AGO 1996-113.

Case DateJanuary 29, 1996
CourtAlabama
Alabama Attorney General Opinions 1996. AGO 1996-113. 1996-113January 29, 1996Honorable Ron Jones Commissioner State of Alabama Department of Corrections Montgomery, Alabama 36130 Department of Corrections - Competitive Bid Law - Private Enterprise - Prisons and Prisoners - Public Works Consultant's services for preparation of request for proposals may be procured without competitive bidding in accordance with Code of Alabama 1975, _ 41-16-21(a). Subject to competitive bidding, the Department of Corrections may contract for the private operation of a state prison. A contract for the completion of construction of the Brent Prison may proceed without the need for a formalized process of competitive bidding due to the prevailing extraordinary conditions.Dear Dr. Jones: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION 1 May the Department procure the services of a consultant to prepare a request for proposals for submission of a build-operate-transfer proposal (or some variation thereof) without competitive bidding? FACTS AND ANALYSIS In 1994, the Alabama Corrections Institution Finance Authority ("ACIFA") created pursuant to __ 14-2-1, et seq., Code of Alabama 1975, as last amended, issued $25 million worth of bonds to finance projects including one in Bibb County. That project was a medium security prison to be constructed on a site furnished by the City of Brent, the City of Centreville, and Bibb County. After inviting bids, the contract was awarded to the lowest bidder of five contractors submitting bids, Ray Sumlin d/b/a Ray Sumlin Construction Company and Ray Sumlin Construction Company, Inc. (collectively "Sumlin"). The contract price was $17,070,000. Sumlin furnished a performance bond as required with ACIFA as obligee and Hartford Fire Insurance Company ("Hartford") as surety. When the project was approximately 40% complete, Sumlin was found to be in default, unable to continue, and, on June 14, 1995, Hartford was called upon to perform its obligations under the performance bond. Negotiations were undertaken between Hartford and the Department of Corrections ("Department"), the agent of ACIFA for administration of the contract. While these negotiations were under way, it was learned that the City of Brent and the other localities could not fund the construction of...

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