Conflict of Interest Language
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- Ashlee McLaughlin
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1 Project Development - Design Services The Consultant and subconsultants shall disclose in the Transmittal Letters that accompany the Statement of Qualifications (SOQ), all contracts or projects for which they have potential or actual conflicts of interest with this Contract. Failure to identify potential or actual conflicts of interest constitute grounds for rejection of the SOQ without further review. If such conflicts are discovered during the term of the Contract, Caltrans may terminate the Contract for default per Exhibit III, Section D. The existence of potential or actual conflicts of interest will be used as an evaluation criterion regarding team availability during the evaluation and selection process. All professional and technical engineering services such as design analysis, studies and deliverables produced by the Consultant shall be free of any conflict of interest and shall be subject to the approval and acceptance by Caltrans Contract Manager. The Consultant and its subconsultants will not be eligible to bid on or otherwise compete for or accept awards for contracts for non-a&e construction or related construction services for projects identified in the SOQ or assigned Task Order(s). If the Consultant or any subconsultants are not assigned specific projects by the expiration of the Contract, either may bid or otherwise compete for and enter into contracts for non-a&e construction and related services. In the event of non-acceptance of a deliverable due to discovery of conflict of interest, the Consultant shall provide replacement deliverables free of any actual or potential conflict of interest as a prerequisite to receiving payment for the deliverable. In the event it is not possible to provide a replacement deliverable, the Consultant shall not receive compensation for any deliverables that contains a conflict of interest. 10/4/12 Page 1
2 One example of conflict of interest is: Providing both preparation and review of the same work on the same project for Caltrans or others. 10/4/12 Page 2
3 Construction Engineering, Construction Inspection and General Contract Administration The Consultant and subconsultants shall disclose in the Transmittal Letters that accompany the Statement of Qualifications (SOQ), potential or actual conflicts of interest as described below. Failure to submit the required information in the SOQ shall result in rejection of the SOQ for noncompliance with the Request for Qualifications requirements, or if later discovered during the term of the Contract, Caltrans may terminate the Contract for default per Exhibit III, Section D. The existence of potential or actual conflicts of interest will be used as an evaluation criterion regarding team availability during the evaluation and selection process. Any person, firm or subsidiary thereof who may provide, has provided or is currently providing Design Engineering services and/or Construction Engineering services under a contractual relationship with a construction contractor(s) on any Caltrans project listed in the Scope of Work of this RFQ, must disclose the contractual relationship in the SOQ, the dates and the nature of the services either provided or potentially to be provided or actually provided under that contract(s). All firms are required to disclose in the SOQ, any Design Engineering services including claim services, Lead Project Management services and Construction Engineering Services provided to Caltrans and all clients which either provided or potentially to be provided or actually provided under that contract(s) on the projects listed in this RFQ. Throughout the Contract term, the Consultant and its subconsultants agrees that, prior to providing any engineering services to any construction contractor on any of the Caltrans projects listed in the scope of this Contract, it will disclose the potential business relationship and seek Caltrans consent to render those services. The submitted documentation will be used for determining potential conflicts of interest; Caltrans will use this documentation to 10/4/12 Page 3
4 determine whether the firm may work on specific projects. A conflict of interest may include a situation in which, during the term of the Contract, the Consultant and/or its subconsultants provides engineering services to a construction contractor who is awarded a contract with Caltrans on a project for which there is an assigned Task Order under this Contract. In this situation, the Consultant must immediately notify the Caltrans Contract Manager regarding the conflict. The Contract Manager will then terminate the Task Order involving the conflict of interest and Caltrans may obtain the conflicted services in any way allowed by law. Failure by the Consultant to notify the Caltrans Contract Manager is grounds for termination of the contract for default pursuant to Exhibit D, Section III of the Contract. The Consultant and its subconsultants have not, currently do not and will not provide Design Engineering services including lead Project Management services and claim services on the same Caltrans project(s) identified in the Contract Scope of Work. All construction management deliverables including construction inspection produced by the Consultant and its subconsultants shall be free of any actual or potential conflict of interest and shall be subject to the approval and acceptance by the Caltrans Contract Manager. In the event of non-acceptance due to discovery of conflict of interest, the Consultant shall provide replacement deliverables free of any conflict of interest as a prerequisite for receipt of payment and at no additional cost to Caltrans. In the event the Consultant is unable to provide replacement deliverables, the Consultant shall not receive compensation for the deliverables containing the conflict of interest. If work is later determined to contain a conflict of interest, either the Consultant shall reimburse Caltrans for any amount paid for the conflicted work or Caltrans may deduct that payment from any current or future amounts owed to the Consultants. Failure by the Consultant to disclose any conflict of interest to the Caltrans Contract Manager is grounds for termination of the contract for default pursuant to Exhibit D, Section III of the Contract. Some examples of conflict of interest are: Serving on an active design contract or has provided design services for the same projects listed in the Construction Management/Inspection contract. Roadway Inspector or Surveyor from the same company that performs Quality Control for the Contractor and Quality Assurance for Caltrans concurrently on the same project. 10/4/12 Page 4
