TC - SECTION 2: BIDDING REQUIREMENTS AND CONDITIONS

TC-2.01 PROJECT CLASSIFICATION

The Administration will estimate the cost of the Contract and classify it within one cost group and letter designation as follows:

COST GROUP ESTIMATE	COST GROUP LETTER CLASS
Up to $ 100 000	A
$ 100 001 to $ 500 000	B
$ 500 001 to $ 1 000 000	C
$ 1 000 001 to $ 2 500 000	D
$ 2 500 001 to $ 5 000 000	E
$ 5 000 001 to $ 10 000 000	F
$10 000 001 to $ 15 000 000	G
$ 15 000 001 to $ 30 000 000	H
$ 30 000 001 to $ 50 000 000	I
$ 50 000 001 to $ 75 000 000	J
$ 75 000 001 to $ 100 000 000	K
Over $ 100 000 000	L

The letter designation will be published as part of the Notice to Contractors.

TC-2.02 CONTENTS OF BID FORMS

All documents included in or attached to the bid form are necessary parts thereof and shall not be detached, separated or altered. The Plans, Specifications, Supplemental Specifications, referred to in the Specifications, and all other Contract Documents will be considered a part of the bid form whether attached thereto or not.

TC-2.03 PREPARATION OF BID

(a) The bidder shall submit their bid utilizing only the electronic forms furnished by the Administration. The bidder shall specify a price in dollars and cents for each pay item given.

(b) The bid form(s) shall be filled out using the Administration-required electronic bidding software. The bid, if submitted by an individual, shall be electronically signed by the individual. If submitted by a partnership, the bid shall be electronically signed by such member or members of the partnership and have authority to bind the partnership. If submitted by a corporation or other business entity, the same shall be electronically signed by an officer with his or her position stated below the signature line. Such signature shall constitute the Contractor’s representation and warrant that the signing party has Contractor’s authorization to do so, binding the Contractor to the bid and to the Contract. There shall be no strikethrough text submitted though the Administration-required electronic bidding software.

(c) Bid Samples and Descriptive Literature. If the Invitation for Bids requires the bidder to furnish samples or descriptive literature, it shall be electronically submitted with the bid, unless the Invitation for Bids provides otherwise.

(d) Offerors shall identify those portions of their proposals which they deem to be confidential, proprietary information or trade secrets and provide any justification of why such materials should not be disclosed by the State under the Maryland Public Information Act, Section 10 611 et seq. of the State Government Article of the Annotated Code of Maryland.

(e) Foreign Corporations – Pursuant to the Corporations and Associations, Title 7 of the Annotated Code of Maryland, corporations not incorporated in the State shall register with the State Department of Assessments and Taxation, before doing any interstate or foreign business in this State. Before doing any intrastate business in this State, a foreign corporation shall qualify with the Department of Assessments and Taxation.

TC-2.04 PROPOSAL GUARANTY

(a) No bid will be considered for any Contract in excess of $100,000 unless accompanied by a guaranty in an amount not less than 5 percent of the amount bid, or such amount as may be specified elsewhere in the bid documents and made payable to the State of Maryland.

(b) Acceptable forms of security for bid guaranty shall be:

(1) A bond that is electronically verifiable through the Administration-required electronic bidding software and website in a form satisfactory to the State underwritten by a surety company authorized to do business in this State;

(2) A bank certified check, bank cashier's check, bank treasurer's check, or trust account;

(3) Pledge of securities backed by the full faith and credit of the United States government or bonds issued by the State of Maryland; or

(4) Cash or other securities—if submitted pursuant to COMAR 21.06.07.01.

TC-2.05 DELIVERY OF BIDS

The bid shall be submitted only via the Administration-required electronic bidding software and website. Paper copy submittals of the bid will not be accepted, except for the Proposal Guaranty submitted in accordance with GP-2.07. An authorized representative is required to sign the bid electronically. The Administration may choose to reject a bid if it is not electronically signed by an authorized representative.

The bidder shall ensure delivery of its bid with all required components and attachments, including, but not limited to:

(a) Schedule of Prices.

(b) Proposal electronic bidding file with Bidder’s Certificate.

(c) Bid Security;

(1) Bid Bond with electronic verification.

(2) All other forms of guaranty should list the contract number, the bid opening date and must be sent to or delivered to: Attention: C/O Contracts Award Team, Building #4, Maryland State Highway Administration, located at 7450 Traffic Drive, Hanover MD 21076.

(3) No bid will be considered unless the proposal guaranty is received by the Administration by the bid opening date and time. An acknowledgement may be obtained by the bidder as a proof of proposal guaranty delivery.

