SECTION 752:11-7-7. Contract award

(a)   Bids are awarded on a lowest and best or Best Value criteria basis as indicated on the solicitation notice. If an award is made to other than the lowest bidder, the Authority shall prepare a statement setting forth the reason for its action and place that statement on file, open to public inspection. [61 O.S. § 117] The Authority will provide a copy of the contract to the successful bidder who shall be given a specific period of time, as outlined in project specifications, but not to exceed sixty days,. [61 O.S. § 113(A)], in which to execute the contract and obtain the necessary bonds and insurance.

(b)   Projects over $50,000 require three bonds. [61 O.S. § 113(B)] All bonds required by Title 61 of the Oklahoma Statutes shall be provided by insurance carriers, bonding companies, or surety companies that are prequalified by OMES as good and sufficient in accordance with criteria established by OMES. [61 O.S. § 134]

(1)   Performance bond. A bond with good and sufficient security valued at not less than the total value of the proposed contract which shall ensure the proper and prompt completion of the work in accordance with the contract and shall ensure that the contractor shall pay all indebtedness incurred by the contractor and his subcontractors and all suppliers for such labor, material, and repair of and parts for equipment as are used and consumed in the performance of the contract.

(2)   Defect bond. A good and sufficient bond in an amount equal to the total value of the contract to protect the Authority against defective workmanship and materials for a period of one (1) year after acceptance of the project.

(3)   Payment bond. A good and sufficient bond in an amount equal to the total value of the contract to protect the Authority against claims or liens from subcontractors or suppliers for services or materials used in the project.

(4)   Letters of credit. Irrevocable letters of credit may be substituted for the bonds listed, but each letter must be for the total value of the contract. Alternatively, a single irrevocable letter of credit may be substituted for the bonds listed.

(c)   If no timely bid is received after bid notices have been published on any proposed public construction contract which does not exceed $50,000, the Authority may negotiate the contract with a prospective contractor. The contract will be executed within six months after the date initially set for opening bids, and the work to be performed shall be as specified in the initial bidding documents. [61 O.S. § 119.1]

(d)   Public liability and workers' compensation insurance in reasonable amounts shall be required for all projects, regardless of project size. the Authority may require the contractor to name the Authority and its architects or engineers, or both, as an additional insured under the public liability insurance, which requirement, if made, shall be specified in the bid documents. [61 O.S. § 113(B)(4)]

(1)   Proof of workers' compensation insurance shall be required for all projects exceeding $50,000. The minimum level of coverage shall be the statutory requirement specified by Oklahoma law.

(2)   For projects less than $50,000, a sworn affidavit certifying an exemption to the requirement of workers' compensation insurance coverage may be accepted in lieu of proof of workers' compensation insurance.

(3)   Additional forms of insurance or increases in the insurance amounts may be required. Any additions or increases shall be contained in the bid documents.

[Source: Added at 36 Ok Reg 1970, eff 9-18-19]