POLICY: Construction contracts must be awarded to the lowest responsible, responsive bidder after advertisement and solicitation of competitive bids. NCDOT must concur with the award of a construction contract by the Local Government Agency (LGA).
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LGAs are responsible for Advertising the contract for proposed Construction services and entering a contract with the lowest bidder. Federal, State, and Local policy and procedures may all apply when the LGA is letting a contract with federal funds.
All procurement is governed by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200); however, transportation projects within the highway right of way (ROW) must be procured in accordance with Federal Highway Administration (FHWA) regulations for Construction and Maintenance (23 CFR 635).
NCDOT's own procurement process for construction contracts meets FHWA requirements for competitive bidding. In addition, because most federal funds, including Surface Transportation Block Grant (STBG), Transportation Alternatives Program (TAP), and Carbon Reduction Program (CRP) have a requirement to treat projects as though they are located within the highway ROW, even if they are not, NCDOT requires all local-let construction projects to comply with NCDOT's procedures for procurement. Modifications may be made by the LGA to comply with state general statutes for procurement of construction projects (NCGS 143 Article 8 – Public Contracts).
