SALE OF FOREST PRODUCTS FROM LANDS OWNED
OR MANAGED BY THE STATE BOARD OF FORESTRY
These rules apply only to sales of forest products with a value in excess of $25,000 or as otherwise allowed by ORS 530.059; 273.521; or 273.525.
Stat. Auth.: ORS 526.016
Stats. Implemented: ORS 630.050
Hist.: FB 1-1997, f. 9-4-97, cert. ef. 1-1-98
Sale Contract Definitions
(1) Areas of Operations: The locations where a PURCHASER performs the operations described in a contract.
(2) Authorized Representative: The State Forester and the deputy, assistants and employees of the forester, acting under direction of the State Board of Forestry.
(3) Bid: A competitive offer, which is binding on the bidder, in which price, delivery (or project completion) and conformance with specifications and the requirements of the Invitation to Bid will be the predominant award criteria.
(4) Bidder: A person, business, corporation, or other entity recognized by the STATE that submits a bid to enter into a contract with the STATE to purchase forest products, and that certifies that the timber will be harvested.
(5) Contract: The entire written agreement between the parties, including but not limited to the Notice of Timber Sale; Invitation to Bid or Request for Proposal; Instructions to Bidders, specifications, terms, and conditions contained in the prospectus; Exhibits; Operations Plan; change notices; if any; and the accepted Form of Proposal.
(6) Contract Award: The decision of the STATE to award the contract.
(7) Contracting Officer: The State Forester and the deputy, assistants and employees of the forester, acting under direction of the State Board of Forestry.
(8) Forest Products: Harvested timber and/or other products harvested from State Forest lands.
(9) MBF: Thousand Board Feet. The standard abbreviation for 1,000 board feet of standing timber, logs, or lumber. An industry standard of measurement.
(10) Operations: All the activities conducted by a PURCHASER under a contract, including project work, logging, or post harvest activities; or the furnishing of all materials, equipment, labor, and incidentals necessary to successfully complete any individual item or the entire contract.
(11) Project Location: The points or areas designated as such on a contract Exhibit A and located on the ground by reference to points, stations, natural land features, improvements, or area boundary signs.
(12) PURCHASER: Successful high bidder or authorized representative of bidder on a forest products sale contract.
(13) STATE: The Oregon Department of Forestry, State Forester, or a duly Authorized Representative of the State Forester.
(14) Timber Sale Area: The area or areas designated as such on a contract Exhibit A and located on the ground by reference to legal subdivisions, monuments, natural land features, improvements, or sale boundary signs.
Competition in Forest Products Sale Contracts
All forest product sale contracts with an appraised value in excess of $25,000 shall be awarded by competitive bidding except as otherwise allowed or required in ORS 530.059, 273.521, or 273.525. Unless the STATE decides otherwise, competitive bidding may involve a Notice of Timber Sale and the submission by bidders of written, sealed offers or proposals which are opened and read aloud at a publicly disclosed day, time, and place. If the STATE should decide, a public auction may be used instead of written, sealed offers or proposals. The resulting sale contract may be awarded to the highest responsive, responsible bidder.
Bids Are Offers
(1) The bid is the bidder's offer to enter into a contract which, if the bid is accepted for award by the STATE, binds the bidder to a contract and the terms and conditions contained in the Notice of Timber Sale and the Form of Proposal unless the bid is withdrawn in accordance with OAR 629-029-0055 prior to the time of bid opening.
(2) The bid shall be a complete offer and fully responsive to the bid, unless bidders are specifically authorized by the Notice of Timber Sale to take exceptions or to leave terms open to negotiation.
Bid Preparation Instructions
Unless otherwise allowed by the STATE:
(1) Bid Compliance:
(a) Bids shall be typed or prepared in ink and shall be signed in ink by the bidder, or an authorized representative of the bidder.
(b) Bids shall be made on the form(s) provided unless bidders are otherwise instructed in the Notice of Timber Sale.
(c) Alterations or erasures, if any, shall be initialed in ink by the person signing the bid.
(d) Bids shall contain a fully executed bid package, including all required documents.
(2) Entering Bid Prices (unless otherwise indicated):
(a) Price of each item shall be clearly shown in spaces provided in the Form of Proposal.
(b) Numbers shall be stated both in writing and in figures. The written price shall prevail over the numerical price in case of differences.
(c) For recovery (scale) sales, bidders shall show both in writing and figures the price bid per MBF (or other designated unit of measurement).
