Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2 The Process Of Construction Contract Procurement For Facilities Projects CHAPTER 2 TABLE OF CONTENTS CHAPTER 2.1 - REQUIREMENTS FOR PROCUREMENT OF CONSTRUCTION A. LEGISLATION B. REFERENCES C. THRESHOLD AMOUNTS... (See Article 2.1-1) Article 2.1-1 Article 2.1-2 Article 2.1-3 Annually Adjusted Thresholds Procurement Decision Document Prevailing Wage Rates Residential Rates For Student Housing CHAPTER 2.2 - CONSTRUCTION CONTRACT FORMS A. STANDARD CONTRACT FORMS... (See Article 2.2-1) B. SELECTION OF CONTRACT FORM Article 2.2-1 Current List of Construction Contract Forms CHAPTER 2.3 THE BID PACKAGE A. OVERVIEW B. DEFINITIONS C. CONTENTS OF BID PACKAGE... (See Article 2.3-1) D. PREPARATION E. BID FORM ONE BOUND IN BID PACKAGE & SECOND SEPARATE COPY Article 2.3-1 Bid Package & Contract Documents Engineering / Architectural Instructions for Facilities Projects Chapter 2 Chapter 2 - The Process Of Construction Contract Procurement Table of Contents Page 1 of 2
CHAPTER 2.4 DESIGN PHASE A. OVERVIEW B. PROFESSIONAL PROCUREMENT AND ADMINISTRATION C. SEPARATE PRIMES D. BID FORMATS AND BID COMPONENTS... (See Article 2.4-1) E. MBE/WBE PROGRAM & POLICY... (See Article 2.4-2) F. PROPRIETARY & NON-PROPRIETARY SPECIFICATIONS G. FINISHES... (See Article 2.4-3) H. LIQUIDATED DAMAGES Article 2.4-1 Article 2.4-2 Defined Bid Formats With Bid Components MBE/WBE Proactive Effort Policy & Provisions CHAPTER 2.5 BID PHASE A. OVERVIEW B. ADVERTISEMENT... (See Article 2.5-1) C. PRE-BID CONFERENCE... (See Article 2.5-2) D. ADDENDA... (See Article 2.5-3) E. RECEIPT OF BIDS F. OPENING AND READING OF BIDS G. EVALUATION OF BIDS... (See Article 2.5-4) H. AWARD... (See Article 2.5-5) I. BID PROTEST Article 2.5-1 Article 2.5-2 Article 2.5-3 Article 2.5-4 Article 2.5-5 Bidding / Builders Exchanges Pre-Bid Conference Agenda Addenda - Example Forms for Evaluations of Bids Checklist - Determination of Contractor Responsibility Checklist - Determination of Contractor Responsiveness Sample Letter - Request for Bidder s Information Checklist Professional s Responsibilities for Bid Evaluations Award of Project Sample Letter CHAPTER 2.6 CONTRACT AWARD PHASE A. OVERVIEW B. LOWEST RESPONSIBLE AND RESPONSIVE BIDDER C. TIMELY AWARD OF CONSTRUCTION CONTRACT D. CONTRACT PREPARATION E. CONTRACT TRANSMITTAL TO LEGAL F. WORK ORDERS FOR QUALIFICATION CONTRACTS Articles None CHAPTER 2.7 CONSTRUCTION PHASE A. OVERVIEW Articles None Engineering / Architectural Instructions for Facilities Projects Chapter 2 Chapter 2 - The Process Of Construction Contract Procurement Table of Contents Page 2 of 2
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.1 Requirements For Procurement of Construction For Facilities Projects CHAPTER 2.1 TABLE OF CONTENTS A. LEGISLATION Act 188 of 1982 State System Of Higher Education Commonwealth of Pennsylvania Act 57 of 1998 Commonwealth Procurement Code Commonwealth of Pennsylvania Act 142 of 2002 Amendments to Procurement Code Commonwealth of Pennsylvania Act of 1913 Separate Primes Legislation Commonwealth of Pennsylvania Act 442 Pennsylvania Prevailing Wage Commonwealth of Pennsylvania Act of Mar. 3, 1978 Steel Products Procurement Act Commonwealth of Pennsylvania Act of Nov. 28, 1986 Reciprocal Limitations Act Commonwealth of Pennsylvania Act of July 23, 1968 Trade Practice Commonwealth of Pennsylvania Act of 1967 Public Works Contractors Bond Law Commonwealth of Pennsylvania Act of 1990 Americans With Disabilities Act Federal B. REFERENCES System s Legal Manual Manual For Preparing & Processing Contracts For Goods & Services C. THRESHOLD AMOUNTS...(See Article 2.1-1) 1. Annual Adjustments to Threshold Amounts 2. Publication of Annually Adjusted Thresholds 3. No-Bid or Competitive Bid Threshold $10,000 Threshold Amounts (Adjusted Annually) 4. Bonding Thresholds Various Threshold Amounts (Adjusted Annually) 5. Separate Prime Procurements Threshold $25,000 Threshold Amount (Fixed Threshold) 6. Prevailing Wages Threshold $25,000 Threshold Amount (Fixed Threshold)...(See Article 2.1-3) 7. Procurement Decision Document...(See Article 2.1-2) CHAPTER 2.1 Article 2.1-1 Article 2.1-2 Article 2.1-3 LIST OF ARTICLES Annually Adjusted Thresholds Procurement Decision Document Prevailing Wage Rates Residential Rates For Student Housing Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 1 of 11 Chapter 2.1 - Requirements For Procurement of Construction
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.1 Requirements For Procurement of Construction For Facilities Projects A. LEGISLATION 1. ACT 188 OF 1982 Enabling Legislation for the PA State System Act 188 provides certain definitions and mandates that the System must follow regarding contract procurement of construction and services. Some of those are as follows: a. SECTION 20-2001-A: Definition of Maintenance Maintenance means those activities, materials, labor, and contracts that: (i) are necessary to replace, restore, refurbish, or enhance real property (ii) do not alter the architectural or engineering characteristics of the structure, (iii) do not affect the structural integrity of any existing facility or utility system. as follows: painting roadways landscaping parking facilities caulking & insulation downspout & gutters roof repair & replacement masonry repointing & repair window repair & replacement sidewalk & curbing reconstruction & replacement track & athletic court resurfacing & reconstruction asbestos abatement (in accordance with state & federal statutes & regulations) non- load bearing interior wall replacement, reconstruction, & construction NOTE: This definition of Maintenance is from Act 188 of 1982. A definition for other purposes appears in Act 442 - PA Prevailing Wage legislation (See Section C of this Chapter). The Construction Support Office can provide other information and examples of maintenance to assist Universities in determining when projects are maintenance. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 3 of 11 Chapter 2.1 - Requirements For Procurement of Construction
b. SECTION 20-2003-A.1: Project Contracts Contract Execution & Administration. The Pennsylvania State System of Higher Education is hereby authorized to execute and administer contracts for construction, repair, renovation, and maintenance projects, including all aspects of project management, design, construction, and legal and administrative services related to and necessary for the completion of projects. Capital Projects Not Authorized. This authorization does not include capital projects that are funded by Commonwealth general obligation bonds, capital appropriations or pursuant to "The Fiscal Code," unless delegated by the Department of General Services to the System. Merit Selections of Architects & Engineers. The System is authorized to review the work, experience, and qualifications of architects and engineers seeking contracts from the System. On the basis of merit and at the System s discretion, the System will select and appoint architects and engineers for the design, contract administration, and inspection of authorized projects. Advertisement & Public Bid. All authorized contracts that exceed $10,000, other than contracts for the retention of architects and engineers, must be advertised in the manner provided by law and competitively bid and awarded to the lowest responsible bidder. Other Legislation. Act 188 does not amend, repeal, or otherwise modify the provisions of - The Separations Act Commonly known as the Separate Primes Legislation The Act of May 1, 1913 (P.L. 155, No. 104), entitled "An act regulating the letting of certain contracts for the erection, construction, and alteration of public buildings". - Pennsylvania Prevailing Wage Act The Act of Aug. 15, 1961 (P.L. 987, No. 442). 2. ACT 57 OF 1998 - Commonwealth Procurement Code As a government entity, the Pennsylvania State System of Higher Education is required to follow numerous statutes, regulations, policies, and procedures for the procurement of construction and services. One piece of primary legislation critical to the System s procurement practices is Act 57 of 1998, the Commonwealth Procurement Code. Act 57, a relatively recent act, was instrumental in simplifying the process and requirements for contracting. Professionals are encouraged to review and have access to Act 57. Act 57 is available on the System s web site at: http://members.aol.com/statutesp3/62c.html Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 4 of 11 Chapter 2.1 - Requirements For Procurement of Construction
3. OTHER LEGISLATION In addition to Act 188 and Act 57, as amended, the following list includes other legislation that the System must comply with during the design and execution of construction projects: Act of 1913 Separate Primes Legislation Commonwealth of PA Act 442 Pennsylvania Prevailing Wage Commonwealth of PA Act of Mar. 3, 1978 Steel Products Procurement Act Commonwealth of PA Act of Nov. 28, 1986 Reciprocal Limitations Act Commonwealth of PA Act of July 23, 1968 Trade Practice Commonwealth of PA Act of 1967 Public Works Contractors Bond Law Commonwealth of PA Act of 1990 Americans With Disabilities Act Federal This list is provided to inform the user of this manual that the Construction Support Office may have electronic versions of legislation that can be used to reference and investigate certain requirements and conditions. This list is not provided to give the user of this manual a complete list of all mandates that the System must follow and does not relieve the user of this manual from becoming familiar with all necessary statutes, regulations, policies, and procedures. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 5 of 11 Chapter 2.1 - Requirements For Procurement of Construction
B. REFERENCES 1. OFFICE OF CHIEF COUNSEL Manual For Preparing & Processing Contracts For Goods & Services The System s Office of Chief Counsel has prepared a manual to assist in Commonwealth contracting Manual For Preparing And Processing Contracts For Goods And Services. This manual was prepared as a result of the implementation of Act 57 of 1998, promulgated on November 11, 1998, and has been updated. The purpose of this manual is to provide a user-friendly guide to Commonwealth contracting for the Office of the Chancellor and the System Universities. Further assistance can be found on the Legal Office home page at: http://www.sshechan.edu/legalweb/legal.html From the home page, you can access the manual and other information through the following sites: http://www.sshechan.edu/legalweb/procure.htm http://www.sshechan.edu/legalweb/procure.htm#gen http://www.sshechan.edu/legalweb/manual.pdf Information provided here should not be used as a substitute for legal advice. The user should contact appropriate legal counsel for legal advice. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 6 of 11 Chapter 2.1 - Requirements For Procurement of Construction
Manual For Preparing & Processing Contracts For Goods & Services The Chief Counsel s Manual includes discussion of the following: Legal Review Of Contracts Common Types Of Contracts Prohibited Contracts Methods Of Source Selection SPCs & Blueback Contracts: Required Provisions & Attachments SPCs, SBCS, & Blueback Contracts: Contract Preparation SPCs & Bluebacks: Modification After Execution Prohibited Contract Clauses Amending Existing Contracts Bonds Record Keeping Debarment Legal & Contractual Remedies Small & Disadvantaged Businesses Ethics & Anti-Bid Rigging Activities Disposal Of Surplus Property Bid Protest Procedure Flowchart Contract Remedies Flowchart Glossary Of Terms Board Of Governor s Policy 1990-07-A Board Of Governor s Policy 1998-04 Memorandums Of Chief Legal Counsel The Chief Counsel s Manual includes forms for the following: SPC - Service Purchase Contract, Renewal, & Amendment SBC - Service Bid Contract & Preparation Blueback Contract - Forms, Renewal, & Amendment Renewal By Letter RFP - Request For Proposal Interagency Memorandum Of Understanding Emergency Contract Certification Sole Source Contract Certification Transmittal Form Checklist For Drafting Contracts Novation Form The user of the E/A Instructions Manual shall verify certain instructions with the provisions contained in the Chief Counsel s Manual For Preparing & Processing Contracts For Goods & Services. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 7 of 11 Chapter 2.1 - Requirements For Procurement of Construction
C. THRESHOLD AMOUNTS The Pennsylvania State System of Higher Education is required by statute to follow certain guidelines depending upon thresholds, either adjusted annually or fixed, for contract amounts. Those guidelines and thresholds are discussed in this section. In the application of the thresholds, the user of this manual shall verify the instructions of this manual with the provisions of the manual produced by: Office Of Chief Counsel Manual For Preparing And Processing Contracts For Goods And Services (discussed in previous paragraphs). 1. ANNUAL ADJUSTMENTS TO THRESHOLD AMOUNTS Act 57 of 1998 provides for annual adjustments to certain thresholds to reflect the annual percentage change in the Composite Construction Cost Index (CCCI) of the United States Department of Commerce occurring in the one-year period ending December 31 of each year. See Article 2-1, Annually Adjusted Thresholds. 2. PUBLICATION OF ANNUALLY ADJUSTED THRESHOLDS DGS Publication. The annual adjustments to thresholds to reflect the annual percentage change in the Composite Construction Cost Index (CCCI) are computed and publish by Department of General Services. Historically, the updated thresholds for any year have not been published till mid-april. The Construction Support Office obtains the updated thresholds from the Department through the website. The current thresholds are provided in Article 2.1-1, Act 57 Threshold Amounts. The thresholds that are effective on January 1 for the current year have been posted on the Commonwealth s website at the following address: http://www.dgs.state.pa.us/dgs/cwp/view.asp?a=353&question_id=113753 If the above address is changed, the site may be located by doing a search of the DGS website for the word thresholds The above site may be found by going to the Commonwealth s web address http://www.state.pa.us/papower/ and doing a word search (PA Power Search) for Act 57 Thresholds. The Construction Support Office informs the System s Office of Chief Counsel as to the availability of the updated thresholds. The Chief Counsel then prepares a memo for transmission to the Universities, informing them of the updated thresholds. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 8 of 11 Chapter 2.1 - Requirements For Procurement of Construction
3. NO-BID OR COMPETIVE BID PROCUREMENT THRESHOLD $10,000 Original Threshold Amount...(Adjusted Annually See Article 2.1-1) a. NO-BID PROCUREMENT Act 57 in Section 514 discusses requirements for small procurements and specifies the following: The head of the Purchasing Agency may authorize, in writing, procurements without formal bid procedures, if the following apply: - If the procurement is not the subject of a Statewide Requirements Contract between the Purchasing Agency and a Contractor, - If the amount for a supply or service does not exceed the amount established by the Purchasing Agency for small, no-bid procurements. The department may authorize the no-bid procurement of construction projects that do not exceed a total construction cost of $10,000 (adjusted annually by the CCCI) - Projects may not be artificially divided so as to constitute a small procurement that is under the threshold. - Total Construction Costs means the cost of all separate prime contracts that constitute the project. Projects may not be artificially divided into separate contracts so as to constitute a small procurement that is under the threshold. Note: A University s business policies may have more stringent No-Bid Requirements that must be followed. The Office Of Chief Counsel s Manual For Preparing And Processing Contracts For Goods And Services provides the following instructions in Section IV, Methods of Source Selection, E. Small Procurements: Although no formal bidding is required, universities must contemplate prudent business practices and should solicit at least three telephone bids, when possible, with at least one such potential contractor being a woman-based or minority-based entity. It should be the university s practice that, despite no obligation for formal bidding, certain cases for economic benefit may dictate that formal bidding is utilized. Regardless, the selected contractor should not only be the lowest responsive bidder, but a responsible one as well. The selected contractors should have their bid confirmed in writing in a subsequent SPC containing the specifics of the procurement completed, as noted in this section of the manual. b. COMPETITIVE BID PROCUREMENT Projects that exceed the $10,000 Original Threshold Amount must be formally advertised and competitively bid, and awarded to the lowest, responsive, and responsible bidder. - Projects may not be artificially divided so as to constitute a small procurement that is under the threshold. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 9 of 11 Chapter 2.1 - Requirements For Procurement of Construction
4. BONDING THRESHOLDS BID, PERFORMANCE, PAYMENT, & MAINTENANCE Various Original Threshold Amounts...(Adjusted Annually See Article 2.1-1) See Article 2.1-2 for tabulation of when bonds are required Bid Guarantee. A Bid Guarantee is discretionary for any project. Performance Bond (Original Threshold Amounts shown) Thresholds for Contract Bond Use Is Amount of Bond Amounts Discretionary or Required Less Than $25,000 Discretionary $25,000 to $100,000 Required 50% Of Contract Cost (min.) Over $100,000 Required 100% Of Contract Cost Payment Bond (Original Threshold Amount shown) Thresholds for Contract Amounts Bond Use Is Discretionary or Required Amount of Bond Over $100,000 Required 100% Of Contract Cost Maintenance Bond. A Maintenance Bond is discretionary for any project. For the above, Discretionary means at the discretion of the System. Required bond forms are included in Bid Package & Standard Forms of Agreement. Refer to act of December 20, 1967 (P.L.869, No.385), known as the Public Works Contractors' Bond Law of 1967. Sole Source Procurements. The Chief Counsel recommends that consideration be given to requiring bonds for Sole Source Contracts because no other firm may be able to provide the service or construction. 5. SEPARATE PRIME PROCUREMENTS THRESHOLD $25,000 Threshold Amount... (Fixed Threshold, Not Adjusted Annually) Projects with Total Construction Costs equal to or exceeding $25,000 are subject to the Act of May 1, 1913 (P.L.155, No.104), entitled "An act regulating the letting of certain contracts for the erection, construction, and alteration of public buildings, known as the Separations Act. The threshold applies to the Total Project and not to individual contracts within a Total Project. Total Construction Costs means the cost of all separate prime contracts that constitute the project. Projects may not be artificially divided into separate contracts so as to constitute a small procurement that is under the threshold. Projects with Total Construction Costs less than $25,000 are not subject to the Separations Act and may be awarded in accordance with Section 511 of Act 57. Individual Prime Contracts with Construction Costs exceeding $4,000 (fixed) are subject to the Separations Act. Separate Primes, as defined in the Separations Act, include work for Plumbing, HVAC (Heating, Ventilation, and Air Conditioning), and Electrical Construction. General Construction is not covered by the Act and is not required to be a Separate Prime Contract. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 10 of 11 Chapter 2.1 - Requirements For Procurement of Construction
