R311-207-4. Submission Requirements for Requests for Reimbursement of Claims Against the Petroleum Storage Tank Trust Fund

  (a) In order to receive payment from the fund, a claimant shall submit an invoice to the Director. The invoice from the claimant to the fund shall be on the form or forms provided by the Director. Reimbursement may be on a pay for performance or on a time and material basis as approved in advance by the Director. All costs for time and material reimbursement shall be itemized at a minimum to show the following:

  (1) amounts allocated to each approved work plan budget;

  (2) employee name, date of work, task or description of work, labor cost and the number of hours spent on each task;

  (3) sampling, reporting, and laboratory analysis costs;

  (4) equipment rental and materials;

  (5) utilities;

  (6) other direct costs; and

  (7) other items as determined by the Director.

  (b) All itemized expenses shall indicate the full name and address of the company or contractor providing materials or performing services.

  (c) All expenses for time and material reimbursement shall be documented on a monthly basis, or as otherwise directed by the Director, with a copy of the original bill provided to the Director by the claimant. The claimant shall provide documentation that claimed costs and associated work were reasonable, customary, and legitimate in accordance with Sections R311-207-5 and R311-207-4(e).

  (d) For time and material based reimbursement, before receiving payment under Section 19-6-419, the claimant shall provide proof of past payments for services or construction rendered, in a form acceptable to, or as directed by, the Director, unless the Director has agreed to other arrangements. The responsible party shall remain primarily liable, however, for all costs incurred and should obtain lien releases from the company or contractor providing material or performing services.

  (e) For time and material based reimbursement, documentation of expenses for construction or other services provided by a subcontractor retained by a consultant or contractor shall include one or more of the following items:

  (1) a minimum of three competitive bids by responsive bidders. To be competitive:

  (A) Two of the bids must be from bidders who are not related parties. "Related parties" for the purpose of this rule, shall mean organizations or persons related to the consultant by any of the following: marriage; blood; one or more partners in common with the consultant; one or more directors or officers in common with the consultant; more than 10% common ownership direct or indirect with the consultant.

  (B) The bid specifications shall contain a clear and accurate description of the technical requirements for the material, product or service and shall not contain features which unduly restrict competition. The bid specifications shall include a statement of the qualitative nature of the material, product or service to be procured, and, when necessary shall set forth those minimum essential characteristics.

  (C) For frequently used services such as drilling, competitive bid schedules may be taken by the consultant once each calendar year in January with the results provided to the Director. The prices from the lowest responsible bidder will be used for at least the following 12 months and will remain in effect until re-bid by the consultant and approved by the Director. The Director may reject bid prices that are not customary, reasonable and legitimate. The lowest bid from a responsible bidder will establish the maximum dollar amount the PST Fund will reimburse the claimant for these services, regardless of whether the claimant accepts that bid or another;

  (2) sole source justification;

  (A) Analytical laboratories may be justified based on service, data quality and cost;

  (3) documentation that expenses have been for reasonable, customary, and legitimate purposes; or

  (4) other documentation as required or requested by the Director.

  (f) In accordance with Section 19-6-420, the Director may not authorize payment from the fund for services provided by consultants, contractors, or subcontractors which are in non-compliance with the requirements of Section R311-207 or any other applicable federal, state, or local law.

  (g) Any third party claims brought against the responsible party or any occurrence likely to result in third party claims against the responsible party as a result of the release must be immediately reported to the State Risk Manager and to the Director.

  (h) The Director may reimburse claimants based on pay for performance for the investigation, abatement or remediation of eligible PST fund sites. Under a pay for performance cleanup the claimant is reimbursed on a fixed price schedule as measurable contaminant level goals are reached. The claimant's reimbursement under pay for performance for the work anticipated shall be supported by competitive bidding, sole source justification or reasonable, customary and legitimate costs as approved by the Director. Itemization of expenses is not required for payment of a claim unless specifically required in a work plan by the Director.