Section 310.70  Rules Governing Competitive Bidding

a)         Whenever any public utility desires to enter into contracts or arrangements pursuant to competitive bidding, such public utility shall prepare specifications, forms of proposals or contracts setting forth clearly and so far as applicable in each case in detail a description or descriptions of the matters and things for which bids are requested, including the terms, times and conditions of delivery and payment, the place or places where delivery or performance is to be made, the character, amount and terms of securities offered or sought, and a full description of the supplies or other articles or things required or offered for sale, hypothecation, or purchase, and shall make and attach to such specifications such maps, drawings and illustrations and state such other substantial facts or conditions as are or may be necessary to a full understanding of the premises and procedure by bidders.  Such specifications, drawings and illustrations in each case shall be kept open at the principal office or offices of the public utility in Illinois for full examination, free of charge, by persons desiring to examine the same with a view to bidding, and upon request such public utility shall furnish to any person or persons desiring the same, true and correct copies of such specifications, maps, drawings and illustrations, provided, however, that the public utility may make a charge for such copies so furnished which charge shall not exceed the reasonable cost of making and forwarding the copies requested.  In addition, the public utility shall publish once a week for two consecutive weeks a notice requesting bids in at least two newspapers of general circulation, the first publication to be at least two weeks immediately preceding the day that bids are to be submitted; one such newspaper shall be the official newspaper selected by the Department of Finance of the State of Illinois pursuant to Section 28 of the "Civil Administrative Code of Illinois," approved March 7, 1917, as amended, and the other newspaper shall be one published or of general circulation in either:

            (Editor's Note:  Section 28 of the Civil Administrative Code of Illinois was repealed effective July 11, 1957.  The Commission will amend this Section to refer to the correct statute.)

1)         the city or town where the principal operating office of the public utility is located, or

2)         the city or town where the contract is to be performed.

b)         Such published notices shall describe in general the proposed contract or arrangement and the special things or matters for which bids are requested, the date and time at or before which the bids must be submitted and the person to whom and the office at which the bids submitted will be received and opened.  The public utility may in said notice reserve the right to reject any and all bids and may at its option require each bidder to tender a bond in a reasonable sum to be therein named with sufficient surety or sureties conditioned upon the faithful and prompt performance of the terms of the contract or arrangement.

c)         Every bid to receive consideration shall be submitted at the place and at or before the hour specified in the notice for the receipt of bids.  The time specified may be any hour from 10:00 a.m. until 3:00 p.m. of any business day and the bids shall be opened after the specified hour and before six o'clock on the day and at the place and by the person or persons designated in the notice. Each bidder may attend in person, or by duly authorized representative at the opening of the bids, and shall be afforded an opportunity to do so and to examine each bid.  The bids shall be forthwith tabulated and a copy of such tabulation shall be promptly furnished to any bidder or authorized representative on application therefor.  When required by the notice, each bid shall be accompanied by tender of a bond in the amount and upon the conditions specified in the notice.  A bond shall be required only in cases where the notice expressly specifies.  Each bid shall be enclosed with accompanying papers in a plain envelope, securely sealed, bearing no indication of the bidder or the amount of the bid and shall be marked "Bid under proposed contract pursuant to notice dated _________," and shall be addressed to the officer of the public utility designated in the notice to receive the same.  Each bid shall state the name and address of the bidder and if the bidder be a corporation, the names and addresses of the officers and directors thereof, and of the purchasing or selling officer or agent in that transaction, and if the bidder is a firm, partnership or association, the bid shall give the names and addresses of each member thereof, and of the general manager and purchasing or selling agent in that transaction.

d)         After receiving and opening bids as aforesaid, the public utility receiving the same shall within 48 hours in cases where the sale of securities is the undertaking, and within 20 days where the bids are for the purchase or sale of supplies, equipment, construction or maintenance work, or other articles or things, accept the most favorable bid considering:

1)         the lowest price or prices for the purchase of supplies, equipment, construction or maintenance work, articles or things described in the advertisement, and the highest price or prices offered for any securities or property so described for sale by the public utility, and

2)         the ability and reliability of the bidder, financial and otherwise, to deliver the property or to perform the work or transaction or to pay for the securities or property described in the advertisement, giving due consideration to any bond or security accompanying the bid.

e)         If the right be reserved in the notice, all bids may be rejected and the public utility may readvertise for bids.  The public utility shall notify the successful bidder of the acceptance of his or its bid and the bidder shall within 10 days execute the required contract, and if required by the notice, execution of a good and sufficient bond for the faithful and prompt performance of the contract.  In case the successful bidder shall neglect or fail within said time to execute the contract or bond as aforesaid, the public utility may within 5 days thereafter award the contract or arrangement to the next most favorable bidder ascertained as herein provided for determining the most favorable bidder.  If neither the most favorable bidder not the next most favorable bidder shall execute a contract and qualify as aforesaid, the public utility shall readvertise for new bids.

f)          Each public utility after having made and executed a contract as and in the manner above specified shall within 15 days after the execution of such contract, file with the Illinois Commerce Commission a statement of the transaction giving:

1)         a copy of the published notice,

2)         the names of all bidders, and if the bidder be a corporation, the names and addresses of the officers and directors thereof, and of the purchasing or selling officer or agent in that transaction, or if the bidder be a partnership, firm or association the names and addresses of the members thereof, the general manager and purchasing or selling agent in that transaction and the total amount of each bid,

3)         the name of the bidder to whom the contract was awarded together with a copy of the contract, and

4)         if any other than the lowest or the highest bid, as the case may be, is accepted as being the most favorable to the utility, the reasons for the acceptance.

g)         In the case of each bid so taken as aforesaid, the public utility shall preserve and keep open for examination by the Illinois Commerce Commission, or any duly authorized representative thereof,

1)         a copy of the resolution or order of the board of directors, executive committee or officers of the public utility, specifying the purposes and terms of the contract for which the bids were invited;

2)         a copy of the specifications, maps, drawings and illustrations upon which bids were made;

3)         copies of the notices published sworn to by and on behalf of each newspaper respectively, giving the dates and times of each publication;

4)         the original bids received, designating the bid accepted and giving a statement of the reasons for accepting the same;

5)         a copy of the contract entered into between the public utility and the accepted bidder, together with a copy of the bond, if any.

h)         The files in each transaction shall be securely fastened together and marked "Transaction for competitive bidding, pursuant to notice dated ­­­­­­_______" with a sworn statement by the president, a vice president or secretary of the public utility stating that said files contain true and complete records of all of the negotiations had in connection with the contract therein set forth, and such files shall not be broken or any part destroyed by the public utility or any officer or agent thereof, without written authorization of the Illinois Commerce Commission.

i)          Nothing herein contained shall excuse or waive the requirement of prior approval and authorization for the issuance of securities as provided in "An Act concerning public utilities," as amended.