Sec.22a-339d-4. Administrative program elements

(a) Allowable Project Costs. The following costs associated with diagnostic feasibility studies and eutrophication abatement programs are eligible for funding assistance:

(1) costs of salaries, benefits and expendable materials the applicant incurs for the project, except as provided for in subdivision (b) (6) of this section;

(2) diagnostic feasibility study report costs directly related to the development of a eutrophication abatement program;

(3) professional, consultant, and contractor services;

(4) preparation of construction drawings, specifications, estimates, and construction contract documents;

(5) costs under approved construction contracts;

(6) costs of complying with sections 22a-1 to 22a-1h, inclusive of the General Statutes;

(7) equipment, instruments, supplies, and chemicals to operate and maintain lake management systems and to conduct post implementation water quality monitoring;

(8) start-up services of new lake management systems including training of the applicant's employees;

(9) costs of complying with the procurement requirements of these regulations;

(10) costs of operation, maintenance, and monitoring of lake sediment removal projects;

(11) costs for controlling agricultural sources of nutrients and sediments if reviewed and recommended by the County Soil and Water Conservation District;

(12) weed harvesting equipment and weed harvesting disposal plans.

(b) Unallowable Project Costs. Costs not directly related to the development of a diagnostic feasibility study or eutrophication abatement program are unallowable. Such costs include, but are not limited to:

(1) costs outside the scope of the approved project;

(2) costs of preparation of applications, including a baseline study, preliminary plan of study, and permits required by federal, state, or local laws and regulations;

(3) administrative, professional, and legal activities associated with the establishment of special departments, agencies, commissions, regions, districts, or other units of government;

(4) personal injury compensation or damage arising out of the project whether determined by arbitration, negotiation, or otherwise;

(5) fines and penalties due to violations of, or failure to comply with, federal, state or local laws or regulations;

(6) ordinary operating expenses of the applicant, such as salaries and expenses of officers, not related to the project;

(7) costs of water quality monitoring not conducted in accordance with a quality assurance project plan;

(8) approval, preparation, issuance and sale of bonds or other forms of indebtedness required to finance the project and the interest on them;

(9) costs of operation, maintenance, and monitoring of lake management systems and watershed management systems after the first year of operation, except as provided in subdivisions (a) (10) and (c) (5) of this section;

(10) the cost of land acquired in fee simple or by lease or easement to provide public access to a lake;

(11) lake management based principally on the application of aquatic pesticide chemicals;

(12) diagnostic feasibility studies of municipal and industrial wastewater treatment plant discharges to Class B impoundments;

(13) the costs of municipal and industrial wastewater treatment to remove nutrients from discharges to Class B impoundments.

(c) Allowable Project Costs, If Approved. The following project costs may be allowed by the Commissioner:

(1) the cost of land acquired in fee simple or by lease or easement that will be an integral part of a eutrophication abatement program;

(2) the temporary application of aquatic pesticide chemicals if used in conjunction with the start-up of another lake management system;

(3) costs of mitigating adverse environmental effects of winter drawdown for macrophyte control;

(4) costs of managing populations of waterbirds;

(5) costs of operation, maintenance, and monitoring of lake management systems if the state has a continuing interest in the project.

(d) Required Provisions of Professional Services Contracts. Municipalities and lake associations shall include subagreement clauses that meet the following requirements:

(1) each subagreement must include provisions defining a sound and complete agreement, including the:

(A) nature, scope, and extent of work to be performed;

(B) time frame for performance;

(C) total costs of subagreement;

(D) payment provisions;

(2) all subagreements awarded in excess of $10,000 shall contain provisions requiring compliance with State and Federal equal employment opportunity laws and regulations.

(e) Required Provisions of Construction Contracts.

(1) All construction contract specifications shall include the following provisions:

(A) bid bond in an amount of 5 percent of bid price:

(B) a statement which indicates a time period for project completion;

(C) a dollar amount, per day, for liquidated damages;

(D) extra work and change order profit amounts;

(E) contractor's insurance, minimum amounts as follows:

(i) contractor's comprehensive and general liability and property damage, $1,000,000 liability — $500,000 property;

(ii) owner's protective liability and property damage, $1,000,000 liability — $500,000 property;

(iii) contractor's comprehensive motor vehicle liability and property damage, $1,000,000 liability — $500,000 property.

