ADVERTISING, SALE & AWARD

Transcription

1 ADVERTISING, SALE & AWARD PRIMARY ROLES & RESPONSIBILITIES PRIMARY TASK ODOT LPA DEVELOP BID PROPOSAL PREPARE AND SUBMIT PS&E PACKAGE TO DISTRICT DISTRICT REVIEW OF PS&E PACKAGE (District LPA Manager with assistance of other district personnel, as appropriate) DISTRICT SUBMISSION OF PS&E TO OFFICE OF LOCAL PROGRAMS PRE-BID MEETING (Optional, any time after PS&E and before bid opening) IF FEDERAL FUNDS, OBTAIN FEDERAL AUTHORIZATION Package processed by ODOT s Office of Local Programs Authorization obtained from FHWA and communicated to the District LPA Manager Neither advertising for bids nor work can begin until Federal authorization is received by the LPA from ODOT Revised 1/22/18 Page 1 of 16

2 Page 2 of 16 PRIMARY TASK (continued) ODOT LPA LPA ADVERTISES & LETS PROJECT Advertises for 21 days Opens and analyzes bids and awards to lowest responsive bidder; who is also prequalified by ODOT Formally awards project, and submits bid tab and award information to ODOT REVIEW AND SUBMISSION OF AWARD INFORMATION (District LPA Manager reviews information, checks contractor prequalification status and submits to Office of Local Programs) ENCUMBER FUNDS (Office of Local Programs) FINALIZE CONSTRUCTION CONTRACT Revised 1/22/18 Page 2 of 16

3 ADVERTISING, SALE & AWARD INTRODUCTION This chapter describes the process for the preparation of the bid package, and advertising, selling, and awarding the project. If Federal funds are involved in the project, Federal Authorization must be obtained prior to advertising. This is an extremely critical step in the process. To obtain Federal Authorization means to obtain permission from the Federal Highway Administration (FHWA) to begin the advertising process. 1 Should advertising or work commence prior to Federal Authorization, the Federal project funds will be lost. Under no uncertain terms should an LPA advertise for bids until they receive notice from the ODOT District LPA Manager that Federal Authorization has been obtained. DEVELOPMENT OF BID PROPOSAL The LPA s Project Engineer is responsible for preparing the bid package which contains the plans, addenda, special provisions, supplemental specifications, Utility Note and the bid proposal. When using Federal funds LPAs must comply with 23 CFR Section 635 which describes Federal regulations governing construction contracts. Following this chapter is Form FHWA-1273, Required Contract Provisions, which is a set of contract provisions and proposal notices that are required by regulations promulgated by the FHWA and other Federal agencies. These provisions apply to all Federal-aid construction projects and must be made a part of, and physically incorporated into, all contracts, as well as, appropriate subcontracts and purchase orders. Form FHWA-1273 is also referenced in the LPA Local-let Agreement. It is ODOT s responsibility to monitor and enforce Federal regulations on all Local-let projects. The following describes the requirements: Language should be added to each bid proposal for Federal-aid projects to cover any conflict between local contract language and Federal rules. If the LPA s own contract specifications include conditions such as residency requirements, geographical restrictions, etc., which tend to restrict competition, such conditions cannot be part of the solicitation for bids or the bid proposal package nor appear in any advertisement for bids (23CFR (b)). Federal-aid projects have mandated Disadvantaged Business Enterprise (DBE) requirements. DBE language is required in all Federal-aid contracts, and DBE goals may be required for any project. The goal will be determined based on the type of work, and number of available DBEs in the area CFR (a) Revised 1/22/18 Page 3 of 16

