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Legislators to consider recommendations for public contracting law

By: Tom Henderson//August 1, 2012//

Legislators to consider recommendations for public contracting law

Tom Henderson//August 1, 2012//

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A legislative work group looking to amend Oregon’s public contracting law may have recommendations ready for lawmakers next month.

Sen. Lee Beyer, D-Springfield

The law may not change significantly. State Sen. Lee Beyer, D-Springfield, said the work group probably will recommend making the law’s controversial construction manager/general contractor provision more transparent while leaving the CM/GC method itself intact.

The CM/GC method lets county and local governments choose contractors for public works projects without accepting the lowest bid in a competitive process. They can simply hire the contractor of their choice.

That angers many contractors, said work group member Jerry Valencia of Bridgeway Contracting LLC in Lowell. Rightly or wrongly, he said, they are seeing plum projects go to larger Portland-area contractors rather than smaller Willamette Valley contractors.

Larger firms can make more sophisticated and elaborate presentations than smaller ones, which can be passed over because 鈥渢hey’re not in the same interviewing process,鈥 Valencia said.

Beyer said the issues surrounding CM/GC are not that simple. He cited some local governments鈥 use of the method.

鈥淭hey’ve said, 鈥榃e鈥檙e not going to use any other process,鈥 鈥 he said. 鈥淭hat’s not exactly what the Legislature had in mind.鈥

Some projects 鈥 such as a school remodel 鈥 probably are best handled through the CM/GC process, Beyer said. But others 鈥 like new school construction 鈥 probably should go to the lowest bidder, he added. Work group members apparently understand that.

鈥淭here is a recognition that some projects benefit the public when all involved work hand-in-hand from the beginning,鈥 Beyer said.

Beyer formed the work group after the 2011 legislative session, when there were numerous attempts to reform Oregon’s public contracting code (ORS 279); however, none of them got past committee.

Rep. Paul Holvey, D-Eugene

“We decided it was too big an issue on which to make snap decisions,” said state Rep. Paul Holvey, D-Eugene.

The work group is chaired by Blake Underwood, the Oregon Department of Justice’s general counsel for transactions. Holvey said the group consists of an impressive array of general contractors, subcontractors, government officials, labor leaders and a few lawyers. But input is not limited to members of the group.

鈥淲e continue to get outside feedback from other people,鈥 Holvey said.

The group’s 25-plus members have been meeting monthly for about a year 鈥 with meetings often lasting five hours or more 鈥 to reach some kind of consensus.

They’re close, Beyer said.

鈥淚 suspect they’ll come up with a recommendation in September so we can draft a bill for the next session,鈥 he said. 鈥淭here is quite a lot of agreement.鈥

Beyer said the bill drafted from the group’s recommendations will likely focus on transparency. The CM/GC process is sound, he said. Contractors and members of the public just want details behind why a government agency used the CM/GC method instead of a low-bid process.

People need to know they are getting the best work possible, Holvey said.

“That’s not always the lowest bidder,” he said.



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