(a)

1. (1) In the CWRLF program, each borrower will be expected to obtain the services of:

   1. (A) A consulting engineer;
   2. (B) Bond counsel; and
   3. (C) Construction contractor or contractors.
2. (2) All procurement transactions shall be conducted in a way that provides maximum open and free competition.

(b) Professional services.

1. (1) Procurement of engineering, bond counsel, and other professional services shall be accomplished according to state law before entering into a memorandum of agreement with the Arkansas Natural Resources Commission staff.

2. (2)

   1. (A) A public request for qualifications for professional services should be published in professional journals or newspapers of statewide circulation.
   2. (B) The announcement must state the deadline and place for submission of qualification statements.
   3. (C) Adequate time must be allowed between the date when the public notice is first published and the date when qualifications must be submitted.
3. (3) The borrower will maintain records that include the rationale for the procurement method followed.
4. (4) Documentation will be required to assure affirmative steps will be taken to ensure the use of minority business enterprise firms and women business enterprise firms when possible.

5. (5)

   1. (A) The borrower shall submit all proposed and/or executed professional service contracts to the commission staff for review and approval.
   2. (B) Contracts will be of the type and form prescribed by the commission staff.
   3. (C) Cost-plus-percentage-of-cost and percentage of construction costs are prohibited for construction phase services.

6. (6)

   1. (A) The commission requires that the borrower obtain a consulting engineer to assure that the borrower's project will be the best solution to its problem.
   2. (B) Therefore, the commission considers it a conflict of interest and will not enter into a memorandum of agreement if the consulting engineer also engages in the sales or representation of equipment or processes for wastewater treatment.

(c) Construction services.

1. (1)

   1. (A) Each construction contract shall be advertised for bidders after commission staff approval.
   2. (B) Adequate time, not less than thirty (30) days, must be allowed between the date when public notice is first published and the date by which bids must be submitted.
   3. (C) Bidding documents shall be available to prospective bidders from the date the notice is first published.

2. (2)

   1. (A) Each contract shall be a fixed price (lump sum, unit price, or a combination of the two (2)) contract.
   2. (B) The commission staff can give advance written approval for the borrower to use another acceptable type of contract.
   3. (C) The cost-plus-percentage-of-cost contract shall not be used in any event.

3. (3)

   1. (A) Awards shall be made only to responsive, responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement.
   2. (B) Contracts shall not be awarded before commission staff approval.
4. (4) Documentation will be required to assure affirmative steps will be taken to ensure the use of minority business enterprises, women business enterprises, and labor surplus area firms when possible.
5. (5) Each contract shall incorporate supplemental specifications as prepared by the commission staff that includes but is not limited to standard procurement procedures.

(d) Equipment and material procurement.

1. (1) The borrower may purchase needed equipment and materials directly to avoid the increased costs associated with including such items in a general construction contract.

2. (2) Should the borrower elect to use this method, the following procedures shall apply:

   1. (A)

(i) Each contract shall only be awarded after formal advertising and concurrence by the commission staff.

1. (ii) Adequate time as required by state law shall be allowed between the date when public notice is first published and the date by which bids must be submitted.

   1. (iii) Bidding documents shall be available to prospective bidders from the date the notice is first published;

   2. (B)

      1. (i) Each contract shall be a fixed price (lump sum, unit price, or a combination of the two (2)) contract.
      2. (ii) The commission staff can give advance written approval for the borrower to use another acceptable type of contract.
      3. (iii) The cost-plus-percentage-of-cost contract shall not be used in any event;
   3. (C) Awards shall be made only to responsive, responsible suppliers possessing the ability to perform successfully under the terms and conditions of the proposed procurement; and
   4. (D) The borrower shall submit all proposed contracts for equipment or material purchase to the commission staff for review, approval, and authorization to advertise for bids.

(e) Small purchases.

1. (1)

   1. (A) A small purchase is the procurement of materials, supplies, and services when the aggregate amount involved in any one (1) transaction does not exceed the minimum amount specified by state law for competitive bidding by first-class cities (e.g., Arkansas Code § 14-58-303(b)), irrespective of the type of borrower.
   2. (B) The small purchase limitation applies to the aggregate total of an order, including all estimated handling and freight charges, overhead, and profit to be paid under the order.
   3. (C) In arriving at the aggregate amount involved in any one (1) transaction, all items that should properly be grouped together must be included.
   4. (D) Reasonable competition shall be obtained by soliciting at least two (2) quotes for each order.

2. (2)

   1. (A) Contracts for small purchases need not be a bilaterally executed written agreement.
   2. (B) Where appropriate, unilateral purchase orders, sales slips, memoranda, or oral price quotations and the like may be used to minimize paperwork.
   3. (C) Retention in the purchase files of these documents, written quotations received, references to catalogs, or printed price lists used will suffice as the record supporting the price paid.

(f) Noncompetitive procurement.

1. (1) This method may be used only with written approval of the commission staff.

2. (2) To use this method, one (1) of the following must apply:

   1. (A) The item is available only from one (1) source;
   2. (B) The need for the item precludes a delay; or
   3. (C) After appropriate solicitation, competition is found inadequate.