2013 Design-Build Conference

2013 Design-Build Conference & Expo 

When:  November 4-6, 2013

Where:  Las Vegas, Nevada

Sponsored by:  Design Build Institute of America

Information and Registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Avoiding Conflicts of Interest with Selection Committee Members

One of the issues that can cause challenges, protests, and a lack of public confidence in the evaluation of proposals and qualifications on RFPs and RFQs occurs when a member of the evaluation committee has a conflict of interest with one or more of the proposers.

Subjective nature of evaluation process:  The evaluation process for selecting consultants and service providers based on RFPs or RFQs is, by its nature, more subjective than making selection decisions on bids where an award is based on price only.

Types of conflicts of interest:  Conflicts of interest can occur in the following situations:

• An evaluator has a financial or personal relationship with one of the proposers.  

• A member of the evaluator's immediate family has a financial or personal relationship with one of the proposers.

• There is an appearance or perception of a conflict of interest for an evaluator or member of the evaluator's immediate family, which, even if not real, may be just as damaging or problematic to the process, the project, and the reputation of the evaluator.

Require evaluators to sign statement:  My practice has been to require members of the evaluation committee to sign a Conflict of Interest and Confidentiality Statement before they are given the proposals to review. 

Here's language on the conflict of interest that I've included in the statement:

I understand and agree that I do not have a conflict of interest of a financial, relational, or other nature with any of the firms or key personnel of any of the firms I will be evaluating, and that there is no perception or appearance of such a conflict of interest that could arise.  I further agree that no member of my immediate family has any such conflict of interest.  "Immediate family" means a spouse or domestic partner, child, child of a spouse or domestic partner, sibling, sibling of a domestic partner, brother-in-law, sister-in-law, parent, parent of a spouse or domestic partner, a person for whom I am a legal guardian, or a person claimed as a dependent on my most recently filed federal income tax return.  The firms who have submitted proposals for this project are: [list firms here]

Practical steps:

• Code of Ethics:  Review your agency's code of ethics governing behavior of employees involved in procurement and contracting.  If you don't have such a code, develop one.

• Conflict of Interest Statement:  Ensure that evaluators of proposals and qualifications sign a Conflict of Interest and Confidentiality Statement before they are provided with proposals and qualifications to review and score.  If there is a conflict of interest, or an apparent conflict of interest, they should be replaced on the evaluation committee with another member who does not have a conflict of interest.

• Training:  Provide regular training for your agency's personnel on the importance of ethics in public procurement and contracting.

Note:  This blog posting is a repeat of one from December 9, 2012. 
Mike Purdy's Public Contracting Blog 
© 2012-2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

State Issues New Policy on Filing Affidavit of Wages Paid on Behalf of Subcontractor

The Washington State Department of Labor and Industries has issued a new policy dated August 11, 2013 revising their procedures on when a contractor may file an Affidavit of Wages Paid on behalf of a subcontractor that has ceased operations or failed to file the form.

Click here to view L&I's revised policy.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

70th Annual Pacific Northwest Purchasing Conference

70th Annual Pacific Northwest Purchasing Conference and Affiliate Leadership Workshop
 
When:  October 23-25, 2013

Where:  Spokane, Washington (Northern Quest Resort and Casino)

Sponsored by:  National Association of Purchasing Management (NAPM) - Spokane

Breakout Sessions include the following:

• Public Construction Contracting
• Team Building
• Spend Analysis
• Emergency Preparedness
• Setting Furniture Standards
• Negotiating for Success - and Building Relationships at the Same Time
• Finding and Selecting a Responsible Contractor
• Managing Stress - Establishing Your Practice
• Sustainability
• Professionalism, Virtue, and the Life of a Purchasing Manager
• Performance Metrics
• The Art of Persuasion
• Implementing Risk Management Practices
• Project Management - What is the Value?
• Writing Statements of Work
• Public Procurement in a Fishbowl
• The Lean Production System and Supply Chain
• Principles of Price and Cost Analysis
• Supply Management
• Lean/Six Sigma
• Situational Leadership

Information and registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Training: Tools for Contractors to Obtain Bonding

Tools for Contractors to Obtain Bonding:  One of the difficulties that small contractors on public works projects often face is the ability to obtain required payment and performance bonds. When making bonding decisions, sureties often evaluate a contractor's business development strategies and plans, including their approach to marketing, sales, and identification of market segment. This workshop is designed to provide small contractors with an overview of what bonding companies look for in a business development plan.

When:  September 26, 2013 (5:00 p.m. to 7:30 p.m.)

