Rule Chapter 14-22, F.A.C., is being amended to update the requirements of the application process, to clarify the submittal of financial statements, to define accounting terms, and their effect on the Adjusted Net Worth, to establish the work class ...

 

DEPARTMENT OF TRANSPORTATION
Departmental

RULE NO: RULE TITLE
14-22.002: Regulations Covering Qualification of Contractors
14-22.003: Rating the Applicant
14-22.005: Period of Validity of Qualification
14-22.006: Current Capacity Rating
14-22.008: Eligibility for Obtaining Proposal Documents
14-22.0042: Notification of Conviction of Contract Crime
PURPOSE AND EFFECT: Rule Chapter 14-22, F.A.C., is being amended to update the requirements of the application process, to clarify the submittal of financial statements, to define accounting terms, and their effect on the Adjusted Net Worth, to establish the work class of Emergency Debris Removal, to clarify the Period of Validity of Qualification, and to clarify the Department’s definition of eligibility for obtaining bid proposal documents, and to update forms.
SUMMARY: Rule Chapter 14-22, F.A.C., is being amended and clarified. These amendments include updating the application process, revising definitions, establishing the work class of Emergency Debris Removal, clarifying the definition of eligibility for obtaining bid proposal documents, and updating forms.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 334.044(2) FS., 337.14(1) FS.
LAW IMPLEMENTED: 120.569 FS., 337.11(3)(b) FS., 337.11(5)(a)1.- 3. FS., 337.11 (7)(b)1. FS., 337.11(7)(c) FS., 337.14 FS., 337.16 FS., 337.165 FS., 337.167 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: James C. Myers, Clerk of Agency Proceedings, Florida Department of Transportation, Office of the General Counsel, 605 Suwannee Street, Mail Station 58, Tallahassee, Florida 32399-0458.

THE FULL TEXT OF THE PROPOSED RULE IS:

14-22.002 Regulations Covering Qualification of Contractors.

(1) Application for Qualification.

(a) Persons or firms who desire to qualify with the Department in order to bid for the performance of road, bridge, or public transportation construction projects in excess of $250,000, shall file annually with the Department two copies of an application for qualification including audited financial statements as required by this section.  For purposes of this rule, “filing” is defined as receipt of the application and audited financial statements by the Contracts Administration Office, MS 55, Room 60, Haydon Burns Building, 605 Suwannee Street, Tallahassee, Florida 32399-0455.

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

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

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

(e) The data in the applicant’s financial statement must 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 needed for processing of 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 request or request in writing 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 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 after the Department determines that the application is complete. 

(2) Financial Statements. Each application shall include be accompanied by the latest annual audited financial statements including any supplementary information and schedules of the applicant that were completed within the last 12 months.  Audited financial statements required to be submitted with the application shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP).  If the audited annual 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 audited interim financial statements must also be submitted.  The audited interim  financial statements must cover the period from the ending date of the audited annual statements and must show the financial condition of the applicant no more than four months prior to the date on which the application is filed with the Contracts Administration Office.  These annual and interim financial statements must be audited and accompanied by the opinion of a Certified Public Accountant.

(a)  An adverse opinion or a disclaimer of an opinion shall result in disapproval of the application.  A qualified 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 Generally Accepted Accounting Principles (GAAP) or the qualification is of such magnitude as to materially affect the current ratio, liabilities, or the adjusted net worth.

(b) When consolidated financial statements are required by GAAP, and qualification is desired for one or more of the subsidiary companies, a consolidating balance sheet is required and must 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) above, financial information entered in the Details Relative to Assets and Details Relative to Liabilities sections of the Application for Qualification must be obtained from the consolidating or combining balance sheets, as appropriate, and reflect only those portions of the financial statements relative to the qualifying 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).

(c) The financial statements shall include, but shall not be restricted to the following basic financial statements:

1. Statements (a. through d.) shown below and the opinion of the certified public accountant on these statements.

a. A balance sheet.

b. An income statement.

c. A statement of retained earnings or changes in stockholders equity.

d. A statement of cash flows.

2. The Income Statement above shall provide separate totals for Aconstruction revenues@, as defined by Rule paragraph 14-22.0011(3)(h), and all revenues earned during the audit period.

