Rejection of Bids

When awarded a public contract, the invitation to bid (IFB) requires the contractor’s bid to be responsive to the material requirements of the bid. An article recently published by Better Roads magazine examines the issues associated with the Federal Highway Administration’s (FHWA) position on rejecting a contractor’s bid for what might appear to be a “minor” deviation from the requirements of the IFB.

As the article states, minor deviations may be waived, though material deviations may not. The failure to properly complete a bid form is a material deviation justifying rejection of a bid as non-responsive. Similarly, the failure to acknowledge amendments to an IFB, or submit a complete and unqualified bid form, is considered nonresponsive.

However, minor informalities (of form and not substance) can be corrected without prejudice to other bidders and can be waived at the owner’s discretion.  The key test is whether the bidder can be held to perform after taking into consideration all bid deviations so there would not be a competitive advantage over the bidders.

In the example of Massillon Construction and Supply, Inc., the Comptroller General (CG) denied and the protest of road contractor, Massillon (MCSI), finding its bid was non-responsive because it failed to submit a separate price for optional work as required by the IFB.

The FHWA solicited bids to rehabilitate approximately six miles of New Found Gap Road in the Great Smoky Mountains National Park, Tennessee, divided into three schedules of work. Bidders were required to submit prices for each contract line item. Prior to the bid opening, the FHWA amended the IFB to add a third option for intelligent compaction (IC), coring and coordination with respect to a portion of the first part of scheduled work. In addition, the amendment included new a new pricing page, requiring entry of a lump sum price for the added option, therefore requiring a new summary page that added a line for all of the schedules and the sum total.

Because MCSI did not receive the amendment in its entirety due to fax machine issues, the contractor’s total bid price was the lowest received by bid opening, and the bid ended up being rejected as non-responsive because it did not include prices for all of the scheduled of work.

MCSI filed a protest with FHWA asserting its bid was in fact responsive because it merely acknowledged the amendment. MCSI argued its price for the first schedule included pricing for the last and additional schedule of work, and further argued FHWA could waive the omission of the specific schedule price for the last item’s price as minor informality.  After submitting a revised bid schedule, FHWA denied its protest and MCSI protected to the CG.

In sum, the CG found the mere acknowledgement without a price is insufficient to constitute a bid since doubt exists as to the amount of the bid and the bidder’s obligation to perform the increased work. The CG also found that MCSI’s explanation that its price was included in a different line item was inadequate since nothing established the price for the last schedule added. The CG stated that MCSI’s nonresponsive bid could not be made responsive by explanations after bid opening, since doing so would effectively allow the bidder to elect whether to accept or reject the additional work.

In the end, MCSI’s failure to include a specific price for the last schedule resulted in their bid protest to be denied. Moving forward, it’s important to distinguish minor deviations versus material deviation when receiving invitations to bid to ensure issues such as these do not occur. The full article can be read here.

American Structurepoint Goes Hollywood

We had a rare opportunity to perform structural evaluations for warehouses used in the television series “Nashville.” Learn more about this incredible experience! Read the story HERE

Transportation Funding Challenges

In recent years, the uncertainty regarding federal funding for transportation has continued to rise. This pressure to keep funding for transportation stable has caused some states to implement other solutions. States such as Wyoming, Virginia, Maryland, and Vermont are increasing their excise or sales taxes on fuel in an effort to boost revenue for transportation needs. This newfound movement could prompt other states to follow suit through the willingness on the part of lawmakers to raise taxes related to transportation.

In an article recently published by Civil Engineering magazine, the authors examine why the funding for transportation has declined. It’s no surprise that because of the difficult economic conditions in recent years, many states have faced a series of challenges regarding transportation funding, including chronic gaps between investment needs and outlays, a growing need for transportation services, and less revenue from gas prices as motorists switch to vehicles offering greater fuel efficiency. As the article states, these factors combined have put states in a real bind, in terms of paying for their transportation needs.

