Title
Ordinance Amending Title 1, Chapters 16, Section 1-16-7 of the Orland Park Municipal Code, Incorporating Changes Pertaining to Responsible Bidder Ordinance (RBO)
History
At its most basic definition, a Responsible Bidder Ordinance (RBO) is a local policy that establishes objective criteria and verifiable standards for contractors bidding on public infrastructure projects. Put another way, the goal of an RBO is typically to make public construction projects safer and ensure fair payment and proper training of the awarded contractors’ employees. Orland Park has had a de facto Responsible Bidder Ordinance by requiring certain qualifications and certifications for all contractual partners. However, until this point, these policies have not been codified. The Responsible Bidder Ordinance proposed will codify the following Criteria for vendors on all public works projects in excess of $25,000 in value.
CRITERIA FOR RESPONSIBILITY
To be considered a responsible bidder, the bidder must submit evidence showing that they:
-Hold all required state and local licenses.
-Have current registration with the Illinois Department of Human Rights (IDHR).
-Comply with all applicable laws including but not limited to:
-The Prevailing Wage Act (820 ILCS 130/)
-The Illinois Procurement Code
-The Illinois Freedom of Information Act (FOIA)
-Provide a valid certificate of insurance covering workers’ compensation, general liability, and automobile liability.
-Participate in a U.S. Department of Labor-registered apprenticeship and training program applicable to each trade performing work on the project.
-Have not been debarred or suspended from public contracting by any governmental agency.
-Have a record of compliance with the Fair Labor Standards Act, OSHA, and Illinois safety laws.
-Maintain a permanent office and workforce capable of performing the work described.
-Submit a Certificate of Compliance, affirming understanding and compliance with the Village’s procurement standards.
The purpose of the codified Ordinance is to ensure that contractors and subcontractors performing work on public projects for the Village of Orland Park meet the highest standards of responsibility, including integrity, financial stability, properly licensed and insured, safety, training, and legal compliance.
Proponents and opponents of RBOs note numerous benefits and drawbacks to these ordinances. On the one hand, proponents find RBOs the best way to find bidders that can ensure a higher quality level of work, thanks in part to formal apprenticeship requirements that can be completed while being efficient, cost-effective, and safe. Some also cite RBOs as ensuring municipalities hire the most qualified bidders and consider more than price when evaluating bid responses. The attached report from the union-affiliated Illinois Economic Policy Institute, which examined projects in Illinois and Indiana, concluded that RBOs do not mean a more expensive project, saying “responsible bidder ordinances are effective policies that uphold local construction standards without raising costs for taxpayers.”
On the other hand, opponents often cite the more stringent requirements in an RBO as limiting the pool of potential bidders, especially smaller firms with fewer resources to participate not only in apprenticeship programs but also in meeting the graduation guidelines, thus limiting work to union bidders. Additional considerations include the ability of local bidders not to meet requirements, thereby losing out on opportunities to support local economic efforts, as well as the potential for legal challenges by bidders over the definition of what constitutes a responsible bidder.
Many municipalities have put in place RBOs. At least 60 taxing bodies in Illinois have RBO’s (https://iiiffc.org/illinois/illinoisordinances/). These include:
-Naperville – Adopted 2023
-Lisle – Adopted 2022
-DuPage County – Adopted 2019
-DuPage County Forest Preserve – Adopted 2021
-Bolingbrook – Adopted 2010
-Lake County – Adopted 2019
-Will County – Adopted 2008
-Lockport – Adopted 2005
-Forest Park – Adopted 2019
-Tinley Park – Adopted 2019
-Oak Lawn – Adopted 2007
-Elgin – Adopted in 2011
-Kane County – Adopted in 2023
Analysis: Current Procurement Code
Does Orland Park’s Procurement Code include RBO provisions already?
-Compliance with state and local employment laws? Yes
-Proof of insurance? Yes
-Compliance with the Prevailing Wage Act? Yes
-Disclosure of subcontractors? Yes
-References? Yes
-Participation in US Dept. of Labor apprenticeship training programs for primary and subcontractors? No
-Evidence of graduation from a US Dept. of Labor apprenticeship training program of at least 5 apprentices in each of the applicable construction crafts over the past 5 years the bidder will perform on a given project? No
Recommended Action/Motion
I move to recommend to the Village Board to adopt an Ordinance entitled: ORDINANCE AMENDING TITLE 1 (ADMINISTRATION) CHAPTER 16 (PROCUREMENT) SECTION 1-16-7 (CONSTRUCTION BIDDING AND CONTRACTS) ESTABLISHING CRITERIA FOR THE DETERMINATION OF A RESPONSIBLE BIDDER FOR VILLAGE CONSTRUCTION PROJECTS.