Contracting Procurement Practices - Defining Documentation Process

1. Contracting & Procurement Practices - Defining Documentation & Process Presented by Douglas I. Evanchuk McLennan Ross April 12, 2007

2. OVERVIEW What is Contracting and Procurement? Process Documentation Next Steps Transfer of Ownership

3. What is Contracting & Procurement? Community Infrastructure Focus Procurement Policies Contracting and Development Strategies Administrative Capacity

4. What is Contracting & Procurement? Procurement Policies By Bylaw or Administrative Policies Requirements for Tenders Direct Negotiation Flexibility Update for Scale & Scope of New Deal?

5. What is Contracting & Procurement? Contracting and Development Strategies Tendering Approaches (Fixed v. Unit Prices) Financing Issues Risk Management Use of P3s for Construction and O & M

6. What is Contracting & Procurement? Financing Issues Matching Capital Funding from MACA to Contractual Commitments Dealing with Cost Overruns Bonding & Security

7. What is Contracting & Procurement? Risk Management Warranty Periods and Provisions Bonding and Security Holdbacks Third Party Liability Risk (Indemnities, Insurance Requirements)

8. What is Contracting & Procurement? Administrative Capacity Procurement Contract Administration Engineering and Construction

9. Process Develop Tender or RFP Solicit Bids Bid Evaluation Contract Award Implementation

10. Process Tender and RFP Process � Solicit Bids Create Standard Forms and Use Them Tenders Contract A (the tendering contract) Contract B (the construction contract) RFPs Non Binding Future Negotiations

11. Process Tender Bid Evaluation � Contract A Evaluate Fairly & Equally No Secret Criteria or Preferences Not Accept a Non-Compliant Bid Obligations Owed by the Owner to All Bidders Highly Litigious

12. Process Tender Bid Evaluation � Contract A Owner Does Not Accept Proper Tender �Discretion� Clauses �Privilege� Clauses

13. Process Contract Award and Implementation Notice of Award Execution of Contract Placement of Security Mobilization Contractor Refuses to Sign Contract B

14. Documentation Tenders � Contract A Construction Agreements � Contract B RFP Documents

15. Documentation Tender Document � Key Clauses Project Description & Specifications Price Basis Addenda Security for Bid Deadline for Submission Qualification/Evaluation Criteria

16. Documentation Construction Contract � Key Clauses Scope of Work Contractor Obligations Owner Obligations Specifications Payment Terms Warranties Performance Security Termination Rights Indemnities

17. Next Steps Review Procurement Policies Review/Develop Tender & RFP Documents Review/Develop Construction Agreements Build Capacity

18. Transfer of Ownership MACA will Assist in the Process Bylaws for Land Ownership Third Party Land Agreements Environmental Review Risk Management Reviews