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Archived Rule Revisions for 2002

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                      DEPARTMENT OF TRANSPORTATION

                   BUREAU OF FINANCE & ADMINISTRATION

                  CLASSIFICATION AND RATING OF BIDDERS


(By authority conferred on the Department of Transportation by section 33  of 
1969 P.A. 306, MCL 24.233, section 1 of  1933  P.A.  170,  MCL  123.501,  and 
section 9 of 1964 P.A. 286, MCL 247.809)an Compiled Laws)


                        PART 1. GENERAL PROVISIONS


R 247.1    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.11    Definitions.
  Rule 11.  As used in these rules:
  (a) "Bidder" means an individual  proprietor,  a  person  acting  under  an 
assumed name, a partnership, a corporation, or  a  combination  thereof  that 
seeks to perform work for the department.  When a combination of any  of  the 
entities is prequalified, it shall be prequalified as only 1 bidder which may 
act through an authorized representative.
  (b) "Committee" means the  prequalification   committee    authorized    by 
these rules.
  (c) "Contractor" means a bidder that  has  been  awarded  a   contract   to 
perform construction, maintenance, or repair work for the  department.    For 
purposes  of  R  247.71  and  R  247.72,  "contractor"   also   includes    a 
subcontractor  of  a contractor.
  (d) "Day" means a calendar day.
  (e) "Department" means the Michigan department of transportation.
  (f) "Net financial rating"  means  the  dollar  amount   equal    to    the 
bidder's overall financial rating less its work on hand.
  (g) "Numerical rating" means the maximum dollar amount  for   a    specific 
work classification for which a bidder may submit a bid.
  (h) "Overall financial rating" means the overall dollar amount for  which a 
bidder is prequalified and represents the maximum amount of work   in   which 
the bidder may be engaged for any entity.
  (i) "Prequalification appeal board" means not more than 3   employees    of 
the department who are assigned to consider and make the final  decision   of 
the department on an appeal of a prequalification decision under part  8   of 
these rules.
  (j)  "Prequalification  application"  means  the   forms    developed    by 
the department to elicit the  information  needed  to  prequalify  bidders.
The prequalification application for a specific bidder includes the forms and 
the information  and   documentation   provided   by    the     bidder     to 
obtain prequalification.
  (k) "Prequalification manager" means the  department   employee    assigned 
to perform the responsibilities of the requalification manager as   delegated 
to him or her under these rules.  The requalification manager  may    consult 
with other persons in carrying out the assigned responsibilities.
  (l) "Prequalification review panel" means not more than 3   employees    of 
the  department  who  are  assigned  to  conduct  informal   review   of    a 
prequalification decision under part 8 of these rules in an effort to resolve 
the differences.
  (m) "Work classification" means a specific category of work   as    defined 
in the prequalification application.
  (n) "Work on hand" means the total uncompleted work for which  the   bidder 
is a prime contractor or subcontractor, excluding any work that  the   bidder 
has subcontracted to other contractors.

  History:  1979 AC; 2002 AACS.
 

                    PART 2. PREQUALIFICATION COMMITTEE


R 247.21    General duties.
  Rule 21.  The prequalification committee  shall  classify  and  numerically 
rate bidders for the department's construction, maintenance, or repair work.
 The 4 major factors used in arriving at this rating are as follows:
  (a) The bidder's financial resources and related information.
  (b) The bidder's experience, including that of key personnel on  work  of a 
similar nature.
  (c) The bidder's past performance.
  (d) Availability of equipment and facilities which the   bidder    proposes 
to use on the department's work.

  History:  1979 AC; 2002 AACS.


