ORS 279C.375
Award and execution of contract

  • determination of responsibility of bidder
  • bonds
  • impermissible exclusions

(1)

After a contracting agency has opened bids and determined that the contracting agency will award a public improvement contract, the contracting agency shall award the contract to the lowest responsible bidder.

(2)

At least seven days before awarding a public improvement contract, unless the contracting agency determines that seven days is impractical under rules adopted under ORS 279A.065 (Model rules generally), the contracting agency shall issue to each bidder or post, electronically or otherwise, a notice of the contracting agency’s intent to award a contract. This subsection does not apply to a contract to which competitive bidding does not apply under ORS 279C.335 (Competitive bidding requirement) (1)(c) or (d). The notice and the manner in which the notice is posted or issued must conform to rules adopted under ORS 279A.065 (Model rules generally).

(3)

In determining the lowest responsible bidder, a contracting agency shall do all of the following:

(a)

Check the list created by the Construction Contractors Board under ORS 701.227 (Disqualification from eligibility for certain public contracts) for bidders who are not qualified to hold a public improvement contract.

(b)

Determine whether the bidder is responsible. A responsible bidder must demonstrate to the contracting agency that the bidder:

(A)

Has available the appropriate financial, material, equipment, facility and personnel resources and expertise, or has the ability to obtain the resources and expertise, necessary to meet all contractual responsibilities.

(B)

Holds current licenses that businesses or service professionals operating in this state must hold in order to undertake or perform the work specified in the contract.

(C)

Is covered by liability insurance and other insurance in amounts the contracting agency requires in the solicitation documents.

(D)

Qualifies as a carrier-insured employer or a self-insured employer under ORS 656.407 (Qualifications of insured employers) or has elected coverage under ORS 656.128 (Sole proprietors, limited liability company members, partners, independent contractors may elect coverage by insurer).

(E)

Has made the disclosure required under ORS 279C.370 (First-tier subcontractor disclosure).

(F)

Completed previous contracts of a similar nature with a satisfactory record of performance. For purposes of this subparagraph, a satisfactory record of performance means that to the extent that the costs associated with and time available to perform a previous contract remained within the bidder’s control, the bidder stayed within the time and budget allotted for the procurement and otherwise performed the contract in a satisfactory manner. The contracting agency shall document the bidder’s record of performance if the contracting agency finds under this subparagraph that the bidder is not responsible.

(G)

Has a satisfactory record of integrity. The contracting agency in evaluating the bidder’s record of integrity may consider, among other things, whether the bidder has previous criminal convictions for offenses related to obtaining or attempting to obtain a contract or subcontract or in connection with the bidder’s performance of a contract or subcontract. The contracting agency shall document the bidder’s record of integrity if the contracting agency finds under this subparagraph that the bidder is not responsible.

(H)

Is legally qualified to contract with the contracting agency.

(I)

Possesses an unexpired certificate that the Oregon Department of Administrative Services issued under ORS 279A.167 (Certification program for training in pay equity provisions of state law), if the bidder employs 50 or more full-time workers and submitted a bid for a procurement with an estimated contract price that exceeds $500,000 in response to an advertisement or solicitation from a state contracting agency.

(J)

Has agreed in the bid or proposal to be bound by the terms and conditions of a community benefit contract, if the public improvement contract is a community benefit contract.

(K)

Supplied all necessary information in connection with the inquiry concerning responsibility. If a bidder fails to promptly supply information concerning responsibility that the contracting agency requests, the contracting agency shall determine the bidder’s responsibility based on available information, or may find that the bidder is not responsible.