3. Notes to financial statements.

4. Supplemental data including a schedule of selling, general and administrative expenses, and a schedule of contracts in progress. A statement of direct (operational) costs and a statement of indirect (general and administrative) costs.

5. Upon written request, such additional financial information necessary for the Department to verify the financial adequacy of the applicant as presented in their financial statements and the opinion of the Certified Public Accountant.

(d) Applicants not qualified with the Department the previous year shall furnish financial statements with each copy of the application form that covers the year preceding the year of the latest annual audited financial statements included in the application.  This requirement is not applicable for newly established (in existence less than one year) firms.

(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 listed separately. An applicant who desires 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 must 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 the applicant is seeking qualification.

(4) Experience Record.

(a) Each application shall include a current list of projects completed within the past three years 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 construction experience of personnel at superintendent level and 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 the project when required.

Specific Authority 334.044(2) FS., 337.14(1) FS., 337.167 FS. Law Implemented 337.14 FS., 337.164 FS., 337.167 FS. Formerly Chapter 14-8, Amended 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,________.

 

14-22.003 Rating the Applicant.

(1) Verification of Information. The Department will make such inquiries and investigations as deemed necessary to verify and evaluate whether the applicant is competent, is responsible, and possesses the necessary financial resources to perform the desired work, based upon the following:

(a) Organization and management, including construction experience, and past work performance record of the applicant or applicant’s employees, whether with or prior to their employment by that applicant, including deficiency in quality of completed work, any history of payment of liquidated damages, untimely completion of projects where liquidated damages were not paid, uncooperative attitude, contracts litigation, claims, unpaid bill(s), notices of non-payment filed by subcontractors or suppliers, and defaults in Florida or other states.

(b) Equipment, as shown on the equipment list for the requested classes of work. Adequate equipment shall be basic equipment used by the industry in the normal construction for each class of work or called for in the Standard Specifications for Road and Bridge Construction in force at the time of application.

(c) Integrity, including evaluation of truthfulness of statements in the application and in other contractual documents .

(d) Financial resources, sufficient to establish a Maximum Capacity Rating (MCR) as set forth in (2) below. The Department will consider any other relevant financial information.

(2) MCR.

(a) Definition and Formula.  The MCR shall be the total aggregate dollar amount of uncompleted work an applicant may have under contract at any one time as prime contractor and/or subcontractor, regardless of its location and with whom contracted.  The MCR shall be established by the Department using the following formula, and consideration of general qualification factors listed in subsection 14-22.0041(1), F.A.C.:

MCR = AF x CRF x ANW, in which

MCR = Maximum Capacity Rating

AF = Ability Factor (determined from the Ability Score as provided below)

CRF = Current Ratio Factor (determined as provided below)

ANW = Adjusted Net Worth (for rating purpose, determined as provided below).

1. Ability Score.

a. New applicants and applicants who have not been qualified under this rule for more than two years shall have their Ability Factor determined from the total Ability Score resulting from evaluations of the applicant’s organization, management, work experience, and letters of recommendation.  The maximum values used in determining the ability score for the above applicants are as follows:

 

ABILITY SCORE
Organization and Management	Maximum Value
Experience of Principals	15
Experience of Construction Supervisors	15
Work Experience
Completed Contracts
Highway and bridge related	25*
Non-highway and bridge related	10
Ongoing Contracts
Highway and bridge related	25*
Non-highway and bridge related	10
TOTAL	100
*Maximum value shall be increased to 35 if applicant=s experience is exclusively in highway and bridge construction.

