Glossary

A+B Bidding

Cost plus time bidding, more commonly referred to as A + B, factors time plus cost to determine the low bid.

AASHTO

American Association of State Highway and Transportation Officials. AASHTO is a standards setting body which publishes specifications, test protocols and guidelines used in highway design and construction throughout the United States. More about AASHTO.

AASHTOWare Project

AASHTO software system designed for bid submission, bid preparation, detection of collusion and the contract administration of state highway construction/maintenance projects.

Abstract Tabulation of Bids

The abstract/tabulation of bids lists contractor bid prices, as well as the engineer’s estimate for all pay items on a project. The abstract is not public data until the contract has been awarded.

Addendum

A supplement to the proposal package covering additions, corrections, or changes in the bidding conditions for the advertised work that is issued by the department to prospective bidders before the date and time for the opening of proposals.

Advertisement for Bids

Public announcement, as required by law, inviting proposals for the work to be performed or materials to be furnished. More about advertisement for bids.

Apparent Bid Results

List of bidders and total bid amounts for each project in a letting. Apparent bid results are posted on the Bid Express website as bids for each project are opened. View bid results. This is an open portal to the apparent bid results on Bid Express only.

Apparent Low Bidder

Contractor with the lowest bid.

Approval

Point at which a contract has been fully executed and notice of contract approval is given to the contractor.

Associated General Contractors (AGC)

A national non-profit professional trade association dedicated to promoting opportunity and excellence in the building and highway construction industry. More about AGC.

Award

The department’s selection of a bidder’s proposal and issuance of contract documents, subject to execution and approval of the contract.

Award Package

Contract documents sent to the selected Bidder; all awards are made electronically via Bid Express. The awards package includes: award letter, instruction letter, contract, payment and performance bond, authorization for contractor’s representative form, construction zone incidents form and other documents as required by the proposal.

Best Value Contracting

Best-Value Contracting allows owners to consider other factors in addition to price in the award and execution of construction contracts. MnDOT currently has best-value authority for design-bid-build and design-build projects. More about best value contracting.

Bid Bond

See proposal guaranty.

Bid Express

An online information service for bidding provided by Info Tech, Inc.; it is a two-way service, publishing bid-related information from agencies to the bidding community, and allowing online, secure bid submission from the bidding community to the agency. More about Bid Express.

Bid Letting

Opening of bid proposals for highway construction and maintenance projects.

Construction Manager/General Contractor (CMGC)

Construction Manager / General Contractor (CMGC) is an integrated approach to planning, designing and constructing a project. Owners, designers and contractors work collaboratively to develop the project scope, optimize the design, improve quality and manage cost. More about CMGC.

Contract

The written agreement between the Department and the Contractor setting forth their obligations, including, but not limited to, the performance of the work, the furnishing of labor and materials, the basis of payment and other requirements contained in the contract documents. The contract documents include the advertisement for bids, proposal, contract form, contract bonds, standard specifications, supplemental specifications, special provisions, plans, notice to proceed, work orders, and supplemental agreements that are required to complete the construction of the work in an acceptable manner, including authorized extensions, all of which constitute one instrument.

County Number

Minnesota county number used as the first part of the State Project number.

Debarred Contractors

Individuals or businesses that are debarred and/or disqualified from entering into or receiving a MnDOT contract, serving as a subcontractor or material supplier under such a contract. This debarment also applies to county, town, home-rule and statutory city contracts for goods or services.

Design-Build

Design-build is a contracting process that brings designers and contractors together early in the detail design portion of a project. The owner clearly defines the standards and general specifications they expect for a project, and the design-build team works together to satisfy those requirements. MnDOT uses the flexibility design-build offers to maximize the value received per dollar spent in a variety of situations. More about design-build.

Digital ID

A unique electronic encryption key that allows contractors to digitally sign bids submitted via the Bid Express service.

Disadvantaged Business Enterprise (DBE) Program

DBE Directory

The Disadvantaged Business Enterprise Certified Directory is a searchable listing of all DBEs certified to perform work under the DBE program as well as all DBE prime and sub vendors who have bid or performed work on MnDOT contracts. Search by state, city, vendor, NAICS codes and more. More about the DBE directory.