6. PREVAILING WAGES THRESHOLD $25,000 Threshold Amount... (Fixed Threshold, Not Adjusted Annually) Prevailing Wages are required for construction, reconstruction, demolition, alteration, and/or repair work other than maintenance work, done under contract and paid for in whole or in part out of the funds of a public body where the estimated cost of the total project is in excess of twenty-five thousand dollars ($25,000). This does not include work performed under a rehabilitation or manpower-training program. The Prevailing Wage Act, Act No. 442 August 15, 1961 (P.L.987) as amended August 9, 1963, provides the following definition: "Maintenance work" means the repair of existing facilities when the size, type, or extent of such facilities is not thereby changed or increased. NOTE MAINTENANCE This definition of "Maintenance work" is from Act No. 442 and is different from the definition of Maintenance in Act 188. These definitions are provided for different purposes. The definition in Act No. 442 applies to the Prevailing Wages Threshold. The Construction Support Office can provide other information concerning the definition and examples of maintenance to help the Universities determine when projects are maintenance for the purposes of Prevailing Wages. The final determination of when projects are maintenance for the purposes of Prevailing Wages rests with the Department of Labor and Industry. When there is any question, a determination should be requested from the Department of Labor and Industry before the project is advertised. Maintenance is also defined for other purposes in Act 188. See Sec A of this Chapter. NOTE - MAINTENANCE PROJECTS OVER $100,000 According to L&I, Prevailing Wage Rates are not required for maintenance projects over $100,000. NOTE - RESIDENTIAL WAGE RATES & COMMERCIAL WAGE RATES See Article 2.1-3 for discussion of Prevailing Wage Rates Residential Rates For Student Housing. 7. PROCUREMENT DECISION DOCUMENT The Procurement Decision Document should be used by the University to determine and document the following: Determination of the Contract Form Determination of Bonds required for the project Determination of the form of Public Notice The Procurement Decision Document should explain reasons for the determinations and for apparent exceptions to usual methods, including a risk analysis for exceptions. should be reviewed and signed by the University s Contract Officer, indicating approval. Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 - The Process Of Construction Contract Procurement Page 11 of 11 Chapter 2.1 - Requirements For Procurement of Construction
Article 2.1-1 Annually Adjusted Thresholds Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 The Process Of Construction Contract Procurement Article 2.1-1 Chapter 2.1 - Requirements For Procurement of Construction
Article 2.1-2 Procurement Decision Document Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.1-2 Chapter 2.1 - Requirements For Procurement of Construction
Article 2.1-3 Prevailing Wage Rate Residential Rates For Student Housing This Article 2.1-3 also includes related information in the following: Article 2.1-3a THE LETTER FROM Pennsylvania Department Of Labor & Industry Labor Law Compliance Division James A. Holzman, Deputy Chief Counsel July 11, 2002 Article 2.1-3b MEMORANDUM NO. 130, MARCH 17, 1978 U.S. Department Of Labor Standard Of Comparison Projects Of A Character Similar Under Davis-Bacon And Related Acts Engineering / Architectural Instructions for Facilities Projects Chapter 2.1 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.1-3 Chapter 2.1 - Requirements For Procurement of Construction
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.2 Construction Contract Forms CHAPTER 2.2 TABLE OF CONTENTS A. STANDARD CONTRACT FORMS... (See Article 2.2-1) B. SELECTION OF CONTRACT FORM CHAPTER 2.2 LIST OF ARTICLES Article 2.2-1 Current List of Construction Contract Forms Engineering / Architectural Instructions for Facilities Projects Chapter 2.2 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 1 of 7 Chapter 2.2 Construction Contract Forms
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.2 Construction Contract Forms A. STANDARD CONTRACT FORMS The System has created various standard forms of Construction Contracts that are available to the Universities for the purposes of performing construction, maintenance, and repairs for facilities projects. The Construction Contract Forms, known as Standard Forms Of Agreements For Facilities Projects, are listed in Article 2-3 - Construction Contract List. These contract forms and the procedures to administer them are included and discussed in the Facilities Manual, Volume 50, Construction Contract Procurement & Administration For Facilities Projects. All contracts that utilize one of the below Contract Forms must be reviewed and approved by University Legal Counsel and the Office of the Attorney General. All contracts that exceed $500,000 for the contract s term must be reviewed by the Office of General Counsel. Approval times should be considered in the execution process. TYPES OF CONTRACTS & CONTRACT FORMS (See next page for more info) There are 5 Contract Types by which the Standard Forms Of Agreements For Facilities Projects have been categorized as follows: 1. Type One Construction Contracts Specific Projects 1A. 71K100 Specific Facilities Projects < $25,000(fix) (Construction/Maintenance/Repair) 1B. 71K110 Specific Facilities Projects > $25,000(fix) (Construction/Maintenance/Repair) 2. Type Two Construction Contracts Open End Contracts With Unit Prices 2A. SSHE-120 Open End Facilities Requirements Contracts (Prevailing Wage) 2B. SSHE-121 Open End Facilities Requirements Contracts (Non-Prevailing Wage) 3. Type Three Construction Contracts Qualification Contracts 3A. 71K150 Open End Qualified Separate Primes Contract for Facilities Projects Includes Separate Primes of Electrical, Plumbing, HVAC, Mechanical, Fire Protection Includes General Construction which is not a Separate Prime Includes Disciplines, such as Elevators, Asphalt Paving, and others appropriate for Qualification 4. Type Four Construction Contracts Design Build Contracts 4A. SSHE (tba) Specific Design / Build Projects 5. Type Five Construction Statements Qualification Statements 5A. SSHE (tba) Statement of Qualification Engineering / Architectural Instructions for Facilities Projects Chapter 2.2 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 3 of 7 Chapter 2.2 Construction Contract Forms
TYPES OF CONTRACTS & CONTRACT FORMS The below provides brief descriptions explaining the use of the Contract Types and the Standard Forms Of Agreements For Facilities Projects 1. Type One Construction Contracts Specific Projects 1A. 71K100 Specific Facilities Projects < $25,000 (Construction/Maintenance/Repair) 1B. 71K110 Specific Facilities Projects > $25,000 (Construction/Maintenance/Repair) The 71K100 Contract Form is a Specific Contract for Facilities Projects used when Contract Amounts (Total Project Costs) are less than the $25,000 threshold (Fixed Threshold). The 71K110 Contract Form is a companion to the 71K100 Contract Form and is a Specific Contract for Facilities Projects used when Contract Amounts (Total Project Costs) are expected to be greater than the $25,000 threshold (Fixed Threshold). 2. Type Two Construction Contracts Open End Unit Price Contracts 2A. SSHE-120 Open End Facilities Requirements Contracts (Prevailing Wage) 2B. SSHE-121 Open End Facilities Requirements Contracts (Non-Prevailing Wage) The SSHE-120 & SSHE-121 Contract Forms are Open End Facilities Requirements Contracts. A Requirements Contract is an Open End Contract that specifies only Unit Prices for Specific Items under which Individual Work Orders are issued. One Contractor at a University is selected based on a satisfactory response to an Invitation to Bid or to a Request for Proposal that solicits Unit Prices for specific types of work. Individual Work Orders are then issued to the Contractor for each project during the term of the Open End, Requirements Contract. The selection of more than one Contractor would provide differing Unit Prices, therefore, possibly negating the selection of a Contractor for an Individual Work Order based on the lowest price. Forms have been developed for each of a Prevailing Wage Project and Non-Prevailing Wage Project. 3. Type Three Construction Contracts Qualification Contracts 3A. 71K150 Open End Qualified Separate Primes Contract for Facilities Projects The 71K150 Contract Form is a Qualification Contract. Contractors are determined by the System to be qualified to perform the work of a Separate Prime or Discipline based on submission of a satisfactory response (Qualification Application) to an Invitation To Qualify. The Qualified Contractors are provided the opportunity to respond to Invitations To Bid (or Requests For Proposal, as necessary). Projects are awarded to the lowest responsible and responsive bidder with the execution of an Individual Work Order. For contracts NOT expected to exceed $1,000,000 (71K150 only) for the Contract Term, 71K150 Contract Form does not require the signature of the Office of General Counsel. For contracts expected to exceed $1,000,000 (71K150 only) for the Contract Term, 71K150 Contract Form does require the signature of the Office of General Counsel. Engineering / Architectural Instructions for Facilities Projects Chapter 2.2 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 4 of 7 Chapter 2.2 Construction Contract Forms
4. Type Four Construction Contracts Design Build Contracts 4A. SSHE (tba) Specific Design / Build Projects NOT YET AVAILABLE The SSHE (no designation yet) Contract Form is for Design/Build Projects and is still in development. There are issues needing resolution relating to requirements for Prevailing Wages, Separate Primes, and Minority and Women Owned Business Enterprise participation. 5. Type Five Construction Statements Qualification Statements 5A. SSHE (tba) Statement of Qualification (See Example below) Qualification Statements are not Contract Forms, but are statements that declare a firm to be qualified in an area of expertise for which an Invitation To Qualify was issued. Qualification Statements are not contracts or commitments to provide qualifications or to purchase any services, but are a method to identify qualified entities that will most likely be able to provide creative proposals to meet requirements of a project. EXAMPLE: Qualified Private Developers for Student Housing Projects Qualification Statement. A Qualification Statement is used when a Private Developer is determined to be qualified to finance, design, construct, and operate student housing projects, on campus and/or off-campus. Qualification is determined based on the submission of a satisfactory response (Qualification Application) to an Invitation To Qualify. The Qualified Developer is then provided the opportunity to respond to Invitations To Bid (or Requests For Proposal, as necessary). The project is awarded to the best value proposal. Not A Contract Or Commitment. The Qualification Statement for a Private Developer is not a contract or commitment to provide a qualification or to purchase any services, but is a method to identify a Private Developer that will most likely be able to provide creative proposals to meet the diverse student housing needs at the System s Universities. Contract arrangements are very complex. Arrangements utilize a public-private cooperative approach featuring so-called off balance sheet financing, a ground lease with the private developer, and tax exempt bond financing. Generally, the University has little or no privity of contract with the parties actually developing the project. However, there may be University involvement for an on-campus project. The System is not necessarily a party in the contracts for the Private Development Project. However, the Chancellor s Office, through the Chief Counsel s Office and the Facilities Division, is extremely interested in the selection of a Qualified Private Developer and the arrangement of contracts that result in the financing, design, construction, and operation of the project. For any Privately Developed Project, the Chancellor s Office will be involved in certain aspects of project development and review. Detailed discussion of procedures involved in a Private Development Project are not within the scope of this manual and are handled separate from the instructions of this manual. CONSULT WITH THE FACILITIES DIVISION AND THE CHIEF COUNSEL S OFFICE REGARDING ANY PRIVATE DEVELOPMENT PROJECT. Engineering / Architectural Instructions for Facilities Projects Chapter 2.2 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 5 of 7 Chapter 2.2 Construction Contract Forms
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B. SELECTION OF CONTRACT FORM 1. PROFESSIONAL S INVOLVEMENT The Design Professional may be asked to participate in the selection of the appropriate Contract Form for any given construction project. 1A. 71K100 Specific Facilities Projects < $25,000 (Fixed) (Constr./Maint./Repair) The Design Professional may occasionally develop designs to be constructed under Type One Contracts (Specific Facilities Projects) less than the $25,000 threshold (Fixed Threshold). 1B. 71K110 Specific Facilities Projects > $25,000 (Fixed) (Constr./Maint./Repair) The Design Professional will most often design projects to be constructed under Type One Contracts (Specific Facilities Projects) that exceed the $25,000 threshold (Fixed Threshold). 2A. SSHE-120 Open End Facilities Requirements Projects (Prevailing Wage) 2B. SSHE-121 Open End Facilities Requirements Projects (Non-Prevailing Wage) The Design Professional may occasionally develop designs to be constructed under Type Two Contracts (Open Ended Unit Price Contracts). 3A. 71K150 Open End Qualified Separate Primes Contract for Facilities Projects The Design Professional may occasionally develop designs to be constructed under Type Three Contracts (Qualification Contracts). The implementation of this form occurred in 2001 with the Design Of Sprinkler Systems In Residence Halls for the 14 Universities. The use of this contract is expected to increase. 4A. SSHE (tba) Specific Design / Build Projects Not Yet Available The Design Professional is not usually involved in the selection of a Contact Forms for projects that are constructed using Type Four Contracts (Design/Build Methodology) 5A SSHE (tba) Open End Qualified Lease/Purchase Developers (3rd Party Developer) The Design Professional is not involved in the selection of Qualification Statements for the Private Development of Student Housing. These projects are strictly handled by the System. 2. CONSIDERATIONS FOR SELECTION OF CONTRACT FORM The appropriate Contract Form for a construction project is selected while considering the following: Threshold Amounts Project Type and Complexity Procurement Decision Document Available Construction Contact Forms Advertisement to Firms on Qualification Lists (Work Orders issued under Qualification Contracts) Engineering / Architectural Instructions for Facilities Projects Chapter 2.2 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 7 of 7 Chapter 2.2 Construction Contract Forms
Article 2.2-1 Current List of Construction Contract Forms Engineering / Architectural Instructions for Facilities Projects Chapter 2.2 Chapter 2 The Process Of Contract Procure ment For Facilities Projects Article 2.2-1 Chapter 2.3 The Bid Package
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.3 Bid Documents Or Bid Package The terms Bid Documents and Bid Package are used interchangeably in the E/A Manual CHAPTER 2.3 TABLE OF CONTENTS A. OVERVIEW B. DEFINITIONS C. CONTENTS OF BID PACKAGE... (See Article 2.3-1) D. PREPARATION E. BID FORM ONE BOUND IN BID PACKAGE & SECOND SEPARATE COPY CHAPTER 2.3 LIST OF ARTICLES Article 2.3-1 Bid Package & Contract Documents Engineering / Architectural Instructions for Facilities Projects Chapter 2.3 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 1 of 5 Chapter 2.3 The Bid Package
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.3 Bid Documents Or Bid Package The terms Bid Documents and Bid Package are used interchangeably in the E/A Manual A. OVERVIEW This chapter briefly discusses preparation of the Bid Package and provides an outline of the Bid Package. Chapter 3 will detail the specific items included in the Bid Package. B. DEFINITIONS Detailed definitions are provided in Chapter 16, Definitions. Bid Package or Bid Documents. Includes the Bid Manual and the Drawings. - Project Manual. The 8 1/2' x 11 Bound Portion of the Bid Package. - Drawings. Design Professional s Drawings. Contract Documents. Includes Contract Agreement, Bid Package, Addenda, Bid Proposal (Bid Form), Contract Bonds, and any modifications (Change Orders or as appropriate). Engineering / Architectural Instructions for Facilities Projects Chapter 2.3 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 3 of 5 Chapter 2.3 The Bid Package
C. CONTENTS OF BID PACKAGE An outline of the contents of the Bid Package in provided in Article 2-4 The Bid Package is divided into the following major 6 sections: Section 1 Bid Information & Instructions Section 2 Proposal Instructions & Bid Form Section 3 Contract Form Section 4 Contract Conditions Section 5 Technical Specifications Section 6 Contract Drawings The Bid Package is not necessarily labeled and divided with the above Sections 1-6, but the sections of the package are ordered as above. The new Bid Protest Procedures provided in Act 142 of 2002 will be incorporated into Rider D of the Agreement. Make sure the contract scope meets the University s needs and is contractually correct. D. PREPARATION The Design Professional prepares or assembles the Bid Package. The package is developed based on the Scope of Work that has been developed for the project, agreed to by the System, and is contained in the Professional s Agreement with the System Standard Form of Agreement for Professional Design Services. As defined in the Agreement, both the Design Professional and the University have responsibility in the preparation of the Bid Package, whether separately prepared or jointly prepared. Design Professional s Responsibility. The aspects of the Bid Package that are part of the Design Professional s responsibility are described in the Professional s Agreement. University s Responsibility. Certain aspects of the Bid Package are generally performed by the University, such as establishing the scope of the project, approving the construction schedule, and approving the design concept. If the University does not sign the title page of the drawings, the University should provide a letter to the Design Professional that the Bid Package has been reviewed by the University. The Design Professional should assure that the Bid Package is complete when issued and all necessary University approvals have been obtained. University s Options. Certain aspects of the Bid Package, such as the Notice to Contractors, the Bid Form, and Request for Prevailing Wage Determination, may be optionally prepared by the University. Such options shall be reflected in the Professional s Scope of Work. Engineering / Architectural Instructions for Facilities Projects Chapter 2.3 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 4 of 5 Chapter 2.3 The Bid Package
