Legislative Updates on         Public Works         Contracting                          Mike Purdy               Michael ...
Agenda    1.   2012 Legislative Session    3.   2011 Legislative Session            Reciprocal Bid Preference    4.   CPA...
2012 Legislative Session       Bills that passed        –   Job Order Contracting        –   Prevailing Wages3
2012 Legislative Session    - Job Order Contracting – Passed       Engrossed House Bill 2328       Unanimously passed bo...
2012 Legislative Session    - Job Order Contracting – Existing                  Existing Authorized Agencies      State De...
2012 Legislative Session    - Job Order Contracting – Passed        Authorized Agencies – Added by Legislature       Regio...
2012 Legislative Session    - Job Order Contracting – Passed            Amount of each Work Order         Existing Amount ...
2012 Legislative Session    - Job Order Contracting – Passed            CPARB reporting year basis             Existing   ...
2012 Legislative Session    - Job Order Contracting – NOT Passed       Provisions that did NOT pass        –   Yearly Dol...
2012 Legislative Session     - Job Order Contracting – NOT Passed        HB 2369 did NOT pass         –   Regional Transi...
2012 Legislative Session     - Prevailing Wages – Passed        Substitute Senate Bill 6421        Unanimously passed bo...
2012 Legislative Session     - Prevailing Wages – Passed              Filing Affidavits of Wages Paid        On Behalf of...
2012 Legislative Session     - Bills That Did NOT Pass             Design-Build on WSDOT projects        Second Substitut...
2012 Legislative Session     - Bills That Did NOT Pass                  Use of Design-Build         HB 2327 would have:  ...
2012 Legislative Session     - Bills That Did NOT Pass         GC/CM and Design-Build Selection        HB 2327 would also...
2012 Legislative Session     - Bills That Did NOT Pass             Protests on GC/CM Projects         House Bill 1971 wou...
2012 Legislative Session     - Bills That Did NOT Pass         No Retainage on Federal Projects         Senate Bill 6063 ...
2012 Legislative Session     - Bills That Did NOT Pass         Small Businesses on Small Works Rosters          Substitut...
2012 Legislative Session     - Bills That Did NOT Pass         Streamlining Small Public Works Projects         House Bil...
2012 Legislative Session     - Bills That Did NOT Pass             Requiring Certified Payrolls        Senate Bill 6416 w...
2012 Legislative Session     - Bills That Did NOT Pass     Prevailing Wage Liability for Successor Firms         House Bi...
2011 Legislative Session     - Reciprocal Bid Preference         If “a bid is received from a nonresident         contract...
2011 Legislative Session     - Reciprocal Bid Preference         Definition of nonresident contractor:         – From a s...
2011 Legislative Session     - Reciprocal Bid Preference       Bidder    In- Out-of-    Bid       Preference    Bid Price ...
CPARB Alternative Public Works     Reauthorization Committee        June 2013 Sunset: RCW 39.10 –         Alternative Pub...
CPARB Alternative Public Works     Reauthorization Committee        Job Order Contracting Issues:         –   Yearly doll...
CPARB Alternative Public Works     Reauthorization Committee        GC/CM issues:         –   Owner role when GC/CM bids ...
CPARB Alternative Public Works     Reauthorization Committee        Design-Build issues:         –   More flexibility to ...
Free e-mail Subscription to my Blog:     http://PublicContracting.blogspot.com29
Michael E. Purdy Associates, LLC     - Contact Information        Office (206) 762-2699          Cell (206) 295-1464      ...
Experience: After more than 30 years as a manager in public contractingand procurement in Seattle, Mike Purdy retired in e...
Michael E. Purdy Associates, LLC     - The Fine Print        Copyright: This document is copyrighted by         Michael E...
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Washington State Legislative Updates

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Washington State legislative changes from 2011 (reciprocal bid preference law), 2012 (bills that passed and didn't pass), and 2013 (potential legislation affecting re-authorization of Alternative Public Works contracting.

