14-22.002. Regulations Covering Qualification of Contractors

(1) Application for Qualification.

(a) Persons or firms who request to qualify to bid for the performance of road, bridge, or public transportation construction projects in excess of $250,000, shall file an annual Application for Qualification, (Online Web Application), Form 375-020-38, Rev. 11/07, http://www.flrules.org/Gateway/reference.asp?No=Ref-03119 hereby incorporated by reference. An Application for Qualification shall be filed electronically at http://www.dot.state.fl.us/cc-admin/PreQual_Info/prequalified.shtm. Information or assistance regarding the Application can be obtained from the Department at the address listed below. Persons or firms may obtain information on how to obtain a user name and password to use the Application filing process by contacting the Contracts Administration Office at the address below. The Application will consist of requested information on the Applicant, Applicant’s stakeholders, Applicant’s affiliates, and shall include the Applicant firm’s background, current and historical contract detail, construction experience and expertise, financial information, and requested work classes. In addition, one original hard copy of the financial statements must be hand-delivered or mailed to: Department of Transportation, Contracts Administration Office, 605 Suwannee Street, MS #55, Haydon Burns Building, Tallahassee, Florida 32399-0455, [phone] or [e-mail], and must be received prior to qualification approval.

(b) A separate application must be submitted for each person, firm, or combination thereof for which qualification is requested.

(c) The applicant must indicate the classes of work for which qualification is requested.

(d) All statements made by the applicant shall be furnished under oath.

(e) The data in the applicant’s financial statement shall be reflected in the financial sections of the application.

(f) All applications must include the appropriate federal tax reference number.

1. For corporations (including Subchapter S corporations), partnerships, sole proprietorships, joint ventures, limited liability companies, and other entities, the appropriate tax reference number is the federal Employer Identification Number (EIN).

2. For individuals, the appropriate tax reference number is the Social Security Number (SSN) of the individual.

3. For foreign corporations organized outside the United States, the Department will assign a special identification number.

(g) In the event the Department finds an application is incomplete or contains inadequate or inaccurate information for processing the application, or the Department needs more information to make a decision regarding the applicant’s competency, responsibility, or financial resources, the Department shall verbally or in writing request that the applicant provide the necessary information or the source for verification of the information. If the requested information is not provided within 20 days of the initial request, the Department shall request the information a second time via email or in writing express delivery, delivery receipt. If the information is not provided within 10 days of receipt of the second request, the application shall be denied.

(h) The Department shall act upon the application for qualification within 30 days from when the Department determines that the application is complete.

(2) Financial statements shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP). If the financial statements show the financial condition of the applicant more than four months prior to the date on which the application is filed with the Contracts Administration Office, then an updated application and interim financial statements are required. The interim financial statements shall cover the period from the ending date of the annual statements and shall show the financial condition of the applicant no more than four months prior to the date on which the application is filed. The annual and interim financial statements must be audited or reviewed, as required. Audited financial statements must be accompanied by the opinion of a Certified Public Accountant. Reviewed financial statements must be accompanied by a review report prepared by a Certified Public Accountant.

(a) An adverse audit opinion or disclaimer of an audit opinion shall result in disapproval of the application. A qualified audit opinion will result in adjustments to the financial portions of the application if such qualification arises because of the use of an accounting principle at variance with GAAP, or the qualification is of such magnitude as to materially affect the current ratio, liabilities, or adjusted net worth.

(b) When consolidated financial statements are required by GAAP, and qualification is requested for one or more of the subsidiary companies, a consolidating balance sheet is required and shall be included by the Certified Public Accountant. When combined financial statements are allowed by GAAP, and qualification is desired for one of the combining affiliated entities, a combining balance sheet is required and must be included by the Certified Public Accountant.

1. For those applications described in paragraph (2)(b), financial information entered in the Details Relative to Assets and Details Relative to Liabilities sections of the application shall be obtained from the consolidating or combining balance sheets, as appropriate, and reflect only those portions of the financial statements relative to the applicant.

2. Only the financial data of the applicant, as shown on the consolidating or combining balance sheets and reflected in the application, will be used in determining the applicant’s Current Ratio Factor (CRF), Adjusted Net Worth (ANW), and Maximum Capacity Rating (MCR), as defined in Rule 14-22.003, F.A.C.

(c) The financial statements shall include the following:

1. A balance sheet.

2. An income statement, including separate totals for construction revenues, and all revenues earned during the period covered.

3. A statement of retained earnings or changes in stockholders’ equity.

4. A statement of cash flows.

5. A consolidating or combining balance sheet, when required by paragraph 14-22.002(2)(b), F.A.C.

6. Notes to financial statements.

7. For projects over $1,000,000, with the exception of Emergency Debris Removal only contracts, the opinion of a Certified Public Accountant. For projects over $250,000 but under $1,000,000, a review report prepared by a Certified Public Accountant.

8. Upon written request, any additional financial information necessary for the Department to verify the financial adequacy of the applicant as presented in their financial statements.

(d) Applicants not qualified with the Department the previous year shall furnish financial statements for a minimum twelve (12) month period showing the financial condition of the applicant no more than four (4) months prior to the date on which the application is filed. Applicants established for less than one year shall furnish financial statements from establishment through a period no more than four months prior to the date on which the Application is filed.

(3) List of Equipment. Each major item of equipment owned by the applicant that is utilized in performing the requested classes of work shall be listed in the application with its book or salvage value, make, model, and description shown. Items held under capital lease agreements shall be identified so that the book value of these items can be readily determined. Items required for each class of work may be grouped together, but shall be listed separately. An applicant who requests that the value of the equipment owned be calculated on 50 percent of appraised value shall provide an additional list which includes an appraisal by a qualified equipment appraiser. For an appraisal to be valid, the appraiser shall state that they have personally inspected and/or examined the equipment. Certified statements of availability of equipment from affiliated companies may be used for obtaining classes of work. The same equipment may be used to qualify no more than two affiliated applicants. Letters of commitment from at least two equipment rental companies may be used to obtain certification in classes of work in which the applicant has expertise. The letters of commitment must list the equipment that the applicant intends to lease for the classes of work sought, and commit the lessor for the maximum period of qualification requested.

(4) Experience Record.

(a) Each application shall include a current list of projects completed within the past three years by the applicant as prime or subcontractor stating the actual dollar amount of work executed and listing each class of work performed on those projects by the applicant’s own employees. The list shall not include work sublet to others or performed with rented equipment and operators. Résumés must be submitted to show the construction experience of personnel at a superintendent level or above for each class of work for which the applicant is requesting qualification. The same list of personnel shall not be used to qualify more than two affiliated applicants.

(b) Newly established firms, applicants qualifying for the first time, and applicants whose Certificate of Qualification has been expired for more than two years, shall provide letters of recommendation from at least two agencies or firms with direct knowledge of the applicant’s key personnel and work performance in sufficient detail to assist in rating the applicant’s ability to perform road and bridge construction and services incidental thereto. The letters must contain specific information regarding the following:

1. Specific projects, including project numbers and location.

2. Size of projects by dollar value.

3. Description of projects and classes of work performed with applicant’s own employees and equipment.

4. Whether projects were timely completed.

5. Whether the applicant was cooperative and facilitated changes to projects when required.

Rulemaking Authority 334.044(2), 337.14(1) FS. Law Implemented 337.11, 337.14, 337.164, 337.167 FS. History–(Formerly Chapter 14-8), New 7-1-67, 8-20-68, 5-9-70, 1-6-72, 9-24-75, Formerly 14-22.01(1), (2), (3), Amended 3-23-79, 11-10-82, 8-25-83, 10-1-85, Formerly 14-22.02, Amended 12-20-89, 6-27-90, 1-4-94, 7-1-95, 6-27-04, 5-15-06, 1-23-08, 10-10-10, 4-13-14.