Exhibit B - Contract Discrepancy Notice.docx

This document is a Contract Discrepancy Notice template issued by Idaho Transportation Department (ITD) for use in monitoring contractor performance across state contracts. The notice serves as a formal communication tool between ITD and contractors to document instances of non-compliance with contractual obligations. The template distinguishes between two categories of items: Discrepancies, which require documented responses and corrective action from the contractor, and Observations, which identify potential compliance concerns that may develop into future discrepancies but do not mandate a response unless specifically noted. The form includes structured sections for ITD to detail the nature of non-compliance, cite relevant contract references, specify required corrective actions, and attach supporting documentation such as photographs or evidence.

The contractor response process requires the contractor to acknowledge their understanding of identified discrepancies, propose specific corrective actions, and provide an estimated resolution date. ITD contract monitors then evaluate the proposed resolution by selecting Accept, Partially Accept, or Reject, with justification required for partial acceptance or rejection decisions. Both parties must sign the notice to document their understanding of responsibilities and timeline expectations. Upon completion of corrective actions, the ITD contract monitor signs to confirm resolution of each discrepancy based on the actions detailed by the contractor. The notice also includes an optional section for contractor responses to observations. No pricing, set-asides, incumbent information, funding sources, or renewal terms are addressed in this monitoring and compliance document.