State Rep. Parker Fairbairn has introduced a plan to require state agencies to award state facility engineering and architectural design contracts based on the expertise and experience of the design firm, rather than just giving them to the lowest bidder.

“Our state shouldn’t be awarding every design contract to whomever submits the lowest estimate,” said Fairbairn, R-Harbor Springs. “It doesn’t make sense to automatically go with the cheapest option and ignore the potential long-term costs that may come with poor design and engineering. The sarcastic expression ‘good enough for government work’ may well have come from this very practice. The people of Michigan deserve and demand more for their money, and I believe this is one way to get if for them.”

Current law requires state government to accept the lowest bid when it comes to hiring architects and engineers to design state facilities, often leading to reputable companies being automatically excluded from consideration because their estimate for the initial design is higher though their more creative or innovative design might be better suited to the intended purpose and save money in the long run.

Fairbairn’s plan would alter the system by implementing a Qualifications-Based Selection (QBS) process, which would allow state agencies to consider the quality of work when deciding who should receive a contract. This practice is currently used by 42 other states and the federal government.

A recent study by the American Council of Engineering Companies found that QBS saves money and time, while also garnering a higher level of client satisfaction, with 89% of QBS projects receiving high or very high satisfaction ratings from project owners.

“It’s surprising that Michigan has yet to adopt these best practices for government contracts when the overwhelming majority of our country already considers quality as a primary criterion,” Fairbairn said. “Michigan should be less focused on the cheapest bid and focus more on health, safety, and long-term costs when awarding such contracts.

House Bill 4774 was referred to the House Regulatory Reform Committee and is scheduled for a hearing in mid-September.

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