Section 17.45.306. Bid deposit.

	(a)  The department may require that each bidder submit with the bidder's sealed bid a deposit in an amount and form the department determines appropriate to ensure that the successful bidder will execute the lease, permit, or concession. The department will specify in the bid documents, the minimum deposit amount, the required form of deposit, and how the deposit will be applied. A required deposit amount may not exceed the greater of   
		(1) the department's estimate of one year's rents and fees; or  
		(2) the total rents and fees, as calculated by the bidder, that would be payable by the bidder for the first year of the lease, permit, or concession in the event the lease, permit, or concession were awarded to that bidder, plus twenty-five percent of any bonus bid by the bidder.  
	(b)  If the successful bidder does not within the required time sign the lease, permit, concession, or any other required document or perform any other requirement contained in the bid documents, the bidder forfeits the bid deposit as liquidated damages for the lost benefit to and related additional costs incurred by the department. However, the bidder does not forfeit the deposit if the department finds that the bidder's failure is excused by extraordinary circumstances beyond the bidder's control.   
	(c)  Subject to (d) of this section, the department will return the deposit of each unsuccessful bidder only after the department has awarded and executed the lease, permit, or concession. The department will return all bid deposits if the department rejects all bids or cancels the invitation to bid.  
	(d)  After bid opening and before award and execution of the lease, permit, or concession, the department will return the bid deposit of a bidder who is not the apparent high bidder if the bidder submits to the department a written withdrawal of the bidder's bid from further consideration and the department determines that withdrawal of the bid and return of the deposit prior to award and execution of the lease, permit, or concession is in the best interest of the state.  
	(e)  Unless the department determines otherwise in writing, withdrawal of a bid and return of a deposit under (d) of this section is presumed in the best interest of the state if those actions are requested to enable the bidder to bid or propose on a different lease, permit, or concession while the department is holding the deposit that the bidder has requested be returned. In that case, the withdrawal becomes effective upon the department's receipt of the bidder's new bid or proposal, and the department will apply the deposit that the person submitted in support of the withdrawn bid toward the deposit requirement for the new bid or proposal.  

Authorities

02.15.020;02.15.060;02.15.070;02.15.090

Notes

Reference

17 AAC 45.309

Authority

AS 02.15.020 AS 02.15.060 AS 02.15.070 AS 02.15.090

History

Eff. 3/28/2002, Register 161; am 3/22/2008, Register 185