the opening of bids; and any special provisions or requirements which vary from or are not contained in the standard specifications.

All papers bound with or attached to the bid forms are considered a part thereof and must not be detached or altered when the bid is submitted.

The plans, specifications and other documents designated in the bid forms will be considered a part of the Invitation for Bids whether attached or not.

102.03 Reserved.

102.04 Interpretation of Quantities in Bid Schedule. The quantities appearing in the bid schedule are approximate only and are prepared for the comparison of bids. Payment to the Contractor will be made only for the actual quantities of work performed and accepted or materials furnished in accordance with the contract. The scheduled quantities of work to be done and materials to be furnished may each be increased, decreased, or omitted as hereinafter provided. Bid schedule quantities will be considered the original contract quantities.

102.05 Examination of Plans, Specifications, Special Provisions and Site of Work. The Government will prepare plans and specifications giving directions to be carried out by the Contractor.

When subsurface or design information is available, the Invitation for Bids (SF 20) will indicate the type of information available and where it may be inspected. This information may include geophysical data and interpretations (seismic or resistivity). Bidders are cautioned that interpretations of geophysical data are based on opinion and judgment. Bidders are advised to have these data and interpretations independently evaluated by someone qualified in this technical field before using them for bidding purposes.

When subsurface boring or test hole data is shown on the plans or included in the specifications it is for bidders information only.

While subsurface investigations will have been performed with reasonable care, there is no warranty or guaranty, either expressed or implied, that they will disclose the actual conditions which will be encountered during the progress of the work.

When a log of test borings is included in the subsurface investigation record, the data shown in the individual log of each test boring apply only to that particular boring and are not intended to be conclusive as to the character of any material between or around test borings.

Any interpretation of the Government's subsurface investigation record made by the bidder as to the types, characteristics, quantity and quality of any subsurface material or condition shall be at the sole risk of the bidder.

See SF 23A, General Provisions.

102.06 Preparation of Bid Forms.

See SF 22, Instructions to Bidders.

The bidder shall specify a unit price in figures, for each pay item for⚫ which a quantity is given and shall also show the products of the

respective unit prices and quantities written in figures in the column provided for that purpose and the total amount of the bid obtained by adding the amounts of the several items. In case of discrepancy between unit price and bid item total, the corrected unit price extension will govern. All the figures shall be in ink or typed.

When an item in the bid schedule contains a choice to be made by the bidder, the bidder shall indicate his choice in accordance with the specifications for that particular item, and thereafter no further choice will be permitted.

The bidder's bid must be signed with ink by the individual, by one or more members of the partnership, by one or more members or officers of each firm representing a joint venture, or by one or more officers of a corporation, or by an agent of the Contractor legally qualified and acceptable to the Government.

102.07 Irregular Bids. Bids will be considered irregular and may be rejected for the following reasons or as otherwise set forth in the standard forms contained in the Invitation for Bids:

(a) If the bid is on a form other than that furnished by the Government or if forms are altered.

(b) If there are unauthorized additions, conditional or alternative bids, or irregularities of any kind which may tend to make the bid incomplete, indefinite, or ambiguous as to its meaning.

(c) If the bidder adds any provisions reserving the right to accept or reject an award, or to enter into a contract pursuant to an award. This does not exclude a bid limiting the maximum gross amount of awards acceptable to any one bidder at any one bid letting, provided that any selection of awards will be made by the Government.

(d) If the bid does not contain a unit price for each pay item listed except in the case of authorized alternative pay items.

102.08 Bid Guarantee. See SF 22, Instructions to Bidders. Checks or money orders submitted as a bid guarantee shall be made payable to the Federal Highway Administration, U.S. Department of Transportation.

102.09 Submission of Bids. See SF 22, Instructions to Bidders. 102.10 Late Bids and Modifications or Withdrawals. See SF 22, Instructions to Bidders.

102.11 Combination or Conditional Bids. No combination bids, other than those specifically provided for in the bid forms by the Government will be considered. Conditional bids will be considered only when so stated in the special provisions.

102.12 Public Opening of Bids. See SF 22, Instruction to Bidders.

102.13 Rejection of Bids. The Government reserves the right to reject bids for any of the following reasons, or as otherwise set forth in the standard forms contained in the contract.

(a) Lack of competency as revealed by the financial statement and experience questionnaires required by SF 22, Instruction to Bidders.

(b) Uncompleted work which, in the judgment of the Government might hinder or prevent the prompt completion of additional work if awarded.

(c) Failure to pay or satisfactorily settle all bills due for labor and material on former contracts in force at the time of advertisement for bids.

(d) Failure to comply with any qualification regulations of the Gov

ernment.

(e) Default under previous contracts.

(f) More than one bid for the same work from a bidder under the same or different name.

(g) Evidence of collusion among bidders. Participants in such collusion will receive no recognition as bidders for any future work of the Government until any such participant shall have been reinstated as a qualified bidder.

(h) Otherwise not responsible.

