Masonry Magazine November 1964 Page. 19
GSA ANNOUNCES NEW REGULATION
DESIGNED TO ELIMINATE "BID-SHOPPING"
The General Services Administration (GSA) announced on Nov. 5, the issuance of a new regulation "designed to eliminate the practice of 'bid-shopping' by construction contractors for Federal projects."
The regulation, which takes effect immediately, will require all bids on construction and alteration contracts estimated to cost in excess of $150,000 and where the type of subcontracting to be performed is estimated to be at least 32% of the estimated total cost of the contract, to list the name and address of the principal subcontractors.
The GSA, which serves as builder, buyer and property manager for the Federal Government, has been testing the new procedure since Aug. 1963, and claims its effectiveness has been demonstrated and that the new regulation is "issued in the best interests of the Government and the construction industry."
Bernard L. Boutin, GSA Administrator, explained that the regulation provides that bidders be given an additional 48 hours after submission of their bid to supply their lists of proposed subcontractors. This provision, recommended by members of the contracting industry, allows additional time for the general contractor to properly analyze, evaluate and confirm subcontractors' bids to him.
"GSA and the construction industry," Boutin said, "has long been concerned with the practice whereby a general contractor, after receiving a prime contract, will influence a subcontractor to lower his previously quoted price."
The new regulation, to be published in the Federal Register under GSA's Public Buildings Service section, will be included in the invitation to bid form which is sent to prospective bidders.
Under the new system, prime bids will be received at a predetermined time and place, and held sealed and unopened for a period of 48 hours. Within this time period, bidders must submit a second envelope containing the names and addresses of the subcontractor so requested in the bid form. Bidders also have the option of listing their subcontractors when submitting their prime bid. According to a GSA spokesman, the 312% cutoff should require the listing of no more than nine or 10 subcontractors.
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MASONRY November, 1964
19