3003.1 Bidding for Construction, Remodeling, Repair, or Related Projects Financed with Federal Funds

3003.1 Bidding for Construction, Remodeling, Repair, or Related Projects Financed with Federal Funds

  1. Applicability of the policy
    This policy applies only to construction and contracts undertaken with federal funds which are subject to the federal Uniform Grant Guidance (UGG) and other applicable federal law, including but not limited to the Education Department and General Administration Regulations (EDGAR) and the United States Department of Agriculture (USDA) regulations governing school food service programs.  In the event this policy conflicts or is otherwise inconsistent with mandatory provisions of the UGG, EDGAR or other applicable federal law, the mandatory provisions of the laws shall control.

    The District will also comply with the requirements of the public lettings laws (Neb. Rev. Stat. §§ 73-101 through 73-106) when the contemplated expenditure for the complete project exceeds $100,000, the Political Subdivisions Construction Alternatives Act (Neb. Rev. Stat. §§ 13-2901 through 13-2914), energy financing contracts (Neb. Rev. Stat. §§ 66-1062 through 66-1066), other applicable state laws, and the board’s general policy on Bidding for Construction and Related Projects.  In the event of a conflict between state and federal law, the more stringent requirement shall apply.

  2. All projects undertaken pursuant to this policy will be subject to the following bond requirements
    • A bid guarantee from each bidder equivalent to five percent of the bid price.  The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.
    • A performance bond on the part of the contractor for 100 percent of the contract price.  A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.
    • A payment bond on the part of the contractor for 100 percent of the contract price.  A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

  3. Construction Projects with an Anticipated Cost of Under $150,000
    • Methods of Bidding/Soliciting Quotations or Estimates
      The type of procedures required depends on the anticipated cost of the project.
      1. Construction with an Anticipated Cost of up to $3,500 (Micro-Purchases)
        Micro-purchase means a purchase of supplies or services using simplified acquisition procedures, the annual aggregate amount of which does not exceed $3,500.  Micro-purchases may be made or awarded without soliciting competitive quotations, to the extent district staff determine that the cost of the purchase is reasonable.  For purposes of this policy “reasonable” means the purchase is comparable to market prices for the geographic area.  To the extent practicable, the District distributes micro-purchases equitably among qualified suppliers. The District will follow its standard policy on purchasing, which can be found earlier in this subsection.
      2. Construction with an Anticipated Cost of between $3,500 and $100,000 (Small Purchase Procedures)
        For construction projects subject to this policy, small purchases are purchases that, in the aggregate amount, is more than $3,500 and less than $100,000 annually.  For small purchases, price or rate quotes shall be obtained in advance from a reasonable number of qualified sources as detailed in the district’s standard policies on purchasing and on bid letting and contracts, which can be found earlier in this subsection.
    • Construction Projects with an estimated cost of $100,000 and over will be made pursuant to the District's Policy on Bid Lettting and contracts.
  4. Construction Projects with an Anticipated Cost Over $150,000
    • Sealed Bids:All constructions projects subject to this policy with an anticipated cost of $150,000 will be publicly solicited using the sealed bid method.
      1. Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids, for state, local, and tribal governments, the invitation for bids must be publically advertised;
      2. The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;
      3. Sealed bids will be publically opened in a place and at the specific time stated in the bid solicitation.  Bidders shall be notified of the opening and invited to be present.
      4. The contract will be awarded to the lowest responsive and responsible bidder.
        • Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest.
        • Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of.
        • Any or all bids may be rejected if there is a sound documented reason.
      5. The board shall have discretion in determining which bidders are responsible and responsive and shall award the contract to the lowest, responsible, and responsive bidder whose bid meets the bid specifications.  This means that the board will select the bid that offers the best value and award a contract based upon the amount of the bid and the bidder’s ability and capacity to carry on the work, its equipment and facilities, honesty, integrity, skills, business judgment, experience, equipment, facilities, financial stability, past performance, and other relevant factors.
      6. The board will generally complete its review of bids and select a vendor within 30 days of bid submission.
    • Advertising for Bids.
      1. The superintendent or designee will arrange to advertise for bids by publishing notice in any newspaper of general circulation within the school district at least 7 calendar days prior to the date on which bids are due.
      2. Nothing shall prevent the superintendent or designee from advertising in additional media outlets or for a longer period of time.
    • Bid Documents
      1. The bid documents shall identify the day upon which the bids shall be returned, received, or opened and shall identify the hour at which the bids will close or be received or opened.
      2. The bid documents shall also provide that such bids shall be opened simultaneously in the presence of the bidders or their representatives.
      3. Bids received after the date and time specified in the bid documents shall be returned to the bidder unopened.
      4. If bids are being opened on more than one contract, the board, in its discretion, may award each contract as the bids are opened.
      5. Sealed bids will be opened in a place and at the specific time stated in the bid solicitation.  Bidders shall be notified of the opening and invited to be present.
      6. Bids will be reviewed by the Superintendent and/or designee and submitted to the board for approval.
      7. The board shall have discretion in determining which bidders are responsible and responsive and shall award the contract to the lowest, responsible, and responsive bidder whose bid meets the bid specifications.  This means that the board will select the bid that offers the best value and award a contract based upon the amount of the bid and the bidder’s ability and capacity to carry on the work, its equipment and facilities, honesty, integrity, skills, business judgment, experience, equipment, facilities, financial stability, past performance, and other relevant factors.
      8. The board will generally complete its review of bids and select a vendor within 30 days of bid submission.
    • The terms of any construction project undertaken pursuant to this policy will be memorialized in a written contract which has been  reviewed by the district’s legal counsel and approved by the board. 

Adopted on: June 12, 2017

Revised on: _________________________

Reviewed on: ________________________