HomeMy WebLinkAbout2026-103 CONTR LTM Inc. dba Knife River Materials - Airport Runway and Taxilane Rhabilitation Project CITY OF
^ASHLAND
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PUBLIC IMPROVEMENT CONTRACT
FOR
ASHLAND MUNUCIPAL AIRPORT- RUNWAY AND TAXILANE
REHABILITATION PROJECT
PROJECT NO. 2024-03
This Public Improvement Contract (hereinafter "Contract") is entered into by and between
the CITY OF ASHLAND, an Oregon municipal corporation (hereinafter "City"), and
LTM Inc. dba Knife River Materials
(hereinafter
"Contractor"). This Contract incorporates the attached `Contractor Data, Certification, and
Signature' page as well as Exhibits A-J.
NOW THEREFORE, for good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties mutually covenant and agree as follows:
1. PROJECT MANAGER:
The City's Project Manager for this Contract is:
Chance Metcalf, Project Manager, City of Ashland Public Works/Engineering Division
2. WORK:
2.1.The Work under this Contract is for the ASHLAND MUNUCIPAL AIRPORT-RUNWAY
AND TAXIELANE REHABILITATION PROJECT. Project No. 2 024-03 as more fully
described in the Contract Documents listed in Section 5 of EXHIBITA, STANDARD
TERMS AND CONDITIONS FOR PUBLIC IMPROVEMENT CONTRACTS. Contractor shall
complete all Work as specified in the Contract Documents. The Work is generally
described as follows:The Work is generally described as follows:
2.1.1. Rehabilitation of Runway and Taxilanes.
2.1.1.1. Pavement marking removal.
2.1.1.2. Narrow and wide crack repair.
2.1.1.3. Asphalt patch.
2.1.1.4. Surface seal approximately 38,200 SY of existing pavement.
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2.1.1.5. Asphalt rehabilitation is approximately 8,100 SY.
2.1.1.6. Rock shoulder.
2.1.2. Reconstruction of Taxi lane section T03AS-01.
2.1.2.1. Demolish, over excavate, and replace approximately400 SY of existing
pavement.
2.1.2.2. Associated shoulder grading and restoration.
The Statement of Work, including the delivery schedule for the Work, is contained in
the Contract Documents.
2.2. Contractor shall, at its own risk and expense, perform the Work under the terms
outlined in this Contract and as described in the Contract Documents and furnish all
permits, labor, tools, machinery, materials, transportation, equipment and services of
all kinds required for, necessary for, or reasonable incidental to, performance of the
Work,that is, the construction of the ASHLAND MUNUCIPAL AIRPORT-RUNWAYAND
TAXILANE REHABILITATION PROJECT, Project No. 2024-03. Contractor shall secure all
municipal, County, State, or Federal Permits or licenses including payment of permit
fees, license fees, and royalties necessary for or incidental to the performance of the
Work. The risk of loss for such Work shall not shift to the City untilwritten acceptance
of the Work by the City.
3. EFFECTIVE DATE AND DURATION:
This Contract is effective as of the date of execution by the City(the "Effective Date"). All
Work under this Contract shall, unless otherwise terminated or extended, be completed on
or before 60 calendar days following Contractor's receipt of the written Notice to Proceed.
4. CONSIDERATION
4.1. City agrees to pay Contractor, at the times and in the manner provided in the Contract
Documents, the sum of to $1,025,144.80 for
performingthe Work required bythis Contract, including allowable expenses.This
sum cannot be modified except by Change Order approved in writing by the City.
Any progress payments to Contractor shall be made only in accordance with the
schedule and the requirements as set forth in the Standard Terms and Conditions.
4.2. City certifies that sufficient funds have been appropriated to make payments required
by this Contract during the current fiscal year. Contractor understands and agrees that
City's payment of amounts under this Contract attributable to Work performed after
the last day of the current fiscal year is contingent upon City appropriations, or other
expenditure authority sufficient to allow City in the exercise of its reasonable
discretion,to continue to make payments under this Contract. In the event City has
insufficient appropriations, limitations or other expenditure authority, City may
terminate this Contract without penalty or liability to City, effective upon the delivery of
written notice to Contractor,with no further liability to Contractor.
5. CONTRACTOR'S REPRESENTATIONS
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In order to induce City to enter into this Contract, Contractor makes the following
representations:
5.1. Contractor has examined and carefully studied the contract documents, and any data
and reference items identified in the contract documents.
5.2. Contractor has visited the Site, conducted a thorough, alert visual examination of the
Site and adjacent areas, and become familiar with and is satisfied as to the general,
local, and Site conditions that may affect cost, progress, and performance of the
Work.
5.3. Contractor is familiar with and is satisfied as to all laws and regulations that may affect
cost, progress, and performance of the Work.
5.4. Contractor has carefully studied all drawings of physical conditions relating to existing
surface or subsurface structures at the Site that have been identified or provided in the
project bid documents especiallywith respect to technical data in such reports and
drawings, and reports and drawings relating to hazardous environmental conditions, if
any, at or adjacent to the Site that have been identified in the project bid documents,
especiallywith respect to Technical Data in such reports and drawings.
5.5. Contractor has considered the information known to Contractor itself; information
commonly known to contractors doing business in the locality of the Site; information
and observations obtained from visits to the Site;the contract documents; and the
Site-related reports and drawings identified in the contract documents,with respect to
the effect of such information, observations, and documents on (1)the cost, progress,
and performance of the Work; (2)the means, methods,techniques, sequences, and
procedures of construction to be employed by Contractor; and (3) Contractor's safety
precautions and programs.
5.6. Based on the information and observations referred to in the preceding paragraph,
Contractor agrees that no further examinations, investigations, explorations, tests,
studies, or data are necessary for the performance of the Work at the Contract Price,
within the Contract Times, and in accordance with the other terms and conditions of
the Contract.
5.7. Contractor is aware of the general nature of work to be performed by City and others at
the Site that relates to the Work as indicated in the contract documents.
5.8. Contractor has given City written notice of all conflicts, errors, ambiguities, or
discrepancies that Contractor has discovered in the contract documents, and the
written resolution thereof by City is acceptable to Contractor.
5.9.The contract documents are generally sufficient to indicate and convey understanding
of all terms and conditions for performance and furnishing of the Work.
6. GOVERNING LAW
The provisions of this Contract shall be construed in accordance with the laws of the State
of Oregon. Any action or suits involving any question arising under this contract must be
brought in the appropriate court in Jackson County, Oregon. If the claim must be brought in
a federal forum, then it shall be brought and conducted in the United States District Court
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forth e District of Oregon. Contractor, by the signature herein of its authorized
representative, hereby consents to the in personam jurisdiction of said courts. In no event
shall this section be construed as a waiver of the City of any form of defense or immunity.
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CONTRACTOR DATA, CERTIFICATION,AND SIGNATURE
Business Name (please print): 1,TM,Inc.dba Knife River Materials
Contact Name: Josh Rapp Phone: (541) 821-0255 Fax: (541) 664-4567
Address 3959 Hamrick Rd.,Central Point,OR 97502
Do Not Write Federal and State Tax ID Numbers on this Agreement. One copy of W-9 is to be
submitted with the signed contract to be kept on file in the City of Ashland Finance
Department.
Ashland Business License# 14001456 Construction Contractors Board # 56603
Citizenship: Nonresident alien Yes V No
Business Designation (check one): Individual Sole Proprietorship
Partnership __v�Corporation Government/Nonprofit
The above information must be provided prior to contract approval. Payment information
will be reported to the Internal Revenue Service (IRS) under the name and taxpayer I.D.
number provided above. (See IRS 1099 for additional instructions regarding taxpayer ID
numbers.) Information not matching IRS records could subject you to 31 percent backup
withholding.
I, the undersigned, understand that the Standard Terms and Conditions For Public
Improvement Contracts (Exhibit A) together with Exhibits B through P together with all
other Contract Documents as described in Standard Terms and Conditions Section 5 below,
and the separately bound FAA Advisory Circulars(latest editions and changes) Oregon 2024
Standard Specifications for Construction, as amended by the City of Ashland's most recent
Addenda to the 2024 Standard Specifications are an integral part of this contract and agree
to perform the work described in the Contract Documents, including Exhibit A, in
accordance with the terms and conditions of this contract. I further understand the City is
prohibited from entering into a contractwhen the contractor has neglected or refused to file
any return, pay any tax, or properly contest a tax, pursuant to ORS 305.385; 1 hereby certify,
under penalty of perjury and false swearing, that I/my business am/is not in violation of any
Oregon tax laws; I further certify that the certification and representations in Standard Term
and Condition # 16 [CCB Registration Requirements] are true and correct, and further I
certify that I am an independent contractor as defined in ORS 670.600.
isl
CONTRACTOR:
Signature/Title
Tyler Douglas
Printed name
(f—
Date
NOTICE TO CONTRACTOR: This contract does not bind the City of Ashland unless and until
it has been executed by the Public Contracting Officer or designee.
CITY OF ASHLAND SIGNATURE
CITY:
Sabrina Cotta
City Manager, City of Ashland
06/25/26
Date
ATTACHMENTS: Certificate of Representation
Standard Terms&Conditions
Bid Schedule
Insurance Requirements
CERTIFICATE OF REPRESENTATION
Contractor, under penalty of perjury, certifies that:
(a) The number shown on this form is its correct taxpayer ID(or is waiting for the numberto be issued
to it; and
(b) Contractor is not subject to backup withholding because
(i) it is exempt from backup withholding or
(ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup
withholding as a result of a failure to report all interest or dividends,�or
(iii) the IRS has notified it that it is no longer subject to backup withholding. Contractor further
represents and warrants to City that
(a) it has the power and authority to enter into and perform the work,
(b) the Contract,when executed and delivered, shall be a valid and binding obligation of
Contractor enforceable in accordance with its terms, and
(c) The work under the Contract shall be performed in accordance with the highest professional
standards,and
(d) Contractor is qualified, professionally competent and duly licensed to perform the work.
Contractor also certifies under penalty of perjury that its business is not in violation of any
Oregon tax laws,and it is a corporation authorized to act on behalf of the entity designated above
and authorized to do business in Oregon or is an independent contractor as defined in the
contract documents, and has checked four or more of the following criteria:
(1) 1 carry out the labor or services at a location separate from my residence or is in a
specific portion of my residence,set aside as the location of the business.
.(2) Commercial advertising or business cards or a trade association membership are
purchased for the business.
(3) Telephone listing is used for the business separate from the personal residence
Listing.
(4) Labor or services are performed only pursuantto written contracts.
.(5) Labor or services are performed for two or more different persons within a period of
one year.
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(6) 1 assume financial responsibility for defective workmanship or for service not
provided as evidenced by the ownership of performance bonds, warranties, errors
and omission insurance or liability insurance relating to the labor or services to be
provided.
Zy--Zoz6
Contractor—P-2----- Date
20 1 _
EXHIBIT A - STANDARD TERMS AND CONDITIONS FOR PUBLIC
IMPROVEMENT CONTRACTS
1. Contractor is Independent Contractor
a. Contractor shall perform the work required bythis Contract as an independent
contractor.
b. The Contractor represents and warrants that Contractor(i)is not currently an employee
of the federal government or the State of Oregon, and (ii) meets the specific
independent contractor standards of ORS 670.600, as certified on the Independent
Contractor Certification Statement attached as Exhibit D.
c. Contractor will be responsible for any federal or state taxes applicable to any
compensation or payment paid to Contractor under this contract.
d. Contractor is not eligible for any federal Social Security, unemployment insurance,
state Public Employees' Retirement System, or workers' compensation benefits from
compensation or payments to Contractor under this contract.
2. Subcontracts and Assignment
Contractor shall not subcontract any of the work required by this contract, or assign, sell,
dispose of, or transfer any of its interest in this contract, nor delegate duties under the
contract, either in whole or in part,without the prior written consent of the City. Such consent if
provided shall not relieve the Contractor of any of the obligations under the contract.Any
assignee or transferee shall be considered the agent of the contractor and be bound to abide by
all provisions of the contract. If the City consents in writing to an assignment, sale, disposal or
transfer of the Contractor's rights or delegation of Contractor's duties, the Contractor and its
Surety, if any, shall remain liable to the City for complete performance of the Contract as if no
such assignment, sale,disposal,transfer or delegation had occurred unless the City otherwise
agrees in writing. [OAR 137-049-0200(2)]
Use of Subcontractors, material suppliers or equipment suppliers shall in no way release
Contractor from any obligations of contract with City. Contractor will provide in all subcontract
agreements that the Subcontractor, material supplier and equipment supplier will be bound by
the terms and conditions of this Contract to the extent that they relate to the Subcontractor's
work, material or equipment. All Subcontracts are assignable to the City at City's option, in the
event this agreement is terminated for default of Contractor.
Contractor covenants and agrees to bind any and all subcontractors for performance of work
under this Contract in the same manner Contractor is bound to City. Contractor further agrees
that if subcontractors are employed in the performance of this contract,the Contractor and its
subcontractors are subject to the requirements and sanction of ORS Chapter 656,Workers'
Compensation.
3. No Third-Party Beneficiaries
City and Contractor are the only parties to this Contract and are the only parties entitled to
enforce its terms. Nothing in this Contract gives or provides any benefit or right,whether
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directly, indirectly, or otherwise,to third persons unless such third persons are individually
identified by name herein and expressly described as intended beneficiaries of the terms of this
Contract.
4. Successors in Interest
The provisions of this Contract shall be binding upon and shall inure to the benefit of the parties
hereto, and their respective successors and approved assigns, if any.
5. Contract Documents
The Contract Documents,which comprise the entire Contract between the City and
Contractor, include all sections or parts of the bid package however denominated, including all
documents and plans attached or referenced therein,the Notice to Contractors- Invitation to
Bid, Offer, First-Tier Subcontractors Disclosure Form, Surety Bond, Public Improvement
Contract, Contract Standard Terms and Conditions and Exhibits thereto, Performance Bond,
Payment Bond, Special Provisions, Plans, Construction Drawings, Standard Drawings, and
Contract Addendums, all attached hereto, and incorporated herein by this reference,together
with the Prevailing Wage(8OL1-)if applicable AND an-y other separately bound reference,
Oregon 2024 Standard Specifications for Construction, and City of Ashland Addenda,
incorporated herein by this reference. All exhibits, schedules and lists attached to the
Contract Documents, or delivered pursuant to the Contract Documents, or otherwise available
from the City, shall be deemed a part of the Contract Documents and incorporated herein,
where applicable, as if fully set forth herein.
6. Contractor's Representations
By executing this contract, the Contractor hereby certifies that the representations made by the
Contractor in the Contract Documents, including specificallythe Offer, are true and correct
and are incorporated herein by this reference. Contractor further certifies that Contractor has
given the Citywritten notice of conflicts, errors, ambiguities, or discrepancies that it has
discovered in the Contract Documents, and the written resolution thereof by the City is
acceptable to the Contractor, and the Contract Documents are generally sufficient to indicate
and convey understanding of terms and conditions for performing and furnishing the project
work.
7. Drug Testing[ORS 279C.505(2)]
a. Contractor shall certify to the City that it has a drug-testing program in place for all its
employees that includes,at a minimum,the following:
i. Awritten employee drug-testing policy,
ii. Required drug testing for all new Subject Employees or alternatively, required
testing of all Subject Employees every 12 months on a random selection basis, and
iii. Required testing of a Subject Employee when the Contractor has reasonable cause
to believe the Subject Employee is under the influence of drugs.
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b. Ad rug-testing program that meets the above requirements will be deemed a "Qualifying
Employee Drug-testing Program." For the purposes of this section, an employee is a
"Subject Employee" only if that employee will be working on the Public Improvement
project job site.
c. By executing and returning this contract the Contractor certifies, represents and
warrants to the City that a Qualifying Employee Drug-testing Program is in place at the
time of execution,will continue in fu[If orce and effect forth e duration of this contract,
and that Contractor will comply with the provisions of subsection (d) below. Further,
the City's performance obligation (which includes,without limitation,the City's
obligation to make payment)is contingent on Contractors compliance with this
representation and warranty.
d. Contractor will require each subcontractor providing labor for the project to:
i. Demonstrate to the Contractor that it has a Qualifying Employee Drug-testing
Program for the subcontractor's Subject Employees, and represent and warrant to
the Contractor that the Qualifying Employee Drug-testing Program is in place at the
time of subcontract execution and will continue in full force and effect for the
duration of the subcontract; or
ii. Require that the subcontractor's Subject Employees participate in the Contractor's
Qualifying Employee Drug-testing Program for the duration of the subcontract.
8. Notice to Proceed
Written Notice to Proceed will be given by the City after the Contract has been executed and
the Performance Bond, Payment Bond, and all required insurance documents approved.
Notice To Proceed shall not be unreasonably delayed and shall generally occurwithin thirty
(30)days of the contract date. Reasonable delay maybe occasioned by the need to obtain
necessary permits or easements or utility relocation. The Contractor shall commence the
project work within ten (10)days of the date of the written Notice To Proceed. Contractor is not
to commence work under the Contract prior to such written notice.
9. Suspension of the Work
The City, and its authorized representatives, may suspend portions or all of the project work
due to causes including, but not limited to:
a. Failure of the Contractor to correct unsafe conditions;
b. Failure of the Contractor to carry out any provision of the Contract;
c. Failure of the Contractor to carry out orders;
d. Conditions, in the opinion of the City,which are unsuitable for performing the project
work;
e. Allowance of time required to investigate differing site conditions;
f. Any reason considered to be in the public interest.
The contract time will not be extended, nor will the Contractor be entitled to any additional
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compensation if the work is suspended pursuant to subsections (a), (b)or(c). If the project
work is suspended pursuant to subsection (f),the Contractor is entitled to a reasonable
extension of the contract time and reasonable compensation for all verified costs resulting
from the suspension plus a reasonable allowance for overhead with respect to such costs.
Contractor shall not be paid on account of loss of anticipated profits or revenue or other
economic loss arising out of or resulting from such termination. The foregoing provision
concerning compensation in the event of a suspension of Work of this contract shall not apply
if such suspension occurs as a result of the Contractor's violation of any Federal, State, or
Local statutes, ordinances, rules or regulations, or as a result of anyviolation by the Contractor
of the terms of this contract, including a determination by the City that the Contractor has not
progressed satisfactorily with the Work in accordance with specifications.
10. Early Termination
a. The Cityand the Contractor, by mutualwritten agreement, may terminate this Contract
at any time.
b. The City, on 30 days written notice to the Contractor, may terminate this Contract for
any reason deemed appropriate in its sole discretion.
c. The City may terminate this contract, in whole or in part, at any time for any reason
considered by the City, in the exercise of its sole discretion,to be in the public interest.
The City will provide the Contractor, and the Contractor's surety,seven (7)days prior
written notice of a termination for public convenience.
d. Either the City or the Contractor may terminate this Contract in the event of a breach of
the Contract by the other. Prior to such termination, however,the party seeking the
termination shall give to the other party written notice of the breach and of the party's
intent to terminate. If the Party has not entirely cured the breach within 15 days of the
notice,then the party giving the notice may terminate the Contract at anytime
thereafter by giving a written notice of termination.
11. Payment on Early Termination
a. If this contract is terminated under 10(a),(b), or(c),the City shall pay the Contractor for
work performed in accordance with the Contract prior to the termination date.
b. If this contract is terminated under 10(d), by the Contractor due to a breach by the City,
then the City shall pay the Contractor as provided in subsection (a)of this section.
c. If this contract is terminated under 10(d), by the City due to a breach by the Contractor,
then the City shall pay the Contractor as provided in subsection (a)of this section,
subject to set off of excess costs, as provided for in section 12, Remedies.
12. Remedies
In the event of termination under 10(d), bythe Citydue to a breach bythe Contractor,then the
City may complete the work either itself, by agreement with another contractor, or by a
combination thereof. In the event the cost of completing the work exceeds the remaining
unpaid balance of the total compensation provided under this contract,then the Contractor
shall pay to the City the amount of the reasonable excess. After notice of termination under
paragraph 10(c),the Contractor and the Contractor's surety shall provide the City with
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immediate and peaceful possession of the Project site and premises, and materials located on
and off the Project site and premises for which the Contractor received progress payment. In
no circumstances shall Contractor be entitled to lost profits due to termination.
The remedies provided to the City under section 10 through 12 for a breach by the Contractor
shall not be exclusive. The City also shall be entitled to any other equitable and legal remedies
that are available.
In the event of breach of this Contract by the City,then the Contractor's remedy shall be limited
to termination of the Contract and receipt of payment as provided in section 11(b).
13. Access to Records
Contractor shall maintain, and the City and its authorized representatives shall have access to
all books, documents, papers and records of Contractor which relate to this contract for the
purpose of making audit, examination, excerpts, and transcripts for a period of three years after
final payment. Copies of applicable records shall be made available upon request. Payment
for cost of copies is reimbursable by the City.
14. Ownership of Work
All work products of the Contractor that result from this contract, including but not limited to
background data, documentation and staff work that is preliminary to final reports, are the
property .of City. Draft documents and preliminary work submitted to the City for review and
comment shall not be considered as owned, used or retained by the City until the final
document is submitted.
The City shall own all proprietary rights, including but not limited to copyrights, trade secrets,
patents and all other intellectual or other property rights in and to such work products. Pre-
existing trade secrets of the Contractor shall be noted as such and shall not be considered as a
work product of this contract. All such work products shall be considered "works made for
hire" under the provisions of the United States Copyright Act and all other equivalent laws.
Use of any work product of the Contractor by the City for any purpose other than the use
intended by this contract is at the risk of the City. Use of any work product by Contractor is
prohibited without the written consent of the City. All documents or other materials submitted
to City by Contractor shall become the sole and exclusive property of City. Such materials are
subject to Oregon Public Records laws.
