Posts Tagged ‘South Carolina’

DOT Forced to Play by the Rules

Thursday, September 4th, 2008
Two weeks ago the South Carolina Supreme Court decided a case that forced a state agency to play by its own procurement rules. Edward D. Sloan, Jr. frequently brings suits where he believes that governmental agencies are disregarding their responsibilities to follow the rules to the public’s detriment. In this case Sloan challenged an emergency procurement on a road construction project.

The contractor was consistently behind and was terminated for default which meant that its performance bond surety needed to step in and finish the project at no cost to the DOT. DOT received great pressure from the local populace to get the project completed. Turning the project over to the surety would likely cause a 6 month delay and following the standard procurement policy would cause a 4 month delay.

In response to the pressure, DOT changed the termination for default to a termination for convenience and invoked emergency procurement procedures. DOT gave the contract to a subcontractor which was already on the job and was able to start almost immediately. The effect was 6 months saved but an extra cost of $4 million.

Mr. Sloan sued to have the decision set aside arguing there was no emergency which justified DOT’s use of a negotiated contract.

The case was decided under a statute particular to highway procurement rather than the SC Consolidated Procurement Code (SCCPC). DOT argued that it had the power as long as the DOT Director agreed and road safety conditions created the emergency. Sloan argued there was no emergency either as the word is usually understood or under the SCCPC definition of emergency. The Court found that emergency means a sudden, unexpected onset of a serious condition. The road safety concerns existed from the beginning. The court held there was no emergency.

For the full opinion see Sloan v. DOT Op. No. 26534 filed 8/25/2008

Experience and Past Performance as an Aspect of Bidder Responsibility

Tuesday, September 2nd, 2008
Experience and Past Performance

A third consideration in determining bidder responsibility is the bidder’s experience. A poor performance history or lack of experience could cause the bidder to be non-responsible.

The SC Consolidated Procurement Code allows the procurement officer to issue a request for qualifications (RFQ) before issuing the bids. The RFQ “must require information concerning the prospective bidders’ product specifications, qualifications, experience, and ability to perform the requirements of the contract.”

In negotiated procurements, the use of past performance data plays a heightened role. Recent changes to FAR Part 15 require the evaluation of contractor past performance in most negotiated procurements. Interestingly, performance history is considered twice: first in determining whether the bidder is responsible and then in evaluating his proposal.

A Procurement officer’s determination concerning whether experience is adequate will be upheld if it is reasonable.

Past performance and experience are easily confused. Past performance focuses on the quality of the contractor’s work in prior jobs while experience focuses on the type of work the contractor has performed.

Finally, in order to avoid the conundrum set up by an inexperienced contractor being barred form contracting because of a lack of experience and never being able to gain experience because of his lack of experience, the FAR provides: “A prospective contractor shall not be determined responsible or non-responsible solely on the basis of a lack of relevant performance history, except as provided in FAR 9.104-2.
FAR 9-104-1(c)

Fundamental Issues in Competitive Bidding

Monday, August 25th, 2008
Over the next few weeks this blog will discuss two key elements of competitive bidding: bidder responsibility and bidder responsiveness. Ensuring that public bids are awarded only to responsive responsible bidders is essential to fair competition and allowing the public to obtain the best price and service.

Bidder Responsibility

In this article we will begin by looking at the definition of responsibility and the difference between responsibility and responsiveness. One of the primary purposes of public bidding is to allow the people to receive their money’s worth of whatever they are contracting for. Awarding bids only to responsible bidders is one way to guard against default. There are others such as performance bonds and excellent contract administration which are beyond the scope of today’s blog.

The South Carolina Consolidated Procurement Code (Procurement Code) at 11-35-1410 provides the following definition:

(6) “Responsible bidder or offeror” means a person who has the capability in all respects to perform fully the contract requirements and the integrity and reliability which will assure good faith performance which may be substantiated by past performance.

The federal statutes give a lengthier definition that expressly touches on adequate financial resources, ability to comply with the schedule, prior performance record, integrity, organizational controls, skills and experience, adequate facilities, etc. See 41 USC 403(7). The Federal Acquisition Regulation is essentially the same.

Bidder Responsiveness Distinguished

Bidder responsibility and responsiveness are not the same thing. Where bidder responsibility concerns whether the bidder is capable of performing the job, bidder responsiveness refers to the terms of the bid offering to provide exactly what the owner wants to have performed. Sometimes the two concepts can seemingly apply to the same set of facts. For example if the solicitation requires site management by a person with ten years experience and the bid offers a person with five years experience, then the bid could be seen as no-responsive because the bid did not provide what the offeror sought but it could also be viewed as not responsible because the minimum amount of experience was not offered.