(d) For cash (lump sum) sales, bidders shall show total sum price bid for all timber contained in the sale area(s), both in writing and figures.
(3) Certification of Eligibility to Bid on State Timber: Bidder shall completely fill out and submit with their bid a "Certification of Eligibility to Bid on State Timber" form. Any bidder who has within a 3 year period preceding a bid had one or more Federal, State or Local timber sales terminated for cause or default shall submit an explanation, in writing, with their bid for consideration by State. Any such explanations shall be submitted at the time of bid on a separate piece of paper. State will consider the following when considering acceptance or rejection of a bid based on previous terminations, defaults or other matters relating to timber sales:
(a) Have the underlying issues that were the cause of a default, termination or other action by a public agency been remedied?
(b) Is the past credit or payment history of the bidder with the public agency satisfactory?
(c) Can the bidder obtain surety bonding in amounts sufficient to meet the requirements contained in the contract(s) at issue?
(d) Have the underlying issues that were the cause of a default, termination or other action by the State Forester been remedied?
Bidders, before submitting a bid, shall make a careful examination of the contract documents and the site of the sale and any appended project work. Such examination shall be independent of any representations by the STATE concerning the quality and quantity of timber, the allowable method of removal of the timber or of conditions affecting the work at the site. Pursuant to OAR 629-029-0135, every contract shall contain a clause requiring such an examination and absolving the STATE from any liability for any misrepresentation or failure to provide information. Bidders shall have independently:
(1) Fully informed themselves as to the quality and quantity of materials and the character of the operations required; and
(2) Have made a careful examination of the location and quantity and quality of the forest products to be sold.
(1) Identification of bids.
(a) To ensure proper identification and special handling, bids shall be submitted in a sealed envelope appropriately marked or in the envelope provided by the STATE, whichever is applicable.
(b) The STATE shall not be responsible for the proper identification and handling of bids not submitted in the designated manner or format to the required delivery point.
(2) Receipt of bids.
(a) It is the bidder's responsibility to ensure that bids are received by the STATE at the required delivery point, prior to the stated bid opening time, regardless of the method used to submit them.
(b) Unless otherwise allowed by the STATE, no oral, telegraphic, or telephonic bids or modifications shall be considered.
(c) The STATE reserves the right to waive minor deficiencies in bid document requirements and the right to reject any and all bids.
Time For Receipt of Bids
(1) Time for the closing of bids: Bids shall be received in the designated place and manner until the time set for the close of the receipt of bids. No bid shall be received after the time appointed unless the time for the receipt of bids is expanded in the manner set out below. The STATE's agent designated for the receipt of bids shall determine when the time set for receipt has expired by reference to a clock maintained by the STATE in the place designated for the receipt of bids in the Invitation for Bids. In the absence of such a clock or in the event that the agent determines that the clock is inaccurate, the agent shall determine expiration of the time set for receipt of bids by whatever means the agent determines to be appropriate under the circumstances. The agent's determination shall not be subject to review.
(2) The time set for the receipt of bids may be extended at the sole discretion of the STATE:
(a) By written amendment to the Notice of Timber Sale which shall be effective when issued and which will be provided to persons who have requested a copy of the Notice of Timber Sale; or
(b) orally prior to the time set for the close of bids if the STATE's agent determines that events have occurred that have restricted competition by preventing potential bidders from making a submittal including but not limited to: road closures, unusually severe weather, acts of God or acts of the public enemy, physical obstruction of access to the bid depository and similar occurrences beyond the control of bidders. Such postponement shall be confirmed in writing to each person who submitted a bid and to persons who have requested a copy of the Notice of Timber Sale on the next business day. The time for receipt of bids shall be extended at least two business days from the day the notice is issued.
(3) The time set for the receipt of bids shall not be extended if the time set for the receipt of bids has expired and the envelope enclosing a sealed bid has been opened.
(4) The judgment of the STATE in electing to extend the time for the receipt of bids is not subject to review.
(1) Bid security shall be supplied by bidder in an amount not to exceed 10 percent of the appraised value in order to guarantee bidder adequately qualifies as required by the Notice of Timber Sale.
(2) Form of bid security. The following forms of bid security may be accepted by the STATE:
(b) Cashier's check;
(c) Money order;
(d) Surety bond;
(e) Assignment of surety;
(f) Irrevocable letters of credit; or
(g) Other securities as determined acceptable by the STATE. Surety bonds must be executed on a standard State form.
(3) Multiple Bids. A bidder may furnish one surety bid bond to cover deposits for more than one forest products sale bid that open on the same date.
