Feds Reject Bid as Non-Responsive for Lack of Original Surety Signature on Bid Bond

The U.S. Army Corps of Engineers (USACE) rejected as non-responsive the bid of TJ's Marine Construction LLC of Belhaven, North Carolina because their bid bond for a breakwater replacement project contained only a photocopy of the surety's signature. 

TJ's Marine appealed the decision to the U.S. Government Accountability Office (GAO) which affirmed the non-responsive determination.

The January 7, 2010 GAO decision rejecting TJ's Marine's appeal stated that "The determinative question in judging the sufficiency of a bid guarantee such as a bid bond is whether it could be enforced if the bidder subsequently fails to execute required contract documents and to provide performance and payment bonds."

The GAO concluded that "The bid bond submitted with the protester's bid did not contain the surety's agent's original signature.  Without referring, after bid opening, to the document containing the surety agent's original signature, the USACE cannot ascertain whether or not there had been alterations to which the surety had not consented and could use as a basis to disclaim liability.  Accordingly, TJs' Marine's bid guarantee cannot be viewed as enforceable based on the information in the possession of the contracting officer at the time of bid opening."

To read a copy of the GAO denial of the bid protest, visit the following website:  http://www.gao.gov/decisions/bidpro/402227.htm

Training on Apprenticeship Utilization Requirements

I provided training on Tuesday, January 19, 2010 for a number of school districts on the apprenticeship utilization requirements on pubic works projects, as required by RCW 39.04.320. 

The training was sponsored by the Washington Association of School Business Officials (WASBO) and was held in at the Edmonds School District offices with a number of other school districts participating in the training through teleconferencing technology.

RCW 39.04.320 affects all school districts in the State of Washington, the Washington Department of Transportation (WSDOT), the Department of General Administration, and all institutions of higher education in the state, and requires, when fully implemented, that 15% of all labor hours on a public works project estimated to cost $1 million or more be performed by apprentices enrolled in a state approved apprenticeship and training program. 

Washington State Legislative Hearings - Week of January 18, 2010

Steve Goldblatt, recently retired, longtime University of Washington Construction Management faculty member specializing in design and construction law, has been covering the legislative scene in Olympia for more than 25 years.

I've invited Steve to contribute guest blog posts on bills under consideration in the Washington State Legislature relating to public works and contracting, architects/engineers, and contractors. 

In this entry, Steve summarizes a number of bills that will receive a hearing in Olympia for the week of January 18, 2010.

• CPARB Membership: HB 2575 would add a regional transit authority representative to the Capital Projects Advisory Review Board (RCW 39.10.220). Hearing on Tuesday, January 19, 2010, at 1:30 p.m. in the House State Government and Tribal Affairs Committee.

• Board and Commission Elimination: HB 2617 would eliminate dozens of boards and commissions, including the Capital Projects Advisory Review Board (RCW 39.10.220) and the Capitol Campus Design Advisory Committee (RCW 43.34.080). Hearing on Thursday, January 21, 2010, at 8:00 a.m. in the House State Government and Tribal Affairs Committee.

• Building Code Council: HB 2775 would make gubernatorial appointments to the State Building Code Council subject to Senate confirmation (RCW 19.27.070). Hearing on Thursday, January 21, 2010, at 8:00 a.m. in the House State Government and Tribal Affairs Committee.
  
  
• Electrical Trainee Classroom Training: HB 2546 would require electrical apprentices and trainees to take 48 hours of approved classroom training biennially (RCW 19.28.161). Hearing on Friday, January 22, 2010, at 8:00 a.m. in the House Commerce and Labor Committee.

• Labor and Industries Electrical Subpoenas: HB 2555 would authorize Labor and Industries to issue subpoenas to enforce Chapter 19.28 RCW. Hearing on Friday, January 22, 2010, at 8:00 a.m. in the House Commerce and Labor Committee.

• Prevailing Wages: HB 1992 would apply prevailing wage requirements (RCW 39.12.020) to construction projects that involve tax incentives, loans provided by a public entity, or public land or property that is sold or leased. This bill didn't come to a vote in committee last session. Hearing on Friday, January 22, 2010, at 8:00 a.m. in the House Commerce and Labor Committee.

• Contractor Registration: HB 2826 would alter penalty reduction conditions by Labor and Industries for first-time contractor registration offenders (RCW 18.27.340). Hearing on Friday, January 22, 2010, at 8:00 a.m. in the House Commerce and Labor Committee.

• Underground Economy Subpoenas: HB 2789 would authorize subpoenas for investigations of underground economic activities by Labor and Industries (RCW 51.04.040), Employment Security (RCW 50.12.130), and Revenue (Chapter 82.32 RCW). Hearing on Friday, January 22, 2010, at 8:00 a.m. in the House Commerce and Labor Committee.
  
  
• Small Business Compliance: HB 2603 would provide businesses with no more than 250 employees a copy of any state law or agency rule violation and 48-hours' opportunity to correct the violation (Chapter 34.05 RCW). Hearing on Friday, January 22, 2010, at 1:30 p.m. in the House State Government and Tribal Affairs Committee.
  
  
• GC/CM Subcontractor Selection: HB 2675 would authorize an alternative selection method for electrical and mechanical subcontractors on general contractor/construction manager projects (Chapter RCW 39.10). Hearing on Friday, January 22, 2010, at 1:30 p.m. in the House State Government and Tribal Affairs Committee.

Training: Developing and Managing RFPs in the Public Sector

Developing and Managing RFPs in the Public Sector

When:  February 10-12, 2010

Where:  Portland, Oregon

Sponsored by: Columbia Chapter of NIGP

For more information and to register, visit NIGP's website.

When Bad Things Happen to Good Contracts

I spoke on Thursday night (January 14, 2010) on the topic of "When Bad Things Happen to Good Contracts: Bid Protests, Claims of Error, and Contracting Scandals."  The audience was the monthly dinner meeting of the Construction Specifications Institute's Puget Sound Chapter.

I spoke about the role and purpose of contracts, the primary and secondary purpose of public bidding, and then told a number of stories from across the nation about some of the more interesting bid protests, claims of error, and contracting scandals - all examples from 2009.

Proposed Legislation Affecting CPARB

The following bills have been introduced in the Washington State Legislature that would affect the Capital Projects Advisory Review Board (CPARB).

• Elimination of CPARB:  HB 2617 and SB 6426 would eliminate CPARB and transfer its duties and those of the Project Review Committee (PRC) to the State Department of General Administration.
  
  
• Transit Membership on CPARB:  HB 2575 and SB 6278 would add one member to CPARB representing regional transit authorities.
  

APWA/MRSC Free Training for 2010

The Contract Administration Subcommittee (CASC) of the Washington State Chapter of the American Public Works Association (APWA) and the Municipal Research and Services Center (MRSC) have announced the lineup for the free classes they will offer in 2010.

All classes will be held in four separate locations around the state: Renton, Everett, Camas, and Yakima, and normally run from 10:00 a.m. to 2:30 p.m.

The following represents the tentative schedule with the month for the training. For details about specific dates, visit the APWA/CASC website.

• Records Management (February)
• Prevailing Wages, Industrial Insurance, and Davis-Bacon (May)
• 2010 Legislative Updates (June)
• Bonds, Liens, and Retainage (September)