4 The bid proposal package must have the following items: Instruction to bidders (including prequalification requirement) General contract conditions Work specifications Proposal forms Agreement forms Federal and State requirements - Projects funded with State funds must comply with the Ohio Revised Code. Required Contract Provisions Federal-aid Construction Contracts (FHWA-1273) Federal wage rates and provisions relating to prevailing wages/convict labor, etc. (Wage rates are optional at the time the bid package is initially submitted to ODOT but must be in final document to contractor) - Most Federal-aid contracts require that prevailing Davis- Bacon wage rates be incorporated into the bid proposal. Nondiscrimination - All Federal-aid contracts must include language regarding Disadvantaged Business Enterprise (DBE) participation goals, on-the-job training and equal employment opportunity (EEO). Specific EEO contract language is provided for in FHWA DBE requirements are mandated by Federal statute and rules. All projects are to go before the DBE Committee for a goal determination. However depending on various factors, total cost, type of work being performed, etc., it may be determined that a project has a 0% DBE goal assigned to it. The LPA should supply an Engineer s Estimate to the District LPA Manager as soon as possible so that ODOT may determine if there should be a DBE goal and the amount of that goal. The LPA is responsible for including the goal on the cover of the bid proposal so that it is easily identifiable, and for the insertion of the following language: Disadvantaged Business (DBE) Requirement. DBE participation goals (subcontracts, materials, supplies) have been set on this project for those certified as DBEs in accordance with 49 CFR, Part 26, and qualified to bid with ODOT under Chapter 5525 of the Ohio Revised Code. Utility Note - This note details all utilities that are located within the construction limits, the disposition of these facilities, the time frame when the work will be completed and any other necessary information. Revised 1/22/18 Page 4 of 16

5 Drug Free Workplace Program language - Each contractor and subcontractor must be enrolled in, and in good standing in the Drug-Free Workplace Program or a similar program approved by the Bureau of Workers Compensation. Non-Collusive Bidding Certification - Non-Collusive Bidding and Other Certifications are required for all Federal-aid contracts. Under 23 CFR 112(f), bidders must certify that the bid submitted was arrived at without resorting to any collusive bidding practices. Collusion is defined as any activity that artificially affects prices when bidding on a Federal-aid contract, or activity which restricts competition among bidders or potential bidders by exchanging or sharing information with firms presumed to be competing for the same contract. Additionally, Federal law requires bidders to certify they are eligible to compete for contracts under Federal regulations and are not under sanction of any Federal agency nor are any sanctions pending against the firm or an owner of the firm. Title 49, U.S. Code, Part 29, requires the bidder to certify that he or she has not been subject to legal action regarding fraud or misconduct. The laws encourage any person with knowledge of collusive bidding or other misconduct to report possible violations to the appropriate authorities. Federal Requirements Regarding Lobbying Activities - Federal regulations (23CFR (g)) require that any contractor or firm intending to do business with the Federal government, or wishing to participate in any contract funded with Federal-aid, disclose to the Federal government all lobbying activities which that contractor or firm may have undertaken. Specifically, in addition to disclosing lobbying efforts of any kind, any prospective contractor or firm who expects to perform work funded with Federal-aid must certify that no lobbying activity has been financed with Federal funds of any kind. U.S. Department of Transportation Hotline Information - The Office of Inspector General maintains a Hotline to facilitate the reporting of allegations of fraud, waste, abuse, or mismanagement in U.S. DOT programs or operations. Any one may report such allegations by contacting the Hotline by phone ( ), by fax ( ), or by ( Buy America - Current Federal regulation (23 CFR ) requires all bidders for Federal or Federal-aid contracts to submit bids based upon using only domestic steel and iron products, and makes the submission of bids incorporating foreign steel and iron products an option that the bidder may exercise following specified procedures. Addenda - Addenda are necessary when there is an error or omission in the bidding documents or when a clarification is needed. The addenda provides the contractor with the correct estimated quantity or clarified proposal note. Failure to attach an addenda may be cause for rejection of the bid. It is very important for the contractor and the district to be aware of the addenda issued on a project because the addenda may cause a substantial change to the contract. Federal regulations, 23 CFR (c), require prior approval of addendums that contain major changes. Therefore, the LPA shall submit to ODOT any Revised 1/22/18 Page 5 of 16