(2) Where required by statute, executive order, or regulation, all construction contract specification shall include the following additional provisions:

(A) payment and performance bonds each for 100% of bid price (section 49-41 of the General Statutes);

(B) maximum retainage on payments to contractors must not exceed 5 percent (section 49-41b of the General Statutes);

(C) enforcement of payment by general contractor to subcontractor (section 49-41a of the General Statutes);

(D) substitution of securities for retainage (section 3-112a of the General Statutes);

(E) nondiscrimination clause (section 4-114a of the General Statutes);

(F) a copy of Executive Order No. Three;

(G) prevailing State Wage Rates (section 31-53 of the General Statutes);

(H) a copy of Executive Order No. Seventeen;

(I) contractor's exempt purchase certificate (section 12-426-18 of the Regulations of Connecticut State Agencies);

(J) contractor's worker's compensation insurance (chapter 568 of the General Statutes).

(f) Types of Contracts. Each contract shall be a fixed price (lump sum or unit price or a combination of the two) contract, unless the Commissioner gives prior written approval for the applicant to use some other acceptable type of contract. The cost-plus-percentage-of-cost type of contract shall not be used in any event.

(g) Construction Contract Procurement Requirements. The applicant shall conduct all procurement transactions in a manner that will provide maximum, open, and free competition. Procurement practices shall not unduly restrict or eliminate competition. Examples of practices considered to be unduly restrictive include:

(1) noncompetitive practices between contractors and firms;

(2) bid collusion;

(3) organizational conflicts of interest;

(4) unnecessary experience and bonding requirements;

(5) local laws, ordinances, regulations, or procedures which give local bidders or proposers preference over other bidders or proposers in evaluating bids or proposals;

(6) placing unreasonable requirements on firms in order for them to qualify to do the project work.

(h) Advertising. If the value of the contract is less than $25,000 then a minimum of 3 bids shall be solicited. Each construction contract equal to or in excess of $25,000 shall be awarded after advertising, and advertising shall be in accordance with the following:

(1) the applicant shall cause notice to be given of the solicitation by publication in journals or newspapers of general circulation beyond the applicant's locality, inviting bids on the project work and stating the method by which bidding documents may be obtained or examined;

(2) adequate time, not less than 10 days, shall be allowed between the date when public notice is last published and the date by which bids must be submitted. Bidding documents (including specifications and drawings) shall be available to prospective bidders from the date when such notice is first published;

(3) the applicant shall prepare a reasonable number of bidding documents (invitations for bids) and shall furnish them upon request on a first-come, first-served basis. The applicant shall maintain a complete set of bidding documents and shall make them available for inspection and copying by any party. The bidding documents shall include:

(A) a complete statement of the work to be performed, including necessary drawings and specifications, and the required completion schedule;

(B) the terms and conditions of the contract to be awarded;

(C) a clear explanation of the method of bidding and the method of evaluating the bid prices, and the basis and method for award of the contract;

(D) responsibility requirements or criteria which will be employed in evaluating bidders;

(E) the following statement:

"Any contract or contracts awarded under this invitation for bids are expected to be funded in part by a grant from the State of Connecticut (Department of Environmental Protection). Neither the State of Connecticut nor any of its departments, agencies or employees is or will be a party to this invitation for bids or any resulting contract."

(F) the prevailing State Wage Rates in accordance with section 31-53 of the General Statutes;

(4) the applicant shall provide for bidding by a sealed bid and for the safeguarding of bids received until public opening;

(5) if an applicant desires to amend any part of the bidding documents (including drawings and specifications) during the period when bids are being prepared, the addenda shall be communicated in writing to all firms which have obtained bidding documents at least five working days prior to the bid opening. Any applicant which fails to comply with this deadline and then proceeds to open bids, may not receive funding assistance for any costs associated with such addenda;

(6) a firm which has submitted a bid shall be allowed to modify or withdraw its bid before the time of bid opening;

(7) the applicant shall provide for a public opening of bids at the place, date, and time announced in the bidding documents;

(8) award shall be made to the lowest, responsible, qualified bidder as follows:

(A) after bids are opened, the applicant shall evaluate them for conformance with the methods and criteria set forth in the bidding documents;

(B) the applicant may reserve the right to reject all bids. Unless all bids are rejected for good cause, award shall be made to the lowest, responsible qualified bidder;

(C) if the applicant intends to make the award to a firm which did not submit the lowest bid, it shall prepare a written statement before any award, explaining why each lower bidder was deemed nonresponsible or unqualified. The applicant shall retain such statement in its files and forward a copy to the Commissioner for review.

