State seeks to protect taxpayers from bargain-bin boondoggles

Everybody loves a bargain, but too often, so-called bargains morph into disappointing boondoggles.

I’m reminded of when I was 14-years-old and desperately wanted a boat. I saved my dollars and found a 14.5-footer with a 1967 Chrysler outboard motor. I bought it for around $450 and couldn’t wait to see it in action.

I was ecstatic and could probably envision being adored by girls as I captained my own vessel, which became affectionately known as the “Marcinator” (seriously).

Unfortunately, the first time I tried to start it nothing happened. The boat just helplessly drifted in the Grand River.

Another time in the Muskegon River, my friend and I managed to get the engine running, but it suddenly died and the Marcinator began taking on water. We somehow got back to shore, and I paid a mechanic far too much money to fix it.

In the end, it proved to be a bargain-bin boondoggle and was probably more than a little dangerous, which is an important lesson—not just for individual consumers—but for governments.

Federal, state and local governments find a host of ways to spend taxpayer money, and they are supposed to be fiscally responsible stewards as they do it, which relates to my cautionary tale.

In order to build public works, roads and bridges, local governments request bids from architectural and engineering firms to design the project, and because of current state law, they are permitted to award contracts, in large part, to the lowest bidder.

At first blush, this probably seems like a conscientious use of taxpayer money, but focusing on cost first rather than quality obviously creates a host of problems.

Think of this another way: This is akin to hiring managers requesting that applicants only send them their salary requirements, no resumes, and then hiring the person who demanded the lowest pay. You simply do not get quality or good value this way.

To address this glaring issue, Sen. Ed Setzler, R-Acworth, is championing Senate Bill 51, which would ensure that local governments procure specific future projects using a qualifications-based selection (QBS) system. This paradigm is pretty simple. Counties and cities determine that a project is needed and then request qualifications from architects, interior designers, land surveyors, landscape architects and professional engineers.

Then government officials determine which firm is the most qualified to do the job, and they enter into negotiations over price. If they agree, then they can ink the contract and start work in earnest, but if they cannot settle on the terms because they are too expensive, then the government can move on to the next most qualified firm. In this way, local governments first focus on qualifications and then secure a reasonable rate to their liking.

This is not some half-baked, untested model either. The federal government and state of Georgia require it for their contracts, and for good reason. Public works must be durable because when they fail, they can result in mass casualty events. Burst sewer lines can lead to contamination and disease, improper drainage can cause flooding, bridge collapses can result in the deaths of motorists and pedestrians and so forth.

In short, quality design is a matter of public safety, but it goes far beyond that. Studies have shown that focusing on qualifications—rather than the cheapest possible options—can reduce construction delays and cost overruns. What’s more, given that designs secured under a QBS-system are of higher quality, the project will likely have fewer flaws, which limits the amount of maintenance it will need in the future.

Professionals understand this too. In one legislative committee hearing, Rep. Brad Thomas, R-Holly Springs, who is also an engineer, spoke in favor of Setzler’s legislation. “I have operated, maintained and built several engineering firms, but I have never [received] one dime from municipal governments,” Thomas stressed as he demonstrated that he does not have any conflicts of interest whatsoever regarding this QBS proposal. However, he asserted, “[QBS] is a proven practice […] with absolute success from anyone who has ever seen it.”

Setzler’s bill continues to meander its way through the legislative process, but not without some limited opposition. A representative of the Association of County Commissioners of Georgia (ACCG) testified in more than one hearing—outlining the organization’s steadfast opposition to SB 51. This is curious considering that ACCG endorsed the use of QBS as recently as 2020, although they take offense to the state requiring it.

Even with minimal opposition, the Legislature adjourns on April 4—meaning time is of the essence to save taxpayers from construction delays, cost overruns and flawed projects. If lawmakers fail to follow through in time, then expect Georgians to be subject to bargain-bin boondoggles much like my former money-pit—the once beloved Marcinator—and suffer similar consequences.