6 addendum to be issued during the advertisement period. ODOT must approve such addendum for project eligibility. The addendum then must be distributed to all potential bidders prior to opening bids and awarding of the contract. This procedure maintains the integrity of the competitive bidding process. Alternative Contract Types The usage of a particular type or method depends on the work, timing and location of the project. The LPA shall obtain prior approval from the ODOT District LPA Manager to utilize one of these alternative contract types. 1. Incentive/Disincentive Incentive/Disincentive clauses are used to encourage early or on time completion of work where there are significant inconveniences to the traveling public. The LPA establishes a completion date for the project. If the contractor completes the project prior to the completion date, the contractor receives an incentive for an early finish. The incentive is predetermined based on a dollar amount per day. If the contractor finishes after the completion date, it is assessed damages (a disincentive) for a late finish. Again, this method is best used when there is a major impact or lost access to a facility. 2. A + B Bidding A + B bidding is used for projects where time of completion is a significant concern. In these type of contracts, the contractor is bidding both the cost of the work and the time in which it can complete the project subject to limitations on the overall time included in the contract. A + B bidding means to bid the cost of the job plus the contract time. Using this method, each bid submitted consists of two parts. The A component is the traditional bid for the contract items and is the dollar amount for all work to be performed under the contract. The B component is a bid for the total number of calendar days required to complete the project. The lowest bid is determined by the formula A + (B x road user cost/day). When time is a major concern for the project, this method may be best to use. 3. Design Build Design Build contracts require the contractor to perform both the project design and construction work. Specifications are expressed in a performance format. The design/build method gives the contractor maximum flexibility for innovation in the selection of design, materials, and construction methods. The LPA specifies the end result and establishes the minimum design criteria. An extensive liability insurance clause is used to ensure the finished product. The potential time savings which results because construction can begin before all design details are completed is the biggest benefit to the LPA. 4. Lane Rental Lane Rental clauses require the contractor to pay for or rent the use of lanes during construction. This method is used to encourage contractors to decrease or minimize the effects on road users during construction. This is done by assessing a rental fee amount based on the estimated cost of delay or inconvenience to the road users during the rental period. Neither the contractor nor the LPA gives an indication of the anticipated amount of time for which the assessment will apply. This encourages contractors to schedule their work so that traffic impacts are kept to a minimum. Revised 1/22/18 Page 6 of 16

7 5. Warranty Contracts Warranty contracts are used for projects where the contractor not only performs the work, but also warrants that it will maintain a standard of performance for a specified period of time, such as five years. Using Alternate Bids The use of Alternate Bids is accepted under two circumstances, both of which must be coordinated and approved by the ODOT district. One is referred to as additive alternate bidding to take advantage of a project s available funding, and the second is for proprietary items. Because Federal-aid on projects is capped at a maximum cost, an LPA may choose additive alternate bidding to maximize the benefits of the funding available for a project. This should only be done in consultation with and by the approval of the Program Manager. In general, the concept allows for contractors to bid first on the elements of the basic project scope, and submit additive alternate bids on work outside of the basic project scope: the additive alternate bid items. These alternates can be add ons or deletions from the basic project scope, or both. If the LPA receives bids on the basic scope which are less than the Engineer s estimate, bids on the alternate items are considered according to a predetermined order of priority, so long as the total bid price remains under the total project budget. Bids on the basic scope and the alternate items are submitted at the same time and opened at the same time. This process is illustrated as follows: A basic project scope may consist of two blocks of resurfacing with curbs and gutters. If additional funds are available, the LPA wants to add another block of resurfacing, and various enhancements. The bid proposal is prepared for the basic resurfacing project. The additional additive items are listed in priority order. Once the bids are received, the low bid for the basic resurfacing project is first identified. If the basic bid is below estimate, leaving a fund balance, additive items are added in listed order of priority from that same bid to the point that funds are available. Items must remain in the predetermined list of priority; items cannot be selected out of order. Once the fund maximum is reached, the same procedure is followed for all other bids. The lowest overall bid is the winning bid. Revised 1/22/18 Page 7 of 16

