Chapter Five: Awarding Bids
The board of county commissioners has the authority to award the lowest and most responsible bidder. If an award is made to someone other than the lowest bidder, the awarding public agency shall accompany its action with a publicized statement setting forth the reasons for its action. This statement shall be an open record.
61 O.S. §117
Counties may provide for a local bid preference of not more than 5% of the bid price if the awarding public agency determines that there is an economic benefit to the local area or economy. This is the case if the local bidder or contractor must agree to fulfill the contract for the same price and terms as the bid proposed by the nonlocal bidder or contractor. Any bid preference granted must be in accordance with an established policy adopted by the governing body of the awarding public agency to clearly demonstrate the economic benefit to the local area or economy. No local bid preference shall be granted unless the local bidding entity is the second-lowest qualified bid on the contract.
61 O.S. §103(B)
The bid specifications shall clearly state that the bid is subject to local bidder preference law. For purposes of this section, “local bid” means the bidding person is authorized to transact business in this state and maintains a bona fide establishment for transacting such business within this state. This provision does not apply to any construction contract for which federal funds are available for expenditure when its provisions may conflict with federal laws or regulations.
Awards shall be made within 30 days after the opening of the bids unless the governing body of the awarding public agency, by formal recorded action and for a good cause shown, provides for a reasonable extension of that period. The extension period shall not, in any event, exceed the following time frames:
61 O.S. §111
- 15 days when only state or local funds are involved;
- Not to exceed 90 days on any award of contract for the construction of a public improvement where funds are utilized that are furnished by an agency of the United States Government:
- Upon mutual written agreement between the lowest responsible bidder or bidders and the awarding public agency, the division may extend the contract award period to no more than 120 days from the bid opening date; 61 O.S. § 113(A)
- Within 60 days of the awarding of the bid, all contractual requirements as set forth in the bid documents must be completed. The contract shall not be executed until all bonds and insurance are provided. 61 O.S. § 113(B)
- A payment/performance bond in the amount equal to the contract amount:
- The purpose of this bond is to ensure the proper and prompt completion of the work in accordance with the contract and shall ensure that the contractor shall pay for all indebtedness incurred for subcontractors, labor, materials, rental of equipment, and other items.
- A bond in a sum equal to the contract price or an irrevocable letter of credit in a sum equal to the contract price, to protect the awarding public agency against defective workmanship and materials for a period of one year after acceptance of the project;
- Public liability and workers’ compensation insurance during construction in reasonable amounts:
- A public agency may require the contractor to name the public agency and its architects or engineers, or both, as an additional insured party under the public liability insurance. This requirement, if made, shall be specifically set forth in the bidding documents; 61 O.S. § 128
- Builder’s risk insurance may be required; 61 O.S. § 134
- All insurances must be licensed to do business in the state of Oklahoma