5 Project Management Services The Consultant and subconsultants shall disclose in the Transmittal Letters that accompanies the Statement of Qualifications (SOQ) all contracts or projects for which they have potential or actual conflicts of interest with this contract. Failure to identify potential or actual conflicts of interest constitutes grounds for rejection of an SOQ without further review. If such conflicts are discovered during the term of the Contract, Caltrans may terminate the Contract for default per Exhibit III, Section D. The existence of potential or actual conflicts of interest will be used as an evaluation criterion regarding team availability during the evaluation and selection process. Project Manager(s) as an individual or the Consultant firm will not be allowed to provide any A&E services or bid on the non-a&e construction contract on projects for which the Project Manager or Consultant firm is assigned as the Project Manager. Furthermore, the Project Manager and the Consultant firm must disclose any financial or business interest the Project Manager, Consultant or any subconsultants may have: 1) for projects listed in the Statement of Work, or, 2) prior to their project assignment(s) if it was not previously disclosed in the SOQ. For the Project Manager position on any project, neither the Consultant, any subconsultants, nor their subsidiaries shall have a contract with Caltrans for other A&E or non-a&e construction services for that project. Neither the Consultant, any subconsultants, nor their subsidiaries shall submit bids or otherwise compete for future work on any project where the Consultant, any subconsultant or their subsidiaries acted in the role of Project Manager. This provision shall survive the expiration of this Contract. 10/4/12 Page 5
6 Materials Testing The Consultant and subconsultants shall disclose in the Transmittal Letters that accompany the Statement of Qualifications (SOQ), any potential or actual conflicts of interests as described below. Failure to submit the required information with the SOQ shall result in rejection of the SOQ for noncompliance with the Request for Qualifications requirements, or if later discovered during the term of the Contract, termination for default per Exhibit D, section III of the Contract: The existence of potential or actual conflicts of interest will be used as an evaluation criterion regarding team availability during the evaluation and selection process. Any person, firm or subsidiary thereof who may provide, has provided or is currently providing Design Engineering Services and/or Construction Engineering Services under a contractual relationship with a construction contractor(s) on any Caltrans project listed in the Scope of Work of this RFQ must disclose the contractual relationship in the SOQ, the dates and the nature of the services either provided or potentially to be provided or actually provided under that contract(s). All firms are also required to disclose in the SOQ, any Design Engineering services including claim services, Lead Project Management services and Construction Engineering Services provided to all other clients which either provided or potentially to be provided or actually provided under that contract(s) on the projects listed in this RFQ. The Consultant and its subconsultants will not provide material Quality Control services for construction contractor(s) when the project is assigned to the Consultant to provide material Quality Assurance services on the projects that are 10/4/12 Page 6
7 listed and that have been identified by project EA and project ID in this Scope of Work. By signing the Contract, the Consultant or any subconsultants also do not or will not have any financial or business relationship with the construction contractor(s) who are working on the projects that are assigned to Consultants for material Quality Assurance services through task orders on this Contract. Throughout the Contract term, the Consultant or any subconsultants shall disclose any potential business or financial relationship and seek Caltrans consent before providing engineering services to any construction contractor on any of the Department s projects listed in the scope of this Contract. The submitted documentation will be used for determining potential conflicts of interest. Caltrans will use this documentation to determine whether the firm may work on specific projects. A conflict of interest may include a situation in which, during the term of the Contract, the Consultant or any subconsultants provides engineering services to a contractor who is awarded a contract with Caltrans on a project for which there is an assigned Task Order under this Contract. In this situation, the Consultant must immediately notify the Caltrans Contract Manager regarding the conflict. The Contract Manager will then terminate the Task Order involving the conflict of interest and Caltrans may obtain the conflicted services in any way allowed by law. Failure by the Consultant to notify Caltrans Contract Manager is grounds for termination of the contract for default pursuant to Exhibit D, Section III of the Contract. Some examples of conflict of interest are the following: Certified Materials Tester(s) or Plant Inspector(s) from the same company that performs Quality Control for the Contractor and Quality Assurance for Caltrans on the same project. Certified Materials Tester(s) or Plant Inspector(s) from the same company that currently performs Quality Control for the Contractor on any project and Quality Assurance for Caltrans on different projects where the same Contractor is performing work. Providing services to construction contractor s subcontracts, fabricators, equipment installer, material suppliers and other firms associated with the projects listed in the Contract. 10/4/12 Page 7
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