Universities may differ in their optional selections in preparation of the Bid Package. When a University elects to prepare certain documents or perform certain tasks involved in preparation of the Bid Package, the University and the Design Professional should coordinate performance of that work, allowing sufficient time to incorporate final documents, whether prepared by the University or the Design Professional, into the Bid Package, making a complete Bid Package. Before the University elects to perform work related to preparation of the Bid Package, the University should evaluate the following: - Are University staff absolutely required to prepare elected documents? - Would the University s staff be better utilized in performing other tasks and having the Design Professional prepare optional items? - Does University staff have sufficient workload, such that optional items should be prepared by the Design Professional? E. BID FORM TWO COPIES REQUIRED ONE BID FORM BOUND IN BID MANUAL ONE BID FORM PROVIDED SEPARATELY Two copies of the Bid Form are provided to each requestor of the Bid Package as follows: 1. One copy of the Bid Form is included in the Bid Manual, the 8-½ x 11 bound portion of Bid Package that is provided to each requestor. 2. A second copy of the Bid Form, separately bound, is provided to each requestor of the Bid Package to be used for the Bidder s proposal submission. Engineering / Architectural Instructions for Facilities Projects Chapter 2.3 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 5 of 5 Chapter 2.3 The Bid Package
Article 2.3-1 Bid Package Engineering / Architectural Instructions for Facilities Projects Chapter 2.3 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.3-1 Chapter 2.3 The Bid Package
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.4 The Design Phase CHAPTER 2.4 TABLE OF CONTENTS A. OVERVIEW B. PROFESSIONAL PROCUREMENT AND ADMINISTRATION C. SEPARATE PRIMES D. BID FORMATS AND BID COMPONENTS... (See Article 2.4-1) E. MBE/WBE PROGRAM & POLICY... (See Article 2.4-2) F. PROPRIETARY & NON-PROPRIETARY SPECIFICATIONS G. FINISHES... (See Article 2.4-3) H. LIQUIDATED DAMAGES CHAPTER 2.4 Article 2.4-1 Article 2.4-2 Article 2.4-3 LIST OF ARTICLES Defined Bid Formats With Bid Components MBE/WBE Proactive Effort Policy & Provisions Proactive Solicitation & Encouraged Participation In System Facilities Projects For Certified MBE/WBE Enterprises Finishes Specifications for Acquisition Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 1 of 35 Chapter 2.4 The Design Phase
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.4 The Design Phase A. OVERVIEW This chapter briefly discusses certain aspects of the Design Phase of a project, including the following: 1. There are certain aspects of the Design Professional s Agreement that the University must keep in mind during the execution of the design, such as the Design Professional s Scope of Work, the Design Schedule, and actions that may affect the Professional s Fee. 2. There are certain decisions that must be made regarding the selection of the Separate Prime Contracts, how finishes will be specified, and the need for any components that are Proprietary. 3. The Design Professional and the University must decide on values to be assigned for reasonable participation by Certified MBE/WBE Firms. 4. The University must determine and justify amounts to be assigned for Liquidated Damages. 5. The Design Professional and the University must decide on the best Bid Format to be used for the Project. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 3 of 35 Chapter 2.4 The Design Phase
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B. PROFESSIONAL PROCUREMENT & ADMINISTRATION 1. PROFESSIONAL CONTRACTS The design of a project is either performed by the University or by a Design Professional. If by the Design Professional, design is performed either under a Specific Contract for Professional Services or an Open Ended Contract for Professional Services a. Specific Contract for Professional Services. Currently, for the design of a specific project, the University performs all the procedures for the procurement of a Design Professional, including advertisement, review of proposals, selection of the Design Professional, negotiations with the Design Professional, and execution of the contract b. Open Ended Contract for Professional Services. Design Professionals holding Open End Contracts are either procured by the Chancellor s Office or the University. Centrally Held Open End Agreements. Currently, the Chancellor s Office provides a limited number and type of Professional Services under Open End Agreements. These Agreements have been utilized by the Universities for certain projects. Individual Work Orders are written against these Agreements by the Office of the Chancellor or by the University under the supervision of the Construction Support Office. University Held Open End Agreements. Predominantly, the Universities individually procure their own Design Professionals under Open End Agreements for various types of architectural and engineering services. Term of the Agreement. Currently, Open End Agreements consists of 2 initial years, with 2 options for renewal of 2 years each, for a maximum of 6 years. Agreement Limits. Current limits placed on Open End Agreements for Professional Services are as follows: Compensation Limit Individual Work Limit $475,000 Per Year $100,000 Per Project Limits are exceeded as approved and amended by the Chancellor s Office. The above contract forms and their limits are those that are currently used by the System. The System regularly reviews the procurement of Professionals in order to improve the efficiency of procurement by the Universities within Act 57 requirements, whether specific procurement by an individual University, regional procurement by several Universities, or central procurement by the Chancellor s Office. The System is expected to develop additional types of specific, regional, and central procurements. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 5 of 35 Chapter 2.4 The Design Phase
2. PROFESSIONAL S SCOPE OF WORK The Scope of Work for design services is developed and contracted for as follows: After a Design Professional has been appropriately selected, the University will issue a Request for Proposal that includes a Scope of Work. The University may note any exceptions to the EA Manual. The Design Professional will develop a Fee Proposal for the Scope of Work developed by the University. The Fee Proposal may include clearly noted revisions to the Scope of Work that should first be discussed with the University. The Fee Proposal should not exceed the expectancies of the Scope of Work. The University and the Design Professional will negotiate and determine the final Fee Proposal for a negotiated Scope of Work that is to be included in the Contract Agreement or Individual Work Order. During the process of the work, both the Design Professional and the University must be aware of and keep in mind the negotiated Scope of Work that was agreed upon and included in the Agreement. In discussing and requesting any services during the process of the work, the University should determine if the services are part of the negotiated Scope of Work or if services could be considered to be additional work. Any additional work approved by the University and performed by the Design Professional must be included in an appropriately executed Amendment to the Contract Agreement or Individual Work Order. 3. PROFESSIONAL S SCHEDULE a. Design Professional s Adherence to Schedule The Design Professional is expected to adhere to the Time Schedule that was agreed to and included in the Professional s Agreement with the University. The Agreement includes remedies for a Design Professional s failure to adhere to the schedule, if the failure is the fault of the Design Professional. Those remedies, as stipulated in the Professional s Agreement, may include: amending the schedule and directing the Professional to expeditiously proceed with the design of the Project, in which case the System may hold the Professional responsible for any costs attributable to the delay termination of the Agreement for default of the Professional, in accordance with the provisions of the General Conditions of the Agreement. The Design Professional s ability or inability to meet the Time Schedule should be reflected in the University s written review of the Design Professional s performance. b. University s Performance Under The Agreement The University should be aware of aspects of the University s work that may affect the Professional s performance, such as, length of time required to review design submissions. If the University exceeds any prescribed time limits for review, there must be sufficient and documented justification, otherwise, the University could become part of the cause of delays in completion of the design. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 6 of 35 Chapter 2.4 The Design Phase
4. PROFESSIONAL S FEE & MULTIPLE BASE BIDS When using Multiple Base Bid Formats, whether Additive, Deductive, or Matrix forms, and when using Alternate Items, the basis for the Architect s Fee must be considered with respect to providing a fair and reasonable fee for the preparation of all the necessary designs, whether they are selected for construction or not. In order to prepare Bid Documents that clearly represent the Project and the intent of all base Bids to the Bidders, the Design Professional may need to produce additional designs, specifications, and drawings to show all Base Bid variations. The Professional s Design Fee negotiated for a Project should be based on the total design value to include all Base Bids, whether the Base Bid forms include Additives, Deductives, Matrices, or Alternates. The University should recognize that if a Project is awarded that is not the largest Scope Of Work that has been designed by the Design Professional and desired by the University, then the Design Professional s Fee will be a larger percentage of construction than if the desired Project was obtained. See example below: Example: The Design Professional provides Deductive Base Bid Designs that result in the following bids and award: Base Bid 1 = $600,000 Largest Scope of Work Base Bid 2 = $550,000 Base Bid 3 = $500,000 Least Scope of Work Awarded Project If the Design Professional s Fee is $50,000, the fee should not be solely evaluated as a percentage of Base Bid 3 (10% of Awarded Project), but could be evaluated as percentage of the Base Bid 1 (8.3% of Awarded Project). In evaluating any fee, remember that the Design Professional was required to design multiple Base Bids (multiple Scopes of Work), not just the awarded Base Bid. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 7 of 35 Chapter 2.4 The Design Phase
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C. SEPARATE PRIMES 1. GENERAL DISCUSSION OF SEPARATE PRIME CONTRACTS a. Definition Separate Prime Contract This Discussion. For the purposes of discussion in this chapter, we want to deal in general terms as to the discussion of Separate Prime Contracts. Here, we are not dealing with the separation of trades, but the execution of individual contracts by Separate Prime Contractors. Separate Prime Contractors are Contractors with which the System enters into a Contract (Separate Prime Contract) to complete portions of the separately bid work. Separation of Trades Not This Discussion. In the context of construction projects for the Pennsylvania State System of Higher Education, the term Separate Primes is used in relation to The Separations Act, commonly known as the Separate Primes Legislation. That Act of May 1, 1913 (P.L. 155, No. 104), is "An act regulating the letting of certain contracts for the erection, construction, and alteration of public buildings" and deals with the separation trades of including Plumbing Construction, HVAC Construction, and Electrical Construction. That act and its related thresholds for applicability are discussed in Chapter 2.1. 2. MULTI - PRIME COORDINATION Typically, the General Contractor is identified as the lead contractor and is responsible to coordinate construction activities as specified in various sections of the specifications to assure efficient and orderly installation of each part of the work. This requirement is evident in the following Division I Specifications: Section 01040 Project Coordination Section 01200 Project Meetings Section 01300 Submittals Section 01315 CPM Scheduling The identified lead contractor is responsible for the coordination, production, maintenance, and distribution of overall construction schedule. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 9 of 35 Chapter 2.4 The Design Phase
3. QUALIFIED SEPARATE PRIMES The Pennsylvania State System of Higher Education does, to a certain extent, qualify Contractors for the performance of certain Separate Prime Work. Chapter 2.2 discusses Type Three Construction Contracts (Qualification Contracts Contract Form 71K150). When the Qualification Process is used to procure construction, a list of Pre-Qualified Firms is maintained by the Construction Support Office and used for advertisement of projects, as allowed by Act 57. The Qualified Firms have executed Qualification Contracts with the System. In response to an Invitation To Bid (or Requests For Proposal, as necessary), the Qualified Firms may submit Bid Proposals. The project is awarded to the lowest responsible and responsive Bidder with the execution of an Individual Work Order. There are no dollar limits for these Qualification Contracts, other than the need for the signature of the Office of General Counsel when the compensation is expected to exceed $1,000,000 for the term of the Qualification Contract. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 10 of 35 Chapter 2.4 The Design Phase
D. BID FORMATS AND BID COMPONENTS 1. TYPES OF BID FORMATS & BID COMPONENTS There are currently two types of Bid Formats (the One Price Bid Format and the Multiple Base Bid Format). These Bid Formats are composed of one or more Bid Components (Lump Sum Amount, Unit Price Amounts, Total Bid Amount, Alternate Price Amounts). The Multiple Bid Format can take one of three forms (Deductive Base Bid Format, Additive Base Bid Format, or Matrix Base Bid Format). a. Types of Bid Formats. There are two basic types of Bid Formats: One Price Bid Format Multiple Base Bid Format (Commonly called Base Bid Format) b. Forms of Multiple Base Bid Formats. There are several forms of the Multiple Base Bid Format: Deductive Base Bid Format (Preferred Multiple Base Bid Format) Additive Base Bid Format Matrix Base Bid Format c. Bid Components for Bid Formats. Each Bid Format may consist of one or more of the following Bid Components: Lump Sum Amount Unit Price Amounts Total Bid Amount (Includes Lump Sum Amount and Unit Price Amounts) Alternate Price Amounts (Adds or Deducts if utilized during Construction) 2. AWARD OF PROJECTS The creation of a clear Bid Format allowing for the clear and easily decisive award of a project is critical. a. One Total Bid Amount. In preparing any Bid Format with more than one Bid Component, the Design Professional and the University must assure that there is only one Total Bid Amount by which the Project will be awarded to the lowest responsible and responsive Bidder. b. Additional Criteria for Award. If there are additional criteria by which the Bidders are to be evaluated, such as certified qualifications (licenses) or certified experience (whether by the firm and/or by employees of the firm), that criteria should be stated or referenced in the Notice To Contractors. c. Competition. Awards must never be made based on selection of a Contractor for any part of the project. All awards must be based on competition in conjunction with meeting any additional criteria. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 11 of 35 Chapter 2.4 The Design Phase
3. APPLICATION OF BID FORMATS & BID COMPONENTS In the selection and preparation of a Bid Format, the University needs to consider all of the following and their relationships: Scope of Work that is desired for construction Scope of Work that is attainable Allocation that is available for the project Estimated Cost of Project, including any additive or deductive components Adaptability of Project for use of Additive or Deductive Base Bid Format Presence of certain undefined conditions that are conducive to Unit Price Items Presence of certain variable conditions that are conducive to Alternate Price Items Factors affecting Allocation Announcement Possibility of Obtaining Additional Funds The impact that Additive/Deductive Base Bids and Alternates could have on the design fees. For each type of Bid Format (One Price Bid Format and Multiple Base Bid Format), there are various versions that can be used as listed in the following: One Price Bid Format See Article 2-5 a. One Price Bid Format Format A b. One Price Bid Format with Unit Price Items Format B c. One Price Bid Format with Alternate Price Items Format C d. One Price Bid Format with Unit Price and Alternate Price Items Format D Multiple Base Bid Format See Article 2-5 a. Deductive Multiple Base Bid Format Format A b. Additive Multiple Base Bid Format Format B c. Matrix Multiple Base Bid Format Format C The preferred Multiple Base Bid Format HAS BEEN the Deductive Base Bid Format. This format starts with a Base Bid No. 1 that includes the full Scope of Work that the University wants to construct for the Allocation. Deducts are then provided in successive Base Bids, deducting items by priority, resulting in the minimum project that the University wants to receive. This manual includes the Additive and Matrix Forms to not prohibit the University from using such forms when they are necessary and responsibly used. There is opinion that the Additive Form may provide the University with better value. Therefore, the University should consider the use of such form. There may be cases where the University may need to use Unit Price Items and/or Alternate Price Items with the Multiple Base Bid Format. The complexity of the format should always be a consideration. A format with too many options is not recommended. A format should be logical, easy to follow, and easy to edit. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 12 of 35 Chapter 2.4 The Design Phase
4. SELECTION OF BID FORMAT The System currently has no strict criteria for the use of a One Price Bid Format or a Multiple Base Bid Format. Within the concepts discussed below, the selection of a suitable Bid Format is left to the judgment of the University. Also, the University should be mindful of the provisions of the Design Professional s Agreement with the System regarding Redesign Requirements Upon Receipt of Bids (see next page). The following concepts should be adhered to: a. Selection of Base Bid Format - One Price or Multiple Base Bid Format One Price Bid Format. Certain projects, by their nature, are limited to the use of the One Price Bid Format. The project may be such that there are no components of sufficient size that could be deducted or added to the project in order to use the Additive or Deductive Base Bid Format. Multiple Base Bid Format. The Multiple Base Bid Format, whether additive, deductive, or matrix, is used to assure that some level of the project will be awarded within the Allocation. Additive and Deductive Base Bid Formats are generally used regardless of the Preliminary Construction Estimate and the Allocation. However, if the Allocation is exceeded to a maximum of 10%, a Deductive Base Bid Format should be used. b. Allocation and Scope of Work (Preliminary Design Phase) Preliminary Construction Estimate vs. Allocation. Generally, for a well-defined design, the Design Professional s Preliminary Construction Estimate is expected to be within 5% to 10% of the Allocation. For a project that is well defined and can be reasonably estimated, if the Preliminary Construction Estimate exceeds the Allocation by more than 10%, the University will not use the Deductive Base Bid Format in the HOPE of attaining the entire scope of work for Base Bid Number 1. A project may have components that are less than well defined and cannot be reasonably estimated, whether due to components that are less definable or uncertain market conditions in the construction industry. In that case, if the Preliminary Construction Estimate exceeds the Allocation by 10% to 15%, the University may use judgment and use the Deductive Base Bid Format. c. Allocation and Scope of Work (Final Design Phase & Bid Phase) Final Construction Estimate vs. Allocation. The Final Construction Estimate should not exceed the Allocation for Base Bid No. 1, whether for a One Price Bid Format, Deductive Base Bid Format, or Additive Base Bid Format. However, the University may use judgment when the Final Construction Estimate exceeds the Allocation by as much as 10%. This judgment should be exercised with great care, considering the size of the project (the dollar amount of the excess), market conditions, and the ability of the University to obtain additional funds. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 13 of 35 Chapter 2.4 The Design Phase
