What's Hot

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 2025

    Yuma P&Z Recommends Multifamily General Plan Amendment

    July 23, 2025

    Ariz. Construction Gained 600 Jobs in June

    July 22, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [July 23, 2025] - Mohave County May Remove Data Centers as Economic Development Goal
    • [July 23, 2025] - Yuma P&Z Recommends Multifamily General Plan Amendment
    • [July 22, 2025] - Ariz. Construction Gained 600 Jobs in June
    • [July 22, 2025] - Yavapai Board Enables Bid Process for Cornville Road Roundabout
    • [July 22, 2025] - Scottsdale Report Shows Multifamily Pipeline Half of Common Estimate
    • [July 22, 2025] - Industry Professionals 07-22-25
    • [July 22, 2025] - Commercial Real Estate 07-22-25
    • [July 21, 2025] - Alleging Breaches, ZenniHome Closes NGS Operations
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Yuma P&Z Recommends Multifamily General Plan Amendment

      July 23, 2025

      Yavapai Board Enables Bid Process for Cornville Road Roundabout

      July 22, 2025

      Design Discussed for 45KSF Mesa Warehouse Plan

      July 18, 2025

      Potato Barn to Round Out Mesa Site with 48KSF Warehouse

      July 18, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      Scottsdale Report Shows Multifamily Pipeline Half of Common Estimate

      July 22, 2025

      Alleging Breaches, ZenniHome Closes NGS Operations

      July 21, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      KOREPlex Buckeye Site Quietly Listed For Sale

      January 31, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

      June 24, 2025

      Commercial Real Estate 07-22-25

      July 22, 2025

      Commercial Real Estate 07-15-25

      July 15, 2025

      Commercial Real Estate 07-08-25

      July 8, 2025

      Commercial Real Estate 07-01-25

      July 1, 2025

      Industry Professionals 07-22-25

      July 22, 2025

      Industry Professionals 07-15-25

      July 15, 2025

      Industry Professionals 07-08-25

      July 8, 2025

      Industry Professionals 07-01-25

      July 1, 2025

      Arizona Projects 07-18-25

      July 18, 2025

      Arizona Projects 07-11-25

      July 11, 2025

      Arizona Projects 06-27-25

      June 27, 2025

      Arizona Projects 06-20-25

      June 20, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Alleging Breaches, ZenniHome Closes NGS Operations

      July 21, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      Tax Bill Would Make LIHTC Permanent

      July 2, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      BEX Updates Construction Sector Projections in Annual Midyear Update

      July 18, 2025

      Phoenix Industrial Sees First Vacancy Drop in Years; YoY Completions Drop 75%

      July 18, 2025

      Phoenix Construction Costs See 4.42% Q2 Annual Change

      July 15, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Yuma P&Z Recommends Multifamily General Plan Amendment

      July 23, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      Yavapai Board Enables Bid Process for Cornville Road Roundabout

      July 22, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Mid-Year Update
      • 2025 Industrial LMS
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    AZBEX
    Home » Arizona Projects » LMS Talks New K12 Procurement Change
    Arizona Projects

    LMS Talks New K12 Procurement Change

    BEX StaffBy BEX StaffJuly 19, 2018No Comments6 Mins Read
    Credit: Rachel Kettenhofen/AZBEX
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Tasha Anderson for Arizona Builder’s Exchange

    More than 100 people gathered at the DoubleTree by Hilton in Tempe on Thursday, July 12 for what was by far the most popular AZBEX Leading Market Series topic: the public K12 market.

    While most LMS events so far have covered projects that are upcoming/in the works and how to get work within the market, this particular topic was more focused on the unexpected K12 procurement rule change expected to go into effect by July 1, 2019.

    The rule was added to an amendment of the recent education reconciliation bill and stated that as of July 1, 2019, Alternate Project Delivery Methods for education procurement are to be scrapped, and all State Board of Education procurements for materials, services and construction will be required to be awarded to the lowest qualified bidder. (AZBEX, May 08) (Note: An earlier version of this article stated the change was added to RedforEd legislation.)

    The announcement of the change came after Scottsdale Unified School District came under fire for illegal actions with lax oversight, and AZBEX President Rebekah Morris invited panelists to discuss their opinions on the subject and the impact the change will have on districts.

    The K12 Market and Current Procurement Issues

    Morris began the presentation by giving attendees a brief overview of the market with analytics taken from the AZBEX Database. The total size of the market was pegged at $400M-$600M on an annual basis, with no one school district commanding more than nine percent of the total market share.

    “What that should tell everybody is… lots of points of entry,” Morris said. “If you wanted to be active in this space, there’s a lot of ways to get in.”