Where:  Shoreline, Washington (WSDOT Shoreline Facility, 15700 Dayton Avenue North)

Speaker:  Darryl Russell

Cost:  No cost, prior registration required.

Sponsored by:  Small Business Transportation Resource Center (SBTRC) of the U.S. Department of Transportation

Information and registration:  Click here.

Mike Purdy's Public Contracting Blog
© 2013 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com 

Follow-up: Need to Register for Free October 9 Training

This is a follow-up to my blog of September 15, 2013 about the free 2 hour training that I will be providing in Lacey, Washington on October 9, 2013.

You do need to register in order to attend, and space is limited. 

Additional details:  The training on "Best Practices in Developing Bid Documents and RFPs/RFQs" is part of the Thurston County Chamber’s annual Business Showcase.  There will be a "Purchasers’ Row" at the event, a great opportunity for local government to connect with area businesses. The morning workshop I will be teaching from 8:00 a.m. to 10:00 a.m. is free for public procurement staff, however space is limited and priority registration will be given to those participating in the full event. 

More information:  Please contact Alisha Blain, Event Coordinator at the Chamber at (360) 357-3362 or events@thurstonchamber.com for more information. 

Register now to attend:  Click here to register for the free training. 

Mike Purdy's Public Contracting Blog
© 2013 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com

Job Opening: Senior Contracts Specialist

Sound Transit

• Position:  Senior Contracts Specialist (2 positions available)

• Location:  Seattle, Washington

• Closing Date:  Open until filled

• Salary:  Negotiable
  

• Job Summary:  Plans, prepares and manages the procurement of technology, systems, professional services, equipment and other goods and services;  including those representing the highest degree of complexity or importance for the agency; leads project managers in the selection of procurement methods and strategies; prepares solicitations and awards contracts in accordance with policies, procedures and laws and regulations; evaluates specifications and scopes of work; performs research and conducts negotiations; provides procurement expertise and assistance and guidance and support in contract administration.

• For More Information and to Apply:  Click here.

Mike Purdy's Public Contracting Blog
© 2013 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com

Training: Best Practices in Developing Bid Documents and RFPs/RFQs

Best Practices in Developing Bid Documents and RFPs/RFQs

When:  October 9, 2013 (8:00 a.m. to 10:00 a.m.) 

Where:  Lacey, Washington (Saint Martin's University Pavilion/Worthington Center) 

Cost:  Free

Instructor:  Mike Purdy

Agenda:

• Types of Contracts

• Consultant Contracting
• Bids vs. Proposals vs. Qualifications
• Qualifications Based Selection (QBS)
• Key Provisions in RFPs and RFQs

• Public Works Contracting
• The Confusing World of Public Works
• Components of Bid Documents

• Managing Documents
• Principles of Preparation
• Addenda
• Document Control
• Long Term Review of Solicitation Documents
• Training

• Surviving an Audit

Sponsored by:

• Washington PTAC (Procurement Technical Assistance Center)

• Thurston County Chamber

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Auditor Opinion on Whether Cash and Check Bid Deposits Should Be Deposited

In my blog posting of  February 13, 2013, I referenced RCW 43.09.240 that seems to require that bid guaranties on public works projects in the form of cash or check (certified or cashier's) should be deposited within 24 hours of receipt instead of keeping the bid guaranty and returning it to the bidder after a contract has been executed.

State Auditor's opinion:  A handful of blog readers asked whether the State Auditor's Office had weighed in on whether this was a correct interpretation of state law.  By email, the Auditor's Office recently responded to the Municipal Research and Services Center (MRSC), who had asked the same question I had asked of them.

Here's the response that MRSC received from Scott Bills, Assistant Audit Manager, on May 7, 2013:  

"Yes, cash should be deposited and checks should be cashed upon receipt and a new check issued to the bidders not awarded the contract.  It is a good internal control.  How else would the entity know whether the funds were actually in the bank or not unless the check is cashed?"

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Training Conference and Trade Show

Washington State Training Conference and Trade Show (Department of Enterprise Services)

When:  October 29-30, 2013 (8:30 a.m. to 4:00 p.m.)

Where:  Tacoma, Washington (Greater Tacoma Trade & Convention Center, 1500 Broadway)

Information and registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Job Opening: Prevailing Wage Program Manager

State of Washington, Department of Labor and Industries

• Position:  Prevailing Wage Industrial Program Manager

• Location:  Tumwater, Washington
  

• Closing Date:  Open until filled

• Salary:  $82,000 to $92,000 annually
  

• Job Summary: Manage a team of 16 with 5 direct reports in L&I's Prevailing Wage Program.  Establish connections with high-level policy and decision makers in labor, business, and public agencies.  Reasoned, methodical decision making and ease with communicating these decisions in writing and through public speaking on controversial and difficult topics.  Interact with interested stateholders to explain L&I's positions and actions relating to Prevailing Wage enforcement.  Analyze legal documents and evidence to determine how prevailing wage laws, rules, and policies apply to varied factual situations.

