1. Contractor bidding requirements. The bid process depends on the nature of the project.

• Small Orders – contracts for $20,000 or less may be obtained on the open market or by bid. Sealed bidding is not required.
• Competitive Quote Bids are required for contracts from $20,000.01 up to $50,000.  Ark. Code Ann. § 19-11-234.
• Formal Sealed Bid is required for contracts of $50,000.01 or greater. Ark. Code Ann. § 22-9-203. Contractor licensure is required. For contracts over $50,000, any subcontractors must be licensed. Ark. Code Ann. § 22-9-204.

2. Procurement process. Design professional contracts may provide for the design professional to prepare documents and oversee invitations to bid and the bidding process. However, campus officials are ultimately responsible for compliance with Arkansas law, any applicable rules or regulations, and Board policy.

• Bidding requirements include the following:
  • Competitive sealed bids. Ark. Code Ann. §§ 19-4-1405 and 22-9-203:
    • Publish notice of intention to receive bids in a newspaper of general circulation in the county in which the work is being done, or in a trade journal reaching the construction industry.
      • Publication must be at least once a week for two consecutive weeks.
    • Published notice must provide the following minimum information:
      • A brief description of the kind or type of work contemplated.
      • The approximate location of the project.
      • Where bidders may obtain plans and specifications.
      • Date, time and place at which bids will be received.
      • The amount of the bid bond to be required. Minimum is 5% of the bid amount.
      • If late bids may be accepted, this must be stated in the bid notice.
      • Bids must be sealed.
      • Contractor must be licensed.
      • A statement that the Board reserves the right to reject any or all bids and to waive any formalities.
    • For projects in which the estimated costs will exceed $75,000, the bid documents must contain statements that encourage the participation of small, minority, and women’s business enterprises.
    • Where the work involves any trench or excavation of five feet or more in depth, the bid form must include a separate pay item for trench or excavation safety systems to be included in the base bid. Ark. Code Ann. § 22-9-212.
    • If the plans and specifications provide for bidding on alternates, the alternates must be deductive, and there may not be more than three alternates.
    • At the date and time announced, the bids are opened and compared, and the results tabulated and recorded.
    • An apparent low bidder that has submitted a responsive bid containing a bid drafting error, such as transposition of figures, may be relieved of responsibility and the bid rejected where accepting the bid would create a serious financial loss to the bidder.
    • For job order contracts the bid specifications must include a set of job order performance specifications, require the bidders to submit qualifications, and require the bidders to submit prices based on wage rates, inclusive of fringes and burden, and a pricing matrix for markups on materials and subcontractors. Ark. Code Ann. § 19-4-1416.
  • Competitive quote bids. Ark. Code Ann. § 19-11-234.
    • Request bids in writing, by direct mail, telephone, fax, e-mail or other electronic media.
    • There is no requirement of a formal deadline to receive bids.
    • Bid security is not required.
    • Use competitive bid form published by State Procurement.
    • If fewer than three bids are obtained, record the names of at least three firms that were contacted.
  • Historic site renovations.
    • Use of this process must be approved by the Arkansas Legislative Council.   Ark. Code Ann. § 22-9-209. This should be coordinated with the System Vice President for University Relations.
    • Advertise for bids in a newspaper of general circulation in the county in which the work is to be done or in a trade journal reaching the construction industry. Ark. Code Ann. § 22-9-209. The notice must be published once a week for two consecutive weeks.
    • In addition to the information required for ordinary competitive bids, the notice must inform bidders that the work will be contracted pursuant to Ark. Code Ann. §§ 22-9-208 to 22-9-211, and must require a resume of similar restorative work performed by the contractor.
• Major Capital projects – those in which the estimated cost, exclusive of property acquisition, exceeds $5,000,000. Bidding is not required for these project.
  • A project proposal, and a request to begin the selection process for architects, engineers, a contractor and a construction manager (if one is required) are submitted to the System Chief Financial Officer, following the process described in Board Policy 730.1.
  • After the President approves initiation of the process, the Chancellor or chief executive officer establishes a committee or committees to recommend selection of design professionals, a general contractor and, where appropriate, a construction manager. Board Policy 730.2(III).
  • The committee or committees publish a notice of intention to receive written proposals. The notice is published for three consecutive days, and must allow at least 10 working days for proposal submissions. Board Policy 730.2 (4III)(A).
  • The committee reviews submissions, choosing a minimum of three and a maximum of five applicants for interviews. Board Policy 730.2(III)(B).
    • The committee recommendations must consider the criteria established for the project, together with the factors described in Board Policy 730.2(III)(C).
  • The Committee submits its list of finalists, with recommendations, to the President, through the Chancellor or campus chief executive officer. Board Policy 730.2(III)(C).
  • The President submits the finalists and recommendations to the Board’s Building and Grounds Committee for final decision and for authority to execute contracts.
• Job order contracts.
  • Bidding follows the same process as for competitive sealed bids.
  • Advertisements for bid must describe the scope of work. Additional work within the scope of the initial bid may be performed through the contract term and any extensions of the contract term.
  • Job order contracts are issued for a single fiscal year, but may be extended from year to year for a total of four years. Ark. Code Ann. § 19-4-1416(d).
  • Bid must include qualifications and prices based on wage rates exclusive of fringes and burdens, plus a pricing matrix for markups on materials and subcontractors.
  • For each job order, the contractor must bid the subcontract work. Bids will be opened by the campus with the contractor present.
  • Campus may supply materials for the work, but must follow the commodities procurement process in acquiring materials.
• Emergency Contracting – projects involving unforeseen or unavoidable circumstances.  Ark. Code Ann. § 22-9-201 and Division of Building Authority Minimum Standards and Criteria § 3-202.
  • Emergency procurements may be made without complying with the notice and bid security requirements, and where invitations for bid are used, the time frames for notices to potential bidders do not apply.
    • A request to use emergency procedures must be submitted to the institution’s procurement officer or designee in advance, where practicable, and otherwise at the earliest practical date. Request for approval must include a copy of the purchase order, the bid or quotation abstract, and an written explanation of the emergency.
    • May use quote bids or sole source when the emergency is critical or there is obviously only one provider, as in the case of a regulated utility.
    • If Legislative review is required, prompt review may be available under the Arkansas Legislative Council’s Emergency Action rule.
    • Emergency contracting is limited to the following circumstances:
      • When human life, health, safety or state property is in jeopardy.
      • To reconstruct facilities, construct new facilities, and related site work due to fire, storm, riots or similar circumstances beyond the University’s control.
      • Construction or repairs to immediately needed equipment for facilities, where delay would result in overall higher expenditures or cause the Institution to lose revenue due to not providing the services for which it is responsible, including without limitation providing medical treatment or education.
• Energy Cost Savings Contracts procured under the Arkansas Guaranteed Energy Cost Savings Act.
  • Projects are procured through a request for proposal process, working through the Arkansas Energy Office (“AEO”).  The campus will work with the AEO to issue a request for proposals to the AEO prequalified contractors.  A committee of at least three campus employees appointed by the Chancellor or campus chief executive officer will evaluate the proposals and, in consultation with the AEO where appropriate, make recommendations for the selection of a contractor to provide an investment grade audit (“IGA”).
  • The Chancellor campus chief executive officer will choose the contractor to provide the IGA.
  • Upon receipt of the IGA report the campus may elect to contract for some or all of the services detailed in the IGA, or may decline to enter into a contract.
  • To qualify the project under the Guaranteed Energy Cost Savings Act the savings over the life of the contract (typically 20 years or less) must equal or exceed the cost of the project, including the cost of financing.
  • If after reviewing the IGA the campus elects to enter into an energy savings contract a project proposal will be submitted to the President. The proposal must include at a minimum a description of the project, the terms proposed by the contractor, the estimated cost of the project, the source of funds, the projected cost of funds and the dollar amount of energy savings to be guaranteed.
  • Upon the President’s approval the campus, along with the General Counsel’s office, will negotiate a draft contract, and the proposed terms, along with any request for financing, will be submitted to the Board for approval.