15. Compliance with Applicable Law
Contractor certifies and shall comply and require all Subcontractors to comply with all federal,
state, and local laws and ordinances, including specifically City of Ashland and State of Oregon
Public contracting laws and rules applicable to the work under this Contract, including without
limitation ORS Chapter 279A, ORS Chapter 279B, ORS Chapter 279C, ORS 279C.500 through
279C.670, and specifically ORS 279A.120(3), ORS 279C.515, ORS 279C.520, ORS 279C.530,
ORS 279C.830 and ORS 279C.580 as set forth on Exhibit B,attached hereto and made a part
hereof bythis reference In addition,the provisions of ORS 279C.360, ORS 279C.365(4), and
ORS 279C.370 (Bid Documents and Disclosure); ORS 279A.010(p), 279A.120, 279C.375, and
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279C.380(4), (Award of Contract and Bond); ORS 279A.110 (Prohibition on Discrimination in
Subcontracting); ORS 279C.585 (Substitution first-tier Subcontractor); ORS 279C.650 to
279C.670 (Termination);ORS 279C.520, ORS 279C.540, 279C.545(Hours); ORS 279C.800 to
279C.870 (Oregon Prevailing Wage Law), if applicable; ORS 279C.550 to 279C.565 (Retainage);
ORS 279C.4570(Payments); and ORS 279C.600 to 279C.625 (Bonds) ORS 279A.125
(Recyclable Products)are all incorporated into this contract by this reference as though set
forth in full. Without limiting the foregoing, Contractor expressly agrees to comply with: (i)any
requirements of the DAVIS BACON ACT(40 U.S.C. 3142 and applicable Davis- Bacon Related
Acts; (ii)Title VI of the Civil Rights Act of 1964; (iii)Section V of the Rehabilitation Act of 1973;
(iv)the Americans with Disabilities Act of 1990, (v)ORS 659A.142, (vi)all regulations and
administrative rules established pursuant to those laws; and (vii)all other applicable
requirements of federal and state civil rights and rehabilitation statues, rules and regulations.
In addition, Contractor expressly agrees to comply with all federal and state tax laws. A
condition or clause required by law to be in this contract shall be considered included and
incorporated into the Contract and made a part hereof by these references.
16. Registration with Construction Contractor's Board
The Contractor, hereby certifies that the Contractor is licensed with the Construction
Contractors Board or licensed by the State Landscape Contractor's Board in accordance with
ORS 701.035 to 701.055 and,further, that all subcontractors performing work as described in
ORS 701.005(2)(i.e., construction work)will be licensed with the Construction Contractors
Board or licensed by the State Landscape Contractor's Board in accordance with ORS 701.035
to 701.055 before the subcontractors commence work under the contract.
17. Prevailing Wages/BOLI Fee
a. Contractor shall certify in the Contract and it shall be a condition of the bond, as
provided in ORS 279C.800 through 279C.870, that in performing this Contract,
Contractor will pay and cause to be paid not less than the prevailing rate of wages as of
the date of the Public Notice, per hour, per day, and per week for and to each and every
worker who maybe employed in and about the performance of the Contract. In
accordance with ORS 279C.838, each worker in each trade or occupation employed in
the performance of the Contract either by Contractor, subcontractor or other person
doing or contracting to do or contracting for the whole or any part of the work on the
Contract shall be paid not less than the applicable state or federal prevailing rate of
wage,whichever is higher. Copies of the current BOLI prevailingwage schedule and
federal wage rate schedule, if applicable, can be found at the following website:
https://www.oregon.gov/boti/WHD/PWR/Pages/pwr_state.aspx. When both federal
and state prevailingwages are required to be included in the contract specifications,
the City shall also include in the specifications information showingwhich prevailing
rate of wage is higher for workers in each trade or occupation in each locality, as
determined by the Commissioner of the Bureau of Labor and Industries under ORS
279C.815 (2)(c).
b. Contractor shall be bound by and shall fully complywith ORS 279C.800 to 279C.870,
Oregon's Prevailing Wage Law. CONTRACTOR AGREES TO BE BOUND BY AND WILL
COMPLY WITH PROVISIONS OF ORS 279C.840. Pursuant to ORS 279C.830(1), the
existing prevailing rate of wage that may be paid to workers in each trade or occupation
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required, in the form of a BOLI document, is included in the contract and bid
documents and made a part hereof by this reference. For public works for which the
contract price is$50,000 or more, all workers shall be paid not less than such specified
minimum hourly rate of wage. [ORS 279C.830(1)]
c. The City of Ashland shall pay the fee to the Commissioner of the Bureau of Labor and
Industries pursuant to the administrative rule of the commissioner and as provided in
ORS 279C.825(1). The fee shall be paid on or before the first progress payment or 60
days from the date work first begins on the Contract, or as otherwise provided by
administrative rule,whichever is the earliest date. The fee is payable to the Bureau of
Labor and Industries Wage and Hour Division Prevailing Wage Unit 800 N.E. Oregon
Street#32 Portland Oregon 97232.
d. Contractor and some subcontractors shall also file with the Construction Contractors
Board a public works bond with a corporate surety authorized to do business in this
state in the amount of$30,000 as required by ORS 279C.836 and shall cause all
subcontractors to do the same prior to starting work on the project. [ORS 279C.830(2)]
The bond must provide that the contractor or subcontractor will pay claims ordered by
the Bureau of Labor and Industries to workers performing labor upon public works
projects.The bond must be a continuing obligation, and the surety's liability for the
aggregate of claims that may be payable from the bond may not exceed the penal sum
of the bond.The bond must remain in effect continuously until depleted by claims paid
under this section, unless the surety sooner cancels the bond. Contractor shall verify
that subcontractors have complied with this requirement prior to permittingthe
subcontractor to start work on the project.
e. If the Contract is for a public work and the Contract price is$50,000 or more,
Contractor shall supply and file, and require every Subcontractor to supply and file,
with the City and with the Wage and Hour Division, Bureau of Labor and Industries
(BOLT), 800 NE Oregon#32, Portland, Oregon 97232 a certified statement in writing that
conforms to the requirements of ORS 279C.845.
18. Hours of Labor/Overtime limitation [ORS 279C.520] [ORS 279C.540] [ORS 279C.545]
Pursuant to ORS 279C.520, no person may be employed for more than 10 hours in any one day,
or 40 hours in any one week, except in cases of necessity, emergency or when the public policy
absolutely requires it, and in such cases, except in cases of contracts for personal services, the
employee shall be paid at least time and a half pay:
a.
1. For all overtime in excess of eight hours in anyone day or 40 hours in any one week
when the workweek is five consecutive days, Monday through Friday; or
2. For all overtime in excess of 10 hours in anyone day or 40 hours in anyone week
when the workweek is four consecutive days, Monday through Friday; and
b. For all work performed on Saturday and on any legal holiday specified in ORS 279C.540.
c. Collective bargaining and negotiated labor agreements may provide exceptions to the
requirements of this section and from ORS 279C.520 and ORS 279C.540.
d. When labor is employed bythe Citythrough another as a contractor, anyworker
employed by the contractor shall be foreclosed from the right to collect for any
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overtime provided in ORS 279C.540 unless a claim for payment is filed with the
contractor within 90 days from the completion of the contract, providing the contractor
has:
1. Caused a circular clearly printed in boldfaced 12-point type font and containing a
copy of this section to be posted in a prominent place alongside the door of the
timekeeper's office or in a similar place that is readily available and freely visible to
workers employed on the work.
2. Maintained the circular continuously posted from the inception to the completion of
the contract on which workers are or have been employed.
e. At or before the commencement of work, the Contractor shall give notice in writing to
employees or by posting, of the number of hours and days per week the employees may
be required to work. [279C.520(2)(5)]
19. Medical Care and Workers Compensation [ORS 279C.530]
a. Pursuant to ORS 279C.530(1), Contractor shall promptly, as due, make payment to any
person, co-partnership, association or corporation furnishing medical, surgical and
hospital care services or other needed care and attention, incident to sickness or injury,
to the employees of the contractor, of all sums that the contractor agrees to pay for the
services and all moneys and sums that the contractor collected or deducted from the
wages of employees under any law, contract or agreement for the purpose of providing
or paying for the services.
b. Pursuant to ORS 279C.530(2),All employers, including Contractor, that employ subject
workers who work under this contract in the State of Oregon shall complywith ORS
656.017 and provide the required Workers Compensation coverage unless such
employers are exempt under ORS 656.126. Contractor shall ensure that each of its
subcontractors complies with these requirements.
20. Retainage
The withholding of retainage by a contractor or subcontractor on public improvement contracts
shall be in accordance with ORS 701.420. [ORS 279C.5551 "Retainage" means the difference
between the amount earned by a contractor on a public improvement contract and the amount
paid on the contract by the City. [ORS 279C.5501 Moneys retained by a contracting agency
under ORS 279C.570(7)shall either be: (a) retained in a fund by the City and paid to the
contractor in accordance with ORS 279C.570; or(b)At the election of the contractor, paid to
the contractor in accordance with the two options below:
• The contractor may deposit bonds, securities, or other instruments with the City or in any
bank or trust company to be held in lieu of the cash retainage for the benefit of the
contracting agency. In such event the City shall reduce the retainage in an amount equal to
the value of the bonds, securities or instruments. and pay the amount of the reduction to
the contractor in accordance with ORS 279C.570. Interest on the bonds or securities shall
accrue to the contractor.{or}
• If the contractor elects,the City shall deposit the retainage, as accumulated, in an interest-
bearing account in a bank, savings bank, trust company or savings association for the
benefit of the City. Earnings on the account shall accrue to the contractor.
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If the contracting agency incurs additional costs as a result of the exercise of the options in
ORS 279C.560(1)or(5),the City may recover such costs from the contractor by reduction of the
final payment.As work on the contract progresses,the contracting agency shall, upon demand,
inform the contractor of all accrued costs. Bonds and securities deposited or acquired in lieu
of retainage, as permitted above, shall be of a character approved by the City Attorney and City
Finance Director, including but not limited to:
a. Bills, certificates, notes or bonds of the United States.
b. Other obligations of the United States or its agencies.
c. Obligations of any corporation wholly owned by the federal government.
d. Indebtedness of the Federal National Mortgage Association.
e. General obligation Bond of the State of Oregon or a political subdivision thereof.
Unless the City finds that accepting a bond or instrument poses an extraordinary risk that is not
typically associated with such bond or instrument,the contractor may deposit a surety bond
for all or any portion of the amount of funds retained, or to be retained, by the City in a form
acceptable to the City.The bond and any proceeds there from shall be made subject to all
claims and liens and in the same manner and priority as set forth for retainage under ORS
279C.550 to 279C.570 and 279C.600 to 279C.625.The City shall reduce the retainage in an
amount equal to the value of the bond and pay the amount of the reduction to the contractor in
accordance with ORS 279C.570.Whenever a City accepts a surety bond from a contractor in
lieu of retainage,the contractor shall accept like bonds from any subcontractor or supplier
from which the contractor has retainage.The contractor shall then reduce the retainage in an
amount equal to the value of the bond and pay the amount of the reduction to the
subcontractor or supplier. [279C.560]
21. Progress Payments
a. Payment for all work under the Contract will be made promptly by the City at the price
or prices bid, and those prices shall include full compensation for all approved
incidental work.
b. Contractor shall make progress estimates of work performed in any calendar month
and submit to the City for approval, before the fifth of the following month, or as
mutually agreed between the Contractor and City. These estimates shall include value
of labor performed and materials incorporated in the work since commencing work
under the Contract. Such estimates need not be made by strict measurements and
may be approximate only and shall be based upon the whole amount of money that will
become due according to terms of the Contract when Project has been completed. The
City may include in payments eighty five percent(85%)of the cost to Contractor of
materials or equipment not yet incorporated in the Work but delivered and suitably
stored at the site, or at some other location agreed upon in writing. Such a payment
shall be conditioned upon submission by the Contractor of bills of sale or such other
documentation satisfactory to the City Attorney to establish the City's title to such
materials or equipment or otherwise protect the City's interest including applicable
insurance and transportation to the site, and a statement from Contractor explaining
why it is necessaryto procure said equipment and/or materials. When such payments
29I
are made,the Contractor warrants and guarantees that the title to all materials and
equipment covered by a progress payment,whether incorporated in the project or not,
will pass to the City upon receipt of such payment by the Contractor, free and clear of
all liens, claims, security interests or encumbrances. Notwithstanding the above,when
the progress estimate indicates that the progress payment would be less than one
thousand dollars ($1,000), no progress payment will be made for that estimate period,
unless approved bythe City.
c. If the Contract price is determined, in whole or in part, on a Lump Sum basis,
Contractor shall prepare an itemized cost breakdown relating thereto and have the City
approve same before commencing work; progress estimates based on said itemized
cost breakdown maybe the basis for progress payments. Upon direction by the City,
Contractor shall provide for revision of the costs breakdown to reflect the true costs of
the work as it progresses.
d. If the Contract price is determined wholly on a unit basis, City may use unit prices bid in
making progress estimates on the work. In case said unit prices do not, in the opinion
of the City, truly represent actual relative costs of different parts of work, a percentage
of the Unit Price may be used in making progress estimate adjustments.
e. If the City receives written notice of any unsettled claims for damage or other costs due
to Contractor's operations including,without limitation, claims from any City
Department or other governmental agency, an amount equal to the claim may be
withheld from the progress payments,final payments or retainage until such claim has
been resolved to the satisfaction of City.
f. Progress payments will be made by City on a monthly basis within thirty(30)days from
sign off by the Contractor of the progress payment or fifteen (15)days after the payment
is approved by City of work performed,whichever is the earlier date. Failure to pay
progress payments within the timeframe set forth above will result in the imposition of
interest as required by ORS 279C.570(2)(3). Defective or improper invoices will be
addressed as set forth in ORS 279C.570(4)(5)(6).
g. Payment will be issued by City for the amount of the approved estimate, less five
percent(5%) retainage. Except as provided in paragraph 19 above and the applicable
ORS Sections noted herein, such amount of retainage shall be withheld and retained by
City until it is included in and paid to Contractor as part of the final payment of the
Contract amount. Upon Substantial Completion of the work under the Contract which
shall be understood to be not less than ninety-seven and one-half percent(97.5%)of
the work,the City may, at its discretion, reduce the retained amount equivalent to not
less than one hundred percent(100%)of the contract value or estimated value or
estimated cost,whichever is greater, of the work remaining to be done. [279C.570(7)]
h. The City may decline to approve an application for payment and may withhold such
approval if, in the City's opinion, and in good faith,the work has not progressed to the
point indicated by the Contractor's submittal. The City may also decline to approve an
application for payment or may reduce said payment or, because of subsequently
discovered evidence or subsequent inspections, City may nullify the whole or any part
of any payment previously made to such extent as may be necessary in their opinion to
protect the City from loss because of: (1)defective work not remedied, (2)third party
claims filed or failure of the Contractor to make payments properly to Subcontractors
for labor, materials or equipment, unless Surety consents to such payment,
(3) reasonable doubt that the work can be completed for the unpaid balance of the
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Contract sum, (4)damage to another contractor's work, (5) reasonable indication that
the work will not be completed within the Contract time, (6) unsatisfactory prosecution
of the work by the Contractor, (7)claims against the Contractor by the City, (8)failure to
submit a construction schedule or failure to keep said construction schedule updated,
or(9)exceeding work limits. When any or all of the criteria set forth above have been
remedied satisfactorily to the City, payment shall be made for amounts withheld
because of them. Withholding of progress payments or partial payments under the
criteria set forth above shall not entitle the Contractor to interest on such withheld
payments or partial payments, except as provided in ORS 279C.570(9).
i. If Contractor fails to complete the Project within the time limit fixed in the Contract or
any extension, no further estimate may be accepted, or progress or other payments
allowed until the Project is completed, unless approved otherwise by City. Progress
estimates are for the sole purpose of determining progress payments and are not to be
relied on for any other purpose. A progress payment is not considered acceptance or
approval of any work or materials or waiver of any defects therein. [ORS 279.570(2)].
22. Final Estimate and Final Payment
a. SUBSTANTIAL COMPLETION. Contractor shall notify the City in writing when all or a
portion of the work is considered substantially complete. If it appears to the City that
the work is not substantially complete, the City shall not make an inspection. The City
may make a general list of majorwork components remaining. If it appears that the
work is substantially complete,the City shall,within fifteen (15)days after receiving
notice, make an inspection and either accept the work or notify Contractor of work yet
to be performed. If accepted, City shall prepare a Certificate of Substantial
Completion, Exhibit F. Upon acceptance of the Certificate of Substantial Completion
by both parties,the City shall be responsible for operation and maintenance of that part
of the work described in the Certificate of Substantial Completion, subject to the
warranty requirements and protection of the work and all other applicable terms of the
contract documents. The date of substantial completion of all the work shall stop the
accrual of liquidated damages, if applicable.
b. FINAL COMPLETION. Contractor shall notify the City in writing when work is 100%
complete. If it appears to the City that the work is not 100%complete,the City shall not
make a final inspection. The City may make a general list of majorwork components
remaining. If it appears that the work is 100%complete, the City shall,within fifteen
(15)days after receiving notice, make a final inspection and either accept the work or
notify Contractor of work yet to be performed on the Contract. A Certificate of Final
Completion shall not be prepared until all provisions of the Contract have been met,
including but not limited to, the submission by the Contractor of a signed Certificate of
Compliance, Exhibit G and executed "Release of Liens and Claims" (Exhibit H).
When the work is 100%complete,the City shall prepare a final pay estimate and Certificate
of Final Completion accepting the work as of a certain date.The Contractor shall execute
and return the final pay estimate and Certificate of Final Completion within five (5)working
days of receipt. Unless otherwise provided as a Special Provision,when City accepts the
Certificate of Final Completion,the date the Contractor signs the Certificate of Final
Completion shall be the date the City accepts Ownership of the work and the start date of
31I
the warranty period.The contractor may substitute a Warranty Bond in replacement of the
Performance and Payment Bonds in accordance with Section 29.The City shall include in
the final pay estimate an addition to the contract amount for any contract deduction from
the contract amount for any liquidated damages and a deduction from the contract price in
a fair and equitable amount for any damages to the City or for any costs incurred or likely to
be incurred by the City due to Contractor's failure to meet any contract provision or
specification other than timely completion.
If the Contractor believes the quantities and amounts specified in the final pay estimate
prepared by the City to be incorrect,Contractor shall submit to the City within five(5)
working days of receipt of the City's final pay estimate, an itemized statement of any and all
claims for additional compensation under the Contract which are based on differences in
measurements or errors of computation.Any such claim not so submitted and supported
by an itemized statementwithin said period is expressly waived and the City shall not be
obligated to paythe same.
The Contractor shall commence any suit or action to collect or enforce the claim or claims
for any additional compensation arising from errors of computation in the final estimate
within a period of one(1)year following the original mailing of the City's final estimate and
Certificate of Final Completion to the Contractor's last known address as shown in the
records of City.The City's issuance of a revised final estimate pursuant to this subsection
does not alter the original final estimate date. If said suit,action or proceeding is not
commenced in said one(1)year period, the final estimate and Certificate of Final
Completion or revised final estimate and Certificate of Final Completion, if revisions are
made, shall be conclusive with respect to the amount earned by the Contractor, and the
Contractor expresslywaives any and all claims for compensation and any and all causes of
suit or action for the enforcement thereof that Contractor might have had.
Upon return of the fully executed Certificate of Final Completion from the Contractor,the
City will submit the Certificate of Final Completion and final estimate to the City for
approval. Upon approval and acceptance by the City, Contractor will be paid a total
payment equal to the amount due under the Contract including retainage within thirty(30)
days in accordance with ORS 279C.570. Failure to paywithin 30 days shall implicate the
interest on final payment/retainage requirements of ORS 279C.570(8).
Monies earned by the Contractor are not due and payable until the procedures set forth in
the contract documents for inspection, approval and acceptance of the work; for
determination of the work done and the amount due therefore;for the preparation of the
final estimate and Certificate of Final Completion and processing the same for payment; for
consideration of the Contractor's claim, or claims, if any; and for the preparing of a revised
final estimate and Certificate of Final Completion and processing same for payment all
have been carried out.
As a prerequisite to final payment, if Contractor is not domiciled in or registered to do
business in the State of Oregon,the Contractorwill provide Citywith evidence that the
requirement of ORS 279A.120(3) has been satisfied.
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If City declares a default of the Contract, and Surety completes said Contract, all payments
made after declaration of default and all retainage held by City shall be paid to Surety and
not to Contractor in accordance with the terms of the Contract.
Acceptance by Contractor of final payment shall release Cityfrom any and all claims by
Contractor whether known or unknown, arising out of and relating to the work. No payment,
however, final or otherwise, shall operate to release Contractor or its Sureties from
warranties or other obligations required in the performance of the Contract.
Disputes as to compensation resolved in favor of the contractor implicate the interest
provisions of ORS 279.570(9).
23. Change Orders/ Extra Work
The Contractor agrees to complete this Contract in accordance with the attached
specifications and requirements, including any change orders. A change order submitted by
the City must be agreed upon by the Contractor and the City, and in the event of failure to so
agree, the City may then proceed with any additional work in any manner the City may choose.
A decision by the City to proceed to have work done by another party shall in no way relieve
either the Contractor or City of this Contract and neither will such action be cause for
collection of damages by either party to the contract, one from the other. Onlythe City
designated Contracting Officer or individual with delegated contracting authority can authorize
extra (and/or changed)work and compensation. Such authorization must be in writing.The
parties expressly recognize that, except when such order is in writing by an individual with
delegated authority, City personnel are not authorized to order extra (and/or)changed work or
to waive contract requirements or authorize additional compensation. Failure of the
Contractor to secure City authorization for extra work shall constitute a waiver of any and all
claims or rights to adjustment in the contract price or contract time due to such unauthorized
extra work and thereafter Contractor shall be entitled to no compensation whatsoever for the
performance of such work. Contractor further exp ressly wa ives any and all right or remedy by
way of restitution and quantum meruit for any and all extra work performed by Contractor
without express and prior authorization of the City.