R 247.22    Action by prequalification committee.
  Rule   22.   (1)    After    approval    by     the     commission,     the 
prequalification committee shall review a bidder's application for all of the 
following:
  (a) Initial prequalification.
  (b) Renewal of prequalification.
  (c) Other relevant information  pertaining  to  the  prequlification  of  a 
bidder.
  (2) Based on the review, the prequalification committee   shall   determine 
and award or renew numerical ratings,  an  overall  financial   rating,   and 
work classifications for the bidder.  The prequalification  committee   shall 
review the bidder's contractor performance evaluations  for  at   least   the 
last  2 construction   seasons,   if   available,    before    awarding    or 
renewing prequalification.
  (3) If the suitability of the bidder is determined to   be   unsatisfactory 
for the  performance  of  the  work  and   the     continuance     of     the 
existing prequalification, the prequalification committee may, at any   time, 
deny  an application or decrease, suspend, revoke,  or  make  provisional   a 
bidder's overall financial rating or the numerical ratings on 1 or  more   of 
the  work classifications, based on an evaluation of all of the following:
  (a) Amount and variety of construction experience.
  (b) Quality of current and past work performance.
  (c) Record of payments of accounts and claims.
  (d) Organization and personnel.
  (e) Availability of equipment.
  (f) Financial resources.
  (g) Record of contract scheduling and completion.
  (h) Record of  compliance  with   requirements   of   the    contract    or 
federal, state, or local laws, regulations, or ordinances on the  subject  of 
safety  or environmental concerns.
  (i) Record of submittal of required documents.
  (j) Compliance with any applicable provisions of these rules.
  (k) Common ownership and control of bidding entity.
  (l) Compliance with the bidder's equal employment opportunity policy.
  (m) Compliance with any other contract provisions.
  (4) The prequalification committee shall notify a bidder in   writing    of 
all of the following:
  (a) The approved numerical ratings and work classifications.
  (b) Denial of prequalification.
  (c)  Any  granting,   continuation,   or     removal     of     provisional 
work classifications.
  (5)   The  prequalification  committee  may  refuse   to    consider     an 
application that fails to provide all of the  information  required  for  the 
application  or that does not comply with each provision of these rules.
  (6) The prequalification committee  may  deny,  decrease,    suspend,    or 
revoke the prequalification of a  bidder  who  submitted  a  prequalification 
application or other information required by these rules that  is   false  or 
misleading.
  (7) During  the  pendency  of  an  investigation  or   the    conduct    of 
proceeding under R 247.22(2), pertaining to an applicant or  a   prequalified 
bidder,  the prequalification committee may issue either of the following:
  (a) Provisional prequalification ratings pending a  final    determination, 
if necessary to assure that the bidder is suitable to perform the work.
  (b) A provisional rating that may limit the prequalification  granted    to 
an applicant or decrease or suspend the prequalification of a bidder.
  (8)  If  the  provisional  ratings  are  adverse  to  an  applicant  or   a 
prequalified bidder, the department shall conclude its    investigation    or 
proceedings  as soon as reasonably possible to enable the bidder to pursue an 
appeal  to  the prequalification appeal board under these rules.
  (9)  A  bidder  may   submit   an   appeal    of    the    prequalification 
committee's determination following the appeal procedure described in  part 8 
 of  these rules.

  History:  1979 AC; 2002 AACS.


                     PART 3. INFORMATION FROM BIDDERS


R 247.31    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.32      Filing   forms;   statements;   period    of     effect     for 
prequalification; extension of filing time.
  Rule  32.   (1)  The  department  is  not   required    to    consider    a 
prequalification application unless it is submitted not  less  than  15  days 
before the date  for opening bids for a project on which the  bidder  desires 
to bid.
  (2)    Interim   financial   statements   will   not    be    accepted.
The prequalification application shall include financial  statements  as   of 
the close of the bidder's most recent fiscal year.
  (3)  An  application  for   renewal   of   prequalifications    shall    be 
submitted within 4 months after the close of the bidder's fiscal year.
  (4) Subject to its modification or  revocation  as  provided    in    these 
rules, prequalification shall be in effect for 16 months from the date of the 
fiscal year end reported by the bidder,  and  on  which  prequalification  is 
based.
  (5) A bidder may file a written request for an extension of time  to   file 
an application for renewal of prequalification.  The request  shall  document 
the reason for the request.  If approved, the extension shall not    be   for 
more than 60 days.
  (6) A statement of current contracts and subcontracts shall be submitted as 
required by R 247.43.