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  • Washington State Legislative Updates

    1. 1. Legislative Updates on Public Works Contracting Mike Purdy Michael E. Purdy Associates, LLC (206) 762-2699 (office) (206) 295-1464 (cell) mpurdy@mpurdy.com1
    2. 2. Agenda 1. 2012 Legislative Session 3. 2011 Legislative Session  Reciprocal Bid Preference 4. CPARB Alternative Public Works Reauthorization Committee2
    3. 3. 2012 Legislative Session  Bills that passed – Job Order Contracting – Prevailing Wages3
    4. 4. 2012 Legislative Session - Job Order Contracting – Passed  Engrossed House Bill 2328  Unanimously passed both Senate and House  Signed by Governor on March 29, 2012  Effective on June 7, 2012 – 90 days after March 8, 2012 adjournment4
    5. 5. 2012 Legislative Session - Job Order Contracting – Existing Existing Authorized Agencies State Department of Enterprise Services (formerly GA) University of Washington Washington State University Cities with population over 70,000 Counties with population over 450,000 Port Districts with revenues greater than $15 million per year Public Utility Districts with revenues from energy sales greater than $23 million per year All School Districts5 State ferry system
    6. 6. 2012 Legislative Session - Job Order Contracting – Passed Authorized Agencies – Added by Legislature Regional universities  Western Washington University  Central Washington University  Eastern Washington University The Evergreen State College Sound Transit6
    7. 7. 2012 Legislative Session - Job Order Contracting – Passed Amount of each Work Order Existing Amount New Amount $300,000 $350,0007
    8. 8. 2012 Legislative Session - Job Order Contracting – Passed CPARB reporting year basis Existing New Contract Year July 1 – June 308
    9. 9. 2012 Legislative Session - Job Order Contracting – NOT Passed  Provisions that did NOT pass – Yearly Dollar Threshold: Would have raised from $4 million per year to $6 million per year the total dollar amount of work orders an agency could execute – Contract Term: Work orders executed within the contract term could have been completed after the end of the contract term – Subcontracted Percentage: Amount of work to be subcontracted would have changed from 90% of the actual work in a Job Order Contract to 60% of the Job Order Contract total9
    10. 10. 2012 Legislative Session - Job Order Contracting – NOT Passed  HB 2369 did NOT pass – Regional Transit Authorities: Would have permitted all Regional Transit Authorities to use Job Order Contracting  Sound Transit – Will be the only authorized Regional Transit Authority to use Job Order Contracting  Engrossed House Bill 232810
    11. 11. 2012 Legislative Session - Prevailing Wages – Passed  Substitute Senate Bill 6421  Unanimously passed both Senate and House  Signed by Governor on March 29, 2012  Effective on June 7, 2012 – 90 days after March 8, 2012 adjournment11
    12. 12. 2012 Legislative Session - Prevailing Wages – Passed Filing Affidavits of Wages Paid  On Behalf of: Allows contractor to file the Affidavit of Wages Paid on behalf of a subcontractor if subcontractor is out of business or fails to file  Lower Tier: Applies to subcontractors who contract with lower tier subcontractors  Timing: May not occur sooner than 31 days after Final Acceptance  Liability: Contractor filing Affidavit accepts responsibility for unpaid prevailing wages by subcontractor12
    13. 13. 2012 Legislative Session - Bills That Did NOT Pass Design-Build on WSDOT projects  Second Substitute Senate Bill 5250 would have required WSDOT to: – Threshold: Use Design-Build on projects over $5 million, down from current $10 million – Reporting: Report to legislature each biennium on the performance of Design- Build on its projects  Passed Senate 47-1. House didn’t vote13
    14. 14. 2012 Legislative Session - Bills That Did NOT Pass Use of Design-Build  HB 2327 would have: – Portable Facilities: Permitted Design- Build for the erection of portable facilities as defined in WAC 392-343-018 – Modular Buildings: Restricted Design- Build modular buildings to “not more than five prefabricated modular buildings per installation site.”  Was sponsored by CPARB14
