OAR 137-049-0440
Rejection of Offers


(1)

Rejection of an Offer.

(a)

A Contracting Agency may reject any Offer upon finding that to accept the Offer may impair the integrity of the Procurement process or that rejecting the Offer is in the public interest.

(b)

The Contracting Agency shall reject an Offer upon the Contracting Agency’s finding that the Offer:

(A)

Is contingent on the Contracting Agency’s acceptance of terms and conditions (including Specifications) that differ from the Solicitation Document;

(B)

Takes exception to terms and conditions (including Specifications);

(C)

Attempts to prevent public disclosure of matters in contravention of the terms and conditions of Solicitation Document or in contravention of applicable law;

(D)

Offers Work that fails to meet the Specifications of the Solicitation Document;

(E)

Is late;

(F)

Is not in substantial compliance with the Solicitation Documents;

(G)

Is not in substantial compliance with all prescribed public solicitation procedures.

(c)

The Contracting Agency shall reject an Offer upon the Contracting Agency’s finding that the Offeror:

(A)

Has not been prequalified under ORS 279C.430 (Prequalification of bidders) and the Contracting Agency required mandatory prequalification;

(B)

Has been Disqualified;

(C)

Has been declared ineligible under ORS 279C.860 (Ineligibility for public works contracts for failure to pay or post notice of prevailing rates of wage) by the Commissioner of Bureau of Labor and Industries and the Contract is for a Public Work;

(D)

Is listed as not qualified by the Construction Contractors Board, if the Contract is for a Public Improvement;

(E)

Has not met the requirements of ORS 279A.105 (Subcontracting to emerging small businesses or businesses that service-disabled veterans own) if required by the Solicitation Document;

(F)

Has not submitted properly executed Bid or Proposal security as required by the Solicitation Document;

(G)

Has failed to provide the certification required under section 3 of this rule;

(H)

Is not Responsible. See OAR 137-049-0390 (Offer Evaluation and Award; Determination of Responsibility)(2) regarding Contracting Agency determination that the Offeror has met statutory standards of responsibility.

(2)

Form of Business. For purposes of this rule, the Contracting Agency may investigate any Person submitting an Offer. The investigation may include that Person’s officers, Directors, owners, affiliates, or any other Person acquiring ownership of the Person to determine application of this rule or to apply the Disqualification provisions of ORS 279C.440 (Disqualification from consideration for award of contracts) to 279C.450 (Appeal procedure for decision to deny, revoke or revise prequalification) and OAR 137-049-0370 (Disqualification of Persons).

(3)

Certification of Non-Discrimination. The Offeror shall certify and deliver to the Contracting Agency Written certification, as part of the Offer, that the Offeror has not discriminated and will not discriminate against any disadvantaged business enterprise, minority-owned business, women-owned business, emerging small business, or business that a service-disabled veteran owns, in obtaining any required subcontracts. Failure to do so shall be grounds for disqualification.

(4)

Contract and Subcontract Conditions. If a Contracting Agency awards a Contract to an Offeror that has been determined to be responsible under ORS 200.005 (Definitions)(8) and ORS 200.045 (Required participants)(3), or awards a Contract under ORS 279A.100 (Affirmative action):

(a)

The Contracting Agency must provide, as a material condition of the Contract:

(A)

That the Contractor must maintain its certification under ORS 200.055 (Certification as disadvantaged business enterprise, minority-owned business, woman-owned business, business that service-disabled veteran owns or emerging small business) throughout the term of the Contract and any extensions (if the Contracting Agency used the certification as a factor in or as a basis for the award of the Contract);

(B)

That the Contractor must promptly pay each subcontractor that is certified under ORS 200.055 (Certification as disadvantaged business enterprise, minority-owned business, woman-owned business, business that service-disabled veteran owns or emerging small business) in accordance with ORS 279B.220 (Conditions concerning payment, contributions, liens, withholding), or 279C.570 (Prompt payment policy) and ORS 279C.580 (Contractor’s relations with subcontractors), whichever apply to the Contract;

(C)

That the Contractor must include, in any subcontract the Contractor establishes in connection with the Contract, a provision that requires the subcontractor to maintain the subcontractor’s certification under ORS 200.055 (Certification as disadvantaged business enterprise, minority-owned business, woman-owned business, business that service-disabled veteran owns or emerging small business) throughout the term of the subcontract and any extensions (if the Contractor used the certification as a factor in or as a basis for the award of the subcontract);

(D)

That the Contracting Agency may require the Contractor to terminate a subcontract with a subcontractor that fails to maintain its certification under ORS 200.055 (Certification as disadvantaged business enterprise, minority-owned business, woman-owned business, business that service-disabled veteran owns or emerging small business) throughout the term of the subcontract and any extensions.

(b)

In the administration of Contracts that are subject to section (4) of this rule, the Contracting Agency must verify the Contractor’s and any subcontractor’s compliance with subsection (4)(a) of this rule.