  History:  1979 AC; 2002 AACS.


R 247.33    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.34    Audit, review, and verification of financial statements.
  Rule 34. (1) A bidder applying for  prequalification  to  bid    on    work 
for $1,000,000.00 or more, in  addition   to   completing    the    financial 
statement portions of the prequalification application, shall submit  a  copy 
of its most recent audited financial statement as of  the  close    of    the 
bidder's  fiscal year,  which  date  shall  be  the  same  fiscal  year  date
 stated  on  the prequalification application.  At  a  minimum,  the  audited 
financial  statement shall include all of the following that   reflect    the 
accounting  theory  and practice employed by the bidder:
  (a)  An independent certified public accountant's audit report.
  (b)  A balance sheet.
  (c)  An income statement.
  (d)  A statement of cash flows.
  (e)  Appropriate notes.
If the certified public accountant  cannot  express  an  opinion  as  to  the 
overall fairness of the financial statements, the  bidder's  prequalification 
for  work  may  be  limited  to  $1,000,000.00.   If  an   opinion   contains 
qualifications which are material in the  judgment  of  the  prequalification 
committee, the items may be disallowed for prequalification purposes.
  (2) Prequalification for  work   less   than   $1,000,000.00    does    not 
require submittal of a certified financial statement.  Instead, a bidder  may 
provide either a compilation report, or a review report  prepared    by    an 
independent certified public accountant.  With approval of the department,  a 
bidder  may provide a bank  account  balance  verification  prepared  by  the 
bidder's bank  or  banks,   accounts   receivable    balance    confirmations 
prepared  by  specified debtors, or a subsequent receipts verification letter 
prepared by a certified public accountant.   The  determination   of    which 
report,  or  combination  of reports, shall be provided will be  made  solely 
by the department  based  upon the circumstances surrounding each request.
  (3)  A  bidder  shall  immediately  notify   the    department    of    any 
significant change in the  information  provided  by  the  bidder  to  obtain 
prequalification.
  (4) The information included on the prequalification   application    shall 
be sworn to before a notary public by an  authorized  officer,   owner,    or 
partner of the bidder.
  (5) A newly formed organization requesting prequalification   shall    file 
its opening  balance  sheet  for  an  initial   prequalification   rating.
Thereafter, financial statements  shall  cover  the  same  period   as    its 
established  fiscal year.
  (6) A bidder who changes its fiscal year shall submit  an  explanation  for 
the change and the  department  shall  review  the  explanation  submitted.
The department may request additional information if considered  necessary.
The prequalification committee may deny or limit prequalification for any  of 
the following reasons:
  (a) If no explanation is submitted.
  (b) If the additional information submitted is inadequate.
  (c) If the change is not determined to be appropriate by the department.
  (7) The  department  may  request  clarification  and    verification    of 
any information submitted and, if necessary, examine  the  bidder's   records 
and accounts.
  (8) An independent certified public accountant under these   rules    shall 
not be a person otherwise employed by, or serving as an officer or   director 
of, the bidder.

  History:  1979 AC; 2002 AACS.


R 247.35    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.36    Statement of accounting method and basis.
  Rule 36. (1) The prequalification application shall require  a    statement 
of the accounting method used by the  bidder  in  keeping    its    financial 
records, including the basis (percentage of completion or completed  contract
 method) followed in accounting for its construction contracts.
  (2) A bidder accounting for its construction contracts  on  a  basis  other 
than the percentage of completion or the completed contract   method    shall 
obtain approval,  in  writing,  by  the  prequalification  committee,  before 
submission of the bidder's prequalification application.

