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15 1 Contracting Bid Mistakes 10:00 am to 2:30 pm February 4 - - PowerPoint PPT Presentation

Apr 11, 2024 •648 likes •1.45k views

CONTRACTING BID MISTAKES 15 1 Contracting Bid Mistakes 10:00 am to 2:30 pm February 4 - Renton February 11 - Camas February 17 - Yakima February 24 Everett 2 Contract administrators are very serious types who would never

  1. CONTRACTING BID MISTAKES 15 1

  2. Contracting Bid Mistakes 10:00 am to 2:30 pm ■ February 4 - Renton ■ February 11 - Camas ■ February 17 - Yakima ■ February 24 – Everett 2

  3. Contract administrators are very serious types who would never stoop …. … to using a dancing Spiderman in a presentation!

  4. Linda Shilley John Carpita, P.E. Contract Administrator Public Works Consultant Port of Olympia MRSC LindaS@portolympia.com jcarpita@mrsc.org (360) 528-8010 (206) 625-1300 4

  5. Today’s Agenda: 10:00 - 10:15 Intro, Overview, Housekeeping 10:15 – 12:00 Contracting Bid Mistakes ■ Agency Bid Mistakes – Emergency contracting – Why Bid It? Know Your Bid Parameters – Its Just Maintenance – Do I Have to Bid It? – Tips for Receiving Conforming Bids – What to Include in Bid Documents to Minimize Bidder Mistakes and Protests: 5

  6. Today’s Agenda continued: ■ Contractor Bid Mistakes – Lump Sum vs Unit Priced Bid Items – Unbalanced Bids – Bid Schedule vs Schedule of Values ■ Competitive Bid Exemptions: ■ Special Facility or Market Condition ■ Sole Source 6

  7. Today’s Agenda continued. ■ 12:00 – 1:00 Lunch on your Own ■ 1:00 – 2:30 Breakout Sessions – 10 Scenarios to work through in Small Groups and Report Back to the Assemblage. 7

  8. Bid Law Exemptions per RCW 39.04.280 ■ Competitive bidding procedures may be waived by resolution of the governing body of the municipality for: – Purchases that are clearly and legitimately limited to a single (sole) source of supply – Purchases involving special facilities or market conditions – Purchases in the event of emergency – Purchases of insurance or bonds – Public works contracts in the event of an emergency

  9. Exemptions ■ Competitive bidding procedures may be waived under the preceding circumstances by adopting either: – a resolution at the time of contracting; or – by written policies beforehand. ■ A resolution must state the factual basis for the exception.

  10. Exemptions ■ If written policies are used to waive competitive bidding requirements, the contract and a factual basis for the exception must be recorded and open to public inspection immediately after a contract is awarded under those policies.

  11. Emergency Public Works Contracts ■ An emergency is defined, uniformly for all classes and types of municipalities, as unforeseen circumstances beyond the control of the municipality that either: – present a real, immediate threat to the proper performance of essential functions or – will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken

  12. Emergency Public Works Contract ■ RCW 39.04.280 – (2) (b) Designated person within the municipality declares an emergency situation exists, waives competitive bidding requirements, and awards all necessary contracts – (2) (b) A written finding of the existence of an emergency must be made by the governing body or its designee and duly entered of record no later than two weeks following the award of the contract

  13. Does the SAO look at emergency contracts? Yes ■ The Town did not solicit bids for the Pennsylvania Avenue South water main project. The project included a water line extension and electrical work for new homes. ■ The Council approved the project as an emergency repair; however, it does not meet the requirements of an emergency repair and should have been competitively bid. 13

  14. Emergency Public Works Contracts ■ Who in your agency is authorized to declare an emergency? ■ How about: – Prevailing wages – Insurance – Bonds – Established Unit Prices – Force Account ■ Project Closeout Items

  15. To Bid … or Not to Bid. That is the Question. 15

  16. Why Bid Laws? ■ Bid laws were established to • prevent fraud, collusion, favoritism, or improvidence in the awarding of public contracts • enable local governments to obtain the best work or supplies at the most reasonable prices • provide a fair forum for bidders • limit the dollar volume of public works contracts performed by public agencies 16

  17. Know Your Bid Parameters: ■ Each Public Agency type has specific requirements ■ State statutes may not always be clear ■ Internal Policies may tighten State requirements In Resource Packet: Contracting Corner ‐ How to Live With Your Agency’s Bid and Day Labor Limits 17

