1. Bid Contracts.

• As a general rule, the contract will be awarded to the lowest responsible bidder if it is determined that the award would be in the University’s best interest. (see Ark. Code Ann. § §  19-4-1405 and 22-9-203(d)).  Different standards apply to historic renovation projects and job order contracts.
  • If the bids submitted exceed the amount appropriated for the contract, the campus may negotiate an award to the apparent responsible low bidder, if the low bid is within 25% of the amount appropriated.
  • Where the plans and specifications require bids on alternates, and all bids exceed the amount appropriated, the low bidder may be determined by deducting the alternates in numerical order.
• For job order contracts, the contract is to be awarded to the “most qualified bidder offering the best value.” Ark. Code Ann. 19-4-1416.
• For historic renovations, the contract is to be awarded based on evaluation of multiple factors including cost, proposed method, experience in similar work, and proposed materials. Ark. Code Ann. § 22-9-210. Cost is not a determining factor.
  • Contract recommendations for historic renovations must be submitted to the Department of Finance and Administration. Ark. Code Ann. § 22-9-210.
• When the contract amount exceeds $50,000, a contract may not be issued until a payment and performance bond is received from the contractor. Ark. Code Ann. §§ 18-44-501 and 22-9-401. In addition, the contractor must have provided all other required certifications and documents, properly executed.

2. Major Capital Projects.   The contract is to be awarded by the Board, after receiving the recommendation of the campus.   Awards are based on the Board’s determination of the best interest of the University. Board Policy 730.2.

3. Guaranteed Energy Cost Savings Contracts.

• The IGA does not obligate the campus to enter into a contract with the contractor. The campus may choose to separately contract some or all of the proposed work through competitive bidding or other ordinary procurement processes, but in that circumstance will not have the benefit of an energy savings guarantee.
• The contract for construction of the proposed energy improvements is awarded by the Board based on the best interests of the University.

4. Required contract provisions and certification.

• Arkansas law and, if federal funds are involved, federal law, require each contract to contain a number of standard conditions or certifications. These requirements change regularly. As of the date of this revision, the following are required:
  • All contracts must incorporate by reference specific language, from Governor’s Executive Order 98-04 or include a separate certification, and state that any violation of 98-04, or of any rule, regulation or policy adopted pursuant to the Order, shall be a material breach of the contract, and subject to applicable legal remedies.  The Contract and Grant Disclosure Form is posted on the website of the Office of State Procurement.
    • Before to entering into a subcontract exceeding $50,000, all subcontractors must also complete the Contract and Grant Disclosure and Certification form and the contractor must return these forms to the campus.
  • For contracts over $25,000 the contractor is required to certify that it does not employ illegal immigrants. Ark. Code Ann. § 19-11-105.
  • The contractor must certify that it does not and will not boycott Israel. Ark. Code Ann. § 25-1-503 to 504.
  • Contractor’s agreement that the contractor will not discriminate against any qualified employee or applicant for employment based on race, color, creed, national origin or ancestry. Ark. Code Ann. § 25-17-101.
  • For federally funded projects, Davis-Bacon Act prevailing wage provisions.
  • When the work involves any trench that will be five feet or deeper, the project must incorporate the current edition of the Occupational Safety and Health Administration Standard for Excavation and Trenches Safety System. Ark. Code Ann. § 22-9-212.
  • All contracts for more than $50,000 must include a payment and performance bond in the full amount of the contract.
• Other minimum contracting requirements:
  • Energy Cost Savings Contracts are to be based upon the AEO approved form of agreement, as modified by the General Counsel’s Office, and must provide a savings guarantee that complies with the requirements of the Arkansas Energy Cost Savings Act.
  • Contracts with architects, engineers and general contractors will be issued on General Counsel approved forms, modified to reflect the terms and needs of the particular project. The AIA forms for contracts with general contractors have been modified to suit the needs and legal requirements of the University.  If you do not have copies of these modified forms, please contact the General Counsel’s office for copies.
    • Form AIA 101-2017 is used for fixed price contracts, and AIA 102-2017 is for guaranteed maximum price contracts. In every case the AIA 201-2017 will also be required. A schedule of required insurance must be attached to the AIA 201-2017.
  • Contracts with engineers, architects, commissioning agents and construction managers must include the Services Agreement form published by DFA.
  • Insurance condition: No work may commence until the contractor has obtained all required insurance coverage and filed the certificates with the campus, which must confirm that the required insurance has been obtained.
  • All certificates of insurance shall identify the “Board of Trustees of the University of Arkansas” as certificate holder or additional insured. The contractor must maintain the required insurance coverage throughout the term of the contract.
    • While not required, it is recommended that an institution only accept policies issued by an insurer that has an A.M. Best claims paying ability rating of not less than “A-VII”.
  • Required insurance coverage. The dollar amount of coverage is a matter to be determined by the campus.  The Arkansas Insurance Department Risk Management Division publishes recommended limits for construction projects. The following types of coverage are required:
    • Commercial General Liability – required to maintain, at contractor’s expense. The Board will be listed as an additional insured for ongoing and completed operations and coverage will be “per project aggregate.”
    • Workers Compensation and Employer Liability – the contractor is required to maintain this coverage, at contractor’s expense, and in amounts required by Arkansas law. See Ark. Code Ann. §§11-9-404 and 11-9-408. This coverage must cover all employees who have performed any of the obligations assumed by the contractor including Employer’s Liability Insurance.
    • Umbrella or Excess Liability – required to maintain, at contractor’s expense, during the term of the contract in an amount appropriate to the project.
    • Automobile Liability – required to maintain, at contractor’s expense, including “any auto” or all of the following – “scheduled autos”, “hired autos” and “non-owned autos” in an amount appropriate to the project and
    • Builder’s Risk Insurance – required to maintain, at contractor’s expense, Builder’s Risk Insurance or, when appropriate, Installation Floater Insurance, and any extended coverage for damage to capital improvement projects.
      • Perils to be insured are fire, lighting, vandalism, malicious mischief, explosion, riot and civil commotion, smoke, sprinkler leakage, water damages, windstorm, hail and property theft on the insurable portion of a project on a 100% completed value basis against damage to equipment, structures or material.
  • Any subcontractor to be used for mechanical, plumbing, electrical or roofing work, when the subcontractor’s portion of the project is $50,000 or more, must be licensed and must be disclosed. Ark. Code Ann. § 22-9-204.
  • Specialty contractors and subcontractors must be licensed in their respective fields where licensure is available. For example, asbestos abatement contractors and consultants must be licensed by the Arkansas Department of Energy and Environment.