  History:  1979 AC; 2002 AACS.


R 247.37    Supplemental statements.
  Rule 37.  (1) A bidder who maintains accounting   records   on    a    cash 
basis shall submit a record of assets and liabilities on an  accrual    basis 
on  the schedule provided in the prequalification application.
  (2) A bidder who maintains accounting records on an  accrual  basis   using 
the completed  contract   method   has   the   option   of    submitting    a 
supplemental statement on  the  schedule  provided  in  the  prequalification 
application  which adjusts the completed contract method to the percentage of 
completion  method for prequalification rating.  However, the  bidder   shall 
obtain  approval  of the prequalification committee  to  report   using    an 
accounting   method   other  than  the  method  used  in   maintaining    its 
accounting  records.   Once  having exercised the option,  the  bidder  shall 
not change  the  method   of   reporting  without  written  approval  by  the 
prequalification committee.

  History:  1979 AC; 2002 AACS.


R 247.38    Equipment, experience, and key personnel.
  Rule 38.  As part of the   prequalification   application,    the    bidder 
shall submit evidence of all of the following:
  (a)  The  availability  of  equipment  required  to   perform    work    in 
the classifications for which the bidder seeks approval.
  (b) Experience of  its  key  qualified   personnel   who    will    provide 
field supervision of the work in the classifications for  which  the   bidder 
seeks approval.
  (c) Experience of the company or principals of the company, or   both,   in 
the work classifications requested.

  History:  1979 AC; 2002 AACS.


R 247.39    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.40    Audits; investigations; comparisons.
  Rule 40.  (1)  The  director  or  director's  designee,  may   perform   or 
designate auditors to perform audits of the financial records or  investigate 
any  items regarding prequalification of a bidder.   The  bidder   has    the 
right  to  meet with the prequalification manager  to  explain  any  conflict 
arising from audits or investigations  before  a  final  determination.   The 
bidder may  be  given  a provisional numerical ratings pending completion  of 
the meetings and review.
  (2) The prequalification committee may cause comparative  reviews   to   be 
made at any time between the bidder's annual prequalification application and
 any reports filed by the bidder with other departments of the  state   based 
upon  the  bidder's  financial  records.   Bidders  shall  be   offered   the 
opportunity  to have  discussions  with    the    prequalification    manager 
concerning   any discrepancies  in    the    prequalification    application, 
financial   records, reports,  or  other  information   pertinent   to    the 
processing   of   the prequalification application.  The information obtained 
may be used to modify or revoke the bidders prequalification.

  History:  1979 AC; 2002 AACS.

                         PART 4. NUMERICAL RATINGS


R 247.41    Factors applied to assets.
  Rule 41.  The assets as determined from the  financial   statement    shall 
be used in computing the overall financial rating of a bidder by use  of  the 
sum of the following:
  (a) Working capital, either positive or negative, multiplied by 9.
  (b) Depreciation expense on construction and  transportation  equipment  in 
the amount of 1½ times this allowable amount of depreciation, as recorded  on 
the bidder's books of account and  also  shown  in  the  space  provided   in 
the prequalification questionnaire for the same fiscal year  as  covered   by 
the prequalification statement, multiplied by 9.
  (c) Net construction and transportation equipment values multiplied by  4.
This value is the bidder's equity  in  such  equipment  less  the  long  term 
portion of the obligation on this equipment.

  History:  1979 AC; 2002 AACS.


R 247.42    Ratings.
  Rule 42. (1)  The  overall  financial  rating  is  expressed  as  a  number 
truncated to the number of thousands for purposes of identifying a  numerical 
rating  in any given work classification.  For example, an overall  financial 
rating  of $1,000,000.00 is converted  to  1,000,  a  financial   rating   of 
$1,105,000.00  is converted to 1,105, and a financial rating of $10,000.00 is 
converted to 10.
Bidders may be given a full numerical rating, which is equal to the  bidder's 
overall financial rating, or a partial numerical rating, contingent upon  the 
results of an evaluation of the bidder being made  by  the  department  under 
these rules.