• For More Information and to Apply:  Click here.

Mike Purdy's Public Contracting Blog 

© 2013 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Demystifying Public Works Bidding and Contracting

On September 5, 2013, I was in Ephrata, Washington providing an all day training session for the Grant County Public Utility District staff on Demystifying Public Works Bidding and Contracting.

Here's an outline of the training I provided:

Types of Public Works Contracts

• By agency staff
• Advertised Public Works
• Small Works Roster (Limited public works)
• On-Call Public Works
• Alternative Public Works (GC/CM, Design-Build, Job Order Contracting)
  

Bid and Agency Limits on Performing Public Works

What is a Public Work? 

• What is Ordinary Maintenance?
• Is Maintenance a Public Work?

Why Aren't Bidders More Careful?

• Why Do Bidders Make Mistakes?
• Missing Bid Prices
• Conflict Between Numbers and Words
• Bid Calculation Errors
• Claims of Error

Is Your Bidder Playing Games?

• Bid is Too Low
• Unbalanced Bids
• Conditioned or Qualified Bids

Will the Real Low Bidder Please Stand Up?

• Additive and Alternate Bids
• Tie Bids
• Responsive Bids
• Responsible Bidders
• Local Bid Preference
• Bid Protests and Appeals

When You Don't Want a Check

• Purpose of Bid Guarantees
• Types of Bid Guaranties
• The Risks of Checks
• Are Bid Guarantees Required on Small Works Roster Projects?
• Amount of Bid Guarantees
• Restrictions on Bid Bond Amounts
• What is a Power of Attorney?
• How Much Does a Bid Bond Cost?
• When Should You Return Bid Bonds?
• Checklist for Bid Bonds

Payment and Performance Bonds

• Purpose of Payment and Performance Bonds
• Why Should You Get 2 Separate Bonds?
• Bonds vs. Insurance
• Are Bonds Required on All Public Works Projects?
• When Should the Bonds Be Obtained?
• What Happens if You Fail to Get the Bonds?
• Should the Bonds Cover Change Orders?
• Should the Bonds Cover Sales Tax?
• Are Bonds Ever Forged?
• What Happens if the Contractor Defaults?
• Checklist for Bonds

When Bad Things Happen During Construction

• Front Loaded Schedule of Values
• Dealing with a Change Order Artist
• Prevailing Wages Not Paid
• Subcontractors and Suppliers Not Paid
• Work Not Completed on Time
• Punch List Work Not Completed
• Warranty Work Ignored by Contractor

Public Works Contract Close-out

• Who Does Retainage Protect?
• Completion Dates
• Filing, Renewing, and Releasing Claims
• Pre-Claim Notices
• Foreclosure and Payment
• Release of Retainage
• What Happens if There's Not Enough Retainage
• Check Your Bidding and Contract Documents

Questions:  If you'd like to talk about me providing this training for your agency or association, please contact me.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Training: Public Contracts and Procurement Regulations in Washington

Public Contracts and Procurement Regulations in Washington

Where and When:

• Tacoma - September 24, 2013 - 8:30 a.m. to 4:30 p.m.
• Renton - September 26, 2013 - 8:30 a.m. to 4:30 p.m.

Agenda:

• Insurance Coverage in Public Works Construction (Thomas F. Ahearne)

• Public Bidding Procedures and Bid Contests (Thomas F. Ahearne)

• Public Works Bonding in Washington State (William L. Cameron)

• Current Developments in Public Contracting (William A. Linton)

• Changes, Claims and Common Issues in Public Contracting Disputes (Meredith L. Thielbahr)

Cost: $359

More information and registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Changes to My Blog

Repeat of popular blogs:  Over the next couple of months, I'll be working on a couple of special large projects that will take up a lot of my time.  As a result, you'll notice there will be some blog postings that are repeats from some of my most popular postings from the past.

Search the blog:  Many of you interact with my blog primarily through the emails you receive, so you may not be aware that you can also go to the actual blog home page where you can search by the following:

• Word or phrase (Search this Blog)

• Subject or Topics (Archives by Subject)

• Date (Archives by Date)

• Popular blog postings from the past (Popular Blog Posts).  I just added this new feature.