(4) Return of bid security.
(a) The STATE may hold the bid security of all bidders until written notice of award is made to the successful bidder.
(b) The STATE may return bid securities to the apparent unsuccessful bidders if they are present at the bid opening. Otherwise, bid security refunds will be mailed to the apparent unsuccessful bidders.
(1) Purpose. The STATE may hold pre-bid conferences with prospective bidders, prior to the date and time set for solicitation closing, to explain contract requirements or to conduct site inspections.
(2) Required attendance. As a condition for bidding the STATE may require attendance at the pre-bid conference. When applicable, this requirement shall be contained on the Notice of Timber Sale.
(3) Scheduled time. The pre-bid conference shall be held within a reasonable time after the solicitation documents have been issued, but sufficiently before the bid opening date to allow consideration by bidders of the conference results in preparing bids.
(4) Statements not binding. Statements made by the STATE at the pre-bid conference are not binding upon the STATE unless confirmed by written changes in a revised Notice of Timber Sale or by written addendum.
Pre-Opening Modification or Withdrawal of Bids
(1) Bid Modifications. Once submitted, bids may be modified in writing prior to the time and date set for the bid opening. Such modifications shall be in writing, shall clearly explain the error and item to be corrected, shall be signed by the person entering the original bid, and shall be submitted in a sealed envelope.
(2) Bid Withdrawals. Once submitted, bids may be withdrawn prior to the time and date set for the bid opening.
Receipt, Opening, and Recording of Bids
(1) Receipt. Each bid, and any bid changes, upon receipt, shall be stored in a secure place until the bid opening. If bids are opened inadvertently, or are opened prior to the time and date set for bid opening because they were improperly identified, the opened bids shall be re-sealed and stored for opening at the correct time.
(2) Opening and recording. Bids shall be opened publicly, at the time, date, and place designated in the Notice of Timber Sale. To the extent practical, the name of each bidder, the bid price(s), and such other information as considered appropriate shall be read aloud. Award decisions shall not be made at the bid opening.
Cancellation of Invitations to Bid
(1) Cancellation in the public interest. An invitation to bid may be cancelled in whole or in part when cancellation is in the public interest, as determined by the STATE. The reasons for taking this action may be made part of the bid file.
(2) Notice of Cancellation. When an invitation to bid is cancelled prior to bid opening, notice of cancellation may be mailed, placed on the Oregon Department of Administrative Service's electronic procurement system known as the "Vendor Information Program", or otherwise made available or furnished to all known holders of solicitation documents.
Disposition of Bids if Solicitation Cancelled
(1) Prior to bid opening. When an invitation for bids is cancelled prior to bid opening, all bids received may be returned to bidders unopened, if submitted in a hard copy format with a clearly visible return address. If there is no return address on the envelope, the bid may be opened to determine the source and then returned to sender.
(2) After bid opening. When all bids are rejected, the bids received may be retained and become part of the STATE's permanent solicitation file.
Late Bids, Late Withdrawals, and Late Modifications
(1) Definition. Any bid received after the time and date set in the Notice of Timber Sale for receipt of bids is late. Any request for bid withdrawal or modification received after the time and date set for bid opening is late.
(2) Disposition. At the discretion of the STATE, no late bids, late modifications, or late withdrawals shall be considered.
Mistakes in Bids
(1) General. Clarification or withdrawal of a bid because of an inadvertent, nonjudgmental mistake in the bid requires careful consideration to protect the integrity of the competitive bidding system, and to assure fairness. Except as provided in this rule, if the mistake is attributable to an error in judgment, the bid may not be corrected. Bid correction or withdrawal by reason of a nonjudgmental mistake is permissible but only to the extent it is not contrary to the interest of the STATE or the fair treatment of other bidders.
(2) Mistakes discovered after bid opening but before award. This subsection prescribes procedures to be applied in situations where mistakes in bids are discovered after the time and date set for bid opening but before award:
(a) Minor informalities. Minor informalities are matters of form rather than substance that are evident from the bid documents, or are insignificant mistakes that can be waived or corrected promptly without prejudice to other bidders, or the STATE.
(b) Mistakes where intended, correct bid is evident. If the mistake and the intended correct bid item are clearly evident on the face of the bid form, or can be substantiated from accompanying documents, the STATE may accept the bid. Examples of mistakes that may be clearly evident on the face of the bid form are typographical errors, errors in extending unit prices, transposition errors, and arithmetical errors. In the event a bidder mistakenly submits more than one bid amount, the highest bid amount shall be considered the intended bid.
