Section 663.640 Compliance with Procurement Requirements for Construction Contracts

Section 663.640  Compliance with Procurement Requirements

for Construction Contracts

a)         Loan

Applicant Responsibility

The loan applicant shall be

responsible for selecting the low, responsive, and responsible bidder or other

contractor in accordance with applicable requirements of State, federal, and

local laws and ordinances, as well as for the specific requirements of the loan

agreement directly affecting procurement. The loan applicant shall also be

responsible for the initial resolution of complaints based upon alleged

violations. Any complaints made to the Agency concerning any alleged violation

of law in the procurement of construction services or materials for a project

involving construction work will be referred to the loan applicant for

resolution. The loan applicant shall promptly determine each complaint on its

merits and shall allow the complainant and any other party who may be adversely

affected to state in writing or at a conference the basis for their views

concerning the proposed procurement. The loan applicant shall promptly send by

certified mail to the complainant and other affected parties a written summary

of its determination, substantiated by an engineering or legal opinion

providing a justification for its determination.

b)         Time

Limitations

Complaints should be made as early

as possible during the procurement process, preferably prior to the bid

opening, to avoid disruption of the procurement process.  The complaint shall

be mailed (certified mail, return receipt requested) or otherwise delivered no

later than 5 working days after the complainant becomes aware of an alleged

violation.  Unless all bids are rejected, if there is no agreement between the

parties within 7 days following the loan applicant's response, the matter shall

be resolved in accordance with subsection (c)

ement process.  The complaint shall

be mailed (certified mail, return receipt requested) or otherwise delivered no

later than 5 working days after the complainant becomes aware of an alleged

violation.  Unless all bids are rejected, if there is no agreement between the

parties within 7 days following the loan applicant's response, the matter shall

be resolved in accordance with subsection (c).

c)         Remedies

All claims, counter-claims,

disputes, and other matters in question between the recipient and the

contractor arising out of, or relating to, a subagreement or its breach shall

be decided by arbitration if the parties agree, or in a court of competent

jurisdiction within the State.

d)         Deferral

of Procurement Action

If the determination of a

complaint by the loan applicant is adverse to the complainant, the loan

applicant shall defer issuance of its solicitation or award or notice to

proceed under the contract (as appropriate) for 7 days after mailing or

delivery of the determination.  If the determination (whether made by the loan

applicant, the arbitrator or the court) is favorable to the complainant, the

terms of the solicitation shall be revised or the contract shall be awarded, as

appropriate, in accordance with the determination.