(A) Sureties and bonds.
(1) Bid bonds.
(a) Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the city to exceed $100,000. Bidder's security shall be a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, in a form satisfactory to the city. Nothing herein prevents the requirement of such bonds on construction contracts under $100,000 when the circumstances warrant.
(b) Bidder's security shall be in an amount equal to at least five percent (5%) of the amount of the bid.
(c) When the invitation for bids requires that bidder security be provided, noncompliance requires that the bid be rejected. However, the city may set forth by regulation exceptions to this requirement in the event of substantial compliance.
(d) After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids. However, if a bidder is permitted to withdraw his bid before award because of a mistake in the bid as allowed by § 24.104(E), no action shall be had against the bidder or the bidder's security.
(KRS 45A.430)
(2) Contract performance and payment bonds.
(a) When a construction contract is awarded in an amount in excess of $100,000, the following bonds shall be furnished to the city, and shall become binding on the parties upon the award of the contract:
1. A performance bond satisfactory to the city executed by a surety company authorized to do business in this state, or otherwise supplied, satisfactory to the city, in an amount equal to one hundred percent (100%) of the contract price as it may be increased; and
2. A payment bond satisfactory to the city, executed by a surety company authorized to do business in this state, or otherwise supplied, satisfactory to the city, for the protection of all persons supplying labor and material to the contractor or his subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to one hundred percent (100%) of the original contract price.
(b) Nothing in this division shall be construed to limit the authority of the city to require a performance bond or other security in addition to those bonds, or in circumstances other than as specified in division (2)(a) above, including, but not limited to bonds for the payment of taxes and unemployment insurance premiums.
(KRS 45A.435)
(3) Bond forms, filings, and copies.
(a) The city may promulgate by regulation the form of the bonds required by divisions (A)(1) and (2) above, or it may adopt the form established by the state under KRS 45A.175 to 45A.205.
(b) The city shall furnish a certified copy of a bond to any person who requests such and pays the reasonable fee for such copy. The copy shall be prima facie evidence of the contents, execution, and delivery of the original.
(KRS 45A.440)
(B) Cost or pricing data.
(1) A contractor shall submit cost or pricing data and shall certify that, to the best of his knowledge and belief, the cost or pricing data submitted was accurate, complete, and current as of a mutually determined specified date prior to the date of:
(a) Pricing of any negotiated contract where the total contract price is expected to exceed $50,000, or such lesser amount as may be prescribed by the city; or
(b) Pricing of any change order or contract modification which is expected to exceed $25,000, or such lesser amount as may be prescribed by the city.
(2) Any contract, change, or modification thereto under which a certificate is required shall contain a provision that the price to the city, including profit or fee, shall be adjusted to exclude any significant sums by which the city finds that such price was increased because the contractor-furnished cost or pricing data which, as of the date agreed upon between the parties, was inaccurate, incomplete, or not current.
(3) The requirement of this division need not be applied to contracts where the price negotiated is based on adequate price competition, established catalogue or market prices of commercial items sold in substantial quantities to the general public, prices set by law or regulation, or in exceptional cases where it is determined in writing that the requirements of this division may be waived, and the reasons for such waiver are enumerated in the determination.
(KRS 45A.405)
(C) Inspection of contractor's place of business; audit of records.
(1) The city may inspect the plant or place of business of a contractor or any subcontractor under any contract awarded or to be awarded by the city.
(2) The city may audit the books and records of any person who has submitted cost or pricing data under division (B) above, at any time until the period of record retention as set forth in division (3) below has expired. The right to audit hereunder shall only extend to those books and records reasonably connected with cost or pricing data submitted under § 24.117 and such books and records shall be maintained by the contractor or subcontractor for the period specified in division (3) below.
(3) The city shall be entitled to audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract other than a firm fixed-price type contract; however, this shall not limit the right to audit as set forth in division (C)(2) above. Such books and records shall be maintained by the contractor for a period of five (5) years from the date of final payment under the prime contract and by the subcontractor for a period of five (5) years from the date of final payment under the subcontract.
(KRS 45A.410) (Am. Ord. 2019-11-21(A), passed 11-21-19)