††††† 600 KAR 6:040. Prequalification of firms for engineering or engineering-related services.

 

††††† RELATES TO: KRS 45A.800-45A.835, 23 C.F.R. 172, 49 C.F.R. 18, 23 U.S.C.

††††† STATUTORY AUTHORITY: KRS 45A.807(2), 23 C.F.R. 172, 49 C.F.R. 18, 23 U.S.C.

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 45A.807(2) requires the Transportation Cabinet to promulgate administrative regulations to implement its procurement of engineering or engineering-related services pursuant to KRS 45A.800 to 45A.835. This administrative regulation sets forth the procedure and standards for the prequalification of firms for engineering or engineering-related services while implementing the provisions of KRS 45A.800 to 45A.835.

 

††††† Section 1. Application for Prequalification for Engineering or Engineering-related Services. (1) A firm desiring consideration for prequalification shall complete each qualification questionnaire pertaining to the categories for which prequalification is desired, as follows:

††††† (a) Consulting Engineer and Related Services Prequalification Application;

††††† (b) Prequalification Requirements for Geotechnical Drilling Services;

††††† (c) Prequalification Requirements for Geotechnical Engineering Services; or

††††† (d) Prequalification Requirements for Geotechnical Laboratory Services.

††††† (2)(a) A firm desiring to be considered for an award as a prime shall provide an original certificate of a continuous professional liability policy in an amount not less than $1,000,000 with the application.

††††† (b) A certificate of self-insurance shall not be accepted by the Transportation Cabinet.

††††† (3) The completed prequalification form and original certificate of a continuous professional liability policy shall be submitted to the division of Program Performance, Transportation Cabinet Office Building, 200 Mero Street, Frankfort, Kentucky 40622.

††††† (4) If a prequalified firm ceases to exist or ceases to provide engineering services as a prime, it shall continue to maintain a minimum of $1,000,000 in professional liability insurance for a project that was designed by the firm for two (2) years beyond the date the project was opened to traffic.

††††† (5) A firm shall have filed the proof of professional liability insurance required by subsection (2)(a) of this section in order to submit a proposal on a project to the Transportation Cabinet.

 

††††† Section 2. Evaluation of Applications for Prequalification. (1) Each firmís qualifications for a requested prequalification category shall be reviewed by the offices or divisions within the cabinet with expertise in that requested prequalification category.

††††† (2) The division of Program Performance shall review and maintain the original certificate of continuous professional liability policy for each firm desiring prequalification as a prime.

††††† (3) The criteria for prequalification to be used by the user divisions and offices shall be the criteria listed in the Appendix to the Consulting Engineer and Related Services Prequalification Application.

††††† (4) The head of the user division or office shall notify the division of Program Performance of its evaluation results.

††††† (5)(a) The Transportation Cabinet may verify the financial and other information included in the application of a firm.

††††† (b) Verification shall be accomplished in the same manner as an audit performed pursuant to 600 KAR 6:080.

††††† (6)(a) The division of Program Performance shall notify each firm of all evaluation results involving that firm.

††††† (b) If a firm is disapproved for any requested prequalification category or service, the firm shall also be notified of the appeals procedure set forth in Section 6 of this administrative regulation.

 

††††† Section 3. Annual Requalification. (1)(a) A prequalified firm shall annually submit the following to the division of Program Performance on or prior to its anniversary dates of prequalification:

††††† 1. Application for Prequalification for Engineering or Engineering-related Services. A firm desiring requalification shall complete each qualification questionnaire pertaining to the categories for which prequalification is desired; and

††††† 2. An original certificate of continuous professional liability policy in an amount not less than $1,000,000.

††††† (b) Within five (5) months of the end of the firmís fiscal year, an updated overhead submission packet shall be submitted to the Division of Audits External Audit Branch. The overhead package shall include the following business records that each firm keeps during the regular course of business activities:

††††† 1. Schedule of Indirect Costs;

††††† 2. Schedule of Employees, Pay Rates, and Job Classifications;

††††† 3. Payroll register for the current year;

††††† 4. Detailed General Ledger for the audit period; and

††††† 5. Certified or Audited Financial Statement for the audit period.

††††† (2) The annual application shall include a completed set of the appropriate qualification forms and a copy of the firm's current marketing brochure, if one exists, for each functional area for which the firm is requesting prequalification.

††††† (3) Failure to submit the completed forms or the original certificate of a continuous professional liability policy in a timely manner shall cause the removal of the firm's prequalification status.

††††† (4) The annual renewal application shall be evaluated in accordance with the provisions of Section 2 of this administrative regulation.

 

††††† Section 4. Changes in Firm. (1) A prequalified firm shall notify the division of Program Performance of the following:

††††† (a) A major change either increasing or decreasing the firm's professional or financial qualifications, capabilities, or personnel; or

††††† (b) A change in:

††††† 1. The address of the firm;

††††† 2. The name of the firm;

††††† 3. The continuous professional liability policy on file with the division of Program Performance; or

††††† 4. Another of the major qualification criteria.

††††† (2) The user division or office shall review the updated information received from the firm and shall reclassify the firm as appropriate with respect to types of work and capacity of the firm.

††††† (3)(a) If a prequalified firm fails to notify the division of Program Performance of a change of the address, it may be removed from the list of prequalified firms until it notifies the division of its new address.

††††† (b) If the change of address notification is submitted to the division of Professional Services prior to the firm's annual prequalification date and no other changes have occurred in the firm, the firm shall be restored to the list of prequalified firms.

††††† (c) Removal from the list of prequalified firms pursuant to this subsection shall not be a basis for appeal under the provisions of Section 6 of this administrative regulation.

