Bidder and private vendor qualifications.

Any private vendor selected by the department must have the qualifications and operations and management experience to carry out the terms of the contract. In submitting a proposal, the bidder must demonstrate financial ability to fulfill the requirements of the contract and must submit an independently audited financial statement for the previous 5 years. If the contract includes construction and if the state is required to make payments for construction prior to the completion of construction, the contract shall contain a construction performance bond approved by the secretary of the Department of Corrections as adequate and appropriate for the construction portion of the contract.