Extensive process takes public projects from idea to reality

Mississippi's most expensive publicly-funded project underway now is the $31-million NASA Shared Services Center on the Coast.

"This facility consolidates many NASA agency activities under one roof including human resources, financial management, information, technology and procurement," says Kym Wiggins, a spokeswoman for the Department of Finance and Administration/Bureau of Buildings (DFA/BOB).

Wiggins says the state has approximately $1 billion in projects for state agencies and colleges now under construction. "It is not a record number of projects.

"The state has seen a significant increase in the construction program over the last 10 years. However, the construction has leveled off to the $1-billion mark for about the last five years and has remained with little variance at that level," she adds.

According to Wiggins, "It is also important to note that the Institutions of Higher Learning also manages a significant construction program that does not flow through the Bureau of Building."

Review and approval from PPRB

She said by law, new construction/renovation projects more than $5 million must come through the Mississippi Public Procurement Review Board (PPRB) for review and approval.

The contract award process follows state purchasing guidelines.

"All projects over $25,000 must be competitively bid. DFA/BOB staff prepare a request for proposals and advertises for the statutory required time of two weeks- once each week. For construction-related projects, there is a waiting period between the last advertisement and opening of bids for at least 15 working days," says Wiggins.

She adds, "After receiving and reviewing bids, the lowest and best bidder is selected. The lowest and best bid is then taken to the PPRB for review and approval. The contract is awarded by PPRB upon completion of a signed contract and a notice to proceed is issued to the contractor."

Wiggins says it is difficult to give a definitive time period for project completion. "There is a process that must occur in the life cycle of a project that includes several variables that ultimately determine the length of time it takes to complete a project," she adds.

"All projects are thoroughly pre-planned to determine cost, materials, timelines, use and functionality and site selection. This process is crucial as it serves to mitigate the impact of these and other variables on the final cost and completion time of a project," says Wiggins.

And the bidders are...

When it comes to bidding on projects, Wiggins says the size and scope of projects generally dictate what companies will bid on a particular project.

"Typically, projects that are smaller in scope tend to draw a wider, more varied pool of bidders. These are projects that may be $1 million or less. Conversely, projects that are bigger in scope such as the construction of the Carroll Gartin Justice Facility draw fewer bidders. Often, there are several of the same companies who bid on the larger most complex projects. This is in part because they have well established records and have demonstrated that they have the capacity to complete large projects," says Wiggins.

She adds, "Also, by state statute, contractors bidding on projects $25,000 and over are required to secure a bid bond by a surety licensed in Mississippi in the amount of 5% of the base bid or they may provide a certified check in the amount of 5% of the base bid."

Wiggins notes contractors must be able to secure a performance bond in an amount sufficient to cover the cost of the project before the state can enter into contact with a company. "While the requirement of bonds serve to protect the state's interest in a particular project, they may prove difficult for some companies to obtain," she says.

Construction companies who have never submitted a bid for publicly funded projects can read the DFA/BOB manual, which offers most of the information that an interested company would need to know to submit a bid on a state project.

"The BOB 'Engineering and Construction Procedure Manual' presents information to companies interested in bidding on state projects," says Wiggins.

She says, "Also, companies must have a Certificate of Responsibility from the Mississippi Board of Contractors to bid on projects over $50,000."

Experience makes difference

One Mississippi company that does publicly funded projects is the Harrell Contracting Group, LLC, (HCG), which works in 10 states throughout the Southeast. Harrell Contracting Group, LLC has historically performed approximately 25% of its annual sales in public funded projects.

"At present, HCG has four public projects, two for the State of Mississippi and two on state university campuses. The largest of the public projects is the $28-million M.M. Roberts Stadium Expansion on the University of Southern Mississippi campus," says Harrell vice president Tom Black.

Black says the execution of work for public bodies is handled no differently at HCG than with work for private clients. "From preconstruction services through final completion, our public owners expect a high level of management, quality and performance," he adds.