UST Tier II contract

South Carolina Department of Health
and Environmental Control

September 15, 1999
Revised March 16, 2010

SC Department of Health and Environmental Control (SC DHEC)

ENVIRONMENTAL REMEDIATION PROCUREMENT PROCEDURES

Environmental Remediation Projects

Definitions
Definitions of Terms used in these procedures:

1. Assessment means the process of collecting environmental data for the purpose of
determining the extent, severity and potential for migration of chemicals of concern, and may
include the interpretation of data and/or the determination and evaluation of potential risks
posed by said chemicals of concern to human health and/or the environment.

2. Corrective Action means those activities conducted to reduce or eliminate concentrations
of chemicals of concern. These activities may include, but are not limited to removal of free
product or contaminated soil; vapor extraction; in-situ and ex-situ ground-water treatment;
installation of caps, slurry walls or liners; bioremediation; and intrinsic processes.

3. Defined Scope of Work means any assessment or corrective actions where the
requirements and specifications are outlined.

4, Environmental Remediation means any activity necessary to assess and/or perform
corrective action on soils, ground water and surface waters affected by chemicals of concern.

Purpose: These procedures are hereby established to effectively and efficiently procure services for
environmental remediation projects.

Scope: These procedures apply to the direct procurement of environmental remediation services by
DHEC, as authorized by the federal Resource Conservation & Recovery Act, (RCRA), the State
Underground Petroleum Environmental Response Bank (SUPERB) Act, and the South Carolina
Hazardous Waste Management Act (SCHWMA), Under these authorities, DHEC is authorized to
procure environmental remediation services to investigate and cleanup releases to the environment.
In the SUPERB program, UST site owners or operators have the option to utilize the services
procured directly by DHEC or to obtain services independently. These procedures do not affect
payment from the SUPERB account to UST owners or operators or contractors retained by UST
owners or operators.

For any amendments to an environmental remediation project, DHEC shall negotiate a change order
with the successful offeror. A change order modifies one or more of the following: scope, time, or
cost. All documentation regarding the solicitations, including change orders will be maintained in
the procurement file.

I. PROCEDURES FOR PROJECTS WHERE THE SCOPE OF WORK IS DEFINED.

Competitive solicitations shall apply to projects with defined scope, where the requirements and
specifications are outlined, and where DHEC determines that the competitive solicitation method is
the most practicable or advantageous to the State. DHEC shall determine when the activities are
sufficiently defined. These projects normally fall within the Underground Storage Tank and
Drycleaning programs where the source and nature of the contamination are known. DHEC shall
award contracts for environmental remediation services based on competitive solicitations for small
purchases (up to $50,000.00), and for solicitations greater than $50,000.00, DHEC shall use the
competitive sealed bidding, multi-step competitive sealed bidding, or competitive sealed proposal
process. For contracts that have been established using the competitive solicitation process,
additional projects similar in scope may be added as long as the contract is still in effect and the
vendor agrees to the additional work at the prices quoted in the original contract. Separate vendor
lists for underground storage tank remediation and drycleaning remediation may be retained given
there are certification requirements for each program that are established by statute and/or regulation.

A. SMALL PURCHASES (up to $50,000.00). These procedures apply to the procurement of
environmental remediation services not predicted to exceed $50,000.00. These procurements shall
not be artificially divided so as to constitute a small purchase under this section. In estimating the
total dollar amount to determine one of the bidding categories, the amount shall include any
shipping, handling, packaging and installation charges, excluding S.C. Sales Tax. Any award made
under the Small Purchases process is not grievable under Section IV of these procedures. Once a
contract is established using one of the four Small Purchase category procedures outlined below,
additional projects similar in scope can be added as long as the contract is still in effect and the

vendor agrees to the additional work at the prices quoted in the original contract and the total dollar
amount for that category is not exceeded.

Competition requirements for categories-small purchases:

1. Purchases not in excess of $2,500. One quote (verbal or written) and a
statement that the price is Fair and
Reasonable.

