Palomar Airport: Why the Waste?, Blog 90

Last week we saw that the public should worry about county contracting procedures.  To recap, county was about to enter into a $675,000 contract with Kimley-Horn to prepare the McClellan-Palomar (Palomar) Master Plan (PMP).  Then the FAA advised that airport master plans typically cost must less.

Arguably, the county use of “as needed” contracts contributed to the high PMP cost the county was prepared to pay before the FAA intervention.

What are “As Needed” Contracts?

County builds projects with services gotten by two contract types.  To plan for and design projects, county enters into professional service agreements.   County then bids the work to contractors.  Contractors bid on detailed, often quite long, specifications.  Usually county awards a contract to the low bidder.

County “professional service contracts” and “building contracts” selection procedures differ notably.   The law requires building contracts to be awarded to the low responsible bidder.  Price determines the award.   In contrast, price is only one factor used to select the pros.  County also considers professional qualifications, experience, reputation, and other intangibles.  So the county could select a higher priced consultant for varied reasons.

Usually, county awards contracts for a specific project.  For instance, design or build a music center.    County staff writes a full project work scope; identifies interested professionals or contractors; circulates the work scope; receives responses, and awards a contract.  The process can take 2 to 4 months.  Before contract award, county can compare all the project prices.

County does not like this process.  Too much work. County staff must repeat the process for every project.  Solution, at least for professional service contracts?  Enter into “as needed” contracts rather than “site-specific” contracts.

What did county Airports do in 2009?  County entered into a 5-year contract with Kimley-Horn & Associates, Inc. for architectural and engineering services.  The county reserved the right to have Kimley provide services at any of the 8 county airports during the 5-year term. 

The “as needed” contract has a schedule of hourly charges that can be annually adjusted.  But there is no project cost. None is possible.  The county is hiring the professional not to complete a specific project but to be available for a future project that may arise.

Twenty years ago, I was asked to advise whether “as needed” contracts are legal.

Next week’s blog discusses the issue.  What do you think?