24. Contractor/Subcontractor Payment Obligations
a. The Contractor is required to include in each subcontract for property or services
entered into by the Contractor and a first-tier subcontractor, including a material
supplier, for the purpose of performing this contract:
i. A payment clause that obligates the Contractor to pay the first-tier subcontractor
for satisfactory performance under its subcontract within 10 days out of such
amounts as are paid to the Contractor by the City under such contract,
[279C.580(3)(a)] and
ii. An interest penalty clause that obligates the Contractor, if payment is not made
within 30 days after receipt of payment from the City,to pay to the first-tier
subcontractor an interest penalty on amounts due in the case of each payment not
made in accordance with the payment clause included in the subcontract pursuant
to paragraph (a)(i)above. A contractor or first-tier subcontractor shall not be
obligated to pay an interest penalty if the only reason that the contractor or first-tier
33I
subcontractor did not make payment when payment was due is that the contractor
or first-tier subcontractor did not receive payment from the City or contra ctorwhen
payment was due. The interest penalty shall be:
A. For the period beginning on the day after the required payment date and
ending on the date on which payment of the amount is due made; and
B. Computed at the rate specified in ORS 279C.515(2). [279C.580(3)(b)]
b. The Contractor is further required to include in each of its subcontracts,for the purpose
of performance of such contract condition, a provision requiring the first-tier
subcontractor to include a payment clause and an interest penalty clause conforming
to the standards of section a. above in each of its subcontracts and to require each of
its subcontractors to include such clauses in their subcontracts with each lower-tier
subcontractor or supplier. [279C.580(4)]
c. The Contractor shall not request payment of any amount withheld or retained in
accordance with ORS 279C.580(5) until such time as the Contractor has determined
and certified to the City that the subcontractor is entitled to the payment of such
amount. [279C.570(1)].
d. A dispute between the Contractor and a subcontractor relating to the amount or
entitlement of a subcontractor to a payment or a late payment interest penalty under a
clause included in the subcontract pursuant to subsections(3)and (4)of ORS
279C.580 does not constitute a dispute to which the City is a party. The City shall not
be included as a party in any administrative orjudicial proceeding involving such a
dispute. [279C.580(2)]
e. The Contractor shall make payment promptly, as due, to all persons supplying to the
Contractor labor or material for the performance of the work provided for in the
contract. [ORS 279C.505(1)(a)]The Contractor shall pay all contributions or amounts
due the Industrial Accident Fund and the State Unemployment Compensation Fund
from the Contractor or Subcontractor incurred in the performance of the contract. [ORS
279C.505(1)(b)]The Contractor shall not permit any claim or lien to be filed or
prosecuted against the City and shall be fully responsible for any lien or claim filed
against the City on account of any labor or material furnished. [ORS 279C.505(1)(c)]
The Contractor shall pay to the Department of Revenue all sums withheld from
employees pursuant to ORS 316.167. [ORS 279C.505(1)(d)]
f. Pursuant to ORS 279C.515(1), if Contractor fails, neglects or refuses to make prompt
payment of any claim for labor or services furnished to the Contractor or a
subcontractor by any person in connection with the Contract as such claim becomes
due,the properofficer(s) representing the City may pay the claim and charge the
amount of the payment against funds due or to become due Contractor under this
Contract.
g. Pursuant to ORS 279C.515(2), if the Contractor or a first-tier subcontractor fails,
neglects or refuses to make payment to a person furnishing labor or materials in
connection with the public improvement contract within 30 days after receipt of
payment from the contracting agency or a contractor, the contractor or first-tier
subcontractor shall owe the person the amount due plus interest charges commencing
at the end of the 10-day period that payment is due under ORS 279C.580 (4)and ending
upon final payment, unless payment is subject to a good faith dispute as defined in ORS
279C.580.The rate of interest charged to the contractor or first-tier subcontractor on
34I
the amount due shall equal three times the discount rate on 90-day commercial paper
in effect at the Federal Reserve Bank in the Federal Reserve district that includes
Oregon on the date that is 30 days after the date when payment was received from the
contracting agency or from the contractor, but the rate of interest may not exceed 30
percent.The amount of interest may not be waived.
h. Pursuant to ORS 279C.515(3), if the Contractor or a subcontractor fails, neglects or
refuses to make payment to a person furnishing labor or materials in connection with
the public improvement contract,the person may file a complaint with the
Construction Contractors Board, unless payment is subject to a good faith dispute as
defined in ORS 279C.580.
i. Pursuant to ORS 279C.515(4), the payment of a claim in the manner authorized in this
section does not relieve the contractor or the contractor's surety from obligation with
respect to any unpaid claims.
j. Living Wage Rates: If the amount of this contract is$18,703 or more, and Contractor is
not paying prevailing wage for the work, Contractor must comply with Chapter 3.12 of
the Ashland Municipal Code by paying a living wage, as defined in this chapter, to all
employees performing work under this contract and to any subcontractor who performs
50%or more of the work under this contract. Contractor must post the attached Living
Wage Notice predominantly in areas where it will be seen by all employees.
25. Inspection and Acceptance
Inspection and acceptance of all work required under this contract shall be performed by the
City. The Contractor shall be advised of the acceptance or of any deficiencies in the
deliverable items.
26. Liquidated Damages
City and Contractor recognize that time is of the essence of this Contract and that Citywill
suffer substantial financial loss if the project work is not completed within the timeframe
specified in Section (1)of the Public Improvement Contract. City and Contractor also
recognize the delays, expense, and difficulties involved in proving in a legal or other dispute
resolution preceding the actual loss suffered by City if the project work is not completed on
time. Accordingly, instead of requiring any such proof, City and Contractor agree that as
liquidated damages for delay(but not as a penalty)the Contractor shall pay the City a dollar
amount per day based on calculations set forth in the Oregon Standard Specifications for
Construction and the Special Provisions for this project,for each and every daythat elapses in
excess of the contract time or the final adjusted contract time. This amount is a genuine pre-
estimation of the damages expected because of a delay in the completion of this project.
Any sums due as liquidated damages shall be deducted from any money due or which may
become due to the Contractor under this Contract. Payment of liquidated damages shall not
release the Contractor from obligations in respect to the fulfillment of the entire contract, nor
shall the payment of such liquidated damages constitute a waiver of the City's right to collect
any additional damages which may be sustained by failure of the Contractor to complete the
work on time. Permitting the Contractor to continue and finish the project work or any part
thereof after the contract time, or adjusted contract time, has expired shall in no way operate
as a waiver on the part of the City or any of its rights under this contract. The City may in its
35I
discretion grant the Contractor an extension of time upon a showing made by the Contractor
that the work has been unavoidably delayed by conditions beyond the control of the parties.
Notwithstanding the above,the Contractor further agrees to pay liquidated damages according
to the following hourly rates for the unscheduled employment of the Engineer necessitated by
the Contractor:
a. Working more than nine (9) hours per day, more than five(5)days per week and
Saturdays (time and one-half), and holidays, and Sundays(double time).
b. Furnishing materials or equipment not in conformance with Contract Documents
necessitating redesign by the Engineer.
c. Working beyond the time of completion established in the Notice to Proceed with
Construction.
d. Engineering budget will be analyzed at the end of the project to determine whether
any unscheduled employment of the Engineer, during the scheduled contract time,
resulted in a cost savings to the Owner. If,as a result of working more than nine
hours per day,five days per week,the Contractor completes the project within the
scheduled time, and if the overtime results in a reduced contract time and cost
savings to the Owner, no liquidated damages will be assessed for the unscheduled
employment of the Engineer during the scheduled contract time. Liquidated
damages will be assessed as stipulated for each day the work remains
uncompleted beyond the scheduled contract time
Time and One- Double Time
Expense Type Straight Time Sundays and
Half Mon.-Sat.
Holidays
Project Manager $225.00/Hr. $225.00/Hr. $225.00/Hr.
Resident Project $152.00/Hr. $228.00/Hr. $304.00/Hr.
Rep.
EIT III $150.00/H r. $225.00/Hr. $300.00/H r.
Out of Pocket
Cost material,
equipment, At Cost+10% At Cost+10% At Cost+10%
supplies,
transportation,
subsistence
27. Liability, Indemnity and Hold Harmless
Contractor warrants that all its work will be performed in accordance with generally accepted
practices and standards as well as the requirements of applicable federal, state, and local
laws, it being understood that acceptance of Contractor's work by City shall not operate as a
waiver or release. The Contractor shall hold harmless, indemnify, and defend City, its officers,
36I
agents, and employees from any and all liability, actions, claims, losses, damages or other
costs of whatsoever nature, including attorney's fees and witness costs (at both trial and
appeal level,whether or not a trial or appeal ever takes place)that may be asserted by any
person or entity arising from, during or in connection with the performance of the work, actions
or failure to perform actions, and other activities of Contractor or its officers, employees,
subcontractors or agents, under this contract, including the professional negligent acts, errors,
or omissions of Contractor or its officers, employees, subcontractors, or agents except liability
arising out of the sole gross negligence of the City and its employees. The Contractor shall
assume all responsibility for the work and shall bear all losses and damages directly or
indirectly resulting to the Contractor,to the City, and to their officers, agents, and employees
on account of(a)the character or performance of the work, (b)unforeseen difficulties, (c)
accidents, or(d)any other cause whatsoever.The Contractor shall assume this responsibility
even if(a)fault is the basis of the claim, and (b)any act, omission or conduct of the City
connected with the Contract is a condition or contributory cause of the claim, loss, damage or
injury. Contractor waives any and all statutory or common law rights of defense and
indemnification by the City. Such indemnification shall also cover claims brought against City
under state or federal workers compensation laws. Contractor shall also defend and indemnify
City from all loss or damage that may result from Contractor's wrongful or unauthorized use of
any patented article or process. If any aspect of this indemnity shall be found to be illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the
remainder of this indemnification. Any specific duty or liability imposed or assumed by the
Contractor as may be otherwise set forth in the Contract documents shall not be construed as
a limitation or restriction of the general liability or duty imposed upon the Contractor by this
section. In the event any such action or claim is brought against the City,the Contractor shall,
if the City so elects and upon tender by the City, defend the same at the Contractor's sole cost
and expense, promptly satisfy any judgment adverse to the City or to the City and the
Contractor jointly, and reimburse the City for any loss, cost, damage, or expense, including
attorney fees,suffered or incurred by the City.
28. Insurance
The Contractor shall provide and maintain during the life of this Contract the insurance
coverage as described in Exhibit C. All costs for such insurance shall be borne by the
Contractor and shall be included in the contract price. In case of the breach of any provision of
this section,the City may elect to take out and maintain at the expense of the Contractor such
insurance as the City may deem proper. The City may deduct the cost of such insurance from
any monies that maybe due or become due the Contractor under this Contract. Failure to
maintain insurance as provided is also cause for immediate termination of the Contract.
Contractor shall furnish City certificates of insurance acceptable to City prior to execution by
the City and before Contractor or any subcontractor commences work under this Contract.
The certificate shall showthe name of the insurance carrier, coverage, type, amount(or limits),
policy numbers, effective and expiration dates and a description of operations covered. The
certificate will include the deductible or retention level and required endorsements. Insuring
companies or entities are subject to City's acceptance. If requested, copies of insurance
policies shall be provided to the City. Contractor shall be responsible for all deductibles, self-
insured retention's, and/or self-insurance.Approval of the insurance shall not relieve or
decrease the liability of the Contractor hereunder.
29. Performance, Payment and Warranty Bonds/Notice of Bond Claims
37I
At the time of execution of the Contract,the Contractor shall furnish: (1) Performance Bond
and (2) Payment Bond written by a corporate surety or other financial assurance in an amount
equal to the amount of the Contract based upon the estimate of quantities or lump sum as set
forth in the Contract and in accordance with ORS 279.380. The bonds shall be continuous in
effect and shall remain in full force and effect until compliance with and fulfillment of all terms
and provisions of the Contract, including the obligations of Sections 27 and 30, all applicable
laws and the prompt payment of all persons supplying labor and/or material for prosecution of
the work.The bond(s)or other financial assurance is subject to approval by the City.
Contractor shall furnish a separate warranty bond written by a corporate surety or other
financial assurance, in an amount equal to 10%of the final amount of the contract. The City
may permit the warranty amount to be included in the initial performance and payment bonds.
The warranty bond or other financial assurance shall be in effect for a period of one year from
the date of Final Completion. The City may require a separate warranty bond or financial
assurance for any repairs done pursuant to the warranty obligation. Such separate warranty
bond or financial assurance shall be for a period of one year from the date of completion of
such repairs.
The notice of claim on a bond required by ORS 279C.600 must be sent by registered or certified
mail or hand delivered no later than 120 days after the day the person last provided labor or
furnished materials or 120 days after the worker listed in the notice of claim by the
Commissioner of the Bureau of Labor and Industries last provided labor.The notice may be
sent or delivered to the contractor at any place the contractor maintains an office or conducts
business or at the residence of the contractor. Notwithstanding the above, if the claim is for a
required contribution to a fund of any employee benefit plan, the notice required by ORS
279C.600 must be sent or delivered within 150 days after the employee last provided labor or
materials.
The notice of claim must be in writing substantially as set forth in ORS 279C.605(3)-(5).
30. One-Year Warranty
In addition to and not in lieu of any other warranties required under the Contract, Contractor
shall make all necessary repairs and replacements to remedy, in a manner satisfactory to the
City and at no cost to the City, any and all defects, breaks, or failures of the work occurring
within one year following the date of completion due to faulty or inadequate materials or
workmanship. Repair damage or disturbances to other improvements under,within, or
adjacent to the work,whether or not caused by settling,washing, or slipping,when such
damage or disturbance is caused, in whole or in part,from activities of the Contractor in
performing its duties and obligations under this Contract when such defects or damage occur
within the warranty period. The one-year warranty period shall,with relation to such required
repair, be extended one year from the date of completion of such repair.
If Contractor, after written notice, fails within ten days to proceed to complywith the terms of
this section, City may have the defects corrected, and the Contractor and Contractor's surety
shall be liable for all expense incurred. In case of an emergency where, in the opinion of the
City, delay would cause serious loss or damage, repairs maybe made without notice being
given to Contractor and Contractor or Surety shall pay the cost of repairs. Failure of the City to
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act in case of an emergency shall not relieve Contractor or Surety from liability and payment of
all such costs.
31. Nondiscrimination in Labor
No person shall be subject to discrimination in the receipt of the benefits of any services or
activities made possible by or resulting from this Agreement on the grounds of sex, race, color,
creed, marital status, age, sexual orientation or national origin. Contractor shall complywith
provisions of Owner's Equal Opportunity Policy and complywith ORS Chapter 659 and ORS
Chapter 659A relating to unlawful employment practices and discrimination by employers
against any employee or applicant for employment because of race, religion, color, sex,
national origin, marital status or age if the individual is 18 years of age or older. Particular
reference is made to ORS 659A.030,which states that it is unlawful employment practice for
any employer, because of the race, religion, color, sex, national origin, marital status or age if
the individual is 18 years or older or because of the race, religion, color, sex, national origin or
age of any other person with whom the individual associates, or because of a juvenile record
that has been expunged pursuant to ORS 419A.260 and ORS 419A.262 of any individual, or to
refuse to hire or employ or to bar or discharge from employment such individual or to
discriminate against such individual in compensation or in terms, conditions or privileges of
employment. Any violation of this provision shall be considered a material violation of the
Agreement and shall be grounds for cancellation,termination, or suspension in whole or in part
(q)•
32. Construction Debris and Yard Waste
Contractor shall salvage or recycle construction and demolition debris, if feasible and cost
effective. If the contract includes lawn and landscaping maintenance, Contractor shall
compost or mulch yard waste material at an approved site, if feasible and cost effective. [ORS
279C.510(1)&(2)]
33. Environmental Regulations
Pursuant to ORS 279C.525(1), the following is a list of federal, state and local agencies which
have enacted ordinances or regulations dealingwith the prevention of environmental pollution
and the preservation of natural resources that may affect the performance of the contract.
Federal Agencies:
Agriculture, Department of
Forest Service
Soil Conservation Service
Commerce Department of
National Oceanic and Atmospheric Administration (NOAA)
National Marine Fisheries Service (NMFS)
Defense, Department of
Army Corps of Engineers
Energy, Department of
Federal Energy Regulatory Commission
Environmental Protection Agency
Health and Human Services Department of
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Housing and Urban Development,
Solar Energy and Energy Conservation Bank
Interior, Department of
Bureau of Land Management
Bureau of Indian Affairs
Bureau of Mines
Bureau of Reclamation
Geological Survey
Minerals Management Service
U.S. Fish and Wildlife Service
Labor, Department of
Mine Safety and Health Administration
Occupational Safety and Health Administration
Transportation, Department of
Coast Guard
Federal Highway Administration
Water Resources Council
State Agencies:
Administrative Services, Department of
Agriculture, Department of
Consumer&Business Services, Department of
Oregon Occupational Safety&Health Division
Energy, Department of
Environmental Quality, Department of
Fish and Wildlife, Department of
Forestry, Department of
Geology and Mineral Industries, Department of
Human Resources, Department of
Land Conservation and Development Commission
Parks and Recreation, Department of
Soil and Water Conservation Commission
State Engineer
State Land Board (Lands, Division of State)
Water Resources Department
Local Agencies:
City of Ashland
City Council(Ashland Municipal Code)
County Courts
County Commissioners of Jackson County,
County Service Districts
Sanitary Districts
Water Districts
Fire Protection Districts
Historical Preservation Commissions
Planning Commission
40
If the Contractor awarded the project is delayed or must undertake additional work by reason of
existing ordinances, rules or regulations of agencies not cited above or due to the enactment of
new or the amendment of existing statutes, ordinances, rules or regulations relating to the
prevention of environmental pollution and the preservation of natural resources occurring after
the submission of the successful bid, the City may:
(a) Terminate the contract;
(b) Complete the work itself;
(c) Use non-City forces already under contract with the City;
(d) Require that the underlying property owner be responsible for cleanup;
(e) Solicit bids for a new contractor to provide the necessary services; or
(f) Issue the contractor a change order setting forth the additional work that must be
undertaken.
The solicitation documents make specific reference to known conditions at the construction
site that may require the successful bidder to complywith the ordinances, rules or regulations
identified above. If Contractor encounters a condition not referred to in the solicitation
documents, not caused by the successful bidder and not discoverable by reasonable pre-bid
visual site inspection, and the condition requires compliance with the ordinances, rules or
regulations enacted by the governmental entities identified above,the successful bidder shall
immediately give notice of the condition to the contracting agency. Except in the case of an
emergency and except as may otherwise be required by any environmental or natural resource
ordinance, rule or regulation, the Contractor shall not commence work nor incur any additional
job site costs in regard to the condition encountered and described in subsection (3)of this
section without written direction from the contracting agency. Upon request by the City,the
Contractor shall estimate the emergency or regulatory compliance costs as well as the
anticipated delay and costs resulting from the encountered condition.This cost estimate shall
be promptly delivered to the contracting agency for resolution.Within a reasonable period of
time following delivery of an estimate of this section,the City may:
(a) Terminate the contract;
(b) Complete the work itself;
(c) Use non-City forces already under contract with the City;
(d) Require that the underlying property owner be responsible for cleanup;
(e) Solicit bids for a new contractor to provide the necessary services; or
(f) Issue the contractor a change order setting forth the additional work that must be
undertaken.
If the City chooses to terminate the contract under either subsection (a)of this section,the
Contractor shall be entitled to all costs and expenses incurred to the date of termination,
including overhead and reasonable profits, on the percentage of the work completed.The City
shall have access to the contractor's bid documents when making the contracting agency's
determination of the additional compensation due to the contractor. If the contracting agency
causes work to be done by another contractor under either subsection (c)or(e)above, the
initial contractor may not be held liable for actions or omissions of the other contractor. The
41I
change order under either subsection (f)of this section shall include the appropriate extension
of contract time and compensate the contractor for all additional costs, including overhead
and reasonable profits, reasonably incurred as a result of complying with the applicable
statutes, ordinances, rules or regulations.The City shall have access to the contractor's bid
documents when making the contracting agency's determination of the additional
compensation due to the contractor.
Notwithstanding the above,the City has allocated all or a portion of the known environmental
and natural resource risks to a Contractor by listing such environmental and natural resource
risks in the solicitation documents.
34. Waiver
The failure of the City to enforce any provision of this contract shall not constitute a waiver by
the City of that or any other provision. City shall not be precluded or estopped by any
measurement, estimate or certificate made either before or after completion and acceptance
of work or payment therefore,from showing the true amount and character of work performed
and materials furnished by the Contractor, or from showing that any such measurement,
estimate or certificate is untrue or incorrectly made, or that work or materials do not conform in
fact to the Contract. City shall not be precluded or estopped, notwithstanding any such
measurement, estimate or certificate, or payment in accordance therewith,from recovering
from the Contractor and their Sureties such damages as it may sustain by reason of their failure
to comply with terms of the Contract, or from enforcing compliance with the Contract. Neither
acceptance by City, or by any representative or agent of the City, of the whole or any part of the
work, nor any extension of time, nor any possession taken by City, nor any payment for all or
any part of the project, shall operate as a waiver of any portion of the Contract or of any power
herein reserved, or any right to damages herein provided. Awaiver of any breach of the
Contract shall not be held to be a waiver of any other breach.
35. Errors
The Contractor shall perform such additional work as may be necessary to correct errors in the
work required under this Contract without undue delays and without additional cost.