8 Alternates can also be used for proprietary items. The bid consists of a second (alternate) bid item for each general (generic) bid item affected by the LPA s special requirements. The generic bid item reflects the customary item that is sufficient to meet the needs of the project and is eligible for Federal reimbursement. The alternate bid item describes a similar item that will satisfy the same needs of the project but also contains the LPA s requirements. If the alternate item is bid at a higher price than the generic item, the LPA can accept the alternate item with the understanding that they will pay the entire cost differential between the alternate and the generic item. Any use of sole source or proprietary bid items must be approved by the ODOT district, and brought to the attention of the District LPA Manager as soon as possible so as not to cause delays. Sole source or proprietary bid items for traffic signal and highway lighting projects must be in conformance with ODOT s Traffic Engineering Manual. PS&E PACKAGE The Plans, Specifications & Estimate package (PS&E) is necessary for obtaining Federal Authorization to advertise for bids. The LPA is responsible for assembling and submitting the package which is to contain at least the following material: 1. A complete set of plans that are signed and sealed by a licensed engineer or architect. The title sheet must include the county-route-section, Federal Project Number and PID number. If the licensed engineer or architect is a different person than the LPA authority, the LPA authority shall sign the title sheet of the plans. Plans may be generated in the LPA s format. (This item is not included in a Design-Build project.) 2. The Bid Proposal 3. A copy of the engineer s estimate, signed and sealed by the Design Engineer 4. The LPA agreement between ODOT and the LPA, if not previously submitted 5. Environmental Consultation Form 6. Right of Way Certification Letter 7. Proposal Notes 8. Utility Note 9. Web Bid Submission form if required by the District LPA Manager (upon authorization and for a period of one month, ODOT s Office of Local Programs will post an LPA s project information on their website at A copy of this form is located at the end of the chapter.) Revised 1/22/18 Page 8 of 16

9 The ODOT district will review the package to ensure that it is complete, and then send it to ODOT s Office of Local Programs for processing. Once the PS&E package has been received in Central Office, Federal authorization will be issued in approximately nine (10) days. This period covers processing by ODOT s offices of Local Programs and Federal Accounting, and by FHWA. Upon receipt of authorization, provided to the LPA through the District LPA Manager, the LPA can begin to advertise the project. PRE-BID MEETING This optional meeting is held by the LPA any time after the submission of the PS&E package, and before bid opening to address prospective contractors concerns and questions. It is recommended for more complex projects, and is considered a good industry practice. The meeting s purpose is to encourage face to face discussion regarding plan intent and any areas of concern prior to bid opening. This meeting will often result in plan addendum that could have resulted in change orders and/or claims after the project is bid, making this effort valuable to both contractors and the LPA. The FHWA does not prohibit the use of pre-bid meetings; however, if attendance at a pre-bid meeting is made a condition of bid responsiveness, the project advertisement and all bidding documents must reflect this requirement. The contracting community must be given adequate notice to comply. AUTHORIZATION TO ADVERTISE - FEDERAL-AID PROJECTS After submittal of the PS&E package, the LPA can only advertise the project for construction after receiving authority to advertise from the ODOT District LPA Manager. Advertising prior to receiving authority from the District will result in a loss of Federal funds. A copy of the Federal Authorization will be sent to the LPA. This is referred to as Authorization to Advertise. ADVERTISEMENT Once the LPA receives the Authorization to advertise, the LPA may begin advertising activities. Federal-aid projects are required to be advertised for a minimum of twenty-one (21) consecutive days between the first legal advertising date and the bid opening. It is suggested that if the project is a Design/Build, the advertisement period be six (6) weeks. Documentation that the legal advertising requirements have been met must be provided to the ODOT District as part of the Award Package. The ODOT Office of Local Programs website lists the projects for which Federal Authorization has been recently received. The website directs interested bidders to contact the LPA directly. Advertisements should also be in accordance with local bidding requirements. Revised 1/22/18 Page 9 of 16

