Chapter 8 LOCAL PUBLIC CONTRACTS LAW

Question 1

AGGREGATE

Answer 1

Sums expended or to be expended for the purchase of any goods or services

Question 2

BID THRESHOLD

Answer 2

Dollar amount set by law, above which a contracting unit has to advertise for and receive sealed bids

Question 3

CONTRACT

Answer 3

Any agreement which is legally binding relationship between vender and contracting unit

Question 4

Contract year

Answer 4

Period of 12 months following award of contract

Question 5

CONTRACTING AGENT

Answer 5

Governing body

Question 6

CONTRACTING UNIT

Answer 6

County, municipality, board that has power to make putchases

Question 7

GOODS AND SERVICES

Answer 7

Any work, labor, commodities provided through a contract

Question 8

LOWEST PRICE

Answer 8

Least possible amount that meets requirements

Question 9

PROFESSIONAL SERVICES

Answer 9

Services performed by a person

Question 10

PROPRIETARY

Answer 10

Goods and services of a specialized nature that may be made marketed by a person

Question 11

PURCHASE

Answer 11

Transaction for a valuable consideration

Question 12

PURCHASE ORDER

Answer 12

Document issued by contracting agent authorizing a purchase

Question 13

PURCHASING AGENT

Answer 13

Individual accountable for purchasing agent

Question 14

QUOTATION

Answer 14

The response to a formal or informal request made by the contracting agent for cost when aggregate cost is less than the bid threshold

Question 15

RESPONSIBLE

Answer 15

Able to complete the contract in accordance with its requirements

Question 16

RESPONSIVE

Answer 16

Conforming in all material respects to the terms, conditions, specifications, legal requirements and other provisions

Question 17

SERVICE OR SERVICES

Answer 17

Performance of work or furnishing of labor or time

Question 18

Bid threshold

Answer 18

$17,500 if QPA then up to but not exceeding $44,000

Question 19

Who can adjust the bid threshold and when

Answer 19

The Governor
No later than March 1st of every 5th year

Question 20

LOWEST RESPONSIBLE BIDDER

Answer 20

Contracts law requires all contracts and purchases in excess of the formal bid threshold be awarded to the lowest responsible bidder

Question 21

Competitive contracting

Answer 21

Used in lieu of public bidding for goods and services that are hard to specify and price exceeds threshold

Question 22

Bid guarantee

Answer 22

A guarantee payable to a local contracting unit for faithful signing

Question 23

What is the bid guarantee amount

Answer 23

10% of the bid but not in excess of $20,000

Question 24

Consent of surety

Answer 24

Given at the time bid was received that a performance bond will be given upon contract signing

Question 25

Performance bond

Answer 25

Bond provided by surety company for contractors faithful performance of provisions in contract

Question 26

Maintenance bond

Answer 26

Security after acceptance of work performed and cannot be longer than 2 years no more than 100% of project cost

Question 28

Contract below threshold

Answer 28

15% for 2 quotes $2,625 for the $17,500 $6,600 for the $44,000

Question 29

When must the governing body award a contract

Answer 29

Can not exceed 60 calendar days

Question 30

Reasons to reject bids

Answer 30

Lowest bid substantially exceeds the cost estimates for goods and services Lowest bid exceeds contracting units appropriation for goods services Governing body of contracting unit decides to abandon the project Contracting unit wants to revise specifications

Question 31

Change order limitation

Answer 31

Not more than 20%