36. Severability
If any term or provision of this contract is declared by a court of competent jurisdiction to be
illegal or in conflict with any law,the validity of the remaining terms and provisions shall not be
affected, and the rights and obligations of the parties shall be construed and enforced as if the
contract did not contain the particular term or provision held invalid.
37. Attorney's Fees
If a suit or action is filed to enforce any of the terms of this contract, the prevailing party shall be
entitled to recover from the other party, in addition to costs and disbursements provided by
statute, any sum which a court, including any appellate court, may adjudge reasonable as
attorney's fees.
38. Business License
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The Contractor shall obtain a City of Ashland business license as required by City ordinance
prior to beginning work under this Contract. The Contractor shall provide a business license
number in the space provided in this contract.
39. Notices/Bills/Payments
All notices, bills, and payments shall be made in writing and may be given by personal delivery
or by mail. Notices, bills, and payments sent by mail should be addressed as follows:
City of Ashland
Chance Metcalf, Project Manager
Public Works/Street Department
51 Winburn Way
Ashland, OR 97520
and when so addressed, shall be deemed given upon deposit in the United States Mail, postage
prepaid. In all other instances, notices, bills, and payments shall be deemed given at the time
of actual delivery. Changes may be made in the names and addresses of the person to whom
notices, bills, and payments are to be given by giving notice pursuant to this paragraph.
40. Conflict of Interest
Contractor covenants that it presently has no interest and shall not acquire any interest, direct
or indirect,which would conflict in any manner or degree with the performance of its services.
The Contractor further covenants that in the performance of this contract no person having any
such interest shall be employed.
41. Merger Clause
THIS CONTRACTAND ATTACHED EXHIBITS CONSTITUTE THE ENTIRE AGREEMENT BETWEEN
THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS
CONTRACT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES.
SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY
IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO
UNDERSTANDINGS,AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT
SPECIFIED HEREIN REGARDING THIS CONTRACT. BY ITS SIGNATURE, CONTRACTOR
ACKNOWLEDGES IT HAS READ AND UNDERSTANDS THIS CONTRACT,AND AGREES TO BE
BOUND BY ITS TERMS AND CONDITIONS.
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ATTACHMENTS: EXHIBITS B-P
EXHIBIT B COMPLIANCE WITH APPLICABLE PUBLIC CONTRACT LAW
EXHIBIT C INSURANCE REQUIREMENTS
EXHIBIT D INDEPENDENT CONTRACTOR CERTIFICATION
EXHIBIT E BONDS(BID, PAYMENT AND PERFORMANCE)
EXHIBIT F CERTIFICATE OF SUBSTANTIAL COMPLETION
EXHIBIT G CERTIFICATE OF COMPLIANCE
EXHIBIT H RELEASE OF LIENS AND CLAIMS
EXHIBIT I CERTIFICATE OF FINALCOMPLETION
EXHIBITJ INSTRUCTIONS TO BIDDERS
EXHIBIT K LETTER OF INTENT
EXHIBIT L RESTRICTION ON FEDERAL PUBLIC WORDS PROJECTS
EXHI BIT M BUYAMERICAN PREFERENCE
EXHIBIT N CERTIFICATION OF OFFERER/BIDDER REGARDING TAX DELINQUENCYAND
FELONY CONVICTIONS
EXHIBIT O BIDDERS LIST
EXHIBIT P FIRST-TIER SUBCONTRACTOR DISCLOSURE FORM
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EXHIBIT B
COMPLIANCE WITH APPLICABLE LAW
PUBLIC IMPROVEMENT CONTRACT
This exhibit contains the requirements for public contracting as set forth in ORS 279C.360 through
and including ORS 279C.800 and is available through the city Engineering Office at 51 Winburn Way,
Ashland, Oregon or online atwww.leg.state.or.us/ors
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EXHIBIT C
PUBLIC IMPROVEMENT CONTRACT INSURANCE REQUIREMENTS
To: Insurance Agent. Please provide Certificates of Insurance to the Project Manager. During the term
of the contract,please provide Certificates of Insurance priorto each renewal. Insurance shall be without
prejudice to coverage otherwise existing. During the term of this contract, Contractor shall maintain in
force at its own expense all insurance noted below:
Workers Compensation insurance in compliance with ORS 656.017. All employers, including
Contractor and any subcontractors, that employ subject workers who work under this Contract in the
State of Oregon shall comply with ORS 656.017 and provide the required Workers' Compensation
coverage, unless such employers are exempt under ORS 656.126. Contractor shall ensure that each of
its subcontractors complies with these requirements.
Commercial General Liability insurance on an occurrence basis,with a combined single limit of not less
than ❑ $1,000,000 or® $2,000,000 for each occurrence of bodily injury, personal injury and property
damage. It shall include coverage for broad form contractual liability; broad form property damage;
personal and advertising injury; owners and contractor protective; premises/operations; and
products/completed operations. Coverage shall not exclude excavation, collapse, underground, or
explosion hazards. Aggregate limits shall apply on a per-project basis.
® Required by City ❑ Not required by City
Commercial Automobile Liability insurance with a combined single limit, or the equivalent of not less
than ❑$1,000,000 or®$2,000,000 for each accident for Bodily Injury and Property Damage, including
coverage for owned, hired and non-owned vehicles. "Symbol One"coverage shall be designated.
® Required by City ❑ Not required by City
❑ Builders Risk(Check here if required) insurance during construction to the extent of 100 percent of
the value of the work for the benefit of the parties to the Contract as their interest may appear. Coverage
shall also include:(1)formwork in place;(2)form lumber on site;(3)temporary structures;(4)equipment;
and (5)supplies related to the work while at the site.
Notice of Cancellation or Change. There shall be no cancellation, material change, reduction of limits
or intent not to renew the insurance coverage(s)without 30 days written notice from the Contractor or its
insurer(s)to the City. This notice provision shall be by endorsement physically attached to the certificate
of insurance.
Additional Insured. For general liability insurance and automobile liability insurance the City, and its
agents, officers, and employees will be Additional Insureds, but only with respect to Contractor's
services to be provided under this contract. This coverage shall be by endorsement physically attached
to the certificate of insurance.
The Contractor shall defend, indemnify, and hold harmless, the City and the City's officers, agents, and
employees against any liability that may be imposed upon them by reason of the Contractor's or
subcontractor's failure to provide workers'compensation and employers liability coverage.
Certificates of Insurance. Contractor shall furnish insurance certificates acceptable to City prior to
commencing work. The certificate will include the deductible or retention level and required
46I
endorsements. Insuring companies or entities are subject to City approval. If requested, copies of
insurance policies shall be provided to the City. Contractor shall be responsible for all deductibles,self-
insured retention's,and/or self-insurance.
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EXHIBIT D
CI✓RT FATI_QN
OR INDEPENDENT CONTRACTOR
A. CONTRACTOR IS A CORPORATION
CORPORATION CERTIFICATION: I am authorized to act on behalf of the entity named below and
certify under penalty of perjury that it is a corporation.
LTM,Inc.dba Knife River Materials
Entity Sign t e Date
B. CONTRACTOR IS INDEPENDENT.
Independent Contractor Standards. As used in various provisions of ORS Chapters including but
not limited to 316,656, 657,and 701,an individual or business entity that performs labor or services
for remuneration shall be considered to perform the labor or services as an "independent
contractor" if the standards of ORS 670.600 are met.
Contractor and Project Manager certifies that the Contractor meets the following standards:
1. Contractor is free from direction and control over the means and manner of providing the labor or }
services, subject only to the specifications of the desired results.
2. Contractor is responsible for obtaining all assumed business registrations or professional
occupation licenses required by state law or local ordinances.
3. Contractor furnishes the tools or equipment necessary for the contracted labor or services.
4. Contractor has the authority to hire and fire employees to perform the labor or services.
5. Payment to the Contractor is made upon completion of the performance or is made on the
basis of a periodic retainer.
6. Contractor is registered under ORS chapter 701 if the Contractor provides labor or services for
which such registration is required.
7.Contractor has filed federal and state income tax returns in the name of the business or a business
Schedule C as part of the personal income tax return,for the previous year, for labor or services
performed as an independent contractor in the previous year.
8.Contractor representtothe publicthatthe labororservices are to be provided byan independently
established business as four or more of the following circumstances exist.
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(Check four or more of the following:)
A. The labor or services are primarily carried out at a location that is separate from
Contractors residence or is primarily carried out in a specific portion of Contractors
residence,which is set aside as the location of the business.
B. Commercial advertising or business cards are purchased for the business, or
Contractor has a trade association membership.
C. Telephone listing is used for the business that is separate from the personal residence
listing.
D. Labor or services are performed only pursuant to written contracts.
E. Labor or services are performed for two or more different persons within a period of
one year.
F. Contractor assumes financial responsibility for defective workmanship or for service
not provided as evidenced by the ownership of performance bonds, warranties, errors
and omission insurance or liability insurance relating to the labor or services to be
provided.
If any action is taken by a person or enforcement agency relating to Contractor's
independent contractor status in connection with this contract, Contractor shall defend,
hold harmless and indemnify the CITY of ASHLAND, its elected and appointed officials,
employees,volunteers and agents from any such action,claim,judgment,fine, penalty,or
order to pay. Contractor shall pay any additional costs incurred by the City in defending
such action or incurred as a result of such action. This indemnification is in addition to any
indemnification otherwise in this agreement.
Contractor Signature Date
Project Manager Signature Date
49
EXHIBIT E
BONDS
CITY OF ASHLAND
STANDARD PUBLIC IMPROVEMENT CONTRACT
BID BOND
We, , a corporation or partnership duly
organized under the laws of the State of , and authorized to transact business in the
State of Oregon, as "PRINCIPAL," and,
We, a corporation or partnership duly
organized under the laws of the State of , and authorized to transact business in the
State of Oregon, as "SURETY,"
hereby jointly and severally bind ourselves, our respective heirs, executors, administrators,
successors and assigns firmly bythese presents to pay unto the City of Ashland, Oregon, (OBLIGEE)
the sum of($ )
Dollars.
The condition of the obligation of this bond, is that the PRINCIPAL herein has in response to City's
Notice to Contractors and Invitation to Bid, submitted its Offer for the ASHLAND MUNUCIPAL
AIRPORT— RUNWAY AND TAXILANE REHABILITATION PROJECT No. 2024-03 , which Offer is
incorporated herein and made a part hereof bythis reference, and Principal is required to furnish bid
security in an amount equal to ten (10%) percent of the total amount of the bid pursuant to ORS
279C.365 and the City's public contracting rules and contract documents.
NOW THEREFORE, if the Offer, submitted by PRINCIPAL, is accepted, and if the Contract pursuant
to the Offer is awarded to the PRINCIPAL,and if the PRINCIPAL executes such contract and furnishes
such good and sufficient Performance and Payment Bonds as required by the Bidding and Contract
documents within the time specified and fixed by the Documents, then this obligation shall be void;
otherwise it shall remain in full force and effect. If the PRINCIPAL shall fail to execute the proposed
Contract and to furnish the Performance and Payment Bonds, the SURETY hereby agrees to pay the
OBLIGEE the surety bond sum as liquidated damages within ten (10)days of such failure.
IN WITNESS WHEREOF, we have caused this instrument to be executed and sealed by our duly
authorized legal representatives this _day of , 20 .
50
Surety Principal
Address Address
By: By:
Attorney-in-Fact
[A certified copy of the Agent's Power of Attorney must be attached hereto.]
IMPORTANT—Surety companies executing BONDS must appear on the Treasury Department's
most current list(Circular 570 as amended)and be authorized to transact business in the State of
Oregon.
51IPage
PERFORMANCE BOND
The undersigned , as principal, further referred to in this bond as
Contractor, and , as surety, further referred to in this bond as Surety,
are jointly and severally bound unto City of Ashland, as obligee, further referred to in this bond as
City, in the sum of
Dollars ($
Contractor and City have entered into a written contract dated ,for the
following project: ASHLAND MUNUCIPAL AIRPORT—RUNWAYAND TAXILANE REHABILITATION
PROJECT No. 2024-03. This contract is further referred to in this bond as the Contract and is
incorporated into this bond by this reference.
The conditions of this bond are:
1. If Contractor faithfully performs the Contract in accordance with the plans,
specifications and conditions of the contract within the time prescribed by the
Contract,as required byORS 279C.380 through 279C.385,then this obligation is null
and void; otherwise it shall remain in full force and effect.
2. If Contractor is declared by City to be in default under the Contract, the Surety shall
promptly remedy the default, perform all of Contractor's obligations under the
contract in accordance with its terms and conditions and payto City all damages that
are due under the Contract.
3. This bond is subject to claims under ORS 279C.380 through 279C.390.
4. This obligation jointly and severally binds Contractor and Surety and their respective
heirs, executors, administrators, successors.
5. Surety waives notice of modification of the Contract or extension of the Contract
time.
6. Nonpayment of the bond premium shall not invalidate this bond.
7. The bond number and the name, address, and telephone number of the agent
authorized to receive notices concerning this bond are as follows.
Bond Number:
Bond Agent:
Address:
Telephone:
52
SIGNED this dayof 20 .
PERFORMANCE BOND Page 2
WITNESS: CONTRACTOR:
By:
(Corporate Seal) Title:
Legal Address:
Attest:
Corporate Secretary
WITNESS:
SURETY:
By:
(Corporate Seal)
Title:
Legal Address:
Attest:
Corporate Secretary
53
PAYMENT BOND
The undersigned , as principal, further referred to in this bond as
Contractor, and , as surety, further referred to in this bond as Surety,
are jointly and severally bound unto City of Ashland, as obligee, further referred to in this bond as
City, in the sum of
Dollars ($
Contractor and City have entered into a written contract dated ,for the
following project: ASHLAND MUNUCIPAL AIRPORT—RUNWAYAND TAXILANE REHABILITATION
PROJECT No. 2024-03. This contract is further referred to in this bond as the Contract and is
incorporated into this bond by this reference.
The conditions of this bond are:
1. If Contractor faithfully performs the Contractwithin the time prescribed bythe Contract,
and promptly makes payment to all claimants, as defined in ORS 279C.600 through
279C.620, then this obligation is null and void; otherwise it shall remain in full force and
effect.
2. If Contractor is declared by City to be in default under the Contract, the Surety shall
promptly remedy the default, perform all of Contractor's obligations under the contract
in accordance with its terms and conditions and pay to City all damages that are due
under the Contract.
3. This bond is subject to claims under ORS 279C.600 through 279C.620.
4. This obligation jointly and severally binds Contractor and Surety and their respective
heirs, executors, administrators, successors.
5. Suretywaives notice of modification of the Contract or extension of the Contract time.
6. Nonpayment of the bond premium shall not invalidate this bond.
7. The bond number and the name,address,and telephone number of the agent authorized
to receive notices concerning this bond are as follows:
Bond Number:
Bond Agent:
Address:
Telephone:
54IPage
SIGNED this day of 20__.
PAYMENT BOND Page 2
WITNESS: CONTRACTOR:
By:
(Corporate Seal) Title:
Legal Address:
Attest:
Corporate Secretary
WITNESS:
SURETY:
By:
(Corporate Seal)
Title:
Legal Address:
Attest:
Corporate Secretary
55
EXHIBIT F
CERTIFICATE OF SUBSTANTIAL COMPLETION
City Project Name:
City Project
Number:
Contractor Name:
Contract Amount: Initial Contract
Date:
This Certificate of Substantial Completion applies to:
Q All Work under the Contract Documents, or
❑ To the following specified parts thereof:
The Workto which this Certificate applies has been inspected by authorized representatives of CITY,
CONTRACTOR and CITY, and that Work is hereby declared to be substantially complete in
accordance with the Contract Documents on
DATE OF SUBSTANTIAL COMPLETION
A tentative list of items to be completed or corrected is attached hereto. This list may not be all
inclusive,and the failure to include an item in it does not alter the responsibility of CONTRACTOR to
complete all the Work in accordance with the Contract Documents. The items in the tentative list
shall be completed or
corrected by CONTRACTOR within days of the above date of Substantial Completion.
The following documents are attached to and made a part of this Certificate:
56
Effective as of the last date set forth below, the responsibilities between CITY and CONTRACTOR
shall be as follows:
Security ❑ City ❑ Contractor
Operation ❑ City ❑ Contractor
Safety ❑ City ❑ Contractor
Maintenance ❑ City ❑ Contractor
Heat ❑ City ❑ Contractor
Utilities ❑ City ❑ Contractor
Insurance ❑ City ❑ Contractor
Warranties ❑ City ❑ Contractor
Other Responsibilities:
City Contractor
This Certificate does not constitute an acceptance of Work not in accordance with the Contract
Documents, nor is it a release of CONTRACTOR'S obligation to complete the Work in accordance
with the Contract Documents.
CONTRACTOR accepts this Certificate of Substantial ,
Completion on:
.......................................................................... ........................
By:
CITY accepts this Certificate of Substantial Completion on: ,
.......................................................................... ........................
By:
CITY of ASHLAND
57IPage
EXHIBIT G
CERTIFICATE OF COMPLIANCE
CIP Number:
Contractor:
I, (We) hereby certify that all work has been performed and materials supplied in accordance
with the plans, specifications and contract documents for the above work, and that:
1. If required by law, not less than the prevailing rates of wages have been paid to laborers,
workmen and mechanics employed on this work.
2. There have been no unauthorized substitutions of materials; substitutions or assignment
of subcontractors; nor have any subcontracts been entered into without the names of the
subcontractors having been submitted to the City prior to the start of such subcontracted
work.
3. All claims and indebtedness for material and labor and other service performed in
connection with these specifications have been paid.
4. All moneys due the State Industrial Accident Fund, the State Unemployment
Compensation Trust Fund, the State Department of Revenue (ORS 316.162 to 316.212)
hospital associations and/or others (ORS 279C.530) have been paid.
5. All private property and easement areas have been satisfactorily restored in accordance
with the contract.
6. If Contractor is not domiciled in or registered to business in the State of Oregon,Contractor
has reported to the Oregon Department of Revenue such information and in the manner as
required by ORS 279A.120(3).
Contractor:
By:
Title:
Date:
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EXHIBIT H
CONTRACTOR'S RELEASE OF LIENS AND CLAIMS
[THIS SWORN STATEMENT IS A PREREQUISITE TO CERTIFICATE OF FINAL COMPLETION]
TO: City of Ashland
20 East Main Street
Ashland, Oregon 97520
FROM:
PROJECT:
In connection with our request for final payment for the above project, I, ,
hereby state that:
all subcontractors and suppliers on this project have been paid in full,
all obligations on the project have been satisfied,
all monetary claims and indebtedness on this project have been paid, and
all disputes with property owners have been resolved.
There are no liens or claims of any kind outstanding or threatened against the project.
Furthermore, I agree to indemnify and hold harmless CITY of ASHLAND from any and all claims for
labor or materials furnished under the contract for the above project.
SWORN STATEMENT
I hereby certify, under penalty of perjury and false swearing,that the foregoing statements are
true and correct.
Dated this day of _, 20 .
Contractor:
By:
Title:
STATE OF OREGON )
)ss.
County of )
On this day of 20, before me personally appeared
__whom I know personally
whose identity I proved on the basis of
whose identity I proved on the oath/affirmation of
a credible witness to be the signer of the above document,
and he/she acknowledged that he/she executed the same under oath/affirmation.
Notary Public for Oregon
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EXHIBIT I
CERTIFICATE OF FINAL COMPLETION
Project Number:
Project:
Contractor:
Contract Signed: Contract Expires:
Contract Completed: Delinquent:
I hereby certifythat I have completed my contract,furnished the materials, and performed the work
as shown by the final estimate of the City, according to the plans and specifications.
Contractor Title Date
The City has determined the project is 100%complete in compliance with all contract documents.
Inspector Supervisor Date
Project Manager Date
CITY ofASHLAND Title Date
Unless otherwise provided as a Special Provision, when City accepts the Certificate of Final
Completion, the date the Contractor signs the Certificate of Final Completion shall be the date the
City accepts ownership of the work and the start date of the warranty period.
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EXHIBIT J
INSTRUCTIONS TO BIDDERS
The provisions of Oregon Administrative Rules Chapter 137, Divisions 46 and 49,apply to all bids and
contracts concerning Public Improvements and Public Works in the City of Ashland. The OAR
provisions control over any conflicting language in the City Standard Terms and Conditions, Special
Provisions, including Technical Provisions and the OAR provisions are incorporated herein by this
reference.
1. SCOPE OF WORK
The work contemplated under this contract includes all permits, labor, tools, machinery,
materials, transportation, equipment and services of all kinds required for, necessary for, or
reasonable incidental to,the completion of all the work in connection with the project described
in the contract documents, including the general conditions, all applicable special conditions,
plans, specifications, or any supplemental documents.
2. EEO AFFIRMATIVE ACTION
Bidders must complywith the City of Ashland Equal Opportunity Policy for Contractors. The
policy is included in and made a part of these Contract Documents and is attached hereto
and made a part hereof as Attachment A. Contractor shall not discriminate against
minorities,women or emerging small business enterprises in the awarding of subcontracts.
3. BID PROVISIONS
a. Each bid must contain a completed Bid including the following:
i. A Bid and Schedule of Prices.
ii. Acknowledgement that the bidder has received and reviewed all Addenda for the
bid.
iii. A statement that all applicable provisions of ORS Chapters 279A-C, including
ORS 279C.800 to 279C.870 (Contracting and Prevailing Wages) shall be
complied with.
iv. A statement bythe bidder, as part of their bid,that the bidder agrees to be bound
by and will comply with the provisions of ORS 279C.838, 279C.840 or 40 U.S.C.
3141 to 3148.
