Prequalification

General
The LG may include provisions for prequalification in invitations for receipt of bids. The American Association of State Highway and Transportation Officials (AASHTO) defines prequalification as a means of predetermining job experience and work capacity and to identify individuals and organizations from whom the agency may accept a bid. AASHTO has also encouraged the use of prequalification procedures in its 1981
Suggested Guidelines for Strengthening Bidding and Contract Procedures
. The process used for prequalification is described in the
LGPM Guide
.
Although the LG may have a compelling reason (e.g., state or local law) to utilize a procedure differing from acceptable federal-aid practice, the procedure may not be applied to a federal-aid project.
23 CFR §635.112(d)
specifically requires the LG to inform bidders of contract provisions not applying to federal-aid projects. This information must be included in the advertisement, specifications, special provisions or other governing documents as appropriate.
Federal Requirements
  1. 23 CFR §635.110
    – Contains the following provisions for design-bid-build projects.
    1. Cannot include any procedure or requirement that may operate to restrict competition or provide in-state preference.
    2. Cannot require a contractor to be licensed before submitting a bid or before consideration of a bid. However, an entity may require the bidder to have various technical licenses (master electrician, etc.) if the requirement is consistent with competitive bidding practices, i.e. it is applied uniformly to all contractors.
  2. 23 CFR §635.110(f)(1)
    – Contains the following provisions for design-build projects.
    1. Geographic location of a firm’s office may not be part of the selection criteria.
    2. Can require the successful design bidder to establish a local office after the award of contract.
State Requirements
  1. 43 TAC §9.12
    – Requires potential bidders to be prequalified by TxDOT as a condition of submitting a bid. Includes waiver provisions for small projects, maintenance projects and specialty projects.
  2. Texas Government Code §2269.357
    – Requires the LG to solicit qualifications outlined in this section for design build projects.
Required Practices
In general, the LG must require bidders to be prequalified by TxDOT on all projects on the state highway system. The
LGPM Guide
describes the required practices and includes the types of projects requiring prequalification.