Washington & Oregon Federal Projects: Bidding, Wages and Miller Act Rights for General Contractors
Federal projects are on the up and up. We know this because there was a Recovery Act and Stimulus Plan - and certainly this money did not disappear. Money was dumped into the hands of various federal departments to develop facilities and spur the new New Deal.
Recently, there has been a rash of federal projects sprawling across Washington and Oregon. In Washington, we see several naval and coast guard projects. The same can be said down in Oregon, where federal administration buildings are getting a green makeover.
The general contractor - or prime contractor - is an interesting animal. The project starts and ends with this entity's proposal, planning, work, and clean up. A prime contractor withstands the most intrusive and strenuous of all procedures in trying to obtain federal work - but oh what a sweet reward for the contractor who does a job well.
But, can your firm get this work? If it does get this work, how does it manage its obligations and be sure that it gets paid?
This article series covers Bidding, Managing Labor & Wages and Making Claims under the Miller Act. We will address these items for the prime contractor - and in the near future, we will revisit for you subcontractors and suppliers. Prime contractors should also pay close attention to that second series, to better understand the needs of their subcontractors and suppliers. But for now - a Prime's bidding:
Bidding a Federal Project
Well, there is no secret to obtaining federal projects. Work is bid similarly to the manner in which state projects are bid: projects are awarded to lowest responsible bidder.
If you are a general contractor or project developer, this can be tricky, but its not an impossible science. Register appropriately and follow the forms issued with project specifications.
Follow these basic steps when readying yourself for a federal project:
- Register
You need to register with the Central Contractor Registry (CCR) in order to bid on most jobs. You can visit the site at this link in order to begin the process. The process is simple and will streamline your bidding process.
Secondly, register with Federal Business Opportunities (FedBizOpps) in order to access most listings and documents. This is also where most government agencies, such as General Services, Army Corps, Commerce, Interior, and Veterans, all issue their contract announcements and bid specifications.
Luckily, registration is simplified by the mighty world wide web. Remember that there are several other resources to government contracts, such as GovernmentBids.com, AcqNet, and ConstructionWebLinks.com.
- Familiarize Yourself with the Forms & Obligations
There is no single standard form. Each organization utilizes different contracting forms, though much of the terminology and practice is similar. But, by simply perusing the FedBizOpps.com website and briefly reviewing contract solicitation forms, you can inspect project documents and begin to becme acquainted with their requirements.
For instance, the US Army Corps of Engineers has a tree removal project for the famous Hiram Chittenden Locks. The project's listing is located here, which includes a link to the contract solicitation documents at the Army website here.
Reviewing this smaller project's documents illustrates the common bid package, complete with a solicitation/bid form, drawings of the project area, schedule of values, and the terms and conditions of the work and bidding. You might want to pay close attention to #4 on the Instruction sheet, which says you must be registered with the CCR or do not bid - because you are not getting the job.
Also, the Miller Act requires all projects that cost $100,000.00 or more to be bonded by performance and payment bond. It is helpful to have a continuing guaranty agreement with a surety so that you can streamline the acquisition of a bond and be ready to bid without a moment's notice. Consult you insurer or surety to find a better way to secure your work.
Taking the time to "faux-bid" a few jobs will help you be ready for the big day when an attractive project shows up and you MUST bid. Get it right the first time and avoid costly litigious fights over contracting awards.
- Get an Attorney
I am a bit conflicted here - because I am an attorney. But, I cannot stress the importance of being cautious and consulting with a construction attorney. A good public contracting attorney can review your completed bid submissions for errors and ensure compliance.
You need to be aware that simple errors on forms might kill your right to a contract award. Clerical errors such as improperly executed corporate resolutions might lead to a grizzly battle with second place finishers. More often than not, if you have failed to meet strict standards of acceptability - you will lose your contract.
Remember, you may invest thousands of dollars in bidding on a federal project. You can easily justify the cost of attorneys fees in your bidding allowance, especially when you run the risk of losing millions in revenue.
Take your time, pass it by your counsel and bid timely.
Stay tuned for the second installment this week. We will be discussing the application of the Davis-Bacon Act, compliance with OSHA and the management of your subcontractor's workers.