V. A statement as to whether the bidder is a resident bidder as defined in ORS
279A.120.
vi. A statement as to whether or not the bidder is licensed under ORS 468A.720 for
asbestos removal.
vii. A statement that the bidder has a current and valid registration with the
Construction Contractor's Board and/orthe State Landscape Contractors Board
as required by ORS 671.530.
viii. A statement confirming that the bidder has a Qualified Drug-testing Program for
employees in place. [OAR 137-049-0200(1)(c)(B)].
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ix. First Tier Subcontractor form for the project on the City form (physically received
in accordance with ORS 279C.370 within 2 working hours of the bid opening).
X. A Surety Bond, Cashier's check or Certified check in the amount of 10 percent of
the submitted bid.
xi. Certification: Non-discrimination (in bid)
xii. Certification: No Conflict of Interest(in bid)
xiii. Certification: Not ineligible for Public Works Contracts [OAR 137-049-0230] (in
bid)
b. The City will publish notice of any addenda on OregonBuys website
https://oregonbuys.gov/bso/view/Login/Login.xhtmL. The addenda may be downloaded or
picked up at the City Engineering Office located at 51 Winburn Way,Ashland Oregon,
97520. Check the website frequently until closing.
c. No bid will be received or considered bythe City of Ashland unless the bid contains a statement
by the bidder as apart of its bid that the Contractor shall be bound by and will comply with the
provisions of ORS 279C.838, 279C.840 or 40 U.S.C. 3141 to 3148. The statement shall be
included in the Bid form. The existing prevailing rate of wage is available at:
https://www.oregon.gov/boti/WHD/PWR/Pages/pwr_state.aspx
d. Each Bidder must identify in the Bid whether the Bidder is a "resident bidder" as defined in
ORS 279A.120.
e. Unless specified in the ITB, and Contract Special Provisions, the bidder or subcontractor
need not be licensed under ORS 468A.720 relating to asbestos abatement.
f. No bid for a construction contract shall be received or considered by the City of Ashland
unless the bidder is licensed with the Construction Contractors Board or licensed by the
State Landscape Contractors Board as required by ORS 671.530.
g. Each Bidder must demonstrate that its firm has a Qualified Drug Testing Program for
employees in place and demonstrate compliance prior to award.
h. Instructions for First-Tier Subcontractors Disclosure. Bidders are required to disclose
information about certain first-tier subcontractors when the contract value for a Public
Improvement is greater than $100,000 (see ORS 279C.370; OAR 137-049-0360).
Specifically, when the contact amount of a first-tier subcontractor furnishing labor or labor
and materials would be greater than or equal to(i)5%of the project bid, but at least$15,000,
or (ii) $350,000 regardless of the percentage, the bidder must disclose the following
information about that subcontract in its bid submission orwithin two(2)working hours after
bid closing:
(1) The subcontractor's name,
(2) The dollarvalue of the subcontract, and
(3) The category of work that the subcontractor would be performing.
If the bidder will not be using any subcontractors that are subject to the above disclosure
requirements, the bidder is required to indicate "NONE" on the accompanying form.
Disclosure forms will be available for public inspection after the opening of the bids.
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THE CITY OFASHLAND MUST REJECT BID AS NON-RESPONSIVE IF THE BIDDER FAILS TO
SUBMIT THE DISCLOSURE FORM WITH THE REQUIRED INFORMATION BY THE STATED
DEADLINE (see OAR 137-049-0360).
i. Bid Security. [OAR 137-049-0290]
No bid will be received or considered unless the Bid is accompanied by a certified check,
cashier's check, (payable to the City of Ashland), surety bond (in approved form)(f/k/a/ bid
bond), or irrevocable letter of credit issued by an insured institution [ORS 706.008] (in an
approved form) in an amount equal to ten percent (10%) of the total amount bid. The
successful bidder will be required to furnish a faithful performance bond and a labor and
material payment bond each in the amount of one hundred percent(100%)of the amount of
the contract. Said security shall be irrevocable for 60 days, unless specified otherwise. The
bid security shall be forfeited, at the City's option, as fixed and liquidated damages, if the
bidder fails or neglects to furnish the required performance bond, the insurance, or to
execute the contract within 10 working days after receiving the contract from the City for
execution. When a bond is used for bid security, the bond shall be executed by a surety
company authorized to transact business in the State of Oregon. THE BIDDER SHALL HAVE
THE SURETY USE THE BID BOND FORM PROVIDED HEREIN. IF THIS FORM IS NOT USED,
THE BID WILL BE DEEMED NON-RESPONSIVE AND SHALL BE REJECTED.
All such certified checks or surety bonds will be returned to the respective bidders within 10
working days after the bids are opened,except those of the two low bidders. The bid security
of the two low bidders will be held by the City until the selected bidder has accomplished the
following:
A. Executed a formal contract;
B. Executed and delivered to the City a Performance Bond and Payment Bond, both in
the amount equal to 100%of the Contract Price;
C. Furnish proof of public works bond filed with BOLT; and
D. Furnish the required Certificates of Insurance.
Upon the execution and deliveryto the Cityof Ashland of the Contract and Performance Bond
and Payment Bond and furnishing proof of a Public Works Bond filed with BOLI by the
successful bidder, the bid security shall be returned to the bidder. The bidderwho has been
awarded a contract and who fails or neglects to promptly and properly execute the contract
or bonds shall forfeit the bid security that accompanied the bid. It is hereby specifically
provided that a forfeiture of said bid security be declared by the Council if the contract and
performance bond and payment bond are not executed and delivered to the City within ten
(10)working days of the day of the receipt bythe successful bidder of the prepared contract.
The Council, at its option, may determine that the bidder has abandoned the submitted
accepted bid, in which case the bid security shall become the sole property of the City and
shall be considered as liquidated damages and not as a penalty for failure of the bidder to
execute the contract and bond. The security of unsuccessful bidders shall be returned to
them after the contract has been awarded and duly signed.
j. A Bidder submitting a bid thereby certifies that no officer, agent, or employee of the Citywho
has a pecuniary interest in this bid has participated in the contract negotiations on the part
of the City, that the Bid is made in good faith without fraud, collusion, or connection of any
kind with any other Bidder for the same call for bids, and that the Bidder is competing solely
on its own behalf without connection with, or obligation to, any undisclosed person or firm.
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k. The Bidder, in submitting the bid, certifies that the Bidder has not been disqualified and is
eligible to receive a contract for a public work pursuant to ORS 279C.860 as well as the
disqualification provisions of ORS 279C.440 and OAR 137-049-0370. Bidder agrees, if
awarded a contract,that every subcontractor will not be ineligible to receive a contract for a
public work pursuant to ORS 279C.860 and will otherwise not be disqualified under ORS
279C.440 and OAR 137-049-0370.
4. PRE-BID CONFERENCE AND PREQUALIFICATION OF BIDDERS
If a pre-bid conference is scheduled, notice will be provided in accordance with OAR 137-
049-0200(1)(a)(B). If prequalification will be required itwill be specifically stated in the Notice
to Contractors and Invitation to Bid, including the date prequalification applications must be
filed under ORS 279C.430 and the class or classes of work for which bidders must be pre-
qualified. [OAR 137-049-0200(1)(a)(C).] [ORS 279C.365(1)(c)] For example, the requirement
for ODOT Prequalification reads as follows:
Bidders must be pre-qualified with the Oregon Department of Transportation or General
Service per ORS 279C.435 to perform the type and size of work contemplated herein and
shall submit, to the City upon request. The City will investigate and determine the
qualifications for the apparent low bidder prior to awarding the contract. [OAR 137-049-
0220].
Applications submitted without being designated for a project advertised for bid by the City
will be considered as a general prequalification application and processed pursuant to ORS
279C.430 to 279C.450 and notice of prequalification status will be given within thirty (30)
days of the receipt of the application. A notice of disqualification can be given orally. An oral
disqualification notice will be followed bywritten notice and bear the date of the oral notice.
(NOTE: No person may engage in any business within the City without first obtaining a City
Business License and paying the fee prescribed pursuant to City of Ashland Ordinance and
accompanying Fee Resolution)
5. FORM OF BID
A. Bids shall be submitted in sealed envelopes to:
Street Address: Mailing Address:
City of Ashland City of Ashland
c/o Chance Metcalf, PMP c/o Chance Metcalf, PMP
Project Manager Project Manager
51 Winburn Way 51 Winburn Way
Ashland, Oregon 97520 Ashland, Oregon 97520
The outside of the transmittal envelope shall bear the following information:
Name of Bidder
Address and telephone number of Bidder
Title of Project
Date of opening
The words "Sealed Bid"
If the sealed bid is forwarded by mail or messenger service, the sealed envelope
containing the bid, and marked as above, must be enclosed in another envelope
addressed as noted above. Facsimile and Electronic Data Interchange bids shall not be
accepted unless otherwise specified in the Special Provisions. No bid will be received or
64I
considered by the City unless the bid contains all the Required Bid Documents and
Certifications.
B. All bids must be clearly and distinctly typed or written with ink or indelible pencil and be
on the Bid form furnished by Owner. The bid must be signed by the Contractor or a duly
authorized agent. If erasures or other changes appear on the form,they shall be initialed
in ink by the person who signs the bid. The bidder shall not alter, modify or change the
Bid forms except as directed by addendum. All applicable blanks giving general
information must be completed, in addition to necessary unit price items and total prices
in the column of totals to make a complete bid. The Bid is the bidder's offer to enter into
a contract which, if the Bid is accepted for award, binds the bidder to a contract and the
terms and conditions contained in the Bid, as well as the Solicitation Documents. A
bidder shall not make the Bid contingent upon the City's acceptance of specifications or
contract terms which conflict with or are in addition to those advertised in the Notice to
Contractors and Invitation to Bid. Any statement accompanying and tending to qualify a
bid maycause rejection of such bid,unless such statement is required in a bid embracing
alternative bids
C. Unless otherwise specified, Bidders shall bid on all bid items included in the bid and the
low Bidder shall be determined. Except as provided herein, bids which are incomplete,
or fail to reply to all items required in the bid may be rejected.
D. Bidders shall state whether business is being done as an individual, a co-partnership, a
corporation, or a combination thereof, and if incorporated, in what state, and if a
co-partnership, state names of all partners. The person signing on behalf of a
corporation, a co-partnership or combination thereof shall state their position with the
firm or corporation, and state whether the corporation is licensed to do business in the
State of Oregon.
6. LATE BIDS
Bids received after the scheduled closing time for submission of bids as set forth in the
invitation for bids will be rejected. Bids will be time and date stamped by Community
Development Department / Public Works Counter personnel upon receipt. Such time and
date stamps will govern the determination of on-time submission of bids. Bids received after
the time so fixed are late bids. Late bids will be time and date stamped at the time of receipt
by City personnel, marked as "Rejected as Late Bid" and will be returned, unopened, to the
submitted.
7. INTERPRETATION OF CONTRACT AND ADDENDA
If a bidder finds error, discrepancies in, or omissions from the plans, specifications or
contract documents, or has doubt as to their interpretation or meaning, the bidder shall at
once notify the City Contact Person/Project Manager.The Citywill investigate and determine
if an addendum will be issued.
If it should appear to a Bidder that the work to be done or matters relative thereto are not
sufficiently described or explained in the Contract Documents or that Contract Documents
are not definite and clear, or the Bidder needs additional information or an interpretation of
the contract, the Bidder may make written inquiry regarding same to the Project Manager at
least ten (10) days, unless otherwise specified, before the scheduled closing time for
submission of bids.
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If, in the opinion of the Project Manager, additional information or interpretation is required,
an addendum will be issued to all known specification holders.
Any addendum or addenda issued by the City which may include changes, corrections,
additions, interpretations or information, and issued seventy-two (72) hours or more before
the scheduled closing time for submission of bids, Saturday, Sunday and legal holidays not
included,shall be binding upon the Bidder. City shall supply copies of such Addenda will not
be mailed but will be posted on the website and available at Community Development
Department Counter; failure of the Contractor to receive or obtain such addenda shall not
excuse them from compliance therewith if they are awarded the contract.
ORAL INSTRUCTIONS OR INFORMATION CONCERNING THE CONTRACT, OR THE PROJECT
GIVEN OUT BY OFFICERS, EMPLOYEES OR AGENTS OFTHE CITYTO PROSPECTIVE BIDDERS
SHALL NOT BIND THE CITY.
8. EXAMINATION OF CONTRACT,SITE OF WORK AND SUBSURFACE DATA
A. Prior to submitting a bid, it is the responsibility of each Bidder to:
(1) Examine the plans, specifications and contract documents thoroughly.
(2) Become fully informed as to the quality and quantity of materials and the character
of the work required.
(3) Visit the site to become familiar with local conditions that may affect cost, progress,
or performance of the work and sources and supply of materials.
(4) Consider all federal,state and local laws,ordinances, rules and regulations that may
affect cost, progress, or performance of the work, including environmental and
natural resource ordinance and regulations
(5) Consider identified site conditions and conduct pre-bid inspection to address
environmental and natural resource laws implicated bythe project.
(6) Study and correlate the Bidder's observations, especially as regards site conditions
with the Contract Documents.
(7) Notify the Contact Person of all conflicts, errors, ambiguities or discrepancies
discovered in the Contract Documents.
B. Bidders shall determine for themselves all the conditions and circumstances affecting
the project or the cost of the proposed work, including without limitation utility
interferences, by personal examination of the site, careful review of the Contract and by
such other means as the Bidder feels maybe necessary. It is understood and agreed that
information regarding subsurface or other conditions, or obstructions indicated in the
Contract Documents, is provided by Owner only forthe convenience of Bidders and may
not be complete or accurate and such information is not expressly or tacitly warranted
to accurately represent actual conditions. Bidder's use of such information shall be at
Bidder's sole risk, and Bidder is responsible to confirm any information provided from
such independent sources as Bidder feels may be necessary.
C. Logs of test holes, test pits, soils reports, ground-water levels and other supplementary
subsurface information are offered as information of underlying materials and conditions
at the locations actually tested. Owner will not be liable for any loss sustained by the
Bidder as a result of any variance between conditions contained in or interpretations of
test reports and the actual conditions encountered during progress of the work.
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D. The submission of a Bid shall be conclusive evidence that the Bidder has investigated
and is satisfied as to the site subsurface conditions to be encountered, as to the
character, quality and quantities of work to be performed and materials to be furnished,
and as to the requirements of the Contract.
E. The City will not pay any costs incurred by any Bidder in the submission of a Bid, or in
making necessary studies or designs for the preparation thereof, or for procuring or
contracting for the items to be furnished under the Invitation to Bid. When submitting a
bid, the Bidder agrees that consideration has been given to the requirements and
conditions contained throughout these Bid Documents.
F. Notice: It is further understood that a Bid awarded hereunder is subject to the City being
able tocomplywithallzoningand land development ordinances orobtain rezoningof the
property where necessary, and comply with local building code restrictions and
conditions for structures contemplated in the project, any or all of which conditions may
be contained in the Contract or Contract Special Provisions and if such conditions are
not satisfied may result in termination of the Contract.
9. FAMILIARITY WITH LAWS AND ORDINANCES
A. The Bidder is presumed to be familiar with all Federal,State,and Local laws,ordinances,
and regulations which in any manner affect those engaged or employed in the work or the
materials or equipment used in the proposed construction,or which in anyway affect the
conduct of the work. If the Bidder, or Contractor, shall discover any provision in the
Contract which is contrary to or inconsistent with any law, ordinance or regulation, it
shall immediately be reported to the Owner in writing.
B. No person may engage in any business within the City without first obtaining a City
Business License and paying the fee prescribed pursuant to City of Ashland Ordinance.
The Contractor and their subcontractors shall obtain a City of Ashland Business License
prior to beginning any work within the City of Ashland.
10. UNIT BIDS
A. The estimate of quantities of work to be done under unit price bids is approximate and is
given only as a basis of calculation for comparison of bids and award of the Contract.
The City does not warrant that the actual amount of work will correspond to the amount
as shown or estimated. Payment will be made at unit prices under a contract, only for
work actually performed or materials actually furnished according to actual
measurement that were necessary to complete the work.
B. Bidders must include in their bid prices the entire cost of each item of work set forth in
the Bid, and when, in the opinion of the City, the prices in any bid are obviously
unbalanced, such bid may be rejected.
C. The unit contract prices for the various bid items of the contract shall be full
compensation for all labor, materials, supplies, equipment, tools and all things of
whatsoever nature are required for the complete incorporation of the item into the work
the same as though the item were to read "In Place."
11. WITHDRAWAL, MODIFICATION ORALTERATION OF BID
A. Bids may be withdrawn on written request received from the bidders prior to the time
fixed for opening. The request shall be executed by the bidder or a duly authorized
representative. The withdrawal of a bid does not prejudice the right of the bidder to file a
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new Bid. Negligence on the part of the Bidder in preparing the Bid confers no right for the
withdrawal of the bid after it has been opened. The Bid will be irrevocable until such time
as the City:
• Specifically rejects the Bid, and
• Awards the contract to another bidder and said contract is properly executed.
All bids shall remain subject to acceptance bythe City for sixty(60)days after the date of
the bid opening.
B. Priorto Bid Opening,changes may be made provided the change is initialed bythe Bidder
or the Bidder's agent. If the intent of the Bidder is not clearly identifiable, the
interpretation most advantageous to Ownerwill prevail.
C. No Bidder may withdraw a bid after bid opening unless sixty(60)days have elapsed and
the City has not awarded a contract.
12. MISTAKES IN BIDS
A. To protect the integrity of the competitive solicitation process and to assure fair
treatment of Bidders, Citywill carefully consider whether to permitwaiver, correction or
withdrawal for certain mistakes.
B. Treatment of Mistakes. City shall not allow a Bidder to correct or withdraw a Bid for an
error in judgment. If the City discovers certain mistakes in a Bid after Opening, but before
Award of the Contract,the City may take the following action:
(a) City may waive, or permit a Bidder to correct, a minor informality. A minor
informality is a matter of form ratherthan substance that is evident on the face of
the Bid, or an insignificant mistake that can be waived or corrected without
prejudice to other Bidders. Examples of minor informalities include a Bidder's
failure to:
(i) Return the correct number of Signed Bids or the correct number of other
documents required by the Solicitation Document;
(ii) Sign the Bid in the designated block, provided a Signature appears elsewhere
in the Bid, evidencing an intent to be bound; and
(iii) Acknowledge receipt of an Addendum to the Solicitation Document,
provided: it is clear on the face of the Bid that the Bidder received the
Addendum and intended to be bound by its terms; and the Addendum
involved did not affect price, quantity or delivery.
(b) City may correct a clerical error if the error is evident on the face of the Bid, or
other documents submitted with the Bid, and the Bidder confirms the City's
correction in writing. A clerical error is a Bidder's error in transcribing its Bid.
Examples include typographical mistakes, errors in extending unit prices,
transposition errors, arithmetical errors, instances in which the intended correct
unit or amount is evident by simple arithmetic calculations (for example a
missing unit price may be established by dividing the total price for the units by
the quantity of units for that item or a missing, or incorrect total price for an item
may be established by multiplying the unit price by the quantity when those
figures are available in the Bid). In the event of a discrepancy, unit prices shall
prevail overextended prices.
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(c) City may permit a Bidder to withdraw a Bid based on one or more clerical errors
in the Bid only if the Bidder shows with objective proof and by clear and
convincing evidence:
(i) The nature of the error;
(ii) That the error is not a minor informality under this subsection or an error in
judgment;
(iii) That the error cannot be corrected or waived under subparagraph (b) of this
subsection;
(iv) That the Bidder acted in good faith in submitting a Bid that contained the
claimed error and in claimingthatthe alleged error in the Bid exists;
(v) That the Bidder acted without gross negligence in submitting a Bid that
contained a claimed error;
(vi) That the Bidder will suffer substantial detriment if the City does not grant it
permission to withdraw the Bid;
(vii) That the City's or the public's status has not changed so significantly that
relief from the forfeiture will work a substantial hardship on the City or the
public it represents; and
(viii) That the Bidder promptly gave notice of the claimed error to the City.
(d) The criteria in subsection (c) above shall determine whether a City will permit a
Bidder to withdraw its Bid after Closing. These criteria also shall apply to the
question whether an Citywill permit Bidder to withdraw its Bid without forfeiture
of its bid bond (or other bid security), or without liability to the City based on the
difference between the amount of the Bidder's Bid and the amount of the
Contract actually awarded by the City, whether by award to the next lowest
Responsive and Responsible Bidder or the best Responsive and Responsible
Proposer, or by resort to a new solicitation.
C. Rejection for Mistakes. The City shall reject any Bid in which a mistake is evident on the
face of the Bid and the intended correct Bid is not evident or cannot be substantiated
from documents accompanying the Bid (i.e., documents submitted with the Bid).
13. REJECTION OF BIDS
a. The City may reject any Bid upon a finding that the Bid meets the criteria specified in OAR
137-049-0440(1)(a) or(b)or has not provided the certification required under OAR 137-049-
0440(3). The City shall reject a Bid from a Bidderwho meets the criteria specified in OAR 137-
049-0440(1)(c). The City may, for good cause, reject any or all bids upon a finding it is in the
public interest to do so. In any case where competitive bids are required and all bids are
rejected, and the proposed contract is not abandoned, new bids may be called for as in the
first instance. The City may, at its own discretion,waive minor informalities.
b. This Invitation to Bid does not commit the Cityto pay any costs incurred by any Bidder in the
submission of a Bid,or in making necessary studies,subsurface investigations ordesignsfor
the preparation of a Bid,or for procuring or contracting for the items to be furnished pursuant
to the Contract Documents.
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The City reserves the right to reject any or all bids when such rejection is in the best interest
of the City of Ashland. Bids may be rejected if they show any alteration of form, additions not
called for, conditional Bids, incomplete Bids, erasures, or irregularities of any kind.
