WAC 468-310-050
Classification and capacity rating. (1)
Except as otherwise specified in this section, each contractor
seeking prequalification under these rules will be classified
for one or more of the classes of work listed in subsection (6)(a) of this section and will be given a maximum
capacity rating in accordance with its financial ability, the
adequacy of its equipment and plant facilities to perform the
class or classes of work for which it has sought
prequalification, the extent of the contractor's experience in
performing contracts of the class or classes for which
prequalification is sought, and the adequacy of the experience
and capability of the contractor's officers and key employees
in performing contracts of the class or classes for which
prequalification is sought. The maximum capacity rating will
limit the quantity of uncompleted work which the contractor
shall have under contract at any one time either as a prime
contractor or a subcontractor.
(2) Except as provided in subsections (7) through (9) of
this section, the maximum capacity rating for a contractor
applying for a rating in excess of fifty thousand dollars will
be ten times the contractor's net worth as set forth in the
standard prequalification questionnaire and financial
statement. A properly executed letter of credit from an
acceptable financial institution may be considered as an asset
increasing the contractor's maximum capacity rating by the
amount of the credit, but without the use of a multiplier. The maximum capacity rating for a contractor not submitting an
audited financial statement as provided in WAC 468-310-020(6)
will be ten million dollars: Provided, That in all cases the
contractor's maximum capacity rating may be reduced to an
amount considered by the department to be within the
contractor's actual capacity based upon its organization,
personnel, equipment and plant, and experience.
(3) Consideration will be given to raising, by an amount
not to exceed fifty percent, the maximum capacity rating of a
contractor who qualifies with respect to actual capacity based
upon organization, personnel, equipment and plant facilities,
and experience, upon receipt of evidence of a current bonding
capacity of such additional amount with a corporate surety. Such evidence shall be in the form of a letter of commitment
executed by an officer of the surety who is authorized to bind
the surety. Notwithstanding the provisions of this
subsection, the maximum capacity rating for a contractor not
submitting an audited financial statement as provided in WAC 468-310-020(6) will be ten million dollars.
(4) The certificate of prequalification issued by the
department will establish a contractor's maximum capacity
rating which will be subject to reduction by the total value
of its current uncompleted work regardless of its location and
with whom it may be contracted to determine the contractor's
bidding capacity at the particular time.
(5) Notwithstanding the provisions of this section, a
contractor will be allowed to submit a bid for an amount up to
$50,000 on a class or classes of work for which it is
prequalified without regard to any financial maximum capacity
rating or financial current capacity rating: Provided, That
the contractor's current capacity may be reduced to an amount
considered by the department to be within the contractor's
actual capacity based upon its organization, personnel,
equipment and plant facilities, and experience.
(6)(a) Construction, repair and maintenance work on ferry
vessels for which prequalification certification under these
rules may be granted are classified as follows:
Class 81
Vessel construction and renovation;
Class 82
Dry-docking and hull repairs;
Class 83
Vessel metal fabrication repairs;
Class 84
Vessel electrical repairs;
Class 85
Vessel miscellaneous repairs;
(b) A contractor currently prequalified under RCW 47.28.070 to perform those classes of work required in the
construction, improvement and repair of ferry terminal
facilities will initially be deemed prequalified under these
rules to perform such classes of work with the same capacity
rating as approved by the department for highway related work.
(7) Notwithstanding the provisions of this section,
proposers who wish to prequalify for the department's
construction of new 130-auto ferries, pursuant to the
department's 2003 request for proposals, must submit evidence
of their ability, if awarded the contract, to obtain contract
security in the amount of thirteen million dollars. The
department estimates such amount to be adequate to protect one
hundred percent of the department's estimated exposure to loss
on the vessel construction contract, as calculated by the
department prior to issuance of the request for proposals.
Such amount shall be specified in the project request for
proposals and is subject to modification by addendum during
the request for proposals process. The actual contract
security amount for the project construction contract will be
a percentage of the successful proposer's total bid price.
Such percentage shall be specified in the construction
contract within the request for proposals. For the new
130-auto ferries contract, this provision applies in lieu of
the maximum capacity rating formula specified in subsection
(2) of this section.
(8) Notwithstanding the provisions of this section or WAC 468-310-020, proposers who wish to prequalify for the
department's construction of new 130-auto ferries, pursuant to
the department's 2003 request for proposals, shall, in
addition to the evidence of contract security required in
subsection (7) of this section, submit an audited financial
statement for at least one year in the previous three years,
plus annual financial statements for two additional years in
the previous three years. The audited financial statement
shall be performed by an independent certified public
accountant which shall include comparative balance sheets and
income statements, a statement of retained earnings,
supporting schedules and notes attached thereto, and the
opinion of the independent auditor. The form and quantity of
financial statements shall be specified in the project request
for proposals and is subject to modification by addendum
during the request for proposals process. For the new
130-auto ferries contract, this provision applies in lieu of
the quantity of audited financial statements specified in WAC 468-310-020.
(9) This subsection shall apply to the Port
Townsend/Keystone vessel procurement only and shall be used in
lieu of the requirements of subsections (1) through (5) of
this section. It does not replace or modify any other
provisions in this chapter or governing prequalification
statutes. The department may prequalify a contractor under a
Class 81 classification to bid on the Port Townsend/Keystone
vessel procurement pursuant to this section based on the
department's evaluation of the following criteria:
(a) Whether the contractor has adequate equipment and
plant facilities available to accomplish the work;
(b) Whether the contractor has trained personnel
available to perform the work;
(c) Whether the contractor has demonstrated experience in
the type of work;
(d) Whether the contractor has an organization and
technical staff with the size, training, experience and
capability to accomplish the work;
(e) Whether the contractor has adequate financial
resources to perform the type and size of work, or the ability
to timely secure such resources. In evaluating such financial
resources, the department may consider the contractor's
overall financial condition including, but not limited to:
(i) Level of capitalization;
(ii) Cash flow;
(iii) Level of business activity;
(iv) Credit history;
(v) Debts;
(vi) Assets; and
(vii) Ability to obtain financing, including but not
limited to, irrevocable lines of credit, and parent company
guarantees.
A contractor does not have adequate financial resources
when, based upon the totality of the circumstances, it lacks
the financial resources reasonably expected of a contractor
capable of performing the work on time and without
interruption.