Job opportunities:  I will continue to post procurement and contracting job opportunities on my blog at no cost.  I've also created an optional new section on the right hand margin of the blog highlighting job opportunity links for which there will be a charge.  I charge for posting job opportunities outside of Washington State.  Click here for more information.

Reference pages:  You will note on the right hand side of the blog toward the bottom there is a section entitled "Reference Pages" with pages for the following:

• Design-Build Projects between $2 and $10 million
• Salary History for Purchasing and Contracting Positions
• Early Subcontractor Selection on GC/CM Projects
• Public Agencies Certified for Use of Alternative Pubic Works Contracting
• Job Opportunities - Payment Information

Questions or comments:  If you have any questions, comments, or suggestions about how I can improve my blog, please contact me.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

New Law on Affidavits of Wages Paid on Federally Funded Transportation Projects

In 2013, the Washington State Legislature approved  SHB 1420 that changes the timing for when public agencies must receive the "Affidavit of Wages Paid" from the contractor and all subcontractors on federally funded transportation public works projects.

Affidavit required prior to final acceptance:  Prior to the effective date of the new law on July 28, 2013, which modifies RCW 39.12.040, a public agency was required to obtain the Affidavit of Wages Paid following final acceptance of a public works project.  The new law adds the following language:

On a public works project where no retainage is withheld pursuant to RCW 60.28.011(1) (b), the affidavit of wages paid must be submitted to the state, county, municipality, or other public body charged with the duty of disbursing or authorizing disbursement of public funds prior to final acceptance of the public works project."

No retainage on federally funded transportation projects:  SHB 1420, in order for the state to be in compliance with U.S. Department of Transportation regulations, also requires that public agencies not withhold retainage on federally funded transportation projects.  The protected parties of retainage must instead be protected by the provisions of the Payment Bond.  Agencies will need to review their Payment Bond language on federally funded transportation projects to ensure that the state departments of Employment Security, Revenue, and Labor and Industries are protected under the terms of the bond.  Click here for a previous blog posting about the "no retainage on federally funded transportation projects" requirement.

Timing of Affidavit and Notice of Completion of Public Works Project:  As a reminder, the State Department of Labor and Industries recently make an administrative change requiring that all Affidavits of Wages Paid must be on file before the public agency sends the Notice of Completion of Public Works Project to L&I.  Click here to read my previous blog posting on this subject.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Training: Washington Construction Law

Washington Construction Law

When:  September 11-12, 2013 (9:00 a.m. to 5:00 p.m.)

Where:  Seattle, Washington (exact location to be determined)

Agenda and Speakers:

• New Developments in Washington Construction Law (Paul R. Cressman, Jr.)

• Washington State Public Works Competitive Bidding and Bid Protests (Arnold R. Hedeen)

• ABCs of Construction Contracting: Creating a Contract You Can Live With (Alan Bornstein)

• Integrated Project Delivery (Scott R. Sleight)

• A View from the State (Karin L. Nyrop)

• Permitting and Environmental Considerations (James M. Lynch)

• Construction Changes/Differing Site Conditions (John P. Ahlers)

• What Happens When Someone in the Chain Goes Bankrupt? (Jerry N. Stehlik)

• Discovery Issues in Construction Claims (Andrew L. Greene and Brendan J. Peters)

• Federal Construction Law - New Developments (Bruce P. Babbitt)

• Claims Against Design Professionals (Stanton P. Beck)

• Key State Tax Considerations for Construction Projects (George C. Mastrodonato)

• Ethical Considerations for Construction Lawyers (John A. Strait)

• Insurance in the Construction Industry (J. William Ashbaugh)

• Lien and Bond Claims: Dealing with Sureties (Alexander A. Friedrich and Kerry Lawrence)

• Construction Mediation (Henry C. Jameson)

Cost: 

• $550 - Government employees
• $650 - Single registration
• Other fees for different categories 

Information and registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Training: Changes in Washington's Alternative Public Works Processes

Washington Alternative Public Works Processes - How Do They Affect Me?

When:  September 10, 2013 (11:30 a.m. to 1:00 p.m. - lunch provided)

Where:  Redmond, Washington (City Hall, 15670 NE 85th St.)

Sponsored by:   APWA Washington State Chapter

More information:  Click here.

Registration:  Email Sam Yaghmaie at syaghmaie@whpacific.com.  Space is limited.  Respond by Monday, September 9, 2013

Note:  This is a different training session on the revisions to RCW 39.10 than the one on September 17, 2013 that I posted previously on my blog.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com