(c)

Document the contracting agency’s compliance with the requirements of paragraphs (a) and (b) of this subsection in substantially the following form:

Project Name: ____________
Bid Number: ____________
Business Entity Name: ____________
CCB License Number: ____________
Form Submitted By (Contracting Agency):
___________________________
Form Submitted By (Contracting Agency Representative’s Name): ____________
Title: ____________
Date: ____________
(The contracting agency must submit this form with attachments, if any, to the
Construction Contractors Board within 30 days after the date of contract award.)
The contracting agency has (check all of the following):
[ ] Checked the list created by the
Construction Contractors Board
under ORS 701.227 (Disqualification from eligibility for certain public contracts) for bidders who
are not qualified to hold a public
improvement contract.
[ ] Determined whether the bidder has
met the standards of responsibility.
In so doing, the contracting agency
has found that the bidder
demonstrated that the bidder:
[ ] Has available the appropriate
financial, material, equipment,
facility and personnel resources
and expertise, or the ability to
obtain the resources and
expertise, necessary to meet
all contractual responsibilities.
[ ] Holds current licenses that
businesses or service professionals
operating in this state must hold
in order to undertake or perform
the work specified in the contract.
[ ] Is covered by liability insurance
and other insurance in amounts
required in the solicitation
documents.
[ ] Qualifies as a carrier-insured
employer or a self-insured
employer under ORS 656.407 (Qualifications of insured employers) or has
elected coverage under ORS 656.128 (Sole proprietors, limited liability company members, partners, independent contractors may elect coverage by insurer).
[ ] Has disclosed the bidder’s first-
tier subcontractors in accordance
with ORS 279C.370 (First-tier subcontractor disclosure).
[ ] Has a satisfactory record of
performance.
[ ] Has a satisfactory record of
integrity.
[ ] Is legally qualified to contract
with the contracting agency.
[ ] Possesses a certificate that
the Oregon Department of
Administrative Services issued under
ORS 279A.167 (Certification program for training in pay equity provisions of state law).
[ ] Agrees to be bound by the terms
and conditions of a community
benefit contract if the public
contract is a community
benefit contract.
[ ] Has supplied all necessary
information in connection with
the inquiry concerning
responsibility.
[ ] Determined the bidder to be
(check one of the following):
[ ] Responsible under ORS 279C.375 (Award and execution of contract)

(3)

Intentionally left blank —Ed.

(a)

and (b).
[ ] Not responsible under
ORS 279C.375 (Award and execution of contract) (3)(a) and (b).
(Attach documentation if the contracting agency finds the bidder not to be responsible.)

(d)

Submit the form described in paragraph (c) of this subsection, with any attachments, to the Construction Contractors Board within 30 days after the date the contracting agency awards the contract.

(4)

The successful bidder shall:

(a)

Promptly execute a formal contract; and

(b)

Execute and deliver to the contracting agency a performance bond and a payment bond when required under ORS 279C.380 (Performance bond).

(5)

Based on competitive bids, a contracting agency may award a public improvement contract or may award multiple public improvement contracts when specified in the invitation to bid.

(6)

A contracting agency may not exclude a commercial contractor from competing for a public contract on the basis that the license issued by the Construction Contractors Board is endorsed as a level 1 or level 2 license. As used in this section, “commercial contractor” has the meaning given that term in ORS 701.005 (Definitions). [2003 c.794 §117; 2005 c.103 §§17,18; 2005 c.376 §1; 2007 c.764 §§26,27; 2007 c.836 §§42,43; 2009 c.880 §§9,9a; 2015 c.454 §5; 2021 c.488 §3]

Source: Section 279C.375 — Award and execution of contract; determination of responsibility of bidder; bonds; impermissible exclusions, https://www.­oregonlegislature.­gov/bills_laws/ors/ors279C.­html.

