(1) When authorized or required by an exemption granted under ORS § 279C.335, a contracting agency may solicit and award a public improvement contract, or may award multiple public improvement contracts when specified in the request for proposals, by requesting and evaluating competitive proposals. A contract awarded under this section may be amended only in accordance with rules adopted under ORS § 279A.065.

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(2) Except as provided in ORS § 279C.330 to 279C.355, 279C.360 to 279C.390, 279C.395 and 279C.430 to 279C.450, competitive proposals shall be subject to the following requirements of competitive bidding:

(a) Advertisement under ORS § 279C.360;

(b) Requirements for solicitation documents under ORS § 279C.365;

(c) Disqualification due to a Construction Contractors Board listing as described in ORS § 279C.375 (3)(a);

(d) Contract execution and bonding requirements under ORS § 279C.375 and 279C.380;

(e) Determination of responsibility under ORS § 279C.375 (3)(b);

(f) Rejection of bids under ORS § 279C.395; and

(g) Disqualification and prequalification under ORS § 279C.430, 279C.435 and 279C.440.

(3) For the purposes of applying the requirements listed in subsection (2) of this section to competitive proposals, when used in the sections listed in subsection (2) of this section, ‘bids’ includes proposals, and ‘bid documents’ and ‘invitation to bid’ include requests for proposals.

(4) Competitive proposals are not subject to the following requirements of competitive bidding:

(a) First-tier subcontractor disclosure under ORS § 279C.370; and

(b) Reciprocal preference under ORS § 279A.120.

(5) The contracting agency may require proposal security that serves the same function with respect to proposals as bid security serves with respect to bids under ORS § 279C.365 (5) and 279C.385, as follows:

(a) The contracting agency may require proposal security in a form and amount as may be determined to be reasonably necessary or prudent to protect the interests of the contracting agency.

(b) The contracting agency shall retain the proposal security if a proposer who is awarded a contract fails to promptly and properly execute the contract and provide any required bonds or insurance.

(c) The contracting agency shall return the proposal security to all proposers upon the execution of the contract, or earlier in the selection process.

(6) In all other respects, and subject to rules adopted under ORS § 279A.065, references in this chapter to invitations to bid, bids or bidders shall, to the extent practicable within the proposal process, be deemed equally applicable to requests for proposals, proposals or proposers. However, notwithstanding ORS § 279C.375 (1), a contracting agency may not be required to award a contract advertised under the competitive proposal process based on price, but may award the contract in accordance with ORS § 279C.410 (8). [2003 c.794 § 129; 2005 c.103 § 23; 2007 c.764 § 29]