d. Redesign Requirements Upon Receipt of Bids Refer to the Standard Form of Agreement for Professional Services, Article 2 for requirements as to when the Professional is or not paid for redesign when the allocation is exceeded. UNDER CONSTRUCTION (Further discussion will be provided here in a future revision to this EA manual. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 14 of 35 Chapter 2.4 The Design Phase
e. Announcement of Allocation At The Bid Opening For certain Multiple Base Bid Formats, the announcement of the Allocation at the Bid Opening, prior to actually opening the bids, is a control to help avoid the appearance of bid shopping. The possibility of giving the appearance of bid shopping exists when the Allocation is not announced at the Bid Opening. The System strives to award all projects in accordance with governing regulations. However, in cases where the University has followed all mandated regulations, there should be the option to add funds to a project when the University s interests are jeopardized. If the Allocation is announced at the Bid Opening, then the Base Bid that most closely fits the Allocation should be awarded, unless the University s interests are jeopardized. Otherwise, the project may need to be rebid with the same or a revised scope of work. If the Allocation is not announced at the Bid Opening and additional funds are added to the Allocation to obtain a larger scope of work, the University could be viewed as bid shopping if the project is awarded to a Contractor other than the one that would have been awarded the project that fits the Announced Allocation. The following chart provides criteria regarding the Allocation Announcement and obtaining additional fund for the various Base Bid Formats. BID FORMATS Allocation Announcement & Obtaining Additional Funds After Bid Opening BID FORMAT ONE PRICE BID FORMAT ALLOCATION ANNOUNCEMENT At Bid Opening Announcement Not Required Obtaining ADDITIONAL FUNDS After Bid Opening Additional Funds Can Be Obtained Without Rebidding MULTIPLE BASE BID FORMAT Deductive Base Bid Format (Preferred Format) Additive Base Bid Format (Not Used By DGS) Matrix Base Bid Format Announcement Not Required Announcement Required Announcement Required Additional Funds Can Be Obtained Without Rebidding Additional Funds Cannot Be Obtained Without Rebidding Additional Funds Cannot Be Obtained Without Rebidding Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 15 of 35 Chapter 2.4 The Design Phase
5. MISCELLANEOUS CONSIDERATIONS When using Multiple Base Bid Formats consideration must be given to the following: a. Use of Multiple Base Bid Formats b. Sufficient Design For Each Base Bid In The Multiple Base Bid Formats c. Number of Base Bids d. Delta Between Base Bids e. Architect s Fee f. Separate Prime Contracts g. MBE/WBE REAA h. Avoid Bid Shopping and the Appearance Of Bid Shopping (Selecting a Contractor) i. Clearly identify the Award Amount a. Use of Multiple Base Bid Formats The Multiple Base Bid Format must be used with extreme care, allowing the Bidders to bid on construction and related components that are significant and reasonable in size and have the ability to be separated from the basic project. A poorly designed Multiple Base Bid Format could confuse the Bidders and result in a Bid Protest, thereby, delaying the project. There may be cases where the University may need to use Unit Price Items and/or Alternate Price Items with the Multiple Base Bid Format. However, the complexity of the format should always be a consideration. A format that has too many options is not recommended. A format should be logical, easy to follow, and easy to edit. b. Sufficient Design For Each Base Bid In The Multiple Base Bid Formats In order for Bidders to successfully bid on the various Base Bids for a project, the Design Professional must adequately represent each Base Bid in the Bid Documents, whether by specification and/or drawings. This may require alternative drawings for each Base Bid. c. Number of Base Bids When using Additive/Deductive Base Bids, the number of Base Bids selected is based on several factors: The University wants to construct the maximum amount of a project that the Allocation can purchase. The University must prioritize components that can be added to or deleted from a project to arrive at an amount of construction that the Allocation can purchase. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 16 of 35 Chapter 2.4 The Design Phase
d. Delta Between Base Bids When using Additive/Deductive Base Bids, consider the estimated difference between consecutive Additive/Deductive Base Bids. The estimated difference between Base Bids should be sufficient to realize a significant difference between bids. This assessment is somewhat subjective based on the size of the project, the Allocation, the number of possible Base Bids, and the value of each addition/deduction. A Construction Estimate must be provided for each Base Bid. e. Architect s Fee (Also see Section B of this Chapter) When using Multiple Base Bid Formats, whether Additive, Deductive, or Matrix forms, and when using Alternate Items, the basis for the Architect s Fee must be considered with respect to providing a fair and reasonable fee for the preparation of all the necessary designs, whether they are selected for construction or not. f. Separate Prime Contracts When using Additive/Deductive/Matrix Base Bids for a project that has multiple Separate Prime Contracts, all contracts must show the same relative Base Bid Numbers, whether there is a change or not in the Base Bids for all Separate Prime Contracts. Example: When there is no change between Base Bid No. 1 and Base Bid No. 2 for any given Prime Contract, Base Bid No. 2 is stated as follows: Base Bid No. 2 All work as indicated in Base Bid No. 1. g. MBE/WBE Reasonable Effort Award Amount (REAA) When using Deductive Base Bids, consider the relationship between the Base Bid Estimates and the REAA (Reasonable Effort Award Amount). As the cost of the project is reduced through successive Base Bids, the REAA should not become excessive in relation to the estimated cost of the Base Bids. This situation would most likely occur on small projects rather than large projects. The REAA may be specified in two ways: 1) A Fixed Dollar REAA for all Base Bids, being a separate amount for each Separate Prime Contract. 2) Fixed Dollar REAA for Base Bid No. 1, being a separate amount for each Separate Prime Contract. The Fixed Dollar REAA is determined to be an Approximate Percentage REAA (an amount not published in the Bid Documents). For consecutive Base Bids, the Approximate Percentage REAA is used to determine the Dollar REAA for consecutive Base Bids. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 17 of 35 Chapter 2.4 The Design Phase
h. Avoid Bid Shopping & Appearance of Bid Shopping (Selecting a Contractor) In the utilization of any Base Bid Format, the University must avoid Bid Shopping and even the appearance of Bid Shopping. Bid Shopping is illegal. For Additive and Matrix Base Bid Formats, controls that help a University avoid Bid Shopping are as follows: (i) Allocation Announcement. When required, the Allocation is announced before the actual opening of bids at the Bid Opening. (ii) After bids are opened and if the Allocation is exceeded, the University cannot obtain additional funds for a project, unless the project is rebid. These controls are required for the Additive Base Bid Format and the Matrix Base Bid Format. The use of the Deductive Base Bid Format is permitted with some flexibility, therefore, the above controls are not required. However, if a Contractor submits a bid that is within the Allocation (Example Contractor One submits the lowest bid that is within the Allocation for Base Bid Number 3), the University must not obtain additional funds for the project so as to select another Contractor that has the lowest bid on Base Bid Number 1 (Example Contractor Number Two has a lower bid than Contractor Number One for Base Bid Number 1, but the low bid is higher than the Allocation). i. Clearly Identify The Award Amount The Base Bid Format must clearly define the basis for award - the amount that will be used to award the Contract to the lowest responsible and responsive bidder. Therefore, indicate if the Unit Price Items and Alternate Price Items are included in the Award Amount. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 18 of 35 Chapter 2.4 The Design Phase
E. MBE/WBE PROGRAM & POLICY MBE or Minority Business Enterprise WBE or Women's Business Enterprise Also refer to Chapter 3 of this EA Manual for additional discussion of MBE/WBE information, criteria, and provisions. 1. DEFINITIONS The following definitions are according to the Department of General Services, the Bureau of Contract Administration and Business Development (BCABD). MBE or Minority Business Enterprise - A small business (for-profit business concern)] that is one of the following: (i) A sole proprietorship, owned and controlled by a minority. (ii) A partnership or joint venture controlled by minorities in which at least 51% of the beneficial ownership interest is held by minorities. (iii) A corporation or other business entity controlled by minorities in which as least 51% of the voting interest and 51% of the beneficial ownership interest are held by minorities. WBE or Women's Business Enterprise - A small business that is one of the following: (i) A sole proprietorship, owned and controlled by a woman. (ii) A partnership or joint venture controlled by women in which at least 51% of the beneficial ownership is held by women. (iii)a corporation or other entity controlled by women in which at least 51% of the voting interest and 51% of the beneficial ownership interest are held by women. Certified MBE/WBE Enterprise. A business enterprise that has a current and written designation from a duly constituted public body, attesting that the business enterprise has submitted evidence satisfying the minimum criteria established by that body, for recognition of ownership by an individual or group of individuals recognized as a minority due to race or gender. If a business enterprise is not certified by the Commonwealth of Pennsylvania, a certification from another duly constituted public body is acceptable. That other public body may be a municipality, township, county, or authority that has a certification program that substantially conforms to the program of the BCABD. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 19 of 35 Chapter 2.4 The Design Phase
2. THE SYSTEM S MBE/WBE POLICIES AND PROCEDURES a. Purpose The Pennsylvania State System of Higher Education (System) provides provisions in construction contracts for the purposes of (i) providing for the proactive solicitation of Certified MBE/WBE Enterprises and (ii) encouraging the participation of Certified MBE/WBE Enterprises in construction projects undertaken by the System. Chapter 3 of this EA Manual contains the following provisions that are to be included a Bid Manual: MBE/WBE PARTICIPATION Proactive Solicitation & Encouraged Participation In System Facilities Projects For Certified MBE/WBE Enterprises b. MBE/WBE Provisions The following applies to the System s MBE/WBE policies, provisions, and procedures: are applicable to all construction contracts administered by the System for maintenance, repair, alteration, or improvements to existing facilities and the construction of new facilities. are unique to Pennsylvania State System of Higher Education are based on the System s elective policies and procedures for the proactive solicitation to and encouragement of Certified MBE/WBE Enterprises for reasonable participation in the System s facilities construction projects. provide a competitive process whereby Certified MBE/WBE Enterprises can compete for portions of the project. do not guarantee awards to Certified MBE/WBE Enterprises, since responsible Non-Minority Firms can be solicited for the same work and can be awarded the work if their quotes or bids are lower and responsive. c. Proactive And Reasonable Effort The System expects that Non-Minority Bidders of the System s facilities projects will proactively make a reasonable effort in solicitations and awards to Certified MBE/WBE Enterprises for reasonable portions of facilities projects. Proactively Make A Reasonable Effort. The System expects Bidders to perform proactive solicitations of Certified MBE/WBE Enterprises without discrimination against any individual or business due to race or gender. This solicitation is to be aggressive effort by the Bidder to obtain written quotes for subcontracts and/or material purchases from Certified MBE/WBE Enterprises. Quotes received by the Bidder are to be submitted with the Bid so as to equal or exceed a Reasonable Effort Award Amount established for the contract. Reasonable Effort Award Amount (REAA). The REAA is reasonable portion of a facilities project, that is, an amount of the work for which bids or quotes can reasonably be expected to be obtained from Certified MBE/WBE Enterprises based on the scope of work of the project and current demographics concerning available qualified MBE/WBE subcontractors, suppliers, and vendors. The System has the exclusive and sole right to establish this amount for any and all contracts that are bid. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 20 of 35 Chapter 2.4 The Design Phase
d. The System s Evaluation of A Bidder s Reasonable Effort In order to assist the Bidder in providing documentation that will show that the Bidder has fulfilled the requirements of the Bid Documents regarding MBE/WBE participation, the Bidder is required to complete and provide the following form contained in the Bid Documents, along with supporting documentation: Exhibit A Solicitation Information Sheet For MBE/WBE Subcontractors And Suppliers The System has developed policies and procedures to determine if a Non- Minority Bidder has proactively made a reasonable effort to solicit and award reasonable portions of a facilities project to Certified MBE/WBE Enterprises. The Bidder s failure to document and prove such performance with the Bid Proposal is cause for a bid to be rejected. In this review process, the System reviews the following: (1) The Non-Minority Firm s Written Solicitations to Certified MBE/WBE Firms, including the scope of work solicited and amount of time allotted for response to solicitation. (2) Written Quotes received by the Non-Minority Firm from Certified MBE/WBE Firms. (3) Amounts Committed by the Non-Minority Firm to the Certified MBE/WBE Firms and Non-Minority Firms, including Letters of Commitment. (4) The Non-Minority Firm s Documentation that supports Solicitations and Awards. (5) The Non-Minority Firm s Explanatory Information when the requirements of the Bid Documents have not been met, including when the REAA cannot be equaled or exceeded. (6) Certification of the MBE/WBE Firms (7) The list of the Certified MBE/WBE Firms that were solicited for each specific scope of work. (8) Descriptions of the scope of work or materials for which solicitations were NOT made and the reasons why. (9) Reasons why written commitments were not made to Certified MBE/WBE Firms that submitted the lowest written quotes. (10) Reasons, if known, why written quotes were not received from solicited firms. (11) Reasons why solicited and unsolicited written quotes were not accepted. (12) Other review considered necessary. e. Certified MBE/WBE Firms As Prime Contractors Certified MBE/WBE Enterprises are encouraged to submit bid proposals for facilities projects directly to the System for the work of Prime Contractors. Certified MBE/WBE Enterprises that bid as Prime Contractors automatically meet the requirements of these provisions and are not required to make proactive and reasonable effort in order to award work to other Certified MBE/WBE Enterprises. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 21 of 35 Chapter 2.4 The Design Phase
3. DETERMINATION OF THE REAA a. Set-Asides Are Illegal The REAA must not be a Set-Aside. A Set-Aside, as used in awarding work to MBE/WBE Firms, is a fixed amount, whether a percentage or a dollar value, that is reserved for MBE/WBE Firms. With a Set-Aside, there is no option for the Prime Contractor to obtain competitive prices from Non-MBE/WBE Firms for the work that has been reserved for MBE/WBE Firms. Set-Asides have been determined to be illegal by the courts and must not be used. b. Opportunity for Competition Certified MBE/WBE Firms are given the opportunity to compete for identified work along with Non-Minority Firms. This is the defining factor that makes the REAA not a Set-Aside the opportunity for competition. c. Determination of the REAA The System has the exclusive and sole right to establish the REAA for any and all contracts that are bid. The Reasonable Effort Award Amount (REAA) is a reasonable portion of a facilities project, that is, an amount of the work for which bids or quotes can reasonably be expected to be obtained from Certified MBE/WBE Enterprises based on the scope of work of the project and current demographics concerning available qualified MBE/WBE subcontractors, suppliers, and vendors. The Design Professional s Role. In determining a suitable REAA for each Separate Prime Contract for a Project, the Design Professional must do the following: Assess the project and determine a reasonable value of one or more scopes of work that could be bid to MBE/WBE Firms for each contract. Be sufficiently informed as to the demographics of available and qualified MBE/WBE subcontractors, suppliers, and vendors. d. Limits The System has not specified any minimum or maximum amounts that must be specified for an REAA, whether by percent of contract or dollar value. The key aspects are: reasonable portion of a facilities project that can reasonably be expected to be obtained and the scope of work of the project that fits the current demographics of available and qualified MBE/WBE subcontractors, suppliers, and vendors. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 22 of 35 Chapter 2.4 The Design Phase
