DEPARTMENT OF TRANSPORTATION
[Filed November 9, 1998, 8:25 a.m.]
Preproposal statement of inquiry was filed as WSR 98-17-036.
Title of Rule: Chapter 468-310 WAC, Prequalification of ferry system contractors.
Purpose: The purpose of these amendments is to allow contractors who bid on ferry terminals, other marine facilities, and highway construction projects to be prequalified under one rule, chapter 468-16 WAC. Other minor revisions were made to clarify procedures for determining qualifications of contractors for performing marine vessel construction contracts.
Statutory Authority for Adoption: RCW 47.60.680, 47.60.690.
Statute Being Implemented: RCW 47.60.680, 47.60.690.
Summary: These changes establish procedures for determining the qualifications of contractors for the performance of marine construction projects and allows the use of work class ratings established for contractors that is prequalified under chapter 468-16 WAC.
Reasons Supporting Proposal: To implement statutory provisions for implementing the qualification process.
Name of Agency Personnel Responsible for Drafting: Ken Walker, 1D21 Transportation Building, (360) 705-7017; Implementation and Enforcement: Paul L. Green, Colman Dock/Pier 52, (206) 515-3401.
Name of Proponent: Washington State Department of Transportation, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The proposed changes makes minor revisions to allow contractors who bid on ferry terminals, other marine facilities, and highway construction projects to be prequalified under one rule, chapter 468-16 WAC. Other minor revisions were also made to clarify procedures for determining qualifications of contractors for performing marine vessel construction contracts.
Proposal Changes the Following Existing Rules: The rule codifies existing and new procedures for prequalification and the issuance of bid proposal documents to qualified contractors. It deletes the requirement for the contractor to submit, for each contract they intend to submit a bid, a certificate of their current capacity which will be accompanied and supported by a status of contracts on hand report. It also deletes classes 6 through 10 to allow the use of work class ratings established for contractors that is prequalified under chapter 468-16 WAC which implements RCW 47.28.070.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required. The cost of prequalification under the proposed rules would impose no greater cost than would occur in compliance with our current prequalification process.
RCW 34.05.328 does not apply to this rule adoption.
Hearing Location: Commission Boardroom 1D2, Transportation Building, 310 Maple Park Avenue S.E., Olympia, WA 98504-7360, on January 8, 1999, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact TDD (360) 705-6980, by January 6, 1999.
Submit Written Comments to: Ken Walker, Manager, Preconstruction Office, P.O. Box 47360, Olympia, WA 98504-7360, fax (360) 705-6810, by January 6, 1999.
Date of Intended Adoption: January 8, 1999.
November 4, 1998
Gerald E. Smith
Deputy Secretary, Operations
AMENDATORY SECTION (Amending Order 84, filed 9/12/83)
WAC 468-310-010 General requirements. Contractors desiring
to offer bids for the performance of contracts for the
construction, improvement or repair of a ferry((
, ferry terminal,
or other facility)) operated by the Washington state ferries or
for the repair, overhaul, or the dry-docking of any ferry
operated by Washington state ferries must first be prequalified
by the Washington state department of transportation (hereinafter
"department") and shall file a standard prequalification
questionnaire and financial statement (hereinafter
"prequalification questionnaire") using forms furnished by the
department. Contractors desiring to offer bids for the
performance of contracts for the construction, improvement, or
repair of ferry terminal facilities shall submit for
consideration a prequalification questionnaire (DOT form 420-010)
in accordance with chapter 468-16 WAC. The prequalification
questionnaire shall include a report of the financial ability of
the contractor, its organization, key personnel, equipment and
plant facilities, and experience. Complete answers to all
questions and the furnishing of all information as indicated by
column headings or otherwise throughout the prequalification
questionnaire are an essential part of compliance with these
rules. A prequalification questionnaire from a contractor not
previously prequalified under these rules, who desires to bid on
a project must be received no later than 15 calendar days prior
to the bid opening (or such other time as the department may
specify with respect to any project) in order to receive
consideration for that bid opening. The contractor shall
authorize the department to obtain all information which it may
deem pertinent with respect to the contractor's financial worth,
assets and liabilities, and the adequacy of its performance of
contracts performed by the contractor in whole or in part within
the preceding three years. The department shall issue a
certificate of prequalification to any contractor found to
possess the qualifications prescribed.