(d) MBE/DBE forms.

(e) Other related documents as specified in the Contract.

The Bidder is solely responsible for any errors and for timely submission of the bid, all components thereof, and all attachments, through the electronic bidding system. The Administration assumes no responsibility for any claim arising from the failure of any Bidder or of the electronic delivery system to cause any bid, bid component, or attachment to not be delivered or to deliver corrupt files before the time set for bid opening.

TC-2.06 AMENDMENTS TO INVITATIONS FOR BIDS

(a) Form. Each amendment to an Invitation for Bids shall only be made electronically and identified as such.

(b) Acknowledgements. The bidder shall acknowledge receipt of all amendments through the Administration-required electronic bidding software and website.

TC-2.07 PRE-OPENING MODIFICATION OR WITHDRAWAL OF BIDS

(a) Procedure. Bids may be modified or withdrawn only through the Administration-required electronic bidding software and website before the time and date set for bid opening.

(b) Disposition of Bid Security. If a bid is withdrawn in accordance with this regulation, the bid security, if any, shall be returned to the bidder.

TC-2.08 LATE BIDS, LATE WITHDRAWALS, AND LATE MODIFICATION

(a) Policy. The Administration-required electronic bidding software and website will not accept the submission of bids after the designated time and date set for bid opening. The Administration-required electronic bidding software will neither allow the withdrawal nor the modification to a submittal after the designated time and date set for bid opening. Any bid received at the place designated in the solicitation after the time and date set for receipt of bids is late. Any request for withdrawal or request for modification received after the time and date set for opening of bids at the place designated for opening is late.

(b) Treatment. A late bid, late request for modification, or late request for withdrawal may not be considered. Late bids will be returned to the bidder unopened. Upon written approval of the Office of the Attorney General, exceptions may be made when a late bid, withdrawal, or modification is received before Contract award, and the bid, withdrawal, or modification would have been timely but for the action or inaction of State personnel directing the procurement activity or their employees.

NOTE: Provision TC-2.08(b) does not apply to Federal Aid projects.

TC-2.09 CANCELLATION OF INVITATIONS FOR BIDS

(a) Before opening of bids a solicitation may be cancelled in whole or in part when the State determines this action is fiscally advantageous or otherwise in its best interest.

(b) When a solicitation is cancelled before bid opening, the bid security shall be returned to the vendors submitting them and notice of cancellation shall be included.

TC-2.10 VALUE ENGINEERING CHANGE PROPOSALS

The Contractor may submit to the District Engineer, in writing, Value Engineering Change Proposals (VECP) for modifying the Contract Documents for the purpose of reducing the total cost of construction without reducing design capacity or quality of the finished product. The District Engineer will then forward the proposal to the Chief Engineer with recommended action. The final decision to accept or deny the VECP will be made by the Chief Engineer. The Administration will not consider appeals once the final decision is made. If accepted by the Administration, net savings resulting from a VECP will be equally divided between the Administration and the Contractor.

The Contractor may elect to pursue one of the following options:

Option 1— Submit the detailed plans, specifications, and estimate of savings, or

Option 2— Submit a written concept of the VECP for tentative approval and if accepted, submit the detailed plans, specifications, and estimate for final approval at a later date.

Each VECP shall result in a net savings to the Contract cost without impairing essential functions and characteristics of the items or of any other part of the project, including but not limited to service life, reliability, economy of operation, ease of maintenance, desired aesthetics, and safety.

As a minimum, the Contractor shall submit the following information before final approval of a VECP can be given:

(a) A statement that the proposal is submitted as a VECP.

(b) A statement concerning the basis for the VECP and benefits to the Administration, together with an itemization of the Contract items and requirements affected by the VECP.

(c) A detailed estimate of the cost under the existing Contract and under the VECP.

(d) Proposed plans, specifications, and recommendations as to how the VECP changes shall be accomplished.

(e) A statement as to the time by which a change order adopting the VECP must be issued so as to obtain the maximum cost effectiveness. The Administration will require 30 days to review and approve a VECP.

(f) The Contractor's engineering cost for the VECP.

The Administration will process the VECP in the same manner as prescribed for any other proposal that would necessitate issuance of a change order. The Administration may accept, in whole or in part, any VECP by issuing a change order, which will identify the VECP on which it is based. The Administration will not be liable to the Contractor for failure to accept or act upon any VECP submitted pursuant to these requirements nor for any delays to the work attributable to any VECP proposal. Until a proposal is affected by a change order, the Contractor shall remain obligated to the terms and conditions of the existing Contract. If an executed change order has not been issued by the date upon which the Contractor's proposal specifies that a decision should be made, or any other date as the Contractor may subsequently have specified in writing, the proposal shall be deemed rejected.

