It’s a Simple Economic Principle
At the September 22nd school board meeting, the issue of the bidding process, and the legalities surrounding that, once again became a point of discussion. In January of this year the board reviewed bids from three companies on an asphalt project. With rare exceptions, state law mandates public school systems accept the lowest bid on any project.
There is a good reason for this. When companies are assured of a fair playing field in the bidding process they will be more likely to submit a bid on a project. The more bids that are submitted, the more likely prices will be lower because there’s more competition. If contractors believe the entity will pick and choose who they will award the bid to, perhaps choosing a local company over a company from outside the area, then contractors from outside the area won’t bother to submit a bid. Less bidders on a
project generally means bids will be higher. It’s a very simple economic principle.
Last January, board members Eric Lawson, Eric Hansen, AJ MacAurther and Monica Dziesinski awarded a $685,000 asphalt bid to a higher bidder, a local company. They did this despite warnings they were violating State Law and would have a secondary effect of discouraging bids from outside the area. This almost ensures future bids will be higher. The Gaylord contractor that was the lowest bidder said in a radio interview that he would “never” bid on a project for APS again. This action not only increased costs
for this project and very likely future projects, but it also put APS in legal jeopardy.
It’s important our school board members remember they are spending our money. The public has entrusted them to conduct school business in an ethical, legal and conservative manner.
MARIE FIELDER
Alpena