Prequalification may be established in any calendar quarter
and is renewable annually. ((
The)) Information submitted in the
prequalification questionnaire will be used to establish the
(( first)) initial prequalification, classification and maximum
capacity ratings of the contractor for its current fiscal year or
remaining portion thereof plus one additional calendar quarter.
(( Thereafter)) Prequalification will be renewed (( and when
appropriate, modified in the first quarter of the contractor's
fiscal year for the balance of the fiscal year plus one calendar
quarter)) annually thereafter or at other times as designated by
The department shall not make available for public inspection and copying financial information supplied by or on behalf of the contractor for the purpose of qualifying to submit a bid or proposal as provided herein. The foregoing restriction shall not, however, prohibit the department from giving such information in evidence or in pretrial discovery in any court action or administrative hearing involving the department and the contractor.
The department may at any time during which the certificate
of prequalification is in effect demand a new prequalification
questionnaire and if the same is not provided within sixty days
of the date of request, the certificate of prequalification held
by the contractor will be considered forfeited and the contractor
will not be permitted to bid on contracts let by the department
for those classes of ferry system construction or repair
enumerated in ((
subsection (8) of section 5)) WAC 468-310-050(6)
until (( such)) a new statement has been received by the
If at any time during the valid period of the certificate of
prequalification the latest prequalification questionnaire on
record with the department ceases to represent fairly and
substantially the financial position or the equipment and plant
facilities of the contractor to whom the certificate was issued,
it shall be the responsibility of that contractor to so notify
the department and to refrain from further bidding on ferry
system construction or repair contracts until ((
prequalification has been confirmed or revised. Failure to give
such notice will constitute a violation of these rules.
Qualified contractors shall be notified of impending expiration of their qualification and will be provided the necessary questionnaire forms for renewal at least forty-five days before the expiration date.
The department reserves the right to require a personal
interview with any contractor when considering ((
[Statutory Authority: 1983 c 133. 83-19-014 (Order 84), § 468-310-010, filed 9/12/83.]
AMENDATORY SECTION (Amending Order 114, filed 9/14/88)
WAC 468-310-020 Contents of standard prequalification
questionnaire and financial statement. The standard
prequalification questionnaire and financial statement shall be
prepared in duplicate. The original shall be)) transmitted to
the (( assistant secretary for marine transportation and a copy
shall be retained by the contractor applicant)) director of
Washington state ferries. The contractor shall provide the
(1) The name, address, phone number, contractor registration number and type of organization (corporation, copartnership, individual, etc.) of the contractor seeking prequalification.
(2) The contract size in dollars and the class or classes of
work for which the contractor seeks prequalification (such as
vessel dry-docking and hull repairs, vessel electrical repairs,
etc.) as enumerated in ((
subsection (8) of)) WAC 468-310-050(6).
(3) Ownership of the contractor and if a corporation, the name of the parent corporation (if any) and any affiliated companies or subsidiaries.
(4) An accurate and complete record of the ((
largest contracts in excess of (( $10,000)) ten thousand dollars
performed by the contractor in whole or in part within the
preceding three years both in Washington and elsewhere, including
subcontracts, giving the contract amount, the date completed, the
class of work, the name, address and phone number of the
owner/agency representative, and any liquidated damages assessed
against the contractor by an owner arising out of the performance
of the contract.
