|
B. Construction and Maintenance Contracting 1. Electronic funds transfer. Electronic bidding allows contractors to submit their bids for contract work
electronically to TxDOT. Its establishment will eliminate the need for
contractors to either mail or deliver their bids. A major benefit of electronic
bidding is that the contractors’ use of the system can reduce errors. In
automating their bids, contractors will impose a computerized
self-check before transmittal, thereby ensuring that certain information is
present and that mathematical calculations are correct. By eliminating these
errors, electronic bidding will reduce the number of bids that are disqualified
and ensure that TxDOT is able to consider as many responsive bids as possible. A
possible hindrance to successful initiation of an electronic bidding system is
related to the requirement that bidders submit a guaranty check along with their
bid. A cashier’s check is required, which TxDOT returns within 72 hours to the
losing bidders. The winning bidder’s check is held as a guaranty for up to 30
days until the contract is executed. While the electronic process will replicate
the current manual bid process, TxDOT needs statutory authorization to receive a
bid guaranty electronically, release an electronically transmitted guaranty, and
take possession of the guaranty when necessary. Possible statutory change: Allow TxDOT to electronically verify, release and
accept a bid guaranty. This authority should allow TxDOT to receive and disburse
funds when necessary by electronic means, and then transfer those funds to the
state treasury in the case of contractor default. 2. Child support enforcement requirements. The current statutory requirement that all bids submitted by a bidder must
include the name and Social Security number (SSN) of all owners of 25 percent or
more of the business on the bid document itself, has resulted in a total of 112
bids being considered non-responsive through August 1998, and thereby rejected
for non-compliance. The purpose of this statute is to assist in the state’s
child care collection efforts. TxDOT believes that the collection of the SSN of
all bidders can be better collected through other TxDOT documents rather than on
the bid itself. Highway improvement contracts are awarded on a low-bid basis and
rejecting potential bids has resulted in decreased competition. The
potential result of reduced competition is an increased cost to the state for
contracted services. Possible statutory change: Legislation could allow TxDOT to collect the required
information (SSN of certain business owners) on either the pre-bid qualification
form, which is also required of all bidders, or in another expedient and
efficient manner. If any information relevant to owners of 25 percent or more of
the business were to change, the bidder should be required by statute to update
the Social Security numbers already on file. |
