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Laborers-Employers Cooperation and Education Trust. Best Value Contracting & Responsible Employer Ordinances. What is Best Value Contracting?. Permits contracting officers to consider factors other than price, such as: Past performance Training Recruiting/Manpower Health Insurance

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slide1

Laborers-Employers Cooperation and Education Trust

Best Value Contracting

&

Responsible Employer

Ordinances

what is best value contracting
What is Best Value Contracting?
  • Permits contracting officers to consider factors other than price, such as:
    • Past performance
    • Training
    • Recruiting/Manpower
    • Health Insurance
    • OSHA violations
  • Shifts the focus from the initial low bid to the true and final cost of a project
recent developments
Recent Developments
  • Used in 50% or more of new federal construction projects
  • Corp of Engineers supports best value (see: http://www.amc.army.mil/amc/rda/rda-ap/ssrc/ssp_toc.htm)
governmental agencies supporting best value contracting
Governmental Agencies Supporting Best Value Contracting
  • Delaware – 1999 passed the “Quality Construction Improvement Act”
  • California – 2000 passed “California Public Contract Code” regarding pre-qualification of bidders and contractor responsibility
  • Oregon – 1999 passed contractor responsibility and pre-qualification requirements
  • Kansas – House bill 2850 pending
governmental agencies supporting best value contracting5
Governmental Agencies Supporting Best Value Contracting
  • West Virginia – Design-build/Best value regulation pending
  • New Jersey – 2000 passed “N.J. Education Facilities Construction and Financing Act”
  • New York – 1999 issued state procurement council guidelines
  • Pennsylvania – 1999 Governor’s Management Directive 215.9
governmental agencies supporting best value contracting6
Governmental Agencies Supporting Best Value Contracting
  • Mercer County, N.J. – 1999 issued Executive Order 99.1
  • Boston, MA – 1998 passed Code Ordinance Chapter 9-8.1
  • Federal Acquisition Regulations, Part 15 Revisions 48 C. F. R. § 15.000 et seq.
definition of evaluation factors
Definition of Evaluation Factors
  • Price – Lowest bid
  • Past Performance
    • Has contractor:
      • completed projects on time and on budget?
      • completed projects of a similar type?
      • complied with applicable laws and regulations?
      • completed projects safely?
definition of evaluation factors8
Definition of Evaluation Factors
  • Management Plan/ Schedule
    • Management team experience and key personnel
    • Quality control program
    • Project schedule
  • Staffing/Training/Safety Plan
    • Staffing – Sources used for obtaining craft workers (union hiring halls)
    • Training – Bona fide registered apprenticeship programs
    • Safety Plan – Accident record and OSHA training programs
definition of evaluation factors9
Definition of Evaluation Factors
  • Wages and Fringe Benefit Plans
    • Wage scales meeting or exceeding prevailing rate in the area
    • Type of fringe benefit and level of contribution
  • Local Economic Benefits Plan
    • Employment for local residents
    • Use of local subcontractors
    • Tax revenue generated for local economy
model best value contracting policy
Model Best Value Contracting Policy
  • Open to all contractors
  • Requests for Proposals (RFPs)
  • Example of best value award method:
  • Evaluation Factors Points
  • Price 100
  • Past Performance 20
  • Management Plan/Schedule 20
  • Staffing/Training/Safety Plan 20
  • Wages & Fringe Benefit Plan 20
  • Local Economic Benefits Plan 20
  • Total 200
responsible employer ordinances
Responsible Employer Ordinances
  • Ordinances vs. Best Value Contracting
    • Ordinances are laws passed by a political jurisdiction requiring components of best value
    • Incorporated into bid specifications and enforceable
    • Contractor may be denied future work for violation of prevailing wage laws, misclassifying workers, bogus apprenticeship programs, failing to hire local residents, etc.
    • Contractor may be fined for violating the ordinance
responsible contractor ordinances
Responsible Contractor Ordinances
  • Examples of Specific Requirements
    • Pay the prevailing wage
    • Provide health insurance for all employees
    • Have access to a bona fide apprenticeship program
    • Classify workers as employees vs. independent contractors
    • Provide appropriate workers compensation insurance
    • Comply with local hiring requirements
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Laborers-Employers Cooperation and Education Trust

Thanks to the Laborers’ New England Regional Office, and Gerald M. Waites, Esq. of the law firm O’Donoghue & O’Donoghue, for the information contained in this presentation.