Part 1 — General
1.1 Section Includes
A.Conditions for awarding a contract .
1.2 RELATED SECTIONS Not Used
1.3 References
A.Federal Uniform Guidance (FUG)
B.United States Department of Treasury Circular 570
C.Utah Procurement Code (UPC)
D.Utah Administrative Code (UAC)
1.4 DEFINITIONS Not Used
1.5 Submittals
A.Provide all submittals in this Section to the Director of Construction.
B.Declaration of clerical or mathematical error when applicable. Refer to this Section, Article 1.6 paragraph D.
C.Contract Bonds. Refer to this Section, Article 1.10.
D.Executed contracts for Department execution. Refer to this Section, Article 1.11 , paragraph A.
E.Signed statement for Qualified Health Coverage and actuarial statement. Refer to this Section, Article 1.11 , paragraph B.
1.6 Proposal Consideration
A.The Department adheres to the requirements of the Utah Procurement Code (UPC), and applicable rules codified in the Utah Administrative Code (UAC) and the Federal Uniform Guidance (FUG) for soliciting, awarding and executing contracts.
1.Part 6 of the UPC applies to soliciting, awarding and executing "bids."
2.Part 7 of the UPC applies to soliciting, awarding and executing B id "Proposals ."
B.The Department publicly opens responsive proposals from responsible and prequalified vendors using the current version of the UDOT Bidding System ( UBS). The U BS compare s bids and proposals on the basis of the summation of the products of the quantities and the unit bid prices.
1.The Department makes the results of the comparisons available to the public.
2.The unit bid prices govern if a discrepancy exists between unit bid prices and extensions. a) A signed hard copy takes precedence over a manually delivered electronic version in the case of discrepancies or initialed changes to unit prices or DBE commitment in this case .
C.The Department reserves the right to reject any or all proposals, waive technicalities, or cancel a solicitation and re- advertise for new proposals , pursuant to the requirements of state and federal procurement law .
D.The bidder can request withdrawal of a bid after bid opening by:
1.Submitting a notarized affidavit within 24 hours after bid opening declaring a clerical or mathematical error in bid preparation. a) Submitting accompanying declaration with original work sheets used in bid preparation. b) Describing specific errors in detail. c) Verifying that error has a significant monetary effect in the amount of 3 percent of the bid or greater.
E.Bidders may correct immaterial errors , and the D epartment may ask a bidder to clarify information included in a bid or proposal as allowed by the UPC and applicable rules and regulations after bids or proposals are opened.
F.The Director for Construction makes the final determination of the withdrawal request.
1.7 Contract Award
A.The Department will award the contract to the lowest responsive and responsible bidder within 30 calendar days.
B.The Department may withhold award beyond the 30 calendar days with the approval of the successful bidder.
C.The bidder may withdraw the proposal without liability if the award is not made within 30 calendar days.
D.The Department notifies the successful bidder by email as indicated with Contractor registration. The date of the award notice email serves as the Notice of Award date to the successful bidding contractor and will define that the bid has been accepted and the contract has been awarded.
1.8 Canceling The Award
A.The Department may cancel the award of any contract before a contract is execut ed pursuant to the requirements of the UPC, and the applicable sections of the UAC and the FUG without liability.
1.9 Returning Proposal Guaranty
A.Proposal guaranties are released after the Department receives satisfactory contract bonds , all required certificates of insurance, and the fully executed contract between the Contractor and the bonding company .
B.A Contractor is not released from its bidding or contractual obligation because of an alleged error in the preparation of the proposal or issues with any part of the contractual process unless the Department releases the surety guaranty.
1.10 Contract Bonds
A.The Department furnishes the required bond forms .
B.Return fully executed bond forms to the Department as required by the UPC.
1.Payment Bond secures the payment of the claims of laborers, mechanics or material suppliers employed on the work under the contract.
2.Performance Bond guarantees the faithful performance of the contract.
C.Each bond must be in an amount equal to 100% of the price specified in the contract .
D.Underwriting Limitation is stated in the United States Department of Treasury Circular 570 : Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies .
1.Only companies listed in the Department of Treasury Circular 570 in effect the year the contract between the Department and the Contractor is executed are acceptable.
2.This list of companies is accessible through the U.S. Department of Treasury, Bureau of the Fiscal Service’s website . A current link to the web page can be found at: http://www.udot.utah.gov/go/standardsreferences .
