Contractor, state debate whether ROWS bidding process unfair

But state officials insist they are adhering to a process that has been in place for years and used by other Montana state departments.

Rick Abraham of Abraham Construction in Clancy expressed his concerns in an April 30 letter to Russ Katherman, administrator of the state Department of Administration’s architecture and engineering division.

Abraham says he has questions about the Remote and In-Office Workplace Study (ROWS) Implementation Project, which includes millions of dollars in renovations and other work on several buildings in the State.

“My primary question concerns the ‘bundling’ of multiple projects related to the overall completion of multiple remodels and renovations,” he wrote.

“With a current total budget of $59,525,000 available, why is the State of Montana contracting with one company to do between $81 million and $116 million for all of this work?” he asked. “Why is the work not being budgeted and initiated on an individual basis based on available funds? Does the State intend to continue to negotiate with the same selected “GCCM” (General Contractor, Contract Manager) as additional funds are found or become available and to continue this contract until the work is completed?”

He notes at the end of his letter that “low-cost contracts also ensure that taxpayers are getting the best deal available.”

Abraham, about to retire, said he didn’t understand why these jobs were lumped together and left out small business owners, like himself. He said he was considering legal action.

However, Janna Williams, a spokeswoman for the Department of Administration, said ROWS is structured to create opportunities for small business owners in several ways.

“The scale of the work will provide ample opportunities for contractors of all sizes to bid on various construction needs,” she said in an email.

Williams said consolidation is not a new process for the state, it is transparent and the general contractor, the contract manager, is hired for preconstruction and must also go through the process tender to carry out the work.

“Because ROWS includes more than just multiple building renovations, the State has determined that placing the responsibility on a single contractor to provide overall construction management and contractor services is critical to reducing costs, save time and find a better solution to address the overall complexity. “, she said in an email. “Throughout the process, work will be available for contractors like Mr. Abraham.”

Abraham said he was not confused, but frustrated. And he says he found himself in a he-said-she-said exchange with the state.

“In the past, a hard-working Montanan could start a small construction company and compete at the state level,” he wrote in another missive to the state. “Through this hard work and dedication, this business has been able to grow. It was enough to provide a quality product at the state price.

“However, it seems to me that (the state) has turned away from the age-old approach of reviewing projects and bidding, and has instead moved toward a bulk purchasing model.”

He said it appears three contractors will get 24 separate projects through the GCCM bundling process, which he said represents 39 percent of the budget.

Abraham said using the GC/CM process puts small businesses in a position where their only recourse is to seek legal counsel to protect their rights within the system.

“The time has come for the State of Montana to step up and take control of the construction projects it has funded and stop relying on ‘chosen’ contractors to do the work,” Abraham wrote . “The entire GC/CM system is flawed and needs to be overhauled at the legislative level.”

ROWS will expand telework, create “hybrid” flexibility, update human resources policies and design new workspaces in buildings, said officials with the Department of Administration, which oversees the program. The state expects work to begin in phases over the next five years, with work starting on the Capitol complex in Helena.

Misty Ann Giles, director of the Department of Administration, told Lee Montana Newspapers in April that the state has five major departments and three major buildings in Helena and that the state plans to spend millions of dollars in deferred maintenance in as part of the Capitol Complex renovation, which would result in 63% of Capitol Complex deferred maintenance being addressed.

The first agencies involved in the renovation and employee redesign will be the Department of Administration, Department of Revenue, Department of Labor, Department of Environmental Quality, Department of Public Health and Human Services and the Ministry of Commerce.

Funding for the ROWS project is authorized as a single, enterprise-wide appropriation involving multiple campuses and was approved by the 68th Legislature, said Williams, the DOA spokesperson. She added that the scope of work is complex and requires full understanding and expertise during design and planning.

She noted that one contractor said this would save time, resolve complexities, increase efficiency and keep the project on budget for a better use of taxpayer dollars.

Abraham — who has completed projects for the state, such as the Division of General Services workshop — said the process requires that any company completing a proposal be able to secure $50 million at the time of the proposal.

Abraham, who said he also built several volunteer fire stations in the area, said very few companies are able to guarantee that amount.

Williams said the $50 million bond was set based on the highest construction cost anticipated for completion when the request for proposal was issued by the department’s Architecture and Engineering Division .

“There is a lot of work to bid on under the prime contractor umbrella,” she said in an email. “Please note that the main contractor must complete the work through a competitive tender process within the contractor community. »

Williams said this “community of entrepreneurs” would include Abraham.

Abraham said this new “bulk buying” model adopted by the state has allowed him to “simply hire the largest contracting company he can find to do as much work as possible.”

“I’m telling you; this won’t work,” he wrote in an email.