2. Purchases from $2,501 to $10,000. Written solicitations sent to at least 3
qualified offerors.

3. Purchases from $10,001 to $50,000. Written solicitations advertised at least
once in SCBO.

B. COMPETITIVE SEALED BIDDING. Contracts predicted to exceed $50,000.00 with
defined scope where the requirements and specifications are outlined may be awarded by the
competitive sealed bidding method. A written single invitation for bid may be issued for projects
that can be grouped together and competitively bid. The invitation for bid should be issued in an
efficient and economical manner and advertised in the South Carolina Business Opportunities
(SCBO) publication. The invitation for bid should include the specifications and the requirements
and all contractual terms and conditions applicable to the procurement. The invitation for bid should
be processed in accordance with the following procedures.

(1) Notice. Adequate notice of the invitation for bid shall be given to the listed sources with
a reasonable time prior to the date set forth therein for the opening of bids.

(2) Receipt and Safeguarding of Bids. All bids (including modifications)

received prior to the time of opening shall be kept secure and unopened in a locked box or safe.

(3) Bid Opening. Bids shall be opened publicly in the presence of one or more witnesses at
the time and place designated in the invitation for bids. The amount of each bid, and such other
relevant information as may be specified by regulation, together with the name of each bidder, shall
be tabulated. The tabulation shall be made open to the public for inspection at the time.

(4) Bid Acceptance and Bid Evaluation. Bids shall be accepted unconditionally without
alteration or correction, except as otherwise authorized in these procedures. The invitation for bids
shall set forth the evaluation process to be used.

(5) Correction, Withdrawal of Bids, or Cancellation of Awards. Correction or
withdrawal of inadvertently erroneous bids before bid opening, withdrawal of inadvertently
erroneous bids after award, or cancellation and re-award of awards or contracts after award but prior
to performance, may be permitted in accordance with these procedures. After bid opening, no
changes in bid prices or other provisions of bid prejudicial to the best interest of the State or fair
competition shall be permitted. To maintain the integrity of the competitive sealed bidding system, a
bidder shall not be permitted to correct a bid mistake after bid opening that would cause such bidder
to have the low bid unless the mistake in the judgment of the procurement officer is clearly evident
from examining the bid document; for example, extension of unit prices or errors in addition. All
decisions to permit the correction or withdrawal of bids, or to cancel awards, or contracts after award

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but prior to performance shall be supported by a written determination of appropriateness made by
the DHEC Director of Procurement Services. Each written determination must document that fact
that the bidder' s or offeror' s mistake is clearly evident and that correction of said error shall not
affect actual unit rates included in the bid.

(6) Tie Bids. If two or more bidders are tied in price while otherwise meeting all of the
required conditions, awards are determined as follows:

(a) If there is a South Carolina firm tied with an out-of-state firm, the award must be
made automatically to the South Carolina firm.

(b) Tie bids involving South Carolina firms must be resolved in favor of the South
Carolina firm located in the same taxing jurisdiction as the project location.

(c) Tie bids involving South Carolina firms in the same taxing jurisdiction as the
project location must be resolved by the flip of a coin in the office of the DHEC
Director of Procurement Services witnessed by all interested parties. The same
procedures shall apply where both firms are outside the taxing jurisdiction of the
project location.

(7) Award. Notice of award of a contract to the lowest responsive and responsible bidder
whose bid meets the requirements set forth in the invitation for bids shall be given by posting such
notice at a location specified in the invitation for bids. The invitation for bids and the posted notice
must contain a statement of a bidder' s right for grievance outlined in Section IV of these procedures
and the date and location of posting must be announced at the bid opening. The notice will be posted
at the following web address: http://www.procurement.sc.gov.

(8) Negotiations After Unsuccessful Competitive Bidding. When bids that are received
pursuant to an invitation for bids under Section II. A of these procedures are unreasonable, or the low
bid exceeds available funds as certified by the appropriate fiscal officer, and it is determined in
writing by the DHEC Director of Procurement Services, or his designee, that time or other
circumstances may not permit the delay required to resolicit competitive sealed bids, a contract may
be negotiated pursuant to this section, provided that:

(a) each responsible bidder who submitted a bid under the original solicitation is
notified of the determination and is given reasonable opportunity to negotiate;

(b) the negotiated price is lower than the lowest rejected bid by any responsible and
responsive bidder under the original solicitation;

(c) the negotiated price is the lowest negotiated price offered by any responsible and
responsive offeror.

C. REQUEST FOR QUALIFICATIONS

(1) Condition for Use. When it is considered initially impractical to prepare a purchase
description to support an award based on price, a request for qualifications may be issued requesting
submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose
offers have been qualified under the criteria set forth in the first solicitation.

(2) Request for Qualifications. Prior to soliciting bids, the authorized DHEC procurement
officer may issue a request for qualifications from prospective offerors. Such a request shall contain,
at a minimum, the general scope of work, a description of the environmental remediation equipment,
the processes or services to be solicited by the competitive sealed bid, the deadline for submitting

information and how prospective offerors may apply for consideration. The request shall require
information only on qualifications, experience, and ability to perform the requirements of the
contract.

(3) Public Notice. Adequate public notice of the request for qualifications shall be given
with a reasonable time period prior to the date established for the submission of the required
information. Such notice shall include the advertisement in the South Carolina Business
Opportunities (SCBO) publication under the category of Environmental Remediation.

(4) Selection and Ranking. After receipt of the responses to the request for qualifications
from prospective offerors, the perspective offerors shall be ranked from most qualified on the basis
of the information provided. Bids shall then be solicited from at least the top two prospective
offerors by means of a competitive sealed bid. The failure of a prospective offeror to be selected
normally is not grounds for grievance under Section IV of these procedures. However, if a letter of
concern is submitted, only information contained in the bid and response packages will be
considered.

(5) The steps outlined in Section I. B., Competitive Sealed Bidding procedures, Paragraphs
(2) through (8) apply.

D. COMPETITIVE SEALED PROPOSALS
The request for qualifications procedures described above or the procedures outlined below
may be used with the competitive sealed proposal method.

(1) Conditions for Use. When the DHEC Chief of Staff or his designee determines in
writing that the use of the competitive sealed bidding process outlined in B and C of these
procedures alone are either not practicable or not advantageous to the State, a contract may be
entered into by competitive sealed proposal subject to the provisions of these procedures. Proposals
shall be advertised in SCBO.

(2) Evaluation Factors. The request for proposals shall state the relative importance of the
factors to be considered in evaluating proposals but shall not require a numerical wei ighting for each
factor. Price may, but need not be an initial evaluation factor.

(3) Discussion with Responsive Offerors. Discussions may be conducted with prospective
offerors who submit proposals for the purpose of clarification to assure full understanding of the
requirements of the request for proposals. All offerors, whose proposals, in DHEC' s sole judgment,
needed clarification shall be accorded such an opportunity.

(4) Selection and Ranking. Proposals shall be evaluated using only the criteria stated in the
request for proposals and adhering to any weighting that has been previously assigned. Once the
evaluation is complete, all responsive offerors shall be ranked from the most advantageous to the
least advantageous to the State, considering only the evaluation factors stated in the request for
proposals. Ifprice is an initial evaluation factor, awards shall be made in accordance with (5) below.
Ifprice is not an initial evaluation factor, negotiations shall be conducted with the top ranked offeror
for the performance of the contract at a price which, in the sole opinion of DHEC, is fair and
reasonable to the State. Should the procurement official be unable to negotiate a contract at a price
which, in the sole opinion of DHEC, is fair and reasonable to the State, negotiations shall be
formally terminated with the top ranked responsive offeror and negotiation commenced with the
second most advantageous responsive offeror, and then the third and so on until a satisfactory

contract has been negotiated. In conducting negotiations, there must be no disclosure of any
information derived from proposals submitted by competing offerors.

(5) Award. Award must be made to the responsive offeror whose proposal is determined in
writing to be the most advantageous to the State, taking into consideration price and the evaluation
factors set forth in the request for proposals, unless DHEC determines to use one of the options
provided in (6) below. The contract file shall contain the basis on which the award is made and must
be sufficient to satisfy an external audit. The notice will be posted at the following web address:
http://www.scdhec.net/procurement.

