PORT OF SEATTLE

MEMORANDUM

SUBJECT: Resolution No. 3616, Second Reading, Final Passage. The Small Works Roster

Resolution

ACTION REQUESTED

Resolution No. 3616, Second Reading, Final Passage. Authorizing the Chief Executive Officer

to establish and implement a small works roster program and process to award public works

contracts, including a Limited Public Work roster, in compliance with RCW 39.04.155, RCW

activities into the Central Procurement Office (CPO), a close look at the audit findings, and an

internal review of practices and state law requirements, the Port determined that it needed a

resolution to ratify its small works roster program and authorize continued use of the program.

The purpose of the small works roster program is to establish a quick and less costly process to

award public works contracts with an estimated cost is $200,000 or less. Recent legislation has

increased the threshold to $300,000. Instead of advertising every project, the small works roster

program only mandates that the Port advertise notices of the existence of the roster and solicit

names for the roster. At the same time, rules implementing the small works roster program are

intended to safeguard the competitive bid process so that every public work contract is awarded

to the lowest responsible bidder consistent with public bid law.

Under RCW 39.04.155, the Port may create a single general small works roster or rosters for

different specialties of anticipated work. At any time a responsible contractor submits the

necessary records along with a written request to be added to a roster, the Port must add the

responsible contractor to the roster. In addition to the legally mandated advertisement, the Port

promotes its roster and encourages contractors to get on the roster throughout the year. The

Office of Social Responsibility (OSR) plays a vital role in getting word out and encouraging

small businesses to get onto the Port’s roster.

The Port does not currently have a program established for limited public work small works

projects, those projects with a value under $35,000. This proposed resolution would authorize the

the performance and payment bond that local governments must have on file from prime

contractors, local governments must also withhold five percent of money due to a prime

contractor until completion and/or acceptance of the contract. The money is to be set aside as a

trust fund for the protection and payment of anyone who performs labor, provides materials,

supplies, or equipment or subcontracts to the prime contractor. The Department of Revenue has

lien rights against this fund for payment of unpaid taxes and the Department of Labor and

Industries has lien rights for nonpayment of prevailing wages.

Waiving these requirements may remove potential barriers for small businesses but raises legal

risk issues. A waiver would subject the Port to liability for the debts owed by the contractor to its

laborers, mechanics, materialpersons, suppliers and subcontractors. It also exposes the Port to

an appropriate roster and software system to manage and ensure compliance with the Port’s legal

requirements. The Port has identified the need to revise and improve its roster systems, including

its small works roster software program. CPO, OSR, PCS, and Information and Communications

Technology division will be working together on this issue later in 2009/2010.

ALTERNATIVES & IMPLICATIONS

1. Do Nothing. If the Commission does not authorize this resolution, the Port will need to

stop all small works roster procurements. Those procurements would need to be

advertised and conducted in the same manner as major construction procurement.

2. Pass the Resolution. Small works roster is a tool that the Port would like to maintain in its

procurement toolbox. It provides the Port with opportunities to quickly secure contracts

for small dollar value contracts. We recommended this action.