Nye County terminates contractor for Gabs tank project over SAM.gov registration; awards to second bidder

Nye County moved to terminate a previously awarded contract for rehabilitation of the Gabs water tank after the prime contractor failed to provide an active SAM.gov registration required by the state for ARPA grant reimbursement.

Procurement and finance staff said the ARPA subgrant requires compliance with federal grants regulations (including SAM.gov/UEI registration) for reimbursement. Brand Energy Services objected, saying the solicitation did not state that SAM.gov registration was an explicit prerequisite in the original bid documents; a Brand Energy representative argued the county's post‑award requirement was applied retrospectively. County staff replied they had sought waivers and exceptions and documented communications from state grantors saying reimbursements require an active SAM.gov registration.

Given unresolved compliance and reimbursement risk, the board authorized the county manager to issue a 30‑day termination without cause and approved awarding the Gabs water tank contract to the next lowest responsive, responsible bidder, Viking Painting LLC, for $164,100, funded from the grant. The motion carried 4‑1? (recorded as carries 4 with 1 absent). Commissioners noted the county had already lost a portion of the original ARPA allocation and emphasized the need to protect remaining grant funds by ensuring vendor compliance with federal requirements.

Staff also noted procedural improvements: future solicitations will include stronger preaward checks for SAM.gov registration to avoid similar disruptions.