(c) Mistakes where intended correct bid is not evident. The STATE may not accept a bid in which a mistake is clearly evident on the face of the bid form but the intended correct bid is not clearly evident or cannot be substantiated from accompanying documents.
(3) Mistakes discovered after award.
(a) Each bidder and its surety shall be the sole guarantors of the correctness and accuracy of its bid. A claim of a mistake in the bid which is not brought to the notice of the STATE agent issuing the Notice of Award until after the award has been issued shall not be cause for cancellation, rescission, adjustment or correction of the contract and no relief from a claimed mistake in bid brought to the STATE's attention after award shall be allowed on the basis of a claim that the STATE knew or should have known of the mistake alleged.
(b) The STATE in its sole discretion may permit adjustment of the contract if:
(A) Correction of the mistake results in a contract that is more favorable to the STATE, price and other factors considered; and
(B) The offer as corrected remains responsive to the original solicitation;and
(C) Allowing the correction will not cause the contract resulting to be less favorable to the STATE than a contract that would result if the offer of the next highest bidder were accepted.
Bid Evaluation and Award - General
The contract, if awarded, may be awarded to the highest, responsive and qualified bidder. Consistent with the provisions of the Notice of Timber Sale, and in the public interest as determined by the STATE, awards may be made by item, groups of items, or entire bid. The STATE reserves the right to reject any bid not in compliance with the Notice requirements, and to reject any or all bids upon a finding of the STATE that it is in the public interest to do so.
(1) Definitions. As used in this rule:
(a) "Disqualification" means the debarment, exclusion, or suspension of a person from right to submit bids in response to the STATE's Notices of Timber Sales for a reasonable, specified period of time named in the order of disqualification. A bidder so debarred, excluded, or suspended is disqualified.
(b) "Person" means an individual, partnership, or corporation. Disqualification attaches to and follows the individual, so that an individual who is a partner in a partnership or an officer or principal in a corporation which is disqualified may not reform the business entity as a way of avoiding the disqualification.
(2) Grounds for disqualification. The following are grounds for bidder disqualification:
(a) The person does not have sufficient financial ability to perform the contract. If a bond is required to ensure performance of a contract, evidence that the person can acquire a surety bond in the amount and type required shall be sufficient to establish financial ability;
(b) The person is in noncompliance in a public contractual obligation. If the answer to one or more of the questions in OAR 629-029-0020, section (3), (A), (B), (C), or (D) is no, STATE may reject the bid.
(c) The person has discriminated against disadvantaged minority, women, or emerging small business enterprises in the awarding of subcontracts in a contract between the person and the STATE.
(d) The person is, at the time of bidding, in default status under OAR Chapter 629, Division 032, or OAR Chapter 141, Division 015.
(3) Investigation. The STATE may make such investigation as is necessary to determine whether there are grounds for disqualifying a person. If a bidder or prospective bidder fails to supply such information promptly as requested by the STATE, such failure is grounds for disqualification.
(4) Notice of disqualification. The bidder or prospective bidder will be notified of the STATE's decision to disqualify the person from bidding with the STATE.
High Tie Bids
(1) Definition. High tie bids are high responsive bids from responsible bidders that are identical in price.
(2) Award. Award shall be made by drawing lots among tied bidders. Method of Drawing Lots: As directed by the STATE.
Rejection of Individual Bids
(1) General. The STATE reserves the right to waive minor technicalities and the right to reject any and all bids. The STATE may reject in whole or in part, any bid not in compliance with all prescribed bidding procedures and requirements, and may reject for good cause any bid upon a finding of the STATE that it is in the public interest to do so.
(2) Reasons for rejection. Reasons for rejecting a bid include but are not limited to finding that:
(a) The bid is nonresponsive, that is, it does not conform in all material respects to the Notice of Timber Sale requirements; or
(b) The bidder has not qualified, i.e., has not properly provided the required financial documents and filled out an acceptable "Certificate of Eligibility to Bid on State Timber" form; or
(c) The bidder within the last five years has been found, in a civil, criminal, or administrative proceeding, to have committed or engaged in fraud, misrepresentation, price-rigging, unlawful anti-competitive conduct, or similar behavior; or
(d) The bidder within the last 3 years preceding their bid had one or more Federal, State or Local timber sales terminated for cause or default and the bidder did not fully execute the Certification of Eligibility to Bid on State Timber as provided in OAR 629-029-0020, or the bidder did not provide written explanation of prior termination or default as required, or the bid was rejected after review of the explanation submitted with the certification.
