Fiscal Note
Many of the requirements contained in this ordinance currently apply to public works contracts. This ordinance amendment would apply the current and additional requirements to all contractors and subcontractors bidding on City public works projects costing roughly $43,000 for single trade projects and $240,000 for multi-trade projects. Essentially, the ordinance adds contractor participation in defined apprenticeship programs, maintenance of employee substance abuse policies and disclosure of past violations of labor, environmental, antitrust or tax laws as prequalification requirements for bidding on City public works contracts. These higher prequalification requirements are expected to have an impact on the number and mix of bidders and the bid prices offered in response to public works bid solicitations. The nature of these impacts is, however, a matter of debate.
Some predict that the higher standard for prequalification will eliminate potential bidders, particularly small and newer businesses, from participating in the City public works bid processes. This will have the effect of reducing bid competition for City projects and result in higher prices paid by the City for public works construction. Others argue that the higher prequalification requirement will encourage participation by contractors who have avoided bidding in the past due to the unfair price advantage awarded contractors who do not participate in apprenticeship programs or adhere to the other additional requirements. In this view, greater competition may bring lower prices, better quality or both, and any higher prices which may be paid by the City are offset by the public benefit of encouraging and rewarding only those contractors that adhere to such practices.
The ordinance amendment will also result in additional administrative cost associated with administration of the prequalification process, enforcement of the ordinance requirements and the expansion of the publ...
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