  History:  1979 AC; 2002 AACS.


R 247.43    Work allowed.
  Rule 43.  (1) A bidder desiring to bid on   department    projects    shall 
file with the department, on a department form,   a    statement    reporting 
work  on hand.  The form shall be  received  in  the   department    contract 
office  in accordance with the schedule provided by the department.   Bidders 
failing  to submit the  form  with  all  required   information,    and    as 
provided  in  these rules, are not eligible  to  bid  or  be  issued  bidding 
documents.
  (2) A bidder will not be permitted to  bid,  and  will  not    be    issued 
bidding documents for projects with a rating greater than its  net  financial 
rating.
  (3) To determine a bidder's net financial rating,  the    department    may 
make deductions from the dollar amount of the bidder's work on    hand,    to 
account for work that is scheduled to be  performed   in   future   years.
Based  upon current, approved or verified progress schedules, the  department 
may, at  the request of the bidder, deduct up to 50% of the dollar amount  of 
work  to  be performed in years subsequent to the year when the project to be
 bid  is  to commence.   The  department  is  not  required  to   make    the 
deductions  and  will exercise its judgment  in  the  review   of    progress 
schedules  to  assure  that bidders have adequate net financial rating to bid 
and to perform the work.

  History:  1979 AC; 2002 AACS.


R 247.44    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.45    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.46    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.47    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.48    Current asset accounts.
  Rule 48.   The  following  current  asset  accounts  will  be    used    by 
the prequalification committee in determining the net working  capital  of  a 
bidder:
  (a) Cash.
  (b) Readily marketable securities; that is, securities that  are   verified 
by the certified public accountant and that represent investments  of    cash 
that are available for  current  operations,   excluding    investments    in 
affiliated companies.
  (c) The following receivables:
  (i) Billed or  accrued  trade  accounts  receivable  less   allowance   for 
doubtful accounts.  Receivables due from joint venture affiliates  are   also 
excluded from receivables.
  (ii) Notes receivable, that is, notes due within 1  year,  excluding  notes 
due from officers, employees, affiliated companies, and any related parties.
  (iii) Interest and dividends receivable, excluding  interest  or  dividends 
due from affiliated companies, officers, employees, and any related parties.
  (d) Cost of uncompleted contracts in excess of related billings.
  (e) Inventories of construction materials and supplies on hand   at    cost 
or market value, whichever is less.
  (f) Other allowable current assets such as any of the following:
  (i) Bid deposits including bid deposits on joint bidding ventures.
  (ii) Prepayments such as insurance, interest, taxes.
  (iii) Cash surrender value of life insurance.
  (iv) Other assets realizable within 1 year and a description.

  History:  1979 AC; 2002 AACS.