When Bids are signed by an agent, other than the officer or officers of a corporation
authorized to sign contracts on its behalf,or a memberof a partnership,a"Powerof Attorney"
must be submitted with the Bid or on file with the City Administrator prior to opening of bids;
otherwise,the Bid will be rejected as irregular.
More than one Bid from an individual,firm, partnership, corporation, or combination thereof
with an interest in more than one bid, for the items bid, will be cause for the rejection of all
Bids in which such individual, firm, partnership, corporation, or combination thereof, is
interested.
If there is reason to believe that collusion exists among bidders, none of the bids of the
participants in such collusion will be considered,and all involved bids shall be rejected. Bids
in which prices are obviously unbalanced may be rejected.
14. BID PROTEST. [OAR 137-049-0260].
Bidders may, in writing protest or request changes of any specifications or contract terms in
accordance with adopted City contracting rules. The written protest or request for changes
must be received bythe City no later than ten (10)calendar days prior to the Bid Closing Date.
The written protest or request shall include the reasons for the protest or request, and any
proposed changes to the bid specifications or contract terms and a description of the
prejudice to the bidder. Envelopes containing bid protests shall be marked "Contract
Provision Protects or Request' with the Bid Number and Closing Date. No protest against
award, owing to the content of the bid specifications or contract terms shall be considered
afterthe deadline established forsubmitting protests of bid specifications or contractterms.
15. ORS 654.150 SANITARY FACILITIES AT CONSTRUCTION PROJECTS STANDARDS,
EXEMPTIONS
If the contract price is estimated(itemized bid)or bid(lump sum)byContractorat$1,000,000
or more, Contractor shall be responsible for all costs (which costs shall be included in the
bid whether or not a specific bid item is provided therefore)that may be incurred in complying
with or securing exemption or partial exemption from the requirements of ORS 654.150
(Sanitary facilities at construction projects; standards, exemptions) and the rules adopted
pursuant thereto. Determination of applicability of ORS 654.150 to the project is the sole
responsibility of the Contractor.
16. PREVAILING WAGE RATE
The Contractor shall be required to follow standard billing format as set forth from State or
Federal Funding sources. The Siskiyou Boulevard Waterline Replacement shall follow the
current State of Oregon BOLI Wage Rates. The rates utilized will be noted at the date of the
bid shown at the following location:
http://www.oregon.gov/boti/WHD/PWR/Pages/pwr_state.aspx.
70I
EXHIBIT K
LETTER OF INTENT
Name of Bidder's Firm:
Bidder's Address:
City: State Zip Code
Name of DBE Firm:
Address:
City: State Zip Code
Telephone: Area Code:
State DBE Certification Number:
Description of work to be performed by DBE firm:
Bidder intends to utilize the above-named minority firm forthe work described above.The estimated
amount of work is valued at$ . If the above-named bidder is not determined to be
the successful bidder, the Letter of Intent shall be null and void.
By:
(Signature)
(Title)
(Copy this page for each DBE subcontractor)
(Letter of intent is not required if no DBE firms participate in the project)
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72
EXHIBIT L
RESTRICTION ON FEDERAL PUBLIC WORKS PROJECTS
(a) General:This clause implements provisions contained in the Airport and airway Safety and
Capacity Expansion Act of 1987, Public Law No. 100223.
(b) Restrictions on Contract Award: No contract will be awarded to a bidder(1)who is owned or
controlled by one or more citizens or nationals of a foreign country included on the list of
countries that discriminate against U.S. firms, published by the United States Trade
Representative (USTR)or(2)whose subcontractors are owned or controlled by one or more
citizens or nationals of a foreign country on such USTR list or(3)who incorporates in the project
any production of a foreign country on such USTR List; unless a waiver to these restrictions is
granted bythe President of the United States or the Secretary of Transportation. (Notice of the
granting of a waiver will be published in the Federal Register.)
(c) Certification: By this page the bidder certifies that with respect to this solution, and any
resultant contract the bidder:
1. Is Is not a contractor of a foreign country included on the USTR list;
2. Has Has not entered into any contract with a subcontractor of a
foreign country included on the USTR list;
3. Has Has not entered into anycontract for any productto be used on
this project that is produced in a foreign country included on the USTR list.
(d) The bidder may rely upon the certification of a prospective subcontractor for the above
conditions unless the bidder has knowledge that the certification is erroneous.
(e) Erroneous Certification:This certification is a material representation of fact upon which
reliance was placed when making the award. If it is later determined that the bidder knowingly
rendered an erroneous certification, the sponsor may cancel this contract for default at no cost
to the sponsor.
(f) Subcontracts:The bidder shall incorporate this clause,without modification, including this
paragraph (f) in all solicitations and subcontracts under this contract.
(g) Applicability of 18 U.S.C. 1001:This certification concerns a matter within the jurisdiction of the
federal Aviation Administration and the making of a false or fraudulent certification may render
the maker subject to prosecution under Title 18, Unites States Code, Section 1001.
Firm Name
Authorized Signature
Title
Date
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74
EXHIBIT M
BUY AMERICAN PREFERENCE
Asa matter of bid responsiveness,the bidder or offeror must complete, sign, date, and submit this
certification statement with its proposal. The bidder or offeror must indicate how it intends to
complywith 49 USC§50101 by selecting one of the following certification statements. These
statements are mutually exclusive. Bidder must select one or the other(i.e. not both) by inserting a
checkmark(✓)or the letter"X".
❑ Bidder or offeror hereby certifies that it will complywith 49 USC §50101 by:
a) Only installing steel and manufactured products produced in the United States; or
b) Installing manufactured products for which the Federal Aviation Administration
(FAA) has issued a waiver as indicated by inclusion on the current FAA Nationwide
BuyAmerican Waivers Issued listing; or
c) Installing products listed as an Excepted Article, Material or Supply in Federal
Acquisition Regulation Subpart 25.108.
By selecting this certification statement,the bidder or offeror agrees:
• To provide to the Owner evidence that documents the source and origin of the steel and
manufactured product.
• To faithfully complywith providing U.S. domestic products.
• To refrain from seeking a waiver request after establishment of the contract, unless
extenuating circumstances emerge that the FAA determines justified.
❑ The bidder or offeror hereby certifies it cannot complywith the 100 percent Buy American
Preferences of 49 USC §50101(a) but may qualify for either a Type 3 or Type 4 waiver under
49 USC §50101(b). By selecting this certification statement, the apparent bidder or
offeror with the apparent low bid agrees:
a) To the submit to the Owner within 15 calendar days of the bid opening, a formal
waiver request and required documentation that supports the type of waiver
being requested.
b) That failure to submit the required documentation within the specified timeframe
is cause for a non-responsive determination that may result in rejection of the
proposal.
c) To faithfully complywith providing U.S. domestic products at or above the
approved U.S. domestic content percentage as approved by the FAA.
d) To furnish U.S. domestic product for anywaiver request that the FAA rejects.
e) To refrain from seeking a waiver request after establishment of the contract,
unless extenuating circumstances emerge that the FAA determines justified.
75I
Required Documentation
Type 3 Waiver—The cost of components and subcomponents produced in the United States is
more than 60 percent of the cost of all components and subcomponents of the"facility".The
required documentation for a Type 3 waiver is:
a) Listing of all manufactured products that are not comprised of 100 percent U.S.
domestic content(excludes products listed on the FAA Nationwide Buy
American Waivers Issued listing and products excluded by Federal Acquisition
Regulation Subpart 25.108; products of unknown origin must be considered as
non-domestic products in their entirety).
b) Cost of non-domestic components and subcomponents, excluding labor costs
associated with final assembly and installation at project location.
c) Percentage of non-domestic component and subcomponent cost as compared
to total"facility" component and subcomponent costs, excluding labor costs
associated with final assembly and installation at project location.
Type 4 Waiver—Total cost of project using U.S. domestic source product exceeds the total project
cost using non-domestic product by 25 percent.The required documentation for a Type 4 of waiver
is:
a) Detailed cost information for total project using U.S. domestic product
b) Detailed cost information for total project using non-domestic product
False Statements: Per49 USC§47126,this certification concerns a matter within the jurisdiction
of the Federal Aviation Administration and the making of a false, fictitious or fraudulent
certification may render the maker subject to prosecution under Title 18, United States Code.
Date Signature
Company Name Title
76
EXHIBIT N
CERTIFICATION OF OFFERER/BIDDER REGARDING TAX DELINQUENCY AND FELONY
CONVICTIONS
The applicant must complete the following two certification statements.The applicant must
indicate its current status as it relates to tax delinquency and felony conviction by inserting a
checkmark(✓) in the space following the applicable response.The applicant agrees that, if
awarded a contract resulting from this solicitation, it will incorporate this provision for certification
in all lower tier subcontracts.
Certifications
1� The applicant represents that it is ( ✓)is not(✓)a corporation that has any unpaid Federal
tax liability that has been assessed, for which all judicial and administrative remedies have
been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an
agreement with the authority responsible for collecting the tax liability.
2} The applicant represents that it is ( ✓)is not(✓)is not a corporation that was convicted of
a criminal violation under any Federal lawwithin the preceding24 months.
Note
If an applicant responds in the affirmative to either of the above representations, the applicant is
ineligible to receive an award unless the sponsor has received notification from the agency
suspension and debarment official(SDO)that the SDO has considered suspension or debarment
and determined that further action is not required to protect the Government's interests. The
applicant therefore must provide information to the owner about its tax liability or conviction to the
Owner,who will then notify the FAA Airports District Office,which will then notify the agency's SDO
to facilitate completion of the required considerations before award decisions are made.
Term Definitions
Felony conviction: Felony conviction means a conviction within the preceding twenty-four
(24) months of a felony criminal violation under any Federal law and includes
conviction of an offense defined in a section of the U.S. code that specifically classifies
the offense as a felony and conviction of an offense that is classified as a felony under 18
U.S.C. §3559.
Tax Delinquency:A tax delinquency is any unpaid Federal tax liability that has been assessed,
forwhich alljudicial and administrative remedies have been exhausted, or have lapsed, and
that is not being paid in a timely manner pursuant to an agreement with the authority
responsible for collecting the tax liability.
Date Signature
Company Name Title
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78
EXHIBIT O
BIDDERS LIST
All firms bidding or quoting on subcontracts for this
DOT-assisted project are listed below:
CERTIFIED Age of
Firm Name Address DBE GRS*
(Y or N) Firm
*GRS—Annual Gross Receipts
Enter 1 for less than $1 million
Enter 2 for more than$1 million, less than$5 million
Enter 3 for more than $5 million, less than $10 million
Enter 4 for more than $10 million, less than $15 million
Enter 5 for more than$15 million
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80
EXHIBIT P
FIRST-TIER SUBCONTRACTOR DISCLOSURE FORM
Bid Closing:April 30',2026/2:00pm(Local time)
For projects with a contract value of more than $100,000, this form must be submitted at the
located specified in the Invitation to Bid on the advertised bid closing date within two(2)working
hours after the advertised bid closing time.
List below,the"Name" "Dollar Value" and "Category of Work" of each subcontractor that:
(A) Will be furnishing labor or will be furnishing labor and materials in connection with the
public improvement; and
(B) Will have a contract value that is equal to or greater than five percent(5%)of the total
project bid or$15,000,whichever is greater, or$350,000 regardless of the percentage
of the total project bid.
Enter"NONE" if there are no subcontractors that need to be disclosed (if needed attach additional
sheets).
SUBCONTRACTOR NAME& DOLLAR VALUE CATEGORY OF WORK
ADDRESS&PHONE NUMBER
M
M
M
M
M
M
M
FAILURE TO SUBMIT THIS FORM BYTHE DISCLOSURE DEADLINE WILL RESULT IN A
NONRESPONSIVE BID. A NONRESPONSIVE BID WILL NOT BE CONSIDERED FOR AWARD.
Form submitted by(Bidder name):
Contact Name: Phone#:
NOTE: Faxed or email copies of this form will not be accepted.
sil
APPENDIX
1. FAA CONTRACT PROVISION GUIDELINES FOR OBLIGATED SPONSORS AND AIRPORT
IMPROVEMENT PROGRAM PROJECTS
2. BOLI PREVAILING WAGE
3. DAVIS BACON ACT PREVAILING WAGE
4. CONSTRUCTION SAFETY AND PHASING PLAN
82
PART II - CONTRACT CONDITIONS AND GENERAL PROVISIONS
ASHLAND MUNICIPAL AIRPORT- RUNWAYAND TAXILANE
REHABILITATION PROJECT
2024-03
Road Construction
WORKTO BE DONE
The Work to be done under this Contract consists of the following:
1. Rehabilitation of Runway and Taxilanes.
a. Pavement marking removal.
b. Narrow and wide crack repair.
c. Asphalt Patch
d. Surface seal approximately 38,200 SY of existing pavement.
e. Asphalt rehabilitation is approximately 8,100 SY.
f. Rock shoulder.
2. Reconstruction of Taxilane section T03AS-01.
a. Demolish,over excavate, and replace approximately 400 SY of existing pavement.
b. Associated should grading and restoration.
APPLICABLE SPECIFICATIONS
The Specifications that are applicable to the Work on this Project are the Federal Aviation
Administration's Advisory Circulars(latesteditionsand changes)and the 2024 edition of the"Oregon
Standard Specifications for Construction", as modified by these Special Provisions. All Sections in
Part 00100 apply,whether or not modified or referenced in the Special Provisions.
All number references in these Special Provisions shall be understood to refer to the Sections and
subsections of the Standard Specifications bearing like numbers and to Sections and subsections
contained in these Special Provisions in their entirety.
CLASS OF PROJECT
This is a Local and Federal Aviation Administration and Oregon Department of Aviation Funded
Project.
83
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FAA Airports
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Contract Provision Guidelines for Obligated Sponsors and Airport Improvement
Program Projects (Issued on March 17, 2026)
Contents
CurrentChanges ........................................................................................................................................3
ContractGuidance.....................................................................................................................................4
1. Purpose of this Document......................................................................................................4
2. Sponsor Actions......................................................................................................................4
3. Typical Procurement Steps.....................................................................................................5
4. Applicability Matrix for Contract Provisions...........................................................................6
Appendix A—CONTRACT PROVISIONS......................................................................................................9
Al ACCESS TO RECORDS AND REPORTS......................................................................................9
A2 BREACH OF CONTRACT TERMS............................................................................................10
A3 BUY AMERICAN PREFERENCE...............................................................................................11
A4 CIVIL RIGHTS-GENERAL.......................................................................................................22
A5 CIVIL RIGHTS—TITLE VI ASSURANCE....................................................................................24
A6 CLEAN AIR AND WATER POLLUTION CONTROL...................................................................33
A7 CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS.........................34
A8 COPELAND "ANTI-KICKBACK" ACT........................................................................................36
A9 DAVIS-BACON REQUIREMENTS............................................................................................38
A10 DEBARMENT AND SUSPENSION...........................................................................................45
All DISADVANTAGED BUSINESS ENTERPRISE ...........................................................................47
Al2 DISTRACTED DRIVING...........................................................................................................52
A13 PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES
OREQUIPMENT....................................................................................................................53
A14 DRUG FREE WORKPLACE REQUIREMENTS...........................................................................54
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 1
A15 FEDERAL FAIR LABOR STANDARDS ACT(FEDERAL MINIMUM WAGE) ................................55
A16 LOBBYING AND INFLUENCING FEDERAL EMPLOYEES..........................................................56
A17 OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970............................................................58
A18 PROCUREMENT OF RECOVERED MATERIALS.......................................................................59
A19 RIGHT TO INVENTIONS.........................................................................................................61
A20 SEISMIC SAFETY....................................................................................................................62
A21 TAX DELINQUENCY AND FELONY CONVICTIONS..................................................................64
A22 TERMINATION OF CONTRACT..............................................................................................67
A23 TRADE RESTRICTION CERTIFICATION ...................................................................................71
A24 VETERAN'S PREFERENCE......................................................................................................73
A25 DOMESTIC PREFERENCES FOR PROCUREMENTS.................................................................74
A26 PROHIBITION OF COVERED UNMANNED AIRCRAFT SYSTEMS(UAS)......................................75
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 2
CURRENT CHANGES
Item Changes
Provision(s)were updated to address regulatory changes impacting:
-A.7: Contract Workhours and Safety Standards Act Requirements-
Editorial updates Maximum Civil Monetary Penalty
made to the
December 29, 2025 Provision updated:
version (effective -A4: Civil Rights-General
March 17, 2026) -A5: Civil Rights—Title Vi Assurance
-All: Disadvantaged Business Enterprise-Applicability
Editorial updates Updates were made mainly to address:
made to the May 24, -2024 FAA Reauthorization Act provisions
2023 version -2 CFR Part 200—Uniform Administrative Requirements, Cost
(effective December Principles, and Audit Requirements for Federal Awards
29, 2025) -Recently issued Executive Orders, some of which rescinded prior
Executive Orders
-A.7: Contract Workhours and Safety Standards Act Requirements-
Maximum Civil Monetary Penalty
Provisions removed are:
-A2:Affirmative Action Requirement
-A16: Equal Employment Opportunity(EEO)
-A19: Prohibition of Segregated Facilities
Title VI section updated
DBE section updated
Buy American Preference section updated
Provision added (A26): Prohibition of Covered Unmanned Aircraft
Systems(UAS)
Editorial update made The link on page 35 was updated to reflect changes to the
to the January 23, Department of Labor website.
2023 version
(effective May 24,
2023)
Editorial updates Pages 7, 16, 19,20, 25, and 42 of Appendix A were edited to correct
made to the grammatical mistakes, update internal document links, and correct
November 17, 2022 the name of the Title VI List of Pertinent Nondiscrimination Acts
version (effective and Authorities.
January 23, 2023)
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 3
CONTRACT GUIDANCE
1. Purpose of this Document
a) The purpose of this document is to establish a convenient resource for Sponsors that
consolidates Federal contract provisions and clauses into one document that includes an
applicability matrix.This document itself does not create, revise or delete requirements for
participation in the Airport Improvement Program (AIP) and Infrastructure Investment and Jobs
Act (IIJA)grant programs. The source of requirements addressed within this document are
identified within the section for each individual clause.
b) While this document is intended to assist Sponsors with their compliance efforts, it does not
alter or modify the terms of any applicable statute or regulation, is not a substitute for
reading the regulation and the applicability matrix, and each corresponding document section,
nor does it constitute legal advice.
c) Federal laws and regulations require that a Sponsor(a recipient of federal assistance) include
specific clauses in certain contracts, solicitations, or specifications regardless of whether or not
the project is federally funded.
d) For purposes of remaining compliant with its obligations, a Sponsor must incorporate applicable
contract provisions in all its procurements and contract documents. Unless otherwise stated,
these provisions flow down to subcontracts and sub-tier agreements.
e) Terminology:
i. The term "Sponsor" is used in this document to mean either an obligated Sponsor on a
project that is not federally funded, or a Sponsor on an AIP funded project. A Sponsor is
a "recipient" of federal assistance when receiving AIP or other FAA grant funds.
ii. The term "Owner"of a public use airport is generally used in the solicitation or contract
clauses because of its common use in public contracts. An Owner becomes an obligated
Sponsor upon acceptance of the AIP grant assurances associated with current or prior
AIP grant funded projects.
iii. For purposes of determining requirements for contract provisions,the term "contract"
includes professional services, and subcontracts and supplier contracts such as purchase
orders.
iv. The term "contractor" is understood to mean a contractor, subcontractor, or
consultant; and means one who participates,through a contract or subcontract (at any
tier).
V. The term "bid" is understood to mean a bid, an offer, or a proposal.
vi. The term "applicant" means a bidder, offeror, or proposer for a contract.
2. Sponsor Actions
In general, Sponsor's actions consistent with obligations:
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 4
a) Include in its procurements the provisions that are applicable to its project.
b) Not incorporate the entire contract provisions guidelines in its solicitation or contract
documents,whether by reference or by inclusion in whole. Incorporation of this entire guidance
document creates potential for ambiguous interpretation and may lead to improper application
that unnecessarily increases price. A Sponsor that fails to properly incorporate applicable
contract clauses may place themselves at risk for audit findings or denial of Federal funding.
c) Incorporate applicable contract provisions using mandatory language as required.The
subheading entitled Applicability advises whether a particular clause or provision has mandatory
language that a Sponsor must use.
i. Mandatory Language—Whenever a clause or provision has mandatory text,the Sponsor
must incorporate the text of the provision without change, except where specific
adaptive input is necessary(e.g., such as the Sponsor's name).
ii. No Mandatory Language—For provisions without mandatory language,this guidance
provides model language acceptable to the FAA. Some Sponsors may have standard
procurement language that is equivalent to those federal provisions. In these cases,
Sponsors may use their existing standard procurement provision language provided the
text meets the intent and purpose of the Federal law or regulation.
d) Require the contractor(including all subcontractors)to insert these contract provisions in each
lower tier contract(e.g., subcontract or sub-agreement).
e) Require the contractor(including all subcontractors)to incorporate the requirements of these
contract provisions by reference for work done under any purchase orders, rental agreements,
and other agreements for supplies or services.
f) Require that the prime contractor be responsible for compliance with these contract provisions
by any subcontractor, lower-tier subcontractor, or service provider.
g) Verify that any required local or State provision does not conflict with or alter a Federal law or
regulation.
3. Typical Procurement Steps
The typical procurement steps in a project are:
1) Solicitation, Request for Bids, or Request for Proposals—This step is also called the
Advertisement or Notice to Bidders.
2) Bidding or Accepting Proposals—In this stage,the bidders receive a complete set of the
procurement documents, also known as the project manual. The project manual will typically
include a copy of the solicitation, instructions-to-bidders, bid forms, certifications and
representations, general provisions, contract conditions, copy of contract, project drawings,
technical specifications, and related project documents.