Another contributing reason why transportation funding has become an issue is because of the stopgap of funding from legislation (known as the MAP-21 law) that occurred between the years of 2009 to 2012, therefore complicating efforts by the states to conduct long-range planning.  MAP-21 will provide stable funding through the fiscal year of 2014, but after that any certainty for states begins to fade.

Therefore, states are seeking to boost the transportation funding they receive from the federal government. The federal program has some stability right now in terms of being able to fund at the MAP-21 levels through the end of the next fiscal year.  However, there is a lot of uncertainty about how to keep the program going thereafter, so states are focusing on ways to go above and beyond what they can expect to receive from the federal government.

An example of this is shown as Wyoming has increased its taxes on gasoline and diesel fuels by 10 cents per gallon. The state has also enforced a law which also increases taxes on snowmobiles, off-road vehicles, and motorboats, which is expected to generate nearly $72 million additional revenue for the Wyoming Department of Transportation.

As other states have moved forward with enacting legislation to vamp their approach to funding transportation infrastructure, leadership by governors has proved crucial in increasing the overall goal in expanding transportation funding. As we examine our own state’s revenues dedicated toward transportation funding, following the examples led by Wyoming and other states could be necessary. The full article, “Transportation Funding Challenges Prompt States to Consider Gas, Sale Tax Increases” can be read in its entirety in the June 2013 issue of Civil Engineering magazine.

Mobile Computing: Wield Desktop-Grade Power in the Palm of Your Hands

Smartphones and tablets are not just used for electronic communications, accessing media, or surfing the Internet anymore. These are also among a new generation of business tools, enhanced by Cloud-based business applications that enable accurate recording of data in the field and 24/7 collaboration among employees.

In a recent issue of Engineering Inc. magazine, the “Mobile Power” article described the current climate and proposed future of mobile computing in the engineering industry. The key driver of mobile technology in the engineering industry is the ability to bring a smartphone or multimedia-rich tablet onto a job site, even a sewer if necessary, to observe and record data in real-time, while still fresh in the engineer’s mind. Remote staff greatly benefit from mobile field information management software and consulting services. Technology gives engineers the ability to download plans, designs, drawings, and graphics on site and make markups, as well as take high-res photos and video of projects.

A white paper recently published by American Structurepoint described how we’ve helped clients implement and deploy Microsoft Office 365 (Office 365), a desktop suite with Cloud-based versions of next-generation communications and collaboration services. Office 365 features Microsoft Exchange Online, Microsoft SharePoint® Online, and Microsoft LyncTM Online, which are delivered and accessed over the Internet (the Cloud). All the information storage, computation, and software is located and managed remotely on servers owned by Microsoft. Having this infrastructure online allows employees to access email, documents, contacts, and calendars virtually anywhere from a desktop, laptop, tablet, or mobile phone. By moving a company’s software and services off local machines and onto Microsoft-hosted servers, it is able to lower hardware overhead costs, decrease electricity costs, better predict IT budgets, and simplify IT system management. Read the free Office 365 white paper here.

It is evident the mobile work environment is a growing trend in business. However, firms are also concerned with keeping confidential business data safe when it comes to inviting employees to bring-your-own-device (BYOD) to work, a movement especially popular among small businesses. When employees bring their own smartphones and tablets to work, mobile device management solutions should be used. Forbes suggests these five BYOD tips:

1. Make sure all devices are password protected.
2. Do not store important corporate information on devices locally.
3. Back up all servers and devices often.
4. Allow applications to be downloaded from the Internet only if you can verify that the information is trustworthy and will not harm your network.
5. Make sure all mobile devices, personal or company-owned, can be remotely wiped if they are compromised, lost or stolen.

Lastly, keep in mind that all employees using mobile technology should be properly trained, following company policies regarding the use of company-owned and employee-owned devices. Safety on site is another concern on the job. For example, employees operating machinery should be reminded to only use hands-free devices.

Read the May/June 2013 issue of Engineering Inc. here.

American Structurepoint Named Among Top Design Firms

Engineering News-Record (ENR) Midwest has once again recognized American Structurepoint on its list of the Midwest’s Top Design Firms. Of the firm’s $56.67 million regional revenue in 2012, 52 percent came from transportation projects, 20 percent from general building projects, and 12 percent from sewer/solid waste projects.

