Ch. 15 — Advertise and Award Applied exercises

Options: 1. Award at the low bid ($1,580K). If the LPA has sufficient federal authorization, state encumbrance, and project funding, proceed with award. Note that federal share is subject to the original federal authorization unless a request for award adjustment is submitted (LAPM Ch 3 §3.6, 23 CFR 630.106(f)(2)) within 90 days of contract award. 2. Request federal share adjustment. Per 23 CFR 630.106(f)(2): "The pro rata or lump sum share may be adjusted before or shortly after contract award to reflect any substantive change in the bids received as compared to the State Transportation Department's estimated cost of the project at the time of FHWA authorization, provided that federal funds are available." Submit within 90 days. May allow increased federal participation. 3. Reject all bids and re-bid. Permitted but may not yield better prices. Reasons to consider: • Bid market is unusually high due to short-term conditions. • Project scope can be reduced (descope alternatives). • Bid timing was poor (e.g., right before peak construction season). 4. Reject and re-design. If scope can be reduced or value-engineered, re-PS&E with reduced scope and re-advertise. Key considerations: • Funding availability. $1.58M bid vs $1.2M estimate = $380K overrun. Does the LPA have local share to cover the gap if federal share is fixed? • Schedule. Re-bid adds 3-4 months minimum. • Bid validity. Bids typically valid 60 days. Don't let bids expire while contemplating. • CTC-allocated funds. If allocation locked at original estimate, may need supplemental allocation. Most LPAs choose award + adjustment request for moderate overruns. Major overruns (>25%) often trigger re-design or re-bid.