Oregon Chapter 279c
Chapter 279C — Public Contracting - Public Improvements and Related ContractsDownload Full 2005 Oregon Revised Statutes (coming soon!)
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Chapter 279C
— Public Contracting –
Public
Improvements and Related Contracts
2007 EDITION
PUBLIC CONTRACTING - PUBLIC IMPROVEMENTS
PUBLIC FACILITIES, CONTRACTING &
INSURANCE
GENERAL PROVISIONS
279C.005 Definitions
279C.010 Applicability
ARCHITECTURAL, ENGINEERING, LAND SURVEYING
AND RELATED SERVICES
279C.100 Definitions
for ORS 279C.100 to 279C.125
279C.105 Contracts
for architectural, engineering, land surveying and related services; procedures
279C.107 Public
disclosure of contents of proposals for architectural, engineering or land
surveying services; treatment of trade secrets and confidential information
279C.110 Selection
procedure for architects, engineers and land surveyors; compensation;
applicability
279C.115 Direct
contracts for services of architects, engineers and land surveyors
279C.120 Selection
procedure for related services
279C.125 Architectural,
engineering and land surveying services selection process for local government
public improvements procured through state agency; rules
PROCUREMENT OF CONSTRUCTION SERVICES
(General Policies)
279C.300 Policy
on competition
279C.305 Least-cost
policy for public improvements; costs estimates in budget process; use of
agency forces; record of costs
279C.310 Limitation
on contracting agency constructing public improvement
279C.315 Waiver
of damages for unreasonable delay by contracting agency against public policy
279C.320 Contracts
for construction other than public improvements
279C.325 Limitation
on contracting agency awarding contract to nonresident education service
district
(Competitive Bidding; Contract
Specifications; Exceptions; Exemptions)
279C.330 “Findings”
defined
279C.335 Competitive
bidding; exceptions; exemptions
279C.340 Contract
negotiations
279C.345 Specifications
for contracts; exemptions
279C.350 Exemption
procedure; appeal
279C.355 Evaluation
of public improvement projects not contracted by competitive bidding
(Solicitation; Contract Award; Rejection)
279C.360 Requirement
for public improvement advertisements
279C.365 Requirements
for solicitation documents and bids and proposals
279C.370 First-tier
subcontractor disclosure
279C.375 Award
of contract or multiple contracts; bonds; impermissible exclusions
279C.380 Performance
bond; payment bond; waiver of bonds
279C.385 Return
or retention of bid security
279C.390 Exemption
of contracts from bid security and bonds
279C.395 Rejection
of bids
(Competitive Proposals)
279C.400 Competitive
proposals; procedure
279C.405 Requests
for information, interest or qualifications; requirements for requests for
proposals
279C.410 Receipt
of proposals; evaluation and award
279C.412 Competitive
quotes for intermediate procurements
279C.414 Requirements
for competitive quotes
(Prequalification and Disqualification)
279C.430 Prequalification
of bidders
279C.435 Effect
of prequalification by Department of Transportation or Oregon Department of
Administrative Services
279C.440 Disqualification
from consideration for award of contracts
279C.445 Appeal
of disqualification
279C.450 Appeal
procedure for prequalification and disqualification decisions; hearing; costs;
judicial review
(Remedies)
279C.460 Action
by or on behalf of adversely affected bidder or proposer; exception for
personal services contract
279C.465 Action
against successful bidder; amount of damages; when action to be commenced;
defenses
279C.470 Compensation
for contractor on contract declared void by court; exceptions; applicability
CONSTRUCTION CONTRACTS GENERALLY
(Required Contract Conditions)
279C.500 “Person”
defined
279C.505 Conditions
concerning payment, contributions, liens, withholding, drug testing
279C.510 Demolition
contracts to require material salvage; lawn and landscape maintenance contracts
to require composting or mulching
279C.515 Conditions
concerning payment of claims by public officers, payment to persons furnishing
labor or materials and complaints
279C.520 Condition
concerning hours of labor
279C.525 Provisions
concerning environmental and natural resources laws; remedies
279C.527 Inclusion
of amount for solar energy technology in public improvement contract; written
determination of appropriateness; exemptions and limitations
279C.528 State
Department of Energy requirements and specifications; rules
279C.530 Condition
concerning payment for medical care and providing workers’ compensation
279C.535 Condition
concerning steel material; rules
(Hours of Labor)
279C.540 Maximum
hours of labor on public contracts; holidays; exceptions; liability to workers;
rules
279C.545 Time
limitation on claim for overtime; posting of circular by contractor
(Retainage and Payments)
279C.550 “Retainage”
defined
279C.555 Withholding
of retainage
279C.560 Form
of retainage
279C.565 Limitation
on retainage requirements
279C.570 Prompt
payment policy; progress payments; retainage; interest; exception; settlement
of compensation disputes
(Subcontractors)
279C.580 Contractor’s
relations with subcontractors
279C.585 Authority
to substitute undisclosed first-tier subcontractor; circumstances; rules
279C.590 Complaint
process for substitutions of subcontractors; civil penalties
(Action on Payment Bonds and Public Works
Bonds)
279C.600 Right
of action on payment bond or public works bond of contractor or subcontractor;
notice of claim
279C.605 Notice
of claim
279C.610 Action
on contractor’s public works bond or payment bond; time limitation
279C.615 Preference
for labor and material liens
279C.620 Rights
of person providing medical care to employees of contractor
279C.625 Joint
liability when payment bond not executed
(Termination or Suspension of Contract for
Public Interest Reasons)
279C.650 “Labor
dispute” defined
279C.655 Extension
and compensation when work suspended
279C.660 Compensation
when contract terminated due to public interest
279C.665 Contractual
provisions for compensation when contract terminated due to public interest
279C.670 Application
of ORS 279C.650 to 279C.670
PREVAILING WAGE RATE
279C.800 Definitions
for ORS 279C.800 to 279C.870
279C.805 Policy
279C.807 Workforce
diversity for public works projects
279C.808 Rules
279C.810 Exemptions;
rules
279C.815 Determination
of prevailing wage; sources of information; comparison of state and federal
prevailing wage; other powers of commissioner
279C.817 Determination
of applicability of prevailing wage rate; time limitation; hearing; rules
279C.820 Advisory
committee to assist commissioner
279C.825 Fees;
rules
279C.827 Division
of public works project; applicability of prevailing wage rate to divided projects
279C.830 Provisions
concerning prevailing rate of wage in specifications, contracts and
subcontracts; applicability of prevailing wage; fee; bond
279C.835 Notifying
commissioner of public works contract
279C.836 Public
works bond; rules
279C.838 Applicability
of state and federal rates of wage; determination of site of project;
determination of applicability of wage to transportation workers; waiver
279C.840 Payment
of prevailing rate of wage; posting of rates and fringe benefit plan provisions
279C.845 Certified
statements regarding payment of prevailing rates of wage; retainage
279C.850 Inspection
to determine whether prevailing rate of wage being paid; civil action for
failure to pay prevailing rate of wage or overtime
279C.855 Liability
for violations
279C.860 Ineligibility
for public works contracts for failure to pay or post notice of prevailing
rates of wage; certified payroll reports to commissioner
279C.865 Civil
penalties
279C.870 Civil
action to enforce payment of prevailing rates of wage
GENERAL PROVISIONS
279C.005
Definitions. ORS 279A.010
(1) contains general definitions applicable throughout this chapter. [2003
c.794 §88]
279C.010
Applicability. Except as
provided in ORS 279C.320, public contracting under this chapter is subject to
ORS chapter 279A, but not ORS chapter 279B. [2003 c.794 §88a; 2005 c.103 §9]
ARCHITECTURAL,
ENGINEERING, LAND SURVEYING AND RELATED SERVICES
279C.100
Definitions for ORS 279C.100 to 279C.125. As used in ORS 279C.100 to 279C.125:
(1) “Architect” means a person who is
registered and holds a valid certificate in the practice of architecture in the
State of
(2) “Architectural, engineering and land
surveying services” means professional services that are required to be
performed by an architect, engineer or land surveyor.
(3) “Engineer” means a person who is
registered and holds a valid certificate in the practice of engineering in the
State of
(4) “Land surveyor” means a person who is
registered and holds a valid certificate in the practice of land surveying in
the State of Oregon, as provided under ORS 672.002 to 672.325, and includes all
terms listed in ORS 672.002 (5).
(5) “Personal services” means the services
of a person or persons that are designated by a state contracting agency with
procurement authority under ORS 279A.050 or a local contract review board as
personal services. “Personal services” includes architectural, engineering and
land surveying services procured under ORS 279C.105 or 279C.110 and related
services procured under ORS 279C.120.
(6) “Related services” means personal
services, other than architectural, engineering and land surveying services,
that are related to the planning, design, engineering or oversight of public
improvement projects or components thereof, including but not limited to
landscape architectural services, facilities planning services, energy planning
services, space planning services, environmental impact studies, hazardous
substances or hazardous waste or toxic substances testing services, wetland
delineation studies, wetland mitigation studies, Native American studies,
historical research services, endangered species studies, rare plant studies,
biological services, archaeological services, cost estimating services,
appraising services, material testing services, mechanical system balancing
services, commissioning services, project management services, construction
management services and owner’s representative services or land-use planning
services. [2003 c.794 §89; 2005 c.103 §10; 2005 c.445 §12]
279C.105
Contracts for architectural, engineering, land surveying and related services;
procedures. (1) Except as
provided in ORS 279A.140, contracting agencies may enter into contracts for
architectural, engineering and land surveying services and related services.
The Oregon Department of Administrative Services shall enter into contracts for
architectural, engineering and land surveying services and related services on
behalf of state contracting agencies that are subject to ORS 279A.140. The
provisions of this section do not relieve the contracting agency of the duty to
comply with ORS 279A.140, any other law applicable to state contracting
agencies, or any applicable city or county charter provisions. Each contracting
agency authorized to enter into contracts for architectural, engineering and
land surveying services and related services shall adopt procedures for the
screening and selection of persons to perform those services under ORS 279C.110
or 279C.120.
(2) A state contracting agency with
procurement authority under ORS 279A.050 or a local contract review board by
ordinance, resolution, administrative rule or other regulation may designate
certain personal services contracts or classes of personal services contracts
as contracts for architectural, engineering and land surveying services or
related services. [2003 c.794 §90; 2005 c.103 §11]
279C.107
Public disclosure of contents of proposals for architectural, engineering or
land surveying services; treatment of trade secrets and confidential information. (1) Notwithstanding the public records law,
ORS 192.410 to 192.505, if a contracting agency solicits a contract for
architectural, engineering or land surveying services or related services by a
competitive proposal:
(a) Proposals may be opened so as to avoid
disclosure of contents to competing proposers during, when applicable, the
process of negotiation.
(b) Proposals are not required to be open
for public inspection until after the notice of intent to award a contract is
issued.
(2) Notwithstanding any requirement to
make proposals open to public inspection after the contracting agency’s
issuance of notice of intent to award a contract, a contracting agency may
withhold from disclosure to the public trade secrets, as defined in ORS
192.501, and information submitted to a public body in confidence, as described
in ORS 192.502, that are contained in a proposal. The fact that proposals are
opened at a public meeting as defined in ORS 192.610 does not make their
contents subject to disclosure, regardless of whether the public body opening
the proposals fails to give notice of or provide for an executive session for
the purpose of opening proposals. If a request for proposals is canceled after
proposals are received, the contracting agency may return a proposal to the
proposer that made the proposal. The contracting agency shall keep a list of
returned proposals in the file for the solicitation. [2007 c.764 §41]
279C.110
Selection procedure for architects, engineers and land surveyors; compensation;
applicability. (1) A state
contracting agency shall select consultants to provide architectural,
engineering or land surveying services on the basis of qualifications for the
type of professional service required. A state contracting agency may solicit
or use pricing policies and proposals or other pricing information to determine
consultant compensation only after the agency has selected a candidate pursuant
to subsection (3) of this section.
(2) This section applies only if the
architectural, engineering or land surveying services contract is issued by a
state contracting agency and does not apply to any such contract issued by a
local contracting agency unless the following conditions apply:
(a) The local contracting agency receives
moneys from the State Highway Fund under ORS 366.762 or 366.800 or a grant or
loan from the state that will be used to pay for any portion of the design and
construction of the project;
(b) The total amount of any grants, loans
or moneys from the State Highway Fund and from the state for the project
exceeds 10 percent of the value of the project; and
(c) The value of the project exceeds
$900,000.
(3) Subject to the requirements of
subsections (1) and (2) of this section, the procedures that a contracting
agency creates for the screening and selection of consultants and the selection
of a candidate under this section shall be within the sole discretion of the
contracting agency and may be adjusted to accommodate the contracting agency’s
scope, schedule and budget objectives for a particular project. Adjustments to
accommodate a contracting agency’s objectives may include provision for the
direct appointment of a consultant if the value of the project does not exceed
a threshold amount as determined by the contracting agency. Screening and
selection procedures may include a consideration of each candidate’s:
(a) Specialized experience, capabilities
and technical competence that may be demonstrated by the proposed approach and
methodology to meet the project requirements;
(b) Resources available to perform the
work and the proportion of the candidate staff’s time that would be spent on
the project, including any specialized services, within the applicable time
limits;
(c) Record of past performance, including
but not limited to price and cost data from previous projects, quality of work,
ability to meet schedules, cost control and contract administration;
(d) Ownership status and employment
practices regarding minority, women and emerging small businesses or
historically underutilized businesses;
(e) Availability to the project locale;
(f) Familiarity with the project locale;
and
(g) Proposed project management
techniques.
(4) If the screening and selection
procedures created by a contracting agency under subsection (3) of this section
result in the determination by the contracting agency that two or more
candidates are equally qualified, the contracting agency may select a candidate
through any process adopted by the contracting agency.
(5) The contracting agency and the selected
candidate shall mutually discuss and refine the scope of services for the
project and shall negotiate conditions, including but not limited to
compensation level and performance schedule, based on the scope of services.
The compensation level paid must be reasonable and fair to the contracting
agency as determined solely by the contracting agency. Authority to negotiate a
contract under this section does not supersede any provision of ORS 279A.140 or
279C.520.
(6) If the contracting agency and the
selected candidate are unable for any reason to negotiate a contract at a
compensation level that is reasonable and fair to the contracting agency, the
contracting agency shall, either orally or in writing, formally terminate
negotiations with the selected candidate. The contracting agency may then
negotiate with another candidate. The negotiation process may continue in this
manner through successive candidates until an agreement is reached or the
contracting agency terminates the consultant contracting process.
(7) It is the goal of this state to
promote a sustainable economy in the rural areas of the state. In order to
monitor progress toward this goal, a state contracting agency to which this
section applies shall keep a record of the locations for the architectural,
engineering and land surveying services contracts and related services
contracts to be performed throughout the state, the locations of the selected
consultants and the direct expenses on each contract. This record shall include
the total number of contracts over a 10-year period for each consultant firm.
The record of direct expenses shall include all personnel travel expenses as a
separate and identifiable expense on the contract. Upon request, the state
contracting agency shall make these records available to the public. [2003
c.794 §91; 2003 c.794 §92; 2005 c.509 §§1,3]
279C.115
Direct contracts for services of architects, engineers and land surveyors. (1) As used in this section, “consultant”
means an architect, engineer or land surveyor.
(2) A local contracting agency may enter
into an architectural, engineering or land surveying services contract directly
with a consultant if the project described in the contract consists of work
that has been substantially described, planned or otherwise previously studied
or rendered in an earlier contract with the consultant that was awarded under
rules adopted under ORS 279A.065 and the new contract is a continuation of that
project.
(3) A local contracting agency may adopt
criteria for determining when this section applies to an architectural,
engineering or land surveying services contract. [2003 c.794 §94]
279C.120
Selection procedure for related services. (1) A contracting agency may select consultants to perform related
services:
(a) In accordance with screening and
selection procedures adopted under ORS 279C.105;
(b) On the basis of the qualifications of
the consultants for the types of related services required, under the
requirements of ORS 279C.110; or
(c) On the basis of price competition, price
and performance evaluations, an evaluation of the capabilities of bidders to
perform the needed related services or an evaluation of the capabilities of the
bidders to perform the needed related services followed by negotiations between
the parties on the price for those related services.
(2) Subject to the requirements of
subsection (1) of this section, the procedures that a contracting agency adopts
for the screening and selection of consultants and the selection of a candidate
under this section is within the sole discretion of the contracting agency and
may be adjusted to accommodate the contracting agency’s scope, schedule and
budget objectives for a particular project. Adjustments to accommodate a
contracting agency’s objectives may include provision for the direct
appointment of a consultant if the value of the project does not exceed a
threshold amount as determined by the contracting agency. [2003 c.794 §95]
279C.125
Architectural, engineering and land surveying services selection process for
local government public improvements procured through state agency; rules. (1) The Department of Transportation, the
Oregon Department of Administrative Services or any other state contracting
agency shall adopt rules establishing a two-tiered selection process for
contracts with architects, engineers and land surveyors to perform personal
services contracts. The selection process shall apply only if:
(a) A public improvement is owned and
maintained by a local government; and
(b) The Department of Transportation, the
Oregon Department of Administrative Services or another state contracting
agency will serve as the lead state contracting agency and will execute
personal services contracts with architects, engineers and land surveyors for
work on the public improvement project.
(2) The selection process required by
subsection (1) of this section must require the lead state contracting agency
to select no fewer than the three most qualified consultants when feasible in
accordance with ORS 279C.110.
(3) The local government is responsible
for the final selection of the consultant from the list of qualified
consultants selected by the lead state contracting agency or through an
alternative process adopted by the local government.
(4) Nothing in this section applies to the
selection process used by a local contracting agency when the contracting
agency executes a contract directly with architects, engineers or land
surveyors. [2003 c.794 §96]
PROCUREMENT
OF CONSTRUCTION SERVICES
(General
Policies)
279C.300
Policy on competition. It is
the policy of the State of Oregon that public improvement contracts awarded
under this chapter must be based on competitive bidding, except as otherwise
specifically provided in ORS 279C.335 for exceptions and formal exemptions from
competitive bidding requirements. [2003 c.794 §97]
279C.305
Least-cost policy for public improvements; costs estimates in budget process;
use of agency forces; record of costs. (1) It is the policy of the State of
(2) Not less than 30 days prior to
adoption of the contracting agency’s budget for the subsequent budget period,
each contracting agency shall prepare and file with the Commissioner of the
Bureau of Labor and Industries a list of every public improvement known to the
contracting agency that the contracting agency plans to fund in the budget
period, identifying each improvement by name and estimating the total on-site
construction costs. The list shall also contain a statement as to whether the
contracting agency intends to perform the construction through a private
contractor. If the contracting agency intends to perform construction work
using the contracting agency’s own equipment and personnel on a project
estimated to cost more than $125,000, the contracting agency shall also show
that the contracting agency’s decision conforms to the policy stated in
subsection (1) of this section. The list is a public record and may be revised
periodically by the agency.
(3) Before a contracting agency constructs
a public improvement with its own equipment or personnel:
(a) If the estimated cost exceeds
$125,000, the contracting agency shall prepare adequate plans and
specifications and the estimated unit cost of each classification of work. The
estimated cost of the work must include a reasonable allowance for the cost,
including investment cost, of any equipment used. As used in this paragraph, “adequate”
means sufficient to control the performance of the work and to ensure
satisfactory quality of construction by the contracting agency personnel.
(b) The contracting agency shall cause to
be kept and preserved a full, true and accurate account of the costs of
performing the work, including all engineering and administrative expenses and
the cost, including investment costs, of any equipment used. The final account
of the costs is a public record.
(4) Subsections (2) and (3) of this
section do not apply to a contracting agency when the public improvement is to
be used for the distribution or transmission of electric power.
(5) For purposes of this section,
resurfacing of highways, roads or streets at a depth of two or more inches and
at an estimated cost that exceeds $125,000 is a public improvement. [2003 c.794
§98]
279C.310
Limitation on contracting agency constructing public improvement. If a contracting agency fails to adopt and
apply a cost accounting system that substantially complies with the model cost
accounting guidelines developed by the Oregon Department of Administrative
Services pursuant to section 3, chapter 869, Oregon Laws 1979, as determined by
an accountant qualified to perform audits required by ORS 297.210 and 297.405
to 297.555 (Municipal Audit Law), the contracting agency may not construct a
public improvement with the contracting agency’s own equipment or personnel if
the cost exceeds $5,000. [2003 c.794 §99]
279C.315
Waiver of damages for unreasonable delay by contracting agency against public
policy. (1) Any clause in a
public improvement contract that purports to waive, release or extinguish the
rights of a contractor to damages or an equitable adjustment arising out of
unreasonable delay in performing the contract, if the delay is caused by acts
or omissions of the contracting agency or persons acting therefor, is against
public policy and is void and unenforceable.
(2) Subsection (1) of this section is not
intended to render void any contract provision that:
(a) Requires notice of any delay;
(b) Provides for arbitration or other
procedures for settlement of contract disputes; or
(c) Provides for reasonable liquidated
damages. [2003 c.794 §100]
279C.320
Contracts for construction other than public improvements. (1) Contracting agencies shall enter into
contracts for emergency work, minor alteration, ordinary repair or maintenance
of public improvements, as well as any other construction contract that is not
defined as a public improvement under ORS 279A.010, in accordance with the
provisions of ORS chapter 279B. Contracts for emergency work are regulated
under ORS 279B.080.
(2) Nothing in this section relieves
contracting agencies or contractors of any other relevant requirements under
this chapter, including payment of prevailing wage rates when applicable.
(3) When construction services are not
considered to be a public improvement under this chapter because no funds of a
public agency are directly or indirectly used, except for participation that is
incidental or related primarily to project design or inspection, the benefiting
public body may nonetheless condition acceptance of the services on receipt of
such protections as the public body considers to be in the public interest,
including a performance bond, a payment bond and appropriate insurance. [2003
c.794 §101; 2007 c.764 §13]
279C.325
Limitation on contracting agency awarding contract to nonresident education
service district. A
contracting agency may not award a public improvement contract, a contract for
a public works, as defined in ORS 279C.800, or a contract for personal
services, as defined in ORS 279C.100, to a nonresident bidder, as defined in
ORS 279A.120, that is an education service district. [2005 c.413 §2]
(Competitive
Bidding; Contract Specifications; Exceptions; Exemptions)
279C.330
“Findings” defined. As used
in ORS 279C.335, 279C.345 and 279C.350, “findings” means the justification for
a contracting agency conclusion that includes, but is not limited to,
information regarding:
(1) Operational, budget and financial
data;
(2) Public benefits;
(3) Value engineering;
(4) Specialized expertise required;
(5) Public safety;
(6) Market conditions;
(7) Technical complexity; and
(8) Funding sources. [2003 c.794 §102]
279C.335
Competitive bidding; exceptions; exemptions. (1) All public improvement contracts shall be based upon competitive
bids except:
(a) Contracts made with qualified
nonprofit agencies providing employment opportunities for individuals with
disabilities under ORS 279.835 to 279.855.
(b) A public improvement contract exempt
under subsection (2) of this section.
(c) A public improvement contract with a
value of less than $5,000.
(d) A contract not to exceed $100,000 made
under procedures for competitive quotes in ORS 279C.412 and 279C.414.
(e) Contracts for repair, maintenance,
improvement or protection of property obtained by the Department of Veterans’
Affairs under ORS 407.135 and 407.145 (1).
(f) Energy savings performance contracts
entered into in accordance with rules of procedure adopted under ORS 279A.065.
(2) Subject to subsection (4)(b) of this
section, the Director of the Oregon Department of Administrative Services, a
local contract review board or, for contracts described in ORS 279A.050 (3)(b),
the Director of Transportation may exempt a public improvement contract or a
class of public improvement contracts from the competitive bidding requirements
of subsection (1) of this section upon approval of the following findings
submitted by the contracting agency or, if a state agency is not the
contracting agency, the state agency seeking the exemption:
(a) It is unlikely that the exemption will
encourage favoritism in the awarding of public improvement contracts or
substantially diminish competition for public improvement contracts.
(b) The awarding of public improvement
contracts under the exemption will likely result in substantial cost savings to
the contracting agency, to the state agency based upon the justification and
information described in ORS 279C.330 or, if the contracts are for public
improvements described in ORS 279A.050 (3)(b), to the contracting agency or the
public. In making the finding, the Director of the Oregon Department of
Administrative Services, the Director of Transportation or the local contract
review board may consider the type, cost and amount of the contract, the number
of persons available to bid and such other factors as may be deemed
appropriate.
(c) As an alternative to the finding
described in paragraph (b) of this subsection, when a contracting agency or
state agency seeks an exemption that would allow the use of an alternate
contracting method that the agency has not previously used, the agency may make
a finding that identifies the project as a pilot project for which the agency
intends to determine whether the use of the alternate contracting method
actually results in substantial cost savings to the contracting agency, to the
state agency or, if the contract is for a public improvement described in ORS
279A.050 (3)(b), to the contracting agency or the public. The agency shall
include an analysis and conclusion regarding actual cost savings, if any, in
the evaluation required under ORS 279C.355.
(3) In making findings to support an
exemption for a class of public improvement contracts, the contracting agency
or state agency shall clearly identify the class using the class’s defining
characteristics. Those characteristics shall include some combination of
project descriptions or locations, time periods, contract values, methods of
procurement or other factors that distinguish the limited and related class of
public improvement contracts from the agency’s overall construction program.
The agency may not identify a class solely by funding source, such as a
particular bond fund, or by the method of procurement, but shall identify the
class using characteristics that reasonably relate to the exemption criteria
set forth in subsection (2) of this section.
(4) In granting exemptions under
subsection (2) of this section, the Director of the Oregon Department of
Administrative Services, the Director of Transportation or the local contract
review board shall:
(a) When appropriate, direct the use of
alternate contracting methods that take account of market realities and modern
practices and are consistent with the public policy of encouraging competition.
(b) Require and approve or disapprove
written findings by the contracting agency or state agency that support the
awarding of a particular public improvement contract or a class of public
improvement contracts, without the competitive bidding requirement of
subsection (1) of this section. The findings must show that the exemption of a
contract or class of contracts complies with the requirements of subsection (2)
of this section.
(5)(a) Before final adoption of the
findings required by subsection (2) of this section exempting a public
improvement contract or a class of public improvement contracts from the
requirement of competitive bidding, a contracting agency or state agency shall
hold a public hearing.
(b) Notification of the public hearing
shall be published in at least one trade newspaper of general statewide
circulation a minimum of 14 days before the hearing.
(c) The notice shall state that the public
hearing is for the purpose of taking comments on the draft findings for an
exemption from the competitive bidding requirement. At the time of the notice,
copies of the draft findings shall be made available to the public. At the
option of the contracting agency or state agency, the notice may describe the process
by which the findings are finally adopted and may indicate the opportunity for
any further public comment.
(d) At the public hearing, the contracting
agency or state agency shall offer an opportunity for any interested party to
appear and present comment.
(e) If a contracting agency or state
agency is required to act promptly due to circumstances beyond the agency’s
control that do not constitute an emergency, notification of the public hearing
may be published simultaneously with the agency’s solicitation of contractors
for the alternative public contracting method, as long as responses to the
solicitation are due at least five days after the meeting and approval of the
findings.
(6) The purpose of an exemption is to
exempt one or more public improvement contracts from competitive bidding
requirements. The representations in and the accuracy of the findings,
including any general description of the resulting public improvement contract,
are the bases for approving the findings and granting the exception. The
findings may describe anticipated features of the resulting public improvement
contract, but the final parameters of the contract are those characteristics or
specifics announced in the solicitation document.
(7) A public improvement contract awarded
under the competitive bidding requirement of subsection (1) of this section may
be amended only in accordance with rules adopted under ORS 279A.065.
(8) Public improvement contracts excepted
from competitive bid requirements under subsection (1)(a), (c), (d), (e) or (f)
of this section are not subject to the exemption requirements of subsection (2)
of this section. [2003 c.794 §103; 2003 c.794 §§104,105a; 2005 c.103 §§12,13,14;
2005 c.625 §§58,59,60; 2007 c.70 §§69,70,71; 2007 c.764 §§14,15,17]
279C.340
Contract negotiations. If a
public improvement contract is competitively bid and all responsive bids from
responsible bidders exceed the contracting agency’s cost estimate, the
contracting agency, in accordance with rules adopted by the contracting agency,
may negotiate with the lowest responsive, responsible bidder, prior to awarding
the contract, in order to solicit value engineering and other options to
attempt to bring the contract within the contracting agency’s cost estimate. A
negotiation with the lowest responsive, responsible bidder under this section
may not result in the award of the contract to that bidder if the scope of the
project is significantly changed from the original bid proposal.
Notwithstanding any other provision of law, the records of a bidder used in
contract negotiation under this section are not subject to public inspection
until after the negotiated contract has been awarded or the negotiation process
has been terminated. [2003 c.794 §106]
279C.345
Specifications for contracts; exemptions. (1) Specifications for public improvement contracts may not expressly
or implicitly require any product by any brand name or mark, nor the product of
any particular manufacturer or seller unless the product is exempt under
subsection (2) of this section.
(2) The Director of the Oregon Department
of Administrative Services, a local contract review board or, for contracts
described in ORS 279A.050 (3)(b), the Director of Transportation may exempt
certain products or classes of products from subsection (1) of this section
upon any of the following findings:
(a) It is unlikely that the exemption will
encourage favoritism in the awarding of public improvement contracts or
substantially diminish competition for public improvement contracts;
(b) The specification of a product by
brand name or mark, or the product of a particular manufacturer or seller,
would result in substantial cost savings to the contracting agency;
(c) There is only one manufacturer or
seller of the product of the quality required; or
(d) Efficient utilization of existing
equipment or supplies requires the acquisition of compatible equipment or
supplies. [2003 c.794 §107; 2007 c.764 §19]