 

b. If the applicant has been qualified under this rule within the last two years, and the Department has three or more Prime Contractor Past Performance Reports on file for projects completed for the Department within five years of the application filing date which have not been previously used to determine an Ability Score, the applicant’s Ability Score shall be calculated by adding the scores of these reports plus the average score from the previous application and dividing this sum by the number of scores used.  Prime Contractor Past Performance Reports shall reflect the applicant’s organization, management, and demonstrated work performance, including work sublet to others, set forth in Form 700-010-25, which is incorporated by reference in Rule 14-22.015, F.A.C.

c. If the applicant has been qualified under this rule within the last two years, and the Department does not have three or more Prime Contractor Past Performance Reports on file for the applicant for projects completed for the Department within five years of the application filing date, then the Ability Factor (AF) from the applicant’s last successful application will be brought forward and used.

d. The average Ability Score determined in a. or b. above is converted to an AF pursuant to Rule subparagraph 14-22.003(2)(a)2., F.A.C., or the AF is brought forward as indicated in c. above.  The AF is then used in the formula pursuant to Rule paragraph 14-22.003(2)(a), F.A.C., to compute the applicant’s MCR.

2.  Ability Factor. The Ability Score for new and active applicants shall determine the AF as follows:

 

Ability Score	AF
64 or less	1
65-69	2
70-73	3
74-76	4
77-79	5
80-84	8
85-89	10
90-93	12
94-97	14
98-100	15

 

a. Notwithstanding the requirements in paragraph 14-22.003(2)(a), F.A.C. and sub-subparagraphs 14-22.003(2)(a)1.a., 1.b., 1.c., 1.d., and subparagraphs 14.22.003(2)(a)2., F.A.C., above, the AF will be limited to a maximum of 4 if the applicant receives an ability score of 76 or less on the initial application, or receives an ability score of 76 or less on two or more Prime Contractor Past Performance Reports on file for projects completed during the 12 month period preceding the applicant’s fiscal year ending date for which the Certificate of Qualification is being issued, unless the applicant’s average ability score (inclusive of all scores received during the period) is 87 or greater. The use of a surety commitment letter to raise the MCR is prohibited.

b. This AF limitation will remain in effect during the current qualification period.

3. Current Ratio Factor (CRF).  The current ratio is the number resulting from dividing the adjusted current assets by the adjusted current liabilities. The actual current ratio from 0.60 up to a maximum of 2.00 will be used as the CRF.  For current ratios greater than 2.00, 2.00 will be used as the CRF. The applicant will be denied qualification if its current ratio is less than 0.60.

4. Adjusted Net Worth (ANW). The ANW must be a positive value for the applicant to be considered for qualification. The ANW used in the MCR formula will be the amount of capital and surplus (net worth) as adjusted. as follows:

5. The following adjustments shall be applied in the establishment of the CRF and ANW:

a. Value allowed for equipment shall be the book value, or 50 percent of actual value given by a qualified equipment appraiser, whichever is greater.  Equipment appraisals must be dated no earlier than six months prior to receipt of the application.

b. Value allowed for real estate used for business purposes (road, bridge, or public transportation construction) shall be:

(I)  The book value or the value given by a qualified real estate appraiser, (real estate appraisals shall be dated no earlier than two years prior to the date the application is filed), less

(II) Encumbrances against same (such encumbrances will not also be deducted elsewhere).

c. No value will be allowed for investments, real estate, or any other property not used in road, bridge, or public transportation construction, and no allowance shall be given for homesteads or personal property.

d. Assets of doubtful value, as more fully defined by GAAP, are recorded transactions that, based upon the known facts and circumstances, do not lead to the realization of value for use in the contractor’s operations in the current operating period.  These assets shall be eliminated in part or entirely.

e. Contingent liabilities, as more fully defined by GAAP, are debts or obligations that would require the use of the contractor’s resources within the current operating period, given that certain events take place in the future.  These shall be treated as actual liabilities, wholly or in part, depending on the probability of such liabilities becoming actual liabilities.

f. Patents, organizational expense, non-compete agreements, goodwill, and intangible assets, as defined by GAAP, shall be eliminated entirely.

g. Past due receivables or unexplained receivables, officer and employee receivables, or other related party receivables, unsecured notes receivable, and the interest for these notes shall be eliminated entirely.  Subsidiary or affiliate receivables, based upon the known facts and circumstances, that do not lead to the realization of value for use in the contractor’s operations shall be eliminated in part or entirely.

h. Prepaid expenses.  Prepaid taxes and deferred interest shall be eliminated entirely.

i. Leashold improvements and the excess of book value over liabilities for capital lease assets shall be eliminated entirely.

j. Cash surrender value life insurance shall be eliminated entirely.

k. Construction claims included as current assets associated with contracts shall be eliminated entirely.