102.14 Material Guarantee. See SF 23A, General Provisions.

Section 103.-AWARD AND EXECUTION OF CONTRACT

103.01 Consideration of Bids. After the bids are opened and read, they will be compared on the basis of the summation of the products of the quantities shown in the bid schedule by the unit bid prices. The results of such comparisons will be immediately available to the public.

103.02 Award of Contract. See SF 22, Instruction to Bidders. The award of contract will be made by written acceptance to the successful bidder within the period specified in the bid forms.

103.03 Reserved.

103.04 Return of Bid Guarantee. All bid guarantees other than bid bonds, except those of the two lowest bidders, will be returned immediately following the opening and checking of the bids. The retained bid guarantee of the unsuccessful of the two lowest bidders will be returned within 10 days following the award of contract and that of the successful bidder will be returned after satisfactory bonds have been furnished and the contract has been executed.

103.05 Contract and Bonds. Pursuant to SF 22 the successful bidder shall furnish performance and payment bonds as follows:

(a) A performance bond in the penal amount of 100 percent of the contract price at the time of award.

(b) A payment bond as follows:

(1) When the contract price is not more than $1,000,000, the amount shall be 50 percent of the contract price;

(2) When the contract price is more than $1,000,000, but no than $5,000,000, the penal amount shall be 40 percent of the co price; and,

(3) When the contract price is more than $5,000,000, the amount shall be $2,500,000.

(c) Additional Bond Security. In addition to the provisions of S the following shall apply: Each surety company bond (bid, I mance, payment) which purports to have been executed by an ag attorney-in-fact, for the corporate surety, is required to have s ted with it a power of attorney to the signatory agent or attorn fact, and executed by the corporate surety upon a date reas proximate to the date of the bond, and power of attorney shall i instance be retained with the bond.

103.07 Failure to Execute Contract. See SF 22, Instruct Bidders.

Section 104.-SCOPE OF WORK

104.01 Intent of Contract. The intent of the contract is to p for the construction and completion in every detail of the wo scribed. The Contractor shall furnish all labor, materials, equip tools, transportation and supplies required to complete the w accordance with the plans, specifications and terms of the contra 104.02 Changes, Differing Site Conditions and Variatio Quantities.

(a) Changes-See SF 23A, General Provisions.

(b) Differing Site Conditions-See SF 23A, General Provision (c) Variations in Quantities.

It is mutually agreed that it is inherent in the nature of hig construction that some changes in the plans and specifications m necessary during the course of construction to adjust them to conditions and that it is of the essence of the contract to recog normal and expected margin of variation in contract quantities a requiring or permitting any adjustment of contract price provided the quantity of any major item is not increased or decreased by than 25 percent of the quantity stated in the bid schedule.

Payment for work occasioned by changes or variations in quan will be made in accordance with the provisions under Subse 109.03. Any adjustment in contract time because of such chang variations will be made in accordance with the provisions of Subse 108.06.

104.03 Value Engineering

(a) (1) This subsection applies to those cost reduction proposals initiated and developed by the Contractor for changing the plans, specifications or other requirements of the contract. This subsection does not, however, apply to any such proposal unless it is identified by the Contractor, at the time of its submission as a proposal submitted pursuant to this subsection.

(2) The cost reduction proposals contemplated are those that would require a change to the contract; and would result in savings to the Government by providing a decrease in the cost of performance without impairing essential functions and characteristics such as service life, reliability, economy of operation, ease of maintenance, and necessary standardized features.

(b) As a minimum, the following information shall be submitted with each proposal:

(1) A description of the difference between the existing contract requirement and the proposed change, and the comparative advantages and disadvantages of each;

(2) An itemization of the requirements of the contract which must be changed if the proposal is adopted, and a recommendation as to how to make each such change (e.g., a suggested revision);

(3) An estimate of the reduction in performance costs that will result from adoption of the proposal, taking into account the costs of development and implementation by the Contractor (including any amount attributable to subcontracts in accordance with paragraph (e) below) and the basis for the estimate;

(4) A prediction of any effects the proposed change will have on collateral costs to the Government, costs of related items, and costs of maintenance and operation;

(5) A statement of the time by which a change order adopting the proposal must be issued so as to obtain the maximum cost reduction during the remainder of this contract, noting any effect on the contract completion time or delivery schedule; and

(6) The dates of any previous or concurrent submissions of the proposal, the numbers of the Government contracts under which submitted, and the previous actions by the Government, if known.

(c) (1) Cost reduction proposals submitted by the Contractor will be processed expeditiously; however, the Government shall not be liable for any delay in acting upon any proposals submitted pursuant to this subsection. The Contractor has the right to withdraw, in whole or in part, any value engineering change proposal not accepted by the Government within the period specified in the proposal. The decision of the Contracting Officer as to the acceptance of any such proposal will be final and shall not be subject to the "Disputes" clause of the contract.

(2) The Contracting Officer may accept, in whole or in part, before performance has been completed, any cost reduction proposal submitted pursuant to this subsection and not withdrawn by the Contractor