Can Volunteers be Used on a Public Works Project?

Can volunteers be used on a public works project?  

Based on a August 17, 2011 blog entry of mine reporting on an audit finding by the Washington State Auditor's Office against the Town of Eatonville performing volunteer labor on a fire station, the answer would seem to be "no."

Auditor Discloses New Information:  However, after my blog entry was published, the Municipal Research and Services Center (MRSC) decided to look into the details of the audit finding.  With additional information disclosed to MRSC by the auditor, it became clear that the reason for the finding is that the "volunteers" were not really true volunteers, but were paid a stipend.

MRSC's Research:  After research by John Carpita, MRSC's Public Works Consultant, who coordinated with the State Auditor's Office, John wrote the following to me on what he learned.  

Below is John Carpita's report on his communications with the State Auditor's Office, and MRSC's advice regarding the use of volunteers.

MRSC's Report:  The finding cited several violations of bid laws, but mainly the failure to contract out the work because the project exceeded the Town’s bid limits.

What is a Cost to the Agency?  The finding was surprising, as MRSC has advised for a very long time that the use of bona fide volunteers and donated materials and equipment is not a cost to an agency per the definition of public works in RCW 39.04.010 and (in this case) RCW 35.23.352. RCW 35.23.352 says that the Town must bid if the cost is over the bid limits shown.  In the case mentioned in this finding, we would have asked how much the total estimated cost is and deducted the value of the labor and other donations.   If the remainder were less than the bid limit, we would have suggested they get 2-3 quotes for the materials or whatever else they needed.  If over the bid limit, then we would have said to either seek bids or absolutely get 2-3 quotes.

Volunteers Were Paid a Stipend:  We (MRSC) requested clarification from the State Auditor's Office. Emmaline Hoffmeister, Assistant Audit Manager, noted (which was not reported in the finding) that the volunteers were paid a stipend for their work, which was a cost to the Town.  Therefore the volunteers were not true volunteers and thus the project was indeed in violation of the bid laws.  Emmaline further confirmed that had there been no stipend paid, there would have been no finding as the actual cost to the Town (for materials and equipment) would have been less than the bid limit.

When Donations Are Acceptable:  Donations of labor, materials, and equipment to accomplish a public works project are acceptable, provided:

1. Develop overall cost estimate without donations.
2. Estimate value of all bona fide donations (bona fide = no cost to agency). 
3. Subtract donation value from estimated cost.
4. If difference is less than the agency bid limits, we (MRSC) recommend 2-3 quotes for additional contracts for labor, equipment, or materials.
5. If difference is more than the agency bid limits, you must get quotes for additional contracts for labor, equipment, or materials, using the small public works roster OR seek competitive bids for the same.” 

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com