Notes of Decisions

Under former similar statute (ORS 279.029)

Lowest-bidder provision does not apply to award of concession contract by public agency. Double Eagle Golf, Inc. v. City of Portland, 322 Or 604, 910 P2d 1104 (1996)

Attorney General Opinions

Under former similar statute (ORS 279.029)

Amendment or cancellation of public contracts, (1974) Vol 36, p 1127

279C.005
Definitions
279C.010
Applicability
279C.100
Definitions for ORS 279C.100 to 279C.125
279C.105
Contracts for architectural, engineering, photogrammetric mapping, transportation planning or land surveying and related services
279C.107
Public disclosure of contents of proposals for architectural, engineering, photogrammetric mapping, transportation planning or land surveying services
279C.110
Selection procedures for consultants to provide services
279C.115
Direct contracts for services of consultants
279C.120
Selection procedure for related services
279C.125
Architectural, engineering, photogrammetric mapping, transportation planning and land surveying services selection process for local public improvements procured through state agency
279C.300
Policy on competition
279C.305
Least-cost policy for public improvements
279C.306
Administrative enforcement of least-cost policy for public improvements
279C.307
Limitations in procurement of personal services
279C.308
Community benefit contract
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
279C.330
“Findings” defined
279C.332
Definitions for ORS 279A.065, 279C.307, 279C.335, 279C.337 and 279C.380
279C.335
Competitive bidding requirement
279C.337
Procurement of constructions manager/general contractor services
279C.340
Contract negotiations
279C.345
Specifications for contracts
279C.350
Exemption procedure
279C.355
Evaluation of public improvement projects not contracted by competitive bidding
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 and execution of contract
279C.380
Performance bond
279C.385
Return or retention of bid security
279C.390
Exemption of contracts from bid security and bonds
279C.395
Rejection of bids
279C.400
Competitive proposals
279C.405
Requests for information, interest or qualifications
279C.410
Receipt of proposals
279C.412
Competitive quotes for intermediate procurements
279C.414
Requirements for competitive quotes
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 decision to deny, revoke or revise prequalification
279C.460
Action by or on behalf of adversely affected bidder or proposer
279C.465
Action against successful bidder
279C.470
Compensation for contractor on contract declared void by court
279C.500
“Person” defined
279C.505
Conditions concerning payment, contributions, liens, withholding, drug testing
279C.510
Demolition contracts to require material salvage
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
279C.527
Inclusion of amount for green energy technology or woody biomass energy technology in public improvement contract
279C.528
State Department of Energy requirements and specifications
279C.530
Condition concerning payment for medical care and providing workers’ compensation
279C.533
Condition concerning employment of apprentices to perform percentage of work hours that workers in apprenticeable occupations perform on public improvements
279C.534
Advisory committee for monitoring implementation of apprenticeship condition in public improvement contracts
279C.535
Condition concerning steel material
279C.537
Condition concerning use of diesel engines in motor vehicles used in performing certain public improvement contracts
279C.540
Maximum hours of labor on public contracts
279C.545
Time limitation on claim for overtime
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
279C.580
Contractor’s relations with subcontractors
279C.585
Authority to substitute undisclosed first-tier subcontractor
279C.590
Complaint process for substitutions of subcontractors
279C.600
Right of action on payment bond or public works bond of contractor or subcontractor
279C.605
Notice of claim
279C.610
Action on contractor’s public works bond or payment bond
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
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
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
279C.815
Determination of prevailing wage
279C.817
Determination of applicability of prevailing wage rate
279C.820
Advisory committee to assist commissioner
279C.825
Fees
279C.827
Division of public works project
279C.829
Agreement with other state to pay less than prevailing rate of wage
279C.830
Provisions concerning prevailing rate of wage in specifications, contracts and subcontracts
279C.835
Notifying commissioner of public works contract subject to prevailing wage
279C.836
Public works bond
279C.838
Applicability of state and federal rates of wage
279C.840
Payment of prevailing rate of wage
279C.845
Certified statements regarding payment of prevailing rates of wage
279C.850
Inspection to determine whether prevailing rate of wage being paid
279C.855
Liability for violations
279C.860
Ineligibility for public works contracts for failure to pay or post notice of prevailing rates of wage
279C.865
Civil penalties
279C.870
Civil action to enforce payment of prevailing rates of wage
279C.875
Criminal liability for intentional failure to pay prevailing wage
Green check means up to date. Up to date