10 Whenever local advertisement requirements differ from Federal advertisement requirements, the Federal requirements will prevail. If there are any concerns or questions about the Federal requirements versus the Local requirements, please contact the District LPA Manager. Please refer to ORC Section 153, ORC , and for additional information on the advertising requirements for Municipal Corporations and Counties. CONTRACTOR RESPONSIBILITIES In order to submit a bid that adequately reflects the conditions of the contract, the contractor must research all aspects of the contract, such as visiting the project site, understanding the plan notes, and reviewing all plan requirements. The contractor must be aware of all Federal, State and Local laws that apply. Many of the legal requirements of the contract are addressed in the proposal, but the contractor must also be aware of other regulations such as safety. All bidders must be ODOT pre-qualified. The bid doc template provided by the Department states that only prequalified contractors will be eligible to submit bids for construction projects. Prequalification status must be in force at the time of bidding, the time of sale, and the time of award. Subcontractors are not subject to the prequalification requirement unless otherwise specified by the LPA. Additionally, it is clearly stated in this template, that the prime contractor must perform no less than 30 percent of the total original contract price. The LPA shall require the contractor to protect and indemnify the LPA from all claims and liability resulting from negligence or willful violations of the contractor. The selected contractor must provide a performance and payment bond in an amount at least equal to 100 percent of its contract price as security for the faithful performance of its contract. In addition, the LPA must require that each of its selected contractors and subcontractors maintain during the life of its contract and subcontract, Workers Compensation Insurance, Public Liability with minimum coverage amounts of $1,000,000 per occurrence, Property Damage with minimum coverage amounts of $1,000,000 per occurrence, and Vehicle Liability insurance. The contractor must also be enrolled and in good standing in the Drug-Free Workplace Program (DFWP) or a similar program approved by the Bureau of Workers Compensation, and require the same of any of its subcontractors. Should the project have a DBE goal placed on it, the contractor must work with DBE firms certified by ODOT to perform the portion of the work required to meet the goal. A list of certified DBE firms is available on the Office of Contracts web page at The contractor must identify how they will meet the DBE goal on the project by submitting a DBE Utilization Plan online at the time of bid. Once the bids have been submitted, the Apparent Low Bidder must affirm the DBE participation on the project within five (5) calendar days after the bid opening. This is also done online for each Revised 1/22/18 Page 10 of 16

11 DBE it will be utilizing towards the project goal. If the contractor is unable to meet all or part of the goal, they must demonstrate that good faith efforts were made to meet the goal. This must also be done within five (5) calendar days after the bid opening. The documentation that is required to demonstrate these good faith efforts can be found in PN13 in the Federal Bid Doc Template. BID OPENING The bid opening is a public forum for the announcement of all bids and it is at that point in time that the bids are opened and read aloud either item-by-item, or by the total amount. Typically, this takes places the last possible moment that bids can be accepted. Once the bid opening date is established, the LPA shall inform the District LPA Manager of the date and time. Additionally, once federal authorization has been provided, it is the responsibility of the Local Public Agency (LPA), to complete the Bid Opening Date Form online, and submit prior to bid opening. If there is a change in the bid opening date, the LPA is responsible for resubmitting this form as soon as the new date is known. The bid opening should identify the responsible bidder submitting the lowest, responsive bid. A responsive bid meets all the requirements of the advertisement and proposal. A responsible bidder is one who is physically organized and equipped with the financial wherewithal to undertake and complete the contract. If a bid is unresponsive (bid irregularities), it does not have to be read. However, the bidder and the reason must be announced. Some reasons for not reading a bid due to irregularities include: failure to sign the bid, or signature is not by authorized personnel; failure to furnish or sign the required bid bond; failure to include unit prices, extensions and/or lump sums; failure to submit a non-collusion affidavit; failure to submit a DBE Utilization Plan or demonstrate good faith effort to do so; failure of the contractor to be prequalified for that type of work; and bid exceeds the Engineer s Estimate. BID ANALYSIS AND CONTRACT AWARD Bid Analysis Process Title 23 CFR (a) requires Federal-aid contracts to be awarded only on the basis of the lowest responsive bid submitted by a bidder meeting the criteria for responsibility. This requirement applies to all Federal-aid highway construction projects. FHWA has stressed that estimates should be accurate and credible, based on realistic current data, and while not required, it is recommended that they are kept confidential. Further, there should be written procedures for justifying the award of a contract, or rejection of the bids, when the low bid appears excessive or rejection is being considered for other reasons. Revised 1/22/18 Page 11 of 16