    15. 15. 2012 Legislative Session - Bills That Did NOT Pass GC/CM and Design-Build Selection  HB 2327 would also have added the following selection criteria:  Firm’s outreach plan to include small, economically and socially disadvantage businesses  Firm’s past performance in the utilization of small, economically and socially disadvantaged businesses  Was sponsored by CPARB15
    16. 16. 2012 Legislative Session - Bills That Did NOT Pass Protests on GC/CM Projects  House Bill 1971 would have: – Protest Process: Established protest process for selection of EC/CM and MC/CM  At both short list and finalist stages – Owner’s Role: Added Owner to review protests  Sponsored by CPARB. Introduced in 2011.16
    17. 17. 2012 Legislative Session - Bills That Did NOT Pass No Retainage on Federal Projects  Senate Bill 6063 would have: – Prohibited withholding of retainage on federally funded transit facilities and relying on bond  Federal Regulations: Response to U.S. DOT regulations requiring prompt payment to subcontractors  2011 Legislation: Would have corrected 2011 amendment to RCW 60.28.011 only prohibiting retainage on federally funded highways, roads, streets.17
    18. 18. 2012 Legislative Session - Bills That Did NOT Pass Small Businesses on Small Works Rosters  Substitute House Bill 1173 would have:  Limited Competition on Limited Public Works: – Threshold increased from $1 to $7 million – Contractor annual gross revenue  Definitions: Micro-business and Mini-business – Revenue and location based – Owners to adopt “additional procedures to encourage” use of these businesses on Small Works Roster projects – “Principal office located in Washington” conflicts with RCW 39.04.380 for resident contractor:18 “physical office located in Washington”
    19. 19. 2012 Legislative Session - Bills That Did NOT Pass Streamlining Small Public Works Projects  House Bill 1970 would have: – Bonding and Retainage: Permitted agencies to waive bonding and retainage on projects of $5,000 or less, even if not using the Small Works Roster. Agencies would pick up liability for claims – Prevailing Wage Forms: Increased from $2,500 to $5,000 when agencies could accept prevailing wage forms under Limited Public Works process without L&I certification19  Sponsored by CPARB. Introduced in 2011
    20. 20. 2012 Legislative Session - Bills That Did NOT Pass Requiring Certified Payrolls  Senate Bill 6416 would have required:  Earlier Submission of Intents: Submission of Statement of Intent to Pay Prevailing Wages before an Owner “finalizes a contract for any public work.”  Payrolls Before Payment: Submission of electronic payrolls from contractor and subcontractors before any payment to contractor.  Publish Payrolls: Owners to publish payrolls on a “publicly accessible database” after deleting Social Security numbers. Owners would also forward payrolls to L&I.20
    21. 21. 2012 Legislative Session - Bills That Did NOT Pass Prevailing Wage Liability for Successor Firms  House Bill 2669 would have required: – Successor Firm Liability: Assumption of prevailing wage liability by a successor contracting entity for previous prevailing wage violations  If successor entity knew of the violation at time of sale  Defines successor entity  Passed the House 54-41. No Senate vote21
    22. 22. 2011 Legislative Session - Reciprocal Bid Preference If “a bid is received from a nonresident contractor from a state that provides a percentage bidding preference, a comparable percentage disadvantage must be applied to the bid of that nonresident contractor.” RCW 39.04.380  States with 5% public works bid preference: Alaska, Nevada, Wyoming, New Mexico22  Effective March 30, 2012
    23. 23. 2011 Legislative Session - Reciprocal Bid Preference  Definition of nonresident contractor: – From a state with a percentage bid preference and – At the time of bidding, does not have a physical office located in Washington  State of residence for a nonresident contract is the state in which the contractor was incorporated or the business entity was formed23
