17607_PMAA_Authority_June_2024
18 The Authority | June 2024 P rocurement B est P ractices By The PennBid Team Ah, the project bidding season is upon us! That means authority staff and consultants are incredibly busy working through the laundry list of procurement requirements which, while not difficult, can be very time-consuming. Many of the processes followed today originated 40 to 50 years ago, when technology, resources, and the overall business environment were quite different. With regulations changing very little from one year to the next, many well- intentioned individuals continue to do the same thing time and time again, eventually leading to purchasing processes that don’t quite align with today’s environment. However, discovering and making minor changes, be it through technological advancements or just adopting new strategies, might yield reliable and repetitive cost and time-savings. This article will explore some low- risk, high-yield opportunities within the procurement process and offer some best practices to maximize your time and resources. By taking a fresh look at some basic, yet overlooked elements, authorities and their consultants can get results that have a positive – and significant – impact on overall project participation. What’s In a Name? Making sure that the project title and description are easy to understand may seem obvious; however, all too often, project owners use unnecessary jargon, embellish a title to make a project sound more complex than it is, or use an overly generic project name. Good, highly desired vendors and contractors are busy. If these individuals can’t figure out what you want by quickly scanning the project name, they might not even take the time to figure that out, potentially missing out on the opportunity. Using focused keywords, such as “construction,” “demolition,” or “design & inspection” in the project title can go a long way toward catching bidders’ attention. Clarity and Expectations Although seemingly apparent, the more detailed the project scope, the more accurately bidders can price their submissions. It may be appealing to have a designer spend less time on plans and specifications for a simple project, that can, at times, be penny-wise and pound-foolish, as the adage goes. Complete and detailed plans, specifications, and expectations not only minimize opportunities for bidders to seek change orders, but also can provide critical performance measurement tools to track progress during the project. Beyond the scope of work, this can also allow an authority to define its expectations, establish baseline performance standards, and describe additional metrics that proposers must comply with. You can also explain how their submissions will be objectively compared. Keep in mind that while price is an important component, Section 5614(a)(1) of the Pennsylvania Municipality Authorities Act stipulates contracts shall be “... entered into by the authority with the lowest responsible bidder...” Therefore, establishing what constitutes “responsible” should be a fundamental component of every bid package so you can filter out bidders who do not meet the requirements. The Sands of Time Time is a precious commodity, and except for situations like emergency repairs, it’s often one of the variables authorities have considerable control over. Time-bound decisions are spread throughout the process and include the time of year a project is put out to bid, how much time is allotted between milestones, how long a project is advertised, how much time is allowed for bid evaluation, and ultimately, when the project must be completed. While most agencies consider the timing of projects as it relates to their specific operational and financial needs, few think about how their timelines may coincide with projects of adjoining agencies, funding agency requirements, and other factors, all of which can potentially affect available resources and the bidder pool. So, what is the right amount of time to offer bidders to prepare their submissions or address addenda or changes in scope? Most agency owners and consultants are aware of the legal, minimum requirements in these areas. However, the project’s complexity, time-of-year volume, and the time needed to source materials and subcontractors all play important
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