Shane Saum
Councilmember
Dear Council Members,
I am seeking your input on the proposed No Taxpayer Waste Procurement Process (attached) which I have asked the Mayor to put on the September 5th agenda as it is pertinent to the current budget and tax rate discussions as we look for ways to save taxpayer funds. The purpose of this ordinance is to ensure that the City of Lago Vista prioritizes fiscal responsibility in its procurement processes by encouraging cost-effective solutions that meet or exceed the city’s needs without unnecessary expenditure, in compliance with applicable state laws, local ordinances, and city policies. The No Taxpayer Waste Procurement Process would allow respondents to any RFP or bid process to propose alternative project scopes if, in their professional judgment, they believe a smaller or differently configured scope would better serve the City's actual needs while reducing overall costs.
Citizens have expressed concern over previous RFPs requirements, including the recent Golf Course Irrigation System RFP, that stated “the Proposer must agree to complete the project in accordance to the plans and specifications in the Attachments in this document.” If a proposer wants to win the project currently, they may not feel comfortable asking the City if they could supply a different scope of work in the proposal. Proposer’s may have the ability to make that request now, but it is not explicit in the procurement and it currently does not state they would receive any benefit for showing the City how they could be saving money on the project. This process could reward respondents for identifying smaller project scopes that would meet our needs and save the City money. Additionally, the City would take out smaller bonds and not accrue additional interest on larger bonds if the project required bond funding. Proposals for alternative scopes must still comply with local preference requirements as outlined in Section 1.503 of the City Code and ensure fair and open competition as mandated by Texas Local Government Code Chapters 252 and 271.
This program is similar to the concept of a Value Engineering Clause (VEC) some cities like Marble Falls and Boerne use, which allows and encourages contractors to propose modifications to the project's design, materials, or methods that reduce costs while maintaining or improving the project's quality, functionality, or performance. The primary objective of a VEC is to identify and implement cost-saving measures during the project's execution. Contractors are incentivized to propose value engineering changes by receiving a share of the cost savings realized from their suggestions. A Value Engineering Clause is typically applied during the design or construction phase of a project, allowing contractors to suggest changes that reduce costs without affecting quality. It's focused specifically on modifying project designs. The proposed No Taxpayer Waste Procurement Process is broader and might encompass the entire procurement process, including bid evaluation, selection criteria, and contract management. It could involve not just design changes but also other aspects like materials sourcing, project management, and more. VECs are generally applied after a project has already been scoped and a contractor is engaged. The proposed process might be implemented from the very beginning, influencing how bids are structured and evaluated, not just during execution.
I look forward to your input and engagement on this proposal.
I am seeking your input on the proposed No Taxpayer Waste Procurement Process (attached) which I have asked the Mayor to put on the September 5th agenda as it is pertinent to the current budget and tax rate discussions as we look for ways to save taxpayer funds. The purpose of this ordinance is to ensure that the City of Lago Vista prioritizes fiscal responsibility in its procurement processes by encouraging cost-effective solutions that meet or exceed the city’s needs without unnecessary expenditure, in compliance with applicable state laws, local ordinances, and city policies. The No Taxpayer Waste Procurement Process would allow respondents to any RFP or bid process to propose alternative project scopes if, in their professional judgment, they believe a smaller or differently configured scope would better serve the City's actual needs while reducing overall costs.
Citizens have expressed concern over previous RFPs requirements, including the recent Golf Course Irrigation System RFP, that stated “the Proposer must agree to complete the project in accordance to the plans and specifications in the Attachments in this document.” If a proposer wants to win the project currently, they may not feel comfortable asking the City if they could supply a different scope of work in the proposal. Proposer’s may have the ability to make that request now, but it is not explicit in the procurement and it currently does not state they would receive any benefit for showing the City how they could be saving money on the project. This process could reward respondents for identifying smaller project scopes that would meet our needs and save the City money. Additionally, the City would take out smaller bonds and not accrue additional interest on larger bonds if the project required bond funding. Proposals for alternative scopes must still comply with local preference requirements as outlined in Section 1.503 of the City Code and ensure fair and open competition as mandated by Texas Local Government Code Chapters 252 and 271.
This program is similar to the concept of a Value Engineering Clause (VEC) some cities like Marble Falls and Boerne use, which allows and encourages contractors to propose modifications to the project's design, materials, or methods that reduce costs while maintaining or improving the project's quality, functionality, or performance. The primary objective of a VEC is to identify and implement cost-saving measures during the project's execution. Contractors are incentivized to propose value engineering changes by receiving a share of the cost savings realized from their suggestions. A Value Engineering Clause is typically applied during the design or construction phase of a project, allowing contractors to suggest changes that reduce costs without affecting quality. It's focused specifically on modifying project designs. The proposed No Taxpayer Waste Procurement Process is broader and might encompass the entire procurement process, including bid evaluation, selection criteria, and contract management. It could involve not just design changes but also other aspects like materials sourcing, project management, and more. VECs are generally applied after a project has already been scoped and a contractor is engaged. The proposed process might be implemented from the very beginning, influencing how bids are structured and evaluated, not just during execution.
I look forward to your input and engagement on this proposal.