(i) Reporting Requirements. The applicant shall secure, in writing, the Commissioner's authorization to award each construction contract which has an aggregate value over $10,000. The request for such authorization shall include:

(1) name, address, telephone number, and employee identification number of the construction contractor;

(2) amount of the award;

(3) estimated starting and completion dates;

(4) project number, name, and site location of the project; and

(5) a copy of the tabulations of bids or offers and the name of each bidder or offeror.

(j) Professional Services Procurement Requirements.

(1) Cost-plus-percentage-of-cost and percentage-of-construction-cost contracts are prohibited. Cost reimbursement, fixed price, or per diem contracts or combinations of these may be negotiated for professional services. A fixed price contract is generally used only when the scope and extent of work to be performed is clearly defined. In most other cases, a cost reimbursement type of contract is more appropriate. A per diem contract may be used if no other type of contract is appropriate. An incentive fee may be used if the applicant submits an adequate independent cost estimate and price comparison.

(2) Adequate public notice shall be given for the procurement of professional services for all subagreements. Applicants shall publish a notice of request for qualifications in newspapers or publications of general circulation over a reasonable area and, in addition, if desired, through posted public notices or written notification directed to interested persons, firms, or professional organizations inviting the submission of statements of qualifications. The announcement shall clearly state the deadline and place for submission of qualification statements. Public notice is not required under the following circumstances:

(A) for the design or construction phases of a eutrophication abatement project if the applicant is satisfied with the qualifications and performance of any engineer who performed all or any part of the design work and the engineer has the capacity to perform the subsequent steps;

(B) the applicant desires the same consultant to provide professional services for the subsequent steps or for subsequent segments of design work under one grant if a eutrophication abatement project is segmented into two or more construction projects. If the design work is accordingly segmented so that the initial contract for preparation of construction drawings and specifications does not cover the entire eutrophication abatement project to be built under one grant, the applicant may use the same engineering firm that was selected for the initial segment of design work for subsequent segments.

(3) Requests for professional services proposals shall be sent to no fewer than three candidates who either responded to the public announcement or were selected from the prequalified list, unless, after good faith effort to solicit qualifications, fewer than three qualified candidates respond, in which case all qualified candidates must be provided requests for proposals. Requests for professional services proposals shall be in writing and shall contain the information necessary to enable a prospective offeror to prepare a proposal properly. The request for proposals shall include a solicitation statement, inform offerors of the evaluation criteria and clearly state the deadline and place for submission.

(4) All proposals submitted in response to the request for professional services proposals shall be uniformly evaluated. The applicant shall also evaluate the candidate's proposed method of accomplishing the work required.

(5)

(A) Applicants are responsible for negotiation of their contracts for professional services. Contract procurement including negotiation may be performed by the applicant directly or by another person or firm retained for the purpose and may include the services of technical, legal, audit, or other specialists to the extent appropriate.

(B) The applicant shall submit to the Commissioner documentation of the public notice of need for professional services and selection procedures, and a copy of the proposed subagreement.

(C) The Commissioner shall review the complete subagreement procurement procedure and approve the applicant's compliance with appropriate procedures before the applicant awards the subagreement.

(k) Deviations.

The Commissioner may approve deviations from the requirements of subsections (d) to (j), inclusive, of this section when he or she determines that such deviations are essential to effect necessary grant actions or when special circumstances make such deviations in the best interest of the State.

(l) Federally funded projects.

If the applicant is receiving funding under the Federal Act, procurement procedures must comply with 40 CFR Part 33.

(Effective July 27, 1988)