APWA International Congress and Exposition in Columbus, Ohio.
Who Should Do the Work? Contractor vs. In-House
Two agencies that have won against contractors were Orange County and Pinellas County. The counties were successful due to the fact that they have followed these steps: identify potential candidates, compare to contractors cost, evaluate productivity, and utilize the Bid to Goal strategy with the Employee Incentive Program. The county must complete the iterative approach into order to accurately compare contractor’s cost to in-house costs.
MMS cost estimates should be generated, obtain the contractor’s cost estimates for comparison, and determine if it is more efficient and inexpensive for contractors or in-house crews to perform the activity. Review the unit cost components (crew composition, equipment usage, and work method), re-generate the bid cost estimates, and then meet with crews to discuss about the chances of making it happen. This presentation will give a detailed comparison between contracts versus in-house work and costs.
Harry C. Lorick, PE, PTOE
Principal, LA Consulting Inc, Manhattan Beach, CA
Public Works Director, Volusia County (Deland, FL)