Section R17-3-201. General

A.      Definitions.

1.        “Application” means a request for contractor prequalifi- cation, consisting of an application booklet available from the Department’s office of Contracts and Specifica- tions, and a financial statement prepared according to the requirements of this subsection and R17-3-202.

2.        “Board” means the Contractor Prequalification Board.

3.        “Compiled financial statement” means a financial state- ment prepared for form, appropriateness, and arithmetic accuracy. It does not express an opinion or provide any assurance regarding the financial statement.

4.        “Contractor” means the individual, partnership, firm, cor- poration, joint venture, or any combination acceptable to the Department, that seeks to contract with the Depart- ment for constructing or reconstructing state transporta- tion facilities, unless the context requires otherwise.

5.        “Contractor prequalification” means the Department’s process of review and evaluation of a contractor’s work history and current financial condition before a contractor is allowed to submit a proposal for constructing or recon- structing state transportation facilities.

6.        “Department” means the Arizona Department of Trans- portation.

7.        “Examined financial statement” means a financial state- ment that includes the amounts and disclosures in the firm’s financial statement, an assessment of the account- ing principles used and the significant estimates made by management, and an evaluation of the overall financial statement presentation.

8.        “Financial statement” means a financial report prepared according to generally accepted accounting principles by an independent certified public accountant or an indepen- dent public accountant. The financial statement includes a cover letter on the accountant’s letterhead, a balance sheet, a statement of cash flows, an income statement, and all notes and appropriate supporting schedules.

9.        “Joint venture” means the combination of two or more contractors for the purpose of submitting a proposal to the Department and performing a contract for constructing or reconstructing state transportation facilities.

10.     “Prequalification amount” means the dollar limitation of each contract, based on the Department’s estimate of con- tract value, for which a contractor may submit a proposal to the Department for constructing or reconstructing state transportation facilities.

11.     “Reviewed financial statement” means a financial state- ment that includes an inquiry of company personnel, and a review of the analytical procedures applied to the finan- cial data. It does not express an opinion regarding the financial statement taken as a whole.

12.     “State Engineer” has the meaning in A.R.S. § 28-6901(3).

B.       Contractor Prequalification Board.

1.        The State Engineer shall appoint the Board to consider and decide on applications for contractor prequalifica- tion.

2.        The Board will be comprised of three Department employees, one of whom shall be a professional engineer, registered by the Arizona Board of Technical Registra- tion, and one a certified or licensed public accountant.

3.        The Board’s authority to determine prequalification does not limit the Department’s ability to establish additional criteria for contracts.

Historical Note

Adopted effective March 3, 1987 (Supp. 87-1). Amended by final rulemaking at 8 A.A.R. 79, effective December 10, 2001 (Supp. 01-4).