Buying a roof the PIPS way
| • | State's new bid system for construction not foolproof |
| • | School roof slipped through cracks |
Advertiser Staff
The state's new Performance Information Procurement System (PIPS) is supposed to streamline the construction bidding process while ensuring that quality work by qualified contractors would be accomplished on time and within budget. Using the PIPS process, the state awarded more than $5 million in roofing contracts, primarily for schools, in 2001. How the system worked:
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The Honolulu Advertiser
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Forms available online ask contractors to gather information about their previous work record, including references.
THE PROMISE
THE REALITY
1. Contractors must pre-qualify ...
... but only good references are included
To be eligible to bid on state contracts, contractors fill out lengthy forms detailing previous work experience and solicit references from previous jobs. The state develops a ranking based on the contractors' submissions, and those with the highest rankings get the jobs.
Contractors choose from among previous jobs they've done — weeding out those they've had trouble with. Only good references are included.
2. Requests for proposals are submitted ...
... but only among a few contractors
Eligible contractors submit their management plans and bids. The state chooses among them to award the contract.
Because of the complexity of the pre-qualification process, only a few contractors make it to this point. In the case of the roofing contracts, only four contractors received almost all the jobs, worth more than $5 million.
3. Contractors accept the risk ...
... but it's no guarantee of protection
The onus is on the contractor to bring in the project in on time and within budget, meeting all the quality expectations set in the contract.
One contractor was caught substituting the wrong materials for a roof at Kalani High School. The manufacturer submitted a warranty for materials made by another company.
4. The contractor's performance is rated ...
... but the low scores are thrown out
Contractors are rated on a 10-point scale, with 10 being the best. The ratings are provided by the end user of the project, including school principals and custodians. The performance rating is listed on the Internet and is a basis for awarding future jobs.
Contractors have complained that the rating system is sometimes unfair, saying judges are biased — so the worst scores are thrown out.
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The Honolulu Advertiser
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A criteria for a roofing contractor's performance is listed online, and contractors are ranked accordingly.
Source: Advertiser research, www.state.hi.us/dags/dags_web/pips/overview.shtml
