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H0473aaS......................................by TRANSPORTATION AND DEFENSE
STATE HIGHWAYS - BIDS - Amends existing law relating to bids on the state
highway system to provide an administrative remedy for a losing bidder to
contest a contract offer; to provide for appointment of a hearing officer
by the chief engineer upon receipt of an application; to provide a
contested case hearing; to provide for entering a final order; and to
authorize the chief engineer to award the contract to the bidder determined
in the final order to be the lowest responsible bidder at a time and in a
manner which shall be in the best interest of the state.
01/15 House intro - 1st rdg - to printing
01/16 Rpt prt - to Transp
01/29 Rpt out - rec d/p - to 2nd rdg
01/30 2nd rdg - to 3rd rdg
02/02 3rd rdg - PASSED - 69-0-1
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts,
Robison, Rydalch, Sali, Sayler, Shepherd, Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Schaefer
Floor Sponsor - Cuddy
Title apvd - to Senate
02/03 Senate intro - 1st rdg - to Transp
03/03 Rpt out - to 14th Ord
03/08 Rpt out amen - to 1st rdg as amen
03/09 1st rdg - to 2nd rdg as amen
03/10 2nd rdg - to 3rd rdg as amen
03/12 3rd rdg as amen - PASSED - 34-0-1
AYES -- Andreason(Andreason), Bailey, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
Marley, McKenzie, McWilliams, Noble, Noh, Pearce, Richardson,
Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Brandt
Floor Sponsor - Little
Title apvd - to House
03/15 House concurred in Senate amens - to engros
03/16 Rpt engros - 1st rdg - to 2nd rdg as amen
03/17 2nd rdg - to 3rd rdg as amen
Rls susp - PASSED - 66-0-4
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy,
Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague,
Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen, Pasley-Stuart,
Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali,
Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Clark, Field(23), Wood
Floor Sponsor - Cuddy
Title apvd - to enrol
03/18 Rpt enrol - Sp signed
03/19 Pres signed - To Governor
03/23 Governor signed
Session Law Chapter 233
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 473
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO BIDS ON THE STATE HIGHWAY SYSTEM; AMENDING SECTION 40-902, IDAHO
3 CODE, TO PROVIDE AN ADMINISTRATIVE REMEDY FOR A LOSING BIDDER TO CONTEST A
4 CONTRACT OFFER, TO PROVIDE FOR APPOINTMENT OF A HEARING OFFICER BY THE
5 CHIEF ENGINEER UPON RECEIPT OF AN APPLICATION, TO PROVIDE A CONTESTED CASE
6 HEARING, TO PROVIDE FOR ENTERING A FINAL ORDER, TO AUTHORIZE THE CHIEF
7 ENGINEER TO AWARD THE CONTRACT TO THE BIDDER DETERMINED IN THE FINAL ORDER
8 TO BE THE LOWEST AND BEST BIDDER AT A TIME AND IN A MANNER WHICH SHALL BE
9 IN THE BEST INTEREST OF THE STATE AND TO MAKE TECHNICAL CORRECTIONS.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 40-902, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 40-902. BIDS -- STATE HIGHWAY SYSTEM. (1) Whenever work on the state
14 highway system is let by contract, sealed bids must be called for by public
15 advertisement in at least two (2) consecutive weekly issues in a weekly news-
16 paper or five (5) issues in a daily newspaper, having a general circulation in
17 the county or one (1) of the counties, where the work is to be done.
18 (2) Each bid must be accompanied by a cashier's check or a certified
19 check in favor of the department on some bank in the state of Idaho, or by a
20 bidder's bond, for the sum of five per cent percent (5%) of the amount of the
21 bid, to be forfeited if the bidder, upon acceptance of his bid, fails or
22 refuses to enter into a contract within fifteen (15) days after the presenta-
23 tion of the contract by the department to him for execution and to furnish the
24 required bond. Checks and bonds of unsuccessful bidders shall be returned
25 immediately after the contract is awarded.
26 (3) Bids shall be opened publically publicly at the time and place speci-
27 fied in the advertisement and the contract let to the lowest and best bidder,
28 but the department has the right to reject any and all bids, or to let the
29 contract for a part or all of the work.
30 (4) If no satisfactory bid is received, new bids may be called for, or
31 the work may be performed by day labor, or as may be determined by the depart-
32 ment.
33 (5) A bidder who did not submit the lowest and best bid as determined by
34 the department may within five (5) calendar days of bid opening file a written
35 application to challenge the department's determination of the lowest and best
36 bidder and apply to the department's chief engineer for the appointment of a
37 hearing officer to hold a contested case hearing. The application shall set
38 forth in specific terms the reasons why the department's decision is thought
39 to be erroneous. Upon receipt of an application, the chief engineer shall
40 appoint a hearing officer with the authority to conduct a contested case hear-
41 ing in accordance with the provisions of chapter 52, title 67, Idaho Code.
42 Upon receipt from the hearing officer of findings of fact, conclusions of law
43 and a recommended order, the chief engineer shall review the same and enter a
2
1 final order sustaining or reversing the decision of the department on the
2 selection of the lowest and best bidder. Following entry of the final order,
3 the chief engineer shall have the authority to award the contract to the bid-
4 der determined in the final order to be the lowest and best bidder at a time
5 and in a manner which shall be in the best interest of the state.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by Ingram
Seconded by Bailey
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 473
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 27, delete "and best" and insert:
3 "and best responsible"; in line 33, delete "and best" and insert:
4 "responsible"; in line 35, delete "and best" and insert: "responsible".
