Description:
Project Bid Analysis (after bid opening): Construction Administrator reviews all bids received, especially the apparent low bid, to make sure the bid is complete and responsible to the contract requirements. Construction Administrator will also review cost, unit pricing (if used), that the following forms are executed properly: list of subcontractors, bid bond, noncollusion affidavit, certification of appropriate license-Dept. of Industrial Relations (DIR) registration-California company (checking DIR, Contractors State License Board (CSLB) websites to verify), signed bid proposal signature page (with certification and copy of firm’s official record authorizing officers or employees of the firm to execute Contract Documents or to execute a bid submittal), and claims for Small Business Preference and Disabled Veteran Business Enterprise (DVBE) Incentive. Within 24 hours of bid opening, Construction Administrator should receive and review the expanded sub listing and the full DVBE documentation package. Failure to submit this documentation is grounds for Trustees" rejection of bids. Failure to List Subcontractor: Occasionally a contractor who is properly licensed to receive a bid package and bids the project, may fail to list a subcontractor for a major portion of the work. In this case the contractor must self-perform the work (Public Contract Code sections 4106, 4107-c) or pay a penalty of up to 10% of the amount of the subcontract to the Trustees (Public Contract Code section 4110). In order to self perform the work the contractor shall add a properly licensed person to its payroll, known as a Responsible Managing Employee, or RME. Construction Administrator shall follow up with CSLB to see if contractor hired an RME, and that the RME meets the licensing requirements. Licensed to Bid, But Not with Requisite License: A contractor must be licensed to submit a bid to a public agency, but must have the requisite license at the time of award. Bus. & Prof. Code section 7028.15 states that it is a misdemeanor for any person to submit a bid to a public agency in order ...to act in the capacity of a contractor within this state without having a license therefore... Public Contract Code section 3300 states that CSU shall specify the classification of the contractor's license which a contractor shall possess at the time a contract is awarded. Bids Exceed Budget: In the event a qualified, responsible low bid on a major capital outlay project exceeds the project architect/engineer's approved bid estimate, follow the Chancellor's Office-CPDC Bid Overrun Analysis Policy No. 2. This policy memo is on the CPDC website, and is also in SUAM Appendix D. If the Construction Administrator determines that the project budget has overrun, Construction Administrator may reject all bids, make clarifications in the bid documents, and quickly move to rebid-all done via addendum.
References:
SUAM sections: 9770 (Mistake in Bid); 9771 (Waiver of Irregularities); 9772 (Tie Bids); 9773 (Rejection of Bids/Rebid); 9774 (Evaluation of Bids/Award of Contract); CM Procedures Manual, section 11-Project Bid Analysis; Public Contract Code, section 4100 et seq. Public Contract Code, section 5100 et seq. Business & Professions Code, sections 7028.15, 7056(A), 7057(B), 7058(C), Contractor State License Board, Regulation 832
Forms/Templates:
Abstract of Bids, Statement of Finance After Bids, CPDC 2-7, identify bid savings, if any, Bid Overrun Analysis, issue Request for Approval to Award with all back-up documentation to Planner.