15 SECTION 103
103.01 Consideration of Proposals. After the proposals are opened and read, they will be compared on the
basis of the summation of the products of the approximate quantities shown in the proposal by the unit bid prices. The results of such comparisons will be immediately available to the public. In the event of a discrepancy between unit bid prices and extensions, the unit bid prices shall govern. The right is reserved to reject any or all proposals, to waive technicalities, or to advertise for new proposals, if in the judgment of the Department, the best interests of the State will be promoted thereby. The Department has determined that the reasonable minimum unit bid price per hour for “flagger” is $20.00 p er hour. Any bid proposal which includes Item No. 624 0110 , which is for “flagger” measured by the unit of hour, which is less than the minimum amount of $20.00 per hour will be adjusted up to the minimum amount by the Department. The bid item for “flagger” so adjusted will be considered the bidder’s bid and the bidder’s proposal will be recalculated and the revised total used to compare with other bids to determine the lowest responsible bidder. The unit bid price so adjusted is the amount the Department will pay for flagger.
103.02 Award of Contract. In order to meet the requirement prescribed under Section 112 (c) of Title 23,
United States Code, relative to the award of contracts, furnish with the proposal a sworn statement executed by or in behalf of the person, firm, association or corporation submitting the bid. Provide such sworn statement in the form in the contract documents and sworn to before such persons as are authorized by the laws of the State to administer oaths. In accordance with the provisions of NRS 338.147 for bidders preference, the Department will award the contract to the lowest responsible bidder with the following exception: A responsible bidder who at the time of submitting their bid has a valid Certificate of Eligibility to receive a preference in bidding on public works, issued to them by the State Contractor's Board, will be deemed to have submitted a better bid than a competing bidder who does not have such a valid certificate of eligibility if the amount of their bid is not more than 5% higher than the amount bid by the competing bidder. A copy of the Certificate of Eligibility shall be provided at the time of prequalification, and updated upon renewal of the Certificate. A copy of the Certificate shall be on file with NDOT no later than the Bid Opening time in order to receive a Bidder's Preference. In addition, a Preference Bidding Certification Affidavit required by NRS 338.147 shall be submitted at the time the contractor submits their bid. The award of the contract, if it be awarded, will be to the lowest responsible bidder whose proposal complies with all the requirements prescribed. The award, if made, will be made within 60 days after the opening of the proposals. The successful bidder will be notified by letter, mailed to the address shown on his proposal, that his proposal has been accepted and that he has been awarded the contract. The date of the award of the contract shall be the date of the “Notice of Award.”
103.03 Cancellation of Award. The Department reserves the right to cancel the award of any contract at any
time before the execution of said contract by all parties without any liability against the Department, except that the Department will reimburse reasonable expenses incurred in reliance upon the “Notice to Proceed.”
103.04 Return of Proposal Guaranty. All proposal guaranties, except those of the 2 lowest bidders, will be
returned following the checking of bids and the recommendation to award the contract has been approved. The retained proposal guaranties of the 2 lowest bidders will be returned when the contract has been fully executed by the bidder awarded the contract and satisfactory bond has been furnished.
103.05 Requirement of Contract Bond. The successful bidder shall, at the time of the execution of the
contract, furnish a surety bond or bonds in a sum equal to the full amount of the contract as a guaranty that he will complete the work under the terms of the contract. Such bond, or bonds, shall also provide and secure payment for all materials, labor and supplies, trucks and other means of transportation, used in, or upon, or about, or for the performance of the work contracted to be done, and for any work or labor done thereupon or incidental thereto. The bond or bonds shall be on the form provided in the proposal and shall be written by a surety approved by the Insurance Commissioner of the State of Nevada. In addition, sureties shall have a Best’s rating of “A–” or better according to A. M. Best Company. The power of attorney shall show the limiting amount authorized for issuance of 103 AWARD AND EXECUTION OF CONTRACT 16 bonds. Written appointment of agent of bonding company in and for the State of Nevada shall also be licensed, and approved by, the Insurance Commissioner. If electing to use more than one surety in securing the requi red performance bond, inform the Department, in writing, what the priority arrangements are between the sureties as well as who the designated lead surety will be. Provide this information at the time the contract is returned to the Department for final ex ecution.
103.06 Execution and Approval of Contract. The contract shall be signed by the successful bidder and
returned, together with the contract bond, within 20 days after the contract has been mailed to the bidder. If the contract is not executed by th e Department within 30 days following receipt from the bidder of the signed contract and bond, the bidder shall have the right to withdraw his bid without penalty. No contract shall be considered as effective until it has been fully executed by all the par ties thereto.
103.07 Failure to Execute Contract. Failure to execute the contract and file acceptable bonds and/or failure to
obtain a valid contractor’s license within 20 days after the contract has been awarded shall be just cause for the annulment of t he award and the forfeiture of the proposal guaranty which shall become the property of the Department, not as a penalty, but as liquidation of damages sustained. Award may then be made as provided in Subsection 103.02, or the work may be readvertised and constructed under contract or otherwise, as the Department may decide.
