Panel says no to bill requiring pricing in bids

The House State Agencies and Government Affairs Committee said no Wednesday to a bill that would require government agencies and higher education institutions to consider price when accepting bids for certain professional services.

Senate Bill 521 by Sen. Jimmy Hickey, R-Texarkana, and Rep. Kim Hammer, R-Benton, failed on a voice vote after first advancing through the Senate.

The bill would have amended state law to allow price to be considered when state agencies, public institutions of higher education, and political subdivisions make a request for qualifications for solicited work. On requests for proposals, price would have been given at least 30% of the weight of evaluation unless exempted by the governor, a legislative body, or more than 50% by the governing body of an institution of higher education or a political subdivision.

Legal, architectural, engineering, construction management, and land surveying services would have been exempted until June 30, 2019. In the meantime, those professions would participate in a study of the state’s procurement processes with the Legislative Council, the group of legislators that meets between sessions.

When Rep. Andy Davis, R-Little Rock, a member of the committee and a professional engineer, asked what was wrong with the status quo, Hickey replied that agency directors have become accustomed to dealing with the same vendors and have grown complacent. Under the state’s current law, price is not considered until the negotiation process.

But longtime architect Brooks Jackson said that bidding professional services is unethical and that none of the 21 states where he practices requires it. He said he dreads telling young architects that the way to gain business is to be low bidder, and that forcing professionals to focus on price would hurt small firms and inevitably would result in inferior work with higher maintenance costs.

“It is human nature to do less if you’re paid less,” he said.

Denise Hoggard, Arkansas Bar Association president, said legal rates rise with expertise and that lower rates would result in entry level attorneys providing services.

However, Hammer said that sometimes younger professionals with up-to-date training are better than experienced ones, and he said the professions themselves weed out the bad actors. Hickey emphasized that the exempted professions would be studied and that if the status quo is determined to be the best option, it would remain.

Afterwards, Hickey said he is considering asking the Senate to refer the issue to an interim study.

Asked what inspired the bill, he laughed and said, “I think we’ve seen some contracts out there that, at least that we believe may have not have been handled in the most fair fashion.”