Alternative bids: rules change, players don't

BY BENJAMIN MINNICK
Top 20 editor

The Legislature enacted several statutes in 1994 that gave certain public agencies an alternative to the traditional low-bid method of securing contractors for large construction projects. Included were the general contractor/construction manager and design/build methods.

Those methods have proved to be popular -- there are now over $1 billion in construction projects in the state being bid under the two methods, including the $417.4 million Major League Baseball stadium under construction south of the Kingdome and the $173 million Stafford Creek Correctional Facility planned near Aberdeen.

While the methods have proved to be popular, they were fine-tuned by the Legislature on July 1, 1997. Major changes included:

The GC/CM is now allowed to self-perform under certain limited circumstances.
GC/CMs can spread contracts for minority and women business enterprises (MWBE) in as many bid packages as possible instead of having to meet MWBE requirements on larger bid packages.
Instead of taking the lowest GC/CM bid, agencies use a rating system that combines contractor experience with qualifications.
The sunset date for the statues was been extended to July 1, 2001.
MWBE and subcontractor participation is now allowed in the Alternative Public Works Oversight Committee, which was created in 1994 along with the alternative bidding legislation.
Agencies can use design/build for pre-engineered metal buildings or prefabricated modular buildings, regardless of cost.
Design/build can be used for new student housing that costs between $5 million and $10 million.

New rules were also enacted under a pilot program for alternative bidding. They include:

Eligible agencies get one "demonstration" GC/CM or design/build project between $3 million and $10 million, instead of the over $10 million requirement. The state Department of General Administration gets three of these while the other agencies each get one. In awarding the projects, an emphasis is required for contractors who have experience working on projects of that size.
Public bodies can transfer their authority to other eligible public bodies.
Design/build authority for a demonstration project over $10 million was given to cities who supply water to over 350,000 people.

Through alternative bidding's short history, the eligible agencies have remained nearly the same. A lion's share of the jobs have been doled out by the state Department of General Administration and the University of Washington.

New to the "club" this year is the city of Everett, which entered the game when the design/build pilot program was enacted for cities that supply water to over 350,000 people. The city is in the pre-design stage for its $50 million Clearview water supply project.

Next to join may be the state Department of Transportation, which is now seeking design/build authority in the current 60-day legislative session that started Jan. 12.

Active GC/CM and Design/Build Projects

GC/CM
Government Agency Project Project Value Status
Public Facilities District Major League Baseball Stadium $417.4 million under construction
Dept. of Corrections Stafford Creek Prison $173 million in design stage
Dept. of Corrections Construct Mental Health, Weapons Storage, Retrofit $11.3 million in design stage
Dept. of Corrections Tacoma Pre-Release 200-Bed Prison $11.0 million in design stage
Dept. of Corrections Construct Juvenile Facility at Shelton $5.3 million in design stage
Dept. of Corrections Close Custody Conversion, Repair and Expand Special Offenders Center at Monroe $35.5 million in design stage
University of Washington Harborview Research & Training Facility $79.0 million in design stage
University of Washington Construct New Fisheries Science Building $35.0 million under construction
University of Washington UW/Cascadia Bothell Campus $95.0 million in design stage
University of Washington Renovate Suzzallo Library $36.2 million on hold, pending funding
University of Washington Construct Oceanography Building $40.0 million under construction
University of Washington Construct New Law School Building $53.0 million on hold, pending funding
Snohomish County Construct Denny Youth Center (juvenile detention) $22.0 million under construction
Pierce County Construct New Adult Detention Facility $50.0 million in initial planning stage
City of Seattle Construct West Precinct and 911 Communications Center $15.9 million in design stage
Port of Seattle Construct World Trade Center $14.0 million under construction
Port of Seattle Airport Parking Terminal Expansion $50.0 million under construction
Housing Authority of Seattle Holly Park Redevelopment $54.0 million under construction
TOTAL VALUE GC/CM PROJECTS $1.20 Billion
Design/Build
Government Agency Project Project Value Status
City of Seattle Tolt River Water Treatment Plant $101.0 million0 in design stage
City of Seattle Seattle Symphony $115.5 million under construction
City of Everett Clearview Supply Project $50.0 million in pre-design stage
Dept. of General Administration New Vehicle Maintenance Building Warehouse and Communications Center for State Patrol Proposed to trade land and informally valued at $6 million in pre-design stage
TOTAL VALUE DESIGN/BUILD PROJECTS $272.5 million