(The Center Square) – For some major transportation projects, the Pennsylvania General Assembly is considering a rule change to choose contractors based on the best quality bid, rather than the lowest cost.
The House Transportation Committee met on Thursday to discuss House Bill 2747, which would allow a Design Build-Best Value Procurement (DBBV) method for certain projects, rather than the current sealed bid method that prioritizes lowest cost. Supporters framed it as focusing on value instead of price.
“Passage of this legislation will give the Commonwealth another procurement method under limited usage that may be advantageous to the taxpayer and that is used in many states around the country,” Rep. Todd Stephens, R-North Wales, wrote in a legislative memo.
Stephens pointed to potential benefits like faster project completions, more cost-effective projects thanks to streamlining, and less demand on resources from PennDOT and the Turnpike Commission.
The DBBV approach has support from PennDOT and the Turnpike Commission, as well as trade groups, such as the Associated Pennsylvania Constructors.
The change in the procurement process would affect “complex projects,” defined as ones that are valued at more than $15 million, planned by PennDOT or the Turnpike Commission, and has “unique characteristics that foster innovation or a need for accelerated completion.”
“We have to be careful that we’re not handcuffing ourselves by the legislation,” said Melissa Batula, the acting executive deputy secretary for PennDOT. “Let’s face it: Low bid’s great, but it loses a lot of that quality aspect when we really think about how we can pull that innovation … to get that best project in the end. And it might not be the one that costs the cheapest, but it’s going to be the best for the consumer.”
The legislation would be necessary to allow DBBV due to a 2011 ruling in Brayman v. Pennsylvania that found using it would violate the Procurement Code.
Nationally, Batula noted that 44 other states either use design build or have the ability to use it, making Pennsylvania an outlier.
“It’s helpful to know that other states … it does give a certain comfort level to me as a legislator to know that if there are challenges, there are other states whose court systems have already dealt with those challenges,” said Tim Hennessey, R-Pottstown, and the chair of the Transportation Committee.