(e) The bidder has a pending or unresolved default under a timber sale contract with State Forester; or
(f) The bid security has not been submitted or properly executed as required by the Notice of Timber Sale documents; or
(g) Other circumstances of the particular bid, or bidder, indicate that acceptance of the bid would impair the integrity of the selection process or result in an imprudent contract by the STATE; or
(h) The bidder has not complied with the provisions of the federal act "Forest Resources Conservation Amendments Act of 1993", ORS 526, or OAR 629, Division 031, which prohibit the export of unprocessed timber from public lands in Oregon and other states.
(3) Form of Business Entity. For purposes of this rule the corporate or business form of bidders shall be subject to scrutiny, so that previously-disqualified bidders, or their officers and directors, may not by subterfuge, change of apparent ownership, or other adjustments in formal appearance, avoid application of this rule.
Rejection of All Bids
(1) Bid rejection. All bids may be rejected for good cause upon a finding by the STATE it is in the public interest to do so. Notification of rejection of all bids, along with the good cause justification and finding of public interest, may be sent to all who submitted a bid.
(2) Rejection criteria. Reasons for rejecting all bids include but are not limited to the following:
(a) Due to the content of or error in the solicitation documents, including its terms, conditions, or specifications, the solicitation process unnecessarily restricted competition for the public contract; or
(b) The price presented by the highest qualified bidder is, in the opinion of the STATE, too low to justify acceptance of the bid; or
(c) Misconduct, error, or ambiguous or misleading provisions in the solicitation documents threaten the fairness and integrity of the competitive process; or
(d) Causes other than legitimate market forces threaten the integrity of the competitive bidding process. These causes include, but are not limited to, those that tend to limit competition such as restrictions on competition, collusion, corruption, unlawful anti-competitive conduct, and inadvertent or intentional errors in the solicitation documents.
Contract Award. At the discretion of the STATE, the apparent high bidder will be notified of the contract award.
Protest of Contract Award
(1) Purpose. The purpose of this rule is to require adversely affected or aggrieved bidders on a STATE solicitation for bids to exhaust all avenues of administrative review and relief before seeking judicial review of the STATE's contract award decision.
(2) Notice of Award.
(a) The STATE's written notice of contract award (or other contract initiating document, e.g., a notice of intent to award, hereinafter referred to collectively as the "award documents"), shall constitute a final decision of the STATE to award the contract if no written protest of the contract award is filed with the STATE within 14 calendar days following issuance of the award documents. If a protest of contract award is timely filed by an actual aggrieved bidder, the award documents shall constitute a final decision of the STATE only upon issuance to the protesting bidder of a written decision denying the protest and affirming the award.
(b) Unsuccessful bidders will generally not be notified that a contract has been awarded.
(3) Right to protest. Any qualified bidder who is adversely affected or aggrieved by the STATE's award of the contract to another bidder shall have 14 calendar days after issuance of the award documents to submit a written protest of the award. The written protest shall specify the grounds upon which the protest is based. In order to be an adversely affected or aggrieved bidder with a right to submit a written protest, a bidder must itself claim to be eligible for award of the contract as the highest responsive, responsible bidder and must be next in line for award, i.e., the protester must claim that all higher bidders are ineligible for award:
(a) because their bids were nonresponsive; or
(b) as a result of the STATE committing a material violation of a solicitation provision or of an applicable procurement statute or administrative rule, the protester was unfairly evaluated and would have, but for such material violation, been the highest bidder. The STATE may not entertain a protest submitted after the time period established in this rule.
(4) Authority to resolve protest. The STATE may settle or resolve a written protest submitted in accordance with the requirements of section (3) of this rule.
(5) Decision. If the protest is not settled or resolved by mutual agreement, the STATE may promptly issue a written decision on the protest.
Availability of Award Decision
(1) Contract documents. A signed contract document may be sent to the successful bidder.
(2) Notification to unsuccessful bidders. Unsuccessful bidders generally will not be notified that a contract has been awarded.
(1) Performance bond security, at the minimum shall be 20 percent of the bid, or an amount equal to the value of the project work (rounded up to the nearest thousand), whichever is greater. This requirement will be stated in the Notice documents.
(2) Form of bond security. The following forms of bond security may be accepted by the STATE:
(b) Cashier's check;
(c) Money order;
(d) Surety bond;
(e) Assignment of surety;
(f) Irrevocable letters of credit; or
(g) Other securities as determined acceptable by the STATE.
