State Contracts

Chapter 5. State Contracts

I: General Provisions
II : Bidding

III : Miscellaneous Provisions

Subchapter I: General Provisions

§501. Short title.

§502. Definitions.

§501. Short title.

This chapter is known and may be cited as the "State Contracts Act".

Source: YSL 1-215 §1, modified.

§502. Definitions.

(a) "Citizen bidder" means:

(1) Until the termination of the Trusteeship, any business in which at least fifty-one percent (51%) of the interest therein is owned by a citizen or citizens of the Trust Territory of the Pacific Islands; and

(2) Upon termination of the Trusteeship, any business in which at least fifty-one percent (51%) of the interest therein is owned by a citizen or citizens of the Federated States of Micronesia.

(b) "Contracting officer" means the official in charge of letting a contract for a State Government agency.

(c) "Lowest responsible bidder" means the lowest bidder whose offer adequately responds in quality, fitness, and capacity to the particular requirements of the proposed work called for by the contract.

(d) "Presently residing in the State of Yap" means a Yapese by birth or a person or persons who have resided in the State of Yap for at least two years immediately prior to the submission of the contractor's bid.

(e) "State Government agency" means any branch, department, office, division, board, commission, committee, or authority of the Government of the State of Yap.

Source: YSL 1-215 §2, definitions put into alphabetical order and section modified.

Subchapter II: Bidding

§521. Contracts; competitive bidding required.

§522. Citizen bidder preference.

§523. Emergencies.

§524. Qualifications of bidders.

§525. Advertisement for bids.

§526. Bids; opening, rejection.

§527. Bids; information.

§528. Written contract awarded to lowest responsible bidder.

§529. Effect of restraint of competition.

§530. Effect of advance disclosure of terms of bid.

§521. Contracts; competitive bidding required.

Except as otherwise provided by law, all contracts for construction projects involving $10,000.00 or more or for the purchase of personal property involving $5,000.00 or more made on behalf of any State Government agency shall be let by free and open competitive bidding, by sealed bids, to the lowest responsible bidder in accordance with the provisions of this chapter.

Source: YSL 1-215 §3, modified.

§522. Citizen bidder preference.

(a) Citizen bidders who qualify to bid under the provisions of this chapter shall receive preference over noncitizen bidders in determining the award of the contract, provided, however, that the amount of the bid of a noncitizen bidder is not lower than the bid of the citizen bidder by at least ten percent (10%).

(b) In order for a bidder to be eligible to be considered for the citizen bidder preference, the following criteria shall be satisfied:

(1) The bidder shall include in his bid a notice that he is submitting his bid as a citizen bidder;

(2) The bidder is a resident of the State of Yap or at least five years prior to the submission of his bid;

(3) At least a substantial percentage of the labor force are Federated States of Micronesia citizens and presently residing in the State of Yap; and

(4) The bidder, be it a corporation, joint venture, or partnership, shall be at least fifty-one percent (51%) owned by a citizen or citizens of the Trust Territory of the Pacific Islands, if the bid is submitted prior to the termination of the Trusteeship Agreement, or at least fifty-one percent (51%) owned by a citizen or citizens of the Federated States of Micronesia, if the bid is submitted upon termination of the Trusteeship Agreement.

Source: YSL 1-215 §4, modified.

§523. Emergencies.

In case of emergency affecting public health, safety, or convenience so declared in writing by the Governor upon application by the head of any State Government agency setting forth the nature of the emergency and the danger to the public health, safety, or convenience caused by delay, contracts may be let to the extent necessary to meet the emergency without public advertisement. Such action and the reasons therefor shall immediately be made public by the awarding authority.

Source: YSL 1-215 §5.

§524. Qualifications of bidders.

Before any prospective bidder may be entitled to submit a bid for the performance of a contract covered by section 521 of this chapter, he shall, not less than ten calendar days prior to the date designated for opening bids, give written notice to the contracting officer of his intention to bid, and such officer shall satisfy himself of the prospective bidder's financial ability to perform the work intended and of his experience and competence in performing similar work. Whenever it appears to the contracting officer that the prospective bidder is not fully qualified and able to perform the intended work, the contracting officer shall refuse to receive or consider any bid offered by the prospective bidder. Upon being determined not to be fully qualified, a prospective bidder may appeal this determination within ten days after notice of disqualification in accordance with the State Administrative Procedure Act, Yap State Law No. 1-90.

