409 Neb. Admin. Code, ch. 1, § 005

Current through September 17, 2024
Section 409-1-005 - REQUIREMENTS FOR CONTRACT AWARD, CANCELLATION, AND EXECUTION
005.01CONTRACT AWARD

The award of the contract will be made in Lincoln, Nebraska, by the Director to the lowest responsible bidder whose bid complies with all the requirements prescribed. The award will not be made until all necessary investigations have been made into the responsibility of the bidder to whom it is proposed to award the contract; but, in any case, the award shall be made within thirty days after the opening of the bids. The right is reserved to limit the work awarded one bidder to the amount that he/she is considered capable of handling, taking into account both his/her capacity to perform work and contracts in force. The successful bidder will be notified by letter, mailed to the address shown on his/her bid, that his/her bid has been accepted and that he/she has been awarded the contract.

005.02CONSIDERATION OF BIDS
005.02A Following the bid opening, the Department will compare the responsive bids. Unless otherwise defined in the bid, the comparison will be based on the summation of the quantities and the unit bid prices shown in the bid schedule. The comparison will be available to the public after one working day.
005.02B The right is reserved to reject any and all bids and to waive technical errors as may be deemed in the Department's best interest.
005.02C The Department may consider both tied and untied bids to determine the lowest responsible bidder when entire projects have been tied at the option of the bidder. When untied bids are not received on all tied projects, the Department may award the contract to a bidder submitting the lowest tied bid, regardless of whether an untied bid on a single project is lower than the tied bid. The Department will act in the best interest of the State when making this determination.
005.02D The right is reserved to require from any or all bidders on any project, including the apparent low bidder, prior to award of the Contract, all documents and information used in the preparation of their bids. Failure to furnish the documents and information shall result in a period of disqualification that is determined by the Director.
005.03CANCELLATION OF AWARD

The Department reserves the right to cancel the award of any contract anytime before the execution of the said contract by all parties without any liability against the Department.

005.04REQUIREMENTS WITH RESPECT TO CONTRACT BOND

The bidder to whom the Contract is awarded shall furnish within thirty days after the award a Contract bond in a sum equal to the full amount of the Contract. The Contract bond must be executed on the form furnished by the Department. Contract bonds must be executed by corporations authorized to contract as a surety in Nebraska.

005.05EXECUTION OF CONTRACT

The Contract shall be signed by the successful bidder and returned, together with a satisfactory bond, within thirty days from the date of award. The Department will not execute a contract until satisfactory bonds, certificate of insurance, and other required documents have been received. No bid shall be considered binding upon the Department until the execution of the Contract.

005.06FAILURE TO EXECUTE CONTRACT
005.06A A contract is not executed if the bidder:
005.06A1 Fails to file an acceptable contract bond within 30 days from the date of award.
005.06A2 Fails to complete and submit all required forms and documents within 14 days after the opening of bids.
005.06A3 Gives written notice expressing intent not to execute the Contract.
005.06B When a contract is not properly executed, the Department may:
005.06B1 Annul the award and cancel the bid with forfeiture of the proposal guaranty bid bond (forfeiture not imposed as a penalty, but in liquidation of damages sustained).
005.06B2 Proceed with the execution of the Contract after the 30-day period when all required documents have been correctly submitted and adjust the bidder's prequalification downward as specified in Section 002.02B.
005.06B3 Award to the lowest, succeeding, responsive bidder and recover the differences from the defaulting bidder.
005.07SPECIAL ARRANGEMENTS

The right is reserved, unless otherwise stated in the proposal form, to consider bids and award separate contracts for each group of items as shown in the proposal form. All awards under the Standard Specifications are subject to the approval of the Department before becoming effective as contracts.

005.08MATERIAL GUARANTY

Before any contract is awarded, the successful bidder may be requested to furnish a complete statement of the origin, composition, and manufacture of any materials to be used in the construction of the work, together with samples which may be subjected to the tests provided for in the Standard Specifications to determine their quality and fitness for the work.

409 Neb. Admin. Code, ch. 1, § 005