Three-Bid Process (For Non-profit grantees only) Non-profit grantees must attempt to obtain bids before awarding a contract on a grant-funded project for services (greater than $5,000), and for construction work (greater than $25,000), thus ensuring state funds are spent responsibly. Process: Non-profit grantee attempts to obtain three bids for services (greater than $5,000) and for construction work (greater than $25,000). To ensure that bidders understand the required project elements, the non-profit grantee provides each bidder (potential contractor) the same written invitation for bid describing the project work to be performed based on Value” factors, and the “Best required project elements based on the Grant Scope/Cost Estimate Form, and concept level site plan. Solicit bids by contacting at least three potential contractors or by invitation for bids advertising, or a combination of both methods. The non-profit grantee’s Board of Directors evaluates the bids to determine which contractor will provide the value” and will meet project requirements. value” “best “Best should be determined by price, quality of materials, equipment, and workmanship. The evaluation process must ensure no conflict of interest between the contractor and the non-profit grantee’s Board of Directors. The non-profit grantee’s Board of Directors need not necessarily accept the lowest bid, but a reasonable justification for the decision should be recorded in writing. The Board of Directors selects a contractor and awards a contract. For audit purposes, the grantee keeps records of Steps 1 4 above. – Waiver of Three-Bid Requirement The non-profit grantee may request a waiver of the three-bid process requirement. To request a waiver, the grantee must send a written request to the project officer assigned to the grant project and explain why a waiver is required. ELIGIBLE AND INELIGIBLE COSTS non-construction costs include expenses incurred prior to ground breaking, as well as costs associated with grant administration. No more than 25% of the grant amount may be spent on non-construction costs. Additionally, if the Grantee committed match for this project, these costs are not eligible for reimbursement.
Three-Bid Process (For Non-profit grantees only) Non-profit grantees must attempt to obtain bids before awarding a contract on a grant-funded project for services (greater than $5,000), and for construction work (greater than $25,000), thus ensuring state funds are spent responsibly. Process: Non-profit grantee attempts to obtain three bids for services (greater than $5,000) and for construction work (greater than $25,000). To ensure that bidders understand the required project elements, the non-profit grantee provides each bidder (potential contractor) the same written invitation for bid describing the project work to be performed based on “Best Value” factors, and the required project elements based on the Grant Scope/Cost Estimate Form, and concept level site plan. Solicit bids by contacting at least three potential contractors or by invitation for bids advertising, or a combination of both methods. The non-profit grantee’s Board of Directors evaluates the bids to determine which contractor will provide the “best value” and will meet project requirements. “Best value” should be determined by price, quality of materials, equipment, and workmanship. The evaluation process must ensure no conflict of interest between the contractor and the non-profit grantee’s Board of Directors. The non-profit grantee’s Board of Directors need not necessarily accept the lowest bid, but a reasonable justification for the decision should be recorded in writing. The Board of Directors selects a contractor and awards a contract. For audit purposes, the grantee keeps records of Steps 1 – 4 above. Waiver of Three-Bid Requirement The non-profit grantee may request a waiver of the three-bid process requirement. To request a waiver, the grantee must send a written request to the project officer assigned to the grant project and explain why a waiver is required. ELIGIBLE AND INELIGIBLE COSTS non-construction costs include expenses incurred prior to ground breaking, as well as costs associated with grant administration. No more than 25% of the grant amount may be spent on non-construction costs. Additionally, if the Grantee committed match for this project, these costs are not eligible for reimbursement.
OEEF_Admin_Guide_6.23.17.docx