(c)

Subparagraph (4)(a)(A) of this section does not apply to an emerging small business that ceases to qualify as a tier one firm or a tier two firm (as ORS 200.005 (Definitions) defines those terms) due to the growth in the business’s number of full-time equivalent employees or in average annual gross receipts during the term of the Contract. This section (4) does not apply to an emerging small business for which a certification under ORS 200.055 (Certification as disadvantaged business enterprise, minority-owned business, woman-owned business, business that service-disabled veteran owns or emerging small business) expires during the term of the Contract or any extensions.

(5)

Rejection of all Offers. A Contracting Agency may reject all Offers for good cause upon the Contracting Agency’s Written finding it is in the public interest to do so. The Contracting Agency shall notify all Offerors of the rejection of all Offers, along with the good cause justification and finding.

(6)

Criteria for Rejection of All Offers. The Contracting Agency may reject all Offers upon a Written finding that:

(a)

The content of or an error in the Solicitation Document, or the solicitation process unnecessarily restricted competition for the Contract;

(b)

The price, quality or performance presented by the Offerors is too costly or of insufficient quality to justify acceptance of the Offer;

(c)

Misconduct, error, or ambiguous or misleading provisions in the Solicitation Document threaten the fairness and integrity of the competitive process;

(d)

Causes other than legitimate market forces threaten the integrity of the competitive Procurement process. These causes include, but are not limited to, those that tend to limit competition such as restrictions on competition, collusion, corruption, unlawful anti-competitive conduct and inadvertent or intentional errors in the Solicitation Document;

(e)

The Contracting Agency cancels the solicitation in accordance with OAR 137-049-0270 (Cancellation of Solicitation Document); or

(f)

Any other circumstance indicating that Awarding the Contract would not be in the public interest.

Source: Rule 137-049-0440 — Rejection of Offers, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=137-049-0440.

137‑049‑0100
Application
137‑049‑0110
Policies
137‑049‑0120
Definitions
137‑049‑0130
Competitive Bidding Requirement
137‑049‑0140
Contracts for Construction Other Than Public Improvements
137‑049‑0150
Emergency Contracts
137‑049‑0160
Intermediate Procurements
137‑049‑0200
Solicitation Documents
137‑049‑0210
Notice and Advertising Requirements
137‑049‑0220
Prequalification of Offerors
137‑049‑0230
Eligibility to Bid or Propose
137‑049‑0240
Pre-Offer Conferences
137‑049‑0250
Addenda to Solicitation Documents
137‑049‑0260
Request for Clarification or Change
137‑049‑0270
Cancellation of Solicitation Document
137‑049‑0280
Offer Submissions
137‑049‑0290
Bid or Proposal Security
137‑049‑0300
Facsimile Bids and Proposals
137‑049‑0310
Electronic Procurement
137‑049‑0320
Pre-Closing Modification or Withdrawal of Offers
137‑049‑0330
Receipt, Opening and Recording of Offers
137‑049‑0340
Late Bids, Late Withdrawals and Late Modifications
137‑049‑0350
Mistakes
137‑049‑0360
First-Tier Subcontractors
137‑049‑0370
Disqualification of Persons
137‑049‑0380
Bid or Proposal Evaluation Criteria
137‑049‑0390
Offer Evaluation and Award
137‑049‑0395
Notice of Intent to Award
137‑049‑0400
Documentation of Award
137‑049‑0410
Time for Contracting Agency Acceptance
137‑049‑0420
Negotiation With Bidders Prohibited
137‑049‑0430
Negotiation When Bids Exceed Cost Estimate
137‑049‑0440
Rejection of Offers
137‑049‑0450
Protest of Contractor Selection, Contract Award
137‑049‑0460
Performance and Payment Security
137‑049‑0470
Substitute Contractor
137‑049‑0490
Foreign Contractor
137‑049‑0600
Purpose
137‑049‑0610
Definitions for Alternative Contracting Methods
137‑049‑0620
Use of Alternative Contracting Methods
137‑049‑0630
Findings, Notice and Hearing
137‑049‑0640
Competitive Proposals
137‑049‑0645
Requests for Qualifications (RFQ)
137‑049‑0650
Requests for Proposals (“RFP”)
137‑049‑0660
RFP Pricing Mechanisms
137‑049‑0670
Design-Build Contracts
137‑049‑0680
Energy Savings Performance Contracts (ESPC)
137‑049‑0690
Construction Manager/General Contractor Services (“CM/GC Services”)
137‑049‑0800
Required Contract Clauses
137‑049‑0810
Waiver of Delay Damages Against Public Policy
137‑049‑0815
BOLI Public Works Bond
137‑049‑0820
Retainage
137‑049‑0830
Contractor Progress Payments
137‑049‑0840
Interest
137‑049‑0850
Final Inspection
137‑049‑0860
Public Works Contracts
137‑049‑0870
Specifications
137‑049‑0880
Records Maintenance
137‑049‑0890
Contracting Agency Payment for Unpaid Labor or Supplies
137‑049‑0900
Contract Suspension
137‑049‑0910
Changes to the Work and Contract Amendments
Last Updated

Jun. 24, 2021

Rule 137-049-0440’s source at or​.us