Section 105IAC11-3-16. Rejection of proposal bid after opening

   (a) A proposal bid opened and read will be subsequently rejected under the following conditions:

(1) When the bidder fails to submit with the bid a:

(A) properly executed:

(i) bid bond;

(ii) performance bond; or

(iii) noncollusion affidavit; or

(B) valid power of attorney letter which authorizes the person to bind the surety to the bid bond and the performance bond.

(2) When the bidder:

(A) does not hold a valid certificate of qualification; or

(B) exceeds its bidding capacity.

(3) When the bidder submits a paper proposal bid and:

(A) the department cannot mathematically determine a bidder's unit price or lump sum price for each pay item in the proposal bid; or

(B) the department's calculation of the bidder's unit price or lump sum price is zero (0) or a negative amount.

(4) When no bids received on a contract are less than or equal to five percent (5%) above the engineer's estimate.

(5) When the bidder adds a provision reserving the right to accept or reject the award.

(6) If the bidder modifies or alters a provision in the contract documents.

(7) If the bidder is a trust and fails to disclose the identity of each of the following:

(A) Beneficiary of the trust.

(B) Settlor empowered to revoke or modify the trust.

(8) When the bidder fails to submit documents required by the proposal page at the time it submits a proposal bid.

  (b) The commissioner in the commissioner's sole personal judgment and discretion may reject any and all proposal bids for cause.

  (c) The commissioner may reject any and all proposal bids for any reason, including, but not limited to, any of the following situations, if, in the sole personal judgment and discretion of the commissioner, the rejection is in the best interest of the state:

(1) When the bidder fails to comply with this article.

(2) When there exists evidence of collusion among bidders.

(3) When the bidder has had involvement, in any way, in the design of the project or preparation of the plans or special provisions, unless a general announcement specifically allows for such involvement.

(4) When it is either impossible or not practical to proceed with the proposed work.

(5) When the bids are above but within five percent (5%) of the engineer's estimate.

(6) When:

(A) a paper proposal bid is on a form other than the one furnished or authorized by the department for that bidding; or

(B) an electronic proposal bid is submitted through an entity other than a designated electronic medium.

(7) If the proposal bid contains obviously unbalanced prices.

(8) If a paper proposal bid is not completed either in ink or in type.

(9) When the written documents required in section 7 of this rule are not properly executed, signed, and notarized subject to subsection (d).

(10) When the commissioner, in the exercise of the commissioner's sole personal judgment and discretion, determines, subsequent to the opening of bids, facts exist that would disqualify the low bidder or that such low bidder is not competent, responsible, or of a character satisfactory to perform work for the state of Indiana.

(11) When the bidder fails to meet the requirements of the disadvantaged business enterprise or women or minority business enterprise programs, where applicable.

  (d) When documents are omitted or improperly executed or signed, the department may allow the bidder to make the necessary corrections subsequent to the opening. The corrections, if allowed, must be made within seven (7) calendar days after notification to the bidder of the irregularities. However, this provision does not apply to the conditions described in subsection (a).

  (e) Failure to execute the requested corrections within the seven (7) day period will be cause for the cancellation of the award, forfeiture of the bid bond, and a reduction in the bidder's qualification. In such event, the commissioner, in the exercise of the commissioner's sole personal judgment and discretion, may either:

(1) award the contract to the next eligible bidder;

(2) reject all bids and readvertise for new bids; or

(3) reject all bids and not readvertise for new bids.

  (f) For proposal bids rejected under sections 14 through 15 of this rule and this section the department, at the discretion of the commissioner, may either:

(1) award the contract to the next eligible bidder;

(2) reject all bids and readvertise for new bids; or

(3) reject all bids and not readvertise for new bids.

(Indiana Department of Transportation; 105 IAC 11-3-16; filed Jul 25, 1991, 3:30 p.m.: 14 IR 2197; filed Jun 14, 1993, 5:30 p.m.: 16 IR 2542; readopted filed Nov 7, 2001, 3:20 p.m.: 25 IR 899; filed May 23, 2007, 2:58 p.m.: 20070620-IR-105070036FRA; errata filed Jul 13, 2007, 9:41 a.m.: 20070801-IR-105070036ACA; readopted filed Oct 2, 2013, 11:39 a.m.: 20131030-IR-105130295RFA)

*