Surety bonds must be executed on a standard State form.
(3) Bonds shall be retained for 120 days after acceptance of operations.
(1) State may require payment bond security. This may be in the form of a Timber Payment Bond or a Blanket Payment Bond. Payment bond security shall be in the form of:
(b) Cashier's check;
(c) Money order;
(d) Surety bond;
(e) Assignment of surety;
(f) Irrevocable letters of credit; or
(g) Other securities as determined acceptable by the STATE.
(2) At no time shall the amount of the payment bond(s) be less than the value of timber removal and not paid for by PURCHASER, and shall at a minimum be in an amount equal to the standard installment, or the aggregate amount of installments when a blanket bond is used. Surety bonds must be executed on a standard State form.
Contract Cancellation Procedures
(1) Grounds for cancellation. The STATE may, at its option, cancel a contract, for any material violation of the provisions of the contract. Such provisions generally include, but are not limited to:
(a) Standard terms and conditions included in all contracts;
(b) Product or service specifications;
(c) Delivery or completion requirements; or
(d) Contracted pricing.
(2) Remedies cumulative. No cancellation of a contract shall, unless other remedies are expressly limited by the terms of the particular contract, restrict or abrogate any other remedy available to the STATE that is provided either by law or under the particular contract.
(3) Notice. The STATE will provide the PURCHASER written notice of the grounds for cancellation and its intention to cancel the contract. If the PURCHASER provided a performance and payment bond, the surety may also be provided with a copy of the notice of contract cancellation. The notice may include (i) the effective date of the intended cancellation, (ii) notice of the amount of time (if any) in which the STATE will permit the PURCHASER to correct the failure to perform. The contract may provide contract cancellation procedures that are different from, or in addition to, those provided in this rule.
(4) Contract completion by substitute contractor. If the PURCHASER has provided a performance and payment bond, the STATE may afford the PURCHASER's surety the opportunity, upon the surety's receipt of a PURCHASER's contract cancellation notice, to provide a substitute contractor as qualified by STATE, to complete performance of the contract. Performance by the substitute contractor shall be rendered pursuant to all material provisions of the original contract, including the provisions of the performance and payment bond. Such substitute performance does not involve the award of a new public contract and shall not be subject to competitive bidding provisions.
(1) Conditions of contracts concerning payment of laborers and materialmen, contributions to Industrial Accident Fund, liens, and withholding taxes. Contracts entered into by the STATE may contain a condition that the PURCHASER shall:
(a) Make payment promptly, as due, to all persons supplying to such contractor labor or material for the prosecution of the work provided for in such contract.
(b) Pay all required contributions or amounts due the Industrial Accident Fund under ORS Chapter 656 from such contractor or subcontractor incurred in the performance of the contract.
(c) Not permit any lien or claim to be filed or prosecuted against the state, county, school district, municipality, municipal corporation, or subdivision thereof, on account of any labor or material furnished.
(d) Pay to the Department of Revenue all sums withheld from the employees pursuant to ORS 316.167.
(2) Condition concerning payment of claims by public officers.
(a) Contracts entered into by the STATE may contain a clause or condition that if the PURCHASER fails, neglects, or refuses to make prompt payment of any claim for labor or services furnished to PURCHASER or a subcontractor in connection with work to be done under a contract, as such claim becomes due, the STATE may pay such claim to the person furnishing the labor or services and obtain reimbursement from PURCHASER or from PURCHASER's performance bond.
(b) Payment of any claim in such manner shall not relieve PURCHASER or surety from obligations with respect to any unpaid claims.
(3) Provisions relating to environmental and natural resources laws and rules. Bid documents may make specific reference to federal, state, and local agencies that have enacted ordinances or regulations dealing with the prevention of environmental pollution and the preservation of natural resources that affect the performance of the contract.
(4) Provisions relating to termination of contract. Contracts entered into by the STATE shall contain a clause that allows the State to terminate contract, in whole or in part, whenever the STATE determines it is in its interest to do so.
PURCHASERS must "qualify" under the terms of the contract within 30 days of contract award. To "qualify" a PURCHASER must submit the first payment, proof of insurance and an adequate performance bond, as stated in the Notice and in the contract documents. If a PURCHASER fails to "qualify" within the required 30 days, the STATE may retain any bid deposit submitted by PURCHASER as liquidated damages. In no event shall a PURCHASER be permitted to conduct operations under a contract prior to meeting the qualification requirements for that contract.