Arkansas Administrative Code
Agency 012 - Department of Arkansas Heritage
Division 02 - Historic Preservation Commission
Rule 012.02.99-001 - Requirements and Procedures for Historic Preservation and Restoration Grants

1. Evidence that the objectives of the project can be achieved within the framework set forth by the applicant

2. Qualifications and experience of the applicant and others participating in the project

3. Interest of the applicant in undertaking the project and acquired benefits to the applicant and to the AHPP

4. Appropriateness of the budget and evidenced support for matching funds

5. Timeliness and the need and significance of the project

6. Completeness of application (Incomplete applications will not be considered)

Project Time Limits

Unless otherwise authorized all projects must be completed within the time period specified in the grant contract. A grantee who is unable to meet a project deadline is required to submit a written request for an extension of time at least 14 days prior to the deadline. This request will be reviewed by the AHPP and the grantee will be notified as soon as possible of the action taken. A request for an extension does not guarantee it will be granted. If the grantee does not meet an established deadline and/or does not request and receive an extension, the grant will be terminated on the contract end date and funds will be reallocated. A grantee who encounters serious financial problems after accepting a grant, or who is for some other reason unable to proceed with the project, should immediately inform the AHPP. The funds will then be reassigned or returned to the AHPP according to the procedures specified in this manual.

Project Review/Approval

Project plans and specifications must be forwarded to and reviewed by the AHPP staff before work starts. If clarification or additional information is required, the grantee will be contacted.

When preparation for the project is complete, the grantee will notify the AHPP. The AHPP will then conduct a final review of all project plans and required documents. When all is in order, the AHPP will provide written authorization for work to begin. Work may not begin until grantee receives this project initiation letter.

AHPP staff members may inspect the project before, during, and after the completion of the work. Once work has begun, the site visits may be made without notification to the grantee. An AHPP photographer may photograph the project.

The grantee and/or the project architect are encouraged to contact the AHPP with questions at any time before or during work on the project. No changes in the project can be made after the project has been approved by the AHPP unless such changes are submitted in writing to and approved by the AHPP beforehand. If changes are not approved, it is possible that the final work may not be approved and that full funding for the project could be denied In the event of unforeseen problems, the AHPP staff will work to find a solution satisfactory to both the grantee and the AHPP.

Allowable Expenses

A list of some of the most frequently used allowable costs follows. To be considered allowable, all costs must appear in the approved work-cost breakdown.

* Historical, architectural, or archeological research necessary to implement and carry out project work

* Architectural, engineering, or contractor fees necessary to implement and carry out project work

* Expendable supplies and materials

* Rental or lease of project equipment

* Exterior restoration

* Structural repairs.

Non-allowable Expenses

The following costs are not reimbursed by Historic Preservation and Restoration Grants:

* Any item not listed in the approved work-cost breakdown

* Deficits

* Contingency funds

* Contributions or donations to other organizations or individuals

* Capital expenditures defined as tangible property costing $100 or more and having a life span of two or more years

* Entertainment expenses, including refreshments, flowers, reception costs, etc.

* Interest and other financial costs

*; Lobbying expenses

* New construction (some exceptions apply)

* Interpretive expenses (some exceptions apply)

* New pavement of parking lots, roads or walkways (some exceptions apply)

* Furnishings, draperies or carpeting

* Work done prior to grant award and after approved grant end date

* Installation of artificial siding, incompatible replacement windows, or the use of incompatible materials of any type

* Property acquisition costs

Selection of an Architect

Recipients of grants greater than $10,000 are required to use the services of an architect licensed by the State of Arkansas. The architect will prepare plans, specifications, a work-cost breakdown, and other required contract documents, for submission to the AHPP, and will supervise the project This requirement may be waived by the AHPP under certain circumstances.

Procedures for selection of an architect are contained in Act 616 of 1989 of the State of Arkansas and should be reviewed. The major provisions of the selection process are stated here:

1. Competitive bidding for procurement of architectural services is prohibited.

2. Contracts for architectural services shall be negotiated on the basis of demonstrated competence and qualifications.

3. Select at least three (3) qualified firms based on such criteria as:

4. Negotiate a satisfactory contract with the most qualified firm. (See Section 5 of Act 616 for more details on the negotiating process.)

The architect selected by the grantee must arrange to meet with the Arkansas Historic Preservation Program staff to discuss the project in detail.

Selection of a Contractor

Procedures for selecting a contractor and requirements for contractors are contained in Act 159 of 1949 as amended and should be reviewed. The major provisions of Act 159 are:

Contractor License Requirement

1. On projects of $ 10,000 or more, contractors must be licensed by the Arkansas Contractors Licensing Board. Contractors shall indicate their current license number on their bid forms.

2. On projects of less than $10,000, licensed contractors are not required, although the AHPP highly recommends licensed contractors for all projects.

3. On projects of $50,000 or more, the general contractor must list any roofing, plumbing, electrical and HVAC subcontractors and these subcontractors must be licensed by the Arkansas Contractors Licensing Board.

Contractor Insurance and Bonding Requirements

1. All contractors must carry construction liability and workers compensation insurance regardless of the cost of the project.

2. On projects of $10,000 to $19,999, contractors must furnish a 5% bid bond.

3. On projects of $20,000 or more, contractors must furnish a 5% bid bond and a 100% performance bond.

4. Bonds shall be written in favor of the grantee. After approval by the architect, the contractor shall file the bond with the Circuit Clerk and Recorder of the county where the work is to be performed. Contractor shall obtain from the Circuit Clerk certificates as evidence that the bond has been approved and filed with the Clerk and said certificates shall be filed with the architect. The premium for the required bond shall be filed by the contractor. The bond must be obtained by the contractor before the contract between the owner and the contractor can be put into effect.