5 On page 2, in line 2, delete "and best" and insert: "responsible"; and in
6 line 4, delete "and best" and insert: "responsible".
7 CORRECTION TO TITLE
8 On page 1, in line 8, delete "AND BEST" and insert: "RESPONSIBLE".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 473, As Amended in the Senate
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO BIDS ON THE STATE HIGHWAY SYSTEM; AMENDING SECTION 40-902, IDAHO
3 CODE, TO PROVIDE AN ADMINISTRATIVE REMEDY FOR A LOSING BIDDER TO CONTEST A
4 CONTRACT OFFER, TO PROVIDE FOR APPOINTMENT OF A HEARING OFFICER BY THE
5 CHIEF ENGINEER UPON RECEIPT OF AN APPLICATION, TO PROVIDE A CONTESTED CASE
6 HEARING, TO PROVIDE FOR ENTERING A FINAL ORDER, TO AUTHORIZE THE CHIEF
7 ENGINEER TO AWARD THE CONTRACT TO THE BIDDER DETERMINED IN THE FINAL ORDER
8 TO BE THE LOWEST RESPONSIBLE BIDDER AT A TIME AND IN A MANNER WHICH SHALL
9 BE IN THE BEST INTEREST OF THE STATE AND TO MAKE TECHNICAL CORRECTIONS.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 40-902, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 40-902. BIDS -- STATE HIGHWAY SYSTEM. (1) Whenever work on the state
14 highway system is let by contract, sealed bids must be called for by public
15 advertisement in at least two (2) consecutive weekly issues in a weekly news-
16 paper or five (5) issues in a daily newspaper, having a general circulation in
17 the county or one (1) of the counties, where the work is to be done.
18 (2) Each bid must be accompanied by a cashier's check or a certified
19 check in favor of the department on some bank in the state of Idaho, or by a
20 bidder's bond, for the sum of five per cent percent (5%) of the amount of the
21 bid, to be forfeited if the bidder, upon acceptance of his bid, fails or
22 refuses to enter into a contract within fifteen (15) days after the presenta-
23 tion of the contract by the department to him for execution and to furnish the
24 required bond. Checks and bonds of unsuccessful bidders shall be returned
25 immediately after the contract is awarded.
26 (3) Bids shall be opened publically publicly at the time and place speci-
27 fied in the advertisement and the contract let to the lowest and best respon-
28 sible bidder, but the department has the right to reject any and all bids, or
29 to let the contract for a part or all of the work.
30 (4) If no satisfactory bid is received, new bids may be called for, or
31 the work may be performed by day labor, or as may be determined by the depart-
32 ment.
33 (5) A bidder who did not submit the lowest responsible bid as determined
34 by the department may within five (5) calendar days of bid opening file a
35 written application to challenge the department's determination of the lowest
36 responsible bidder and apply to the department's chief engineer for the
37 appointment of a hearing officer to hold a contested case hearing. The appli-
38 cation shall set forth in specific terms the reasons why the department's
39 decision is thought to be erroneous. Upon receipt of an application, the chief
40 engineer shall appoint a hearing officer with the authority to conduct a con-
41 tested case hearing in accordance with the provisions of chapter 52, title 67,
42 Idaho Code. Upon receipt from the hearing officer of findings of fact, conclu-
43 sions of law and a recommended order, the chief engineer shall review the same
2
1 and enter a final order sustaining or reversing the decision of the department
2 on the selection of the lowest responsible bidder. Following entry of the
3 final order, the chief engineer shall have the authority to award the contract
4 to the bidder determined in the final order to be the lowest responsible bid-
5 der at a time and in a manner which shall be in the best interest of the
6 state.
STATEMENT OF PURPOSE
RS 13490C1
The legislation will amend Section 40-902, Idaho Code, to
provide an administrative remedy when a bidder on a state
highway contract challenges the Idaho Transportation Department's
determination of the lowest and best bid. Many state highway
projects are time sensitive and it is in the best interest of
both the contractors and the Department to obtain a prompt,
impartial decision when there is a dispute over which bidder
submitted the lowest and best bid.
At present, a bidder challenging a Department determination of
the lowest and best bid must file an action in District Court.
At times, the Court is not able to hear and decide the case in a
timely manner. This proposed legislation will allow the Department
to use the Administrative Procedures Act to resolve a bid protest
through the use of hearing officers. The Division of Purchasing of
the Department of Administration has similar authority under Section
67-5733(c), Idaho Code, with regard to bid disputes involving the
acquisition of personal services and property.
FISCAL IMPACT
There will be no impact to the general fund. The Department's highway
construction funds may be impacted up to $7,500.00 per year to pay the
cost of hearing officers. There may be some savings to the state highway
account in that highway projects will not be delayed due to a dispute
over the lowest and best bid.
CONTACT
Name: Steve Bywater, Deputy Attorney General
Agency: Idaho Transportation Department
Phone: 334-8811
Statement of Purpose/Fiscal Impact H 473