Legislation to study and propose changes to how the State of NH procures construction services is currently one of ABCs top issues in the NH legislature (SB493, SB495). The concept of what is referred to as “best value” contracting is at the center of the discussions. What is the goal of “best value” contracting? Should the requirement for apprenticeship programs, defined health insurance and retirement plans be included in the selection of contactors to perform state projects? The most obvious public purpose in obtaining construction services, stated as simply as possible, is a quality project at the best price. While Associated Builders and Contractors appreciates and recognizes the challenge and responsibility of managing public funds and providing public services, including providing facilities and other infrastructures through the purchase and administration of construction services, it is important to carefully consider the impact of any criteria used to select contractors.

Labels such as “best value,” “responsible bidder,” and “performance based acquisition,” are used to promote procurement policies. However, it is important to understand the purpose of the criteria and be aware that some criteria can limit market participation in public construction, inflate project cost and harm local workers and contractors. ABC will continue to stress the importance of some basic questions to consider when evaluating procurement policy:

~ What is the public purpose of the criteria? What is the intent and what problem is being solved? If the criteria is important, the agency must be willing and able to pay for extra cost and administration. Often times contract provisions are a more effective way to control quality issues.

~ Is it a legitimate purpose and are additional criteria necessary for public construction?

Does the criteria directly relate to the objective of quality construction? Are the requirements already in statute or rule?

~ What are the criteria used to evaluate a contractor? Whether objective or subjective, criteria are only important if considered in context and they demonstrate value relevant to the purpose of the policy. How are the criteria scored? Are there safeguards to protect against favoritism?

~ What is the actual result of the criteria? Will the criteria result in some contractors not participating in public works projects and who will be excluded? Will the public pay a higher price without a better product? Do the criteria create barriers to participate that are not intended?

~ What due process is available? Any scoring methodology must be published and should not be subject to the whims of an agency or contracting officer. The weight of each criteria should be revealed. Changes should be subject to public comment.

ABC will continue to participate with the process concerning policies and practices impacting the construction procurement process and will inform members of any pending action.