Source: YSL 1-215 §6, modified.

Cross-reference: Section 521 of this subchapter is on contracts and the requirement of competitive bidding. The statutory provisions of the State Administrative Procedure Act, YSL 1-90, are found in chapter 1 of Title 10 (Administrative Law) of this Code.

§525. Advertisement for bids.

Publication of a call for sealed bids shall include posting of notice for at least ten days in the immigration office and in one other prominent public place in the State, the use of radio and newspaper media when considered appropriate by the contracting officer, and any other means he may consider feasible. The notice shall state in clear terms the project that is to be bid on.

Source: YSL 1-215 §7.

§526. Bids; opening, rejection.

The time of opening sealed bids shall not be less than 30 days after the final publication. All bids shall be sealed and delivered to the contracting officer and, in the presence of all bidders who attend, shall be opened by him at the hour and place as stated in the advertisement and may be inspected by any bidder. Any bid which does not comply with the requirements of the advertisement or other provisions of this chapter shall be rejected. If two or more bids are the same and the lowest, the contracting officer may accept the one he chooses, except that the bid of a noncitizen bidder shall be considered in the selection and determination of the lowest responsible bidder only if the amount of the bid of the noncitizen bidder is at least ten percent (10%) lower than the amount of the bid of the lowest citizen bidder. If no bids are received, the contracting officer may have the project done without further compliance with this chapter.

Source: YSL 1-215 §8, modified.

§527. Bids; information.

All bids on construction project contracts shall include the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor in the performance of the construction project contract, the nature and scope of the work to be performed by such joint contract or subcontractor, and any other relevant information the contracting officer may require.

Source: YSL 1-215 §9, modified.

§528. Written contract awarded to lowest responsible bidder.

All contracts shall be in writing and shall be executed by the State Government agency which is authorized to let contracts in its own name and shall be made with the lowest responsible bidder. If the lowest bid is rejected, the contracting officer may, at his discretion, award the contract to the lowest remaining responsible bidder or advertise anew for bids pursuant to section 525 of this subchapter. In each instance the officer, at his discretion, after determining the lowest responsible bidder, may negotiate with that bidder, and that bidder only, to reduce the scope of work and to award the contract at a price which reflects the reduction in the scope of work.

Source: YSL 1-215 §10, modified.

Cross-reference: Section 525 of this subchapter is on advertisement for bids.

§529. Effect of restraint of competition.

Any agreement or collusion among bidders or prospective bidders in restraint of freedom of competition by agreement to bid at a fixed price or to refrain from bidding shall render the bids of such bidders void. Each bidder shall accompany his bid with the sworn statement that he has not been a party to such an agreement.

Source: YSL 1-215 §11.

§530. Effect of advance disclosure of terms of bid.

Any disclosure in advance of the terms of bid submitted in response to an advertisement for bids shall render the proceedings void and require advertisement and award anew.

Source: YSL 1-215 §12.

Subchapter III: Miscellaneous Provisions

§561. Assignment of contracts.

§562. Termination of contract by contracting officer.

§563. Regulations.

§564. Severability.

§561. Assignment of contracts.

No contract awarded to the lowest responsible bidder shall be assigned by the successful bidder without written consent of the awarding authority.

Source: YSL 1-215 §13.

§562. Termination of contract by contracting officer.

The contracting officer for any contract executed in accordance with this chapter may terminate the contract at any time when, in the opinion of the contracting officer, the contractor has made unjustifiable and substantive changes from the terms and conditions specified in the contract. Upon termination, the contracting officer shall limit payment to the contractor to that part of the contract satisfactorily completed at the time of the termination.

Source: YSL 1-215 §14, modified.

§563. Regulations.

The Governor shall issue regulations to implement this chapter in accordance with the provisions of the State Administrative Procedure Act, Yap State Law No. 1-90. Such regulations shall have the force and effect of law.

Source: YSL 1-215 §15, modified.

Cross-reference: The statutory provisions of the State Administrative Procedure Act, YSL 1-90, are found in chapter 1 of Title 10 (Administrative Law) of this Code.

§564. Severability.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

Source: YSL 1-215 §16, modified.

	YSC, Title 9. Public Property, Purchasing & Contracts
	Chapter 5. State Contracts Subchapter: I: General Provisions II : Bidding III : Miscellaneous Provisions Subchapter I: General Provisions §501. Short title. §502. Definitions. §501. Short title. This chapter is known and may be cited as the "State Contracts Act". Source: YSL 1-215 §1, modified. §502. Definitions. (a) "Citizen bidder" means: (1) Until the termination of the Trusteeship, any business in which at least fifty-one percent (51%) of the interest therein is owned by a citizen or citizens of the Trust Territory of the Pacific Islands; and (2) Upon termination of the Trusteeship, any business in which at least fifty-one percent (51%) of the interest therein is owned by a citizen or citizens of the Federated States of Micronesia. (b) "Contracting officer" means the official in charge of letting a contract for a State Government agency. (c) "Lowest responsible bidder" means the lowest bidder whose offer adequately responds in quality, fitness, and capacity to the particular requirements of the proposed work called for by the contract. (d) "Presently residing in the State of Yap" means a Yapese by birth or a person or persons who have resided in the State of Yap for at least two years immediately prior to the submission of the contractor's bid. (e) "State Government agency" means any branch, department, office, division, board, commission, committee, or authority of the Government of the State of Yap. Source: YSL 1-215 §2, definitions put into alphabetical order and section modified. Subchapter II: Bidding §521. Contracts; competitive bidding required. §522. Citizen bidder preference. §523. Emergencies. §524. Qualifications of bidders. §525. Advertisement for bids. §526. Bids; opening, rejection. §527. Bids; information. §528. Written contract awarded to lowest responsible bidder. §529. Effect of restraint of competition. §530. Effect of advance disclosure of terms of bid. §521. Contracts; competitive bidding required. Except as otherwise provided by law, all contracts for construction projects involving $10,000.00 or more or for the purchase of personal property involving $5,000.00 or more made on behalf of any State Government agency shall be let by free and open competitive bidding, by sealed bids, to the lowest responsible bidder in accordance with the provisions of this chapter. Source: YSL 1-215 §3, modified. §522. Citizen bidder preference. (a) Citizen bidders who qualify to bid under the provisions of this chapter shall receive preference over noncitizen bidders in determining the award of the contract, provided, however, that the amount of the bid of a noncitizen bidder is not lower than the bid of the citizen bidder by at least ten percent (10%). (b) In order for a bidder to be eligible to be considered for the citizen bidder preference, the following criteria shall be satisfied: (1) The bidder shall include in his bid a notice that he is submitting his bid as a citizen bidder; (2) The bidder is a resident of the State of Yap or at least five years prior to the submission of his bid; (3) At least a substantial percentage of the labor force are Federated States of Micronesia citizens and presently residing in the State of Yap; and (4) The bidder, be it a corporation, joint venture, or partnership, shall be at least fifty-one percent (51%) owned by a citizen or citizens of the Trust Territory of the Pacific Islands, if the bid is submitted prior to the termination of the Trusteeship Agreement, or at least fifty-one percent (51%) owned by a citizen or citizens of the Federated States of Micronesia, if the bid is submitted upon termination of the Trusteeship Agreement. Source: YSL 1-215 §4, modified. §523. Emergencies. In case of emergency affecting public health, safety, or convenience so declared in writing by the Governor upon application by the head of any State Government agency setting forth the nature of the emergency and the danger to the public health, safety, or convenience caused by delay, contracts may be let to the extent necessary to meet the emergency without public advertisement. Such action and the reasons therefor shall immediately be made public by the awarding authority. Source: YSL 1-215 §5. §524. Qualifications of bidders. Before any prospective bidder may be entitled to submit a bid for the performance of a contract covered by section 521 of this chapter, he shall, not less than ten calendar days prior to the date designated for opening bids, give written notice to the contracting officer of his intention to bid, and such officer shall satisfy himself of the prospective bidder's financial ability to perform the work intended and of his experience and competence in performing similar work. Whenever it appears to the contracting officer that the prospective bidder is not fully qualified and able to perform the intended work, the contracting officer shall refuse to receive or consider any bid offered by the prospective bidder. Upon being determined not to be fully qualified, a prospective bidder may appeal this determination within ten days after notice of disqualification in accordance with the State Administrative Procedure Act, Yap State Law No. 1-90. Source: YSL 1-215 §6, modified. Cross-reference: Section 521 of this subchapter is on contracts and the requirement of competitive bidding. The statutory provisions of the State Administrative Procedure Act, YSL 1-90, are found in chapter 1 of Title 10 (Administrative Law) of this Code. §525. Advertisement for bids. Publication of a call for sealed bids shall include posting of notice for at least ten days in the immigration office and in one other prominent public place in the State, the use of radio and newspaper media when considered appropriate by the contracting officer, and any other means he may consider feasible. The notice shall state in clear terms the project that is to be bid on. Source: YSL 1-215 §7. §526. Bids; opening, rejection. The time of opening sealed bids shall not be less than 30 days after the final publication. All bids shall be sealed and delivered to the contracting officer and, in the presence of all bidders who attend, shall be opened by him at the hour and place as stated in the advertisement and may be inspected by any bidder. Any bid which does not comply with the requirements of the advertisement or other provisions of this chapter shall be rejected. If two or more bids are the same and the lowest, the contracting officer may accept the one he chooses, except that the bid of a noncitizen bidder shall be considered in the selection and determination of the lowest responsible bidder only if the amount of the bid of the noncitizen bidder is at least ten percent (10%) lower than the amount of the bid of the lowest citizen bidder. If no bids are received, the contracting officer may have the project done without further compliance with this chapter. Source: YSL 1-215 §8, modified. §527. Bids; information. All bids on construction project contracts shall include the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor in the performance of the construction project contract, the nature and scope of the work to be performed by such joint contract or subcontractor, and any other relevant information the contracting officer may require. Source: YSL 1-215 §9, modified. §528. Written contract awarded to lowest responsible bidder. All contracts shall be in writing and shall be executed by the State Government agency which is authorized to let contracts in its own name and shall be made with the lowest responsible bidder. If the lowest bid is rejected, the contracting officer may, at his discretion, award the contract to the lowest remaining responsible bidder or advertise anew for bids pursuant to section 525 of this subchapter. In each instance the officer, at his discretion, after determining the lowest responsible bidder, may negotiate with that bidder, and that bidder only, to reduce the scope of work and to award the contract at a price which reflects the reduction in the scope of work. Source: YSL 1-215 §10, modified. Cross-reference: Section 525 of this subchapter is on advertisement for bids. §529. Effect of restraint of competition. Any agreement or collusion among bidders or prospective bidders in restraint of freedom of competition by agreement to bid at a fixed price or to refrain from bidding shall render the bids of such bidders void. Each bidder shall accompany his bid with the sworn statement that he has not been a party to such an agreement. Source: YSL 1-215 §11. §530. Effect of advance disclosure of terms of bid. Any disclosure in advance of the terms of bid submitted in response to an advertisement for bids shall render the proceedings void and require advertisement and award anew. Source: YSL 1-215 §12. Subchapter III: Miscellaneous Provisions §561. Assignment of contracts. §562. Termination of contract by contracting officer. §563. Regulations. §564. Severability. §561. Assignment of contracts. No contract awarded to the lowest responsible bidder shall be assigned by the successful bidder without written consent of the awarding authority. Source: YSL 1-215 §13. §562. Termination of contract by contracting officer. The contracting officer for any contract executed in accordance with this chapter may terminate the contract at any time when, in the opinion of the contracting officer, the contractor has made unjustifiable and substantive changes from the terms and conditions specified in the contract. Upon termination, the contracting officer shall limit payment to the contractor to that part of the contract satisfactorily completed at the time of the termination. Source: YSL 1-215 §14, modified. §563. Regulations. The Governor shall issue regulations to implement this chapter in accordance with the provisions of the State Administrative Procedure Act, Yap State Law No. 1-90. Such regulations shall have the force and effect of law. Source: YSL 1-215 §15, modified. Cross-reference: The statutory provisions of the State Administrative Procedure Act, YSL 1-90, are found in chapter 1 of Title 10 (Administrative Law) of this Code. §564. Severability. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. Source: YSL 1-215 §16, modified.