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The city of Lansing is changing how it awards contracts.
City Council voted 7-to-1 Monday night to adopt a “responsible bidder” ordinance and a corresponding resolution laying out the criteria contractors will be graded on.
Non-monetary criteria account for a majority of the points, with just 40% of the score being based on costs.
Factors to be considered include the contractor’s participation in U.S. Department of Labor apprenticeship programs, evidence the contractor offers employer-sponsored healthcare benefits and structured retirement plans and evidence they properly classify employees as demonstrated by use of 1099 independent contractors compared to W-2 employees.
Labor unions praised the ordinance during Monday night’s meeting.
Aaron Pangborn is the business manager for IBEW Local 665.
“Amending this ordinance is about making smart investments with public money, not just picking the lowest bidder and hoping for the best,” Pangborn said. “It’s about promoting responsible contracting, strengthening our local economy and ensuring high quality work on city-funded projects.”
Some contractors have opposed requiring participation in federal apprenticeship programs to earn the highest score.
Some localities in Michigan already have responsible bidder ordinances in place, including Jackson, Royal Oak and Detroit.
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