Exhibit 2 - Contract Discrepancy Notice.docx

This file is a Contract Discrepancy Notice template issued by the Idaho Transportation Department (ITD) for use in monitoring contractor performance on state contracts. The document serves as a formal communication tool to document instances where contractors fail to meet contractual requirements. The notice distinguishes between two types of performance issues: Discrepancies, which require mandatory contractor response and corrective action, and Observations, which identify potential compliance concerns that may warrant attention but do not mandate a formal response unless specifically noted. The template includes structured sections for ITD to detail the nature of non-compliance, reference applicable contract provisions, specify required corrective measures, and attach supporting documentation such as photographs. The contractor must provide a detailed resolution plan with an estimated completion date, which ITD then reviews and either accepts, partially accepts, or rejects based on the adequacy of the proposed corrective actions. The process includes documented signatures from both the contractor and ITD contract monitor at multiple stages, establishing clear accountability and providing an audit trail for contract administration and performance monitoring.

The notice template does not specify pricing terms, set-asides, incumbent information, or funding details, as it is a standardized form designed for use across multiple ITD contracts rather than a procurement-specific document. The discrepancy resolution process is intended to create a collaborative framework between ITD and contractors to achieve compliance, with follow-up dates scheduled to verify that corrective actions have been completed as promised. This mechanism reflects ITD's systematic approach to contract administration and quality assurance on state infrastructure and construction projects, ensuring that contractors maintain performance standards throughout the contract term.