Taxpayer-funded construction projects should always be about the best work at the best price.
However, recent actions by the State Department of Transportation on a procurement for a heavy highway construction job in Orange County seem to indicate a dangerous policy shift within that state agency.
Lancaster Development Inc., a charter member of Associated Builders and Contractors, was the lowest qualified bidder for the reconstruction of Exit 122 in Orange County, providing a bid more than $4.5 million less than the next bidder.
Despite Lancaster being qualified with a proven record of recent successes on other similar public highway projects, DOT rejected its bid because the company did not embrace an alleged illegally added project labor agreement.
Lancaster's $4.5 million lower bid illustrates the simple truth that labor agreement s eliminate competition and cost taxpayers more money. DOT has ignored this fact and could set dangerous precedent that may potentially cost taxpayers more money for construction jobs. In the worst economy since the Great Depression, it is unacceptable for any state agency to ignore its fiduciary obligation to taxpayers.
This is the first time in recent memory that a labor agreement was added to a state DOT heavy highway construction job in upstate New York. This labor agreement included a flawed study, which failed to consider three similar projects that were built by open-shop contractors, saving taxpayers $46 million, an amount 22 percent lower than any union firm that also bid on the project.
Furthermore, that same study estimated savings resulting from negotiation of the labor agreement of $1.7 million. In actuality, the bid was $4.5 million lower without the agreement.
On behalf of merit-shop contractors and taxpayers across New York state, I encourage the State Department of Transportation to throw out the current bids and reissue a procurement that subscribes to the ideals of free enterprise and invite all qualified companies to submit a competitive, fair and open bid unhindered by pre-negotiated labor agreements.
Stephen Lefebvre is president of the Empire State Chapter of Associated Builders and Contractors Inc. The organization represents more than 600 merit-shop construction contractors and subcontractors employing thousands of workers throughout the state of New York.