6. 5. MCR.  The calculated MCR shall be rounded off according to the following scale:

Up to $500,000 B round off to nearest $10,000

Above $500,000 to $2,000,000 B round off to nearest $25,000

Above $2,000,000 B round off to nearest $50,000

(b) Bonding Capacity.

1. Except for the provisions of Rule sub-subparagraph 14-22.003(2)(a)2.a., F.A.C., above, an applicant qualifying for a positive rating, or a contractor having a current certificate of qualification, has an Ability Score of 80 or higher, and has a Current Ratio Factor of at least 1.00, is eligible to request an increase in shall be allowed to raise its MCR upon receipt of evidence of a current bonding capacity exceeding the calculated MCR from a surety company authorized to do business in Florida.  Such evidence shall be in the form of a Surety Commitment Letter and letter of commitment executed by an officer of the surety who is authorized to bind the surety, with a power of attorney attached. The Ssurety Commitment Lletter must be dated within four months of the request and cover the certification period. The limit for an MCR issued on the basis of such bond commitment for applicants with an Ability Score of 80 through 90 will be determined by the following ASurety Capacity@formula:

SC = SM  MCR  (CRV  TRV)

In which:

SC = Surety Capacity

SM = Surety Multiplier (Determined from Ability Score - Surety Multiplier Table as provided below)

MCR = Maximum Capacity Rating (Determined as provided in paragraph 14-22.003(2)(a)), F.A.C.

CRV = Construction Revenues (As set forth in applicant=s financial statements per 14-22.002(2)(c)2.)

 

TRV = Total Revenues (As set forth in applicant’s financial statements) Ability Score – Surety Multiplier Table
Ability Score	Surety Multiplier
80	3.0
81	3.4
82	3.8
83	4.2
84	4.6
85	5.0
86	5.6
87	6.2
88	6.8
89	7.4
90	8.0

 

2. Except for the provisions of sub-subparagraph 14-22.003(2)(a)2.a., F.A.C., above, the MCR for firms that have an Ability Score of 91 or greater will be the AAggregate of Contracts@ amount stipulated in the surety commitment letter. An MCR established through the use of a surety commitment letter shall not exceed the “Aggregate of Contracts” amount stipulated in the surety commitment letter.

3.  Except for the provisions of Rule sub-subparagraph 14-22.003(2)(a)2.a., F.A.C., above, use of a surety commitment letter to increase an applicant’s MCR will only be considered if at the time of application the applicant’s CRF is at least 1.00, as defined in Rule subparagraph 14-22.003(2)(a)3., F.A.C., and the applicant has an Ability Score of 80 or higher. No event(s) during the qualification period subsequent to the ending date of the audited financial statements used for qualification will be considered in determining an applicant’s CRF.  However, the Department will consider the general qualification factors listed in Rule subsection 14-22.004(1), F.A.C., in consideration of an increase to the applicant’s MCR through the use of a surety commitment letter.

(3) Classification of Work.

(a) Applicant request for class(es) of work. Applicants shall indicate each class of work for which they desire qualification.  The Department will consider qualifying the applicant only in the specific class or classes of work requested.

(b) The major classes of work are as follows:

1. Major Bridges:

a. Bridges which include bascule spans.

b. Bridges which include curved steel girders.

c. Bridges with multi-level roadways.

d. Bridges of concrete segmental construction.

e. Bridges which include steel truss construction.

f.  Bridges which include cable stayed construction.

g. Bridges of conventional construction which are over a water opening of 1,000 feet or more.

h. Cast-in-place post-tensioned superstructures.

2. Intermediate Bridges are bridges that contain none of the types of construction listed under Major Bridges and span lengths exceeding 50 feet (center to center of cap).

3.  Minor Bridges are bridges with span lengths not exceeding 50 feet (center to center of cap) and total length not exceeding 300 feet.  A Minor Bridge shall not contain any type of construction listed under Major Bridges or Intermediate Bridges.

