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Administrative (Non-Clinical) Policy
This administrative policy applies to the operations and staff of the University of Wisconsin Hospitals and
Clinics Authority (UWHCA) as integrated effective July 1, 2015, including the legacy operations and
staff of University of Wisconsin Hospital and Clinics (UWHC) and University of Wisconsin Medical
Policy Title: Bidding and Awarding Construction Contracts
Policy Number: 11.31
Effective Date: January 1, 2017
Chapter: Procurement Services
I. POLICY ELEMENTS
A. To define procedures for bidding and awarding construction contracts (e.g. new, remodeling,
repair and maintenance) at UW Health.
B. With the exception of Non-hospital projects managed by UW Health, competition will be sought
for each project involving the replacement, renovation, construction or repair of any UW Health
owned or lease hold facility.
C. Certain repairs to a UW Health facility which are of an emergency nature such as certain roof
leaks, plumbing leaks, or other hazardous situations which pose an immediate threat to the facility
or its occupants, shall be performed in accordance with the provisions of Administrative Policy
11.12-Purchase of Goods, Services, Equipment, and the Approval of Invoices.
D. Adhere to UW Health Administrative Policy 4.01-Contract Approval and Signature requiring a
written contract for the purchase, sale, lease, use, construction or remodeling of real estate.
Lowest Responsible Bidder (LRB): Refers to the contractor who is qualified under Section V, submits
the lowest total cost AND has demonstrated the capability in all aspects to perform fully the bid
deliverables and expectations.
Project Manager (PM): Refers to the UW Health individual managing the UW Health project.
A. Except as noted in section E, projects with an estimated value less than $150,000, the
Construction Manager (CM) may select contractors based on their suitability and availability for
the type of work required. The Procurement Services Department will issue the purchase order.
B. Except as noted in section E, portions of projects with an estimated value greater than $150,000
but less than $ must be bid to two or more sources by the PM. This includes projects managed
internally by UWHC in which part or the entire project is performed by subcontractors. As an
alternative, the PM may select contractors under contract with Wisconsin State Agencies.
Examples of contracts include but are not limited to, the Wisconsin Department of Administration
(DOA), the University of Wisconsin System (UW System) and the University of Wisconsin-
Madison (UW Madison). Copies of bids must be included with the purchase requisition.
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C. Except as noted in Section III. Procedure E, projects with an estimated value greater than
$150,000 must be bid to multiple sources through the Procurement Services department as
1. For major projects, the PM and Procurement Services meets with the bidders to ensure
bidders understand specifications and scope of work, etc.
2. If a bidder cannot perform the work to expectations, the bidding will proceed with the
remaining qualified bidders.
3. Procurement Services, in collaboration with the PM will prepare and issue a Request for
Quote (RFQ, RFP, RFI, etc.) to qualified contractors.
4. Upon receipt of the bid responses, Procurement Services will prepare a bid summary,
identify the key bid components of the qualifying Lowest Responsible Bidder (LRB), and
submit and review with the PM.
5. The PM reviews the summary and bid responses and validates the results LRB with
6. Procurement Services notifies all bidders of the LRB.
7. The PM and Procurement Services meets with the LRB to ensure bidder interpreted bid
and specs, understands scope of work, etc.
8. If the PM determines the LRB cannot perform the work to expectations, the PM will
work with the next best qualified LRB etc., until a contractor is chosen.
9. Facilities Planning, Design and Construction (FPDC) will initiate the production of the
American Institute of Architects (AIA) Agreement Form and obtain a fully executed
10. FPDC will complete a Strata requisition and attach a copy of the fully executed AIA
11. Procurement Services will award the bid to the selected contractor. Procurement Services
will issue a purchase order to the selected contractor, including a copy of the executed
D. The bid process may be waived in certain cases. In addition to C.9., and C.10. above, Facilities
and Support Services or Information Services must complete and attach a Sole Source
Justification-Construction and Remodeling form to the Strata requisition. This form is found on
the Procurement Services department U-Connect page.
E. Per UW Health Administrative Policy 4.01-Contract Approval and Signature, a written contract is
required for the purchase, sale, lease, use, construction or remodeling of real estate.
Sole Source Justification-Construction & Remodeling (located on Procurement Services Department U-
V. CONTRACTOR QUALIFICATIONS
A. The following criteria will be examined to determine contractor and subcontractor qualifications:
1. Past performance of the proposed project team (project manager, project foreman, and
project superintendent) at UW Health.
2. Production capabilities
3. Experience or specialization in the type or function of the project being considered
4. Geographic proximity
5. Safety and environment record
6. Financial stability
7. Bonding and Insurance rating and certification check
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8. Certification of Project Manager, Superintendent and Foremen as a holder of ASHE
(American Society for Healthcare Engineering) Healthcare Construction Certificate.
9. Pending and past legal action (Safety, Environmental, Labor, etc.)
10. Environmentally sustainable products and practices
Sr. Management Sponsor: VP, Facilities and Support Services
Author: Director, Procurement Services
Reviewer: Director, Facilities Planning, Design and Construction
Approval Committee: UW Health Administrative Policy and Procedure Committee
UW Health Chief Administrative Officer
Previous revision: 082013
Next revision: 012017