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Appendix G - Barriers and Solutions to Implementation of Best-Value Process
Pages 186-189

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From page 186... ... G-1 A P P E N D I X G Barriers and Solutions to Implementation of Best-Value Process Read the entire page →
From page 187... ... FHWA has determined that A+B bidding is permissible based on this authority and should therefore be able to permit other best-value concepts to be generally used without a statutory modification. State law Laws in many states require construction work to be competitively bid, subject to certain exceptions Individual state legislatures Revise state law as necessary To be determined state by state States have adopted laws permitting use of best-value procurement based on the MPC State regulations Individual states Revise regulations as necessary To be determined state by state Regulations implementing statutory requirements cannot be modified unless underlying law is changed Local law Local agency charters/ ordinances often require construction work to be competitively bid, subject to certain exceptions Governing bodies or individual agencies Revise local law as necessary To be determined agency by agency In some states charter cities may have the ability to use best-value procurement despite general legislation requiring competitive bidding, under the "home rule." Local regulations Regulations typically track legislative requirements Individual agencies Revise regulation as necessary To be determined agency by agency Resistance to change within transportation agency Belief that low-bid system works well; culture of avoiding discretionary procurement decisions; difficulties associated with changing paradigms in general Agency management and staff Training; communication regarding successes; participation in workshops; sessions at TRB, AASHTO, ARTBA and other conferences N/A Level of investment required for startup Investment in staff training; acknowledgment that initial projects will not be easy Agency management Acknowledge that investment is necessary N/A Read the entire page →
From page 188... ... G-3 Barriers Level to address Possible solutions Probability of solution without legislative restructuring Comments Opposition by contractors Many contractors have a preference for low-bid procurement, some due to concerns regarding favoritism, others due to belief that past performance requirements will lock them out of best-value contracting due to lack of experience or because their past performance will be problematic Agency and contractor management Build safeguards into the process to avoid opportunities for favoritism; continue using lowbid procurements to allow contractors an entrée; involve industry representatives in development of the process N/A Small contractor opposition Many small contractors believe that they will be locked out of best-value contracting Agency and contractor management Build safeguards into the process to ensure an appropriate mix of large and small contracts; continue using low-bid procurements to allow contractors an entrée; involve industry representatives in development of the process N/A Opposition by engineering firms Engineering firms may object to design-build and other types of contracts that modify their traditional role in development of public works projects Agency management and engineering firm management Education regarding benefits of best-value contracting; communicate to engineering firms that this approach will not adversely impact contracting opportunities for them N/A Description Read the entire page →
From page 189... ... Barriers Description Level to address Possible solutions Probability of solution without legislative restructuring Comments Opposition by unions Unions may object to level of discretion involved in the selection process, and may be concerned that the process will allow owners to select nonunion contractors Agency management and union management Education regarding benefits of best-value contracting; build safeguards into the process to avoid opportunities for favoritism N/A Unions may ask for provisions to be added to legislation to protect labor, including requirements for prequalification relating to past performance in areas of concern to labor interests. However, from a public policy standpoint there does not appear to be any reason why different rules should apply to bestvalue contracts and low-bid contracts in determining whether a contractor is responsible, and it would therefore be more appropriate for such requests to be addressed in the context of general modifications to procurement requirements for public works contracts, rather than addressing them as an add-on to best-value legislation. Read the entire page →

From page 186...

... G-1 A P P E N D I X G Barriers and Solutions to Implementation of Best-Value Process

Read the entire page →

From page 187...

... FHWA has determined that A+B bidding is permissible based on this authority and should therefore be able to permit other best-value concepts to be generally used without a statutory modification. State law Laws in many states require construction work to be competitively bid, subject to certain exceptions Individual state legislatures Revise state law as necessary To be determined state by state States have adopted laws permitting use of best-value procurement based on the MPC State regulations Individual states Revise regulations as necessary To be determined state by state Regulations implementing statutory requirements cannot be modified unless underlying law is changed Local law Local agency charters/ ordinances often require construction work to be competitively bid, subject to certain exceptions Governing bodies or individual agencies Revise local law as necessary To be determined agency by agency In some states charter cities may have the ability to use best-value procurement despite general legislation requiring competitive bidding, under the "home rule." Local regulations Regulations typically track legislative requirements Individual agencies Revise regulation as necessary To be determined agency by agency Resistance to change within transportation agency Belief that low-bid system works well; culture of avoiding discretionary procurement decisions; difficulties associated with changing paradigms in general Agency management and staff Training; communication regarding successes; participation in workshops; sessions at TRB, AASHTO, ARTBA and other conferences N/A Level of investment required for startup Investment in staff training; acknowledgment that initial projects will not be easy Agency management Acknowledge that investment is necessary N/A

Read the entire page →

From page 188...

... G-3 Barriers Level to address Possible solutions Probability of solution without legislative restructuring Comments Opposition by contractors Many contractors have a preference for low-bid procurement, some due to concerns regarding favoritism, others due to belief that past performance requirements will lock them out of best-value contracting due to lack of experience or because their past performance will be problematic Agency and contractor management Build safeguards into the process to avoid opportunities for favoritism; continue using lowbid procurements to allow contractors an entrée; involve industry representatives in development of the process N/A Small contractor opposition Many small contractors believe that they will be locked out of best-value contracting Agency and contractor management Build safeguards into the process to ensure an appropriate mix of large and small contracts; continue using low-bid procurements to allow contractors an entrée; involve industry representatives in development of the process N/A Opposition by engineering firms Engineering firms may object to design-build and other types of contracts that modify their traditional role in development of public works projects Agency management and engineering firm management Education regarding benefits of best-value contracting; communicate to engineering firms that this approach will not adversely impact contracting opportunities for them N/A Description

Read the entire page →

From page 189...

... Barriers Description Level to address Possible solutions Probability of solution without legislative restructuring Comments Opposition by unions Unions may object to level of discretion involved in the selection process, and may be concerned that the process will allow owners to select nonunion contractors Agency management and union management Education regarding benefits of best-value contracting; build safeguards into the process to avoid opportunities for favoritism N/A Unions may ask for provisions to be added to legislation to protect labor, including requirements for prequalification relating to past performance in areas of concern to labor interests. However, from a public policy standpoint there does not appear to be any reason why different rules should apply to bestvalue contracts and low-bid contracts in determining whether a contractor is responsible, and it would therefore be more appropriate for such requests to be addressed in the context of general modifications to procurement requirements for public works contracts, rather than addressing them as an add-on to best-value legislation.

Read the entire page →

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Appendix G - Barriers and Solutions to Implementation of Best-Value Process Pages 186-189

Appendix G - Barriers and Solutions to Implementation of Best-Value Process
Pages 186-189