4. Bascule Bridge Rehabilitation.

5. Grading (includes clearing and grubbing, excavation, and embankment).

6. Drainage (includes all storm drains, pipe culverts, culverts, etc.).

7. Flexible Paving (includes limerock, shell base and other optional base courses, soil-cement base, mixed-in-place bituminous paving, bituminous surface treatments and stabilizing).

8. Portland Cement Concrete Roadway Paving.

9.  Hot Plant-Mix Bituminous (includes structural and surface courses).

(c)  Specialty classes of work are as follows:

1.  Electrical work (includes roadway, bridge, and runway lighting).

2. Fencing.

3. Guardrail.

4. Grassing, Seeding, and Sodding.

5. Landscaping.

6. Traffic Signals.

7. Computerized Traffic Control Systems.

8. Bridge Painting.

9. Pavement Markings (includes delineators, traffic stripe painting, and thermoplastics).

10. Roadway Signing.

(d) Such other classes of work not normally performed by road and bridge contractors as the applicant may request.

(e) For the Work Class of Emergency Debris Removal, the contractor(s) shall complete the Application for Qualification for Emergency Debris Removal, DOT Form 375-020-37, Rev. 01/06, incorporated herein by reference.  The Application for Qualification shall be accompanied by a Reviewed Financial Statement prepared in accordance with GAAP.

Specific Authority  120.53(1)(a) FS., 334.044(2) FS., 337.14(1) FS. Law Implemented 337.11(3)(b) FS., 337.11(5)(a) 1.- 3. FS., 337.11 (7)(b)1. FS., 337.11(7)(c) FS., 337.14 FS., 337.167 FS. History–Formerly Chapter 14-8, Amended 7-1-67, 8-20-68, 5-9-70, 1-6-72, 9-24-75, Formerly 14-22.01(4), Amended 3-23-79, 11-10-82, 8-25-83, 1-9-84, 10-1-85, Formerly 14-22.03, Amended 12-20-89, 4-22-92, 1-4-94, 7-1-95, 7-2-95, 7-8-01, 6-27-04,________.

 

14-22.0042 Notification of Conviction of Contract Crime.

(1)  A contractor who is currently qualified or seeking to be qualified shall notify the Contracts Administration Office in writing within 30 days after the filing of a criminal Information, an Indictment, or the conviction of a contract crime applicable to the contractor, or any affiliates, officers, directors, executives, shareholders active in management, employees, or agents of the contractor.

(2)  Whenever the Department has reason to believe that a contractor or their affiliate, who is currently qualified or seeking qualification, has been convicted of a contract crime or is affiliated with a person or contractor so convicted, the Department may issue a written demand upon the contractor or affiliate to appear for sworn testimony, to answer written interrogatories, or to produce documents or other tangible evidence for inspection or copying.

Specific Authority 334.044(2) FS., 337.14(1) FS.  Law Implemented 120.62 FS., 337.164 FS., 337.165(5), (6) FS.  History–New 8-25-83, Amended 10-1-85, Formerly 14-22.042, Amended 12-20-89, 1-4-94,_______.

 

14-22.005 Period of Validity of Qualification.

(1)  The applicant’s period of qualification shall be 18 months from the ending date represented by  the audited annual  financial statements  included in the application.  For good cause, the Department will approve a period of qualification less than 18 months.  Good cause shall mean as defined in Rule 14-22.0141, F.A.C.  An applicant must submit a new application 30 days prior to the expiration of its current Certificate of Qualification to ensure no interruption in its  qualification to bid.  The Certificate of Qualification shall expire no later than the expiration date of the certificate, regardless of whether or not a hearing has been requested concerning the Department’s action on the application.  Submission of an application shall not affect expiration of the Certificate of Qualification.

(2) Qualified applicants in good standing shall be notified of the impending deadline date for submittal of their application for qualification at least 45 days prior to that date. Failure of notification shall not affect the deadline date for submittal of applications for qualification.

(3) Qualified entities shall submit a new application with financial statements as required by subsection 14-22.002(2), F.A.C., within four (4) months from the date that a change of ownership or incorporation of a non-incorporated firm occurs. Also, a new application shall may be required whenever the Department has reason to believe that the position of a qualified entity is less favorable than at the time of its last application or a subsequent event that is material and adversely affects the financial position of the entity.

