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10/6/2010
Unconscionable use of taxpayer dollars. Unbelievable.
It’s unconscionable. Criminal. Or something.
The federal government has awarded the contract to a build a causeway to Renard Isle to a Milwaukee company for more than three times what two Green Bay-area companies bid, a difference of more than $1.7 million.
The U.S. Army Corps of Engineers negotiated a $2,423,336 contract with Nuvo Construction Co. to build the 850-foot causeway that will be used to haul material to eventually cover contaminated Fox River sediment deposited on the island as late as the early 1990s.
…. PTS Contractors, of the town of Eaton, and Advance Construction, of the village of Howard, were the only two bidders on the project. PTS bid $684,046, and Advance put in a bid of $763,602.
The Corps notified those companies that their bids were rejected because they are not located in Hub Zones, a requirement established by the Corps when the bids were sought.
Hub Zones are areas established by the Small Business Administration to generate economic development. Brown County, however, does not have any Hub Zones.
Who will raise hell about this? $1.7 million vs. $684,046. Unbelievable.
Jo Egelhoff, FoxPolitics.net
COMMENTS
What do you think should be changed? I looked up hub zones
There are four types of HUBZone contract opportunities: Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price. Sole-source: HUBZone contracts can be awarded if the contracting officer determines that: only one qualified HUBZone SBC is responsible to perform the contract, two or more qualified HUBZone SBCs are not likely to submit offers and the anticipated award price of the proposed contract, including options, will not exceed: --- $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or --- $3 million for a requirement within all other NAICS codes Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business. Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal.
Looks like they could have had "full and open" bids but did not.
Dean Weichmann (Wed Oct 06 08:03:18 2010)
Remove onerous, burdensome federal regs that triple the costs to taxpayers, wasting $1.7 million! Is that a cost for economic development that should be tolerated?
Jo (Wed Oct 06 08:37:54 2010)
Jo: Speaking of waste you need to check out the new regulation called RETROREFLECTIVITY!!!. This means that all traffic signs must meet certain criteria by 2018. In Winnebago County alone this will cost $100,000 for sign compliance times 72 counties could be $7.2 million so all the signs look alike. You can check out this on www.fhwa.dot.gov/retro. Government out of control!!!
Jay Schroeder (Wed Oct 06 08:54:06 2010)
Were there other regs that applied here?
It appears that the decision was made to not have "full and open bids". Why not? Cuz the contract was less than %5M?
>>>Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.<<<
Dean Weichmann (Wed Oct 06 08:56:37 2010)
Yes Jay. I objected to this retroreflectivity business when lots of dollars showed up in Appleton's budget last year.
Jo (Wed Oct 06 09:03:54 2010)
I suppose it would be helpful for you to dig into it Dean. Still, I repeat - what rationale would excuse spending 300% of what must be spent?
Jo (Wed Oct 06 09:05:54 2010)
This was in the comments at the GB press-g;
>>>Before we get too far into the blame game, we need to realize that the basis of the decision, the so called HUBZones were not a lib/democrat idea, and were proposed and passed during the Bush II administration. By republicans (& democrats alike).
I agree with posters whom are critical of the decision.<<<
So why not full and open bids? Time constrants with the early decision to go with non-competitive? One would have to ask the person in charge at the Army Corps of Engineers.
Dean Weichmann (Wed Oct 06 09:33:47 2010)
My goodness. I never thought I'd agree with Rep. Kagen on anything. But low and behold he's actually doing something I agree with re. the corps.
Taken from the G.B. Press Gazette 10/6
U.S. Rep. Steve Kagen, D-Appleton, has asked the corps to halt work on the project until a study of its bidding process can be completed.
"There is something terribly wrong with this awarding process and the dollar amount of the contract itself," Kagen wrote to the corps' Engineer Inspector General in Alexandria, Va. "Stop the engines now.
Lets hope he keeps up the fight!
Then to top off this whole matter was the qualification (lack of) of Nuvo.
Commission member John Gower wrote to corps officials questioning the qualifications of Nuvo.
"That organization … engages in residential and industrial building construction, remodeling, framing, roofing, drywalling, insulation, painting, flooring, landscaping, remediation and redi-mix concrete work," Gower wrote. "Nowhere does it appear that they've ever constructed a bridge or causeway." That is really assuring isn't it? You know, I think I could work for them!
But, Nuvo I'm sure, is just trying to give people work. "Socialism at its best" Take from the rich taxpayers.
They do know how to work the books apparently. Nuvo Construction bid $2,423,336 - smart move. They could simply hire PTS Contractors to build it for their original bid of $684,046. If my math is correct, Nuvo wouldn't have to do a thing and they'd still make a profit of approximately $1 million $740 thousand. No wonder companies want to start up in HUB zones and "generate economic development".
But its only "government money" so why should we care?????
Mary Hoffman (Tue Oct 12 10:20:27 2010)
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