October 24, 2003
November 21, 2003
December 19, 2003
January 23, 2004
February 27, 2004
March 26, 2004
April 23, 2004
May 21, 2004
June 23, 2004

A link was forged last Monday, November 8, connecting Minneapolis with southeastern Minnesota, when the new Fort Snelling-Mendota Bridge was officially opened for use. This structure, 4,119 feet from end to end, 120 feet above ground, with a roadbed 45 feet wide, is claimed to be the largest concrete arch bride in the world. Koss Construction Company, Des Moines, IA., built this bridge in two years, seven months. Fielding & Shepley, St. Paul, paved it and the Woodrich Construction Co., Minneapolis, paved the connecting highways.

vv

Joseph Hunt, President of the Ironworkers, Frank Hanley, President of the Operating Engineers, Douglas McCarron, President of the Carpenters, and Terence O’Sullivan, President of the Laborers, responded to questions from AGC’s union contractors committee.

Stephen Kimball, Chairman of AGC’s committee, said in his introduction that the four presidents were progressive, pragmatic and not afraid to make changes. The following are topics that were addressed.

Jurisdictional Disputes

Kimball told the panel that jurisdictional disputes continue to be a big problem. He relayed contractor sentiments that changes in the Plan for the Settlement of Disputes did not go far enough and should have given greater weight to contractor preferences in work assignments.

McCarron stated that the contractor should decide jurisdiction, and if a carpenter local loses work to another trade the local carpenter training should address the problem so carpenters get the next assignment.

The Operating Engineers has really decreased the number of jurisdictional disputes in which it becomes involved, Hanley said. He stressed the need for thorough pre-job conferences to head off work assignment problems.

Hunt expressed reservations about leaving the assignment of work to employers, saying he was concerned that employers would favor the craft with the lower wage rate.

O’Sullivan agreed that revision of the industry’s dispute settlement plan did not go far enough. He considered it repugnant that the industry’s union sector resolves work assignment disputes based on jurisdictional agreements between crafts dating back to the 1920’s and 1930’s and said it was symptomatic of where we are in the industry today.

Merging of Unions

McCarron stated that the small unions in the building trades rely on the disputes settlement plan to get the work. He said small unions would be around as long as there is a jurisdictional disputes plan that favors them.

As a small union, Hunt said the Ironworkers are talking with two other unions, which he declined to identify, regarding mergers or strategic alliances to achieve economies of scale through combined membership. Hunt predicted mergers among building trade unions but set no time frame.

O’Sullivan agreed with Hunt that mergers will occur among building trade unions in response to industry conditions. He stated that the decisions they make in the next five years would dictate what the industry looks like 25 years from now. He chided union leaders for not being as aggressive as they need to be in improving their organization’s competitive position.

Training

Hanley drew attention to the strength of the Operating Engineers’ training program. He stated that one of the best-kept secrets is the amount of training they are doing.

McCarron said the industry’s challenges and relentless competition have his full attention. He stated that while it would be nice to think that good past performance would bring in contracts today, it will not win contracts on its own. McCarron viewed his union’s responsibility as equipping members to work safely with the best skills and productivity in the industry and to see they receive the wages and benefits they deserve.

O’Sullivan said all Laborer local unions must have mandatory apprenticeship in their labor agreements by the end of 2004. He plans to seek a requirement at the union’s next convention for mandatory journeyman upgrade training on an annual or biennial basis to meet the needs of the signatory contractors.

 BNA
Construction Labor Report
Volume 49 Number 2441

 Electronic Reverse Auction Bidding Victories Achieved by AGC

Memo Agrees Construction Procurement Different from Commercial Items

AGC of America gained a significant victory this summer when on July 3, 2003, White House Office of Federal Procurement Policy (OFPP) Administrator Angela Styles issued a guidance memorandum to all Federal procurement executives stating that “… FAR (Federal Acquisition Regulation) Part 12, as currently promulgated, should rarely, if ever be used for new construction acquisitions and change or rescind agency guidance on the applicability of FAR Part 12 to construction acquisitions or non-routine alteration and repair services.” The memo goes on to state that, “I also ask that you promptly review any agency guidance on the applicability of FAR Part 12 to construction acquisitions and change or rescind agency guidance, as necessary, to ensure consistency with this memorandum.”

AGC has argued against Part 12 being used for the procurement of construction services, as Part 12 is applicable to procurement of commercial items and could include reverse auctions.  FAR Part 36, which was specifically designed to handle the unique nature of the acquisition of construction services, provides specific contractual clauses singularly unique to construction that provides strong protections to both the Federal Government and construction contractors alike. The clauses in Part 36 are accepted as appropriate in both public and private construction contracting. 

The OFPP acknowledgement that construction is not a commodity is a huge victory for construction advocates who believe that Electronic Reverse Auctions are inappropriate for acquisition of construction services.

On September 15, 2003, the United States Court of Federal Claims granted a Temporary Restraining Order to Minnesota AGC member Meisinger Construction Company, Inc. (“Meisinger”) in its bid protest action against the U.S. Army Corps of Engineers (the “Corps”).  The protest involves a “reverse auction” solicitation for the construction of a lodging facility at the Minneapolis/St. Paul Air Force Reserve Station.  Meisinger alleges that the Corps failed to follow procedures required by the solicitation when Meisinger experienced a problem with the bidding during the “reverse auction.”

Of particular note, the Court held that FAR Part 14.407-3, prescribing procedures for correcting bids, only applies to traditional sealed bidding and not to reverse auction solicitations like the one Meisinger is protesting.  The Court also held that, even if FAR Part 14.407-3 applied to reverse auction solicitations, the procedures for correcting problems specified in the solicitation in question superceded the FAR.