(5) The principal officers and key employees showing the
number of years each engaged in the class or classes of work for
which the contractor seeks prequalification. The department may
require resumes of ((
the principal officers and key employees of
any contractor seeking prequalification certification for work in
excess of $1,000,000)) such personnel as deemed proper for making
(6) A contractor requesting prequalification certification
to perform work in excess of ((
$10,000,000)) ten million dollars
shall submit copies of its audited annual statements for the
previous three years as audited by an independent certified
public accountant which shall include comparative balance sheets
and income statements, a statement of retained earnings,
supporting schedules and notes attached thereto, and the opinion
of the independent auditor. The financial statement shall not be
more than (( 12)) twelve months old when submitted. Any wholly
owned subsidiary corporation may file the latest consolidated
financial statement of its parent corporation in lieu of a
financial statement prepared solely for such subsidiary providing
the financial statement otherwise meets the requirements of the
preceding two sentences. If a consolidated financial statement
is filed on behalf of a subsidiary corporation, a bid of the
subsidiary corporation will be considered only if there is on
file with the department a letter from the parent corporation
guaranteeing performance by the subsidiary corporation of its
contract with the department of transportation in an amount at
least equal to the amount of the bid. A letter of guarantee by a
parent corporation may cover a specific contract bid by its
subsidiary or all contracts bid by its subsidiary within a stated
period of time.
(7) A list of all major items of equipment to be used in those classes of work for which prequalification certification is requested including the original cost, age, location and condition of such equipment. The schedule shall show whether the equipment is owned, leased or rented. All major items of useful equipment should be listed even though fully depreciated but no obsolete or useless equipment should be included. In the event the contractor seeks prequalification certification to perform work on ferry vessels, the schedule shall also describe plant facilities of the contractor including shipyards, dry docks, repair facilities and other plant facilities.
(8) Such other information as may be required by the prequalification questionnaire.
[Statutory Authority: RCW 47.60.680. 88-19-040 (Order 114), § 468-310-020, filed 9/14/88. Statutory Authority: 1983 c 133. 83-19-014 (Order 84), § 468-310-020, filed 9/12/83.]
AMENDATORY SECTION (Amending Order 114, filed 9/14/88)
WAC 468-310-050 Classification and capacity rating. (1) Each contractor seeking prequalification under these rules will be classified for one or more of the classes of work listed in subsection 8 of this section and will be given a maximum capacity rating in accordance with its financial ability, the adequacy of its equipment and plant facilities to perform the class or classes of work for which it has sought prequalification, the extent of the contractor's experience in performing contracts of the class or classes for which prequalification is sought, and the adequacy of the experience and capability of the contractor's officers and key employees in performing contracts of the class or classes for which prequalification is sought. The maximum capacity rating will limit the quantity of uncompleted work which the contractor shall have under contract at any one time either as a prime contractor or a subcontractor.
(2) The maximum capacity rating for a contractor applying
for a rating in excess of ((
$50,000)) fifty thousand dollars will
be ten times the contractor's net worth as set forth in the
standard prequalification questionnaire and financial statement.
A properly executed letter of credit from an acceptable financial
institution may be considered as an asset increasing the
contractor's maximum capacity rating by the amount of the credit,
but without the use of a multiplier. The maximum capacity rating
for a contractor not submitting an audited financial statement as
provided in (( subsection (6) of)) WAC 468-310-020(6) will be
(( $10,000,000)) ten million dollars: Provided, That in all cases
the contractor's maximum capacity rating may be reduced to an
amount considered by the department to be within the contractor's
actual capacity based upon its organization, personnel, equipment
and plant, and experience.
(3) Consideration will be given to raising, by an amount not
to exceed 50 percent, the maximum capacity rating of a contractor
who qualifies with respect to actual capacity based upon
organization, personnel, equipment and plant facilities, and
experience, upon receipt of evidence of a current bonding
capacity of such additional amount with a corporate surety. Such
evidence shall be in the form of a letter of commitment executed
by an officer of the surety who is authorized to bind the surety.
Notwithstanding the provisions of this subsection, the maximum
capacity rating for a contractor not submitting an audited
financial statement as provided in ((
subsection (6) of)) WAC 468-310-020(6) will be (( $10,000,000)) ten million dollars.
(4) The certificate of prequalification issued by the
department will establish a contractor's maximum capacity rating
which will be subject to reduction by the total value of its
current uncompleted work regardless of its location and with whom
it may be contracted to determine the contractor's bidding
capacity at the particular time. ((
This bidding capacity shall
be called "current capacity."))
