State Charged with Public Works Procurement Process Reform

Under the terms of legislation approved this year, the Washington State Department of Enterprise Services (DES) will be conducting an ambitious review of the state's current public works procurement processes and will make reform recommendations.  

The state's capital budget bill (ESB 6074 - Section 1022) outlined the charge to DES but allocated only $75,000 to complete the quick turn-around study.

Focus of report:  Because of the limited funding for the study, DES may concentrate some of its focus on state agencies, although the legislation broadly applies to the state's "current public works procurement processes."  The report is required to include historical data on:

• Use of change orders
• Use of Job Order Contracting
• How competitive public works contracts are advertised
• Contract closeout procedures

In addition, DES told the Capital Projects Advisory Review Board (CPARB) on May 10, 2012 that the study may address a number of other topics, including the following:

• Best value procurement
• Use of electronic signatures
• Standardizing bidding thresholds for all agencies
• Prequalification of contractors on Design-Bid-Build projects

Labor union concerns:  The impetus for the study came from the state employees labor union (Washington Federation of State Employees) and the impact that some public works processes are having upon their work.  For example, union representatives expressed concern in testimony to the Legislature that some public works change orders are outside the original scope of work of the project and represent work that state employees, and not contractors, should be performing.

Stakeholder input:  In developing its report and recommendations, DES may consult with the Capital Projects Advisory Review Board (CPARB) for advice and assistance, and will also solicit input from various stakeholders. 

Other concurrent studies:  In addition to the study being conducted by DES, two other organizations are conducting reviews of public works contracting, specifically the alternative public works contracting processes authorized by RCW 39.10:

• Capital Projects Advisory Review Board (CPARB)

• Joint Legislative Audit and Review Committee (JLARC)

Public works legislation in 2013:  It is anticipated that next year the Legislature will be reviewing significant legislation addressing public works procurement and contracting procedures:

• CPARB:  CPARB's intent is to recommend legislation to the Legislature in January 2013.  That legislation will take into account recommendations from JLARC as well as CPARB's Reauthorization Subcommittee.  It is anticipated that the legislation will make recommendations for certain changes to the GC/CM, Design-Build, and Job Order Contracting laws, and will authorize continuation of these alternative methods beyond June 2013, which is when the current law expires. 

• DES:  DES is required to submit its report to the Legislature and Governor by December 15, 2012, and to include draft legislation to implement the recommendations in its report.  This legislation will also presumably be considered by the Legislature in 2013.

Overlap between studies:  All three reviews (DES, CPARB, JLARC) will be examining Job Order Contracting processes and practices.

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com