Case Information
*1 OFFICE OF TNE ATYORNEY GENERAL OF TEXAS
AUSTIN
honorable D. C. Greer
State Highway Engineer
Austin, Texaco
Deer Sir:
We aokuowlebgs
31, 1941, In whlah you
prrtnsnt upon the
tion of the project ana requested the !1ig,;;S*~ Depeirtment to assume the coqlatlon In any minner it saw fit, as Is orovlded by the oontraot sgecl- flcations. Luring the conference, the Aondlng Company repreeentatlve bequested that he be DEr- *2 Honorable b. C. Grew, Page 2
Bitted seoure lnfomal bl&dr fr om l number of ooatrdotor8 theretofore appmrd by the Iii&a- way Dspartasnt for the oompfetloa of the pro- Jeot, wlth the understandlog the Xlghwy Departoent would enter lnto agreement with the lowest blddrr for oompletlorr of the proJsot as orlglnally planned. Under thlr plan, the contrsotor, whose bid be seleoted for the oomplrtlon at the projsot, would furnish bond ln the amount of hie bid.
a . . . . Proolalon tar the submlsrlon to oompetltlve bids of all oontraotr proposed to bA mado by 6tate Riqhway Cepartaent 1s nade hrtiole 6674h, Vernonca Revisad Civil statutes Texas. Artlole 68743, red&s as tollorsi
*The suooessful bldler or bidders shall enter Into writton oontrsota wltb eald depart- . msnt, and shall lV3 bond la such amount as la now provided b;t ax, oonditlonsd !I tor the. falth- ful oozplisnoe with hle bid and performnor of the contract and payable to the State alghway Departiant for the use benefit ot the State IiIghra;r Fund.’
Item 8.7 of tine oontraot apsolfleatlons provldee trat in the event ot abanSonnent of work or default of the 2ontraot by the oontraotor thrt the State Highway Departsent 6%~ ta’re over ths proseoutlon of work, appropriate or use any or all material and equipmant on the ground as msy be sulta- the oorrlJ~etion of the ble, and enter lnto an agrsersnt contract aocordlng to the terra sad wovlslons thereof or usa such other .methods as In the oglnlon the Sn+ne& may oou@etion be required of the contract In aoce?tabls smnner.
Analysis of the lnatsnt situation reveals that ths contra& ~$8 orIglnsllp let end entered into Un.ter tk8 au- thority of and In oompllscce with the ap?licsble stiitutory I)?( rLsions, bond in the mount of tks contract being furnlshs3 Company. Althou:L the contrsctor bJ the &erican &main3 haa a~faulted the State Is P~lly proteoted by the ‘bon3 and *3 F!imorablO D. C. Grwr, Paqe 3
thare 1s ao ooaaaIon for the suboIsslon OS aoapetltlve bide as rsqulred under hrtlale 6674h, supra, bsfore arrangersnts Into the ooapletlon of projeot. are entared The Hlqhnejy Department Is authorlted by ftem 6;7 05 the oontraot opcolf~catlans assuas comoletlon o? the oontraot In what- ever mnnsr is oaosptsble un3rr the oxlstlng olrowastanoes. No contrary provlsloa a?psars in the statutes and no method procedure Is Were eug;Jeete& Artlala 66?4h hsvlng al- ready been oola?lIed with end the ssftguards provided that suoceedlng artloles having already been brought lnto exlstenoe them would appear to be no neceesIty for the re- subnleelon of oompetltIvs bids.
It la, therefore, the opinion of this departmnt that the Highway Department legally aocspt lnforaal bids taken from qusllfled and apCuW@d oontreotora by the bond- lnz ooznpany wlthout advertising such bids as provided by Artlole 667411 and enter Into agreeaent with the low bidder ror tha cowletlon of the Lea1 contraot. We note that this procedure was requested and lnstlqsted by tS% bonding congany, and and ve sqgest racpeat bs redwed ta wrltlng, tlaf all subsequent tranerotlons be refleot%d by urltten In- The apglIoatIon of tbls oglnlon, course, 1s strum9nts. llnlted to the s~eolflo faot elt~atlon presented In your lettsr. foure very truly
. .-.m - ATTOXNZY ,GEIlEtAL 02’ TE;%AS , RC:Lx’