Section 360.305  Compliance With Procurement Requirements

a)         Grantee responsibility

            The grantee is responsible for selecting the low, responsive, and responsible bidder or other contractor in accordance with applicable requirements of state, or local laws or ordinances, as well as the specific requirements of state and federal law or this grant agreement directly affecting the procurement (for example, the non-restrictive specification requirement or the equal employment opportunity requirement) and for the initial resolution of complaints based upon alleged violations.  If complaint is made to the Agency concerning an alleged violation of any law or of this grant agreement in the procurement of construction services or materials for a project involving Step 3, the complaint will be referred to the grantee for resolution.  The grantee shall promptly determine each such complaint upon its merits concerning the proposed procurement.  The grantee must promptly furnish to the complaining party and to other affected parties, by certified mail, a written summary of its determination, substantiated by an engineering and legal opinion, providing a justification for its determination.

b)         Arbitration

            Disputes between the grantee and any party adversely affected by the determination of the grantee made pursuant to Section 360.305(a) above shall be resolved by binding arbitration by a single arbitrator, in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association.  This agreement to arbitrate shall be specifically enforceable under the arbitration laws of the State of Illinois (Ch. 10 Ill. Rev. Stat. 1975, Sections 101-123). The award rendered by the arbitrator shall be final, and judgement may be entered upon it in any court having jurisdiction thereof.  A copy of the arbitration award shall be provided to the Agency immediately upon its issuance.

c)         Time limitations

            Complaints should be made pursuant to Section 360.305(a) of this general condition as early as possible during the procurement process, preferably prior to issuance of an invitation for bids to avoid disruption of the procurement process:  Provided, That a complaint authorized by Section 360.305(a) of this general condition must be mailed by certified mail (return receipt requested), or delivered, no later than five working days after the bid opening.  A request for arbitration pursuant to paragraph Section 360.305(b) of this general condition must be made to the American Arbitration Association within one week after the complaining party received the grantee's adverse determination.

d)         Deferral of procurement action

            Where the grantee has received a written complaint pursuant to Section 360.305(a) of this general condition, it must defer issuance of its solicitation or award or notice to proceed under the contract (as appropriate) for ten days after mailing or delivery of any written adverse determination.  If a determination is made by either the grantee or the arbitrator which is favorable to the complaint, the terms of the solicitation must be revised or the contract must be awarded (as appropriate) in accordance with such determination.

e)         Enforcement

            Noncompliance with the provisions of this grant affecting procurement will result in:

1)         Total or partial termination of the grant pursuant to General Condition Section 360.103, (Termination) hereof;

2)         Ineligibility for grant assistance which could otherwise be awarded under this grant; or

3)         Disallowance of project costs incurred in violation of the provisions of this grant offer or applicable laws, as determined by the Agency.