Local contractor raises issues regarding bids for city project

The Grand Junction City Council tabled a vote to award a contract for recoating a tank at its water treatment plant after concerns about the winning bid were raised by a local company that also bid on the project.

The City Council was set to vote to award a $821,300 contract to Mandros Painting, a Wyoming company that delivered the lowest bid out of 11 companies that submitted bids on the project. The second lowest bidder was WBS Coating, which is based in Grand Junction, at $876,817.

WBS Coating owner Aaron DeRose said the City Council should favor keeping its contracts with local companies where the money would directly benefit the local economy.

"The question before you tonight is one of values and priority," DeRose said. "The contractor currently positioned to be awarded this project is based in Wyoming, a state that does not have state income taxes. That alone creates a structural advantage over Colorado-based companies. In effect, local companies like WBS are competing against an uneven playing field."

WBS Coating's attorney also raised the possibility that the low bid may not comply with the Keep Jobs in Colorado Act, which requires that 80% of the employees working on the job be Colorado residents.

Grand Junction Chief Financial Officer Jay Valentine said Mandros originally did not include a plan to comply with the act, but after being informed their bid didn't comply, it came back to the city with a plan to comply with the act.

Council Member Anna Stout said the city's procurement policy is restrictive in what the City Council can consider. Valentine said the city does not have a local preference policy. He said he was only aware of three such policies in the state.

"It's not best practice to have local preference because it has the effect of limiting competition," Valentine said. "For instance, maybe some vendor in Grand Junction doesn't think it's worthwhile to bid in Garfield County because they're starting 5% behind the eight ball."

Council Member Robert Ballard said he found the testimony from WBS Coating compelling and said he would favor creating a local preference policy in the future. Ballard also questioned how the Keep Jobs in Colorado Act is enforced. Valentine said it is enforced on a complaint basis by the state, not the city.

The City Council voted 7-0 to table the item to give staff more time to research the issues raised around awarding the bid and how much latitude the City Council had in awarding it.

MATERIALS RECOVERY CONTRACT

The City Council also voted unanimously to award nearly $4.3 million to KR Construction Group for construction of phase one of its materials recovery facility.

General Services Director Jerod Timothy said the city had purchased the equipment for the facility, which will arrive in early August. The phase one construction will include modifying the facility and installing that equipment.

"We're getting the building ready for equipment to arrive on Aug. 3," Timothy said. "The equipment slated to show up on Aug. 3 requires walls to be removed, those pits to be constructed so that equipment can be recessed into the ground there."

KR Construction Group was the sole bidder for the project. Timothy said the tight timeline on the project is why the city received only one bid.

Phase two of construction on the materials recovery facility will include the construction of administrative offices and other support spaces, including a public education space.