R 247.49    Current liability accounts.
  Rule 49.  All of the  following  current  liability  accounts   that    are 
payable within 1 year will be used by the  prequalification   committee    in 
determining the net working capital of a bidder:
  (a) Notes payable to banks.
  (b) Notes or contracts payable on construction equipment,   except    notes 
due officers, employees, affiliated companies, and any related parties.
  (c) Accounts  payable  to  subcontractors  and  trade   accounts,    except 
accounts payable  to  officers,  employees,  affiliated  companies,  and  any 
related parties.
  (d) Accrued expenses as follows:
  (i) Include wages, payroll taxes, and fringe benefits.
  (ii)  Exclude  interest  payable  to   officers,   employees,    affiliated 
companies, and any related parties.
  (e) Taxes as follows:
  (i) Federal income tax   liability,   including   taxes    applicable    to 
income arising from conversion to the percentage of completion method.
  (ii) State of Michigan income  taxes,  including  taxes    applicable    to 
income arising from conversion to the percentage of completion method.
  (iii) All other taxes.
  (f) Pension and profit sharing contributions payable.
  (g) Billings on uncompleted contracts in excess of related costs.
  (h) Current portions of mortgages payable.
  (i) Other liabilities and a description.
  (j) Long-term unsecured liabilities as follows:
  (i) An unsecured long-term  liability   shall   be   accompanied    by    a 
signed statement from the lender and the bidder indicating that  a   decrease 
in  the  long-term  unsecured  borrowing   shall   be   reported    to    the 
prequalification committee immediately.  In addition, the   statement    from 
the  lender  shall disclose the date of the loan, the termination  date,    a 
statement  that  the loan is free of   conditions   and   whether    it    is 
interest  or  non-interest bearing.
  (ii) An  unsecured  long-term  liability  that  is  not   accompanied    by 
statement specified in paragraph (i) of this subdivison shall be considered a 
 current liability for prequalification rating purposes.   A  note  in  the
 certified financial  statements  detailing  the  obligations   related    to 
construction equipment may be accepted by the prequalification  committee  in 
place  of  the signed statement, if the note is found to  contain  sufficient 
detail.

  History:  1979 AC; 2002 AACS.


R 247.50    Equipment.
  Rule 50. (1) If a bidder owns a new  construction  unit,  used  unit,  or a 
rebuilt unit, the purchase price  will  be   allowed   in    computing    the 
bidder's equipment value and be credited as  a  fixed  asset.     For    each 
year  after purchase of the unit, the annual depreciation charge   will    be 
deducted  from the purchase price in computing book value.
  (2) At the written request of the bidder,  the  prequalification  committee 
may consider the use of an appraised valuation but only  when  the  appraisal
 is prepared  and  certified  by  an  appraisal  firm  acceptable   to    the 
department.
The appraisal shall be as of the close of the bidder's fiscal year  and  will 
be applicable for the prequalification rating period which  applies  for  the 
application with which it was submitted.  The appraised value may be used  as 
the basis for equipment value for a  second  year  only  if  a  statement  is 
submitted by the independent certified public accountant  who  completed  the 
audit or review and if the statement indicates that the  equipment  inventory 
items are the same as the items in the appraised inventory for  the  previous 
year or explains in detail any  changes  to  the  inventory.   A  bidder  may 
compute the current value of equipment for the  purpose  of  prequalification 
using the straight line method  of  depreciation  if  the  bidder  submits  a 
schedule of depreciation in detail and form as  required  by  the  department 
together with the prequalification application.
  (3)  The value of the construction  and  transportation    equipment    for 
the purpose of computing the overall financial rating will be the book  value
 of the equipment as shown under fixed assets less ½ of any long-term portion
 of notes or contracts payable on the equipment.   If   an    appraisal    is 
included with the prequalification application,  the  appraisal    will    be 
taken  into consideration in  the  calculation  of  the  equipment  value  by 
comparing the  net book value to the appraised  fair  market  value  and  the 
difference added to the net book value of the equipment.  The value  is  then 
multiplied in  accordance with R 247.41.

  History:  1979 AC; 2002 AACS.

                     PART 5. CLASSIFICATION OF BIDDERS


R 247.51    Work classifications.
  Rule 51.  The department shall identify work classifications for  which  it 
is anticipating the need for bidders.  The work  classifications   will    be 
listed in the prequalification application.  The  bidder    shall    identify 
the  work classification  or  classifications  for  which  it  is  requesting 
prequalification when submitting a prequalification application.

  History:  1979 AC; 2002 AACS.


R 247.52    Original and additional work classifications.
  Rule 52.  A bidder will be classified for types of work on the   basis   of 
its  experience   and   resources   at   the    time    of     filing     the 
prequalification application.  When additional experience or  resources  have 
been obtained, the bidder may submit  information  for    consideration    by 
the  prequalification committee  to  add  work  classifications  or  increase 
existing ones.

  History:  1979 AC; 2002 AACS.


R 247.53    Duplicate work classifications.
  Rule  53.   (1)  A  bidder  shall  indicate,   on   the    prequalification 
application, whether the bidder is a partnership, a sole proprietorship, or a 
corporation.
If the bidder is a corporation, the application shall include the names   and 
addresses of all officers and directors.  The application shall also  include 
the names and addresses of all persons owning more than 10% of any  class  of 
stock  in  the  bidder  and  in  any  other  prequalified  or   prequalifying 
corporation and the nature of the interest  shall  be  described.   A  bidder 
shall further disclose,  on  the  prequalification  application,  the  names, 
addresses, and assumed names of any owner, partner or holder of more than 10% 
of any class of stock that is acting under an assumed name.  When a person is 
a director, partner, or officer, or has a financial interest  in  2  or  more 
bidders, which in the opinion of the prequalification committee, would have a 
detrimental effect on the department, the work classifications of the type of 
work for which the bidders may be qualified shall not be duplicated.
  (2) When a bidder or a director, officer, or  partner  of  a  bidder  has a 
financial interest in any other bidder who is prequalified or is  seeking  to 
become prequalified, the name of the other bidder shall be  provided  to  the 
department and the nature of the interest shall be described.

  History:  1979 AC; 2002 AACS.

                              PART 6. BIDDING


R 247.61    Bidding procedure.
  Rule 61.  (1) To bid on any  project  advertised  by  the  department,  the 
bidder  shall   be   prequalified   in    the     required     prime     work 
classification   or  classifications  with  a  numerical  rating  and  a  net 
financial rating  equal  to or greater  than  the  rating  specified  in  the 
advertisement  for  the  project.
Ratings in the work classifications are not cumulative.
  (2) The  department  will  identify  the  required   work    classification 
or classifications when a project for bidding is advertised.  If the work  is 
not among the listed work classifications, the  department  may  make  a  new
 or project specific evaluation of  bidder  qualifications    to    determine 
suitable bidders for the work, or may waive the prequalification requirement.
  (3) A prequalified bidder who has a  sufficient  net    financial    rating 
and numerical rating and has met  the  requirements  of  R  247.43  shall  be 
authorized to receive bidding documents from the department until  the  close 
of  business on the day preceding the opening of bids.
  (4) If a bidder is low on 2 or more projects, the total  of  which  exceeds 
its net financial rating, the department shall select the project or projects 
for award to the bidder which will give  the  best  financial  advantage   to 
the department.
  (5) The department may decline to award  a  contract  to   a   prequalified 
bidder until the time that  a  contract  is  awarded  if  either    of    the 
following provisions applies:
  (a)  Proceedings   are   underway    to    reduce     or     revoke     the 
bidder's prequalification.
  (b) The department determines that  it   would   be   contrary    to    the 
public interest to award the contract to that  bidder  based  on  information 
then known to the department. The contract may be awarded to the next  lowest 
responsive qualified bidder.

  History:  1979 AC; 2002 AACS.


R 247.62    Joint bidding.
  Rule 62.  (1) Two, but not more than  3,  bidders  may  bid  jointly  on  a 
project without declaring their intention to do so before the   opening    of 
bids,  if each bidder has a net financial rating   and    numerical    rating 
equal  to  or greater than the total required for the project and has met the
 requirements of R 247.43.   Each  bidder   shall   have    sufficient    net 
prequalification  to perform the work that it  proposes  to  do.   All  other 
types of  joint  ventures which do not meet the  requirements  stated  above,
 must  be  requested  for approval not  later  than  5:00  p.m.  on  the  day 
preceding the letting  date  for which this request is being made.
  (2)  The joint venture request form shall identify the    company    having 
the responsibility for overall administration of the project.
  (3)   All  parties  in  a  joint  venture  will  be  held  accountable  for 
appropriate execution of the contract.
  (4)  Each party in a joint venture may  be  subject  to  changes   in   its 
overall financial rating or numerical ratings, or both, in accordance with  R 
247.22.

  History:  1979 AC; 2002 AACS.

                             PART 7. HEARINGS


R 247.71    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.72    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.73    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.74    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.75    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.76    Rescinded.

  History:  1979 AC; 2002 AACS.


R 247.77    Rescinded.

  History:  1979 AC; 2002 AACS.


               PART 8. APPEAL OF PREQUALIFICATION DECISIONS


R 247.81    Informal meeting with prequalification manager.
  Rule 81.  (1) A bidder may file a written request, within 14   days   after 
the  date  of  a  decision  to  deny,  decrease,   suspend,     or     revoke 
prequalification, for a meeting with the prequalification manager to  discuss 
the  decision  and to seek its modification.
  (2) If the bidder fails to file a written request  for  a  meeting   in   a 
timely manner, then the decision of the prequalification manager  is    final 
and  not subject to further contest or appeal.
  (3)  If  a  meeting  is  requested  in  a  timely    manner,    then    the 
prequalification manager shall meet with the bidder to seek a  resolution  of 
the differences.
The  prequalification  manager  may  have  other  department   employees   or 
representatives attend and participate in the meeting.  The  prequalification 
manager may seek agreement on an improvement plan.
  (4)  After  the   meeting   and    any    further     review     by     the 
prequalification manager, in consultation  with  department   employees    or 
representatives,  the prequalification manager shall make a decision  on  the 
appeal  and  give  the  bidder  written  notice  of  the    decision.     The 
prequalification  manager  may impose an improvement  plan  as  part  of  the 
decision.

  History: 2002 AACS.


R 247.82    Informal review of the prequalification decision; review panel.
  Rule 82.  (1) A bidder may file a written request, within 14  days  after a 
final decision under R 247.81, for  a  meeting  with   the   prequalification 
review panel to discuss the decision of the prequalification manager  and  to 
seek its modification by the panel.
  (2) If the bidder fails to file a written request  for  a  meeting   in   a 
timely manner, the decision of the prequalification manager is final and  not 
subject to further contest or appeal.
  (3) If a meeting  is  requested  in   a   timely   manner,    the    review 
panel, comprised of 3 staff appointed by the  department   director,    shall 
meet  with the bidder and conduct an  informal  inquiry  and  review  of  the 
prequalification decision  and  its  basis.   The  review  panel   may   seek 
agreement  on  an improvement plan.
  (4) If an agreement is not reached,  the  panel  may  modify,  confirm,  or 
impose an improvement plan as part  of  its  decision.  The    panel    shall 
make  its decision  after  the  meeting  and   any   further    review    and 
consultation  with department employees and representatives.
  (5) The panel shall give the bidder written notice of its  decision  within 
30 days of the final meeting with a bidder.

  History: 2002 AACS.


R 247.83    Appeal to prequalification appeal board.
  Rule  83.  (1)  A  bidder  may  file  a  written    appeal     with     the 
prequalification appeal board within 14 days after a decision under         R
 247.82,  except that  an  appeal  of  a  provisional  rating  may   not   be 
taken   to   the prequalification appeal board.
  (2) A contested case hearing  shall  then  be  scheduled   and    conducted 
in  accordance  with  1969  P.A.  306,   MCL   24.201    et     seq.      The 
prequalification appeal board shall serve as the presiding officer.
  (3) The department may appoint a  hearing  officer  or  administrative  law 
judge to assist the  prequalification   appeal   board   to    conduct    the 
hearing,  to consult with the board during the course of the proceedings, and 
to write the decision for approval and issuance by  the  board.   The   board 
retains  the authority to decide any disputed issue.
  (4) The decision of the prequalification  appeal  board   constitutes   the 
final decision of the department.  An appeal may be filed in a timely  manner
 from an adverse decision under section 103 of 1969 P.A. 306, MCL 24.303.

  History: 2002 AACS.

 

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