New bid system gets tested

March 21, 2006

DARRELL L. BREESE/Frontiersman reporter

PALMER - Everything about the process to construct a new career center school facility in the Matanuska-Susitna Borough has been fairly standard. Voters approved a $20 million bond to build the 76,550-square foot facility. Michael Carlson, chief architect with McCool, Carlson, Green presented the design his firm developed to the borough assembly for approval in January.

But that is where business as usual ended for the project and the borough purchasing department changed things up. As part of a pilot program, the contract to build the facility is currently out for bids using the best-value contracting method, instead of the traditional low-bid method.

The 30-acre site for the proposed career center is near Teeland Middle School. The tract is accessed from Seldon Road, but will eventually connect to North Seward Meridian Parkway. The center will be a learning hub with strong ties to business and industry, including five career pathways: IT/business/electronics, architecture/engineering/construction, health sciences/nursing, culinary arts/hospitality/ tourism, and physical fitness/sports science.

This is the second best-value procurement solicitation by the borough. The first time was for the ferry terminal contract in January.

&#8220The goal of the test run with best value is to determine if it will get the best result for the borough,” Purchasing Director Russ Kraft said.

While the lowest cost is at the core of the traditionally used low-bid system, the best-value method considers more than initial cost.

&#8220Price is a critical factor, but so, too, are elements that can affect the overall bid,” Kraft explained. &#8220Under the bid instructions, we have indicated that 60 percent of the evaluation will be based on price. The remaining 40 percent will be scored based on the company's work history, their safety record, their history of change orders and delays.”

The borough is hoping to select the highest quality contractor rather than basing the contract award solely on the lowest bid.

&#8220An inexperienced contrac-tor can win a low bid without properly anticipating the coordination of materials and labor,” Kraft said. &#8220Many projects in the past that came in at the lowest bid have ended up costing more in the end because of change orders, claims and sometimes legal bills.”

Borough Mayor Tim Anderson sees the logic of investing in a quality project that lasts. &#8220What we're trying to do with best-value contracting is provide the residents of the borough and taxpayers with the best product possible,” he said.

A company's investment in the local workforce will also be considered in the rewarding of the contract.

&#8220Bidders that promote apprenticeship training and local workforce development get some extra credit under the bid,” Kraft said. &#8220There was some concern amongst the assembly that the project wouldn't do anything to improve the local workforce, this addition encourages involvement in workforce development to show that the contractor is willing to invest in the future through worker training.”

Currently, Wasilla, Anchorage and the state procure contracts with the best-value system. In addition, 10 other states have also passed best-value laws, according to Kraft, and federal agencies use best-value contracting for some 70 percent of federal construction.

&#8220When the bid process is completed sometime in May, we will gather input from the contractors who participated in both this bid and the one for the ferry terminal,” Kraft explained. &#8220That information will be used to determine if the borough wants to move forward and make the best-value system the standard for all contract needs.”

Kraft anticipates that if the system is approved it will be used to combine the design and construction portions of the two schools that would be constructed if voters approve the general obligation bonds during the May 2 special election.

Contact Darrell L. Breese at 352-2267 or at darrell.breese@ frontiersman.com.