(a) Utilization.

1. (1) Contracts may be entered into by the utility owner for facility relocation when it is clearly shown that it is in the best interest of the Arkansas Department of Transportation, or that the utility owner is not adequately staffed or equipped to perform the work with its own forces.
2. (2) Such contracts must have the prior approval of the department before execution.

(b) Reimbursement.

1. (1) If reimbursement is requested, any contract to perform work in connection with the utility relocation shall be accomplished by a contract secured under a fully competitive bidding process in accordance with the utility owner's normal bidding process as required in 23 C.F.R. § 645.115.
2. (2) The contract shall be awarded to the lowest qualified bidder submitting a proposal in conformity with the requirements and specifications as set forth in an appropriate solicitation for bids that is approved by the Utility Section prior to advertisement.
3. (3) If a utility owner chooses to utilize other than the lowest qualified bidder, reimbursement will be allowed only for the amount of the low bid.

(c) Continuing contract.

1. (1) With prior approval by the department, an existing written continuing contract may be used for relocation work where it is demonstrated that such work is regularly performed for the utility owner under such contracts at reasonable costs.
2. (2) A copy of the continuing contract must be submitted with the utility owner's proposal.
3. (3) This may include existing continuing contracts with another utility owner.
4. (4) Where such other utility owner has an ownership interest in the facility to be relocated, the inter­company profit will not be reimbursed.

(d) Combined contract and force account work.

1. (1) When work is to be done by both company forces and by contract labor, the relocation agreement shall specifically describe the portion of the work to be accomplished by each.
2. (2) For example, where right-of-way clearing is to be performed by contract forces, the name of the contractor and the items of work covered by the contract should be clearly set forth in the relocation agreement or attachments thereto.

(e) Contract work of a minor nature.

1. (1) Where the utility owner proposes to contract outside the foregoing requirements for work of relatively minor cost or nature, the utility owner will be reimbursed provided it is demonstrated that such requirements are impractical and the utility owner's action did not result in an expenditure in excess of that justified by the prevailing conditions.
2. (2) Approval for this type of contract shall be approved by the department prior to incurring cost.