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UNC �Y Sc.... OF GOVERNMENT 3. Record of bids — For bids on projects in the informal bidding range, local governments must keep a record of all bids received [G.S. 143-131]; bids on projects in the formal bidding range are normally summarized in bid tabulations. 4. Negotiations with bidders — The local government cannot negotiate with bidders on projects in the formal bidding range unless the bid submitted by the apparent lowest responsive, responsible bidder exceeds funds available for the project. In this case, the local government may negotiate with that bidder and make "reasonable" changes in specifications and plans to bring the contract price to within funds available, and then it may award the contract to that bidder. If negotiations are unsuccessful, the project must be re -bid. [G.S. 143-129(b)] Step 6: Determine Successfuf Bidder (Standard of Award) 1. Standard of Award — For projects in both the informal and formal bidding ranges, the local government must award the contract to the lowest, responsive, responsible bidder taking into consideration quality, performance, and time specified in proposals for performance of the contract. [G.S. 143-129(b), G.S. 143-131(a)] a. Lowest cost —The lowest proposed cost among all bidders for the contract. b. Responsive Bid — Bid documents conform to bid specifications and meet all applicable legal requirements s c. Responsible Bidder— North Carolina courts have interpreted "responsible' to imply "skill, judgment and integrity necessary to the faithful performance of the contract, as well as sufficient financial resources and ability."s 2. Waiving deviations — Minor deviations or defects in bid submittals (which goes to the responsiveness of the bid) can be waived if the waiver does not disadvantage other bidders; the local government cannot waive material deviations in bid submittals or statutory requirements (such as advertised deadlines, bid deposits, and licensure requirements). Under no circumstances may the bidder modify or correct his bid. Step 7: Award the Contract 1. Projects below informal bidding range - Governing board approval is not required (unless by local policy); the contract can be awarded by any official or employee authorized by the governing board to award contracts on behalf of the local government. 5 Prof/ Food Servs. Mgmnt. v. N.C. Dept of Administration, 109 N.C. App. 265, 426 S.E.2d 447 (1993). 6 Kinsey Contracting Co. v. City of Fayetteville, 106 N.C. App. 383, 385, 416 S.E.2d 607, 609, disc. review denied, 332 N.C. 345, 421 S.E.2d 149 (1992). 'um ter 1 \n 6 1 Construction Contracting Basic Legal Requirements Updated September 2013 F-9 Page 82