(4) A qualified entity need not submit a new application solely because of any change in the officers or the name of a corporation, but such information shall be certified to the Department within 10 days of such events.

(5) A qualified entity shall notify the Department in writing within 10 days of the decrease in its available surety performance bond credit amount.

(6) A Certificate of Qualification shall not be issued to an applicant or affiliate that is insolvent.

(7) A qualified entity or applicant or affiliate shall notify the Contracts Administration Office in writing upon the filing of a bankruptcy petition.  The notice shall be received by the Contracts Administration Office within 10 days of the initial filing.

(8) A qualified entity, upon written request from the Department (stating the reasons for this request), shall submit updated or other additional financial information necessary for the Department to verify the financial adequacy of the qualified entity during the period of validity of qualification.

Specific Authority 334.044(2) FS., 337.14(1) FS.  Law Implemented 337.14 FS., 337.164 FS.  History–Formerly Chapter 14-8, Amended 7-1-67, 8-20-68, 5-9-70, 1-6-72, 9-24-75, Formerly 14-22.01(7), Amended 3-23-79, 11-10-82, 8-25-83, 10-1-85, Formerly 14-22.05, Amended 12-20-89, 1-4-94, 6-27-04,________.

 

14-22.006 Current Capacity Rating.

(1) The Certificate of Qualification shall establish an entity’s Maximum Capacity Rating which will be reduced by the total value of their current uncompleted work, regardless of its location and with whom it may be contracted, to determine their bidding capacity at any particular time. This bidding capacity shall be called Current Capacity.

(2) In determining the Current Capacity of a prospective bidder, the deduction for uncompleted work shall include work subcontracted from others. The bidder will be given credit for work sublet to others; provided, for contracts with the Department, the request for authorization to sublet the work has been approved in writing. The Department, in determining the bidder’s eligibility to be issued a bid proposal, will decrease a bidder’s uncompleted work by deducting ten percent per month from the “Status of Contracts on Hand” report in the Certification of Current Capacity form submitted with the bidder’s most recent bid or the uncompleted work listed in the bidders’s Application for Qualification, whichever is most current, which will increase the Current Capacity accordingly.

(3)  In order for the Department to have the information required to determine a bidder’s Current Capacity, it is necessary that the bidder submit on the day of the letting, a Certification of Current Capacity, Form 375-020-22, Rev. 05/05, that shall be executed under oath.  This form must be included in the at least one bid for the first letting in the calendar month that the bidder submits a bid each letting bid upon.  Failure to submit this document shall may result in a determination that all bids submitted by the bidder for that letting are disqualified non-responsive or irregular and are rejected, pursuant to Rule 14-22.009, F.A.C. not to be considered. The Department shall include the Certification of Current Capacity, Form 375-020-22, Rev. 05/05 with the proposal documents issued to the bidder.

(4) In preparing the Certification of Current Capacity, Form 375-020-22, Rev. 05/05 the following shall apply:

(a) If the letting is not later than the 25th day of the month, the certification and report shall reflect the uncompleted work as of the 15th day of the month preceding the month of the letting.

(b) If the letting is after the 25th day of the month, the certificate and report shall reflect the uncompleted work in progress as of the 15th day of the month of the letting.

(c) In determining a bidder’s Current Capacity, any projects in a prior letting pending award by the Department to such bidder also shall be debited against the bidder’s Current Capacity unless the award is to be delayed for an indefinite period of time.  Further, no credit shall be given for proposed subcontracting of any work included in such proposal pending award.

Specific Authority  334.044(2) FS., 337.14(1) FS. Law Implemented  337.11(3)(b) FS., 337.11(5)(a) 1.- 3. FS., 337.11 (7)(b)1. FS., 337.11(7)(c) FS., 337.14 FS., 337.164 FS. History–Formerly Chapter 14-8, Amended 7-1-67, 8-20-68, 5-9-70, 1-6-72, 7-24-75, Formerly 14-22.01(8), Amended 3-23-79, 11-10-82, 8-25-83, 10-1-85, Formerly 14-22.06, Amended 12-20-89, 6-27-90, 1-4-94, 7-1-95, 7-2-95, 12-18-05,________.

