PAP.2.6.050 Contract Award

(a) Notice of Award. The Chief Procurement Officer or designee shall prepare a notice of award letter and forward it to the Tribal Chairman or designated representative. If acceptable, the Tribal Chairman or designated representative shall sign the notice of award letter and return it to the CPO for processing. The CPO must request that the contractor provide the assurance of completion (bonding) in the amount identified in the bid (and as specified in the general conditions of the contract). Before executing the contract, the CPO shall ensure that the assurance of completion meets the requirements of the TGB.

(b) Distribution of Executed Documents. The Finance Office shall retain one (1) original copy of the performance and payment bond (or other assurance), the power of attorney, and a signed set of the contract documents for its files. The CPO shall retain the contractor's copy for attachment to the Tribe's notice to proceed.

(c) Pre-construction Conference Minutes. If a pre-construction meeting is held, the minutes of the meeting and a list of attendees shall be prepared and kept in the Vendor file. The CPO should review the minutes.

(d) Notice to Proceed. The CPO shall prepare two (2) original copies of the notice to proceed to be issued to the contractor together with the contractor's set of the executed contract documents. The notice to proceed is the official Tribal order directing the contractor to start work. For all federally assisted labor contracts, work is not allowed to begin until the notice to proceed has been issued and signed by all required parties. The date of completion is counted from the date of the notice to proceed. The contractor shall be requested to sign the notice to proceed, designating receipt and acceptance, and return the signed original to the TGB. The signed original is to be kept in the Vendor file. A copy shall be sent to the Department of Labor for all federally funded contracts involving labor over five thousand dollars ($5,000).

(e) Assurance of Completion. For construction contracts more than one hundred and fifty thousand ($150,000) dollars, each contractor shall be required to provide bid guarantees and adequate assurance of performance and payment acceptable to the Tribe. The following methods may be used to provide performance and payment assurance:

(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee'' shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required within the time specified.

(2) A performance bond on the part of the contractor for one hundred percent (100%) of the contract price. A "performance bond'' is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.

(3) A payment bond on the part of the contractor for one hundred percent (100%) of the contract price. A "payment bond'' is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

(f) Use of a Surety. If the contractor uses a surety company, the surety must be a guarantee or surety company acceptable to the government. U.S. Treasury Circular No.570, entitled Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies, is published annually in the Federal Register. This circular lists companies approved to act as a surety on bonds securing government contracts. It also provides the maximum underwriting limits on each contract bonded, and the states in which each company is licensed to do business. The Tribe must refer to this circular when a surety is used. The circular can be obtained by contacting the Surety Bond Branch of the Financial Management Service (Department of the Treasury).

(g) For all Construction contracts, the Tribe's Legal Department will ensure the contract contains the following provisions:

(1) Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR chapter 60). (All construction contracts awarded in excess of $10,000)

(2) Compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3). (All contracts and subgrants for construction or repair)

(3) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented by Department of Labor regulations (29 CFR Part 5). (Construction contracts in excess of $5000 awarded by grantees and subgrantees when required by Federal grant program legislation)