3) Bid/Proposal Evaluation—Period when Sponsor tabulates, reviews, and evaluates all proposals
for bid responsiveness and bidder responsibility.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 5
4) Award—Point when the Sponsor formally awards the contract to the successful bidder.
5) Execution of Contract— Point at which the Sponsor formally enters into a legally binding
agreement with bidder to perform services or provide goods.
4. Applicability Matrix for Contract Provisions
Table 1 Matrix summarizes the applicability of contract provisions based upon the type of contract or
agreement. The dollar threshold represents the value at which, when equal to or exceeded,the Sponsor
must incorporate the provision in the contract or agreement.
Supplemental information addressing applicability and use for each provision is located in Appendix A.
Appendix A and the Matrix include notes indicating when the Sponsor may incorporate references in the
solicitation in lieu of including the entire text.
Sponsors are responsible for reviewing both the Matrix and each corresponding section to determine
applicability of specific contract provisions.
Meaning of cell values in table below:
• Info—Sponsor has discretion on whether to include clause in its contracts.
• Limited—Provision with limited applicability depending on circumstances of the procurement.
• n/a—Provision that is not applicable for that procurement type.
• NIS— Provision that does not need to be included or referenced in the solicitation document
• REF—Provision to be incorporated into the solicitation by reference.
• REQD—Provision the Sponsor must incorporate into procurement documents.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 6
Table 1—Applicability of Provisions
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Provisions/Clauses ~ w a` U w
Access to Records and Reports $0 NIS READ READ READ READ n/a
Breach of Contract $350,000 NIS READ READ READ READ n/a
Buy American Preferences $0 REF Limited READ READ Limited n/a
(1)Buy American Statement $0 NIS Limited READ READ Limited n/a
(2)Construction $0 NIS Limited READ READ Limited n/a
(3)Equipment/Buildjng Projects $0 NIS Limited READ READ Limited n/a
CivilRights—General $0 NIS READ READ READ READ READ
Civil Rights-Title VI Assurances $0 REF READ READ READ READ READ
(1)Notice-Solicitation $0 READ READ READ READ READ READ
(2)Clause-Contracts $0 NIS READ READ READ READ READ
(3)Clause—Transfer of U.S.Property $0 NIS n/a n/a n/a Limited READ
(4)Clause—Transfer of Real Property $0 NIS n/a n/a n/a REQD READ
(5)Clause-Construct/Use/Access to $0 NIS n/a n/a n/a REQD REQD
Real Property
(6)List—Pertinent Authorities $0 NIS REQD REQD REQD REQD REQD
Clean Air/Water Pollution Control $150,000 NIS REQD REQD REQD REQD n/a
Contract Work Hours and Safety Standards $100,000 NIS Limited REQD Limited Limited n/a
Copeland Anti-Kickback $2,000 NIS Limited REQD Limited Limited n/a
Davis Bacon Requirements $2,000 REF Limited REQD Limited Limited n/a
Debarment and Suspension $25,000 REF REQD REQD REQD Limited n/a
Disadvantaged Business Enterprise $01 REQD REQD REQD REQD REQD n/a
Distracted Driving $15,000 NIS REQD REQD REQD REQD n/a
Domestic Preferences for Procurements $0 NIS REQD REQD REQD REQD Info
Federal Fair Labor Standards Act $0 REQD REQD REQD REQD REQD Info
Foreign Trade Restriction $0 REQD REQD REQD REQD REQD n/a
Lobbying Federal Employees $100,000 REF REQD REQD REQD REQD n/a
Occupational Safety and Health Act $0 NIS REQD REQD REQD REQD Info
Prohibition on Certain Telecommunications $0 NIS REQD REQD REQD REQD Info
and Video Surveillance Services or
Equipment
Prohibition of Covered Unmanned Aircraft $0 REQD REQD REQD REQD REQD n/a
Systems(UAS)
Recovered Materials $10,000 REF Limited REQD REQD Limited n/a
Right to Inventions $0 NIS Limited Limited Limited n/a n/a
Seismic Safety $0 NIS I Limited I Limited I Limited I n/a n/a
Tax Delinquency and Felony Conviction $0 NIS REQD REQD REQD REQD n/a
Termination of Contract $10,000 NIS REQD REQD REQD REQD n/a
Veteran's Preference $0 NIS REQD REQD REQD REQD n/a
Airport Concessions Notes:
1 Under 49 CFR§§26.13(b)and 26.21,any sponsor with more than $250,000 in total contracting opportunities in 1
year must incorporate required language in each contract, regardless of the particular contract's dollar value.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 7
1. Language relative to solicitation for airport concessions does not need to be included in AIP funded
solicitations, since in no case are concessions activities funded with federal funds.
2. Sponsors must include the appropriate Civil Rights—Title VI language in their solicitation notices
when they seek proposals for concessions, and in the resulting contracts.
3. For concessions agreements, use the column for Non-AIP contracts. See 49 CFR Part 23 for
definitions, requirements, and clauses related to concessions and the Airport Concessions
Disadvantaged Business Enterprise (ACDBE) program.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 8
APPENDIX A - CONTRACT PROVISIONS
Al ACCESS TO RECORDS AND REPORTS
A1.1 SOURCE
2 CFR§ 200.334
2 CFR§ 200.337
FAA Order 5100.38
A1.2 APPLICABILITY
2 CFR§ 200.334 requires a Sponsor to retain records pertinent to a Federal award for a period of three
years from submission of final closure documents. 2 CFR§ 200.337 establishes that Sponsors must
provide Federal entities the right to access records pertinent to the Federal award. FAA policy applies
these requirements to the Sponsor's contracts and subcontracts of AIP funded projects.
Contract Types—The Sponsor must include this provision in all contracts and subcontracts of AIP funded
projects.
Use of Provision—No mandatory language provided. The following language is acceptable to the FAA
with meeting the intent of this requirement. If the Sponsor prefers to use different language,the
Sponsor's language must fully satisfy the requirements of 2 CFR§§ 200.334 and 200.337.
A1.3 MODEL CONTRACT CLAUSE
ACCESS TO RECORDS AND REPORTS
The Contractor must maintain an acceptable cost accounting system.The Contractor agrees to provide
the Owner,the Federal Aviation Administration and the Comptroller General of the United States or
any of their duly authorized representatives access to any books, documents, papers and records of
the Contractor which are directly pertinent to the specific contract for the purpose of making audit,
examination, excerpts and transcriptions.The Contractor agrees to maintain all books, records and
reports required under this contract for a period of not less than three years after final payment is
made and all pending matters are closed.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 9
A2 BREACH OF CONTRACT TERMS
A2.1 SOURCE
2 CFR Part 200, Appendix II(A)
A2.2 APPLICABILITY
This provision requires Sponsors to incorporate administrative, contractual or legal remedies in the
event that a contractor violates or breaches contract terms.The Sponsor must also include appropriate
sanctions and penalties.
Contract Types—This provision is required for all contracts that exceed the simplified acquisition
threshold as stated in 2 CFR Part 200, Appendix II (A).This threshold is occasionally adjusted for inflation
and is$350,000.
Use of Provision—No mandatory language provided. The following language is acceptable to the FAA as
meeting the intent of this requirement. If the Sponsor uses different language,the Sponsor's language
must fully satisfy the requirements of 2 CFR Part 200. Select either"contractor" or"consultant" as
applicable.
A2.3 MODEL CONTRACT CLAUSE
BREACH OF CONTRACT TERMS
Any violation or breach of terms of this contract on the part of the Contractor or its subcontractors
may result in the suspension or termination of this contract or such other action that may be necessary
to enforce the rights of the parties of this agreement.
Owner will provide Contractor written notice that describes the nature of the breach and corrective
actions the Contractor must undertake in order to avoid termination of the contract. Owner reserves
the right to withhold payments to Contractor until such time the Contractor corrects the breach or the
Owner elects to terminate the contract.The Owner's notice will identify a specific date by which the
Contractor must correct the breach. Owner may proceed with termination of the contract if the
Contractor fails to correct the breach by the deadline indicated in the Owner's notice.
The duties and obligations imposed by the Contract Documents and the rights and remedies available
thereunder are in addition to, and not a limitation of, any duties, obligations, rights and remedies
otherwise imposed or available by law.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 10
A3 BUY AMERICAN PREFERENCE
A3.1 SOURCE
Title 49 U.S.C. §50101
Executive Order 14005, Ensuring the Future is Made in All of America by All of America's Workers
Infrastructure Investment and Jobs Act(IIJA) (P.L. No. 117-58), Build America, Buy America (BABA)
A3.2 APPLICABILITY
The Buy American Preference incorporates statutory requirements and policies outlined in the in 49
U.S.C. § 50101, Executive Order 14005, and BABA.
Section 50101 of 49 U.S.C. requires that all steel and manufactured goods used on AIP projects be
produced in the United States. This section also gives the FAA the ability to issue a waiver to a Sponsor
to use non-domestic material on an AIP funded project subject to meeting certain conditions. A Sponsor
may request that the FAA issue a waiver from the Buy American Preference requirements if the FAA
finds that:
1) Applying the provision is not in the public interest.
2) The steel or manufactured goods are not available in sufficient quantity or quality in the United
States.
3) The cost of components and subcomponents produced in the United States is more than
60 percent of the total components of a facility or equipment procured, and final assembly has
taken place in the United States. Items that have an FAA standard specification item number
(such as specific airport lighting equipment) are considered the equipment.
4) Applying this provision would increase the cost of the overall project by more than 25 percent.
Executive Order 14005 advances the Administration's priority to use terms and conditions of Federal
financial assistance awards to maximize the use of goods, products, and materials produced in, and
services offered in,the United States.The Order directs,to the extent appropriate and consistent with
applicable law, agencies shall partner with the Hollings Manufacturing Extension Partnership (MEP)to
conduct supplier scouting in order to identify American companies that are able to produce goods,
products, and materials in the United States that meet Federal procurement needs, prior to
consideration of using non-domestic products.
The Infrastructure Investment and Jobs Act (IIJA), Build America, Buy America (BABA)Act strengthens
Made in America Laws and bolsters America's industrial base, protects national security, and supports
high-paying jobs. Under BABA, iron, steel and certain construction materials are required to be 100%
produced in the United States.
Under the Infrastructure Investment and Jobs Act (IIJA) (P. L. No. 117-58), BABA three waivers are
available for iron and steel, manufactured products, and construction materials when a Federal agency
finds that—
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 11
1) Applying the domestic content procurement preference would be inconsistent with the public
interest(a "public interest waiver");
2) Types of iron, steel, manufactured products, or construction materials are not produced in the
United States in sufficient and reasonably available quantities or of a satisfactory quality (a
"nonavailability waiver"); or
3) The inclusion of iron, steel, manufactured products, or construction materials produced in the
United States will increase the cost of the overall project by more than 25 percent (an
"unreasonable cost waiver").
BABA defines construction materials, items that are or consists primarily of non-ferrous metals, plastic
and polymer-based products (including polyvinylchloride, composite building materials, and polymers
used in fiber optic cables),glass (including optic glass), lumber or drywall.
Items that consist of two or more of the aforementioned materials that have been combined through a
manufacturing process, and items that include at least one of the listed materials combined with a
material that is not listed through a manufacturing process should be treated as manufactured products,
rather than as construction materials. For example, a plastic framed sliding window should be treated as
a manufactured product while plate glass should be treated as a construction material.
The Buy America Preference requirements flow down from the Sponsor to first tier contractors,who are
responsible for ensuring that lower tier contractors and subcontractors are also in compliance.
Note:The Buy American Preference does not apply to temporary equipment a contractor uses as a tool
of its trade, and which does not remain as part of the project.
Note: Section 768 of the FAA Reauthorization Act of 2024(Public Law 118-63), which became effective
on May 16, 2024, establishes specific requirements for the procurement of certain rolling stock using
FAA grant funds.The provision prohibits airports from using Federal financial assistance to procure
buses or rail car vehicles rolling stock from covered entities.
Required Documentation
The FAA Buy American Requests. All applications (requests)for an FAA Buy American Preference
Waiver includes, at minimum, a completed Content Percentage Worksheet and Final Assembly
Questionnaire. Additional information may be requested from the applicant by the FAA. Airport
Sponsors, consultants, construction contractors, or equipment manufacturers are responsible for
completing and submitting waiver applications.The FAA is unable to make a determination on waiver
requests with incomplete information. Sponsors must confirm with the bidder or offeror to assess the
adequacy of the waiver request and associated information prior to forwarding a waiver request to the
FAA for action. All FAA waivers forms are available from the FAA Buy American Requirements webpage.
Proprietary Confidentiality. Exemption 4 of the Freedom of Information Act protects "trade secrets and
commercial or financial information obtained from a person [that is] privileged or confidential.
Proprietary manufacturing and design information submitted to the Federal Aviation Administration for
the purposes of receiving a Buy American Waiver shall not be disclosed outside the FAA.The FAA will
provide a written notification to the Airport Sponsor, manufacturer(s), contractor(s) or supplier(s)when
a waiver determination is complete.
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Issued on March 17, 2026 Page 12
Timing of Waiver Requests. Sponsors desiring a Type 2 waiver should submit their waiver request, with
justification, before issuing a solicitation for bids or a request for proposal for a project.
The Sponsor must submit a Type 2,Type 3, or Type 4 waiver request prior to executing the contract.
The FAA will generally not consider waiver requests after execution of the contract except where
extraordinary and extenuating circumstances exist.
The Buy American Notice of Determination (NOD) Process. The FAA Reauthorization Act of 2024
requires that all approved waivers must be posted to the FAA's website and remain posted for public
comment for 10 days, before becoming effective. All FAA waivers must complete the NOD process.
Sponsors are encouraged to wait until approved waivers become effective before executing AIP
projects.
Buy American Conformance Lists. The FAA Office of Airports maintains listings of projects and products
that have received a waiver from the Buy American Preference requirements for project specific and
nationwide use. Each of these conformance lists is available online at
www.faa.gov/airports/aip/buy american/. Products listed on the FAA Nationwide Buy American
Conformance list do not require additional submittal of domestic content information. Nationwide
waivers expire five years from the date issued, unless revoked earlier by the FAA.
Facility Waiver Requests. For construction of a facility,the Sponsor may submit the waiver request
after bid opening, but prior to contract execution. Examples of facility construction include terminal
buildings,terminal renovation, and snow removal equipment buildings.
Contract Types—
Construction and Equipment—The Sponsor must meet the Buy American Preference
requirements of 49 USC§50101 and BABA for all AIP funded projects that require materials that
are or consists primarily of iron, steel or manufactured goods and construction materials.
Professional Services—Professional service agreements (PSAs)do not normally result in a
deliverable that meets the definition of a manufactured product. However,the emergence of
various project delivery methods has created situations where task deliverables under a PSA
may include a manufactured product. If a PSA includes providing a manufactured good as a
deliverable under the contract,the Sponsor must include the Buy American Preference
provision in the agreement.
Property—Most land transactions do not involve acquiring a manufactured product. However,
under certain circumstances, a property acquisition project could result in the installation of a
manufactured product. For example,the installation of property fencing, gates,doors and locks,
etc. represent manufactured products acquired under an AIP funded land project that must
comply with Buy American Preferences.
Use of Provisions—No mandatory language provided. The following language is acceptable to the FAA
and meets the intent of this requirement. If the Sponsor uses different language,the Sponsor's revised
language must fully comply with 49 U.S.C. §50101 and BABA.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 13
There are two types of FAA Buy American certifications. The Sponsor must incorporate the appropriate
certifications of compliance with FAA Buy American Preference in the solicitation:
• Construction Projects involving the replacement, rehabilitation, reconstruction of airfield
surfaces such as on runways,taxiways,taxilanes, aprons, roadways, parking lots, etc.—Insert
the Certificate of compliance to FAA Buy American Preference based on Construction Projects.
• Equipment and Buildings Projects involving and including the acquisition of equipment such as
snow removal equipment, navigational aids, wind cones, and the construction of buildings such
as hangars,terminal development, lighting vaults, aircraft rescue&firefighting buildings, etc. -
Insert the Certificate of Compliance with FAA Buy American Preference Based on
Equipment/Building Projects.
A3.3 MODEL SOLICITATION CLAUSES
A3.3.1 Certification of Compliance with FAA Buy American
Preference Statement
FAA BUY AMERICAN PREFERENCE
The Contractor certifies that its bid/offer is in compliance with 49 U.S.C. §50101, BABA and other
related Made in America Laws,' U.S. statutes, guidance, and FAA policies, which provide that Federal
funds may not be obligated unless all iron, steel and manufactured goods used in AIP funded projects
are produced in the United States, unless the Federal Aviation Administration has issued a waiver for
the product;the product is listed as an Excepted Article, Material Or Supply in Federal Acquisition
Regulation subpart 25.108; or is included in the FAA Nationwide Buy American Waivers Issued list.
The bidder or offeror must complete and submit the certification of compliance with FAA's Buy
American Preference, BABA and Made in America laws included herein with their bid or offer.The
Airport Sponsor/Owner will reject as nonresponsive any bid or offer that does not include a completed
certification of compliance with FAA's Buy American Preference and BABA.
The bidder or offeror certifies that all constructions materials, defined to mean an article, material, or
supply other than an item of primarily iron or steel; a manufactured product; cement and cementitious
materials; aggregates such as stone, sand, or gravel; or aggregate binding agents or additives that are
or consist primarily of: non-ferrous metals; plastic and polymer-based products (including
polyvinylchloride, composite building materials, and polymers used in fiber optic cables);glass
(including optic glass); lumber; or drywall used in the project are manufactured in the U.S.
z Per Executive Order 14005 "Made in America Laws"means all statutes,regulations,rules, and Executive Orders
relating to federal financial assistance awards or federal procurement,including those that refer to"Buy America"or
"Buy American,"that require,or provide a preference for,the purchase or acquisition of goods,products,or
materials produced in the United States,including iron, steel,and manufactured products offered in the United
States.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 14
The bidder or offeror certifies procurement of certain rolling stock using FAA grant funds will prohibit
airports from using Federal financial assistance to procure buses or rail car vehicle rolling stock from
covered entities.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 15
A3.3.2 Certification of Compliance with FAA Buy
American Preference — Construction Projects
As a matter of bid responsiveness,the bidder or offeror must complete, sign, date, and submit this
certification statement with its proposal. The bidder or offeror must indicate how it intends to comply
with 49 U.S.C. § 50101, BABA and other related Made in America Laws, U.S. statutes, guidance, and
FAA policies, by selecting one of the following certification statements. These statements are mutually
exclusive. Bidder must select one or the other(i.e., not both) by inserting a checkmark(u) or the letter
❑ Bidder or offeror hereby certifies that it will comply with 49 U.S.C. §50101, BABA and other
related U.S. statutes, guidance, and policies of the FAA by:
a) Only installing iron, steel and manufactured products produced in the United States;
b) Only installing construction materials defined as: an article, material, or supply—other
than an item of primarily iron or steel; a manufactured product; cement and
cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding
agents or additives that are or consist primarily of non-ferrous metals; plastic and
polymer-based products (including polyvinylchloride, composite building materials, and
polymers used in fiber optic cables); glass (including optic glass); lumber or drywall that
have been manufactured in the United States.
c) Installing manufactured products for which the Federal Aviation Administration (FAA)
has issued a waiver as indicated by inclusion on the current FAA Nationwide Buy
American Waivers Issued listing; or
d) Installing products listed as an Excepted Article, Material or Supply in Federal
Acquisition Regulation Subpart 25.108.
By selecting this certification statement, the bidder or offeror agrees:
a) To provide to the Airport Sponsor or the FAA evidence that documents the source and
origin of the iron, steel, and/or manufactured product.
b) To faithfully comply with providing U.S. domestic products.
c) To refrain from seeking a waiver request after establishment of the contract, unless
extenuating circumstances emerge that the FAA determines justified.
d) Certify that all construction materials used in the project are manufactured in the U.S.
❑ The bidder or offeror hereby certifies it cannot comply with the 100 percent Buy American
Preferences of 49 U.S.C. §50101(a) but may qualify for a Type 3 or Type 4 waiver under 49 USC
§50101(b). By selecting this certification statement,the apparent bidder or offeror with the
apparent low bid agrees:
a) To the submit to the Airport Sponsor or FAA within 15 calendar days of being selected as
the responsive bidder, a formal waiver request and required documentation that
supports the type of waiver being requested.
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Issued on March 17, 2026 Page 16
b) That failure to submit the required documentation within the specified timeframe is
cause for a non-responsive determination that may result in rejection of the proposal.
c) To faithfully comply with providing U.S. domestic products at or above the approved
U.S. domestic content percentage as approved by the FAA.
d) To furnish U.S. domestic product for any waiver request that the FAA rejects.
e) To refrain from seeking a waiver request after establishment of the contract, unless
extenuating circumstances emerge that the FAA determines justified.
Required Documentation
Type 2 Waiver(Nonavailability)-The iron, steel, manufactured goods or construction materials or
manufactured goods are not available in sufficient quantity or quality in the United States.The
required documentation for the Nonavailability waiver is
a) Completed Content Percentage Worksheet and Final Assembly Questionnaire
b) Record of thorough market research, consideration where appropriate of qualifying alternate
items, products, or materials including;
c) A description of the market research activities and methods used to identify domestically
manufactured items capable of satisfying the requirement, including the timing of the research
and conclusions reached on the availability of sources.
Type 3 Waiver—The cost of components and subcomponents produced in the United States is more
than 60 percent of the cost of all components and subcomponents of the "facility/project."The
required documentation for a Type 3 waiver is:
a) Completed Content Percentage Worksheet and Final Assembly Questionnaire including;
b) Listing of all manufactured products that are not comprised of 100 percent U.S. domestic
content (excludes products listed on the FAA Nationwide Buy American Waivers Issued listing
and products excluded by Federal Acquisition Regulation Subpart 25.108; products of unknown
origin must be considered as non-domestic products in their entirety).
c) Cost of non-domestic components and subcomponents, excluding labor costs associated with
final assembly and installation at project location.
d) Percentage of non-domestic component and subcomponent cost as compared to total "facility"
component and subcomponent costs, excluding labor costs associated with final assembly and
installation at project location.