The change order affecting the necessary Contract modification will establish the net savings agreed upon, will provide for adjustment in the Contract prices or Contract time, and will indicate the net savings to be equally divided between the Contractor and the Administration. The Contractor's costs for preparation of the VECP and the Administration's costs to review and administer the VECP will be deducted from the gross savings. The Administration reserves the right to include in the agreement any conditions it deems appropriate for consideration, approval, and implementation of the proposal. The Contractor's 50 percent share of the net savings shall constitute full compensation for affecting all changes pursuant to the agreement.

Acceptance of the VECP and performance of the additional work will not change the Contract time limit as a result of the VECP, unless specifically provided for in the change order authorizing the VECP.

The Administration expressly reserves the right to adopt a VECP for general use in Contracts administered by the Administration when it determines that the proposal is suitable for application to other Contracts. VECPs identical or similar to previously submitted proposals will be eligible for consideration and compensation under these provisions if such proposals were not previously adopted for general application to other Contracts administered by the Administration. When a VECP is adopted for general use, compensation pursuant to these requirements will be applied only to those Contracts awarded and for which the subject VECP has been submitted prior to the date of adoption of the specific VECP.

Proposed changes in the basic design of a bridge or pavement type, or requiring modification to the right of way limits, will not normally be considered as an acceptable VECP. Quantity decreases or elimination of any Contract pay items as a result of changing field conditions, errors, etc. will not be considered as an acceptable VECP. If a VECP is based upon or similar to a change in the Plans, Specifications, or Special Provisions adopted by the Administration prior to submission of the VECP, the Chief Engineer will reject the proposal.

These requirements apply to all VECPs initiated and developed by the Contractor and which are identified as such by the Contractor at the time of its submission to the Chief Engineer; however, nothing herein shall be construed as requiring the Chief Engineer to consider or approve a VECP submitted by the Contractor.

Subject to these provisions, the Administration or any other public agency will have the right to use all or part of any accepted VECP on other projects without obligation or compensation of any kind to the Contractor.

In the event a VECP is accepted by the Administration, the provisions of the Contract Documents that pertain to adjustment of Contract unit prices due to alterations of Contract quantities will not apply to the items adjusted or deleted as a result of affecting the VECP by change order.

TC-2.11 OWNER/OPERATOR

For the purpose of labor compliance, the term "Owner/Operator" will be defined as being the individual who owns and operates their own vehicle.

The prevailing wage rates shall not apply to these individuals. However, they shall appear on the payroll of the Contractor or subcontractor with the notation "Owner/Operator".

Employees of Owner/Operator shall be subject to prevailing wage rates and shall appear on a certified payroll.

TC-2.12 DEBARMENT/SUSPENSION

Pursuant to Maryland Board of Public Works Advisory 2003-4, the Administration verifies whether bidders, their affiliates, or their subcontractors have been suspended or debarred by the State of Maryland or the federal government by using the following lists:

1. See http://bpw.maryland.gov/Pages/debarments.aspx for the State of Maryland debarment list.

2. See http://www.sam.gov/ and click on ‘Search Records’ for the federal debarment list.

TC-2.13 PARTNERING

The Administration invites the Contractor, subcontractors, and suppliers to participate in a voluntary partnership agreement for the work. The partnership will be structured to draw on the strengths of each organization through open communication, teamwork, and cooperative action to identify and achieve reciprocal goals. The objectives are effective and efficient Contract performance, completion within the Contract bid price, on schedule, and in conformance with the Contract Documents. This partnership will not change the legal relationship of the parties to the Contract nor relieve any party from any of the terms of the Contract.

The Administration will contact the Contractor to determine if there is an interest in partnering. If the Contractor is interested, the Administration's Assistant District Engineer Construction and the Contractor's management representative will meet, plan, and organize a partnering development team. Persons recommended to be on the team are: The Administration's District Engineer, Assistant District Engineer, Area Engineer, Construction Project Engineer, and Project Design Engineer, the Contractor's designated on site project manager, and key project supervision personnel of both the Contractor and principal subcontractors and suppliers. FHWA and key local government personnel will also be invited to attend as necessary. The initial workshop team meeting will be held prior to the Preconstruction Conference. Follow up workshops may be held regularly as agreed by the Contractor and the Administration.

The partnership will be bilateral. Participation is voluntary. All partnering costs will be shared equally by the Contractor and the Administration.