Waiving contracting statutes

By Daniel P. Vrakas

The State Building Commission met in June to discuss the project-delivery method for state construction projects. During this meeting, members on all sides of the issue voiced their concerns over the current process. Specifically at issue was the process through which waivers to bidding requirements are granted.

Currently, the Wisconsin Department of Administration, under state law, must award contracts to the lowest qualified bidder for each of the major divisions of work for construction projects valued at more than $100,000. The state is required to award contracts to bids with the lowest overall price after accepting single bids and separate bids on each division of work, also known as multiple-prime bids.

Some leniency to this law is allowed to the Building Commission through a waiver hearing process. Since January 2001, the Building Commission has granted 54 waivers, approximately 10 percent of the Building Commission's construction agenda.

With so many waivers requested and granted, questions have surfaced as to whether the current system should be changed or strengthened.

While 27 percent of the waivers have been denied, many in the industry question the use of waivers at all. They argue that since it is difficult to determine which delivery method is more effective, the bidding process should be open and competitive and allow for multiple bids as current law states. It is their belief that circumventing the statutes through waivers confuses the industry because the rules of the game are not uniform.

The University of Wisconsin System and the Department of Natural Resources have been granted the most waivers since 2001, with 23 and 12 waivers, respectively.

To simply change state law and do away with the lowest-bidder qualification and the waiver system — allowing for such delivery methods as single prime, design/build and other forms of contracting — is appealing to those who often request a waiver.

There are still others who believe in the usefulness of the waiver system as long as criteria are set in order to qualify for such a waiver.

Whichever school of thought to which these groups prescribe, one thing is clear: The current system needs a little updating. With such starkly different opinions on this issue, the Building Commission will have quite a challenge in reaching a consensus on this ever-growing area of controversy.

As a commission member and legislator, it is my position that all contractors and the workers they employ should have a fair opportunity to work on state building projects, and all parties should agree to any changes to the current system. Of utmost importance has to be getting the best and most cost-efficient deal for my bosses, the tax-payers of this state.

If you have thoughts or concerns on the waiver process, I welcome you to contact me either by writing to Rep. Dan Vrakas, P.O. Box 8953, Madison, WI 53708 or e-mailing me at Rep.Vrakas@legis.state.wi.us.