What is a Public Improvement Alternative Contracting Method?
Public Improvement Alternative Contracting is a procurement method an agency may choose to conduct when it has sought and received an exemption for a contract or a class of public improvement contracts. This contracting method deviates from the competitive bidding process, and if the contract type is not specified in statute, state law requires that an agency seek an exemption from the DAS Director prior to conducting a procurement using this method.
Additionally, state law creates exceptions or exemptions from
Public Improvement Competitive Bidding for certain public improvement projects. For example, an Energy Savings Performance Contract (ESPC) is an exception to the competitive bidding method and an agency using an ESPC is not required to submit findings or request an exemption from competitive bidding requirements.
For this alternative procurement method, DAS State Procurement Services on behalf of an agency, or an agency with delegated procurement authority, collectively termed, a procuring agency, conducts a procurement process that is consistent with the type of contract it seeks to establish.
The Public Improvement Alternative Contracting method enables an agency to use innovative techniques and processes to procure public improvement projects. Examples of contracts that use this method include:
- Design-Build
- Construction Manager/General Contractor (CM/GC)
- Energy Savings Performance Contracts
- Performance Contracting
- Cost Plus Time Contracting
- Qualifications Plus Project Approach Contracting
Alternative methods provide options for unique, complex or schedule-critical projects. An agency that uses an alternative method is afforded flexibility in evaluating proposals and in contract negotiations, which can result in substantial cost savings and other substantial benefits to the state.
When to Use a Public Improvement Alternative Contracting Method
An agency may use the Public Improvement Alternative Contracting method if it is procuring:
- An Energy Savings Performance Contract.
- An individual contract that has been exempted from the competitive bidding process.
- A class of contracts that has been exempted from the competitive bidding process.
The Public Improvement Alternative Contracting method may also be used for other applicable statutory exceptions (refer to ORS 279C.335(1)).
How to Process a Solicitation Using a Public Improvement Alternative Contracting Method
Prior to each budget period, an agency must submit a list of every public improvement contract that it plans to fund in the upcoming budget period to the Commissioner of the Bureau of Labor and Industries.
The agency must identify each improvement by name and estimate the total on-site construction costs. The agency must also indicate whether it intends to perform the construction through a private contractor. If the project is estimated to cost more than $125,000 and the agency intends to perform the work using its own equipment and personnel, the agency must also confirm that its decision is the least cost.
Resource: Use BOLI's
Planned Public Improvement Summary Form (WH-118) to submit planned public improvement projects.
A procuring agency must use a process that comprises the following 12 tasks to conduct a solicitation through the Public Improvement Alternative Contracting method:
If a procuring agency is performing an ESPC procurement, or is using the alternative method to execute a procurement for other applicable statutory exceptions, it is not required to request an exemption and may skip tasks 1-3 above.
Post Project Evaluation
Once a contract is completed and final payment is made for a public improvement contract exceeding $100,000 where competitive bidding was not used, a procuring agency must complete and submit an evaluation of the public improvement contract. The evaluation helps determine whether the use of an Alternative Contracting Method was in the agency’s best interests.
Evaluations must include:
- Actual costs compared to original estimates.
- The guaranteed maximum price, if any.
- The number and cost of change orders issued.
- A narrative of the success or failures during the project.
- Assessment of alternative contracting compared to the agency’s initial findings.
The procuring agency must submit the evaluation to the CPO, as the delegate of the DAS Director, within 30 days of the agency accepting the public improvement project.
Amendments, Protests, and Change Orders
Read the full sections on each of these subjects to learn more about requirements and how to process: