Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON -- SELECT -- GOVERNMENT ACCOUNTABILITY

Date:03/08/2006
ATTENDANCE
Time:12:13 PM to 01:30 PM
Hanna
X
Owen
*
Place:SCR 352
Teck
X
Grossman
X
This Meeting was called to order by
Groff
X
Senator Groff
This Report was prepared by
Christie Lee
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Presentation by the Colorado Department of Trans-

12:14 PM

Tom Norton, Executive Director of the Colorado Department of Transportation (CDOT), introduced himself and distributed a handout of a PowerPoint presentation entitled, CDOT Presentation to Senate Select Committee on Government Accountability(Attachment A). He told the committee that he would be discussing the procurement methods and processes within CDOT. Mr. Norton stated that CDOT's mission is to provide the best multi-modal transportation system for Colorado that most effectively moves people, goods, and information.

12:17 PM

Mr. Norton began the PowerPoint presentation and talked about the divisions within CDOT that are responsible for transportation modes and planning. He talked about CDOT's cap on full time employees as compared to CDOT's budget. Mr. Norton briefly discussed the organization of the department. Senator Owen asked Mr. Norton if he had any suggestions on how to expedite the procurement process. Senator Owen suggested a centralized process rather than the current process that entails many layers of review. Mr. Norton stated that the process used to be more centralized and took 6 months for a contract to go through the process. He stated that ideally the department would like to have contracts pass through the system in less than 60 days. There was committee discussion about prequalifications of contracts.

12:30 PM

Senator Hanna asked Mr. Norton to discuss how much leeway CDOT provides in its contracts for mishaps such as spoiled products or projects that are not completed on time. Mr. Norton responded. He then explained the construction bidding process. He stated that occasionally there are underbids where the remaining money will be used on other projects. Senator Hanna brought up a concern about CDOT dumping concrete mixers where the cement was too hot and could no longer be used. She stated that a constituent of hers had brought the concern to her attention. Mr. Norton stated that if the cement is below standard and cannot be used, then that is a cost to the contractor and not the state.

12:38 PM

Senator Teck talked about a constituent problem concerning a seasonal contractor who entered into a contract for a set price, but between seasons the prices had increased. The constituent stated that he or she had asked if they could cancel the contract, and they were told that he or she could not. Mr. Norton explained that a change would have been difficult because there is not much flexibility at that point in the contract. He stated that the other bidders involved in the contract would have been harmed.


12:47 PM

Mr. Norton continued his presentation. He talked about the organization of the department and the sections that handle contracts. There was discussion about the regional areas under the Chief Engineer's Organization and whether they communicate with one another.

12:49 PM

Mr. Norton continued his presentation. He explained that as of March 1, 2006, CDOT holds 108 active contracts valued at $468,087,108. There was committee discussion about the money CDOT could receive from Senate Bill 06-1, and House Bill 06-1310 and where CDOT would spend the money. Mr. Norton responded and gave a breakdown of the budget for Fiscal Year 2006 including the moneys from Senate Bill 1 and House Bill 1310. There was committee discussion on the use of recycled products. Mr. Norton explained that economics is the main factor in deciding whether recycled products are used. Mr. Norton discussed the qualifications that must be met by the department before it can receive federal funds.

01:06 PM

Senator Groff asked how the department handles a contractor who does not meet the specifications in the contract. Mr. Norton stated that if the project is acceptable but does not meet the quality then they will reduce the payment to the contractor by a certain percentage. If the project is not acceptable then CDOT will ask the contractor to redo the project, and if they do not then CDOT will have the bonding company redo it.

01:11 PM

Mr. Norton continued walking through the presentation and explained professional services/consultant contracts. Senator Groff asked Mr. Norton to explain when professional services are needed and how CDOT determines the value of the service. Mr. Norton stated they are market driven. There was discussion about whether CDOT gives any preference to local companies in Colorado. Mr. Norton stated that CDOT does not give preference to local companies because it would violate the interstate commerce clause under federal law.

01:21 PM

Mr. Norton moved on to discussing the administration of professional services/consultant contracts. There was committee discussion about offshoring and outsourcing. Mr. Norton talked about the purchase of goods and services and quality assurance for those goods and services.

01:30 PM

Senator Groff explained to Mr. Norton that the committee would have to adjourn and that any unanswered questions would be submitted to him in writing via the committee staff. The committee adjourned.