TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE

Chapter 3000. TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE TITLE 190 Northern Marianas Technical Institute Chapter 190-3000 Procurement Rules and Regulations CHAPTER 190-3000 PROCUREMENT RULES AND REGULATIONS Part 001 General Provisions Part 200 Source Selection and Subpart A General Contract Formation § 190-3000-001 Purpose Subpart A Source Selection § 190-3000-005 Authority § 190-3000-201 Methods of Source Selection § 190-3000-010 Supplementary General § 190-3000-205 Competitive Sealed Bidding Principles of Law Applicable § 190-3000-210 Small Purchases § 190-3000-015 Requirement of Good Faith § 190-3000-215 Sole Source Procurement § 190-3000-020 Application of Regulations § 190-3000-220 Emergency Procurement § 190-3000-025 Severability § 190-3000-225 Competitive Sealed § 190-3000-030 Validity of Contract § 190-3000-230 Competitive Selection § 190-3000-035 Remedy Against Employee Subpart B Cancellation of Invitation for Subpart B Definitions Bids or Request for Proposals § 190-3000-040 Definition § 190-3000-235 Cancellation Subpart C Public Access Subpart C Qualifications and Duties § 190-3000-045 Public Access to § 190-3000-240 Responsible of Bidders and Procurement Information Duties § 190-3000-050 Use of Electronic Media § 190-3000-245 Pre-qualification of Contractors Part 100 Procurement Organization Subpart A Procurement Officer Subpart D Types of Contracts § 190-3000-101 Creation of Procurement and § 190-3000-250 Types of Contracts Supply Division § 190-3000-251 Change Orders § 190-3000-105 Procurement Officer § 190-3000-110 Duties of the Officer Subpart E Inspection and Audit § 190-3000-115 Contract Oversight § 190-3000-120 Split Contracts § 190-3000-255 Right to Inspect Place of § 190-3000-125 Acceptance of Gratuities by Business Procurement Officer and Supply Division § 190-3000-260 Right to Audit Records Employees Subpart F Reports and Records Subpart B Procurement Function § 190-3000-265 Report of Anti-competitive § 190-3000-130 Procurement Services or Deceptive Practices § 190-3000-135 Centralized Procurement of § 190-3000-270 Retention of Procurement Supplies Records © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 1 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE Part 300 Procurement of Construction and § 190-3000-510 General Standards Architect-Engineer Services § 190-3000-515 Employee Disclosure § 190-3000-301 Construction Procurement Requirements § 190-3000-305 Architect-Engineer Services § 190-3000-520 Employee Conflict of § 190-3000-310 Two-Phase Design-Build Interest Selection § 190-3000-525 Gratuities and Kickbacks § 190-3000-530 Prohibition Against Part 400 Protests and Disputes Contingent Fees § 190-3000-401 Protests to the Chief § 190-3000-535 Contract Clauses Executive Officer Education’s Decisions to § 190-3000-540 Restrictions on Employment the Board of Present and Former Employees § 190-3000-410 Remedies § 190-3000-545 Use of Confidential § 190-3000-415 Effective Date Information § 190-3000-420 Disputes § 190-3000-550 Collusion by Bidders § 190-3000-425 Appeal Committee § 190-30000-555 Penalties § 190-3000-560 Authority to Debar of Part 500 Ethics in Public Contracting Suspend § 190-3000-501 Definitions of Terms Part 600 Miscellaneous Subpart A Standards of Conduct § 190-3000-601 Severability § 190-3000-505 Policy Subchapter Authority: 3 CMC § 12142(d) Subchapter History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 001 - General Provisions Subpart A - General § 190- 3000-001 Purpose (a) Interpretation. The regulations in this chapter shall be construed and applied to promote their underlying purposes and policies. (b) Purposes and Policies. The underlying purposes and policies of the regulations in this chapter are: (1) To provide for public confidence in the procedures followed in public procurement; (2) To insure the fair and equitable treatment of all persons who deal with the procurement system of the Northern Marianas Technical Institute; (3) To provide increased economy in Northern Marianas Technical Institute procurement activities and to maximize to the fullest extent practicable the purchasing value of public funds; (4) To foster effective broad-based competition within the free enterprise system; and (5) To provide safeguards for the maintenance of a procurement system of quality and © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 2 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE integrity. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-005 Authority The regulations in this chapter are promulgated under the authority of PL 20-92 which make the Board of Trustees accountable and the Chief Executive Officer responsible for procurement and supply in Northern Marianas Technical Institute. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-010 Supplementary General Principles of Law Applicable Unless displaced by the particular provisions of the regulations in this chapter, the principles of law and equity including, but not limited to, the Uniform Commercial Code of the Commonwealth, and common law of fraud, conflicts of interest, waste, false pretenses, and public purpose shall supplement these regulations. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-015 Requirement of Good Faith The regulations in this chapter require all parties, including Northern Marianas Technical Institute employees and contractors, involved in the negotiation, bidding, performance or administration of the Northern Marianas Technical Institute contracts to act in good faith. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-020 Application of Regulations Except as otherwise specified by law, the regulations in this chapter apply to every expenditure of Northern Marianas Technical Institute funds irrespective of source, including federal assistance monies and Covenant funds, which are not subject to federal procurement requirements. These regulations do not apply to contracts between the government and its political subdivisions or other governments. Nothing in these regulations shall be construed to prevent any governmental body or political subdivision from complying with the terms and conditions of any grant, cooperative agreement or memoranda of understanding. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-025 Severability If any provision of the regulations in this chapter or any application thereof to any person or © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 3 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE circumstance is held invalid, such invalidity shall not affect other provisions or application of these regulations which can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are declared to be severable. Modified, 1 CMC § 3806(g). History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-030 Validity of Contract No Northern Marianas Technical Institute contract covered by the regulations in this chapter shall be valid unless it complies with these regulations. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-035 Remedy Against Employee Any procurement action of an employee of the Northern Marianas Technical Institute in violation of the regulations in this chapter is an action outside the scope of his or her employment. The Northern Marianas Technical Institute will seek to have any liability asserted against it by a contractor which directly results from these improper acts to be determined judicially to be the individual liability of the employee who committed the wrongful act. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart B - Definitions § 190-3000-040 Definitions As used in this chapter, unless the context otherwise requires, the following meanings apply: (a) “Legal counsel” means an assistant attorney general designated by the Attorney General to serve as counsel for the Northern Marianas Technical Institute or a private attorney hired by the Board of Trustees with the consent of the Attorney General. (b) “Board of Trustees” means the Board of Trustees of the Northern Marianas Technical Institute. (c) “Chief Executive Officer” means the executive officer appointed by the Board of Trustees to administer the Northern Marianas Technical Institute who has full charge and control of the administration and business affairs of the Northern Marianas Technical Institute. (d) “Construction” means the process of building, altering, repairing, improving or demolishing a public structure or building or public improvements commonly known as “capital © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 4 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE improvements.” It does not include the routine maintenance of existing structures, buildings, or public real property. (e) “Contract” means all types of agreements, regardless of what they may be called for the procurement of supplies, services or construction. (f) “Cost-reimbursement contract” means a contract under which a contractor is reimbursed for cost which are allowable and allocable in accordance with the contract terms and these regulations, and a fee, if any. (g) “Dispute” means a disagreement concerning the legal rights and obligations of contracting parties, which, if not settled by mutual agreement, must be referred to a neutral third party for resolution. (h) “Employee” means an individual receiving a salary from the Northern Marianas Technical Institute, including appointive and elective officials and non-salaried individuals, including those on honorarium, performing personal services for the Northern Marianas Technical Institute. This definition extends to Board of Trustees and members of their staff. Consultants, independent contractors and part-time workers shall be considered employees. (i) “Goods” means all property, including but not limited to equipment, materials, supplies, food items and commodities and other tangible personal property of any kind or nature, printing, insurance, leases of real and personal property, and sale or other disposal of real and personal property. (j) “Invitation for bids” means all documents, whether attached or incorporated by reference, utilized for soliciting bids. (i) “NMTI” is the Northern Marianas Technical Institute. (l) “Official with expenditure authority” means the chief state officer who may extend, obligate, ear mark, encumber or otherwise commit public funds under the Planning and Budgeting Act, as amended, or under any annual appropriation act. (m) “Person” means an individual, sole proprietorship, partnership, joint venture, corporation, other unincorporated association or a private legal entity. (n) “Procurement” means buying, purchasing, renting, leasing or acquiring construction, goods or services. It also includes all functions that pertain to the obtaining of construction, goods or services, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. (o) “Purchase description” means the words used in a solicitation to describe the goods, services or construction to be purchased and includes specifications attached to, or made part of, the solicitation. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 5 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (p) “Responsible” in reference to a bidder means a person who has the capability in all respects to perform fully the contract requirements, and the integrity and reliability which will assure good faith performance. (q) “Responsive” in reference to a bidder, means a person who has submitted a bid which conforms in all materials respects to the invitation for bids. (r) “Services” means the furnishing of time, labor or effort by a person other than an Employee, and not involving the delivery of a specific end product other than reports, plans and incidental documents. (s) “Electronic” means electrical, digital or any other similar technology. (t) “Contractor” means any person or company that is contracted to provide materials or labor to perform a service or job. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart C - Public Access § 190-3000-045 Public Access to Procurement Information Procurement information shall be a matter of public record and shall be available for public inspection. Procurement information may be kept confidential when necessary to insure proper bidding procedures. This decision shall be made only by the Board of Trustees. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-050 Use of Electronic Media The use of electronic media, including acceptance of electronic signatures, is authorized consistent with the CNMI’s applicable statutory, regulatory or other guidance for use of such media, so long as such guidance provides for: (a) Appropriate security to prevent unauthorized access to the bidding, approval, and award processes; and (b) Accurate retrieval or conversion of electronic forms of such information into a medium which permits inspection and copying. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 100 - Procurement Organization Subpart A – Procurement Officer § 190-3000-101 Creation of Procurement and Supply Division © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 6 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE There is hereby created in the Northern Marianas Technical Institute a Division of Procurement and Supply under the management of the Chief Executive Officer in the execution of those duties authorized under Public Law 20-92, or under any annual appropriations act. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-105 Procurement Officer The Chief Executive Officer shall appoint a Procurement Officer to administer and supervise the day-to-day activities of the division. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-110 Duties of the Officer The duties and responsibilities of the Officer include, but are not limited to, the following: (a) Oversee that these regulations are observed in all Northern Marianas Technical Institute procurement; (b) Hear all appeals of protests and disputes; (c) Conduct bidding, procurement, negotiation or administration of Northern Marianas Technical Institute contracts upon request of the official with expenditure authority; (d) Provide advanced planning for the centralized purchase of Northern Marianas Technical Institute supplies; (e) Exercise general supervision and control over all inventories of supplies belonging to the Northern Marianas Technical Institute; (f) Establish and maintain programs for the inspection, testing and acceptance of supplies; (g) Exercise general supervision and control over the employees of this division. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-115 Contract Oversight (a) The Procurement Officer is responsible for certifying the correctness of all contracts according to the Northern Marianas Technical Institute policies; (b) The contract shall then be approved by the Finance Department (Accountant) or his designee for certification of funds; © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 7 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (c) The contract shall be approved by the Chief Executive Officer for expenditure authority; (d) The contract shall then be approved by the Chairman of the Board of Trustees; (e) The Northern Marianas Technical Institute’s legal counsel shall certify the form and legal capacity of every Northern Marianas Technical Institute contract, change order, or purchase order. No contract for personal services or employment shall be approved if it is retroactive for more than thirty days. (f) The Personnel Officer shall approve all contracts for employment or personal services, including excepted services contracts and contracts for services by an independent contractor in a non-employment status. (g) A contract may be referred back to the Chief Executive Officer for further review based on additional evidence that it may not comply with the regulations in this chapter. If the Chief Executive Officer withdraws approval or refuses to approve a contract, he shall state in writing the basis for his determination. (h) It is the responsibility of the official with expenditure authority to ensure that the contractor does not sign the contract or incur any expenses under it until all necessary government signatures have been obtained. The supervision and inspection of a project is the primary responsibility of the official with expenditure authority. (i) No contract is effective against the Northern Marianas Technical Institute until all the Northern Marianas Technical Institute officials whose signatures appear on the contract form have signed the contract. A contract shall contain a right to audit records clause. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-120 Split Contracts If the Procurement Officer determines that a contract has been split into subcontracts for the purpose of avoiding bidding or if a change order or modification is unreasonably being made to increase the contract price where a contract has been bid and awarded to the lowest responsible and responsive bidder, then the Procurement Officer may require the contract or the modification to be competitively bid. An unreasonable modification or change order would be, for example, one which would have been reasonably foreseeable at the time of the formation of the contract. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-125 Acceptance of Gratuities by Procurement Officer and Division Employees (a) In addition to the restrictions found in § 3000-525, the Chief and the employees of the Procurement and Supply Division shall be subject to these additional restrictions to avoid the appearance of impropriety. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 8 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (b) The Chief or his employees cannot accept from any person any gift of value given to them with the intent to influence their business judgement. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart B - Procurement Function § 190-3000-130 Procurement Services Upon request of any official with expenditure authority, the Procurement Officer shall provide assistance or conduct the bidding, procurement, negotiation or administration of a particular contract. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-135 Centralized Procurement of Supplies The Procurement Officer may, with the approval of the Chief Executive Officer, purchase supplies in large quantities to be relied upon by all departments, agencies, offices and branches when in the best interest of the Northern Marianas Technical Institute. No separate contract or purchase order for these supplies will be approved. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 200 - Source Selection and Contract Formation Subpart A - Source Selection § 190-3000-201 Methods of Source Selection Unless otherwise authorized by law or by regulation, all Northern Marianas Technical Institute contracts $50,001.00 and above subject to § 3000-210 shall be awarded by competitive sealed bidding, except as provided in: (a) § 3000-210 (Small Purchases); (b) § 3000-215 (Sole Source Procurement); (c) § 3000-220 (Emergency Procurement); (d) § 3000-225 (Competitive Sealed Proposals); (e) § 3000-230 (Professional Services); © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 9 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (f) § 3000-305 (Architect-Engineer Services). History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-205 Competitive Sealed Bidding (a) Invitation for Bids. An invitation for bids shall be issued and shall include at the minimum: (1) An invitation for bids number; (2) Date of issuance; (3) Name, address and location of issuing office; (4) Specific location where bids must be submitted; (5) Date, hour and place of bid opening; (6) A purchase description in sufficient detail to permit full and open competition and allow bidders to properly respond; (7) Quantity to be furnished; (8) Time, place and method of delivery or performance requirements; (9) Essential contractual terms and conditions; and (10) Any bonding requirements. (b) Public Notice. Adequate public notice of the invitation for bids shall be given a reasonable time prior to the date set forth for the opening of bids. Publication of notice shall be on the school website over a continuous period of four weeks shall be deemed to be adequate notice. (c) Bidding Time. A bidding time of at least four weeks shall be provided, unless the Procurement Officer determines in writing that a shorter period is necessary. (d) Bid Receipt. All bids shall be submitted to the Procurement Office. Bids shall be received prior to the time set for opening and shall be maintained sealed in a locked receptacle at that office. If a bid is opened by mistake, it shall be resealed and the person who opened the bid shall write his signature and print his title on the envelope and deliver it to the Procurement Officer. No information contained in the bid shall be disclosed prior to the bid opening. The Procurement Officer shall cause the opened bid to be placed into the sealed receptacle. (e) Bid Opening. (1) The bid opening shall be conducted by the Procurement Officer at the Office of the Chief Executive Officer. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. (2) The Procurement Officer shall be present at the bid opening. The bids received prior to the bid closing date shall be publicly opened. The amount of each bid, together with the name of each bidder shall be recorded, the record and each bid shall be open to public inspection. The Procurement Officer shall prepare a written summary of the bid opening. (f) Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this chapter. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria as necessary to reasonably permit a determination as to the acceptability of the bid for the particular purpose © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 10 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE intended. (g) Bid Rejection. A bid may be rejected for any of the following reasons: (1) Failure to conform to essential requirements of the invitation for bids such as specifications or time of delivery; (2) Imposition of conditions or restrictions in the bid which modify requirements of the invitation or limit the bidder’s liability to the Northern Marianas Technical Institute. For example, bids shall be rejected in which the bidder: (i) Protects against future changes in conditions, such as increased costs; (ii) Fails to state a price and indicates that price shall be the price in effect at the time of delivery; (iii) States a price but qualifies it as subject to price in effect at the time of the delivery; or (iv) Limits the rights of the Northern Marianas Technical Institute. (3) Unreasonableness as to price; (4) A bid from a non-responsible bidder. (h) Correction or Withdrawal of Bids; Cancellation of Awards. Correction or withdrawal of inadvertently erroneous bids, before or after award, or cancellation of awards or contracts based on bid mistakes must be approved by the Procurement Officer in writing. After the bid opening, no changes in bid price or other provisions of bids prejudicial to the interest of the Northern Marianas Technical Institute or fair competition shall be allowed. Whenever a bid mistake is suspected, the Chief Executive Officer shall request confirmation of the bid prior to award. In such an instance, if the bidder alleges an error, the Chief Executive Officer shall only permit correction of the bid or withdrawal of the bid in accordance with subparagraph (h)(1) or (h)(2). (1) Correction of Bids. Correction of bids shall only be permitted when: (i) An obvious clerical mistake is clearly evident from examining the bid document. Examples of such mistakes are errors in addition or the obvious misplacement of a decimal point; or (ii) The otherwise low bidder alleges a mistake and the intended bid is evident from the bid document or is otherwise supported by clear and convincing evidence as to the bid intended and the corrected bid remains the low bid. A low bidder may not be permitted to correct a bid mistake resulting from an error in judgement. (2) Withdrawal of Bids. Withdrawal of a bid shall only be permitted where the otherwise low bidder alleges a mistake and there is clear and convincing evidence as to the existence of a mistake. (3) Cancellation of Awards. Cancellation of awards or contracts shall only be permitted when: (i) Evidence as to the existence of the mistake is not discovered until after the award; (ii) Performance of the contract at the award price would be unconscionable. (i) Notice of Intent to Award. After bid evaluation, a notice of intent to award the contract to the lowest responsive bid by a responsible bidder whose bid fully meets the requirements of the invitation for bids and this chapter shall be issued to all bidders. The notice of intent to award is not a promise or guarantee of award, and the intended bidder should not incur any costs based on either the notice of intent to award or reliance of a contract. (j) Award. (1) The contract must be awarded with reasonable promptness by written notice to the lowest responsive bid by a responsible bidder whose bid fully meets the requirements of the invitation © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 11 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE for bids and this chapter. The contract cannot be awarded less than five business days after the issuance of a notice of intent to award pursuant to subsection (i). Unsuccessful bidders shall also be promptly notified. (2)(i) Notice of an award shall only be made by the presentation of a contract with all of the required signatures to the bidder. No other notice of an award shall be made orally or by letter. No acceptance of an offer shall occur nor shall any contract be formed until a Northern Marianas Technical Institute contract is written and has been approved by all the officials required by law and regulation. (ii) Northern Marianas Technical Institute contract shall contain a clause which states that the signature of the private contractor shall be the last in time to be affixed to a contract and that no contract can be formed prior to the approval of all required Northern Marianas Technical Institute officials. (3) In the event all bids exceed available funds and the bid of the lowest responsive and responsible bidder does not exceed those funds by more than five per cent, and time or economic considerations preclude re-solicitation of work of a reduced scope, the Chief Executive Officer may authorize the Procurement Officer to negotiate an adjustment of the bid price, including changes in bid requirements, with the lowest responsive and responsible bidder in order to bring the bid price within the amount of available funds. The negotiation shall be documented in writing and attached to the bidding documents. (4) Warranties. Any contract awarded by NMTI must state a warranty of goods, services or construction for a minimum of one year. Modified, 1 CMC § 3806(g). History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-210 Small Purchases Any procurement not exceeding the amounts established herein may be made in accordance with small purchase procedures. However, procurement requirements shall not be artificially divided so as to constitute a small purchase. (a) Purchases that use Government-sourced funds (local funds), or any combination of both local and federal funds, may be made according to the small purchase procedures of this subsection: (1) For purchases that do not exceed $5,000atleastonepricequoteshallbeobtained.However,theProcurementOfficermayrequiretheexpenditureauthoritytoobtainmorethanonepricequote.(2)Ablanketpurchaseordermaybeusedtomakepurchaseswithoutsecuringapricequotewhenthepurchasesdonotexceed$5,000. The goods or services that may be purchased under a blanket purchase order must be defined (i.e. office supplies) and shall not be used for equipment. The expenditure authority shall promptly submit to the Procurement Officer copies of receipts for all purchases made under a blanket-purchase order. The Procurement Officer may instruct the expenditure authority to explain the need for the goods or services and how the prices paid were reasonable. (3) For purchases that exceed $5,000,butwhicharelessthanorequalto$50,000, a minimum of three vendors shall be solicited to submit written or electronic quotations. The quotations shall be recorded and placed in the procurement file. If fewer than three vendors submit quotations, the © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 12 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE expenditure authority shall certify, in writing, to the Procurement Officer that fewer than three vendors responded and shall provide written proof of the request. If fewer than three of the solicited vendors submit quotes, the Procurement Officer may either approve the request or instruct the expenditure authority to solicit additional quotes. (b) Purchases from the United States General Services Administration (GSA) may be made according to the small purchase procedures of this subsection: (1) At least one quote shall be obtained when making purchases, including purchases that exceed 250,000. (c) A purchase order may be used as authorization for any of the small purchase procedures of this section. (d) Purchase orders may also be utilized instead of contracts for purchasing instructional materials, books, and publications. (e) This section shall not apply to lease or purchase of vehicles, machinery and equipment or to the purchase of professional services. (f) Construction & Design/Build services may be procured by obtaining three price quotations from qualified contractors & design/builders. Procurement under this subsection shall be limited to renovations of existing structures, repairs, maintenance, materials, and construction equipment. No new buildings or structures shall be built using this subsection. Contracts procured hereunder shall not exceed 30,000 and shall be accompanied by a justification, in writing, and agreed to and signed by the Chief Executive Officer. Modified, 1 CMC § 3806(g). History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-215 Sole Source Procurement (a) A contract may be awarded for a supply, service, instructional materials or construction item without competition when the Procurement Officer determines in writing that there is only one source for the required supply, service or construction item. (b) The written determination shall be prepared by the official with expenditure authority and shall contain the following information: (1) The unique capabilities required and why they are required and the consideration given to alternative sources. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-220 Emergency Procurement © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 13 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (a) Notwithstanding any other provision of the regulations in this chapter, emergency procurement procedures may be used where: (1) An unusual and compelling urgency precludes full and open competition, and (2) Delay in award of a contract would result in serious injury, financial or other to the Northern Marianas Technical Institute. An emergency procurement must be as competitive as practicable under the circumstances. (b) A written justification of the basis for the emergency and for the selection of the particular contractor must be made by the official with expenditure authority. The justification must include: (1) Description of the action being approved. (2) Description of the supplies or services required to meet the needs, including the estimated value. (3) A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable. (4) A determination that the anticipated cost to NMTI will be fair and reasonable, and (5) Data, estimated cost, or other rationale as to the extent and nature of the harm to NMTI. (c) The justification must be approved by the Procurement Officer and the Chief Executive Officer. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-225 Competitive Sealed Proposals (a) Condition for Use. When the Chief Executive Officer determines in writing upon the advice of the legal counsel that the use of a competitive sealed bidding is either not practical or not advantageous to the Northern Marianas Technical Institute, a contract may be entered into by competitive sealed proposals. (b) Request for Proposals. Proposals shall be solicited through a request for proposals. (c) Public Notice. Adequate public notice of the request for proposals shall be given in the same manner as provided for in competitive sealed bids. (d) Receipt of Proposals. Proposals shall be opened so as to avoid disclosure of the contents to competing offerors during the process of negotiation. A register of proposals shall be prepared and opened for public inspection after contract award. (e) Evaluation Factors. The request for proposals shall state the relative importance of price and other evaluation factors. (f) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification and to insure full understanding of, and responsiveness to, solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 14 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE and revision of proposals and such revisions may be permitted after submission and prior to award for the purpose of obtaining the best and final offers. In conducting discussions there shall be no disclosure of any information derived from proposals submitted by competing offerors. (g) Notice of Intent to Award. After proposal evaluation, a notice of intent to award the contract to the responsible offeror whose proposal is determined in writing to be the most advantageous to the Northern Marianas Technical Institute, taking into consideration price and the evaluation factors set forth in the request for proposals, shall be issued to all offerors. The notice of intent to award is not a promise or guarantee of award, and the intended offeror should not incur any costs based on either the notice of intent to award or reliance of a contract. (h) Award. Award shall be made to the responsible offeror whose proposal is determined in writing to be most advantageous to the Northern Marianas Technical Institute taking into consideration price and the evaluation factors set forth in the request for proposals. The award cannot be made less than five business days after the issuance of a notice of intent to award pursuant to subsection. (g) No other factors or criteria shall be used in the evaluation and the contract file shall contain the basis on which the award is made. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-230 Competitive Selection Procedures for Professional Services (a) Procurement Method. The services of accountants shall be procured as provided in this section except when authorized as a small purchase, emergency procurement, sole-source procurement or non-employment services contracts. (b) Policy. It is the policy to publicly announce all requirements for professional services and negotiate contracts on the basis of demonstrated competence and qualifications at a fair and reasonable price. The Procurement Officer shall maintain files of current statements of qualifications of professional firms. Persons engaged in providing professional services may submit statements of qualifications and expressions of interests providing such types of services. Persons may amend these statements at any time by filing a new statement. (c) Public Announcement and Form of Request for Proposals. Adequate notice of the need for such services shall be given by the official with expenditure authority through a request for proposals. The request for proposals shall describe the services required, list the type of information and data required of each offeror and state the relative importance of particular qualifications. (d) Award. Award shall be made to the offeror determined in writing by the official with expenditure authority to be the best qualified based on the evaluation factors set forth in the request for proposals, and negotiation of compensation determined to be fair and reasonable. If compensation cannot be agreed upon with the best qualified offeror then negotiations will be formally terminated with the selected offeror. If proposals were submitted by one or more other © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 15 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE offerors determined to be qualified, negotiations may be conducted with such other offeror or offerors, in the order of their respective qualification ranking, and the contract may be awarded to the offeror then ranked as best qualified if the amount of compensation is determined to be fair and reasonable. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart B - Cancellation of Invitation for Bids or Request for Proposals § 190-3000-235 Cancellation An invitation for bids or request for proposals may be cancelled and any and all bids or proposals may be rejected, when such action is determined by the Procurement Officer and approved by the Chief Executive Officer to be in the best interests of the Northern Marianas Technical Institute based on: (a) Inadequate or ambiguous specifications contained in the solicitation; (b) Specifications which have been revised; (c) Goods or services being procured which are no longer required; (d) Inadequate consideration given to all factors of cost to the Northern Marianas Technical Institute in the solicitation; (e) Bids or proposals received indicated that the needs of the Northern Marianas Technical Institute can be certified by a less expensive good or service; (f) All offers with acceptable bids or proposals received are at unreasonable prices; or (g) Bids were collusive. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart C - Qualifications and Duties § 190-3000-240 Responsible Bidders and Duties (a) Awards shall be made only to responsible contractors. To be determined responsible, a prospective contractor must: (1) Have adequate financial resources to perform the contract, or the ability to obtain them; (2) Be able to comply with the required delivery or performance schedule; (3) Have a satisfactory performance record; (4) Have a satisfactory record of integrity and business ethics; © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 16 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (5) Have the necessary organization, experience and skills (or the ability to obtain them), required to successfully perform the contract; (6) Have the necessary production, construction and technical equipment facilities, or the ability to obtain them; (7) Be otherwise qualified and eligible to receive award under applicable laws and rules; and (8) Submit a valid original business license and other certification as may be required. (b) Obtaining Information. Prior to award, the official with expenditure authority shall obtain information from the bidder or offeror necessary to make a determination of responsibility using the factors in subsection (a) above. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for determination of non-responsibility with respect to that bidder or offeror. (c) Right of Non-disclosure. Information furnished by a bidder or offeror pursuant to subsection (b) may not be disclosed outside of the office of the Chief Executive Officer, the Procurement Officer, and legal counsel or any involved Northern Marianas Technical Institute Employee without prior consent by the bidder or offeror. (d) Non-responsibility Determination. When a bid or proposal on which a contract award would otherwise be made is rejected because the prospective contractor is found to be non- responsible, a written determination shall be signed by the official with expenditure authority stating the basis for the determination and this shall be placed in the contract file. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-245 Pre-qualification of Contractors Prospective suppliers of goods or services may be pre-qualified for particular types of construction, goods and services when determined necessary by the Procurement Officer. Opportunity for qualification before solicitation shall be afforded to all suppliers. Solicitation mailing lists of potential contractors shall include, but shall not be limited to, pre-qualified suppliers. In no event will bidders be allowed to qualify after the bid opening. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart D - Types of Contracts § 190-3000-250 Types of Contracts (a) Use of a cost-plus-a-percentage-of-cost and percentage of construction cost methods of contracting are prohibited. (b) Northern Marianas Technical Institute contracts shall utilize a firm fixed priced unless use of a cost reimbursement contract is justified under subsection (c). © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 17 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (c) A cost reimbursement contract may be used when the official with expenditure authority determines in writing which is attached to the contract that: (1) Uncertainties in the work to be performed make the cost of performance too difficult to estimate with the degree of accuracy required for a firm fixed price contract; (2) Use of a firm fixed price contract could seriously affect the contractor’s financial stability or result in payment by the Northern Marianas Technical Institute for contingencies that never occurred; or (3) Use of a cost reimbursement contract is likely to be less costly to the Northern Marianas Technical Institute than any other type due to the nature of the work to be performed under the contract. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-251 Change Orders (a) A change order will only be allowed if an increase, decrease, or change in the Scope of Work is required which was not reasonably foreseeable at the time of the formation of the contract by either party. However, no change order resulting in an increase in contract cost, or time shall be allowed when it is the direct result of either party’s inexperience, inefficiency, or competence. (b) Before adding significant new work to existing contracts, the Procurement and Supply officer shall thoroughly assess whether it would be more prudent to seek competition. This assessment shall be in writing and will articulate the specific need for the good or service, the reason(s) it should not be competitive, and any circumstances that led to her decision. All change orders which increase the original contract price by 25% shall automatically be procured through competitive procedures except when there is an emergency or when there is a sole source procurement. At no time shall more than two change orders be allowed to a contract for services where the additional services are trainings or other professional services. (c) Change orders for construction contracts shall be exempt from subsection (b) as it relates to the automatic prohibition on change orders that increase the price by 25%. A change order for a construction contract may be increased by more than 25%, and not automatically procured through competitive procedures, if: (1) The Capital Improvements Projects office determines, in writing, that the change order is in the best interest of the Northern Marianas Technical Institute because: (i) Utilizing a competitive process will unreasonably delay construction; or (ii) Utilizing a competitive process will not result in cost savings to the Northern Marianas Technical Institute; or (iii) The project is necessary to protect the health and welfare of the students and staff of the Northern Marianas Technical Institute. (2) The Chief Executive Officer must approve, in writing, any change order processed under this section. (d) Contractors shall not be allowed to continue working beyond the expiration term of a contract in the absence of an approved new contract or change order. Change orders shall be processed under the procedures for processing new contracts. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 18 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart E - Inspection and Audit § 190-3000-255 Right to Inspect Place of Business The Board of Trustees and the Chief Executive Officer, may at reasonable times, inspect the place of business of a contractor or any subcontractor which is related to the performance of any contract awarded or to be awarded by the Northern Marianas Technical Institute. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-260 Right to Audit Records As required by section 404 of Public Law 3-91, the contractor and subcontractor or grantee and subgrantee at all levels shall provide the Public Auditor of the Commonwealth with access to and the right to examine and copy any records, data or papers relevant to a Northern Marianas Technical Institute contract or grant for a period of three years after the final payment under the contract or grant. A clause to this effect shall appear in all Northern Marianas Technical Institute contracts and obligations. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart F - Reports and Records § 190-3000-265 Report of Anti-competitive or Deceptive Practices (a) When for any reason any person suspects the following practices are occurring among bidders, offerors, contractors or subcontractors, a notice of the relevant facts shall be transmitted to the legal counsel without delay: (1) Unfair methods of competition; (2) Deceptive acts; or (3) Unfair business practices. (b) These acts are more fully defined at 4 CMC §§ 5101 through 5206. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-270 Retention of Procurement Records (a) Al1 procurement records shall be retained by the Board of Trustees, the Chief Executive Officer and the Procurement Officer. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 19 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (b) The Procurement Officer shall maintain a record listing of all contracts made under sole source procurement or emergency procurement for a minimum of five years. The records shall contain: (1) Each contractor’s name; (2) The amount and type of each contract; and (3) A listing of the supplies, services or construction procured under each contract. (c) All procurement records, except those designated herein as not subject to disclosure, shall be available to public inspection. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 300 - Procurement of Construction, Design/Build and Architect Engineer Services § 190-3000-301 Construction Procurement (a) Invitation for Bids (1) Deposit. The official with expenditure authority shall determine the amount of deposit required for potential bidders to obtain the invitation for bids. (2) Contents. The invitation for bids shall be prepared in accordance with § 60-40-205(a). In addition, the following items shall be included in the invitation for bids. (i) Notice to Bidders. General information regarding the project; (ii) Instruction to Bidders. Information on the preparation of bids, bid security requirements and forms and certifications that must be submitted with the bid; (iii) General Conditions. Standard contract clauses governing the performance of work; (iv) Special Conditions. Special contract clauses depending on the nature and dollar amount of the work to be performed; and (v) Technical Specifications. Specifications governing the technical aspects of the work to be performed. (b) Bid Security (1) Requirement. Bid security shall be required for all competitive sealed bidding on construction contracts where the price is estimated by the Chief Executive Officer to exceed $25,000.00 or when the Chief Executive Officer determines it is in the interest of the Northern Marianas Technical Institute. Bid security shall be on a bid bond, in cash, by certified check, cashier’s check or other form acceptable to the Northern Marianas Technical Institute. A surety company shall hold the certificate of authority from the U.S. Secretary of the Treasury as an acceptable surety or other surety acceptable to the Northern Marianas Technical Institute legal counsel. (2) Amount. Bid security shall be an amount equal to at least fifteen per cent of the amount of the bid or other amount as specified in the invitations for bids depending upon the source of funding. (3) Rejection of Bid. Failure to furnish bid security, when required by the invitation, shall result in rejection of the bid as non-responsive. (c) Contract Performance and Payment Bonds © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 20 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE When a construction contract is awarded in excess of $25,000.00, the following bonds or security shall be delivered to the Northern Marianas Technical Institute and shall become binding on the parties upon the execution of the contract: (1) Performance bond satisfactory to the Chief Executive Officer, executed by a surety company authorized to do business in the Commonwealth or otherwise secured in a manner satisfactory to the Chief Executive Officer, in an amount equal to one hundred per cent of the price specified in the contract; and (2) A payment bond satisfactory to the Chief Executive Officer, executed by a surety company authorized to do business in the Commonwealth or otherwise secured in a manner satisfactory to the Chief Executive Officer, for the protection of all persons supplying labor and materials to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to one hundred percent of the price specified in the contract. (3) Bonding Requirement. Any bonds secured by the contractor must have an AM’s Best rating or higher through an agency deemed satisfactory by the Chief Executive Officer. (d) Suits on Payment Bonds. (1) Right to Institute. Every person who has furnished labor or material to the contractor or its subcontractors for the work provided in the contract, in respect of which a payment bond is furnished under this section, and who has not been paid in full therefore before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by such person or material was furnished or supplied by such person for which such claim is made, shall have the right to sue on the payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action for the sum or sums justly due such person; provided, however, that any person having a direct contractual relationship with a subcontractor of the contractor, but no contractual relationship express or implied with the contractor furnishing said payment bond, shall have a right of action upon the payment bond upon giving written notice to the contractor within ninety days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the materials upon which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. (2) Such notice shall be personally served or served by mailing the same by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts its business. (e) Suits on Payment Bonds. Where and When brought. Every suit instituted upon a payment bond shall be brought in a court of competent jurisdiction for the Commonwealth; but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the person bringing suit. The oblige named in the bond need not be joined as a party in any such suit. (f) Fiscal Responsibility. Every contract modification, change order, or contract price adjustment under a construction contract shall be subject to prior written certification by the Chief Executive Officer as to the effect of the contract modification, change order or adjustment in contract price on the total project budget or the total contract budget. In the event that the certification discloses a resulting increase in the total project budget and/or the total contract budget, such contract modification, change order or adjustment in contract price shall not be made © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 21 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE unless sufficient funds are available therefore, or the scope of the project or contract is adjusted so as to permit the degree of completion that is feasible within the total project budget and/or total contract budget as it existed prior to the contract modification, change order or adjustment in contract price under consideration; provided, however that with respect to the validity, as to the contractor, of any executed contract modification, change order or adjustment in contract price which the contractor has reasonably relied upon, it shall be presumed that there has been compliance with the provisions of this subsection. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-305 Architect-Engineer Services (a) Procurement Method. Architect-engineer services shall be procured as provided in this section except when authorized as a small purchase or emergency procurement. (b) Policy. It is the policy to publicly announce all requirements for architect-engineer services and negotiate contracts on the basis of demonstrated competence and qualifications at a fair and reasonable price. (c) Selection. The Chief Executive Officer and the Northern Marianas Technical Institute’s Procurement office shall jointly maintain files of current statements of qualifications of architect- engineer firms. After public announcement of requirements for architect-engineer services, current statements shall be reviewed together with those that may be submitted by other firms in response to the announcement. Discussions shall be conducted with at least three of the firms regarding the contract requirements and technical approach and selection made therefrom, in order of preference, of no less than three firms determined to be the most highly qualified to perform the services required. (d) Negotiation. The Chief Executive Officer shall negotiate a contract with the highest qualified architect- engineer firm at a price determined to be fair and reasonable to the Northern Marianas Technical Institute. If a fair and reasonable price cannot be negotiated, negotiations shall be terminated and negotiations shall be undertaken with the second highest qualified firm. If a fair and reasonable price cannot be negotiated, negotiations shall be terminated and negotiations shall be undertaken with the third highest qualified firm. If a fair and reasonable price cannot be negotiated with any of the firms, the office with expenditure authority shall then select additional firms in order of competence and qualifications and continue negotiations until a fair and reasonable price is agreed upon. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-310 Two-Phase Design-Build Selection Process (a) The two-phase design-build selection process procedures shall be used when the procurement officer determines that this method is appropriate, based on the following: (1) Three or more offers are anticipated. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 22 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (2) Design work must be performed by offerors before developing price or cost proposals, and offerors will incur a substantial amount of expense in preparing offers. (3) The following criteria have been considered: (i) The extent to which the project requirements have been adequately defined. (ii) The time constraints for delivery of the project. (iii) The capability and experience of potential contractors. (iv) The suitability of the project for use of the two-phase selection method. (v) The capability of the agency to manage the two-phase selection process. (vi) Other criteria established by the Chief Executive Officer. (b) Scope of work. NMTI shall develop, either in-house or by contract, a scope of work that defines the project and states the requirements. The scope of work may include criteria and preliminary design, budget parameters, and schedule or delivery requirements. (c) Procedures. One solicitation may be issued covering both phases, or two solicitations may be issued in sequence. Proposals will be evaluated in Phase One to determine which offerors will submit proposals for Phase Two. One contract will be awarded using competitive negotiation. (1) Phase One. (i) Phase One of the solicitation(s) shall include: (A) The scope of work; (B) The phase-one evaluation factors, including:

1. Technical approach (but not detailed design or technical information)
2. Technical qualifications, such as- a. Specialized experience or technical competence; b. Capability to perform; c. Past performance of the offeror’s team (including architect-engineer and construction members); and d. Other appropriate factors (excluding cost or price related factors, which are not permitted in Phase-One)
3. Phase-Two Evaluation factors; and
4. A statement of the maximum number of offerors that will be selected to submit phase- two proposals. The maximum number specified in the solicitation shall not exceed five unless the procurement officer determines, for that particular solicitation, that a number greater than five is in the Government’s interest and is consistent with the purposes and objectives of the two-phase design-build selection procedures. The procurement officer shall document this determination in the contract file. For acquisitions greater than $4.5 million, the determination shall be approved by the Chief Executive Officer.
5. After evaluating phase-one proposals, the procurement officer shall select the most highly qualified offerors (not to exceed the maximum number specified in the solicitation) and request that only those offerors submit phase-two proposals. (2) Phase-Two: (i) Phase-two of the solicitations shall be prepared and include phase-two evaluation factors developed. Examples of phase-two technical evaluation factors include design concepts, management approach, key personnel and proposed technical solutions. (ii) Phase-two of the solicitation(s) shall require submission of technical and price proposals which shall be evaluated separately. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 23 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE Modified, 1 CMC § 3806(c). History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 400 - Protests and Disputes § 190-3000-401 Protests to the Chief Executive Officer (a) General (1) Any actual or prospective bidder, offeror, or contractor who asserts a claim or asserts that it has been is aggrieved or will be aggrieved in connection with the solicitation or award of a contract may protest to the Chief Executive Officer no later than five (5) days after the issuance of a Notice of Intent to Award. The protest shall be received by the Chief Executive Officer in writing prior to the award of a contract. For competitive sealed bids and competitive sealed proposals, protests shall not be submitted before the issuance of a notice of intent to award. The written protest shall state fully the factual and legal grounds for the protest. (2) Other persons, including bidders, involved in or affected by the protests shall be given notice of the protest and its basis in appropriate cases. The protesting party shall provide such notice and a copy of its protest to all other bidders involved in or affected by the protest and shall file a declaration or proof of service with the Chief Executive Officer. Proof of notice is required by the protesting party to other bidders or proposers within two days of filing its protest. These persons may submit their views and relevant information to the Chief Executive Officer within five days after receiving notice by the protesting party. The Chief Executive Officer may extend the period of time to submit views and relevant information if the Chief Executive Officer certifies that he/she believes the complexity of the matter requires a longer period of time. The submission of views may include any factual statements; briefs; memoranda; declarations; and other information which is relevant and necessary for the determination of the protest. (3) The Chief Executive Officer shall decide the protest within five calendar days after the protest is filed unless the Chief Executive Officer certifies that the complexity of the matter requires a longer time, in which event the Chief Executive Officer shall specify the appropriate longer time. If the Chief Executive Officer fails to render a decision or determination within such period, the protesting party may file its appeal to the Appeal Committee of the State Board of Trustees by filing such Notice of Appeal with the Chairperson through the Board Secretary at the State Board of Trustees Office. (4) When a protest has been appealed to the Appeal Committee, as provided in these procedures, the Chief Executive Officer shall submit a report, and the Chief Executive Officer should include with his/her report a copy of: (i) The protest; (ii) The bid submitted by the protesting bidder and a copy of the bid of the bidder who is being considered for award, or whose bid is being protested; (iv) The solicitation, including the specifications on portions relevant to the protest; (v) the abstract of offers or relevant portions; (vi) Any other documents that are relevant to the protest; and (vii) The Chief Executive Officer’s signed statement setting forth findings, actions, and recommendations and any additional evidence or information deemed necessary in determining © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 24 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE the validity of the protest. The statement shall be fully responsive to the allegation of the protest. If the award was made after receipt of the protest, the Chief Executive Officer’s report will include the determination prescribed in subsection (b)(3) below. The foregoing information submitted by the Chief Executive Officer shall be considered the complete administrative record on appeal to the Appeal Committee unless the Appeal Committee supplements the record with additional testimony or evidence. (5) Since timely action on protests is essential, they should be handled on a priority basis. Upon receipt of notice that an appeal from the Chief Executive Officer’s decision has been taken to the Appeal Committee, the Chief Executive Officer shall immediately begin compiling the information necessary for a report as provided in subsection (a)(4) above. (b) Protest (1) When a proper protest against the making of an award is received, the award shall be withheld pending disposition of the protest. The bidders whose bids might become eligible for award shall be informed of the protest. In addition, those bidders shall be requested, before expiration of the time for acceptance of their bids, to extend the time for acceptance to avoid the need for re-advertisement. In the event of failure to obtain such extensions of bids, consideration shall be given to proceeding with an award under subsection (b)(2) below. (2) When a written protest is received, award shall not be made until the matter is resolved, unless the Chief Executive Officer determines that: (i) The materials and services to be contracted for are urgently required; (ii) Delivery or performance will be unduly delayed by failure to make award promptly; or (iii) A prompt award will otherwise be advantageous to the Northern Marianas Technical Institute. (3) If award is made under subsection (b)(2) above, the Chief Executive Officer shall document the file to explain the need for an immediate award. The Chief Executive Officer also shall give written notice to the protester and others concerned of the decision to proceed with the award. (c) Computation of Time (1) Except as otherwise specified, all “days” referred to in this subpart are deemed to be working days of the Northern Marianas Technical Institute. The term “file” or “submit” except as otherwise provided refers to the date of transmission. (2) In computing any period of time prescribed or allowed by these procedures, the day of the act or event from which the designated period of time begins to run shall not be included. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-405 Appeals of Chief Executive Officer’s Decisions to the Board (a) Jurisdiction; Exhaustion of Remedies. A written appeal to the Appeal Committee from a decision by the Chief Executive Officer may be taken provided that the party taking the appeal has first submitted a written protest to the Chief Executive Officer and otherwise fully complied with § 3000-401, and the Chief Executive Officer has denied the protest or has failed to act on the protest within the time provided. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 25 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (b) Form of Appeal. No particular form of pleading is required for filing an appeal to the Appeal Committee. The appeal shall, however: (1) Include the name and address of the appellant; (2) Identify the name and number of the solicitation or contract; (3) Contain a concise, logically arranged, and direct statement of the grounds for appeal; and (4) Specifically request a ruling by the Appeal Committee. (c) Time for Filing an Appeal. An appeal from the Chief Executive Officer’s decision must be received by the Appeal Committee not later than five days after the appellant received the decision of the Chief Executive Officer, or, in the event that the Chief Executive Officer has not decided the protest, within three days from the date that the Chief Executive Officer should have decided the protest pursuant to § 190-3000-401. Any appeal received after these time limits shall not be considered by the Appeal Committee unless good cause is shown or unless the Appeal Committee determines that the appeal presents issues significant to procurement practices that are not outweighed by the detriment to the Northern Marianas Technical Institute should be appeal be considered. (d) Notice of Protest, Submission of Chief Executive Officer’s Report and Time for Filing of Comments on Report. (1) The Chairperson of the Appeal Committee, immediately upon appointment by the Board Chairperson, shall notify the Chief Executive Officer in writing within one day of appointment, requesting the Chief Executive Officer to give notice of the appeal to all bidders or proposers who appear to have a reasonable prospect of receiving an award if the appeal is denied (hereinafter in this section, “noticed parties”). The Chief Executive Officer shall furnish copies of the protest and appeal documents to such noticed parties with instructions to communicate further directly with the Appeal Committee. (2) The Appeal Committee shall request the Chief Executive Officer to submit a complete report on the appeal to the Appeal Committee as expeditiously as possible (generally within thirty calendar days) in accordance with § 190-3000-401(a)(3) and (4) and to furnish a copy of the report to the appellant and noticed parties. (3) Comments on the Chief Executive Officer’s report shall be filed by the protesting party and any noticed party with the Appeal Committee within five days after the Appeal Committee’s receipt of the report, with a copy to the Chief Executive Officer, other noticed parties, and appellant, as applicable. The Appeal Committee may extend the period of time to submit comments if the Appeal Committee certifies that it believes the complexity of the matter requires a longer period of time. The Appeal Committee may, at its discretion, allow the protesting party, noticed parties, and the Chief Executive Officer to submit rebuttals to the comments on the Chief Executive Officer’s report submitted by the protesting party and noticed parties. If rebuttals are permitted, the Appeal Committee may set deadlines for their submission. All rebuttal submissions must be forwarded by the rebutting party to the Chief Executive Officer, protesting party, and other noticed parties. (4) The failure of an appellant or any noticed party to comply with the time limits stated in this section may result in resolution of the appeal without consideration of the comments untimely filed. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 26 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (e) Withholding of Award. When an appeal has been filed before award, award shall not be made until the appeal is resolved, unless awarded is done in a manner consistent with § 190- 3000-401(b)(2). (f) Submission of Additional Information. Any questions posed or additional information requested by the Appeal Committee shall be furnished as expeditiously as possible. The Appeal Committee may set a reasonable deadline for the submission of information or responses to questions. Any questions or requests, along with corresponding responses or submissions shall be made, upon request, available to any other interested party, except to the extent that the withholding of information is permitted or required by law. The Appeal Committee may allow for interested parties to comment on any answers or information submitted pursuant to this subsection in a manner and timeframe it deems reasonable. (g) Conference. The Appeal Committee may conduct a conference on the merits of the appeal with the appellant and Chief Executive Officer. Alternatively, either party may request such a conference to be held at the discretion of the Appeal Committee. The Appeal Committee has the discretion to include other parties at the conference. (h) Time for Decision; Notice of Decision: The Appeal Committee shall, if possible, issue a decision on the appeal within thirty calendar days after all information necessary for the resolution of the appeal has been received. A copy of the decision shall immediately be mailed or otherwise transmitted to the appellant, other participating parties, and the Chief Executive Officer. Modified, 1 CMC § 3806(g). History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-410 Remedies (a) Remedies Prior to Award. If prior to award the Chief Executive Officer or the Appeal Committee determines that a solicitation or proposed award of a contract is in violation of law or regulation, then the solicitation or proposed award shall be: (1) Cancelled; or (2) Revised to comply with law or regulation. (b) Remedies After an Award. If after an award the Chief Executive Officer or the Appeal Committee determines that solicitation or award of a contract is in violation of law or regulation, then: (1) If the person awarded the contract has not acted fraudulently or in bad faith: (i) The contract may be ratified and affirmed, provided it is determined that doing so is in the best interests of the Northern Marianas Technical Institute; or (ii) The contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract; (2) If the person awarded the contract has acted fraudulently or in bad faith: (i) The contract may be declared null and void; or © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 27 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (ii) The contract may be ratified and affirmed if such action is in the best interests of the Northern Marianas Technical Institute, without prejudice to the Northern Marianas Technical Institute’s right to such damages as may be appropriate. (c) Finality of Findings of Fact by the Appeal Committee. A determination of an issue of fact by the Appeal Committee under this part shall be final and conclusive unless arbitrary, capricious, fraudulent, or clearly erroneous. Any aggrieved party shall thereafter file its petition to review the Appeal Committee’s determination as an agency decision under the CNMI Administrative Procedure Act and applicable rules of administrative procedure with the CNMI Superior Court. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-415 Effective Date All protests as to the manner of bidding, the failure to properly award a bid, the failure of the Northern Marianas Technical Institute to contract with a business after bidding, or the cancellation of bids which may or may not be the subject of lawsuit but have not reached final judgment as of the effective date of this chapter shall be heard in accordance with this part upon the request of the actual or prospective bidder, offeror, or contractor who is aggrieved. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-420 Disputes (a) Any dispute between the Northern Marianas Technical Institute and a contractor relating to the performance, interpretation of, or compensation due under a contract, which is the subject of this chapter, must be filed in writing with the Chief Executive Officer within ten days after knowledge of the facts surrounding the dispute. (b) When a claim by or against a contractor cannot be satisfied or settled by mutual agreement and a decision on the dispute is necessary, the Chief Executive Officer shall review the facts pertinent to the dispute, secure necessary legal assistance and prepare a written description that shall include: (1) Description of the dispute; (2) Reference to pertinent contract terms; (3) Statement of the factual areas of disagreement or agreement; and (4) Statement of the decision as to the factual areas of disagreement and conclusion of the dispute with any supporting rationale. (c) Appeals. The Appeal Committee shall review and render a decision on an appeal from an adverse decision timely taken by a contractor. The Appeal Committee may require a hearing or that information be submitted on the record, in its discretion. The Appeal Committee may affirm, reverse or modify the decision or remand it for further consideration. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 28 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (d) Duty to Continue Performance. A contractor that has a dispute pending before the Chief Executive Officer or an appeal before the Appeal Committee must continue to perform according to the terms of the contract and failure to so continue shall be deemed to be a material breach of the contract unless he/she obtains a waiver of this provision by the Chief Executive Officer or Appeal Committee. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-425 Appeal Committee The Appeal Committee is comprised of three members of the Board of Trustees appointed by the Board Chairperson to hear any appeal under these provisions. The Board Chairperson shall designate one of the three members as the Appeal Committee Chairperson. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 500 - Ethics in Public Contracting § 190-3000-501 Definitions of Terms (a) “Confidential information” means any information which is available to an Employee only because of the Employee’s status as an Employee of the Northern Marianas Technical Institute and is not a matter of public knowledge or available to the public on request. (b) “Conspicuously” means written in such special or distinctive form, print, or manner that a reasonable person against whom it is to operate ought to have noticed it. (c) “Direct or indirect participation” means involvement through decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing or in any other advisory capacity. (d) “Financial interest” means: a. Ownership of any interest or involvement in any relationship from which or as a result of which, a person within the past year has received or is presently or in the future entitled to receive compensation; or b. Holding a position in a business such as an officer, director, trustee, partner, employee or the like or holding any position of management. (e) “Gratuity” means a payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Subpart A - Standards of Conduct § 190-3000-505 Policy Public employment is a public trust. In Northern Marianas Technical Institute contracting, public © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 29 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE Employees shall discharge their duties impartially so as to: (a) Insure fair competitive access to Northern Marianas Technical Institute procurement by reasonable contractors; and (b) Conduct themselves in a manner as to foster public confidence in the integrity of the Northern Marianas Technical Institute. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-510 General Standards (a) Employees. Any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee’s duties is a breach of a public trust. In order to fulfill this ethical standard, employee must meet the requirements of this chapter. (b) Contractors. Any effort to influence any public employee to breach the standards of ethical conduct set forth in this chapter is also a breach of ethical standards. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-515 Employee Disclosure Requirements (a) Disclosure of benefit received from contract. Any Employee who has, or obtains any benefit from any Northern Marianas Technical Institute contract with a business in which the Employee has financial interest, shall report such benefit to the Chief Executive Officer. (b) Failure to disclose benefit received. Any Employee who knows or should have known of such benefit and fails to report such benefit is in breach of these ethical standards. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-520 Employee Conflict of Interest (a) Conflict of interest. It is a breach of ethical standards for any Employee to participate directly or indirectly in a procurement when the employee knows that: (1) The Employee or any member of the employee’s immediate family has a financial interest pertaining to the procurement; (2) A business or organization in which the employee, or any member of the Employee’s immediate family, has a financial interest pertaining to the procurement; or (3) Any other person, business or organization with whom the employee or any member of the Employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement. (b) Discovery of actual or potential conflict of interest, disqualification and waiver. Upon discovery of an actual or potential conflict of interest, an Employee shall promptly file with the © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 30 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE Chief Executive Officer a written statement of disqualification and shall withdraw from further participation in the transaction involved. The employee may, at the same time, apply to the Public Auditor for an advisory opinion as to what further participation, if any, the employee may have in the transaction. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-525 Gratuities and Kickbacks (a) Gratuities. It shall be a breach of ethical standards for any person to offer, give or agree to give any Employee or former Employee, or for any Employee or former Employee to solicit, demand, accept or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or a contract or subcontract or to any solicitation or proposal therefore. (b) Kickbacks. It shall be a breach of ethical standards for any payment, gratuity or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher than subcontractor or any person associated therewith as an inducement for the award of a subcontract or order. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-530 Prohibition Against Contingent Fees (a) Contingent fees. It shall be a breach of ethical standards for a person to be retained, or to retain a person, to solicit or secure Northern Marianas Technical Institute contracts upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies for the purpose of securing business. (b) Representation of contractor. Every person, before being awarded a Northern Marianas Technical Institute contract, shall represent in writing that such person has not retained anyone in violation of this section. Failure to do so constitutes a breach of ethical standards. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-535 Contract Clauses The prohibitions against gratuities, kickbacks, and contingent fees shall be conspicuously set forth in every contract and solicitation. © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 31 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-540 Restrictions on Employment of Present and Former Employees (a) Present Employee. It shall be a breach of ethical standards for any Employee who is participating directly or indirectly in the procurement process to become or be while such an Employee, the employee of any person contracting with the Northern Marianas Technical Institute for whom the Employee is employed. (b) Restrictions on former Employee in matters connected with their former duties. Permanent disqualification of former Employee personally involved in a particular matter. It shall be a breach of ethical standards for any former Employee knowingly to act as a principal or as an agent for anyone other than the Northern Marianas Technical Institute, in connection with any: (1) Judicial or other proceeding, application request for a ruling or other determination; (2) Contract; (3) Claim; or (4) Charge or controversy in which the employee participated personally and substantially through decision, approval, disapproval, recommendation, rendering of advice, investigation or otherwise while an employee, where the Northern Marianas Technical Institute is a party or has a direct or substantial interest. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-545 Use of Confidential Information It shall be a breach of ethical standards for any Employee or former Employee to knowingly use confidential information for actual or anticipated personal gain, or the actual or anticipated personal gain of any other person. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-550 Collusion by Bidders Collusion or secret agreements between bidders for the purpose of securing an advantage to the bidders against the authorizing agent in the awarding of contracts is prohibited. The Chief Executive Officer may declare the contract void if he finds sufficient evidence after a contract has been let that the contract was obtained by a bidder or bidders by reason of collusive or secret agreement among the bidders to the disadvantage of the Northern Marianas Technical Institute. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-555 Penalties © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 32 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (a) Northern Marianas Technical Institute employees. A Northern Marianas Technical Institute employee who violates the provisions of the rules and regulations in this chapter is subject to adverse action as may be appropriate in his or her particular circumstances. This action includes but is not limited to reprimand, suspension without pay, termination of employment, civil injunction, civil suit for damages or return of Northern Marianas Technical Institute money, or criminal prosecution. (b) Contractors. A contractor who violates a provision of the rules and regulations in this chapter shall be subject to a written warning of reprimand, the termination of the contract or suspension from being a contract or subcontractor under a Northern Marianas Technical Institute contract in addition to other penalties prescribed by law. (c) All proceedings under this section must be in accordance with due process requirements. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). § 190-3000-560 Authority to Debar or Suspend (a) Authority. (1) After reasonable notice to the person involved and reasonable opportunity for the person to be heard under the Administrative Procedure Act [1 CMC §§ 9101, et seq.], the Chief Executive Officer after consultation with the Northern Marianas Technical Institute legal counsel, shall have authority to debar a person for cause from consideration for award of contracts. (2) The debarment shall not be for a period of more than three years. The Chief Executive Officer, after consultation with Northern Marianas Technical Institute legal counsel, shall have authority to suspend a person from consideration for award of contracts if there is probable cause for debarment. The suspension shall not be for a period exceeding three months. (b) Causes for debarment or suspension. The causes for debarment or suspension include the following: (1) Conviction for commission of a criminal offense is an incident of obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract; (2) Conviction under Commonwealth or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, violation of the Consumer Protection Act (4 CMC §§ 5101, et seq.), violation of any unfair business practices as prescribed by 4 CMC § 5202, or any other offense indicating a lack of business integrity or business honesty which currently, seriously and directly affects its responsibility as a Northern Marianas Technical Institute contractor; (3) Conviction under Commonwealth or federal antitrust statutes arising out of the submission of bids or proposals such as in chapter 2 of division 5 of title 4 of the Commonwealth Code; (4) Violation of contract provisions, as set forth below, of a character which is regarded by the Chief Executive Officer to be so serious as to justify debarment action: (i) Deliberate failure without good cause to perform in accordance with the specifications within the time limits provided in the contract; or © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 33 of 34

TITLE 190: NORTHERN MARIANAS TECHNICAL INSTITUTE (5) A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts; provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered a basis for debarment; (6) Any other cause that the Chief Executive Officer determines to be so serious and compelling as to effect responsibility as a Northern Marianas Technical Institute contractor, including debarment by another Northern Marianas Technical Institute entity; and (7) For violation of any of the ethical standards set forth in part 500. (c) Decision. The Chief Executive Officer shall issue a written decision to debar or suspend. The decision shall state the reasons for the action taken. (d) Notice of decision. A copy of the decision shall be mailed or otherwise furnished immediately to the debarred or suspended person. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). Part 600 - Miscellaneous § 190-3000-601 Severability If any provision of the regulations in this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end, the provisions of these regulations are severable. History: Adopted 45 Com. Reg. 49479 (Feb. 28, 2023); Proposed 44 Com. Reg. 49290 (Dec. 28, 2022); Emergency 44 Com. Reg. 48767 (Aug. 28, 2022). © 2023 by The Commonwealth Law Revision Commission (Feb. 28, 2023) Page 34 of 34

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Source: CNMI Law Revision Commission