 

14-22.008 Eligibility for Obtaining Proposal Documents.

(1) Proposal documents for a specific project(s) shall be issued only to a prospective bidder who has a Current Capacity equal to or larger than the budgeted contract amount and a Certificate of Qualification, which expires on or after the date proposals are to be received, covering one or more classes of work, as identified in paragraph 14-22.003(3)(b), F.A.C., which, in the aggregate, comprise 50 percent or more of the percentage of the Department’s budget estimate of the major classes of work in the specific contract total value of normal work included in the proposal documents.

(2)  If the Department’s budget estimate for a specific project has a majority of percentage of speciality classes of work, as identified in paragraph 14-22.003(3)(c), F.A.C.,  then a contractor must be qualified in 50 percent or more of the percentage of the Department’s budget estimate for the total classes of all work in the specific project.  The term “normal work” as used herein means all work in the contract not designated in the proposal document or the Specifications as Specialty Work.

(3)  In determining whether a contractor shall receive proposal documents, the Department will automatically credit all contractors as being qualified in 50 percent of the Maintenance of Traffic percentage of the Department’s budget estimate for a specific project. 

(4)(3)  The term “Current Capacity” as used herein is as defined in Rule subsection 14-22.006(1), F.A.C.

(5)(4)  Eligibility for obtaining proposal documents shall have no effect on determination of the Current Capacity.

(6)(5)  A qualified bidder will be issued proposal documents for any number of projects, provided the estimated contract amount of any individual project requested does not exceed their Current Capacity.  Except for the provisions of Rule sub-subparagraph 14-22.003(2)(a)2.a., F.A.C., above, qualified firms that desire to bid a project which exceeds their Current Capacity, whose CRF was at least 1.00 based on the financial statements used for current qualification, and that have an Ability Score of 80 or higher, will be allowed to bid that specific project if the firm furnishes a commitment letter from a surety company, authorized to do business in Florida, that the project amount does not exceed the firm=s Surety Capacity as established by Rule subparagraph 14-22.003(2)(b)1., F.A.C.,  Issuance of proposal documents by the Department will be subject to payment of applicable costs by the qualified bidder.

(7)(6)  The bid shall be signed by the owner for sole proprietorships; partner(s) authorized to bind the entity for a partnership; the president or vice president for corporations; and for limited liability companies an authorized executing official.  Bids submitted by a joint venture shall be signed by the authorized executing officials of the business entities comprising the joint venture and the attorney-in-fact for the joint venture.

Specific Authority  334.044(2) FS., 337.14(1) FS.  Law Implemented  337.11(3)(b) FS., 337.11(5)(a)1.- 3. FS., 337.11 (7)(b)1., FS. 337.11(7)(c) FS., 337.14 FS. History–New Formerly Chapter 14-8, Amended 7-1-68, 8-20-68, 5-9-70, 1-6-72, 9-24-75, Formerly 14-22.01(11), Amended 3-23-79, 11-10-82, 8-25-83, Formerly 14-22.08, Amended 12-20-89, 1-4-94, 7-1-95, 7-2-95, 7-8-01,________.

 

14-22.015 Forms.

The following forms are incorporated by reference as part of the rules of the Department and are available from the Contracts Administration Office, 605 Suwannee Street, Mail Station 55, Room 1-B, Tallahassee, Florida 32399-0455:

Form Number	Date	Title
375-020-32	01/06 12/98	Application for Qualification
375-020-22	05/05	Certification of Current Capacity
700-010-25	09/05 11/03	Contractor Past Performance Report
375-020-37	01/06	Application for Qualification for Emergency Debris Removal

Specific Authority 334.044(2) FS., 337.14(1) FS.  Law Implemented 120.53(1)(b) FS., 337.14 FS., 337.167 FS. History–New 11-10-82, Amended 8-25-83, Formerly 14-22.15, Amended 12-20-89, 1-4-94, 7-1-95, 7-2-95, 7-8-01, 6-27-04, 12-18-05,________ .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Juanita Moore, Manager, Contracts Administration Office.
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Denver J. Stutler, Jr., P.E., Secretary.
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 14, 2006
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: February 3, 2006

 

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