DBE Goal

MnDOT's DBE program is an affirmative action program intended to level the playing field by providing contracting opportunities for small businesses owned and controlled by socially and economically disadvantaged individuals. Any MnDOT project receiving federal funds should have established DBE goals. DBE specialists evaluate each proposal for federally funded MnDOT projects before the project is advertised. The specialists then set a DBE participation goal or a race-gender neutral goal. These goals are stated in the DBE Special Provisions, which are included in the proposal.

ELLA (Early Let, Late Approval)

MnDOT term used to describe a contract let in one fiscal year, and encumbered in the next when funding is allocated.

E-plan Room

MnDOT’s virtual plan room hosted by a third party vendor; plans and proposals are posted for free viewing or may be downloaded for a fee.

Engineer's Estimate

MnDOT's estimate of what a project will cost to construct. This estimate is prepared using the final plan and proposal. It is compared with the bids received to determine if the project should be awarded. The Engineer’s Estimate is not available to the public (by statue) until after the project is awarded.

Equal Employment Opportunity (EEO)

EEO Is responsible for ensuring equal opportunity for employment in the construction trades on state and federally funded projects regardless of race, gender, ethnicity, sexual orientation, age, religion, marital status and status with regard to public assistance. The EEO program requires contractors to actively recruit women and minority applicants for employment in accordance with federal and state EEO laws and MnDOT policies. The EEO program requires a workplace to be free from discrimination, harassment and violence. More about the EEO Program.

Equal Pay Certificate

The Minnesota Department of Human Rights (MDHR) ensures that businesses seeking state contracts are in compliance with the Women’s Economic Security Act and have an approved equal pay certificate approved by the Commissioner of Human Rights. Certificates are required on contract in excess of $500,000 in accordance with Minnesota Statute 363A.44.

Human Rights Certificate

The Minnesota Department of Human Rights (MDHR) ensures that businesses seeking state contracts are in compliance with equal opportunity requirements, and issues certificates of compliance to those businesses that have an affirmative action plan approved by the Commissioner of Human Rights. Certificates are required on contracts in excess of $100,000 in accordance with Minnesota Statute 363A.36. More about Human Rights Certificate.

Indefinite Delivery/Indefinite Quantity (IDIQ)

The type of contract that provides for an indefinite quantity of supplies and/or services whose performance and delivery schedule is determined by placing task orders with the Contractor during a fixed period of time.

Incentives - Early Completion

Early completion incentives are often used to encourage completing a project earlier than the time specified in the contract. Incentives can be used on a variety of projects, but are typically used on projects with high road-user cost or business impacts. Typical candidate project types include:

Urban reconstruction
Interstate and high volume projects with major traffic impacts
A+B Projects
Projects with lengthy detours
Bridge Replacement or Rehabilitation

More about incentives - early completion.

Incentives - No Excuse Bonus (Locked Incentive Date)

A Locked Incentive Date (LID) contract, also known as a “no excuse bonus”, offers contractors an incentive for reaching a project milestone. Unlike traditional incentives, the LID does not allow a contractor to receive a time extension and receive the incentive payment. The LID also requires the contractor to waive all claims if they accept the incentive. More about incentives - no excuse bonus.

Lane Rental

Lane rental charges a rental fee to contractors for closing lanes and shoulders to do construction work. The contract includes a rental fee based on the estimated cost of delay or inconvenience to the road user. Fees cover the time the contractor occupies or obstructs part of the roadway. Like A + B bidding, the amount of total lane rental charges a contractor proposes for a projects can be combined with the cost for the work items to determine the successful bidder. More about lane rental.

Letting

See Bid Letting.

Local Agent

An individual who has authority to execute bonds on behalf of an insurance company.

MnDOT Vendor File

List of vendors registered with MnDOT.

Minnesota Unified Certification Program (MnUCP)

The MnUCP includes MnDOT, the Metropolitan Airports Commission (MAC), the Metropolitan Council and other state and local transportation authorities that are recipients of federal funds for transportation projects.

On-The-Job-Training (OJT) Goals

The Federal Highway Administration OJT policy requires state departments of transportation to establish apprenticeship and training programs targeted to move women, minorities, and disadvantaged persons into journey level positions to ensure that a competent workforce is available to meet highway construction hiring needs and to address the historical under-representation of members of these groups in highway construction skilled crafts. Projects with OJT requirements contain a special provision indicating the number and hours required to this end. More about the MnDOT OJT Program.

