Davis-Bacon Prevailing Wage Compliance

Many public agencies and contractors are being faced for the first time with unraveling the complexities of managing compliance with federal Davis-Bacon prevailing wage requirements.  Below are two different approaches: training and outsourcing.

DAVIS-BACON TRAINING

 

Webinar:  How to Fulfill Your Certified Payroll Requirements

When:  Wednesday, November 17, 2010 (11:00 a.m. Pacific Time - for 90 minutes)

Sponsored by:  Associated Builders and Contractors (ABC)

Speaker:  Nancy Smyth, President of Sunburst Software Solutions

Information and Registration:  Click here.

DAVIS-BACON OUTSOURCING

Faced with monitoring Davis-Bacon federal prevailing wage requirements on four upcoming capital construction projects, the Seattle School District has decided to manage compliance with Davis-Bacon requirements not with their own staff, but by outsourcing the compliance function.  The school district has issued a Request for Proposals (RFP) to obtain the services of an outside firm to manage Davis-Bacon compliance.

Duties of the selected firm will include:

• Working with the District's project managers to assure compliance with Davis-Bacon
• Construction monitoring, including reviewing and overseeing contractors' payroll compliance, checking and documentation, and closeout
• Ensuring that all legal requirements for contractor forms, logs, rates, etc. have been met and submitted to federal agencies and the District's project manager

The RFP is available on the Builders Exchange website (www.bxwa.com).  Click on "Posted Projects," "Goods and Services," and "Seattle Public Schools Goods and Services."

OTHER TRAINING

I've been approached by one public agency recently about developing and providing training for their staff on federal Davis-Bacon prevailing wage monitoring and compliance.  It's a class I may be developing soon.  Please contact me if this is something you would be interested in having me present for your agency, or at a class with staff from different agencies.

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com

Prevailing Wages Scopes of Work Proposed for 3 Classifications

The Washington State Department of Labor and Industries is proposing to adopt scope of work descriptions for three classifications of labor for which prevailing wages exist, but not descriptions.

Public Hearing:  A public hearing will be held on December 9, 2010 at 2:00 p.m. at L&I's headquarters in Tumwater, Washington to consider testimony on the proposed scope of work descriptions for the following three classifications:

• Dredge workers
• Truck drivers
• Ready mix truck drivers.  

Written Comments:  Written comments may also be submitted to L&I by e-mail at yous235@lni.wa.gov or by mail to Sally Elliott, Specialty Compliance Services Division, PO Box 44400, Olympia, WA 98504-4400.

Schedule for Adoption:  The changes, if adopted, would be added to the Washington Administrative Code (WAC).  L&I hopes to adopt the new regulations on January 18, 2011 with a tentative effective date of March 1, 2011.

Read the Proposal:  Click here to read the proposed scope of work descriptions for dredge workers, truck drivers, and ready mix truck drivers.

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com

Determining the Sufficiency of a Bid Bond

When a public works construction project requires the submission of a bid bond with the bid, under what circumstances should the bid be rejected as non-responsive for failure of the bidder to provide a sufficient bid bond?

Is the Bid Bond Enforceable?  Generally, the key question to ask about any irregularity in a bid bond is whether the bid bond would be enforceable with the surety (bonding company).  If the bid bond could not be enforced, the bid would typically be considered non-responsive.

No Surety Signature:  For example, if the bid bond was not signed by the surety or the surety's representative, the surety would argue that there was no agreement on their part to provide the bid bond.  In such a case, the bid would probably be rejected as non-responsive.

Different Names:  But what happens if the name of the bidder on the bid form and the name of the bidder in the bid bond (principal) are different?  In a recent case before the U.S. Government Accountability Office, based on specific facts, GAO ruled that a discrepancy in the names of the bidder and the bid bond principal still rendered the bid bond enforceable because the record showed that the bidder and the bid bond principal were, in fact, the same entity, and the bid was responsive.  In different situations, however, a discrepancy between the name of the bidder and the name of the bid bond principal could render a bid non-responsive.   Click here to read the 4 page GAO decision.

Consult Your Attorney:  Bid responsiveness questions are best handled on a case-by-case basis and with the advice of your attorney.

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com

Training in North Carolina

Basic Principles of Local Government Purchasing

When:  December 6-9, 2010 (4 days)

Where:  University of North Carolina-Chapel Hill (School of Government)

Cost:  $385

Content:  This course is designed for new local government purchasing officials and covers the basic principles of purchasing, including legal aspects of purchasing and construction contracting; purchasing concepts and terms; the purchasing process; use of manuals; use of the Internet in purchasing; budgeting; accounting and fiscal control; disposal of surplus property; conflicts of interest; and professional development.

More Information:  Click here.

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com

Small Businesses Struggle to Get Government Construction Contracts

Small contractors, and especially minority and women owned businesses, have historically had a difficult time competing for public works projects as either general contractors or subcontractors.  

Here are three recent developments in this area:

Los Angeles:   In a recently released 18 page report entitled "The Case for Minority Business Contracting Reform," the Greater Los Angeles African American Chamber of Commerce called for the city to make changes to encourage greater use of  small, local businesses owned by minorities and women in the city's contracting.  The State of California is constrained by provisions of  Proposition 209 approved by the voters in 1996.  Click here for a news article from the Los Angeles Times from October 31, 2010.

Seattle:  The law firm of Oles Morrison Rinker & Baker is presenting a two hour breakfast training meeting entitled "A New Era for SBA: What You Need to Know About Doing Business As, or With, a Small Business."

• When:  Tuesday, November 16, 2010 (7:00 a.m. to 9:00 a.m.)

• Where:  Seattle, Washington (Ruth's Chris, 727 Pine Street)

• More Information and to Register:  Click here.

Washington State:  After hearing comments from a number of minority businesses at the October 28, 2010 meeting of the Capital Projects Advisory Review Board (CPARB), the board voted to establish a task force to address strategies for opening up opportunities for small businesses, especially minorities and African American businesses, in obtaining work on capital projects (design and construction).

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com

APWA (Oregon/Washington) 2011 Spring Conference

 The Oregon and Washington chapters of APWA (American Public Works Association) have announced their joint spring conference for March 29, 2011 through April 1, 2011 in Vancouver, Washington.

For more information, visit APWA's website.

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com

ABC Urges Army Corps of Engineers to Not Use Project Labor Agreements

The Associated Builders and Contractors (ABC) has filed comments opposing adoption of Project Labor Agreements (PLAs) by the U.S. Army Corps of Engineers on projects in Georgia, Kentucky, and Connecticut.

PLAs are strongly supported by labor unions and contractors who are signatory to collective bargaining agreements, but are opposed by merit shop or non-union contractors and associations such as ABC.

In a November 3, 2010 press release, ABC argued that PLAs cause public works projects to be more expensive, and do not deliver the benefits promised.  

Click here to read the ABC's press release, which includes links to their comments to the Army Corp of Engineers.

Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates) 

http://PublicContracting.blogspot.com