    24. 24. 2011 Legislative Session - Reciprocal Bid Preference Bidder In- Out-of- Bid Preference Bid Price for State State Amount % for state Evaluation of out-of- Purposes state firm 1 X $100,000 5% $105,000 2 X $103,000 N/A $103,000 3 X $104,000 0% $104,00024
    25. 25. CPARB Alternative Public Works Reauthorization Committee  June 2013 Sunset: RCW 39.10 – Alternative Public Works  Committee: Meeting this year to address issues and develop legislation for CPARB and Legislature25
    26. 26. CPARB Alternative Public Works Reauthorization Committee  Job Order Contracting Issues: – Yearly dollar threshold increase – Contract term – Subcontracted percentage – Expansion of authorized agencies – Use JOC contracts through piggybacking26
    27. 27. CPARB Alternative Public Works Reauthorization Committee  GC/CM issues: – Owner role when GC/CM bids to self-perform – Prequalification by GC/CM when bidding to self- perform – Flexibility regarding unsuccessful MACC negotiations – When should subcontract bidding occur. Trend toward more early bidding – Selection criteria relating to small businesses – Protest procedures for EC/CM and MC/CM – Subcontract bidding and union membership27
    28. 28. CPARB Alternative Public Works Reauthorization Committee  Design-Build issues: – More flexibility to provide for progressive Design- Build – Smaller projects by certified agencies without Project Review Committee approval – Modify criteria for when Design-Build may be used – Selection criteria relating to small businesses – Portable facilities and modular buildings28
    29. 29. Free e-mail Subscription to my Blog: http://PublicContracting.blogspot.com29
    30. 30. Michael E. Purdy Associates, LLC - Contact Information Office (206) 762-2699 Cell (206) 295-1464 E-mail mpurdy@mpurdy.com Web www.mpurdy.com Blog http://PublicContracting.blogspot.com http://www.linkedin.com/in/mpurdy http://twitter.com/#!/MikePurdy https://www.facebook.com/pages/Mic hael-E-Purdy-Associates- LLC/92090808667 PO Box 46181, Seattle, WA 98146 Mike Purdy30 Principal
    31. 31. Experience: After more than 30 years as a manager in public contractingand procurement in Seattle, Mike Purdy retired in early February 2010.He began his career with the City of Seattle, where he was the City’sContracting Manager. After more than 21 years with the City, he servedfor five years at the Seattle Housing Authority as Contracting andProcurement Manager. Most recently, he was the Contracts Manager forthe University of Washington’s capital projects office, where he wasresponsible for managing design and construction contracts for more than$1 billion worth of projects.Michael E. Purdy Associates, LLC: In his retirement, Mike remains activein contracting and legislative issues as the principal of Michael E. PurdyAssociates, LLC (www.mpurdy.com), a consultant firm established in 2005to help public agencies, contractors, and consultants develop andimplement effective contracting strategies. He is a frequent speaker andtrainer on public contracting issues. Mike also maintains the popularPublic Contracting Blog at http://PublicContracting.blogspot.com, designedto keep public agencies, contractors, and consultants up-to-date on keydevelopments in contracting. He is also a member of a number of industrywide committees and task forces.Education: Mike has a bachelor’s degree in business and publicadministration and an MBA, both from the University of Puget Sound, anda master of divinity degree from Fuller Theological Seminary. 31 31
    32. 32. Michael E. Purdy Associates, LLC - The Fine Print  Copyright: This document is copyrighted by Michael E. Purdy Associates, LLC. All rights reserved. No part of this document may be reproduced, modified, or transmitted in any form or by any means, electronic, mechanical or otherwise without prior written permission.  Not Legal Advice: The opinions, information, and interpretations provided in this document are the personal opinions of Mike Purdy, are for educational and informational purposes only, and do not represent legal advice. Mike Purdy is not an attorney. When appropriate, readers of this document are encouraged to consult with an attorney to obtain legal advice.32

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