In determining the current capacity of a contractor,
the deduction for uncompleted work will include work
subcontracted from others and the contractor will be given a
credit for work sublet to others. (6) In order that the department may have the necessary
information to determine a contractor's current capacity, the
contractor shall submit to the department for each contract for
which it intends to submit a bid (at the time it requests a bid
or proposal form) a certificate of the contractor's current
capacity which will be prepared by it and executed under oath and
which will be accompanied and supported by a status of contracts
on hand report. In making this certification, the contractor
certifies that its current capacity is sufficient to cover the
amount of any single contract for which it has submitted a bid. (7))) Notwithstanding the provisions of this section, a
contractor will be allowed to submit a bid for an amount up to
$50,000 on a class or classes of work for which it is
prequalified without regard to any financial maximum capacity
rating or financial current capacity rating: Provided, That the
contractor's current capacity may be reduced to an amount
considered by the department to be within the contractor's actual
capacity based upon its organization, personnel, equipment and
plant facilities, and experience.
(8))) (6)(a) Construction, repair and maintenance work on
ferry vessels (( and main ferry terminal buildings)) for which
prequalification certification under these rules may be granted
are classified as follows:
1)) 81 Vessel construction and renovation;
2)) 82 Dry-docking and hull repairs;
3)) 83 Vessel metal fabrication repairs;
4)) 84 Vessel electrical repairs;
5)) 85 Vessel miscellaneous repairs;
Class 6 New terminal building construction
and terminal building major
reconstruction and remodeling; Class 7 Terminal building renovation and
repairs; Class 8 Painting (terminals only); Class 9 Roofing (terminal buildings only); Class 10 Terminal structures -
miscellaneous, including pile
(b) A contractor currently prequalified under RCW 47.28.070
to perform those classes of work required in the construction,
improvement and repair of ferry terminal facilities ((
main terminal buildings))) will initially be deemed prequalified
under these rules to perform such classes of work with the same
capacity rating as approved by the department for highway related
[Statutory Authority: RCW 47.60.680. 88-19-040 (Order 114), § 468-310-050, filed 9/14/88. Statutory Authority: 1983 c 133. 83-19-014 (Order 84), § 468-310-050, filed 9/12/83.]
AMENDATORY SECTION (Amending Order 84, filed 9/12/83)
WAC 468-310-060 Review of restrictions in prequalification
certificate. Any contractor dissatisfied with restrictions on
the dollar amount or class of work approved in its
prequalification certificate may ((
file a complaint)) request in
writing, a review of their questionnaire and qualification rating
with the (( assistant secretary for marine transportation))
director of Washington state ferries together with supporting
documentation. The request must be filed within thirty calendar
days of the date of receipt of the notice of qualification and
must specifically state the basis for the request. The
(( assistant secretary)) director or (( his)) designee shall
(( review any such complaint and any data furnished by the
contractor and may affirm or modify such restrictions in the
prequalification certificate)) advise the applicant of his or her
decision of the reconsideration within thirty calendar days of
receipt of the request.
[Statutory Authority: 1983 c 133. 83-19-014 (Order 84), § 468-310-060, filed 9/12/83.]
AMENDATORY SECTION (Amending Order 84, filed 9/12/83)
WAC 468-310-100 Delegation of authority. The ((
secretary for marine transportation)) director of Washington
state ferries is delegated authority to administer the provisions
of chapter 133, Laws of 1981 and chapter 468-310 WAC. The
(( assistant secretary for marine transportation)) director of
Washington state ferries is delegated authority to exercise all
powers vested in the secretary of transportation by WAC 468-10-234 relating to the adoption of a final order granting, denying
or revoking a prequalification certificate pursuant to chapter
133, Laws of 1983. The (( assistant secretary for marine
transportation)) director of Washington state ferries may further
subdelegate authority to exercise all powers vested in the
secretary of transportation by WAC 468-10-234. A person to whom
such authority is subdelegated shall be deemed to be the designee
of the secretary of transportation as that term is used in WAC
[Statutory Authority: 1983 c 133. 83-19-014 (Order 84), § 468-310-100, filed 9/12/83.]