South DaCola

Open Bids save money

At Tuesday’s Sioux Falls City Council meeting, councilor Kiley argued that they shouldn’t put the IT expansion project out for bid because the delay would end up costing taxpayers more money. Pulling a crystal ball from his rear aside, that is not always the case.

Back in 2008, the city faced a similar dilemma, a bid was handed over to a contractor to replace the windows on the Pavilion, the problem was that when the Pavilion’s Operations Director turned the bid into the city, he realized later that he forgot to include labor and would have to resubmit the bid.

The controversy caused by this error got the attention of the media, so a lot more contractors bid on the project the second time around.

The city saved over $300K by resubmitting the project, in fact they had to amend the 2009 CIP budget to reflect the cost savings;

Improvements, by deleting $300,000 in year 2009 for windows (CIP p. 2-145).

We have NO IDEA if we are getting a ‘deal’ on the IT expansion because we never put it out for bid. And I can guarantee if it is put out for bid ‘after the fact’ there would be someone who would come in under $1.5 Million.

Open bids save tax dollars, and for councilor Kiley to say otherwise is just ludicrous and ignorant.

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