Section 370-300-307 - CONTRACT REMEDIES307.01 Remedies for the Division on goods or services which do not meet the contract 307.01A In any case where the contractor fails to deliver or has delivered goods or services which do not meet the contract standards, the Division shall send a written "Notice to Cure" to the contractor for correction of the problem. 307.01A(1) If the contractor does not respond adequately to the "Notice to Cure", the Division may cancel the contract and buy goods or services from another bidder. Any increase between the contract price and market price will be paid by the contractor who failed to follow the contract. This remedy will be in addition to any other remedy provided by law or contract.307.01B The Division may refuse to accept goods which exceed the number ordered. The goods may be returned to the contractor at the contractor's expense.307.01C The Division shall be responsible for inspecting, accepting, or rejecting goods or services under contract. 307.01C(1) In rejecting goods or services, the division shall notify the contractor as soon as possible.307.01C(2) The Division shall state the reasons for rejecting the goods or services and request prompt cure.307.01C(3) Replacement goods or services shall be made available to the Division at a date acceptable to the Division. 307.01D Before the Division finds a contractor in default of contract, it will consider the specific reasons the contractor failed and the time needed to get goods or services from other bidders.307.02 Termination for convenience of the Division A purchase order or contract may be terminated for the convenience of the Division by delivering to the bidder a notice of termination specifying the extent to which performance under the purchase order or contract is terminated and the date of the termination. After receipt of a notice of termination, the contractor must stop all work or deliveries under the purchase order or contract on the date and to the extent specified.
307.02A If the purchase order or contract is for commercial items generally sold in substantial quantities to the general public and no specific identifiable inventories were maintained exclusively for the lottery's use, no claims will be accepted by the Division. Payment will be made for items shipped prior to receipt of the termination notice.307.02B If the purchase order or contract is for items being produced exclusively for the use of the lottery, and raw materials or services must be secured by the vendor from other sources, the vendor shall order no additional materials or services except as may be necessary for completion of any portion of the work which was not terminated. The Division may direct the delivery of the fabricated or unfabricated parts, work in process, completed work, supplies, and other material produced as a part of, or acquired in connection with the performance of the work, or direct the vendor to sell the same, subject to the Division's approval as to price. The vendor may, with the approval of the Division retain the same, and apply a credit to the claim. The vendor must complete performance on any part of the purchase order or contract which was not terminated.307.02C Within one hundred and twenty days (120) days after receipt of the notice of termination, or such longer period as the Division for good cause may allow, the vendor must submit any termination claim. This claim will be in a form and with certifications prescribed by the Division. The claim will be reviewed and forwarded with appropriate recommendations to the State Tax Commissioner.307.03 Assignment A procurement contract entered into under these regulations may not be assigned without the specific written approval of the Division.
307.04 Bidder protests Any bidder who claims to be aggrieved in connection with the award of a contract by the Division may protest the action of the Division by filing a written protest as provided in Lottery Regulations, Chapter 200 Practice and Procedure.
370 Neb. Admin. Code, ch. 300, § 307