12 The LPA must analyze the bids for responsiveness and errors, and document this review and analysis in the project file. There must be no preferential treatment accorded any bidder based on the geographic location of its business offices. The analysis should result in a contract award to the lowest responsive bid by an ODOT Prequalified bidder. Should this bid be over the engineer s estimate, the LPA should determine if the amount is appropriate and consult its local legal counsel. If the LPA determines that it will not award to the lowest, responsive bidder, it must contact ODOT immediately and provide written justification for the decision. ODOT and FHWA must concur in the LPA s rejection of bids. Bid analysis is the basis for justifying contract award or rejection of the bids. A proper bid analysis helps to ensure that funds are being used in the most effective manner. The ODOT review of the bids should parallel the LPA review. Together, both agencies should be assured that good competition and lowest possible price were received. The ODOT concurrence in award is a step in the obligation and expenditure of Federal funds. The bid analysis process, pursuant to 23 CFR (c), is an examination of the unit bid prices for reasonable conformance with the engineer s estimated prices. Beyond the comparison of prices, other factors that a bid analysis may consider include: number of bids, distribution or range of the bids, geographic location of the bidders, urgency of the project, unbalancing of bids (see below), current market conditions and workloads, comparison of bid prices with similar projects in the letting, justification for significant bid price differences, potential for savings if the project is re-advertised, and other factors as warranted. Not all of these factors need to be considered for bids that indicate reasonable prices or show good competition. However, when the low bid differs from the engineer s estimate by an unreasonable amount, a thorough analysis of all bids should be undertaken to justify award of the contract. In making that justification, the following questions should be considered: Was competition good? Is the timing of the project award critical? Would deferral be contrary to the public interest? Would re-advertisement result in higher or lower bids? Was there an error in the engineer s estimate? Revised 1/22/18 Page 12 of 16

13 The issue of how to assess whether competition for a specific project was good is addressed in FHWA s Guidelines on Preparing Engineer s Estimate, Bid Reviews an Evaluation which also notes that some projects may be so essential that deferral, even for 60 days, would not be in the public s best interest. Examples of such projects might include: safety projects to correct an extremely hazardous condition which endangers the traveling public, emergency repairs or replacement of damaged facilities, projects to close substantial gaps in otherwise completed facilities, or projects that are critical to staged or phased construction such that delaying this element will adversely impact the completion of the whole project. Unbalanced Bids As defined in 23 CFR , the two types of unbalanced bids are: 1. A mathematically unbalanced bid is a bid that contains lump sum or unit bid prices that do not reasonably reflect the actual costs (plus reasonable profit, overhead costs, and other indirect costs) to construct the item; 2. A materially unbalanced bid is a mathematically unbalanced bid that generates reasonable doubt that award to that bidder would result in the lowest ultimate cost to the government. To detect mathematical unbalancing, the unit bid items should be evaluated for reasonable conformance with the engineer s estimate and compared with the other bids received. There are no definitive parameters (e.g. an amount or percent of variance from the engineer s estimate) that constitute an unbalanced bid. The degree of unbalancing of a bid may depend on the reason for the unbalancing. Mathematically unbalanced bids, although not desirable, may be acceptable. The final decision on if a bid is materially unbalanced must be based on engineering judgment. Among the items to review are: the amount bid for the mobilization item does not mask unbalancing, and token bids (i.e., bids with large variations from the engineer s estimate) should be considered as mathematically unbalanced bids and further evaluation and other appropriate steps should be taken to protect the government s interest. There may be situations where the quantity of an item could vary due to inaccuracies in the original quantity or cost estimating, errors in the plans, changes in site conditions or design, etc. Often contingency items or significant calculation errors lead to unbalanced bids. In these situations, the bids should be further evaluated to determine if the low bidder would ultimately yield the lowest cost. In addition to comparing obvious cost impacts the plans should be reviewed to verify the accuracy of the quantities of work unbalanced and the impacts of nonperforming or adding work to the item that appears to be unbalanced should be considered. If Revised 1/22/18 Page 13 of 16

