§ 13-106. Execution of contract.
A. Within the period of time, not to exceed sixty (60) days, specified in the bid notice by the Procurement Officer, a contract embodying the terms set forth in the bidding documents shall be executed by the Chief Executive Officer (CEO) and the successful bidder. No bidder shall obtain any property right in any awarded contract.
B. Within the period of time specified in subsection (A) of this section, the following shall be provided by the contractor to the Procurement Officer for contracts exceeding Two-hundred Fifty Thousand Dollars ($250,000.00):
1. A payment and performance bond in a sum equal to the contract price, with adequate surety, or an irrevocable letter of credit issued by a financial institution insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation for the benefit of the Osage Casinos, on behalf of the bidder, in a sum equal to the contract price, to ensure the proper and prompt completion of the work in accordance with the provisions of the contract and bidding documents;
2. A bond in a sum equal to the contract price or an irrevocable letter of credit issued by a financial institution insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation for the benefit of the Osage Casinos on behalf of the bidder, in a sum equal to the contract price, to protect the Osage Nation and Osage Casinos against defective workmanship and materials for a period of one year after acceptance of the project; and
3. Public liability and workers’ compensation insurance during construction in reasonable amounts. A Procurement Officer may require the contractor to name the Osage Casinos and its architects or engineers, or both, as an additional assured under the public liability insurance, which requirement, if made, shall be specifically set forth in the bidding documents.
C. A single irrevocable letter of credit may be used to satisfy subsections (B)(1) through (B)(3) of this section, provided such single irrevocable letter of credit meets all applicable requirements of subsection (B) of this section. If the contractor needs additional time in which to obtain the bond required pursuant to subsection (B) of this section, the contractor may request and the agency may allow the contractor an additional sixty (60) days in which to obtain the bond.
D. After the award of a contract, but prior to its execution, a Procurement Officer, upon discovery of an administrative error in the award process that would void an otherwise valid award, may suspend the time of the execution of the contract. The Facilities Director may rescind the award and readvertise for bids, or may direct correction of the error and award the contract to the lowest responsible bidder, whichever shall be in the best interests of the Osage Casinos.
E. If the Procurement Officer determines that an error has been made in the award process he/she shall document the error in the procurement file. The Procurement Officer, upon presentation of the facts of the error, may rescind the award and readvertise for bids, or may direct correction of the error and award the contract to the lowest responsible bidder, whichever shall be in the best interests of the Osage Casinos.
F. No Procurement Officer shall require for any construction project, nor shall any general contractor submit a project bid based on acquiring or participating in, any wrap-up, wrap-around, or controlled insurance program. For the purposes of this subsection, “wrap-up, wrap-around, or controlled insurance program” means any insurance program that has the effect of disabling or rendering inapplicable any workers’ compensation, commercial general liability, builders’ risk, completed operations, or excess liability insurance coverage carried by a subcontractor that is engaged or to be engaged on a construction project.
G. The Procurement Officer is authorized to require the contractor to carry builder’s risk insurance against damage from fire and the elements during the process of construction to the extent of protecting the Osage Casinos equity in said project until accepted by the Osage Casinos. ONCA 19-36, eff. Apr. 25, 2019.