Governor’s Management Improvement Commission Recommends Changes In State Procurement Policies and Procedures
In November 2000 the Governor’s Management Improvement Commission issued its report of the extensive evaluation efforts undertaken to create “a high-performance state government delivering excellent customer service at the best possible value.” The commission was charged with two specific goals: (1) to identify improvements to operations for improved customer service; and (2) to identify areas for cost savings through improved processes and systems, elimination, consolidation, reorganization or through other means. It then and evaluated the policies and procedures of virtually every aspect of State government in an effort to provide recommendations for significant budget savings. The Commission, made up of 300 volunteers from government and 140 from the private sector, recommended significant revamping of the way construction services are procured by the State.
In the area of procurement the MIC 2000 recommendations included the expansion of the utilization of electronic procurement and the adoption of “Best Value” criteria for award of contracts. The “Best Value” procurement would replace the current “lowest responsive and responsible bidder” concept and allow flexibility to consider factors other than price in award decisions. The Commission noted that Kentucky and California have recently adopted the “Best Value” approach. Hand in hand with the “Best Value” criteria was a recommendation to allow the State to “Debar” contractors for such actions that were clear negligence or “failure to adhere to contractual obligations.” It seems clear that adoption of such changes in procurement will require close scrutiny to assure objective evaluation is central to the process.
Most significantly to construction contractors throughout Ohio is the Commission recommendation to “revise the statutory requirements for multiple prime bids in Public Works construction projects to permit alternative project delivery methods.” Ohio is one of only four states that require Public Works construction contracts to be bid and awarded on the basis of separate primes (electrical, mechanical, plumbing, and general contracting). The Commission notes particularly that Ohio does not allow “design-build” construction of Public Works projects for the State. It was estimated that the use of alternative delivery systems could save Ohio $50 –150 million per year. The experience of other states that allow use of “design-build” delivery of Public Works projects suggests that when properly executed significant cost and time savings are gained.
It should be recognized that the Commission efforts were supported by many leaders in the construction industry as well as associations such as the Ohio Conference of NECA Chapters and the Ohio Mechanical Contracting Industry. Among the contracting community leaders participating in the Commission efforts were representatives from The Electric Power Equipment Company, Kokosing Construction Company, M-E Companies, The Superior Electric Company, and the Julian Speer Co.
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