Lawrence City Commission to consider procedures for alternatives to traditional bidding process

photo by: Nick Krug

Lawrence City Hall, 6 E. Sixth St., is pictured on May 3, 2016.

Lawrence city commissioners will consider taking the final step in authorizing the city to use methods that deviate from the sealed-bid procedure for construction projects.

At its meeting Tuesday, the commission will consider procedures for alternative project methods. In January, the commission approved an ordinance that allows the city to use alternative methods, but with the caveat that detailed procedures be created and approved before it goes into effect.

One of the benefits of the alternative methods that city staff has noted is that the city is able to select contractors based on their qualifications, rather than having to go with the lowest bidder. In January, some commissioners expressed concerns that the prices of some city projects have been overestimated in the past, and that not requiring sealed bids for all projects may result in the city getting overcharged.

Assistant Director of Utilities Melinda Harger said city staff will follow a process to evaluate the best value. Harger said that even when a method does not require hard bids, that cost will still be a factor when designers and contractors are selected.

“Each one of (the methods) have checks and balances for the cost in some way,” Harger said.

For alternative methods, a selection committee comprised of at least three city employees will evaluate proposals, according to the proposed procedures. Cost would be part of the criteria for a project proposal, but is evaluated separately and cannot be weighted more than 35 percent. For the design-build method, for example, a designer and contractor team is selected at the beginning of the process based on qualifications and “best value,” with a guaranteed price provided before construction begins, according to the procedures.

Harger said even though the design-build method will not include hard bids, that cost will still be part of the consideration.

“Cost has to be in there, but it can’t be weighted more than 35 percent,” Harger said. “That’s what makes it different than a traditional design-bid-build where all you care about is the low number. Here, cost is a factor, but it’s not the only factor.”

For the construction manager at risk method, there will still be some bidding involved. The city must require the selected construction manager to get multiple bids from subcontractors for all the major disciplines or trades to ensure competition, according to the procedures. It also states the city must require an open-book policy to ensure transparent accounting of project cost.

In addition to guidelines for the contractor evaluation and selection process, the procedures provide guidelines for project management and oversight. To develop the guidelines, city staff used research compiled by the Center of Procurement Excellence and worked with Brian Lines, an assistant professor in the University of Kansas’ civil, environmental and architectural engineering department, according to a city staff memo to the commission.

If the procedures are approved, the commission can authorize the city manager to use an alternative method for a project if the commission finds it is in the public interest. Harger said that if the commission approves the procedures, the city plans to propose that the construction manager at risk method be used for the new police headquarters. She said that proposal would likely be brought to the commission May 15.

The City Commission will convene at 5:45 p.m. Tuesday at City Hall, 6 E. Sixth St.