More transparency is needed as part of the process for pre-qualifying contractors for major city projects in Denver, says a just-released audit.
In a statement released by the City of Denver, Timothy O’ Brien called for a “balance between transparency for contractors, accountability, and a workable process that encourages the best companies to work with the city.”
O’Brien, the City’s Auditor, remarked that when it comes to projects worth millions of dollars, the process for contractor pre-qualification has become both too subjective and opaque.
In order to bid for a city project with a dollar worth of more than $1 million, contractors in Denver are required to submit information regarding their staff and resource capability, safety scores, and both bonding and financial capabilities.
The city’s Prequalification Board then assess all of those factors, which also include whether or not the company has ever been prohibited in the past from contracting with the city, or been late on a contractual obligation with the city.
Based upon the decision of the Prequalification Board, contractors are assigned a financial level for projects they can bid to work on.
While O’Brien said a review of that process produced “no evidence of improper decision-making, such as a board member potentially manipulating the outcome of a recommendation, we can have no certainty that this has not occurred because the Prequalification Board does not transparently document how it arrives at its recommendations.”
O’Brien recommended that the city adopt a more complete and thorough documentation of the decision-making process, one that can be viewed by the public. By so doing, contractors will have a better understanding of how and why certain decisions are made.
Such understanding, said the city’s press release, will make it more likely that contractors can submit improved pre-qualification applications, “which can potentially increase competition and grow the city’s pool of qualified applicants.”
By Garry Boulard