In addition, Architectural Record magazine has recognized American Structurepoint on its list of Top 300 Architectural Firms based on 2012 revenue of $8.20 million in architecture services.

For more information, view:

ENR Midwest’s 2013 Top Design Firms by Region 

ENR Midwest’s 2013 Top Design Firms by State

ENR’s 2013 Top 500 US Design Firms

Architectural Record’s 2013 Top 300 Architectural Firms

The Future Financial Picture for Firms

In recent findings from the Deltek Clarity Architecture & Engineering Study, undertaken in association with The Association of Consulting Engineering Companies (ACEC), the study compared 2012 data on the four most important operating metrics for architecture/engineering firms and provided a perspective on just how quickly firms are recovering. Those four vital operating metrics included:

The net labor multiplier: The study finds a measure of markup on labor costs has been relatively flat over the past three years among surveyed firms, fluctuating between 2.85 and 2.95.

The utilization rate (also known as chargeability), which measures the percentage of total staff labor charged to projects. The study’s findings show that it rose in 2012 from 58.3 percent to 59.9 percent and now is up more than five percentage points since bottoming out two years ago. However, it was indicated there is still room for improvement, as it was at 63 percent in 2004.

The overhead rate dropped by more than ten percentage points last year from its peak in 2011. The Deltek-ACEC study stated the overhead is now at the lowest rate since the recession began. The key drivers here are increasing utilization, which decreases labor charged to overhead, and a continued focus on cost control. The overhead rate is calculated by dividing total overhead (before distributions) by total direct labor expense.

The fourth and final factor is the operating profit rate, which after reaching a decade low in 2009 at 8.35 percent, has continually and steadily risen to 10.13 percent during the last year.

As we examine these indicators for our own A/E firm, the results seem to indicate the recovery is slow but steady. This study was originally featured in Engineering Inc. magazine. The full article can be read here.

An Important Infrastructure Investment: Integrating Asset Management Systems Enhances Shop Productivity

In a recent article published by Public Works magazine, the editors examine how one community is optimizing their fleet maintenance program, and by doing so, they are saving money and delivering responsiveness with the investment.

In 2009, the Sacramento, California, City Council approved a five-year contract to install a system that would automate work orders by integrating existing vehicle maintenance software with electronic inspection reporting and real-time diagnostics. This telematics platform and inspection system implemented by Zonar cost $750,000 for about 600 vehicles. The City of Sacramento’s Fleet Management had about 2,300 vehicles across five maintenance shops in assets.

Since the investment in this new technology, the City has experienced smoother workflows and streamlined diagnostics dramatically reduced downtime during the day. Because they preferred to maintain refuse trucks at night and work on other assets during the day, they were able to manage the equipment of other internal customers more efficiently, and helped those departments avoid unnecessary downtime as well.

Additionally, fuel consumption fell 25 percent, because drivers spent less time idling and drove more slowly over more efficiently designed routes that eliminated unnecessary or unauthorized miles traveled.  As a result of offsetting Zonar’s monthly service fees, the reduction helped the City meet stricter state emission requirements while fulfilling the City’s Climate Action Plan and Fleet Sustainability Policy.

Even more, the City has become so efficient that they were one of the few government fleets in the state that hasn’t had to lay off employees, and as a result, all replacement equipment is now budgeted to include the hardware, and eventually, almost all heavy-duty vehicles will have the equipment.

For further details about how this innovative system works and operates, the full article can be read here.

American Structurepoint Sponsors Leadership Academy

American Structurepoint, which served as a 2012-2013 program session sponsor for the Hamilton County Leadership Academy, would like to congratulate the recent graduates of its 22nd class. The Leadership Academy, a nonprofit organization located in Noblesville, Indiana, was established in 1991 to educate and inspire community leaders to apply their skills to government, business, and civic activities to create a positive impact on the future of Hamilton County, Indiana. Through a 10-month program, participants study local issues in preparation for leading active roles in promoting awareness of these critical issues facing Hamilton County.