e. Deductive and Additive Base Bids When using Deductive Base Bids, consider the relationship between the Base Bid Estimates and the REAA. As the cost of the project is reduced through successive Base Bids, the REAA should not become excessive in relation to the estimated cost of the Base Bids. This situation would most likely occur on small projects rather than large projects. The REAA may be specified in two ways: 1) A Fixed Dollar REAA for all Base Bids, being a separate amount for each Separate Prime Contract. 2) A Fixed Dollar REAA for Base Bid No. 1, being a separate amount for each Separate Prime Contract. The Fixed Dollar REAA may be determined to be an Approximate Percentage REAA that is a percentage of the Estimated Contract Cost. For consecutive Base Bids, the Approximate Percentage REAA is used to determine the Dollar REAA for consecutive Base Bids. The Approximate Percentage REAA is an amount not published in the Bid Documents. Only the Dollar REAA is specified for each Separate Prime Contract. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 23 of 35 Chapter 2.4 The Design Phase
F. PROPRIETARY & NON-PROPRIETARY SPECIFICATIONS Before entering into a discussion of Proprietary and Non-Proprietary Specifications, a distinction must be made between Sole Source Procurement and Proprietary Specifications. The instructions of this Chapter pertain to Proprietary Specifications and Non-Proprietary Specifications, and do not pertain to Sole Source Procurements. Since there can be confusion regarding the understanding of the definitions of Sole Source Procurement and Proprietary Specifications, both terms will be defined below. 1. DEFINITIONS a. Sole Source Procurement The following is based on Legal s Contract Manual, Section II - Common Types of Contracts, Paragraph J. One Available Provider. A Sole Source Contract implies there is only one available provider as follows: (1) There is only one person or company that can provide the contractual services needed. (2) Any attempt to obtain bids would only result in one person or company being available to meet the need. Award Without Competition (Advertisement Not Necessary). A Contract may be awarded for a supply, service, or construction item, without the necessity of competition, when the Contracting Officer determines in writing that one of the following statutory conditions exists: (1) Only a single Contractor is capable of providing the supply, service, or construction. (2) A federal or state statute or federal regulation exempts the supply, service, or construction from the competitive procedure. (3) The total cost of the supply, service, or construction is less than the amount established by the State System for small, no-bid procurements as dictated by the policy on small procurements. (4) It is clearly not feasible to award the Contract for supplies or services on a competitive basis. (5) The services involve (i) the repair, modification, or calibration of equipment and (ii) they are to be performed by the manufacturer of the equipment or by the manufacturer s authorized dealer, provided the Contracting Officer determines that bidding is not appropriate under the circumstances. (6) The Contract for supplies or services is in the best interest of the Commonwealth. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 24 of 35 Chapter 2.4 The Design Phase
Approval. Before entering into a Sole Source Contract, a statement of justification must be sent in advance to University Legal Counsel certifying that the contract is appropriate as a Sole Source. University Legal Counsel will review the statement and either approve or disapprove the certification. If approved, the certification will be returned to the university. A copy of the signed certification must be included with the contract when it is submitted for final legal review and approval. A sample Sole Source Certification is contained an Appendix of Legal s Contracts Manual b. Proprietary Specifications The Glossary of Terms in Legal s Contracts Manual provides the following definition for Proprietary Specifications: A description of the physical or functional characteristics or the nature of a supply, service, or construction item, including a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery which is specific to a contractor either as a result of a patent or copyright. Approval to use Proprietary Specifications is at the discretion of the University s Contracting Office. Generally, approval is not required from the Office of the Chancellor. c. Advertisement And Bidding Are Key Criteria In determining whether an item is a Sole Source Procurement (requiring preapproval) or a Proprietary Specification, the issues of advertisement and bidding is are key criteria. An item is a Sole Source Procurement requiring certification when (i) the procurement is not advertised or otherwise bid in a way that satisfies the usual source selection requirements of the Commonwealth Procurement Code and System policies, and (ii) only one vendor is contacted and capable of providing the supply, service, or construction. This situation can occur when the System determines that there is only one vendor that can provide a supply, service, or construction. The System then procures that item, either directly or through the services of a Contractor, without the need to advertise and bid the item. An item is a Proprietary Specification, though only provided by one vendor when the item is within a Bid Package (a project larger) and can be procured by a Contractor from only single provider (subcontractor or supplier to the Contractor). This case is not considered to be a Sole Source Procurement for which preapproval is required. The entire project that contains the apparent sole sourced item is advertised and bid. The procurement is to be performed by a Contractor. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 25 of 35 Chapter 2.4 The Design Phase
2. SPECIFYING NON-PROPRIETARY PRODUCTS For construction projects, there are several ways in which the System requires the listing of non-proprietary products and materials in Bid Documents: Method 1: Method 2: Method 3: Method 4: List A Minimum of 2 Manufacturers List Certain Manufacturers And Corresponding Models List Required Salient Features And/Or Performance Criteria List Required Industry Standards for a Product Or Material Method 1: List a Minimum of 2 Manufacturers Specify two (2) manufacturers. Model numbers are not required. If model numbers are indicated, they must be indicated for all listed manufacturers. Required to provide description of product or performance criteria. Recommended to list any salient features or industry standards - that are considered necessary to meet the design intent, and - to establish the minimum acceptable level of product or material definition in the event a substitution is proposed. Every technical specification and drawing that lists specific materials or products shall list a minimum of two (2) different manufacturers, that, in the opinion of the Design Professional, will provide materials or products that will meet the expectations and requirements of the project. The Design Professional must know which products (manufacturer and model numbers) from the listed manufacturers are equivalent, acceptable, available, and meet the requirements of the project. The Design Professional cannot shift that responsibility to the Contractor, for example, by either of the following: - specifying only one manufacturer with a model number and listing other approved alternate manufacturers without model numbers. - simply stating or approved equal. The Contractor must meet the technical requirements of a product, but may not be required to know the design nuances of the project. Although a product may be technically equivalent, it may not be acceptable. An item may be identified on the basis of design if applicable. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 26 of 35 Chapter 2.4 The Design Phase
Method 2: List Certain Manufacturers And Corresponding Models The University may require that certain manufacturers are suitable for inventory control (ordering similar replacement parts) or other reasons. The following is an example: 1. York Model XYZ 2. Carrier Model ABC 3. Trane Model 123 4. No Substitutions An item may be identified on the basis of design if applicable. Method 3: List Required Salient Features And/Or Performance Criteria Specify the product or material by - listing the required salient features and/or performance criteria. Do not list any manufacturers or their corresponding model numbers. Salient Items: List specific characteristics (such as size) without being proprietary. Criteria: Industry Standards ASTM, Federal Standards OSHA, and/or Federal Specifications FS-XXX-1111 Method 4: List Required Industry Standards for a Product Or Material The only requirement is for the product or material to meet - Industry Standards AWI, NWWDA, ACI, ASTM, NFPA, AISC - Federal Standards OSHA, or - Federal Specification FS-XXX-1111. No requirement for listing any description of product or performance criteria in Part 2. Do not list any manufacturers or their accompanying model numbers. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 27 of 35 Chapter 2.4 The Design Phase
3. SPECIFYING PROPRIETARY PRODUCTS Proprietary Products Are Not Sole Source Procurements Requiring Pre -Approval a. General Compatible Equipment. The University has the right to require that new equipment shall be compatible with the existing equipment, and that all warranties on existing equipment and systems shall be maintained and shall not be altered or negated by new equipment or systems. Therefore, there may be good and sufficient reasons for the University to want to use one particular manufacturer. Approval Procedures. When the University needs to perform a Proprietary Procurement, the following procedure should be followed: 1) Evaluation of Other Vendors. The University should evaluate the equipment of other vendors and generate a memorandum setting forth which vendors were looked at and why their equipment is not suitable for interconnection with existing equipment, or why a particular manufacturer is the only suitable product. 2) Sole Source Fact Sheets. The University should utilize the Sole Source Fact Sheets (Sole Source justification). 3) Review By University s Contracting Officer. Standard procedure for any procurement of construction by the University is to complete the Procurement Decision Document. This document is discussed and provided as an Article in this Chapter 2. Under Source Selection is indicated whether there are any Sole Source Procurements and Proprietary Specification Use. This form is completed and submitted to the University s Contacting Officer for review and approval. b. The Design Professional s Role In Procuring Proprietary Products Evaluation of Other Vendors. The University may request the Design Professional to perform the evaluation of the equipment of other vendors and generate a memorandum setting forth which vendors were looked at and why their equipment is not suitable for interconnection with existing equipment, or why a particular manufacturer is the only suitable product. Selection Of Materials And Products. The Design Professional must provide the design for materials and products that will meet the expectations and requirements of the project. The Design Professional must know which products (manufacturer and model numbers) are acceptable and available. The Design Professional cannot shift that responsibility to the Contractor, for example, by either of the following: - specifying only one manufacturer with a model number and listing other approved alternate manufacturers without model numbers. - simply stating or approved equal. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 28 of 35 Chapter 2.4 The Design Phase
Specification Regarding Proprietary Specifications. For any technical specification that is approved as proprietary, the Design Professional shall add the following words in the text of the specification. For this [---specification or product---], the Contracting Officer has approved the [---product, system, or manufacture---] as a proprietary source in the best interests of the University, and therefore, no substitutions will be permitted. The provisions of Section 01631 Product Substitutions does not apply to the proprietary product. This provision does not preclude review of the Sole Source and/or Proprietary Item by the Office of the Chancellor or the Office of Chief Counsel if required by System policies. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 29 of 35 Chapter 2.4 The Design Phase
4. ALTERNATE PROCUREMENT PROCESS Request For Proposal Process Use of the Request For Proposal (RFP) Process does not specify a sole source designation and may be the best method to ensure that the University achieves the desired equipment compatibility at a reasonable cost. The RFP process allows the University to evaluate the proposals on a technical basis and a price basis. The technical and price evaluations are weighted by the University based on the worth of maintaining equipment compatibility. The RFP Process allows various treatments of the technical and price evaluations so as to accommodate the Universities needs. Examples are as follows: If appropriate to express the importance of compatibility, the technical portion of the analysis can be weighted more than the price portion. Criteria for the technical evaluation portion of the proposal analysis can have components that give greater merit to compatible systems and less merit to non-compatible systems. To promote competition, the RFP can allow for alternate proposals to provide for a complete replacement system. Another way to integrate the value of compatibility in the price evaluation is to allow an analysis of the cost to the University over the life of the equipment for the differential operating costs of having to operate and maintain two separate systems instead of one compatible system. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 30 of 35 Chapter 2.4 The Design Phase
G. FINISHES The selection and specification of finishes on any given project can be a very intricate and detailed process. Finishes are often selected and coordinated into Finish Packages during the design process through presentations to user groups and other organizations on any given campus. On projects with extensive Finish Packages and/or high profile areas requiring approval of the finishes before the bid process, the following option is offered: Preparation and Approval of Two Finish Packages. The Design Professional, as part of the design process, prepares and presents complete Finish Packages to the University for approval. A minimum of two complete packages will need to be approved for incorporation into the specifications in order to comply with nonproprietary requirements while maintaining the desired finishes, colors, etc. selected by the University. Preparation of Specifications. The specifications can then be written to identify Finish Packages. The specifications must stipulate that the Contractor shall provide a complete package as identified and cannot mix materials from one package with another. Each package will have its own unique set of materials, manufactures, etc. as required. Therefore, materials from one package cannot match manufacturers and/or models from another package. More instructions will be provided in a subsequent Chapter of this AE Manual. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 31 of 35 Chapter 2.4 The Design Phase
This Page Blank Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 32 of 35 Chapter 2.4 The Design Phase
H. LIQUIDATED DAMAGES 1. DEFINITION Liquidated Damages may be defined as follows: - An appropriate amount, agreed to during the Design Phase by the University and identified in the Bid Documents, reduced to writing in the Contract, for damages that would result from delay caused by the Contractor and harmful to the University. Liquidated Damages are used to compensate the University for incurred damages that result from the Contractor not completing all or portions of the work as identified in the Contract. - A reasonably forecasted rate of just compensation for harm caused by late delivery or untimely performance of the contract. Liquidated Damages should be defined based upon a reasonable estimate, prepared during the Design Phase, of the probable losses or expenses to the University. The reasonable estimate should be made as close to completion of the Bid Documents as reasonable. Liquidated Damages should not be punitive and are not negative performance incentives. Liquidated Damages should not be specified as a penalty, as a means of keeping the Contractor on time without being related to any estimate of probable loss. The amount of Liquidated Damages is usually set at a Daily Rate, starting from a defined date. The defined date may be extended by execution of a Change Order to the Contract. The Daily Rate should include expected expenses associated with delayed completion such as: - the estimated daily cost of the University s inspection and superintendence. - the estimated daily cost for delayed use of food services. - the estimated daily cost for delayed use of student rooms in Residence Halls, such as rental costs for other space provided for students. - the estimated daily cost for delayed use of office space, such as rental costs for other space provided for offices. - Other real expenses, such as Professional fees. There may be more than one rate for Liquidated Damages if the University expects that probable damage to the University to change with time (i.e. a graduated rate). Example: A rate of $200 per calendar day may apply to the first 10 days, then a rate of $500 per calendar day may apply from the 11 th day. The total of Liquidated Damages may be limited by a maximum amount and/or a maximum period for assessing Liquidated Damages if the limits reflect the maximum probable damage to the University. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 33 of 35 Chapter 2.4 The Design Phase
2. CALCULATION & ASSESSMENT OF LIQUIDATED DAMAGES Liquidated Damages should be considered for all construction contracts. Generally, any delay to a project will result in additional costs to the University. There may be no additional costs for the University other than administrative costs. Liquidated Damages must be calculated to estimate the actual financial impact that the University will incur if the contract is not completed on time. Roof replacement projects may or may not be extremely critical to time and may deserve a low Liquidated Damage Rate. A project dealing with food service or a residence hall may demand an extremely high Liquidated Damage Rate. If Liquidated Damages are specified, the per diem calculation should begin after completion dates that have been changed/extended through executed Change Orders. If Liquidated Damages are specified and the project will extend beyond the contract completion date, retainage should be adjusted upward to cover Liquidated Damages. If Liquidated Damages are to be assessed, a Change Order must be executed to adjust the contract amount for the Liquidated Damages. If the Contractor does not sign the Change Order, the University may issue a Unilateral Change Order and reduce the value of the Contract. When Liquidated Damages are specified, the Contract Documents must clearly define the date after which the damages are to be assessed and the method of calculation. Liquidated Damages may be assessed for the Contractor s failure to execute the required Contract Bond within the time specified. This will result in payment to the System of the Contractor s proposal guaranty in the amount equal to the difference between the Contractor s proposal and the next lowest responsive proposal, or the proposal guaranty amount, whichever is less. The System shall have the right to award the contract to the Contractor providing the next lowest responsive and responsible proposal. Liquidated Damages may be assigned to construction phases. Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 34 of 35 Chapter 2.4 The Design Phase