(6) Other. If, after following the procedures set forth in (4) and (5) above, a contract is not
able to be negotiated, the scope of the request for proposals may be changed in an effort to reduce the
cost a fair and reasonable amount, and all responsive offerors must be allowed to submit their best
and final offers. Where the price was an initial evaluation factor, the DHEC procurement official,
may in his sole discretion, proceed in any of the following indicated below:

(a) negotiate price with the highest scoring offeror. If a satisfactory price cannot be
agreed upon, price negotiations may be conducted, in the sole discretion of DHEC with the second,
and then the third, and so on, ranked offerors to such level of ranking as determined by DHEC in its
sole discretion; or

(b) negotiate with the highest-ranking offeror on matters affecting the scope of the
contract, so long as the overall nature of intent of the contract is not changed. If a satisfactory
contract cannot be negotiated with the highest ranking offeror, negotiations may be conducted, in the
sole discretion of DHEC, with the second, and then the third, and so on, to such level of ranking as
determined by DHEC in its sole discretion; or

(c) change the scope of the request for proposals and give all responsive offerors an
opportunity to submit their best and final offers.

I. PROCEDURES FOR PROJECTS WHERE THE SCOPE OF WORK IS NOT
DEFINED

When the project is of such complexity that the scope of the environmental remediation activity is
difficult to or not defined, then DHEC shall use the following procedures. These involve projects
where the source and nature of the contamination is not known or easily determined, which typically
would be encountered at sites funded by the HWCF.

A. Selection Committee. DHEC shall establish its own environmental remediation selection
committee, hereinafter referred to as the Complex Projects Selection Committee, which shall be
composed of those individuals whom the Assistant Bureau Chief determines to be qualified to make
an informed decision as to the most competent and qualified firm for the proposed services. The
Director of Procurement Services or his qualified and responsible designee shall sit as a permanent
member of the Complex Projects Selection Committee for the purpose of coordinating and
accounting for the committee's work. To assist the committee in the selection of firms to be
employed for significant or highly technical projects and to facilitate prompt selections, the
committee may invite the State Engineer or his designee to sit as a nonvoting member of the
committee.

B. Advertisement of Project Description. The selection committee shall be responsible for (a)
developing a description of the proposed contract, (b) enumerating all required environmental
remediation activities, and (c) preparing a formal invitation to firms for submission of information.
The invitation shall include, but not be limited to, the project title, the general scope of work, and a
description of the corrective action required for the project, the submission deadline, and how
interested firms may apply for consideration. The number of persons or firms to be selected shall be
specified in the invitation. The invitation shall be formally advertised in the South Carolina
Business Opportunities (SCBO) publication under the category of Environmental Remediation.

C. Response to Invitation. The date for submission of information from interested persons or

firms in response to an invitation shall be not less than fifteen days after publication of the invitation.

Interested environmental remediation contractors shall be required to respond to the invitation with
the submission of a current and accurate Federal Standard Form 254 and 255 or such similar
information which DHEC may require (including Federal Standard Form 330 in lieu of 254 and
255).

D. Interviews and Interested Firms. Following receipt of information from all interested
persons and firms, the selection committee shall hold interviews with at least five persons or firms
who have responded to the committee' s advertisement and who are deemed most qualified on the
basis of information available prior to the interviews. If fewer than five firms have responded to the
advertisement, the committee shall hold interviews with those that did respond. The committee' s
determination as to who will be interviewed shall be in writing and shall be based upon its review
and evaluation of all submitted materials. The written report of the committee shall specifically list
the names of all persons and firms that responded to the advertisement and enumerate the criteria the
committee used in selecting those to be interviewed. The purpose of the interview shall be to
provide such further information as may be required by the committee to fully acquaint it with the
relative qualifications of the several interested firms.

E. Selection of the Best Qualified. The selection committee shall evaluate each of the persons or
firms interviewed in view of their:

(1) past performance;

(2) the ability of professional personnel;

(3) willingness to meet time and budget requirements;
(4) location;

(5) recent, current, and projected workloads;

(6) creativity and insight related to the project; and
(7) related experience on similar projects.

Based upon these evaluation criteria, the committee shall select the persons or firms who, in its
judgment, are the best qualified. The list of persons or firms will be used by DHEC depending on
the requirements of the project. The committee' s report of the chosen persons or firms shall be in
writing and shall include data substantiating its determinations. Depending on the circumstance,
DHEC will consider costs in the evaluation of all offerors.