Type 4 Waiver(Unreasonable Costs) -Applying this provision for iron, steel, manufactured goods or
construction materials would increase the cost of the overall project by more than 25 percent.The
required documentation for this waiver is:
a) A completed Content Percentage Worksheet and Final Assembly Questionnaire from
b) At minimum two comparable equal bids and/or offers;
c) Receipt or record that demonstrates that supplier scouting called for in Executive Order 14005,
indicates that no domestic source exists for the project and/or component;
d) Completed waiver applications for each comparable bid and/or offer.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 17
False Statements: Per 49 USC§47126,this certification concerns a matter within the jurisdiction of the
Federal Aviation Administration and the making of a false,fictitious, or fraudulent certification may
render the maker subject to prosecution under Title 18, United States Code.
Date Signature
Company Name Title
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 18
A3.3.3 Certification of Compliance with FAA Buy
American Preference — Equipment/Building
Projects
As a matter of bid responsiveness,the bidder or offeror must complete, sign, date, and submit this
certification statement with their proposal. The bidder or offeror must indicate how they intend to
comply with 49 U.S.C. §50101, and other Made in America Laws, U.S. statutes, guidance, and FAA
policies by selecting one on the following certification statements. These statements are mutually
exclusive. Bidder must select one or the other(not both) by inserting a checkmark(u) or the letter"X".
❑ Bidder or offeror hereby certifies that it will comply with 49 U.S.C. §50101, BABA and other
related U.S. statutes, guidance, and policies of the FAA by:
a) Only installing steel and manufactured products produced in the United States;
b) Only installing construction materials defined as: an article, material, or supply—other
than an item of primarily iron or steel; a manufactured product; cement and
cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding
agents or additives that are or consist primarily of non-ferrous metals; plastic and
polymer-based products (including polyvinylchloride, composite building materials,
and polymers used in fiber optic cables);glass (including optic glass); lumber or drywall
that have been manufactured in the United States.
c) Installing manufactured products for which the Federal Aviation Administration (FAA)
has issued a waiver as indicated by inclusion on the current FAA Nationwide Buy
American Waivers Issued listing; or
d) Installing products listed as an Excepted Article, Material or Supply in Federal
Acquisition Regulation Subpart 25.108.
By selecting this certification statement, the bidder or offeror agrees:
a) To provide to the Airport Sponsor or FAA evidence that documents the source and
origin of the steel and manufactured product.
b) To faithfully comply with providing U.S. domestic product.
c) To furnish U.S. domestic product for any waiver request that the FAA rejects.
d) To refrain from seeking a waiver request after establishment of the contract, unless
extenuating circumstances emerge that the FAA determines justified.
❑ The bidder or offeror hereby certifies it cannot comply with the 100 percent Buy American
Preferences of 49 U.S.C. §50101(a) but may qualify for a Type 3 waiver under 49 U.S.C. §
50101(b). By selecting this certification statement,the apparent bidder or offeror with the
apparent low bid agrees:
a) To submit to the Airport Sponsor or FAA within 15 calendar days of being selected as
the responsive bidder, a formal waiver request and required documentation that
supports the type of waiver being requested.
b) That failure to submit the required documentation within the specified timeframe is
cause for a non-responsive determination that may result in rejection of the proposal.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 19
c) To faithfully comply with providing U.S. domestic products at or above the approved
U.S. domestic content percentage as approved by the FAA.
d) To refrain from seeking a waiver request after establishment of the contract, unless
extenuating circumstances emerge that the FAA determines justified.
Required Documentation
Type 2 Waiver(Nonavailability)-The iron, steel, manufactured goods or construction materials are
not available in sufficient quantity or quality in the United States.The required documentation for the
Nonavailability waiver is:
a) Completed Content Percentage Worksheet and Final Assembly Questionnaire
b) Record of thorough market research, consideration where appropriate of qualifying
alternate items, products, or materials including;
c) A description of the market research activities and methods used to identify
domestically manufactured items capable of satisfying the requirement, including the
timing of the research and conclusions reached on the availability of sources.
Type 3 Waiver—The cost of the item components and subcomponents produced in the United States
is more that 60 percent of the cost of all components and subcomponents of the "item".The required
documentation for a Type 3 waiver is:
a) Completed Content Percentage Worksheet and Final Assembly Questionnaire including;
b) Listing of all product components and subcomponents that are not comprised of 100
percent U.S. domestic content (Excludes products listed on the FAA Nationwide Buy
American Waivers Issued listing and products excluded by Federal Acquisition
Regulation Subpart 25.108(products of unknown origin must be considered as non-
domestic products in their entirety).
c) Cost of non-domestic components and subcomponents, excluding labor costs associated
with final assembly at place of manufacture.
d) Percentage of non-domestic component and subcomponent cost as compared to total
"item" component and subcomponent costs, excluding labor costs associated with final
assembly at place of manufacture.
Type 4 Waiver(Unreasonable Costs) -Applying this provision for iron, steel, manufactured goods or
construction materials, would increase the cost of the overall project by more than 25 percent. The
required documentation for this waiver is:
a) Completed Content Percentage Worksheet and Final Assembly Questionnaire from
b) At minimum two comparable equal bidders and/or offerors;
c) Receipt or record that demonstrates that supplier scouting called for in Executive Order
14005, indicates that no domestic source exists for the project and/or component;
d) Completed waiver applications for each comparable bid and/or offer.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 20
False Statements: Per 49 U.S.C. §47126,this certification concerns a matter within the jurisdiction of
the Federal Aviation Administration and the making of a false,fictitious, or fraudulent certification may
render the maker subject to prosecution under Title 18, United States Code.
Date Signature
Company Name Title
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 21
A4 CIVIL RIGHTS - GENERAL
A4.1 SOURCE
49 U.S.C. §47123
A4.2 APPLICABILITY
There are two separate civil rights provisions that apply to projects:
1. FAA General Civil Rights Provision and,
2. Title VI provisions,which are addressed in Appendix A5.
Contract Types—The General Civil Rights Provisions found in 49 U.S.C. §47123, derived from the Airport
and Airway Improvement Act of 1982, Section 520, apply to all Sponsor contracts regardless of funding
source.
Use of Provision—MANDATORY TEXT. Each contract must include two civil rights provisions.The first
general clause must be included in all contracts, lease agreements, or transfer agreements.An
additional specific provision must be included;the applicable text is based on whether the contract is a
general contract or whether the contract is a lease or transfer agreement.The Sponsor must incorporate
the text of the General Clause and the appropriate Specific Clause without modification into the
contract, lease, or transfer agreement.
The required clauses for each type of contact are summarized in the table below:
Contract Clause The Sponsor must include the contract Clause Text is
clause in: Included in
Paragraph
General Clause that is used for all Every contract or agreement regardless of A4.3.1
contracts, lease agreements and funding source.
transfer agreements
Specific Clause that is used for This applies to all contracts that do not A4.3.2
general contract agreements involve property agreements. It applies to
all contracts not covered by A5.3.3
regardless of funding source.
Specific Clause that is used for lease This applies to all property agreements A4.3.3
agreements and transfer agreements such leases of concession space in a
terminal and leases where a physical
portion of the airport is transferred for
use. It applies to all contracts not covered
by A5.3.2 regardless of funding source.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 22
A4.3 MANDATORY CONTRACT CLAUSES
A4.3.1 General Clause that is used for Contracts, Lease
Agreements, and Transfer Agreements
GENERAL CIVIL RIGHTS PROVISIONS
In all its activities within the scope of its airport program,the Contractor agrees to comply with
pertinent statutes, Executive Orders, and such rules as identified in Title VI List of Pertinent
Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race, color,
national origin, creed, sex, age, or disability be excluded from participating in any activity conducted
with or benefiting from Federal assistance.
This provision is in addition to that required by Title VI of the Civil Rights Act of 1964.
A4.3.2 Specific Clause that is used for General Contract
Agreements
The above provision binds the Contractor and subcontractors from the bid solicitation period through
the completion of the contract.
A4.3.3 Specific Clause that is used for Lease Agreements
or Transfer Agreements
If the Contractor transfers its obligation to another,the transferee is obligated in the same manner as
the Contractor.
The above provision obligates the Contractor for the period during which the property is owned, used
or possessed by the Contractor and the airport remains obligated to the Federal Aviation
Administration.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
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A5 CIVIL RIGHTS — TITLE VI ASSURANCE
A5.1 SOURCE
49 U.S.C. §47123
FAA Order 1400.11
A5.2 APPLICABILITY
Title VI of the Civil Rights Act of 1964, as amended, (Title VI) prohibits discrimination on the grounds of
race, color, or national origin under any program or activity receiving Federal financial assistance.
Sponsors must include appropriate clauses from the Standard DOT Title VI Assurances in all contracts
and solicitations.
The text of each individual clause comes from the U.S. Department of Transportation Order DOT 1050.2,
Standard Title V/Assurances and Nondiscrimination Provisions, effective April 24, 2013. These
assurances require that the Recipient (the Sponsor) insert the appropriate clauses in the form provided
by the DOT. Where the clause refers to the applicable activity, project, or program, it means the AIP
project.
The clauses are as follows:
AS.2.1 Applicability of Title VI Solicitation Notice
Contract Clause The Sponsor must include the contract Clause Text is
clause in: Included in
Paragraph
Title VI Solicitation Notice— 1) All AIP funded solicitations for bids, A5.3.1
• Assurance 2 of the DOT requests for proposals, or any work
Standard Title VI Assurances subject to Title VI regulations
regardless of funding source; and
and Nondiscrimination 2) All Sponsor proposals for negotiated
Clauses agreements regardless of funding
• Assurance 30(d) of the source.
Airport Sponsors Assurances
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 24
Contract Clause The Sponsor must include the contract Clause Text is
clause in: Included in
Paragraph
Title VI List of Pertinent Insert this list in every contract or A5.4.1
Nondiscrimination Acts and agreement, unless the Sponsor has List must be
Authorities determined, and the FAA concurs,that the included in all
• Assurance 3 of the DOT contract or agreement is not subject to applicable
Standard Title VI Assurances the Nondiscrimination Acts and contracts.
and Nondiscrimination
Authorities, which is a rare occurrence.
Clauses This list can only be omitted if the FAA
has determined that the contractor or
• Assurance 30(e)(2)of the company is already subject to
Airport Sponsor Assurances substantively identical nondiscrimination
requirements.
Title VI Clauses for Compliance with Insert this clause in every contract or A5.4.2
Nondiscrimination Requirements agreement, unless the Sponsor has Clause must be
• Assurance 3 of the DOT determined, and the FAA concurs,that the included in all
Standard Title VI Assurances contract or agreement is not subject to applicable
and Nondiscrimination the Nondiscrimination Acts and contracts.
Clauses Authorities, which is a rare occurrence.
Assurance 30(e)(1)of the Airport It has been determined that service
Sponsor Assurances
contracts with utility companies that are
not already subject to substantively
identical nondiscrimination requirements
must include this clause.
Title VI Required Clause for Property As a covenant running with the land, in A5.4.3
Interests Transferred from the any deed from the United States effecting
United States or recording a transfer of real property,
• Assurance 4 of the DOT structures, use, or improvements thereon
Standard Title VI Assurances or interest therein to a Sponsor.
and Nondiscrimination This is a rare occurrence, and it will be the
Clauses responsibility of the United States
• Assurance 30e.3 of the government to include the clause in the
Airport Sponsor Assurances contract.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 25
Contract Clause The Sponsor must include the contract Clause Text is
clause in: Included in
Paragraph
Title VI Required Clause for Transfer As a covenant running with the land, in A5.4.4
of Real Property Acquired or any future deeds, leases, licenses, permits,
Improved Under the Activity, Facility or similar instruments entered into by the
or Program— Sponsor with other parties for all transfers
• Assurance 5 of the DOT of real property acquired or improved
Standard Title VI Assurances under Airport Improvement Program
and Nondiscrimination This applies to agreements such as leases
Clauses where a physical portion of the airport is
transferred for use,for example a fuel
• Assurance 30(e)(4)(a)of the farm, apron space, or a parking facility. It
Airport Sponsor Assurances applies to agreements not covered by
A5.4.4.
Clause for Construction/Use/Access In any future (deeds, leases, licenses, A5.4.5
to Real Property Acquired Under the permits, or similar instruments) entered
Activity, Facility or Program into by the Sponsor with other parties for
• Assurance 6 of the DOT the construction or use of, or access to,
Standard Title VI Assurances space on, over, or under real property
and Nondiscrimination
acquired or improved under Airport
Clauses Improvement Program
• Assurance 30(e)(4)(b) of the This applies to agreements such as leases
Airport Sponsor Assurances of concession space in a terminal not
covered by A5.4.3.
A5.3 MANDATORY SOLICITATION CLAUSE
The Sponsor must include this clause in:
1) All AIP funded solicitations for bids, requests for proposals, or any work subject to Title VI
regulations regardless of funding source; and
2) All Sponsor proposals for negotiated agreements regardless of funding source.
AS.3.1 Title VI Solicitation Notice
Title VI Solicitation Notice:
The (Title of Recipient), in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78
Stat. 252,42 U.S.C. §§ 2000d to 2000d-4), 28 CFR§50.3, and 49 CFR Part 21, hereby notifies all bidders
that it will affirmatively ensure that any contract entered into pursuant to this advertisement, all
contractors will be afforded full opportunity to submit bids in response to this invitation and will not be
discriminated against on the grounds of the owner's race, color, national origin, sex, creed, age, or
disability in consideration for an award.
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 26
A5.4 MANDATORY CONTRACT CLAUSES
A5.4.1 Title VI List of Pertinent Nondiscrimination Acts
and Authorities
Insert this list in every contract or agreement, unless the Sponsor has determined and the FAA concurs,
that the contract or agreement is not subject to the Nondiscrimination Acts and Authorities. This list can
be omitted if the FAA has determined that the contractor or company is already subject to
nondiscrimination requirements,which is a rare occurrence.
Title VI List of Pertinent Nondiscrimination Acts and Authorities
During the performance of this contract,the Contractor,for itself, its assignees, and successors in
interest(hereinafter referred to as the "Contractor") agrees to comply with the following non-
discrimination statutes and authorities; including but not limited to:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits
discrimination on the basis of race, color, national origin);
• 49 CFR Part 21 (Non-discrimination in Federally-Assisted programs of the Department of
Transportation—Effectuation of Title VI of the Civil Rights Act of 1964) including amendments
thereto;
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C.
§4601) (prohibits unfair treatment of persons displaced or whose property has been acquired
because of Federal or Federal-aid programs and projects);
• Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §794 etseq.), as amended (prohibits
discrimination on the basis of disability); and 49 CFR part 27 (Nondiscrimination on the Basis of
Disability in Programs or Activities Receiving Federal Financial Assistance);
• The Age Discrimination Act of 1975, as amended (42 .U.S.C. §6101 et seq.) (prohibits
discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982 (49 U.S.C. §47123), as amended (prohibits
discrimination based on race, creed, color, national origin, or sex);
• The Civil Rights Restoration Act of 1987 (P.L. 100-259) (broadened the scope, coverage and
applicability of Title VI of the Civil Rights Act of 1964,the Age Discrimination Act of 1975 and
Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms
"programs or activities"to include all of the programs or activities of the Federal-aid recipients,
sub-recipients and contractors,whether such programs or activities are Federally funded or
not);
• Titles II and III of the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101, et seq) (prohibit
discrimination on the basis of disability in the operation of public entities, public and private
transportation systems, places of public accommodation, and certain testing entities) as
implemented by U.S. Department of Transportation regulations at 49 CFR Parts 37 and 38;
• Title IX of the Education Amendments of 1972, as amended,which prohibits you from
discriminating because of sex in education programs or activities (20 U.S.C. § 1681, et seq).
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 27
A5.4.2 Nondiscrimination Requirements/Title VI Clauses
for Compliance
The Sponsor must include this contract clause in:
1) Every contract or agreement (unless the Sponsor has determined, and the FAA concurs,
that the contract or agreement is not subject to the Nondiscrimination Acts and
Authorities); and
2) Service contracts with utility companies that are not already subject to substantively
identical nondiscrimination requirements.
3) Other types of contracts with utility companies involving property covered by A5.4.2,
A5.4.3, or A5.4.4.
Compliance with Nondiscrimination Requirements:
During the performance of this contract,the Contractor,for itself, its assignees, and successors in
interest(hereinafter referred to as the "Contractor"), agrees as follows:
1. Compliance with Regulations:The Contractor(hereinafter includes consultants)will comply
with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be
amended from time to time, which are herein incorporated by reference and made a part of
this contract.
2. Nondiscrimination: The Contractor,with regard to the work performed by it during the
contract,will not discriminate on the grounds of race, color, national origin), creed, sex, age,
or disability in the selection and retention of subcontractors, including procurements of
materials and leases of equipment. The Contractor will not participate directly or indirectly
in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including
employment practices when the contract covers any activity, project, or program set forth in
Appendix B of 49 CFR part 21 including amendments thereto.
3. Solicitations for Subcontracts, including Procurements of Materials and Equipment: In all
solicitations, either by competitive bidding or negotiation made by the Contractor for work
to be performed under a subcontract, including procurements of materials, or leases of
equipment, each potential subcontractor or supplier will be notified by the Contractor of the
contractor's obligations under this contract and the Nondiscrimination Acts and Authorities
on the grounds of race, color, or national origin.
4. Information and Reports: The Contractor will provide all information and reports required
by the Acts,the Regulations, and directives issued pursuant thereto and will permit access
to its books, records, accounts, other sources of information, and its facilities as may be
determined by the Sponsor or the Federal Aviation Administration to be pertinent to
ascertain compliance with such Nondiscrimination Acts and Authorities and instructions.
Where any information required of a contractor is in the exclusive possession of another
who fails or refuses to furnish the information,the Contractor will so certify to the Sponsor
or the Federal Aviation Administration, as appropriate, and will set forth what efforts it has
made to obtain the information.
5. Sanctions for Noncompliance: In the event of a Contractor's noncompliance with the non-
discrimination provisions of this contract,the Sponsor will impose such contract sanctions as
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 28
it or the Federal Aviation Administration may determine to be appropriate, including, but
not limited to:
a. Withholding payments to the Contractor under the contract until the Contractor
complies; and/or
b. Cancelling,terminating, or suspending a contract, in whole or in part.
6. Incorporation of Provisions:The Contractor will include the provisions of paragraphs one
through six in every subcontract, including procurements of materials and leases of
equipment, unless exempt by the Acts,the Regulations, and directives issued pursuant
thereto. The Contractor will take action with respect to any subcontract or procurement as
the Sponsor or the Federal Aviation Administration may direct as a means of enforcing such
provisions including sanctions for noncompliance. Provided,that if the Contractor becomes
involved in, or is threatened with litigation by a subcontractor, or supplier because of such
direction,the Contractor may request the Sponsor to enter into any litigation to protect the
interests of the Sponsor. In addition,the Contractor may request the United States to enter
into the litigation to protect the interests of the United States.
A5.4.3 Title VI Clauses for Deeds Transferring United
States Property
This is a rare occurrence, and it will be the responsibility of the United States government to include the
clause in the contract. It will be included as a covenant running with the land, in any deed from the
United States effecting or recording a transfer of real property, structures, use, or improvements
thereon or interest therein to a Sponsor.
CLAUSES FOR DEEDS TRANSFERRING UNITED STATES PROPERTY
The following clauses will be included in deeds effecting or recording the transfer of real property,
structures, or improvements thereon, or granting interest therein from the United States pursuant to
the provisions of the Airport Improvement Program grant assurances:
NOW,THEREFORE,the Federal Aviation Administration as authorized by law and upon the condition
that the (Title of Sponsor)will accept title to the lands and maintain the project constructed thereon in
accordance with (Name of Appropriate Legislative Authority),for the(Airport Improvement Program
or other program for which land is transferred), and the policies and procedures prescribed by the
Federal Aviation Administration of the U.S. Department of Transportation in accordance and in
compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department
of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted
programs of the U.S. Department of Transportation pertaining to and effectuating the provisions of
Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 USC§§2000d to 2000d-4), does hereby remise,
release, quitclaim and convey unto the (Title of Sponsor) all the right,title and interest of the U.S.
Department of Transportation/Federal Aviation Administration in and to said lands described in
(ExhibitA attached hereto or other exhibit describing the transferred property) and made a part
hereof.
Signature: sC�
Email: sabrina.cotta@ashland.or.us
Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects
Issued on March 17, 2026 Page 29
Pilot Rock Contract (compressed)
Final Audit Report 2026-06-25
Created: 2026-06-25
By: Tami Campos(tami.campos@ashland.or.us)
Status: Signed
Transaction ID: CBJCHBCAABAAvTs1_hBeijZMPOdO_NQrWCZovPwfb9gN
"Pilot Rock Contract (compressed)" History
Document created by Tami Campos (tami.campos@ashland.or.us)
2026-06-25-7:05:08 PM GMT
Document emailed to Sabrina Cotta (sabrina.cotta@ash land.or.us) for signature
2026-06-25-7:05:20 PM GMT
Email viewed by Sabrina Cotta (sabrina.cotta@ashland.or.us)
2026-06-25-7:21:27 PM GMT
Document e-signed by Sabrina Cotta (sabri na.cotta@ash land.or.us)
Signature Date:2026-06-25-7:21:51 PM GMT-Time Source:server-Signature Appearance Selected: IMAGE
Agreement completed.
2026-06-25-7:21:51 PM GMT
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