Section 153.27. Procurement.

 

(1)   Profits . Contractors for contracts under grants described in this chapter may earn only fair and reasonable profits. Profits included in a formally advertised, competitively bid, fixed price construction contract are presumed to be reasonable.

(2)   Responsibility. The governmental unit shall administer and successfully complete activities for which grant assistance under this chapter is awarded in accordance with sound business judgment and good administrative practice under state and local laws.

(3)   General requirements for contracts. Contracts shall be all of the following:

(a) Necessary for and directly related to the accomplishment of activities necessary for the activity listed on the grant or grant amendment.

(b) In the form of a bilaterally executed written agreement for any professional services or construction activities.

(c) For monetary or in-kind consideration.

(4)   Force account work.

(a) A governmental unit shall secure prior written approval from the department for use of the force account method in lieu of contracts for any professional services or construction activities.

(b) The department shall approve the use of force account work if the governmental unit demonstrates to the department's satisfaction that the governmental unit has the necessary competence required to accomplish the work and that the work can be accomplished more economically by the use of the force account method.

(c) The force account reimbursement for design and construction services shall be based on the actual cost of services provided and may not exceed 5 percent of the total project reimbursement when bond-sourced funds are used.

CR 00-025 : cr. Register September 2002 No. 561 , eff. 10-1-02; CR 09-112 : am. (3) (b), (4) (a), cr. (4) (c), r. (5) Register December 2010 No. 660 , eff. 1-1-11.