F. Notice of Selection. When DHEC determines that the selection report is final, written
notification of the selection shall be immediately sent to all those who responded to the selection
committee' s invitation to submit information. The list of selected sources shall be effective for a
period of one year. No later than thirty (30) days prior to the expiration date of the list, the selection

committee may exercise an option either to cancel the list and issue a new solicitation or extend the
term of the list for additional one year periods up to a total of five years. When appropriate. DHEC
reserves the right to solicit for additional firms at any time during the effective period of the list of
selected sources. When DHEC determines there is a need to add additional firms to the list of
offerors, DHEC shall issue a new solicitation using the same selection criteria and interview process
established when the original list was developed. Those firms on the original list need not respond
since they have already been through the selection process. DHEC shall maintain both solicitations
as separate procurements. Also, when appropriate, DHEC reserves the right to delete offerors from
the list of selected sources for cause. Whenever a deletion is made, the selection committee may
select the next best-qualified offeror from the remaining offerors on the original list of selected
sources. The failure of a prospective offeror to be selected normally is not grounds for grievance
under Section IV of these procedures. However, ifa letter of concern is submitted, only information
contained in the bid and response packages will be considered.

G, Negotiations with a Qualified Offeror. If the scope of a project is of such complexity, of
immediate nature, or of such an unknown quantity that the use of the other procurement
methods is either not practicable or not advantageous to the State, then DHEC shall negotiate
with the best-qualified person or firm. DHEC reserves the right to select the best qualified
person or firm depending on the general scope of the project. Where "best qualified" is the
primary factor and cost is secondary, DHEC shall negotiate the cost with the best-qualified
person or firm. If no agreement is reached, negotiations shall commence in the same manner
with the next best-qualified person or firm until a satisfactory contract is negotiated. If the
nature of the project is such that the "best qualified" is not the primary factor, or is unable to
be determined, but price is the primary factor, then DHEC may request pricing from all
qualified persons or firms on the list for the purpose of negotiating a contract. Ifno agreement
is reached with one of the original listed offerors, the selection committee may select additional
persons for firms from the remaining pool of interviewees. If unsuccessful with the remaining
pool of interviewees, the selection committee may contact additional firms for interviews using
the same selection criteria established when the original list was developed. The successful
interviewees will be added to the list.

Hil. OTHER PROCUREMENT METHODS FOR USE WITH ENVIRONMENTAL
REMEDIATION PROJECTS

A. Sole Source Procurement: A contract for an environmental remediation project may be
awarded without competition when the DHEC Chief of Staff, or his designee, determines in writing
that there is only one source for the required project. Written documentation must include the
determination and the basis for the proposed sole source procurement and why no other vendor is
suitable. In cases of reasonable doubt, competition shall be solicited. All sole source procurements
will be reported quarterly to the Materials Management Office under the Office of General Services,
which is directed by the Budget and Control Board.

B. Emergency Procurement. The DHEC Chief of Staff may approve emergency procurements
for an environmental remediation project only when there exists an immediate threat to public health,
welfare, critical economy and efficiency, or safety under emergency conditions, provided that such

emergency procurements shall be made with as much competition as is practicable under the
circumstances. The Program Area has the authority to determine the course of action to proceed in
an emergency situation. Within three working days, the Program Area will provide DHEC
Procurement Services with a written determination of the basis for the emergency and the selection
of the particular contractor. All documentation, including the DHEC Chief of Staff's approval, shall
be maintained in the purchasing file. All emergency procurements will also be reported quarterly to
the Materials Management Office.

TV. GRIEVANCE PROCEDURES FOR ENVIRONMENTAL REMEDIATION
SOLICITATIONS DURING THE SOLICITATION PHASE

The following grievance procedures are provided.

A. Solicitation of a Contract. Subject to conditions set forth in these procedures, any prospective
bidder who is aggrieved in connection with the solicitation of a contract for environmental
remediation shall submit a letter of concern to the DHEC procurement officer responsible for the
solicitation within fifteen calendar days of the date of issuance of the Invitation for Sealed Bids or
the Request for Proposals, whichever is applicable, or any amendment thereto if the amendment is at
issue. A grievance shall be in writing and shall set forth the grounds of the grievance and the relief
requested with enough particularity to give notice of the issues to be decided. A fax of the letter,
followed by a post marked signed original letter is acceptable. After the Director of Procurement
Services, or his designee, has been notified, DHEC may attempt to informally resolve the dispute. If
the dispute cannot be resolved, the Director of Procurement Services will determine whether the
dispute merits altering the solicitation and will provide a written response within five working days
of the receipt of the letter.

