3 CONTRACT AWARD AND EXECUTION
3-1.01 General
Section 3 includes specifications related to contract award and execution .
3-1.02 Considerati On of Bids
3-1.02A General
For a lump -sum-based bid, the Department compares bids based on the total price. For a unit -price -based bid, the Department compares bids based on the sum of the item totals. For a cost -plus-time-based bid, the Department compar es bids based on the sum of the item totals and the total bid for time.
3-1.02B Tied Bids
The Department breaks a tied bid with a coin toss except:
1.If a small business bidder and a non –small business bidder request preferences and the reductions result in a tied bid, the Department awards the contract to the small business bidder.
2.If a DVBE small business bidder and a non -DVBE small business bidder request preferences and the reduction results in a tied bid, the Department awards the contract to the DVBE small business bidder.
3-1.03 Contractor Registration
No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.
3-1.04 Contract Award
Submit any bid protest to the Office Engineer before contract award . If the Department awards the contract, the award is made to the low est responsible bidder within the number of days shown in the following table: Contract Award Period Days after bid opening Project estimated cost shown on the Notice to Bidders 30 < $200 million 60 ≥ $200 million The Department may extend the specified award period if the Bidder agrees. You may request to extend the award period by faxing a request to (916) 227 -6282 before 4:00 p.m. on the last day of the award period. If you do not make this request, after the specified award period:
1.Your b id becomes invalid
2.You are not eligible for the award of the contract
3-1.05 Contract Bonds (Pub Cont Code §§ 10221 and 10222)
The successful bidder must furnish 2 bonds :
1.Payment bond to secure the claim payments of laborers, workers, mechanics, or materialmen providing goods, labor, or services under the Contract. This bond must be equal to at least 100 percent of the total bid.
2.Performance bond to guarantee the faithful performance of the Contract. This bond must be equal to at least 50 percent of the total bid. The Department provides bond forms to the successful bidder. SECTION 3 CONTRACT AWARD AND EXECUTION
3-1.06 Contractor License
For a federal -aid contract, the Contractor must be properly licensed as a con tractor from contract award through Contract acceptance (Pub Cont Code § 10164). For a non -federal -aid contract:
1.Contractor must be properly licensed as a contractor from bid opening through Contract acceptance (Bus & Prof Code § 7028.15)
2.Joint venture bidders must obtain a joint venture license before contract award (Bus & Prof Code § 7029.1)
3-1.07 Insurance Policies
The successful bidder must submit:
1.Copy of its commercial general liability policy and its excess policy or binder until such time as a policy is available, including the declarations page, applicable endorsements, riders, and other modifications i n effect at the time of contract execution. Standard ISO form no. CG 00 01 or similar exclusions are allowed if not inconsistent with section 7 -1.06. The allowance of additional exclusions is at the discretion of the Department.
2.Certificate of insurance showing all other required coverages. Certificates of insurance, as evidence of required insurance for the auto liability and any other required policy, must set forth deductible amounts applicable to each policy and all exclusions that are added by endor sement to each policy. The evidence of insurance must provide that no cancellation, lapse, or reduction of coverage will occur without 10 days prior written notice to the Department.
3.Declaration under the penalty of perjury by a CPA certifying the accou ntant has applied GAAP guidelines confirming the successful bidder has enough funds and resources to cover any self - insured retentions if the self -insured retention is over $50,000. If the successful bidder uses any form of self -insurance for workers comp ensation in lieu of an insurance policy, the Bidder must submit a certificate of consent to self -insure under Labor Code § 3700.
3-1.08 Small Business Participation Report
The Department has established an overall 25 percent small business participation g oal. The Department is tracking small business participation on all contracts to determine whether the goal is achieved. Complete and sign the Small Business (SB) Participation Report form included in the contrac t documents whether or not no small business participation is reported.
3-1.09 3-1.10 Reserved
3-1.11 Payee Data Record
Complete and deliver to the Office Engineer a Payee Data Record form when requested by the Department.
3-1.12 Reserved
3-1.13 Form F Hwa-1273
For a federal -aid contract, form FHWA -1273 is included with the Contract form in the documents sent to the successful bidder for execution. Comply with its provisions. Interpret the training and promotion section as specified in section 7 -1.11A.
3-1.14 3-1.17 Reserved
3-1.18 Contract Execution
The successful bidder must sign the Contract form. Deliver to the Office Engineer:
1.Signed Contract form, including the attached form FHWA -1273
2.Contract bonds
3.Documents identified in section 3 -1.07
4.Small Business (SB) Participation Report form SECTION 3 CONTRACT AWARD AND EXECUTION The Office Engineer must receive these documents before the 10th business day after the Bidder receives the contract. The Bidder's security may be forfeited for failure to execute the contract within the time specified (Pub Cont Code §§ 10181, 10182, and 10183). The following is a copy of the Contract form : SECTION 3 CONTRACT AWARD AND EXECUTION
3-1.19 Bidders' Securities
The Department keeps the securities of the 1 st, 2nd, and 3rd low bidders until the contract has been executed. The other bidders' securities, other than bidders' bonds, are returned upon determination of the 1st, 2nd, and 3rd low bidders, and their bidders' bonds are of no further effect (Pub Cont C ode § 10184).
Source: California Standard Specifications, 2024 Edition. Pages 35–38 of 1,372.