to perform that work. A bidder who lists as a subcontractor another contractor who, in turn, sublets the majority of the work required under the Contract, violates this subsection.

16 ALASKA 20 20 On federal -aid projects, subcontractors must obtain an Alaska business license and certificate of contr actor registration prior to award of the Contract. On wholly state- funded projects, all subcontractors listed by the Contractor shall have a valid Alaska business license and a valid certificate of registration as a contractor, as defined in AS

08.18, at the time the bid is opened. If a subcontractor listed by the Contractor does not have a

valid business license and certificate of registration at the time the bid is opened, the Contrac tor shall replace the subcontractor with a subcontractor that had a val id Alaska business license and a valid certificate of registration as a contractor under AS 08.18 at the time the bid was opened. A bidder or Contractor may, without penalty, replace a listed subcontractor who:

In addition to the circumstances described above, a Contractor may in writing request permission from the Department to add a new subcontractor or replace a listed subcontractor. The Department will approve the request if it determines in writing that allowing the addition or replacement is in the best interest of the State. A bidder or Contractor shall subm it a written request to add a new subcontractor or replace a listed subcontractor to the Contracting Officer a minimum of five working days before the date the new subcontractor is scheduled to begin work on the construction site. The request must state the basis for the request and include supporting documentation acceptable to the Contracting Officer. If a bidder violates this subsection, the Contracting Officer may:

percent of the value of the subcontract at issue.

103-1.03AWARD OF CO NTRACT. The Department will award the Contract to the lowest

responsible and responsive bidder unless it rejects all bids. The Department will notify all bidders in writing via email, fax, or U.S. Mail of its intent to award. The Department will notify the successful bidder in writing of its intent to award the Contract and request that certain required documents, including the Contract Form, bonds, and insurance be 17 ALASKA 2020 submitted within the time specified. The successful bidder's refusal to sign the Contract and provide the requested documents within the time specified may result in cancellation of the notice of intent to award and forfeiture of the bid security. If an award is made, it will be made as soon as practicable and usually within 40 days after bid opening. Award may be delayed due to bid irregularities or a bid protest, or if the award date is extended by mutual consent. Bids shall be valid for 120 days after bid opening, and may be extended by mutual consent.

103-1.04RETURN OF B ID GUARANTY. The Department will return bid guaranties, other than

bid bonds:

103-1.05PERFORMANCE AND PAYMENT BONDS . The successful bidder shall furnish all

required Performance and Payment Bonds on forms provided by the Department for the sums specified in the Contract. If no sum is specified, the successful bidder shall comply with AS 36.25.010. The Surety on each bond may be any corporation or partnership authorized to do business in the state as an insurer under AS 21.09 or two individual sureties approved by the Contracting Officer. If individual sureties are used, two individual sureties must each provide the Department with security assets located in Alaska equal to the penal amount of either the performance bond or the payment bond. Any costs incurred by the Contractor and the individual Surety are subsidiary and shall be borne by the Contractor or the individual Surety. In no event will the Department be liable for these costs. Individual sureties shall provide security by one, or a combination, of the following methods:

Acceptable securities include, but are not limited to, cash, treasury notes, bearer instruments having a specific value, or money market certificates.

with the Department named as beneficiary.

institutions approved by the Contracting Officer. These bonds and security assets, as applicable, shall remain in effect for 12 months after the date of final payment or, if longer, until a ll obligations and liens under this Contract are satisfied, including, but not limited to, obligations under Subsection 107- 1.19. The Department may, in its discretion, notify the bonding company or Surety of any potential default or liability. The Contractor shall substitute, within five working days, another bond or surety acceptable to the Department if an individual Surety or the Surety on any bond furnished in connection with the Contract:

18 ALASKA 20 20 When approved by the Contracting Officer, the Contractor m ay replace:

Failure to maintain the specified bonds or to provide substitute bonds when required under this section may be grounds for withholding contract payments until substitute bonding is obtained, and may, in the Department's discretion, be grounds for declaring the Contractor in default.

103-1.06INSURANCE R EQUIREMENTS. The Contractor shall provide evidence of insurance

with an insurance carrier or carriers satisfactory to the Department covering injury to persons and property suffered by the State of Alaska or by a third party as a result of operations under this contract by the Contractor or by any subcontractor. The Contractor's insurance shall provide protection against injuries to all employees of the Contractor and the employees of any subcontractor engaged in work under this Contract. All insurance policies shall be issued by insurers that (1) are permitted to transact the business of insurance in the State of Alaska under Title 21 of the Alaska Statutes and (2) have a financial rating acceptable to the Department. A certificate of insurance must be furnished to the Department prior to award. The certificate of insurance must provide for notice of cancellation or non- renewal in accordance with policy provisions. Where specific limits and coverages are shown, it is understood that they shall be the minimum acceptable. The requirements of this subsection shall not limit the Contractor’s indemnity responsib ility under Subsection 107- 1.13. Additional insurance requirements specific to this contract are contained in the Special Provisions, when applicable. The Contractor shall maintain the following policies of insurance with the specified minimum coverages an d limits in force at all times during the performance of the Contract:

engaged in work under this Contract. The Contractor shall be responsible for Workers' Compensation Insurance for any subcontractor who performs work under this Contract. The coverage shall include:

policy limit;

