County participation in bid program

A construction bid program that allows up to a 6 percent bid preference for veteran-owned small businesses would be expanded by the Department of Transportation under a bill heard by the House Veterans Services Division Jan. 30.

Sponsored by Rep. Bob Dettmer (R-Forest Lake), HF1821 would allow counties to create a similar program. The bill was tabled to provide for additional discussion before a division vote.

“The purpose of this is to … facilitate the transition of veterans from military to civilian life” and to “keep that pool of talent here in Minnesota,” Dettmer said.

The program began in 2009, and currently veteran-owned businesses receive 5 percent of all state-funded construction projects, according to Mary Prescott, MnDOT director of civil rights. The department hopes to grow that percentage.

“We’d like to do some outreach. Of that 5 percent, there’s only like three vet-owned businesses that are getting the majority of those contracts,” Prescott said.

While most of the work awarded has been in the area of manual labor, the bill would expand bid preferences for construction-related “goods and services.” That may mean veteran-owned architectural and design firms could be included in the program. The department is looking to clarify the intent before the division votes on the measure.

Tim Worke, director of the Association of General Contractors Transportation and Highway/Heavy Division, said the construction trade was hit hardest by the recession and that MnDOT bids are “very competitive.” AGC wants a seat at the table, and Worke expressed concern that proposed financial incentives and penalties for prime contractors could be problematic.

Sen. Al DeKruif (R-Madison Lake) sponsors the companion, SF1597, which awaits action by the Senate State Government Innovation and Veterans Committee.