B. Award of a Contract. Any actual bidder who is aggrieved in connection with the award of a
contract shall submit a letter of concern to the DHEC procurement officer responsible for the
solicitation within seven calendar days of the award publication date. Processes are the same as
above.

C. Secondary Review and Decision. If the bidder is not satisfied with the decision rendered by
the Director of Procurement Services, the bidder shall notify the Director of the Bureau of Business
Management in writing within ten calendar days of the date of the written response from the Director
of Procurement Services. The Director of the Bureau of Business Management will conduct a
review and provide a written response within five working days. The decision of the Director of the
Bureau of Business Management shall be final and conclusive. If the aggrieved is not satisfied with
the decision rendered in A or B above and this section, and wishes to pursue legal action, the
aggrieved, or his legal representative, shall notify in writing the DHEC Chief of Staff within ten
calendar days of the date of the written response from the Director of the Bureau of Business
Management.

D. Notice of Decision. A copy of all decisions under this section shall be mailed or otherwise
furnished immediately to the aggrieved party and any other party intervening.

E. Stay of Procurement during Grievances. In the event of a timely grievance under
subsections A. or B. above, DHEC shall not proceed further with the solicitation or award of the
contract until a decision is rendered by the Director of Procurement Services. However, the
solicitation or award of an aggrieved contract will not be stayed if the Director of Procurement
Services makes a written determination that the solicitation or award of the contract without delay is
necessary to protect the best interests of the State.

Vv. GRIEVANCE PROCEDURES FOR CONTRACT DISPUTES AND BREACH OF
CONTRACT CONTROVERSIES REGARDING ENVIRONMENTAL REMEDIATION
PROJECTS DURING THE CONTRACT IMPLEMENTATION PHASE

A. Applicability. These procedures apply to controversies between DHEC, the site owner or
operator, and/or a contractor or subcontractor when the subcontractor is the real party in interest,
which arise under or by virtue of a contract for environmental remediation including, but not limited
to controversies based upon breach of contract, misrepresentation, mistake, or other cause for
contract modification or recension. These procedures constitute the exclusive means of resolving a
controversy between DHEC, the site owner or operator, and/or a contractor or subcontractor
concerning a contract solicited and awarded under the provisions of these procedures.

B. Complaint against DHEC Program Management. Site owner or operator, and/or a
contractor or subcontractor when the subcontractor is the real party in interest has 30 days after the
discovery of a contract dispute or controversy to notify in writing the DHEC Project Manager or the
Director of the respective program within the Bureau of Land and Waste Management of the
identification of the dispute or controversy. The Bureau of Land and Waste Management has 45
days to review and attempt to informally resolve the dispute or controversy. If the contract
controversy cannot be mutually resolved, the Assistant Bureau Chief of the Bureau of Land and
Waste Management will provide a written, informal determination to the site owner or operator,
and/or a contractor or subcontractor when the subcontractor is the real party in interest.

C. Informal Review and Decision. If the complainant is not satisfied with the decision made by
the Assistant Bureau Chief, the complainant should address the issues in writing, within 15 calendar
days of the date of the letter, to the Director of Procurement Services for resolution. The request for
resolution to the Director of Procurement Services must be in writing and set forth the general nature
of the controversy and the relief requested with enough particularity to give notice of the issues to be
decided.

D. Duty and Authority to Attempt to Settle Contract Controversies - Director of
Procurement Services. The Director of Procurement Services will provide a written
acknowledgment to the complainant and the Assistant Bureau Chief of the Bureau of Land and
Waste Management within 5 calendar days of the receipt of the complaint. The Director of
Procurement Services, or his representative, shall attempt to mediate a settlement by mutual
agreement by the two parties. Ifa mediation agreement is not approved by both of the complainants
and the Assistant Bureau Chief of the Bureau of Land and Waste Management, the Director of

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