Payment / Performance Bond

Bonds furnished in accordance with Minnesota Statutes 574.26 and meeting the terms specified in Minnesota Statutes 574.26 subdivision 2, (1) and (2) which state each bond shall be equal to the Contract amount. The payment bond protects employees, subcontractors and suppliers from non-payment; the performance bond protects the owner from default by the contractor.

Plan Holders List

List of vendors who have purchase plans and proposals for a specific job in the active letting.

Plans

The plans, profiles, typical cross-sections, and Standard Plans and Standard Plates that show the locations, character, dimensions and details of the work.

Post-Letting

The period of time starting after the letting.

Pre-Letting

The period of time prior to letting of a project.

Project Bids File

Electronic proposal file used with Project Bids Software.

Project Bids Software

Software used to prepare an electronic bid to be submitted to Bid Express using a digital ID.

Project Item List - Current and Past Projects

Searchable list of items used for current and past projects.

Proposal

The offer of a bidder on the prescribed proposal form to perform the work and furnish the labor and materials at the bid unit prices.

Proposal Form

The approved form on which the Department requires proposals to be prepared and submitted for the work in accordance with standard specification 1206, “Preparation of Proposals”.

Proposal Guaranty

The security furnished with a proposal to guarantee that the bidder will enter into the contract if the department awards the contract to the bidder. MnDOT requires all proposal guarantees to be in 5% of the bid price. Proposal guarantees can be in the form of a bid bond, cashier’s check or certified check.

Prevailing Wages

Hourly basic rate of pay plus the employer's contribution for health and welfare, vacation, pension and other economic benefits which are required to be paid to workers engaged in the same class of labor in the same geographic area. Both Minnesota and the federal government have prevailing wage determinations. The proposal will contain all Prevailing Wage Determinations that apply to the project.

Responsible Contractor, Minimum Criteria

"Responsible contractor” means a contractor that conforms to the responsibility requirements in the solicitation document for its portion of the work on the project and verifies that it meets the following minimum criteria discussed in Minn. Stat. § 16C.285, Subd. 3.

Six-Month Tentative Schedule

List of projects MnDOT anticipates to let during the next six-month period.

State Project Number (SP)

Number used to identify a MnDOT project. The first two digits identify the county number of the project; the next two digits designate the particular section of road within the county. Multi-county projects generally start with the number “88” for various counties.

Special Provisions

Additions and revisions to the standard specifications and supplemental specifications that cover conditions specific to a contract. More about MnDOT Special Provisions.

Specifications

The Standard Specifications, the Supplemental Specifications, the Special Provisions and any department approved changes to these contract documents.

Standard Specifications for Construction

The current edition of the Minnesota Standard Specifications for Construction book. Standard Specifications are approved for general, repeated use. More about MnDOT Standard Specifications for Construction.

Targeted Group Business (TGB) Program

MnDOT's Targeted Group Business Program provides certified targeted group businesses with increased access to solely state-funded contracting opportunities. The program is designed to significantly increase the number of certified targeted business firms who can bid on MnDOT projects. It identifies women and minority businesses and assists them in the state certification process. More about the TGB Program.

TGB Goal

Any MnDOT, solely state-funded highway construction project should have established TGB small business participation goals. TGB Program specialists evaluate each proposal for state funded MnDOT projects before the project is advertised. The specialists then set TGB small business participation goals. These goals are stated in the TGB Special Provisions, which are included in the proposal.

Vendor

Contractor, sub-contractor or suppliers who is registered to do business with the State of Minnesota.

Veteran-Owned Small Business Program

MnDOT's Veteran-owned Small Business Program provides verified veteran-owned small businesses with increased access to solely state-funded contracting opportunities. The program is designed to significantly increase the number of verified veteran-owned small business firms who can bid on MnDOT projects. It identifies women and minority businesses and assists them in the state certification process. More about the Veteran-owned Small Business Program.

Vet Goal

Any MnDOT, solely state-funded highway construction project should have established veteran-owned small business participation goals. Veterans Program specialists evaluate each proposal for state funded MnDOT projects before the project is advertised. The specialists then set veteran-owned small business participation goals. These goals are stated in the Veteran-Owned Small Business Special Provisions, which are included in the proposal.