3. EXAMPLES OF LIQUIDATED DAMAGE CLAUSES a. Use of Two Rates For A Project Liquidated Damages for Delayed Use of Residence Hall Rooms. Refer to Chapter 3, Notice To Contractors This rate should be based on a realistic estimate of what it will cost to house students in other facilities until the project is ready for occupation. Liquidated Damages for Delayed Use of Project. Refer to Chapter 3, Notice To Contractors This rate should be based on an estimate of what it will cost the University for expenses other than housing students, because the project is not available, such as administrative costs, costs for Professional Services, and other identifiable costs. Liquidated Damages By Construction Phase Refer to Chapter 3, Notice To Contractors Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Construction Contract Procurement Page 35 of 35 Chapter 2.4 The Design Phase
Article 2.4-1 Defined Bid Formats With Bid Components Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.4-1 Chapter 2.4 The Design Phase
Article 2.4-2 MBE/WBE Proactive Effort Policy & Provisions Proactive Solicitation & Encouraged Participation In System Facilities Projects For Certified MBE/WBE Enterprises Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.4-2 Chapter 2.4 The Design Phase
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.5 The Bid Phase CHAPTER 2.5 TABLE OF CONTENTS A. OVERVIEW B. ADVERTISEMENT... (See Article 2.5-1) C. PRE-BID CONFERENCE... (See Article 2.5-2) D. ADDENDA... (See Article 2.5-3) E. RECEIPT OF BIDS F. OPENING AND READING OF BIDS G. EVALUATION OF BIDS... (See Article 2.5-4) H. AWARD... (See Article 2.5-5) I. BID PROTEST CHAPTER 2.5 Article 2.5-1 Article 2.5-2 Article 2.5-3 Article 2.5-4 Article 2.5-5 LIST OF ARTICLES Bidding / Builders Exchanges Pre-Bid Conference Agenda Addenda - Example Forms for Evaluations of Bids Checklist - Determination of Contractor Responsibility Checklist - Determination of Contractor Responsiveness Sample Letter - Request for Bidder s Information Checklist Professional s Responsibilities for Bid Evaluations Award of Project Sample Letter Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 1 of 25 Chapter 2.5 The Bid Phase
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.5 The Bid Phase A. OVERVIEW 1. SYSTEM S RESPONSIBILITY & PROFESSIONAL S INVOLVEMENT Whether the System performs all aspects of the Contract Procurement Process (the Bidding Phase) or delegates parts of the process to the Design Professional, the System has the primary responsibility for the process. The System may elect to perform all aspects of the process with assistance from the Design Professional. The System may elect, by specification in the Design Professional s proposal and the subsequent Agreement, to delegate specific services to the Design Professional with oversight and final decisions by the System. The extent of the Professional s involvement shall be based on the University s manpower needs and abilities to accomplish the process. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 3 of 25 Chapter 2.5 The Bid Phase
2. THE SYSTEM S OVERSIGHT a. Advertisement Of Bid Opportunity. Whether performed by the System or the Design Professional, the System shall maintain sufficient control of the content of the advertisement, locations of the advertisement, determination of the due date, determination of the time and location of the bid opening, and information on inquiries. b. Receipt & Safeguarding Of Bids. The System shall receive all bids at an appropriate and specific office specified in the Notice To Contractors (NTC). The System shall safeguard all received bids, maintaining confidentiality, until the Bid Opening. The receipt and safeguarding should never be delegated to the Design Professional. (See Chapter 3 for the NTC and handling of sealed envelopes.) c. Public Bid Opening & Recording. Whether conducted by the System or the Design Professional pursuant to contract terms, the System shall maintain sufficient oversight and control of the Bid Opening and Recording of Bids to assure compliance with all requirements for the process. d. Evaluation of Bids. After the bid opening, the System shall conduct and coordinate the evaluation of the bids received to determine if the lowest bidders were responsible and responsive to the requirements specified in the Bid Package. Whether evaluations are performed solely by the System or with the Design Professional s involvement, all evaluations and the roles of participants should be carefully documented. e. Acceptance and Rejection of Bids. The System has the sole responsibility to accept or reject the bids, determine the lowest responsible and responsive bidder, and determine if the project should be awarded or rejected. The System shall carefully review all evaluations and recommendations in the determination. The System s Contracting Staff shall discuss appropriate issues with upper management (such as Vice Presidents for Administration & Finance), Legal Counsel, and the Chancellor s Office (Facilities Division/Construction Support Office), when necessary. f. Bids Higher Than Cost Allocation. If the bids exceed the cost allocation by 5% or more, the following should be considered: Rebidding. Determine possible reasons for bids higher than expected. Determine if Bidders misunderstood areas of the Bid Package. Determine if the project should be redesigned with a reduced scope and/or an alternate selection of materials, resulting in a project that would be within the cost allocation. The Design Professional will respond in accordance with the Design Professional s Agreement with the System. g. Award. For projects advertised as firm, fixed price, low bid contracts, the System has the responsibility to award to the lowest responsible and responsive bidder. For projects advertised as Requests for Proposals, the System has the responsibility to evaluate proposals in accordance with the advertised selection criteria and select for contract negotiation the Proposer with a best value proposal, one that is in the best interests of the System in accordance with the advertised criteria. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 4 of 25 Chapter 2.5 The Bid Phase
B. THE BID PROCESS 1. THE SYSTEM & AGENTS The Bid Process is accomplished by the System with assistance from the Design Professional to the extent specified in the Design Professional s Agreement. Throughout the Bid Phase, the System and all parties contracted with the System must be aware of their contracted duties, responding expeditiously and appropriately in accordance with their agreements and assigned responsibilities. 2. BID PHASE COMPONENTS The Bid Phase consists of the following components: a. Advertisement. The Bidding Phase is initiated with the development of the Notice To Contractors and the advertisement of the project. Advertisement is discussed in the next section of this chapter. b. Distribution of Bid Packages. Copies of Bid Packages are provided to Bidding Services without their request or a fee, and to interested contractors, after contractor request and payment of a fee, Distribution of the Bid Package cannot be made until the time specified in the Notice To Contractors. Drawings and specifications issued with the Bid Package shall be labeled Issued For Bid and marked with the date of when the Bid Package is initially available. In some instances, the University will reproduce and distribute bid packages. In this case, the Professional shall supply one reproducible set of signed and sealed drawings and specifications to the System representative at the project location. A list of requestors must be maintained for use in sending Addenda. c. Purchase of Bid Packages. When purchased from the Design Professional, the following applies: - Prospective Bidder s may purchase Bid Packages from the Design Professional for a non-refundable fee (Bid Document Fee). - The Bid Document Fee, a fair and reasonable price, shall be determined by the Design Professional and reviewed/approved by the System. - The Bid Document Fee need not be determined for inclusion in the Design Professional s proposal developed and included in the Design Services Agreement. - The Prospective Bidders shall request the Bid Documents from and submit fees to the Design Professional for Bid Documents produced and distributed by the Design Professional. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 5 of 25 Chapter 2.5 The Bid Phase
- The University may elect one of the following procedures for the reimbursement of the Design Professional s costs for providing Bid Packages to prospective Bidders: - Option No. 1 Not Included In Fee Proposal. The Design Professional does not need to provide in the Fee Proposal any reimbursable expenses for the preparation and distribution of the Bid Packages that are paid for by prospective Bidders. The Design Professional makes a direct sale to the prospective Bidder for the fair and reasonable price that was determined by the Design Professional and reviewed/approved by the System. The Design Professional may put a reimbursable expense in the Fee Proposal for Bid Documents that are distributed to Bidders Services. - Option No. 2 Included In Fee Proposal. The Design Professional provides a reimbursable expense in the Fee Proposal for the preparation and distribution of the Bid Packages that are paid for by prospective Bidders. The Bid Document Fee should approximate the cost of reproduction and distribution of the bid documents. The System is then responsible for reimbursing the Design Professional the following as reimbursable expenses: i. the difference between (1) the Bid Document Fee, and (2) the actual cost of reproducing and distributing the bid documents ii. the cost for bid document sets provided to Bidding Services, to the System, and to each Separate Prime Contractor awarded a contract (a maximum of 5 copies to each prime). Timely Requests for Bid Documents. The Design Professional shall estimate the number of Bid Packages to be distributed and have sufficient Bid Packages available for immediate distribution upon request. If requests are not made within a reasonable time, then the Design Professional is not responsible to immediately distribute the requested documents, but will do so as soon as possible after the request. d. Pre-Bid Conference. A Pre-Bid Conference is conducted to discuss the project, highlight the bid documents, receive questions from Bidders and conduct a site walk. Attendance at the Pre-Bid Conference is not mandatory. Summary Pre-Bid Conference minutes shall be issued by Addendum to all requestors of Bid Documents. Refer to Article for example. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 6 of 25 Chapter 2.5 The Bid Phase
e. Addenda to the Bid Set are issued as necessary to all requestors of Bid Documents. f. Bids are received by the System, publicly opened, and tabulated. g. Bids are then reviewed to determine the lowest responsible and responsive bidder as defined by bid criteria and legal authority. h. Award. If there are no Bid Protests, a Construction Contract is awarded: For projects advertised as firm, fixed price, low bid contracts, the System has the responsibility to award to the lowest responsible and responsive bidder. For projects advertised as Requests for Proposals, the System has the responsibility to evaluate proposals in accordance with the advertised selection criteria and to award to the Proposer with a best value proposal, one that is in the best interests of the System in accordance with the advertised criteria. Awards are subject to the System s standard terms and contracts. i. Bid Protest. If there is a Bid Protest, the System will handle the process in accordance with current policy and procedures. Based on amendments to the Commonwealth Procurement Code in Act 142 of 2002, new policies and procedures have been developed for the handling of Bid Protests. These new policies and procedures will be incorporated into the EA Manual and the Bid Manual expeditiously. Refer to Chapter 3 of this EA Manual Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 7 of 25 Chapter 2.5 The Bid Phase
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C. ADVERTISEMENT 1. ACT 57 REQUIREMENTS FOR ADVERTISEMENT The advertising (public notice) requirements of Act 57, The Commonwealth Procurement Code, are specified as follows: 512. Competitive sealed bidding. (a) Conditions for use.-- Contracts shall be awarded by competitive sealed bidding except as otherwise provided in section 511 (relating to methods of source selection). (b) Invitation for bids. -- An invitation for bids shall be issued and shall include a procurement description and all contractual terms, whenever practical, and conditions applicable to the procurement. (c) Public notice.-- Adequate public notice of the invitation for bids shall be given a reasonable time prior to the date set for the opening of bids. The purchasing agency shall establish written policies and may promulgate regulations regarding methods of public notice. The method of public notice may include any of the following: (1) Electronic publication which is accessible to the general public. (2) Advertisement as provided for in 45 Pa.C.S. 306 (relating to use of trade publications). (3) Issuance of invitations for bids to bidders on the solicitation mailing list of the purchasing agency. (4) Publication in a newspaper of general circulation. (5) Where prequalification is a requirement of submitting a bid, notification to all contractors who have been prequalified by the purchasing agency. Copies of invitations to bid shall be made available to any interested person upon request to the purchasing agency. Purchasing agencies may establish procedures for the distribution of invitations to bid including the imposition of a fee to reimburse the agency for the costs of photocopying and mailing. The Commonwealth Procurement Code requires adequate public notice of an Invitation For Bid by utilization of at least one of the above methods. 2. DESIGN PROFESSIONAL S INVOLVEMENT The Design Professional and the System agree on the information that is to be included in advertisements and the Notice To Contractors. The Design Professional or the University prepares the Notice to Contractors that is to be included in the Bid Package. The System or the Design Professional (when specified by the Design Services Agreement) prepares the advertisement, the contents of which are coordinated with the Notice To Contractors, for submittal to the following: Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 9 of 25 Chapter 2.5 The Bid Phase
3. PENNSYLVANIA BULLETIN The System also utilizes the PA Bulletin for the advertisement of projects. The Pennsylvania Bulletin is administered by the following office: Department of General Services Vendor Services Section 415 North Office Building Harrisburg, PA 17125 Phone: 717-787-2199 or 717-787-4705 The Request To Advertise in the PA Bulletin is submitted in one of 2 ways: Request To Advertise Form STD-179 (Hard Copy). A hard copy of the request may be submitted to the Vendor Services Section on Commonwealth Form STD- 179 Request To Advertise In The State Contracts Information Section Of The PA Bulletin (Commodity, Services, And Construction Contracts) Request To Advertise Form STD-179 (On-Line). The request may be submitted on-line at the following DGS web address: http://www.dgs.state.pa.us/indexie.htm click on Forms at top http://www.dgs.state.pa.us/forms.htm click on Online STD-179, "Request to Advertise" http://btb.state.pa.us/dgs/std179/std179.htm Request To Advertise Viewing Advertisements (On-Line). Advertisements in the PA Bulletin can be viewed through the following web address: http://www.dgs.state.pa.us/comod/main.asp 4. BIDDER S SERVICES Bid Opportunities Along with the Public Notice as required by Act 57, the Design Professional shall send copies of the Bid Package without charge to the Bidding/Builders Exchanges and other locations that the Design Professional and the System believe will result in the submission of competitive bids. A list of Bidding/Builders Exchanges is provided in Article 2-5. Costs for reproducing and distributing copies of Bid Documents to Bidding/Builders Exchanges are typically reimbursable expenses in accordance with the terms of the Design Professional s Agreement. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 10 of 25 Chapter 2.5 The Bid Phase
D. PRE-BID CONFERENCE 1. Schedule. The System and the Design Professional will determine the date of the Pre-Bid Conference. The conference date will be announced in the advertisement, allowing a sufficient number of days after the advertisement for the Bidders to review the Bid Package and formulate responsible questions concerning the project. The conference is typically scheduled within 7 to 12 calendar days from the start of a 30 calendar day bid period. 2. Attendees. The System and the Design Professional shall attend the Pre-Bid Conference. The meeting may be conducted by either the System or the Design Professional. The System should always maintain sufficient oversight and control to assure proper execution of the Conference. List attendees in minutes of meeting. 3. Questions From Bidders. The advertisement for the Pre-Bid Meeting should specify the submittal of written questions from prospective Bidders for acceptance either at a specified date prior to the conference and/or acceptance at the conference. 4. Responses To Questions. All questions shall be answered as concisely as possible. All responses should be in accordance with the requirements of the specifications contained in the Bid Package. Responses should not offer additional information or meander away from the original question. If further investigation is necessary, a response will be provided in writing. NO RESPONSES WILL BE FINAL UNTIL ISSUED IN WRITING IN ADDENDUM. The answers to all questions must be distributed to all Bidders by Addendum. If a question identifies the need to change the Bid Documents, the Bid Documents shall be changed in the body of an Addendum, not in the meeting minutes or responses to questions. 5. Minutes. The minutes of the Pre-Bid Conference shall be prepared by the Design Professional and reviewed by the System. The System s review comments shall be incorporated as necessary and appropriate prior to distribution of the minutes. The Design Professional will distribute the minutes as part of an addendum to the Bid Package. All written questions received will be repeated in the minutes and answered in the minutes. 6. SUGGESTED DOs & DON Ts OF PRE-BID MEETINGS (Not All Inclusive) Do discuss a general scope of work,...as specified in the Bid Package. Do discuss any unusual conditions,...as specified in the Bid Package. Do discuss procedures (MBE/WBE & otherwise),...as specified in the Bid Package. Do discuss schedule and liquidated damages,...as specified in the Bid Package. Do discuss unusual or new contractual conditions,...as specified in the Bid Package. Do discuss required bid submittal information,...as specified in the Bid Package. Do refer to and repeat specific clauses and specifications to answer questions. Do allow time for attendees to develop additional questions (in other words, a brief period of silence does not mean the conference is over) Don t add words to what is specified in the Bid Package,...unless by Addendum. Don t offer additional information,...unless by Addendum. Don t provide the estimate for the project,...other than Cost Range. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 11 of 25 Chapter 2.5 The Bid Phase
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E. ADDENDA 1. SYSTEM APPROVAL Addenda shall be coordinated with and approved by the System before issuance. The Design Professional shall coordinate with the applicable System representative at the project location to obtain approval, which may include actual signature of acceptance, prior to issuance to Bidders. The Design Professional shall coordinate the actual approval process desired by the University prior to the Bid Phase of the project. 2. PREPARATION TIME FOR BIDDING ADJUSTMENTS Addenda must be issued so as to provide the Bidders at least seven (7) calendar days preparation time before bid opening. No preparation time is required if the addenda contents are administrative in nature and do not require additional estimating adjustments by the Bidders. No Addenda should be issued to be received less than two (2) calendar days before the scheduled bid opening date with out extending the Bid Opening Date. 3. CONTENTS OF ADDENDA A sample Addendum is provided in Article 2-5.3 Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 13 of 25 Chapter 2.5 The Bid Phase
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F. RECEIPT OF BIDS The Bid Documents shall clearly specify the date, time, and location where Bids are to be received. The Contractor is responsible to assure that the Bid Proposal arrives at the office specified in the Notice To Contractors. The System is not responsible for hand deliveries unless brought to the specific office specified in the Notice To Contractors. Bid Proposals shall be submitted in sealed envelopes. (See Chapter 3, Notice To Contractors) If a Bid Proposal is submitted within a sealed express mail envelope or other mailing package, the contained Bid Proposal shall be sealed. The outside of express mail envelops or other mailing packages shall indicate that a Bid is enclosed for the named project. The Bidder shall identify the Bid Proposal on the outside of envelope, generally in the lower left hand corner with the following information, but as specified in the Bid Package: Project Name Contract Number Bid Opening Date Bid Opening Time Bid Proposals shall be received by the System at the time and place specified in the Notice To Contractors. Bid Proposals shall be stamped by the System with the date and time of receipt. All received Bids should be secured in a secure place prior to the Bid Opening. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 15 of 25 Chapter 2.5 The Bid Phase
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G. OPENING AND READING OF BIDS AT BID OPENING 1. WHAT BID PROPOSALS ARE ELIGIBLE TO BE READ? For a Bid Proposal to be read at the Bid Opening, it must conform to the following: The Bid Proposal must be received before the deadline. The Bid Proposal must be received at the specified location. The Bid Proposal must be labeled and identifiable. The Bid Proposal must be sealed. A Bid Proposal not conforming to ANY ONE OR MORE of the above is INELIGIBLE and WILL NOT BE READ. 2. WHEN IS THE PROJECT ALLOCATION ANNOUNCED? The Project Allocation must be announced when using the Additive Multiple Base Bid Format and Matrix Multiple Base Bid Format. The Project Allocation is not announced when using the One Price Bid Format or the Deductive Multiple Base Bid Format. 3. WHAT IS READ FROM EACH ELIGIBLE BID? The only item necessary to be read to the attendees of the Bid Opening is the Lump Sum Price (amount to determine award) for a specified Base Bid. For the One Price Bid Format, only the Lump Sum Price is read. If utilized, Unit Prices and Alternate Prices need not be read. For a Multiple Base Bid Format, only the Lump Sum Price for each Base Bid is read. 4. WHAT ITEMS OF AN ELIGIBLE BID ARE CHECKED? The entire Bid Proposal is subject to review at the Bid Opening. However, the only necessary item to be checked at the Bid Opening is the presence of a readable award price. The University may elect to verify the acknowledgement of addenda. Following the Bid Opening, the University and/or the Design Professional will verify all the information contained in the Bid Proposal that is identified as the apparent low bid. 5. WHAT IS ANNOUNCED AT THE BID OPENING? In addition to the reading of the appropriate items for each Bid Proposal, the Apparent Low Bidder is announced. 6. WHAT SHOULD NOT BE ANNOUNCED AT THE BID OPENING? The System need not announce any perceived problems in the Bid Proposal, except those observed in the Lump Sum Price for a specified Base Bid. The System need not announce an award. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 17 of 25 Chapter 2.5 The Bid Phase
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H. EVALUATION OF BIDS 1. RESPONSIBILITIES a. The System The System should lead the evaluation of the bids, but may delegate certain responsibilities to the Design Professional. The System will make the final determination concerning the lowest responsible and responsive bidder. b. The Design Professional The Design Professional may assist in the evaluation of bids. The extent of the Design Professional s evaluation services must be clearly stated in the Design Professional s Proposal and subsequent Agreement with the System, whether the Standard Form of Agreement or an Individual Work Order for Open End Contracts. When requested, the Design Professional shall provide written results of the evaluations and make recommendations to the System concerning those evaluations. 2. BID TABULATION The University should prepare a Bid Tabulation of all bids received. The Bid Tabulation should be a clear tabular presentation that shows All the Separate Prime Contracts for the project All the Bidders that submitted Bid Proposals All the Base Bids The Lump Sum Price for each Base Bid Date and time of Bid Opening Names of witnesses The apparent low bidder for each Base Bid should be easily identifiable. The Project Allocation should be provided on the Bid Tabulation when The Project Allocation must be announced when using the Additive Multiple Base Bid Format and Matrix Multiple Base Bid Format. The Project Allocation should not be provided on the Bid Tabulation when The Project Allocation is not announced when using the One Price Bid Format or the Deductive Multiple Base Bid Format. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 19 of 25 Chapter 2.5 The Bid Phase
3. EVALUATIONS OF APPARENT LOW BIDDERS In order to determine if the Apparent Low Bidder is the lowest responsible and responsive bidder, the Bid Proposal should be evaluated with respect to the following: a. Is The Contractor Responsible?...See Article 2.5-4 Is the Contractor capable of performing and completing the Project in accordance with the Contract? In order to answer this, the following are evaluated: 1) Financial Information. Has the Contractor provided information relative to his financial resources, and met the requirements listed in Instructions to Bidders, Rider C, with regard to current assets over current liability in relation to the bid price? 2) Qualification Information. Has the Contractor provided information relative to required qualifications and met the qualifications required to complete the work? 3) References. Has the Contractor provided references on successfully completed contracts. Were these references contacted with the result that the referenced work experience was applicable to our project requirements, and that the work was performed to the satisfaction of the Owner? 4) Schedule Commitment. Has the Contractor stated that the firm is able to comply with the project schedule, taking into consideration all existing business commitments and projects in progress? 5) Ability To Perform. Has the Contractor stated that the firm has the ability, the necessary organization, and work experience to perform the scope of work? 6) Bonding Ability. Has the Surety's agent verified that the Contractor has sufficient bonding capacity and will be issued Contract Performance and Payment Bonds? 7) Past Performance. Has the Contractor performed responsibly on past projects? Inadequate past performance should be supportable with documented evidence and discussed with University Counsel. b. Is The Contractor Responsive?...See Article 2.5-4 Has the Contractor correctly submitted all information requested in the Bid Form? 1) Proposal Form. Is all requested information correctly provided? 2) Contract Compliance, Non-Discrimination, and Business Certification - Are all requested notarizations, seals, and signatures provided? 3) MBE/WBE. Is Exhibit A filled out properly? Is additional evaluation necessary? 4) Bid Guaranty. Is Bid Bond completed as requested? (System form, bond percentage, name & address, bond date, signature, seal and power of attorney.) Is a check used as Bid Guaranty and is the amount correct? Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 20 of 25 Chapter 2.5 The Bid Phase
c. Other Evaluations 1. Evaluation of Bid Amounts received with respect to the Professional s Estimate. 2. If the Contractor s Bid does not reflect the Project s value or the estimate, verify the Contractor s understanding of the scope of work and question the Contractor regarding errors in the Bid. 3. Review of technical and qualification documents that are required to be submitted with the Bid. 4. Other appropriate reviews. 4. EVALUATIONS OF MBE/WBE COMPLIANCE UNDER CONSTRUCTION CURRENTLY DEVELOPING NEW LANGUAGE AND EXHIBIT A Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 21 of 25 Chapter 2.5 The Bid Phase
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I. POSTING OF BIDS After the Bid Opening, the University should make the results of the Bid Opening available to Contractors and others as follows: Posting of the Bid Tabulation on a web site. The Bid Proposals can be placed in a binder, and at the request of an interested individual, an appointment is made by the individual to view the Bid Proposals at an appropriate University office. Other means as appropriate. For other requested information, contact the on-campus Right-To-Know Officer (an officer has been appointed for each University). Contact University Legal Counsel before releasing information. The Design Professional should not responsible for the distribution of bid results. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 23 of 25 Chapter 2.5 The Bid Phase
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J. AWARD After a thorough evaluation of the Bid Proposal that is determined to be the lowest responsible and responsive bid, the project may be awarded. If there are no Bid Protests, a Construction Contract is awarded to the lowest responsible and responsive bidder. 1. TIME FOR AWARD The award requirements of Act 57, The Commonwealth Procurement Code, are specified as follows: 3911. Time for awarding contract. (a) General rule.-- In the case of a contract to be entered into by a government agency through competitive sealed bidding, the contract shall be awarded to the lowest responsible and responsive bidder within 60 days of the bid opening, or all bids shall be rejected except as otherwise provided in this section. (b) Delay.-- If the award is delayed by the required approval of another government agency, the sale of bonds or the award of a grant, the contract shall be awarded to the lowest responsible and responsive bidder within 120 days of the bid opening, or all bids shall be rejected. (c) Extensions. -- Extensions of the date for the award may be made by the mutual written consent of the government agency and the lowest responsible and responsive bidder. (d) List of bidders. -- All government agencies shall be required to provide a list of the bidders and their bid amount on each contract within ten working days of the bid opening to interested parties for a fee to be determined by the government agency to cover the cost of developing such list. This requirement shall not apply to the contracting bodies of any political subdivision or local authority which has the authority to enter into a contract. 2. DELAY OF AWARD DUE TO BID PROTEST If there is a Bid Protest, the award will be delayed. Refer to Chapter 3 for the Bid Protest Procedures. 3. TIME FOR AWARD For each awarded Construction Contract, the Design Professional shall furnish, at no charge, additional copies of the drawings, specifications, and supplemental detail drawings, in accordance with the General Conditions of the Construction Contract. Typically (5) five sets of Issued for Construction plans and specifications are to be delivered to each Prime Contractor unless indicated otherwise. K. BID PROTEST Bid Protest. If there is a Bid Protest, the System will handle the process in accordance with current policy and procedures. Refer to Chapter 3 for the Bid Protest Procedures. Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 25 of 25 Chapter 2.5 The Bid Phase
Article 2.5-1 Bidding / Builders Exchanges Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.5-1 Chapter 2.5 The Bid Phase
Article 2.5-2 Pre-Bid Conference - Agenda Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.5-2 Chapter 2.5 The Bid Phase
Article 2.5-3 Addenda - Example Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.5-3 Chapter 2.5 The Bid Phase
Article 2.5-4 FORMS FOR BID EVALUATIONS Bid Evaluation Checklists Determination Of Contractor Responsibility Determination Of Contractor Responsiveness Professional s Responsibility for Bid Evaluations Request For Bidder s Information Sample Letter Requesting Contractor s Qualification Statement & Financial Statement Engineering / Architectural Instructions for Facilities Projects Chapter 2.5 Chapter 2 The Process Of Contract Procurement For Facilities Projects Article 2.5-4 Chapter 2.5 The Bid Phase
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.6 The Contract Award Phase CHAPTER 2.6 TABLE OF CONTENTS A. OVERVIEW B. LOWEST RESPONSIBLE AND RESPONSIVE BIDDER C. TIMELY AWARD OF CONSTRUCTION CONTRACT D. CONTRACT PREPARATION E. CONTRACT TRANSMITTAL TO LEGAL F. WORK ORDERS FOR QUALIFICATION CONTRACTS CHAPTER 2.6 None LIST OF ARTICLES Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 1 of 19 Chapter 2.6 The Contract Award Phase
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.6 The Contract Award Phase A. OVERVIEW 1. COMPETITIVE SEALED BID This chapter provides information concerning the requirements for preparation of a Construction Contract that has been acquired by Competitive Sealed Bid. The most often used Construction Contract is the 71-K-110 - Standard Form Of Agreement For Facilities Projects. This is the model used in discussions of this chapter. 2. ALL OTHER METHODS OF CONSTRUCTION CONTRACTING Contracts shall be awarded to the bidder or offeror that best satisfies the requirements specified in the Invitation For Bid and the Contract. While there is no specified time for award and execution of other contract types permitted by Act 57, the Contracting Officer should strive to award and execute Construction Contracts within in the time frames specified in this chapter. 3. CHIEF COUNSEL S CONTRACT MANUAL For more detailed information, refer to the manual prepared by the Chief Counsel s Office for the Pennsylvania State System of Higher Education - Manual For Preparing And Processing Contracts For Goods And Services. If there are any discrepancies between this EA Manual and the Chief Counsel s manual, the Chief Counsel s Manual controls. 4. SPECIAL CIRCUMSTANCES For circumstances that may not be covered in this EA Manual or in the Chief Counsel s Manual, the preparer of the contract should contact the University s Legal Counsel, and copy the Construction Support Office on those discussions. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 3 of 19 Chapter 2.6 The Contract Award Phase
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B. LOWEST RESPONSIBLE AND RESPONSIVE BIDDER 1. VERIFY DETERMINATION - Lowest Responsible & Responsive Bidder Prior to preparation of the Construction Contract, the University should review the evaluations that led to the determination of the lowest responsible and responsive bidder to ascertain that all aspects of the Bid Evaluation have been adequately performed. Some items to review are as follows: Determination of Contractor Responsibility Determination of Contractor Responsiveness Request for Bidder s Information Professional s Responsibilities for Bid Evaluations Determination of PA Certified Firm (Bureau of Corporations web site) Determination of PA Certified Surety (Commonwealth published Surety List) Review and checking of submitted information. 2. BID TABULATION The Contracting Officer should prepare a Bid Tabulation and have it available to interested parties within 14 days of the Bid Opening. 3. BID GUARANTEES If Bid Guarantees were required with the submittal of Bid Proposals, the Contracting Officer will, within 30 days of the bid opening, return the guarantees with the Notice of Award to all but the lowest bidder and next lowest bidder under consideration for award. 4. REQUEST BONDS During the award process and if bonds are required, the University must initiate the Contractor s submittal of bonds so that executed bonds can be attached to the Contract for execution. 5. NOTICE OF AWARD After identification of the lowest responsible and responsive bidder, the other bidders should be notified that a contract is pending with the lowest responsible and responsive bidder. All bidders shall be informed that all bids remain available for acceptance for the period of time stated in the Invitation To Bid or as subsequently extended by mutual agreement. If the lowest responsible and responsive bidder does not accept the Contract, the Contract may be awarded to the next lowest responsible and responsible bidder. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 5 of 19 Chapter 2.6 The Contract Award Phase
6. EXECUTION OF CONTRACT BY UNIVERSITY (***UNDER CONSTRUCTION - SEE CONTRACT MANUAL FOR TEXT***) 7. APPROVAL OF CONTRACT AGREEMENT BY UNIVERSITY COUNSEL AND DEPUTY ATTORNEY GENERAL (***UNDER CONSTRUCTION - SEE CONTRACT MANUAL FOR TEXT***) 8. NOTICE TO PROCEED (NTP) After receipt of a fully executed contract, including the required bonds, the Contracting Officer will issue a NTP to the Contractor. The NTP should include, but is not limited to, the following: Date of the Pre-Construction Conference, as soon as possible after the issuance of the Notice To Proceed, preferably within 10 days of the NTP. Date the Contractor is to start work, preferably within 10 days of the NTP. Dates of completion and a statement of the liquidated damages. A Letter Of Intent may be issued by the System to the Contractor in accordance with Act 142 of 2002, 906. Act 142 Of 2002-906. Letters Of Intent. Before a contract for construction is effective, the head or a deputy of the purchasing agency may issue binding letters of intent to contract. A bidder or offeror receiving a letter of intent may rely on the letter to prepare to start work to the extent authorized by the letter and incur costs in preparation for performance of the contract. No work on the construction site shall be commenced and no payment shall be made to the bidder or offeror until the contract is fully executed. If the contract is not fully executed, the bidder or offeror shall be entitled to reimbursement for its actual expenses reasonably incurred pursuant to the letter prior to notification from the purchasing agency not to proceed. Reimbursement shall not include any loss of anticipated profit, loss of use of money or administrative or overhead costs. Letter of Intent to be further developed as procedures are developed. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 6 of 19 Chapter 2.6 The Contract Award Phase
C. TIMELY AWARD OF CONSTRUCTION CONTRACT 1. TIMELINESS FOR CONTRACT EXECUTION The following time limits must be monitored in awarding Construction Contracts: a. Bid Tabulation should be prepared within 14 Days of Bid Opening. b. Bid Guarantees of all but the 2 lowest Bidders under consideration should be returned within 30 Days of Bid Opening. c. Notice of Award should be prepared within 30 Days of Bid Opening. d. Contract Award should occur within 60 Days of Bid Opening. If the Contract is not awarded within the first 60 days, the University may request that the Contractor provide written acceptance for a 60-day extension, agreeing to hold the Bid Price for the extended term, totaling 120 days. e. Contract Award should occur within 120 Days of Prevailing Wage Date. f. Notice To Proceed should occur provided it is within 60 Days of Award Date. - A maximum of 120 days from the Bid Opening without an extension. - A maximum of 180 days from the Bid Opening with a 60-day extension. The NTP shall be in accordance with any binding Letter of Intent The University may tabulate and track the above requirements as follows: Event Date a. Bid Opening Date... b. Bid Tabulation Prepared... Prepare Within 14 Days of Bid Opening... c. Bid Guarantees Returned... Return Within 30 Days of Bid Opening... d. Prevailing Wage Predetermination Date... e. Award Letter Date... Award Within 60 Days of Bid Opening... Award may be extended 60 Days by mutual agreement... Award Within 120 Days of Predetermination Date... f. Notice To Proceed Date... NTP to be within 60 Days of Award Date... Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 7 of 19 Chapter 2.6 The Contract Award Phase
2. CONTRACT AWARD a. Award Period 60 Days. The System may, solely at its own discretion, award a Contract to the Contractor providing the responsive best value proposal within 60 days from the date proposals were due, and shall have the right to waive technical defects if in the best interest of the System. b. Extended Award Period 60 Days. A time extension of 60 days for the award may be given with written consent of the Contractor. c. Contract Award Date. The Contract Award Date is the date on which the Award Letter is mailed to the Contractor, and should coincide with the date of the Award Letter. d. Prevailing Wage Viability Period 120 Days. The Contract Award Date must occur within 120 days after the Determination Date of the Prevailing Minimum Wage Predetermination. If not awarded within 120 days, the Contract Specialist must act as follows: Request an updated Prevailing Minimum Wage Determination. Provide the qualified low bidder with the new Wage Determination. Request written confirmation from the qualified low bidder that the Bid Proposal remains the same. Incorporate the new Prevailing Wages into the Contract. If the Bidder requests an increase in the Bid Proposal Price, the University would reject all bids, and rebid the project with a new Prevailing Minimum Wage Determination. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 8 of 19 Chapter 2.6 The Contract Award Phase
D. CONTRACT PREPARATION REFER TO LEGAL S CONTRACT MANUAL FOR VERIFICATION 1. CONTENTS OF THE AGREEMENT The Contents of the Contract, listing each section of the Contract, are listed in the initial Agreement pages. Page Numbering. Each section of the Contract, the Agreement pages and each Rider, must be consecutively numbered, and the total of pages for each section must be shown in the initial Agreement pages. The contents of this Agreement are as follows (Example): Agreement Page(s) & Signature Page consisting of 4 pages. Table of Contents consisting of 4 pages. Rider A Scope of Work to be Performed consisting of 4 pages. Rider B General Conditions consisting of 34 pages. Rider C Instructions for Proposal Submission consisting of 4 pages. Rider D Additional Contract Commitments/Information consisting of 10 pages. Rider E Warranties consisting of 2 pages. Rider F Form of Contract Bonds consisting of 6 pages. Rider G Contractor Integrity Provision consisting of 2 pages. Attachment 1 - Prevailing Minimum Wage Determination consisting of 1 page. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 9 of 19 Chapter 2.6 The Contract Award Phase
2. AGREEMENT PAGE(S) a. Agreement Number. Each agreement must have it own unique number. In the case of Facilities Requirements Contracts, any renewal year must have a different number than the preceding one. For instance, the original agreement may be #100, and a renewal could be 100-1, or 100.A, or any numbering system the University may choose. b. Agreement Date and Contract Bond Date. The date on the bond must be the SAME OR LATER than the date the contract is made. The date of the Power of Attorney certification must be the SAME OR LATER than the date the agent signs the bonds. For practical purposes, the following dates should all be the same: Date of the contract Date of the bonds Date that bonds are certified (in the Power Of Attorney) c. Contractor s Name on Contract. Use the correct name of the Contractor's business on the Contract. This must be precisely correct. When the Contractor returns the Contact Bond, check that the name is exactly the same as on the Contract. Businesses that are individually owned (and not incorporated) should identify both the name of the owner and the trading name or business name on the agreement. For example: John Doe T/A John s Concrete John Doe D/B/A John s Concrete. d. Contractor s Address. The Contractor s address must include a street address. PO Box is not sufficient. e. Contractor s Type Of Business. Identify the Contractor s type of business organization right after their business name, whether individual, partnership, or corporation. f. Federal Identification Number. Provide the Contractor s Federal I.D. number. g. Agreement Amount and the Bid Amount. Be sure the Agreement Amount matches the Bid Amount recorded in the Bid Proposal under the appropriate Base Bid. h. Base Bid Number. If there was more than one Base Bid, provide the Base Bid Number in the second paragraph after the words for the sum of $. i. Separate Prime Identification. List the type of separate prime work in the third paragraph "Work under this agreement shall be entitled Plumbing. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 10 of 19 Chapter 2.6 The Contract Award Phase
3. SIGNATURE PAGE a. Contractor Corporation Signatures Two Signatures. When the Contractor is a corporation, 2 signatures are required on the Signature Page: one signature must be the President/or Vice President one signature must be the Secretary/or Treasurer The Assistant Treasurer or Assistant Secretary are acceptable signatures. The office they hold must also be identified. The same two signatures that appear on the Contract Bond must also appear on the Agreement. Other Authorized Signatures. If the signature of the officers cannot be obtained, the Contractor must submit a certified copy of a Resolution Of The Corporation's Board Of Directors stating that the individual who signed the contract is authorized to bind the Corporation to contracts. The resolution or certification must be dated prior to and not later than the date of the Agreement. If Only One Officer. Should there only be one officer of the corporation, the Contractor must provide the Contract Specialist with a copy of the incorporation papers or a copy of the Board Of Directors Meeting Minutes appointing one person to all offices. This information does not have to be forwarded with the agreement but must be retained in University s files and available to Legal Counsel upon request. b. Contractor - Individual or Partnership Signature If Contractor is an Individual or Partnership, the Individual or a Partner must sign. c. University Signature The contract must be signed by the President of the University or the President s designee before legal review. The Contracting Authority by anyone other than the President must be delegated in writing and filed with the Office of the Chancellor. d. Office of the Chancellor Signature In the past, the Construction Support Office (CSO) reviewed and signed all contracts. This no longer occurs. CSO may review certain contracts for certain Universities. e. University Legal Counsel Signature The contract is reviewed and signed by the University s Legal Counsel. f. Office of Attorney General - Deputy Attorney General Signature All contracts are signed by the Deputy Attorney General. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 11 of 19 Chapter 2.6 The Contract Award Phase
g. Office of General Counsel Signature Contracts expected to exceed $500,000 during any term, or as specified in an Approved Contract Form, are signed by the Office of General Counsel. If the contract form does not include a signature line for the Office of General Counsel, one should be added by the University h. General Notes The Attorney General s signature is required for the Contract Form 71-K-110. All signatures must be dated. Names must be typed below the signature lines. The titles of signers must be indicated. If the Contractor is an individual or partnership, one signature is required. If the Contractor is a corporation, two signatures are required. One being the President or Vice President. The second being the Secretary or Treasurer The Contractor s signatory authority of other signatures can be delegated provided there is a certified Board Resolution presented with this contract. i. Effective Date The Effective Date will be stamped on the contract by the Office of University Legal Counsel when it is approved and returned from the Office of Attorney General. The Effective Date being the date of the letter from the Attorney General. 4. TABLE OF CONTENTS After the Signature Page, provide a Table of Contents for the Agreement, Riders, and attachments. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 12 of 19 Chapter 2.6 The Contract Award Phase
5. RIDER A - Scope Of Work To Be Performed Rider A is intended to be prepared individually for each contract and tailored specifically to the scope of work to be performed. Rider A provides the University with an opportunity to address any issues that are contained in the Bid Documents but are of such important significant to be emphasized again. a. Project information. Include the following information: University Project Name and Number The Separate Prime Work that the agreement references (General Construction, Plumbing, Electrical, HVAC, etc.) Base Bid Number if there is more than one base bid List all other contracts (name and project number) General Construction Contract No. xxx.1 HVAC Construction Contract No. xxx.2 Plumbing Construction Contract No. xxx.3 Electrical Construction Contract No. xxx.4 b. Scope of Work. The following statement shall be included: "The Contractor's scope of work included in this agreement, including any and all design work done by or for the Contractor, shall include the following and all work necessarily implied by the following: [---the University shall provide a general description of the scope of work of the specific agreement---]". c. Contract Documents. The following statement shall be included: "The Contract Documents shall be located at [--- specify a University location, such as the Director of Facilities Management Office, the Purchasing Department, etc.---] and will be available for viewing for the duration of the Project." d. Project Manual. This Rider shall contain the Project Manual s Table of Contents. The following statement shall be included: "The Table of Contents is attached to and is part of Rider A". In this manner, the Specifications and Drawings for the project do not have to be forwarded to the Legal Staff nor the Attorney General's office. e. Liquidated Damages. The University may restate provisions for Liquidated Damages provided in the Bid Documents. f. Special Terms And Conditions. The University may restate any special terms and conditions that should be emphasized, such as construction phases or scheduling constraints. g. MBE/WBE Participation. The University may restate the commitments that the Contractor made to MBE/WBE firms. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 13 of 19 Chapter 2.6 The Contract Award Phase
6. RIDER B - General Conditions This is a standard rider the language of which has been approved by Legal Counsel and should not be changed. 7. RIDER C - Instructions For Proposal Submission This is a standard rider the language of which has been approved by Legal Counsel and should not be changed. In the development of Chapter 3 of this EA Manual, this is being considered for deletion in conjunction with an alternate Instruction To Bidders. 8. RIDER D - Additional Contract Commitments/Information The following shall be incorporated into the contract by reference: Notice to Contractors [---identified and dated---] Addendum Number [---identified and dated---] Contractor Bid Proposal [---identified and dated---] Bidding Documents [---identified and dated---] Except for the Project Manual and Drawings, anything referenced or incorporated must be provided to the Attorney General as part of the contract approval process. 9. RIDER E - Warranties This is a standard rider the language of which has been approved by Legal Counsel and should not be changed. 10. RIDER F - Form Of Contract Bonds a. System s Bond Form. The System s Contract Bond forms must be used. Provide 2 original Contract Bonds. b. Attorney-in-Fact. The date of the Attorney-in-Fact must be the same date as the date that appears on Page 1 of the Contract Bond. Provide 2 original Attorney-in-Fact forms. Facsimiles (or copies) are acceptable as long as the Surety s seal is embossed on the copy. c. Corporation. In the case of a corporation, the Contractor's corporate seal must be on the Contract Bonds, and the corporate seal must be consistent with the corporate name; otherwise, the contract will be rejected. d. Individual or Partnership. An individually owned business (not incorporated) should identify both the name of the owner and the trading name or business name on the Contract Bond. For example: John Doe T/A John s Concrete John Doe D/B/A John s Concrete. The street address of the Contractor must be recorded on page 1 of the Contract Bond, without exception. P. O. Box addresses are not acceptable. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 14 of 19 Chapter 2.6 The Contract Award Phase
e. Seals. The Surety Corporate Seals must be on the Contract Bonds. f. Approved Surety. The Surety must be either listed on the Commonwealth of Pennsylvania Insurance Department Surety List, or have been accepted by the Insurance Department. The Surety s street address must be as stated on the current DGS Surety List, whether the home office, branch office, or mailing address. Addresses of insurance agents are not acceptable. 11. RIDER G - Contractor Integrity Provision This is a standard rider the language of which has been approved by Legal Counsel and should not be changed. 12. ATTACHMENT 1 - Prevailing Minimum Wage Determination This is a page prepared by the University that identifies the Prevailing Minimum Wage Determination. An example is as follows: BUTLER COUNTY Determination Date 05/22/2001 Serial Number 01-3154 Project Name IFB-SSHE-13-01.4 Electrical At Rhoads Hall Awarding Agency Slippery Rock University Of Pennsylvania Award Date 06/06/2001 County Code 10 http://www.li.state.pa.us/pwage/01-3154.pdf Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 15 of 19 Chapter 2.6 The Contract Award Phase
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E. CONTRACT TRANSMITTAL TO LEGAL The submittal to Legal Counsel shall be as follows: 1. Legal s Standard Transmittal Form. The Transmittal Form developed and provided by Legal Counsel must be used. (See Chief Counsel s Manual For Preparing And Processing Contracts For Goods And Services, Appendix R) 2. Bid Tabulation 1 copy. One copy of the Bid Tabulation must be attached to the Transmittal Form. 3. Contract 2 copies. Two copies of the Contract must be attached to the Transmittal Form. 4. Awards to Other Than Low Bidder. Provide a note on the Transmittal Form or in an attached letter explaining reasons for an award not made to the low bidder. Chief Counsel s Contract Manual For more detailed information, refer to the refer to the manual prepared by the Chief Counsel s Office for the Pennsylvania State System of Higher Education Manual For Preparing And Processing Contracts For Goods And Services. If there are any discrepancies between this EA Manual and the Chief Counsel s manual, the Chief Counsel s Manual controls. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 17 of 19 Chapter 2.6 The Contract Award Phase
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F. WORK ORDERS FOR CONSTRUCTION CONTRACTS 1. Preparation of Individual Work Orders. In similar fashion to the preparation of a Construction Contract, the University must be attentive to the proper preparation of a Work Order that is issued under a Qualification Contract between the System and the Qualified Provider. 2. Instructions Manual for Contract Form 71-K-150. The development of Individual Work Orders under Qualification Contracts will not be addressed in the AE Manual since it is discussed in a separate manual that has been prepared for the current form of Qualification Contract that is utilized by the System Instructions Manual for Contract Form 71-K-150, A Qualification Contract To Acquire Qualified Separate Prime Firms. One hard copy of this manual was issued to each University in September 2001. Engineering / Architectural Instructions for Facilities Projects Chapter 2.6 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 19 of 19 Chapter 2.6 The Contract Award Phase
Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.7 The Construction Phase CHAPTER 2.7 A. OVERVIEW TABLE OF CONTENTS CHAPTER 2.7 None LIST OF ARTICLES Engineering / Architectural Instructions for Facilities Projects Chapter 2.7 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 1 of 4 Chapter 2.7 The Construction Phase
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Pennsylvania State System of Higher Education Facilities Manual - Volume 30 Engineering / Architectural Instructions Manual Chapter 2.7 The Construction Phase A. OVERVIEW 1. REFERENCES The administration of a project during the Construction Phase is not the topic of this AE Manual other than to lead the user to other policies and procedures that have been developed by the System and are related to administration during construction. The following references are provided: Commonwealth Act 57 Of 1998 Commonwealth Procurement Code Commonwealth Act 142 Of 2002 Commonwealth Procurement Code (Amendments To Act 57) Commonwealth Act 188 Of 1982 Establishment And Authorization Of The System Chapter 30: The System s Manual For Engineering And Architectural Instructions For Facilities Projects Chapter 40: The System s Manual For Procurement And Administration Of Professional Services For Facilities Projects Chapter 50: The System s Manual For Administration Of Projects During Construction For Facilities Projects The System s Policies And Procedures For Disputes Commonwealth Act Of 1913 Separate Primes Legislation Commonwealth Act Pennsylvania Prevailing Wage Commonwealth Act Steel Products Procurement Act Commonwealth Act Reciprocal Limitations Act Commonwealth Act Trade Practice Commonwealth Act Of 1967 Public Works Contractors Bond Law Federal Act Of 1990 Americans With Disabilities Act Engineering / Architectural Instructions for Facilities Projects Chapter 2.7 Chapter 2 The Process Of Contract Procurement For Facilities Projects Page 3 of 4 Chapter 2.7 The Construction Phase
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