  18. 18

  19. Examples of Bid Parameters: ■ RCW 35.23.352: • Any second-class city or any town may construct any public works, as defined in RCW 39.04.010, by contract or day labor without calling for bids if <= $65K & 1+ craft, or <= $40K & 1 craft…. ■ RCW 57.08.050 (water/sewer districts): • All work ordered, the estimated cost of which is in excess of fifty thousand dollars , shall be let by contract and competitive bidding. 19

  20. Example of Ambiguity: Ports Only Bid Parameters: ■ RCW’s Not Clear for Ports: Port of Longview to SAO office: “May Ports adopt a policy that exempts the competitive bidding of public works contracts for projects estimated at less than $300,000?” 20

  21. Ports Only Bid Parameters: ■ SAO Response: “There is no bottom threshold for ports, meaning every public works project from $0 and up has to be bid unless the small works roster is adopted….,” Cited RCW 53.08.120 21

  22. Ports Only Bid Parameters: RCW 53.08.120(2)(b) ■ For all contracts related to work meeting the definition of "public work" in RCW 39.04.010(4) that are estimated at three hundred thousand dollars or less , a port district may let contracts using the small works roster process under RCW 39.04.155 in lieu of advertising for bids. 22

  23. Ports Only Bid Parameters: RCW 53.08.120(2)(b) ■ The use of “may” is not requiring use of the small works roster, but rather giving the Port an option. ■ Port of Olympia to SAO office: – Which statute requires Ports to competitively bid public works estimated at less than $300,000?” 23

  24. Ports Only Bid Parameters: ■ SAO Response: “For audit purposes, we would expect the Port District to either use a small works roster process described in RCW 39.04.155 or advertise for bids for public works projects below $300,000.” Lesson Learned: Know your Agencies Bid Parameters, and if in doubt – Ask! 24

  25. Public Works Mysteries • My department doesn’t do public work projects! • We do parks and install recreation equipment • Just installing a new telephone system • We’re just moving the wall 5 feet over, is all • It’s not our money: we got a 100% donation • This is work that our crews would normally do, but we’re short-handed • Which leads to the big question:

  26. Is Maintenance a Public Work? – "Public work" means all work, construction, alteration, repair, or improvement other than ordinary maintenance… RCW 39.04.010 – Public work includes “maintenance when performed by contract” (WAC 296-127-010) – Maintenance is defined as keeping existing facilities in good usable, operational condition.” – WAC 296-127-010 (7)(a)(iv) 26

  27. Is Maintenance a Public Work? ■ Ordinary Maintenance means work not performed by contract and that is performed by the regular employees of the Port on a regularly scheduled basis (e.g. daily, weekly, monthly, seasonally, semiannually, annually) to service, check, or replace items that are not broken; or work not performed by contract that is not regularly scheduled but is required to keep existing infrastructure in good usable, operational condition. RCW 39.12.020 exempts the regular employees of the Port from the prevailing wage requirements in RCW 39.12. Maintenance work by contractors is not Ordinary Maintenance. ■ Laura Hermann, Labor & Industries “ 27

  28. Tips for Receiving Conforming Bids: ■ Fewer bid items means less room for error ■ One place for signature/stamp ■ Clear instructions for completing bid form ■ Include Trench Safety System as separate bid item when required ■ Include space/blank lines for HVAC, Plumbing, and Electrical Subcontractor names for projects estimated at $1 million or more 28

  29. Tips for Receiving Conforming Bids: ■ Limit number of forms – Include Statements/Certifications within Bid Form above signature line, such as: – Non-Collusion Affidavit – Federal Debarment Certification – Federal EEO/DBE Statements – Buy American Declaration – Agency specific Certifications/Declarations 29

  30. Tips for Receiving Conforming Bids: Checklist of Common ■ Subcontractor’s List ■ Bid Guaranty ■ Timeliness of bid submittal ■ Signature on the bid ■ Bid price submitted on all required items ■ Mandatory pre-bid site meeting ■ Addenda acknowledgement ■ Documents to be submitted with the bid

  31. Tips for Receiving Conforming Bids: Using Additive and Alternate Bid Items Additive: New bid item added in separate table Alternate: Replaces other bid item. Clearly identify when and if Owner will incorporate item(s) into evaluation of bid. 31

  32. Avoid Protests: Include in Bid Documents  Requirements & Checklist for Responsive/Responsible Bids  Must Contractors name itself or Subcontractor or write in N/A for HVAC, Electrical, and Plumbing?  Or Can they leave line blank if no related work required.  Can Contractors submit names of Subcontractors within 1 hour of bid time; or is it required at bid time? 32

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