14 unbalancing creates reasonable doubt that award would result in the lowest ultimate cost, the bid is materially unbalanced and should be rejected or other steps should be taken to protect the government s interest. Award The LPA should award the project construction contract in accordance with laws and policies governing the LPA. The LPA s legal council should be contacted for any legal concerns with the bids or the award. Once the lowest, responsive bidder is determined, the LPA is to prepare a bid tabulation (bid tab) to include a summary of all bidders and bid amounts. Award should be accomplished by resolution or by ordinance. The LPA shall provide notification to the District LPA Manager of the project award within thirty (30) days, to include a copy of the bid tab of the selected contractor, and a copy of the resolution from the Commission. As required in Section of the FHWA Form 1273, the prime contractor and all lower tier participants must be eligible to participate on federally funded contracts. This includes subcontractors, material suppliers, vendors, etc. Eligibility of the Apparent Low Bidder must be verified by the LPA and documented in the project file prior award. The System for Award Management (SAM) is a required tool to be used in determining whether an individual or company is excluded as a suspended or debarred party. This database at allows the user to perform a search by name or DUNS number. The LPA may elect to have ODOT pay the Federal portion of project construction invoices directly to the contractor in lieu of funds being forwarded through the local government agency. In order to utilize the direct pay option, the contractor needs to have electronic funds transfer set up with the State of Ohio and a current W-9 on file with ODOT. Attachment Two of the LPA agreement must be completed and submitted with the bid tab. The District LPA Manager shall review the documentation and forward it to the Office of Local Programs. Setting Up an Encumbrance The District LPA Manager will forward submitted documents to the Office of Local Programs so that encumbrances can be established. The encumbrances are needed in order for ODOT to pay any invoices. Once the funds are encumbered, there can be no changes to the payment options. *******Funds must be encumbered prior to any work beginning.********* Finalize Construction Contract Once the project has been awarded, the LPA may sign and enter into a contract with the awarded contractor. However, bills cannot be paid until the award information is submitted so that the Revised 1/22/18 Page 14 of 16

15 project may be encumbered as shown above. The contract should include items specified in the bid proposal, including all Federal and State requirements, as well as account for the following: Description of the work based on the plans, proposal, specifications, supplemental specifications and special provisions; Affidavit of taxes; Bond information; Insurance; and DBE participation requirements Revised 1/22/18 Page 15 of 16

16 REFERENCES 23 Code of Federal Regulations 49 Code of Federal Regulations Form FHWA-1273, Required Contract Provisions Title VI of the 1964 Civil Rights Act ODOT Contract Administration Manual FHWA Guidelines on Preparing Engineer s Estimate, Bid Reviews and Evaluation, January 20, 2004 APPENDI Web Bid Submission Form Required Contract Provisions for Federal-Aid Construction Contracts (FHWA-1273) Revised 1/22/18 Page 16 of 16