Reps. Sam Graves (R-Mo.) and Richard Hanna (R-N.Y.) recently introduced two pieces of legislation that they said would bring more efficiency and cost-savings to the construction contracting process.
Graves, the House Small Business Committee chairman, sponsored the Design Build Efficiency and Jobs Act of 2013, which would decrease the cost for both the government and small businesses when the government buys design-build services.
The federal government currently solicits proposals for design-build contracts through a cost-intensive, single-phase procurement process. A recent hearing held by the Small Business Subcommittee on Contracting and Workforce revealed that the cost of bidding on the jobs could exceed 3 percent of the value of the contract, which poses a barrier to entry for small firms and excludes many qualified firms from the market.
The proposed bill would require a two-phase process that would allow the government to assess technical qualifications in the first round, but would not ask small businesses to expend significant funds unless they make the list of the top five most qualified, competitive companies in the second phase.
Graves said the proposed process would save the government time and money and would allow businesses to reserve their bid and proposal funds for contracts where they will be highly competitive.
“Because the federal government spends half a trillion dollars on contracted goods and services, the government owes it to taxpayers to make sure their money is used wisely and efficiently,” Graves said. “If the bid and proposal process can be streamlined to make it more efficient and cheaper for all involved, without sacrificing quality, we should do it.”
Hanna, the chairman of the Subcommittee on Contracting and Workforce, sponsored the Commonsense Construction Contracting Act of 2013. The proposed bill would change the way the federal government chooses construction services, ensuring a more thorough bidding process that would be beneficial to both the taxpayer and government.
Hanna worked in the construction industry for 30 years and said the current system of reverse auctions for bidding does not make sense because it fails to guarantee the lowest price, leads to imprudent bidding, and fails to ensure that the winning bidder is responsive and responsible.
“The Commonsense Construction Contracting Act directs the government to use better methods for choosing construction and design services – so that taxpayers get the best value possible and small businesses, as well as the jobs they support, are protected from unscrupulous bidding behavior,” Hanna said.