63G-6a-1102.  Bid security requirements — Directed suretyship prohibited — Penalty.

(1)  Bid security in an amount equal to at least 5% of the amount of the bid shall be required for all competitive bidding for construction contracts. Bid security shall be a bond provided by a surety company authorized to do business in this state, the equivalent in cash, or any other form satisfactory to the state.

Terms Used In Utah Code 63G-6a-1102

  • Bidder: means a person who submits a bid or price quote in response to an invitation for bids. See Utah Code 63G-6a-103
  • Issuing procurement unit: means a procurement unit that:
(a) reviews a solicitation to verify that it is in proper form;
(b) causes the notice of a solicitation to be published; and
(c) negotiates and approves the terms and conditions of a contract. See Utah Code 63G-6a-103
  • Person: means :Utah Code 68-3-12.5
  • Procurement: means the acquisition of a procurement item through an expenditure of public funds, or an agreement to expend public funds, including an acquisition through a public-private partnership. See Utah Code 63G-6a-103
  • Procurement official: means :
    (a) for a procurement unit other than an independent procurement unit, the chief procurement officer;
    (b) for a legislative procurement unit, the individual, individuals, or body designated in a policy adopted by the Legislative Management Committee;
    (c) for a judicial procurement unit, the Judicial Council or an individual or body designated by the Judicial Council by rule;
    (d) for a local government procurement unit:
    (i) the legislative body of the local government procurement unit; or
    (ii) an individual or body designated by the local government procurement unit;
    (e) for a special district, the board of trustees of the special district or the board of trustees' designee;
    (f) for a special service district, the governing body of the special service district or the governing body's designee;
    (g) for a local building authority, the board of directors of the local building authority or the board of directors' designee;
    (h) for a conservation district, the board of supervisors of the conservation district or the board of supervisors' designee;
    (i) for a public corporation, the board of directors of the public corporation or the board of directors' designee;
    (j) for a school district or any school or entity within a school district, the board of the school district or the board's designee;
    (k) for a charter school, the individual or body with executive authority over the charter school or the designee of the individual or body;
    (l) for an institution of higher education described in Section 53B-2-101, the president of the institution of higher education or the president's designee;
    (m) for the State Board of Education, the State Board of Education or the State Board of Education's designee;
    (n) for the Utah Board of Higher Education, the Commissioner of Higher Education or the designee of the Commissioner of Higher Education;
    (o) for the Utah Communications Authority, established in Section 63H-7a-201, the executive director of the Utah Communications Authority or the executive director's designee; or
    (p) 
    (i) for the facilities division, and only to the extent of procurement activities of the facilities division as an independent procurement unit under the procurement authority provided under Title 63A, Chapter 5b, Administration of State Facilities, the director of the facilities division or the director's designee;
    (ii) for the attorney general, and only to the extent of procurement activities of the attorney general as an independent procurement unit under the procurement authority provided under Title 67, Chapter 5, Attorney General, the attorney general or the attorney general's designee;
    (iii) for the Department of Transportation created in Section 72-1-201, and only to the extent of procurement activities of the Department of Transportation as an independent procurement unit under the procurement authority provided under Title 72, Transportation Code, the executive director of the Department of Transportation or the executive director's designee; or
    (iv) for any other executive branch department, division, office, or entity that has statutory procurement authority outside this chapter, and only to the extent of the procurement activities of the department, division, office, or entity as an independent procurement unit under the procurement authority provided outside this chapter for the department, division, office, or entity, the chief executive officer of the department, division, office, or entity or the chief executive officer's designee. See Utah Code 63G-6a-103
  • Responsible: means being capable, in all respects, of:
    (a) meeting all the requirements of a solicitation; and
    (b) fully performing all the requirements of the contract resulting from the solicitation, including being financially solvent with sufficient financial resources to perform the contract. See Utah Code 63G-6a-103
  • Rulemaking authority: means :
    (a) for a legislative procurement unit, the Legislative Management Committee;
    (b) for a judicial procurement unit, the Judicial Council;
    (c) 
    (i) only to the extent of the procurement authority expressly granted to the procurement unit by statute:
    (A) for the facilities division, the facilities division;
    (B) for the Office of the Attorney General, the attorney general;
    (C) for the Department of Transportation created in Section 72-1-201, the executive director of the Department of Transportation; and
    (D) for any other executive branch department, division, office, or entity that has statutory procurement authority outside this chapter, the governing authority of the department, division, office, or entity; and
    (ii) for each other executive branch procurement unit, the board;
    (d) for a local government procurement unit:
    (i) the governing body of the local government unit; or
    (ii) an individual or body designated by the local government procurement unit;
    (e) for a school district or a public school, the board, except to the extent of a school district's own nonadministrative rules that do not conflict with the provisions of this chapter;
    (f) for a state institution of higher education, the Utah Board of Higher Education;
    (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the State Board of Education;
    (h) for a public transit district, the chief executive of the public transit district;
    (i) for a special district other than a public transit district or for a special service district, the board, except to the extent that the board of trustees of the special district or the governing body of the special service district makes its own rules:
    (i) with respect to a subject addressed by board rules; or
    (ii) that are in addition to board rules;
    (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah Board of Higher Education;
    (k) for the School and Institutional Trust Lands Administration, created in Section 53C-1-201, the School and Institutional Trust Lands Board of Trustees;
    (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201, the School and Institutional Trust Fund Board of Trustees;
    (m) for the Utah Communications Authority, established in Section 63H-7a-201, the Utah Communications Authority board, created in Section 63H-7a-203; or
    (n) for any other procurement unit, the board. See Utah Code 63G-6a-103
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • (2)  When a bidder fails to comply with the requirement for bid security described in the invitation for bids, the bid shall be rejected unless, pursuant to rules of the rulemaking authority, the issuing procurement unit determines that the failure to comply with the security requirements is nonsubstantial.

    (3)  After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids. If a bidder is permitted to withdraw a bid before award, no action shall be taken against the bidder or the bid security.

    (4) 

    (a)  When issuing an invitation for a bid under this chapter, the procurement official responsible for carrying out a construction project may not require a person or entity who is bidding for a contract to obtain a bond of the type described in Subsection (1) from a specific insurance or surety company, producer, agent, or broker.

    (b)  A person who violates Subsection (4)(a) is guilty of an infraction.

    Amended by Chapter 257, 2020 General Session