 

††††† Section 5. Removal from List of Prequalified Firms. (1) A firm may be removed from the list of prequalified firms by the Consultant Prequalification Committee for any of the following reasons:

††††† (a) Failure to submit an annual application on the firm's anniversary date;

††††† (b) Falsification of the firm's prequalification application as to its qualifications;

††††† (c) Falsification of the firm's response to announcement of any project;

††††† (d) Violation of the Executive Branch Ethics Law contained in KRS Chapter 11A;

††††† (e) Falsification of the information provided to the Transportation Cabinet for audit purposes;

††††† (f) Failure to have a current license from the Kentucky State Board of Licensure for Professional Engineers and Land Surveyors;

††††† (g) Failure to notify the Transportation Cabinet of the loss of personnel which has an impact on the firm's prequalification or project management within thirty (30) days;

††††† (h) Violation of the firm's certification that the firm's owner, principals or partners, or any family member having an interest of ten (10) percent or more in any business entity involved in the performance of the contract have not contributed more than the amount specified in KRS 121.056(2) to the gubernatorial campaign of the current governor;

††††† (i) Failure to maintain with the division of Program Performance a current certificate of a continuous professional liability policy in an amount not less than $1,000,000;

††††† (j) Failure to annually submit an up-to-date overhead submission packet to the division of Audits;

††††† (k) Failure to perform on a project in a manner acceptable to the Transportation Cabinet; or

††††† (l) Failure to provide access to the information required by 600 KAR 6:080.

††††† (2) The Chairperson of the Prequalification Committee shall notify the firm in writing of its proposed removal from the list of prequalified firms, the reason for the proposed removal and the appeals procedure established in Section 6 of this administrative regulation.

 

††††† Section 6. Appeal Procedure for Firms Not Prequalified or Removed from Prequalified List. (1) The cabinet shall establish a permanent Consultant Prequalification Committee to evaluate the statements of qualifications of firms which appeal a disapproval rating or removal from the list of prequalified firms.

††††† (2) The members of the Consultant Prequalification Committee shall be the following, or the member's designee:

††††† (a) Director, division of Program Performance, Chairperson;

††††† (b) Director, division of Traffic Operations;

††††† (c) Director, division of Highway Design;

††††† (d) Director, division of Structural Design;

††††† (e) Director, division of Materials;

††††† (f) Director, division of Planning;

††††† (g) Director, division of Environmental Analysis;

††††† (h) Director, division of Maintenance; and

††††† (i) Director, division of Construction.

††††† (3) A firm may appeal a disapproval relating to its request for approval of a prequalification category pursuant to Section 2 of this administrative regulation.

††††† (4) A firm may appeal its removal from the list of prequalified firms pursuant to Section 5 of this administrative regulation.

††††† (5) An appeal pursuant to this section of this administrative regulation shall be made in writing to the Chairperson of the Consultant Prequalification Committee within thirty (30) days of notification of the action of the Transportation Cabinet.

††††† (6) The basis of the appeal and the relief sought shall be stated in the written communication to the chairperson.

††††† (7)(a) Within sixty (60) days from receipt of an appeal, the committee members or their designees shall review the appeal and shall make a decision regarding the appeal.

††††† (b) If the firm agrees, the committee may delay its decision for an additional sixty (60) days while the committee meets with the firm to discuss the appeal.

††††† (8) The committee shall notify the State Highway Engineer and the firm of its decision.

††††† (9) If the firm's appeal is denied by the committee, the firm may appeal the decision within thirty (30) days of written notice:

††††† (a) Relating to nonqualification to the State Highway Engineer; or

††††† (b) Relating to removal from the list of prequalified firms to the Secretary of the Transportation Cabinet.

††††† (10) The State Highway Engineer or Transportation Cabinet Secretary, as appropriate, shall notify the firm of his decision within thirty (30) days. The decision of the State Highway Engineer or Transportation Cabinet Secretary shall be final.

 

††††† Section 7. Conditional Prequalification. (1) The user division or office or Consultant Prequalification Committee may grant conditional prequalification to a firm if the firm:

††††† (a) Has no direct highway or transportation experience but has identified personnel who have technical training or education and other types of experience which may allow the firm to perform the required services; or

††††† (b) Performed poorly on past projects for the cabinet or has been removed from the list of prequalified firms for performance-related reasons and has restructured itself to address the problems.

††††† (2) After the firm has performed services for the cabinet in the category of work for which it was conditionally prequalified, it may request a prequalification determination from the committee in accordance with Section 1 of this administrative regulation.

††††† (3) Denial of conditional prequalification of a firm to perform services for the cabinet shall not be appealed.

 

††††† Section 8. Incorporation by Reference. (1) The following material is incorporated by reference:

††††† (a) Consulting Engineer and Related Services Prequalification Application, TC 40-1E, April 2006, edition;

††††† (b) Prequalification Requirements for Geotechnical Drilling Services, TC 64-540, May 2005 edition;

††††† (c) Prequalification Requirements for Geotechnical Engineering Services, TC 64-541, May 2005 edition;

††††† (d) Prequalification Requirements for Geotechnical Laboratory Services, TC 64-542, May 2005;

††††† (e) Appendix to the Consulting Engineer and Related Services Prequalification Application, June 2004 edition; and

††††† (f) Application for Prequalification for Professional Engineering or Related Services, TC 40-1e, Rev. 4/06.

††††††††††††††† (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the division of Program Performance, Transportation Cabinet Office Building, 200 Mero Street, Frankfort, Kentucky 40622, Monday through Friday, 8 a.m. to 4:30 p.m. (22 Ky.R. 1407; Am. 1626; 1840; eff. 4-5-96; 24 Ky.R. 1375; 1691; eff. 2-19-98; 29 Ky.R. 1876; 2672; eff. 5-15-03; 33 Ky.R. 544; 1309; eff. 11-9-06.)