A $71,284 addition to a town's fire station was completed by volunteers when the town's competitive bid limit required any public works project over $45,000 to be competitively bid.
Audit Finding Issued: The Washington State Auditor's Office issued a finding against the Town of Eatonville for failing to competitively bid the project through either the town's Small Works Roster or through an advertised invitation to bid. The town also failed to complete a cost estimate for the project as required by state law.
Process Deficiencies: The audit finding noted the following deficiencies in the town's process:
- Violation of the competitive bidding requirements of RCW 35.23.352
- Increased risk by not obtaining liability insurance from the volunteer firefighters
- Not obtaining a performance bond to ensure successful completion of the project
- Contractors did not have the opportunity to bid the project
- Prevailing wages were not paid
Read the Audit: To read the audit finding, click here.
Mike Purdy's Public Contracting Blog© 2011 by Michael E. Purdy Associates, LLChttp://PublicContracting.blogspot.com
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