Find out more information about the program at http://www.hcla.net.

Studies Indicate High-Performance Concrete Could Double Bridge Life Expectancy

Researchers at Purdue University are studying a process of internal curing of concrete that could reduce cracking and double the life expectancy of concrete bridge decks. Cracks form in conventional concrete decks due to weathering, years of wear and tear, and “shrinkage” caused by the water used in the process of externally curing concrete. Once cracks form, deicing salts may slip through to the underlying steel, thereby weakening the structure. As a solution, internally cured concrete cures from the inside out as water is released within the mixture, reacting more of the cement and strengthening the bond of the concrete (reducing shrinkage).

Jason Weiss, Ph.D., M.ASCE, a professor of civil engineering at Purdue and the director of the Pankow Materials Laboratory, began his research on internally curing concrete in 2004, based on similar studies published in Europe. He and his team have experimented on nearly full-scale concrete deck samples in the Pankow Lab, collaborating closely with the Federal Highway Administration, National Institute of Standards and Technology, and Indiana Department of Transportation.

Together, the team subjected the samples to conditions that typically lead to rapid salt ingress, corrosion, and cracking. “The internally cured samples remain crack free and corrosion free after more than three years of testing,” Weiss said in an interview with the American Society of Civil Engineers’ Civil Engineering magazine (May 2013).

According to a recent news release from Purdue, “The Joint Transportation Research Program, a partnership between INDOT and Purdue, worked with Weiss and INDOT to create specifications for implementing the internally cured high-performance concrete. It will be used on four bridges this year, the first of which will be on State Road 933 in St. Joseph County, Indiana.”

Learn more about the process here.

Innovative Fish Hatchery Reduces Energy Demands to Sustain Alaska’s Sport Fishing Industry

With a reported 290,000 licensed anglers fishing in 2011, their economic effect on the state of Alaska is a booming $1.4 billion a year, but the popular sport is also depleting waterways of fragile native fish populations. To sustain the sport fishing industry in the southern part of the state, the William Jack Hernandez Sport Fish Hatchery in Anchorage, Alaska, is using innovative technologies to reduce energy waste, using only five percent of the water volume and energy required by systems at conventional hatcheries. Spanning the length of two football fields, the Hernandez Hatchery is the largest of its kind in North America, annually replenishing Alaska’s rivers and lakes with six million salmon, trout, and grayling.

Development on a brownfield that served as a cooling pond for a military power plant, the hatchery’s site challenges included lowering the water table, removal of petroleum-contaminated soil, screening for Native American artifacts, and avoiding damage to salmon runs and eagle nesting spots. In addition, the construction of the facility, which took place over five phases, included intricate pipe placement for the heated and cold water needed to rear fish, dispose of fish waste effluent, and supply the building’s heating system. The use of 3D modeling provided design solutions for fitting the complex pipe network around steel columns, the foundation, and ductwork. The 3D modeling also enabled designers to virtually drive forklifts through the facility to address critical items such as overhead clearance.

Seventy six large circular tanks at the hatchery are separated into 35 fish rearing modules, each of which is managed with its own water treatment system to provide pure, clean water to rear the fish. The $89.5-million, 141,000-sft facility, owned and operated by the Alaska Department of Fish and Game, uses intensive recirculation technology to cut back on water waste, reusing up to 95 percent of its water. The hatchery uses pump-driven aquaculture systems to maintain water flow so fish will not die. In the case of a power outage due to severe Alaskan winters, the hatchery features backup generators that will switch on in less than two minutes. Natural light and thermally efficient windows also reduce energy use in the facility.

The hatchery began operations in 2011. By 2014, it will support 20 regional fishery programs at 137 sport fish stocking sites. The anticipated 100,000 visitors a year to the hatchery can witness fish life stages through a 10,000-sft viewing area into the facility and attend educational opportunities in the supplemental public meeting space, as well as walk along five acres of landscaped grounds and trails to watch stocking and other operations, helping to promote and support the important sport fishing industry in Alaska.