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March 10, 2010

TRIBUNE-STAR EDITORIAL: What does ‘bidder’ ordinance resolve?

More info needed for labor proposal

Anonymous The Tribune-Star The Tribune Star Wed Mar 10, 2010, 11:01 PM EST

TERRE HAUTE — The already complex process of bidding out public works contracts could get a whole lot more complicated under an ordinance being considered by the Terre Haute City Council. But that may be the only point on which anyone involved in this debate is willing to agree.

Will the proposal, if adopted, protect the City of Terre Haute from unscrupulous contractors who submit low bids but do not follow local, state and federal laws?

Or will it have an adverse impact on the ability of local companies to bid and win contracts with the City of Terre Haute?

The rhetoric is flying hot and heavy, with local labor unions promoting the ordinance and the Terre Haute Chamber of Commerce opposing it.

Called the “Responsible Bidder Ordinance,” the proposal would establish qualification criteria for contractors and subcontractors bidding on city projects. It consists of five pages of regulations, but the primary purpose of the law is contained in a section that states this about the ordinance: “Confirms that all apprentices to be used on the project are registered with an apprenticeship and training program approved and registered with the United States Department of Labor, Bureau of Apprenticeship and Training (or any state or federal successor agency).”

The ordinance is being driven by organized labor. One union leader who addressed the City Council at a meeting last week said its aim is “to level the playing field” and ensure substandard contractors don’t win contracts simply by submitting lower bids.

The Chamber of Commerce opposes the ordinance, not because it doesn’t favor the city getting what it pays for, but because it believes most of the what the ordinance calls for is already part of state law. What’s more, it believes the ordinance would actually have a detrimental effect on local contractors who have been getting bids and doing excellent work for the city.

For example, Chamber representatives claim the registered apprenticeship program section could make those local contractors ineligible to win city bids. The ordinance, they say, also will mandate burdensome affirmative action requirements already covered by existing law. (See Wednesday’s Opinion Page Flashpoint essay.)

Bill Lower is president of the Terre Haute Board of Public Works and Safety and has had considerable experience dealing with contract bidding issues. He believes the ordinance would negatively impact the number of bids received for public projects.

But proponents say the ordinance will actually increase competition between qualified and responsible contractors. (See today’s Flashpoint essay on this page.)

The City Council must now sift through all the rhetoric. What they will find is that there are lots of questions to be answered before a reasonable decision can be made. For example, in what specific situations will this help the city? Who specifically will this ordinance harm? Does the city really have a problem that requires this solution? How is this ordinance working in the dozens of cities that have adopted it?

The ordinance could come to a vote at tonight’s City Council meeting. In the absence of answers, the council would be wise to resist this ordinance. That leaves it with two choices. Either table it and seek more information, or vote it down.

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