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Before reading contract
bids aloud to construction company vendors attending Mn/DOT’s first electronic
bid letting, Don Orgeman thumps this "cowboy hat" to prove that
it’s really a hard hat.
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Nine road construction contractors plunged into the future Jan. 18 when they
filed 13 electronic bids on 16 Mn/DOT construction projects in the department’s
first week of electronic bidding.
But change comes in stages: other contractors filed a combined total of 67
bids by paper, choosing not to try the e-bidding process this time.
On this first day of e-bidding, about 150 owners and staff filled the Mn/DOT
lunchroom for their monthly—sometimes biweekly—ritual. They listened as Don
Orgeman, contract administrative engineer, Office of Construction and Contract
Administration, read the bids aloud, and wrote down what their competitors had
bid.
Orgeman celebrated the occasion—and the media attention—by wearing a hard hat
that’s shaped like a cowboy hat while he announced the bids.
"People have been teasing me about the microphone," Orgeman said.
"But if I have to be Garth Brooks today, let me put on my hat here."
After thumping his hat, he added, "I want all of the contractors to know
this: it’s a hard hat."
Orgeman added, "I want to thank the contractors who submitted computer
discs with their bids. We won’t have to key in the numbers on these, and that
will help us out a lot."
The process went smoothly, despite a couple of bumps in the road.
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Gary Ericksen handles
the transition from paper to cyberspace as he enters the paper bids into
the electronic forms at Bid Express’s Web site.
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"We’ll pause here so that Gary can catch up," Orgeman said at one
point, while Gary Ericksen, pre-awards supervisor for Construction and Contract
Administration, entered amounts from paper bids into a laptop computer. The
laptop was wired and connected to the Mn/DOT Internet page set up by e-bidding
vendor Bid Express.
The other glitch—solved shortly before the meeting began—concerned Internet
access.
"Things were a little touch-and-go for awhile when our Internet connection
went down," Ericksen said, "but we pulled things together at the last
minute and went ahead. We had it all set up back in our office as well so that
we could have run the figures up there instead. But we wanted to do it this
way."
Last week, Ericksen had talked about this type of problem, but from the contractors’
point of view, saying that contractors were "talking about getting two
Internet service providers so they can be sure of getting their bids in on time."
Although his office had built in a backup connection as well, Ericksen said
that they might try a different approach—one that could function at the bidding
site itself.
"We’re thinking of getting a wireless setup and bouncing it off a satellite
to avoid problems with Internet access," he said.
Awarding of contracts for the 16 construction contracts—with a combined total
cost of more than $18 million—begins this week, Ericksen said, and will continue
over the next two to three weeks.
At this point, e-bidding has made a dent in the number of bids submitted on
paper, but Ericksen said he expects that to increase quickly.
"I talked with several contractors who said that they would be submitting
electronic bids in our next letting on Feb. 22," Ericksen said. "I
expect the percentage of electronic bids will go way up. I think that, when
we start getting 70 percent of the bids submitted electronically, we might look
at requiring electronic bid submittal on those projects that are over a certain
dollar amount—possibly $1 million."
The 2001 Minnesota Legislature authorized electronic bidding—among several
other measures—to streamline Mn/DOT’s contracting procedures. These include:
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Clarification of municipal consent laws
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Expanded authority in design-build projects
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Work order signatures
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Informal RFP contracts
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Qualification-based selection of consultants
"Mn/DOT is looking at many ways to speed up projects," said Doug
Weiszhaar, Deputy Commissioner. "Electronic bidding shows how technology
can help us streamline the process and build projects more quickly."
Click here to read the Jan.
16 Mn/DOT Newsline article on electronic bidding.
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