5. Insurance and bonding agents must be licensed and authorized to do business in Arkansas.

Bid Procedures

Most grantees funded by this grant program must use competitive bidding to purchase goods, services, materials, and labor. Competitive sealed bidding is required for the purchase of any construction-related goods and services of $10,000.01 or more. All procurement of construction-related products and services between $1,000.01 - $10,000.01 shall be done by soliciting competitive quote bids by telephone or in writing from at least three qualified vendors. Project Specifications

Project specifications shall contain the following statement:

"The Contractor is cautioned that this project involves largely RESTORATION WORK and maintaining the building in its present form is of utmost importance. The contractor shall use construction procedures calculated to protect the building. Any damage shall be repaired or replaced to present condition or better at no cost to the owner. This project involves state funds and carries the resultant obligations and restrictions."

Invitation to Bid

For projects costing more than $10,000.01, the grantee must seek bids by placing an advertisement once each week for at least two consecutive weeks in a publication that has general circulation in the county where the work is to be performed. Bid date must be at least one week following last advertisement. The grantee may also use additional advertising sources.

If a bid bond is required, the amount may be stated as a percentage. If the contract does not require a performance bond, the bid bond will be held until final acceptance and completion of the contract by payment in full. A statement of the taxing unit's reservation of the right to reject any or all bids and to waive any formalities; and such other pertinent facts or information which to It may appear necessary or desirable. The notice shall include a general description of the goods or services to be procured; shall state where bid documents may be obtained; shall state the date, time, and place of bid opening; and shall inform bidders that state funds are being used, and that relevant regulations, restrictions and applicable laws apply.

If, having advertised for bids, no bids are received by the date of the bid closing, the grantee must advertise for the goods and/or services to be procured a second time, with a second bid closing date established in accordance with these regulations.

Bids shall be opened at the time and place designated in the public notices and the invitation for bid. When practical, the names of the bidders and the amounts of their bids may be read aloud. Except where it may be deemed impractical, due to the nature or complexity of any invitation for bids, an abstract of bids that contains the amount of each bid and the name of the bidder shall be prepared for each invitation for bids. An abstract of bids shall be retained in the bid file and shall be available for public inspection.

Competitive Negotiation

Competitive negotiation may be used if conditions are not appropriate for the use of formal advertising. In competitive negotiation, proposals are requested from a number of sources and the Request for Proposals is publicized, negotiations are normally conducted with more than one of the sources submitting offers, and either a fixed-price or cost-reimbursable type contract is awarded, as appropriate. If competitive negotiation is used for a procurement under a grant, the following requirements shall apply:

1. Proposals shall be solicited from an adequate number of qualified sources to permit reasonable competition consistent with the nature and requirement of the procurement. The Request for Proposals shall be advertised a minimum of five days statewide, and reasonable requests by other sources to compete shall be honored to the maximum extent practical.

2. The Request for Proposals shall identify all significant evaluation factors. This identification must include the price or cost, where required, and the relative importance attached to price or cost.

3. The grantee shall provide mechanisms for technical evaluation of the proposals received, determinations of responsible offers for the purpose of written or oral discussions, and selection for contract award.

4. Award may be made to the responsible offeror whose proposal will be most advantageous to the procuring party, price and other factors considered. Unsuccessful offers should be notified promptly.

5. Grantees may utilize competitive negotiation procedures for procurement of architectural, engineering, archeological, and other professional services, whereby competitor's qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation.

Noncompetitive Negotiation

Noncompetitive negotiation may be used when the award of a contract is not feasible under competitive bidding (formal advertising) or competitive negotiation procedures. Noncompetitive negotiation is procurement by soliciting a proposal from only one source, or after soliciting a number of courses, it becomes apparent the competition is not adequate. Circumstances under which a contract may be awarded by noncompetitive negotiation are limited to the following:

1. The item is available only from a single source.

2. Public exigency or emergency when the urgency for the requirement will not permit a delay incident to competitive solicitation.

3. After solicitation of a number of sources, competition is determined inadequate.

Single source contracts must be approved by the AHPP.

Bid Documentation

The following bid documentation is required and a copy must be provided to the AHPP:

1. Dated copies of all required advertisements

2. Dated copies of all sealed bids received

3. Names and addresses of all vendors contacted for quote bids

4. Quotes from all bids

5. Documentation of negotiations for negotiated contracts

6. Justification for why the lowest bid was not accepted, if such was the case.

Bid Acceptance and Award

An award may be made to the lowest aggregate bidder for all items, group of items, or an individual item basis, whichever is deemed to be in the best interest of the project.

The right to reject any and all bids and to waive technicalities and minor irregularities in bids should be allowed.

After a reasonable evaluation period, the contract shall be awarded to the responsive and responsible bidder who submitted the lowest bid that meets the requirements and criteria set forth in the Invitation for Bids. If after evaluation of the bids, including consideration of any clarifying or explanatory information submitted by the bidders, it is determined that no satisfactory bid has been received, all bids may be rejected. If all bids are rejected, the grantee must re-advertise for the goods and/or services to be provided in accordance with these regulations.

Grant Payments

Since grants are based on anticipated federal funds or state revenues and not on existing funds, grant amounts could be reduced at any time during the grant period.

The schedule of grant payments will depend upon the nature of the project Grant payments will be made directly to the grantee.

No payment will be made to the grantee unless payment requests are accompanied by progress or final reports as applicable. The grantee should use the following procedure:

1. No payment shall be made under this grant agreement until recipient has made a cash match expenditure at least equal to the payment requested.

2. One of the following payment options can be used:

3. Requests for partial reimbursement payments must include:

4. Final payment will be processed upon approval of completed work. Request for final payment must include: