Oklahoma Competitive Bidding Act (Title 61)

You're submitting a sealed bid for a concrete parking lot...

Kahoot

https://play.kahoot.it/#/k/5a4594fa-0771-48ff-94bb-d4c07f7837e0

• Concrete- 450 yards @ $100/yard
• 3/8 Rebar- 2.5 bundles @ $1000/bundle
• Sealer- 2 barrels @ $1000/barrel
• Labor
• 6 Finishers- $
• 5 General Laborers- $
• 7 Days @ 12hrs/day
• Keep in mind your personal profit.

What Could Possibly Go Wrong...

• Change Orders: An addition to a contract already awarded.
• The BOE must approve change orders that increase the original amount of the contract.
• Cannot exceed 15% for contracts under $1,000,000
• Cannot exceed 10% for contracts over $1,000,000
• Retainage: The holding of funds to ensure performance
• 10% until 50 % complete
• 5% after completed project
• Securities in lieu of retainage

Bid Day!

What Happens After Bids Are Opened?

• Awarding of bids must be within 30 days of the bid opening, with up to a 15 day extension.
• The board will award the bid to the lowest and MOST RESPONSIBLE bidder.
• If bid is not awarded to the lowest bidder, the board must submit a publicized statement providing the reasoning behind their decision.
• Taxpayers have 10 days to challenge the contract and seek remedy in district court.

What's Next...

What Could Possibly Go Wrong...

Reasons For Rejecting A Bid

• Contract has to be signed
• Bonds and insurance must be in place
• payment bond
• completion bond
• defect bond
• liability insurance
• workman's compensation insurance
• The district must give the notice to proceed, not the architect
• Contract time starts as soon as the notice is given by the district

• Requirements of the law not met
• Defective workmanship
• Late performance
• The board has the right to reject all bids if it is in the public's best interest.

• Errors or omissions can cause the lowest bidder to withdraw their bid
• When public health and safety issues arise emergency provisions are in place
• Actual or appearances of collusion/conspiracy
• Giving out advance information regarding the bid THIS IS A FELONY!

Bid Process

• All bids must be submitted in a sealed envelope, no late bids will be accepted.
• Bids will be opened in accordance to the date, time, and location stated in the advertised legal notice.
• There must be an administrator of the district present for the opening bid.
• Each sealed bid must contain...
• A bid form with the bid amount
• A bond or cashier's check for 5% of the bid
• Addendum and alternates
• Affidavits: Sex offenders, no alcohol, no weapons, etc.

1974

What is the Oklahoma Competitive Bidding Act?

Unless otherwise provided by law, all public construction contracts in excess of $50,000 shall be given to the lowest RESPONSIBLE bidder, through open competitive bidding after public requests for sealed bid.

When is the Competitive Bidding Act not required?

• Professional Services: Attorneys, Consultants, Architects, Construction Management Services, etc.
• Directly purchasing materials
• Old or new buses
• Federal commodities

Construction Projects Under $50,000

• Projects between $25,000 and $49,999
• Must submit a written bid in compliance with the district policy.
• Could be subject to specific BOE approval.
• Must provide a written contract and proof of insurance, such as workman's comp and liability.
• Projects less than $25,000
• May be negotiated without a sealed bid.
• Could be subject to specific BOE approval.
• Must provide a written contract and proof of insurance, such as workman's comp and liability.

How To Have A Successful Competitive Bid!

Advertising-Legal Notice

• All prospective bidders who have made known, in writing, their interest in bidding, shall receive a bid notice by mail.
• Two notices shall be published in a general circulation newspaper within the district's county. The two bid publications cannot be in the same week.
• Bids must be publicized for 20 days, starting on the first day of publication.
• All bid documents must be on file at the awarding public agency.

First Things First...

• Projects must be designed by an architect who holds a current license to do business in Oklahoma.
• All building projects and/or plans require approval and authorization from the BOE for the district to seek bids.

Jennifer Johnson

Kenyelle Waiters

Oklahoma Competitive Bidding Act (Title 61)