103.08 DBE and SBE Verification and Award Requirements. The Special Provisions will specify if this
Subsection applies to the contract, and if so, will identify the established DBE/SBE participation goal/percentage. The award of the contract, if it be awarded, shall be to the lowest responsible and responsive bidder meeting the DBE/SBE goals or who has made a good faith effort to do so as outlined in Subsection 102.16. The DBE/SBE information is subject to verification by the Department which may require additional information or clarification. The DBE/SBE in formation shall be placed on the “NDOT Bidder Disadvantaged Business or Small Business Enterprise (DBE/SBE) Information” form. Complete the form entirely with all the required information. Provide written confirmation letters and quotes from each DBE/SBE firm named on the “NDOT Bidder Disadvantaged Business or Small Business Enterprise (DBE/SBE) Information” form to meet the DBE/SBE goal, stating that they agree to perform the work committed to, for the price committed to on the form. This written confirma tion must be on the DBE/SBE firm’s letterhead and must be received by the Department no later than 5:00 p.m. local time on the next business day following the bid opening. If it is determined that the bidder has failed to meet the DBE/SBE requirements , the bidder will be provided an opportunity for administrative reconsideration prior to the award of the contract to the next apparent low bidder. As part of this reconsideration, the bidder will have the opportunity to provide written documentation or argum ent concerning the issue of whether they met the goal or made adequate good faith efforts to do so. The decision on reconsideration will be made by an official who did not take part in the original determination that the bidder failed to meet the goal or make adequate good faith efforts to do so. The bidder will have the opportunity to meet in person with the reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do so. A written decision on recons ideration will be sent to the bidder explaining the basis for finding that they did or did not meet the goal or make adequate good faith efforts to do so. The result of the reconsideration process is not administratively appealable to the Department. Failure by the Contractor to fulfill the DBE/SBE contract requirements and to demonstrate good faith efforts constitutes a breach of this contract. In such instance, the Department may:
a.Withhold progress payments or portion thereof;
b.Deduct as damages an amount equal to the unmet portion of the DBE/SBE commitment not achieved;
c.Remove the Contractor from the prequalified bidders list for repeated violations;
d.Suspend and debar for violations, falsifications, or misrepresentations;
e.Terminate t he contract; or
f.Refer the matter for criminal prosecution. 17 SECTION 104 SCOPE OF WORK
104.01 Intent of the Contract. The intent of the contract is to provide for the construction and completion in
every detail of the work described. Furnish all labor, materials, equipment, tools, transportation, and supplies required to complete the work according to the plans, specifications, and terms of the contract.
104.02 Changes in Character of Work and Differing Site Conditions. (a) Changes. The Engineer reserves
the right to make, in writing, at any time during the work, such changes in quantities and such alterations in the work as are necessary to satisfactorily complete the project. Such changes in quantities and alterations shall not invalidate the contract nor release the surety, and the Contractor agrees to perform the work as altered. The right is reserved to increase or decrease any or all of the items in the estimate of approximate quantities as shown in the proposal. Should any items contained in the proposal be found unnecessary for the proper completion of the work, written order may be given to eliminate such items from the contract, and such action shall in no way invalidate the contract. When a Contractor is notified of the elimination of items, actual work done and all costs incurred will be reimbursed, including mobilization of materials before said notification. The length of the project may be increased or decreased by adding or omitting sections or by relocation. Under no circumstances shall alterations of plans or of the nature of the work involve work beyond the termini of the proposed construction except as may be necessary to satisfactorily complete the project. Whenever the termini of the project are changed, a supplemental agreement acceptable to both parties to the contract shall be executed in advance of performing the affected work.
b.Significant Changes in the Character of Work. If the alterations or changes in quantities significantly change the character of the work under the contract, whether or not changed by any such different quantities or alterations, an adjustment, excluding loss of anticipated profits, will be made to the contract. The basis for the adjustment shall be agreed upon before the performance of the work. If a basis cannot be agreed upon, then an adjustment will be made either for or against the Contractor in such amount as the Engineer may determine to be fair and equitable. Any such price adjustment will be determined by documented proof of an increase or decrease in actual costs. Documentation for an increase in costs shall include a breakdown showing the basis of the unit bid price. Failure to give notification in writing of a change in character of work and subsequent performance of said work will be considered as a waiver thereof and payment will be made at the contract unit price for the actual quantity of the work performed. If the alterations or changes in quantities do not significantly change the character of the work to be performed under the contract, the altered work will be paid for as provided elsewhere in the contract. The term “significant change” shall be construed to apply only to the following circumstances: 1.When the character of the work as altered differs materially in kind or nature from that involved or included in the original proposed construction, or 2.When an item of work is increased in excess of 125% of the original contract quantity and the item of work, after the increase, exceeds a value of $50,000 or 5% of the original contract cost, whichever is the lesser amount, either party to the contract may seek a unit price adjustment. Any allowance due to the increase in quantity shall apply only to that portion in excess of 125% of the original contract item quantity. 3.If a major item of work, decreases below 75% of the original contract quantity, either party to the contract may seek a unit price adjustment. However, the total payment shall not exceed that which would be made for 75% of the original proposal quantity at the contract unit price. Price adjustments for decreases of other than Major Contract Items will not be allowed.
c.Differing Site Conditions. During the progress of the work, if subsurface or latent physical conditions are encountered at the site differing materially from those indicated in the contract or if unknown physical conditions of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in the work provided for in the contract, are encountered at the site, the party discovering such conditions shall immediately notify the other party in writing of the specific differing conditions before the conditions are disturbed and before the affected work is performed.
Source: Nevada Standard Specifications for Road and Bridge Construction, 2014 Edition. Pages 21–22 of 610.