E.The Department may issue change orders that alter the terms of the contracts, extend deadlines, and change the scope of work without securing the consent of the surety or sureties on the contract bonds.
F.The Department may terminate the contract and cancel all work under the contract if a Contractor’s surety is unable to provide payment, unless the Department determines it is in the public interest to continue the work.
G.Contractor may f urnish cash bonds in the form of two cashier’s checks, each in the amount of Contractor’s bid amount as an alternative to the required payment and performance surety bonds.
1.The Department will hold the cash bonds in an interest bearing account and use the proceeds as needed for correcting non-performance or non- payment by the Contractor .
2.The Department will return one half of the cash bond minus cost s levied against either of the bonds to the Contractor upon release by the Engineer after physical completion of the work.
3.The Department will release the remaining cash bond if no payment or performance claims arise for 90 calendar days after release by the Engineer after physical completion of the work .
4.The Department will hold the cash bonds until existing non-performance or non-payment issues are resolved.
a.The Contractor accrues no liability during this time.
5.The Department determines the need for withholding the cash bond.
1.11 Executing and Approving The Contract
A.A warded Contractor must r eturn fully executed contracts, contract bonds, National Safety Rating Scores , and required certificates of insurance to the Department within 20 calendar days after the date of the notice of award.
1.The bidder can withdraw the proposal without penalty if the Department does not execute the contract within 30 calendar days after receiving requisite signed contracts , bonds , and insurance certificates .
2.The contract is not considered effective or enforceable until fully executed by all parties.
3.The date on the executed electronic contract serves as the Notice to Proceed date to the awarded contractor.
B.Qualified Health Benefit Plan- The Department will not issue a Notice to Proceed until the Contractor d emonstrates to the Department that both the Contractor and its subcontractors have a nd will maintain an offer of qualified health insurance coverage for the C ontractor's employees and the employees' dependents during the duration of the contract.
1.C ontractor s and subcontractors who fail to demonstrate to the Department that they have and will maintain an offer of qualified health coverage for their employees and the employees' dependents during the duration of the contract are subject to penalties in accordance with Utah A dministrative Rule, which may include termination of their contract.
a.For any subcontract valued at or above $1,000,000 provide an actuarial statement of equivalency that they have and will maintain an offer of “qualified health benefit plan” to employees and dependents of employees as required by Utah Transportation Code 72-6- 107.5.
2.Refer to http://www.udot.utah.gov/go/standardsreferences for instructions on the process for Qualified Health Coverage.
3.Contractor must provide two statements to “demonstrate” compliance with Section 72-6- 107.5. Statements need to be signed originals and on company letterhead. Separate letters for each subsidiary, or DBA contracting with Department, are required.
a.Provide an original signed statement from the Contractor stating that they will maintain an offer of Qualified Health Coverage as required by Utah Code 72-6- 107.5 for the duration of any contract between Contractor and UDOT.
b.Provide a written statement of actuarial equivalency from: 1) An actuary selected by the C ontractor or the Contractor’s insurer; 2) An underwriter who is responsible for developing the employer group’s premium rates ; 3) or the contractor provides a health benefit plan described with Section 72- 6-107.5, an actuary or underwriter selected by a third -party administrator.
1.12 Materials Guaranty
A.Contractor may be required to furnish a written guaranty covering certain items of work for varying periods of time from the date of acceptance of the contract.
1.The Department specifies in the contract the work to be guaranteed, the form the Contractor will use to provide the guarantee, the time limit and other specific requirements of the guaranty.
2.Sign and deliver the materials guaranty to the Engineer before contract completion.
3.The required performance bond may be reduced upon contract completion to conform to the total amount of the contract bid prices for the items of work to be guaranteed. This amount continues in full force and effect for the duration of the guaranty peri od. Refer to this Section, article 1.10.
1.13 Failure To Execute Contract
A.The Department can cancel the notice of award and keep the proposal guaranty if the successful bidder does not execute the contract and file acceptable bonds and insurance certificates that prove coverage within 20 calendar days after the date of the Notice of Award.
B.The Department may then award the contract to the next lowest responsive and responsible bidder or may re- advertise the work.
Part 2 — PRODUCTS Not Used
Part 3 — EXECUTION Not Used
Source: Utah Standard Specifications for Road and Bridge Construction, 2026 Edition. Pages 35–40 of 1,331.