BOARD BIDDING PROCESS 2/19/19
BID AND APPROVE CONTRACTS USING A “TOTALITY OF THE CIRCUMSTANCES” APPROACH, STATING THE LODESTAR FACTORS, RATHER THAN A DOLLAR LIMIT WITH 3 BIDS.
1) Good faith to obtain contractors/other bids
2) Dollar amount of job to be performed
3) Was Contractor referred by known source?
4) Does Contractor have a good reputation?
5) Expertise/experience in their field
6) Amount of insurance
7) Positive reputation on Angie’s List, Better Business Bureau, social media, no law suits
8) Ability to obtain numerous bids
9) Knowledge of cost of job
10) Prior experience working with TSBA
11) Can always obtain competing bids
12) Other factors of importance
Examples of how to apply the lodestar factors to making determination to hire or not hire a contractor. (These are made up examples.)
Example 1: Looking to hire a contractor to build crossover on Dune Road:
XYZ contractor worked previously with TSBA to build Cove Road crossover.
Came in under budget previously.
Performed work timely and completed within required period.
Easy to work with.
Entire costs of the job is 3% of TSBA total budget. Overall costs of project lines up with the Cove Rod crossover.
Used ABC contractor for Admiral Road, and although $1k cheaper, TSBA had to hire XYZ to finish the job as the quality was poor and ABC difficult to work with. Costed more in the end.
Example 2: Renewing trash company contract.
Worked with Republic the past 10 years.
Know our community.
Willing to pick up trash and recycle under each units home. (highly weighted factor).
Pricing is similar to other contractors.
Willing to pick up trash/recycle 3x a week. (highly weighted factor).
Example 3: Need to hire Bay Road street attendant (if RC pass)
Never have hired this position before.
Have one community member interested, 1 outside security companies interested.
Benefit of community member: available, know the situation, will be reliable, less costly
Benefit of outside security company: professional, has a few employees to rotate, has own Worker’s Compensation policy, Breakwater uses the company during the day and highly recommends reliability.
Now board votes…
Example 4: Need fencing replaced on beach and behind Admiral and Dune Roads.
Always work with X in the past.
Knows the community well.
Knows our needs well.
Does quality work.
Price is the same as last year. No increase.
Does not complete work timely. Last year, completed work into July. Violated community noise moratorium continuously.
Now TSBA decides, write up strong contract with deadlines and advise clearly if not completed by x date, will cancel contract and hire someone else. Contractors must comply with TSBA rules or cannot work on TSBA work. Then have Y in the wings, back up contractor. OR, hire someone else with better lodestar factors.
Now board votes…