TPS bypasses local firms

Toledo Mirror and Glass owner James Nicholson was outbid recently by a Michigan company to install new windows and doors at Harvard Elementary, and he says losing that contract is a symptom of a larger problem for all local contractors.

"You have Toledo Public Schools trying to put out a levy that has an impact on the people of Toledo, and I employ the people of Toledo," Mr. Nicholson said. He bid $519,750 to do the job, just $2,750 more than DZI of Clarkston, Mich., requested for the work.

The job hasn't been awarded yet, but the school district always awards contracts to the lowest bidder, as long as the bid is responsive. That has local contractors calling for the school system to review the policy and handicap out-of-town businesses.

"I know there are local bidding preferences within the city of Toledo just for that reason," Mr. Nicholson said.

John Gilliland, TPS chief business manager, said the district is always looking for the lowest price.

"It's the way we do it in order to get the best value for the taxpayers," Mr. Gilliland said. "That's the purpose of the competitive bidding process, to make sure everyone has a fair ability."

Some school board members said they would prefer to go with local companies.

"I would prefer to go local because that's keeping taxpayer dollars here and keeping our people at work," member Lisa Sobecki said. "I would like to go local because Toledo is hurting, but we have to be within the realm of the law."

Lucas County Commissioner Pete Gerken said the county's hands also are tied.

"The state does not allow us to do that, but I wish we could," Mr. Gerken said, noting that leaders have requested legislators pass a bill allowing for local preference.

The debate was raised during construction of the Huntington Center downtown, he said.

"We worked through a lot because we had good local bids … and I would say we had about 90 percent local," Mr. Gerken said. "We collect tax money from local citizens when they shop and transfer real estate and I would like to take their money and invest it back into our economy."

The city of Toledo, under its home-rule authority, can and does offer a home-field advantage.

Robin Whitney, the city's commissioner of engineering services, said in-town contractors can be awarded a job over an out-of-town business if the quote is within 3 percent of the lower bidder.

"This city is trying to do what it can to award to local companies, but the maximum we can do on this would be $35,000," Ms. Whitney said.

Smith Paving & Excavating Inc., of Norwalk, Ohio, won a bid over Toledo-based Quinn Concrete for sidewalk construction, including replacing curbs, and removing 80 trees.

Quinn Concrete was close enough to win the local preferences on just the sidewalk job on its bid of $764,775 compared to Smith Paving's $755,927.

But when the tree removal work was combined in the bid, Smith Paving would cost the city $826,427, compared with the $871,675 Quinn Concrete sought for the job.

"The incentive still does not make the next bidder low enough," Ms. Whitney said.

Kevin X. Smith, executive vice president of Associated General Contractors of Northwest Ohio, said local companies are being outbid more often in recent months by Detroit-area firms.

"I hate to be parochial in a lot of ways because if we do it and other people do it, then it stops our contractors from getting other jobs elsewhere," Mr. Smith said.

"The state of Ohio allows local preference and the dilemma for the school board is they are going for a 7.8-mill levy, and in order to be able to afford more money for school taxes people here need to work," he said.

Mr. Smith said Michigan companies have been flooding the Toledo market with bids because of the sluggish Detroit construction environment.

"They are as lean and mean as they can be and they are getting beat by 10 percent sometimes," he said. "The Detroit market is so bad they are coming down here, and I have never seen it where so many out-of-town contractors have come down to Toledo and take our work for dirt-cheap."

Contact Ignazio Messina at:

imessina@theblade.com

or 419-724-6171.