POST AWARD PROCEDURES

1
POST AWARD PROCEDURES

• Section III B

2
1. Bid Rigging and Post Award Reviews

• Guidelines on Preparing Engineer's Estimate,
  Bid Reviews and Evaluation (Appendix A-87)
• All Federal-Aid highway construction projects
• Bid Rigging - A conspiracy to disrupt or
  circumvent the competitive bidding environment
  by establishing a competitive advantage for
  certain bidders.

Pg. 135-137
3
Bid Rigging (or Bid Collusion)

• Most Common Types of Collusion
• Complementary Bids
• Territorial Allocation
• Joint Ventures
• Bid Rotation

4
Detecting Bid Rigging

• Post- Award Bid Evaluation
• Evaluation period approximately 5 years
• Select an adequate number of projects
• Are there abnormal bid patterns?

5
USDOT / OIG Office

• Who to contact if bid rigging or fraud is
  suspected
• Suspicion or actual evidence of fraud
• List of USDOT/OIG Regional Offices (A-1 to
  A-4)

6
2. Project Supervision and Staffing

• 23 USC 114
• 23 USC 302
• 23 CFR 635.105
• All Fed-aid hwy const projects

• At least one STA employee in responsible charge
  of the project

Pg. 137-139
7
(No Transcript)
8
3. Highway Construction Funding Source Signs

• 23 U.S.C. 321
• 23 CFR 635.309(n) (o)
• FAPG NS 23 CFR 635C
• Applies to all Federal-Aid construction projects
  within a State, if the STA routinely installs
  funding source signs

Pg. 140-141
9
Funding Source Signs

• 1960 Highway Act - mandate
• 1973 Highway Act - prohibition
• Section 154 of 1987 STURAA
• only information regarding source and amount of
  funding shall be placed on the signs
• SAFETEA-LU, 1901 codified the language w/o
  change
• MUTCD

10
4. Progress Payments

• 23 U.S.C. 121
• 23 CFR 635.122
• Applies to NHS FA hwy const projects
• Compensation For Work Performed
• Generally Monthly
• Include Stockpiled Material

Pg. 141-143
11
5. Change Orders (Extra Work Time
Extensions)

• 23 CFR 635.102, 635.120, 635.121
• Applies to NHS FA hwy const projects
• Used to make the design a better fit for actual
  field condition
• Major COs require FHWA advance approval
• Changes which significantly affect cost or
  alter termini, character, or scope of work.

Pg. 144-148
12
Types of Change Orders

• Classified by Purpose
• Change to Plans
• Change to Specifications
• Change in Cost (/-), and
• Change in Time (/-)

13
Time Extensions

• FHWA Policy
• Time extensions that affect project costs or
  liquidated damages must have FHWA concurrence
• Should only be considered
• If the change affects a controlling operation
  (on the projects critical path).

14
6. Claims (and related issues)

• 23 CFR 635.124
• Applies to NHS FA hwy const projects
• Formal demand for additional compensation that
  goes beyond the project staff

Pg. 148-155
15
Alternate Dispute Resolution Methods

• Partnering
• Negotiation
• Mediation
• Dispute Review Board
• Mini-trial
• Arbitration
• Private Judging

Pg. 150-154
16
7. Liquidated Damages

• 23 CFR 635.127
• Applies to NHS FA hwy const projects
• Daily rate must cover STAs average daily CE
  costs.
• Review and adjust rates every two years
• May include other project-related delay costs
• Does NOT include
• Incentive/Disincentive amounts (RUC)
• Business impact costs

Pg. 155-157
17
8. Suspension Debarment

• 49 CFR Part 29
• FHWA Order 2000.2A
• All Federal-Aid construction projects
• Exclude persons and/or companies from
  participation in ALL Federal assist. programs
• Causes for debarment include
• Fraud
• Antitrust violations
• Embezzlement, theft forgery, etc.
• Offenses showing lack of business integrity or
  honesty

Pg. 157-160
18
Suspension Debarment (cont)

• Debarred firms and/or individuals are prohibited
  from
• ANY contract requiring the consent of DOT
• Prime contract
• Lower tier transactions
• Exceeding 25,000, or
• Where a person can exert critical influence
• Auditing, inspection, quality assurance

19
9. Termination of Contract

• 23 CFR 635.125
• Applies to NHS FA hwy const projects
• Action taken by contracting agency to cancel a
  contract.
• FHWA concurrence required where it concurred in
  the contract award
• Grounds for termination include
• For Cause
• For Convenience
• For Default

Pg. 160-162
20
Termination of Contract (cont)

• Cause or Convenience
• Circumstances beyond contractor control.
• Executive Order war, defense, natl emergency
• 3rd party injunctions or restraining orders
• Acts of God
• Written notice to contractor
• Payment for
• Completed work
• Work necessary to protect completed work
• Stockpiled materials

21
Termination of Contract (cont)

• Default
• Circumstances within contractor control
• Failure to begin work as per NTP
• Failure to prosecute the work in a timely manner
  
• Work not conforming to contract requirements
• Failure to comply with EEO or wage rate reqts
• bankruptcy or insolvency
• Notice to Contractor and Surety
• Notice to Cure (usually 10 days)
• Surety Liable for project completion

22
Termination of Contract (cont)

• For Federal-Aid contracts gt 10,000
• Contract provision must identify the
• Manner of termination
• Basis and conditions for settlement
• FHWA participation - Case-by-case basis
• Anticipated profit not eligible
• Eligibility limits

23
(No Transcript)
24
(No Transcript)