R916.  Transportation, Operations, Construction.
R916-2.  Prequalification of Contractors.
R916-2-1.  Authority and Purpose.
	This rule establishes procedures for prequalifying contractors desiring to submit bids and proposals for Utah Department of Transportation construction projects.  This rule is authorized under Utah Code Ann. Sections 72-1-201 and 63G-6a-106(3)(a).

R916-2-2.  Definitions.
	(1)  Terms used in this rule are defined in Section 72-1-102.
	(2)  "Board" means the prequalification board, consisting of 4 positions: Department of Transportation Comptroller, Director of Construction and Materials, an engineer for construction, and the Prequalification Specialist, or designees.
	(3)  "Applicant" means any person who submits an application for prequalification.

R916-2-3.  Prequalification.
	(1)  Contractors desiring to submit bids or proposals for construction contracts shall be prequalified by the Department to ensure they have the resources and capability to successfully complete awarded contracts.  Prequalification is not required for projects that have an advertised estimate of $3,000,000 or less.
	(a)  Prequalification information is due at least 20 calendar days before submitting a proposal or bid on projects of more than $3,000,000.
	(b)  The Department may change an Applicant's prequalification status at any time if the Department receives favorable or unfavorable information about the Applicant's job work performance or financial performance.
	(c)  The prequalification amount limits the size of individual contracts and type of work for which a prequalified contractor may submit proposals or bids.
	(2)  Qualification ratings establish the type of construction work contractors may be permitted to perform and the maximum total dollar value of contracts contractors are allowed to undertake at any one time if not classified as unlimited.
	(3)  Applicants who attain a total prequalification of $50,000,000 will be classified as unlimited.  The Department will audit or review each Applicant's prequalification at least annually; more often if circumstances warrant, as determined by the Department or the Applicant.
	(4)  The Department will base an Applicant's prequalification ratings on the Applicant's:
	(a)  experience;
	(b)  past performance and safety record;
	(c)  personnel; and
	(d)  analysis of certified audited or reviewed financial statements, including balance sheet, income statements, assets including equipment, cash flow, and changes in financial condition.
	(e)  If current financial statements on file are reviewed and not audited, the Department may accept financial statements for the same period in lieu of the required certified audited financial statements; however, providing reviewed financial statements will result in a prequalification rating based on one-half the financial factor allowed if the applicant provides audited financial statements.
	(5)  An applicant may submit a guaranty of financial support provided by an affiliated but independent entity.  The Department will provide applicants a guarantee agreement form for this purpose.  Applicants that submit a guaranty of financial support must submit the Department's guarantee agreement form with their applications.  The guarantee may increase an applicant's adjusted equity by a maximum of 50% of the applicant's calculated adjusted equity in the formula, as determined by the Department.
	(6)  The applicant may only provide the experience and past performance of the applicant and must submit financial reports that accurately represent the past financial performance and present financial condition of the applicant.
	(7)  The Department may reject an application and not pre-qualify an Applicant if the Applicant:
	(a)  fails to provide all requested information;
	(b)  provides false, misleading, or incorrect information;
	(c)  has now or in the past had an officer, member or owner who was convicted of a felony;
	(d)  is now or has been suspended or debarred by any governmental entity;
	(e)  has failed to complete a construction contract as the prime contractor;
	(f)  has an average contractor rating over the past 5 projects that falls below 70%;
	(g)  has been convicted or held liable for any crime or civil offense that involved collusive or deceptive activity related to a procurement process; or
	(h)  otherwise fails to meet the Department's requirements.
	(8)  This rule shall be administered to ensure that Applicants possess adequate financial resources to provide complete performance of contracts awarded to them by the Department, and to foster and protect competition in the Department's bidding processes.
	(9)  The Department will not accept any pledges.

R916-2-4.  Joint Venture.
	(1)  Joint ventures must submit a letter of intent to the Department's Prequalification Board Specialist prior to bidding as a joint venture.  The letter must state whether the joint venture partners intend to bid on a single project, or on multiple projects.  If the intent is to bid on a single project, the letter of intent must identify the project by the Departments project number.  If the intent is to bid on multiple projects, the letter must request approval to bid as a continuing joint venture.  Approval to bid as a continuing joint venture will expire one year after the date the Department grants approval.  Joint ventures must submit their letter of intent together with an executed copy of their joint venture agreement at least 20 working days before the scheduled bid opening, or the first scheduled bid opening a continuing joint venture intends to bid.  The Department will consolidate individual prequalification amounts for joint venture bids or proposals.
	(2)  Applicants must obtain the following under the joint venture designation before bid openings:
	(a)  Bid bond; and
	(b)  UDOT Contractor identification and password.

R916-2-5.  Prequalification Board.
	(1)  The Prequalification board is established to:
	(a)  direct the prequalification of contractors;
	(b)  review and analyze prequalification applications; and
	(c)  establish the amount and type of prequalification work classifications to be granted to contractors.

KEY:  bids, contracts, prequalification, contractor rating
Date of Enactment or Last Substantive Amendment:  May 9, 2018
Notice of Continuation:  August 3, 2016
Authorizing, and Implemented or Interpreted Law:  72-1-102; 72-1-201; 63G-6a-106(3)(a)