Alaska;

$1,000,000, whenever the work involves activity from or on a vessel on navigable water.

contractual liability and products-completed operations, with combined single limits not less than:

19 ALASKA 2020 d. $2,000,000 Products -Completed Operations Aggregate.

not less than $1,000,000 each occurrence.

or excess liability. Umbrella or excess policy shall include products -compl eted operations coverage and may be subject to $5,000,000 aggregate limits. Further, the umbrella or excess policy shall contain a clause stating that it takes effect (drops down) in the event the primary limits are impaired or exhausted. The State of Alas ka shall be named as an additional insured on policies required by items 2 thru 4 above. All of the above insurance coverages shall be considered to be primary and non- contributory to any other insurance carried by the State of Alaska, whether through self -insurance or otherwise. In any contract or agreement with subcontractors performing work, the Contractor shall require that all indemnities and waivers of subrogation it obtains, and any stipulation to be named as an additional insured it obtains, shall a lso be extended to waive rights of subrogation against the State of Alaska and to add the State of Alaska as an additional named indemnitee and as an additional insured. The apparent low bidder shall furnish evidence of insurance to the Department before a ward of the Contract. The evidence shall be issued to the Department and shall be either a certificate of insurance or the policy declaration page with all required endorsements attached and must:

Provide that the Department shall receive written notice of cancel lation or non- renewal in accordance with policy provisions. The Department’s acceptance of deficient evidence of insurance does not constitute a waiver of Contract requirements. Failure to maintain the specified insurance or to provide substitute insurance if an insurance carrier becomes insolvent, is placed in receivership, declares bankruptcy, or cancels a policy may be grounds for withholding Contract payments until substitute insurance is obtained, and may, in the Department's discretion, be sufficient grounds for declaring the Contractor in default.

103-1.07EXECUTION A ND APPROVAL OF CONTR ACT. The successful bidder shall execute

and return the Contract Form and all other required documents to the Department within the time specified, or within 15 days after receipt by the bidder if no time is specified. A contract is awarded only after it has been signed by the Contracting Officer.

103-1.08FAILURE TO EXECUTE CONTRACT. If the successful bidder fails to appropriately

execute and return the Contract Form and ot her documents within time specified, as required above, the Department may cancel the intent to award and keep the bid guaranty. The Department will then, in its discretion, award the Contract to the next lowest responsive and responsible bidder or readver tise the work.

20 ALASKA 20 20 103-1.09 ORAL STATEM ENTS. The written terms of the Contract are binding. No oral statement of any person shall, in any manner or degree, modify or otherwise affect, change, or amend the terms of the Contract.

103-1.10INTEGRATED CONTRACT. This Contract is an integrated document and contains the

complete agreement and understanding of the parties. There are no unwritten agreements or understandings between the parties. Changes ordered or agreed upon, Directives given, or Equitable Adjustments issued under this Contract, and all other matters affecting the Contract, must be in writing in order to be binding and effective.

21 ALASKA 2020 SECTION 104 SCOPE OF WORK

104-1.01INTENT OF C ONTRACT. The intent of the Contract is to provide for the construction

and completion of every detail of the described work. The Contractor shall furnish all labor, material, supervision, equipment, tools, transportation, supplies, and other resources required to complete the work in the time specified and in accordance with the Contract. The Contractor is responsible for the means, methods, techniques, sequence, and procedures of construction, safety, and quality control, and is responsible to perform and furnish the work in accordance with the Contract documents and any applica ble federal, state, and local laws, rules, regulations, and ordinances.

104-1.02CHANGES

Contract at any time, and without notice to sureties, including altering, orderi ng additions to, or ordering deletions of quantities of any item or portion of the work. These changes shall be made by a written Change Order and shall not invalidate the Contract or release the sureties.

work, the Contractor shall perform the work at the original contract measurement methods and prices, subject to the provisions of Subsection 109- 1.04.

Contract, a new Contract Item will be established, and an equitable adjustment to Contract price and Contract time shall be calculated by one of the following methods:

Contract time, and the Engineer issues a change order for the described work;

adjustment to contract price and contract time, calculated by time and materials basis under Subsection 109- 1.05, and the Engineer issues a change order for the work. The Contractor shall keep complete daily records of the cost of such work; or

proceed with the work with an adjustment to the payment amount or Contract time based on the Engineer's estimate of reasonable value. The Contractor shall keep complete daily records of the cost of such work.

under Subsection 109- 1.09.

Contract shall be made only by Supplemental Agreement issued in accordance with AS

and the State’s procurement regulatio ns. Additional bonding or insurance may be

required.

which there is no established Contract price will be written, the Contractor shall submit detailed cost or pricing data regarding the changed work. The cost or pricing data shall include an itemization of production rates and all costs including labor, materials, and equipment required for the work. The Contractor shall certify that the data submitted are, to the best of its knowledge and belief, accurate, complete, and current as of a mutually agreed date and that the data will continue to be accurate and complete during the performance of the changed work.