    While this data suggests that a company would have an easy time entering the market, the reality is quite different.

    The results of Morris’ research showed that 94 percent of all GC contracts are CMAR and some of the issues with an Alternative Project Delivery Method can make it difficult to enter the market. Some of the issues highlighted in her presentation were:

    • RFQ language requires LOCAL relevant experience in the last three years.
    • Procurement timelines do not meet the statute.
    • No public opening of SOQs.
    • Using a 1-step instead of a 2-step process.

    These and other issues raised an important question discussed further by the panelists: “Would a requirement to low bid fix these issues?”

    The Trouble with Low Bid

    The answer to that question was a resounding “No” from both panels. The first panel, comprised of Howard Kropp, director of purchasing for Washington Elementary School District and Ward Simpson, principal for Rider Levett Bucknall, and moderated by Patrick O’Grady, managing editor of the Phoenix Business Journal, discussed the implications of the low bid change to the schools.

    “Unfortunately, all of my experiences with low bid were not necessarily successes,” explained Kropp. “While the projects still got done, it was company XYZ that would low-ball the bid, but then would change order and by the time the project was done there was no way of knowing whether or not they were indeed still the low bidder.”

    Both Kropp and Simpson agreed that the Alternative Project Delivery Method was the better way to go due to the pre-construction services a CMAR is able to provide versus a low bid contractor.

    “By that low bid rule, you have to award it to that low bidder. You have no idea whether or not they have looked at the entire scope. Whereas with the CMAR you do your job walks, you have your pre-submittal meetings and they know the scope.” Kropp explained.

    The second panel, comprised of Bonnie Gonzalez, director of business development for The H2 Group, and Michael Baer, national division manager for Sunland Asphalt and moderated by Rebekah Morris, echoed similar concerns about the change to low bid.

    “If you do low bid, you don’t know the quality of the person. You don’t know the firm, necessarily,” said Gonzalez. “You don’t know whether or not they’ve got the labor force behind them. These are all the questions… we don’t know.”

    “It’s About People Behaving Badly.” So How do we Fix It?

    Both panels were also in agreement that they believed the change was an overreaction to the Scottsdale Unified School District situation, and attendees demonstrated their agreement with the panel by applauding as Kropp mentioned he felt the announcement of the change was a punishment and not necessarily in the best interest of the state.

    “It has nothing to do with alternative delivery method or low bid. It has to do with people behaving badly,” said Gonzalez.

    During Morris’ presentation early on, she identified a key reason why the rules aren’t always followed, and that’s because some people aren’t fully educated on them.

    “There are not a lot of education opportunities for district employees,” said Morris. “One of the things I asked in doing my research… I would go and I say, ‘Who teaches you to abide by procurement rules?’ They didn’t have a good answer… I said, ‘how do you set up a Job Order Contract?’ I asked six different people and got five different answers.”

    All speakers agreed that to fix the issue, districts need to hire a strong procurement team and to give them the proper education on the procurement rules in order to alleviate any wrong doing.

    “This knee-jerk reaction to go just to low bid is going to be very painful to the schools,” said Baer.

    Update from the State Board of Education

    Catcher Baden, deputy director of the Arizona State Board of Education, also gave an update on new procurement rules that will be coming sooner than July 1, 2019. Some of these rules include:

    • Requirements for licensure and documentation for licensure
    • Rules on conflict of interest
    • Gift and reprisal prohibitions

    According to Baden, these rules are expected to come out in early August.

    The next Leading Market Series topic will be on the hospitality market. To check out dates and topics or to register for the next event, visit: http://lms.azbex.com/

    Arizona State Board of Education AZBEX Education K12 Leading Market Series Phoenix Business Journal RedforEd Rider Levett Bucknall Scottsdale Unified School District Sunland Asphalt SUSD The H2 Group Washington Elementary School District
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 2025

    Ariz. Construction Gained 600 Jobs in June

    July 22, 2025

    Scottsdale Report Shows Multifamily Pipeline Half of Common Estimate

    July 22, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 2025

    Yuma P&Z Recommends Multifamily General Plan Amendment

    July 23, 2025

    Ariz. Construction Gained 600 Jobs in June

    July 22, 2025

    Yavapai Board Enables Bid Process for Cornville Road Roundabout

    July 22, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Economic Development

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 20250

    By Roland Murphy for AZBEX By the time you read this column, Mohave County may…

    Yuma P&Z Recommends Multifamily General Plan Amendment

    July 23, 2025

    Ariz. Construction Gained 600 Jobs in June

    July 22, 2025

    Yavapai Board Enables Bid Process for Cornville Road Roundabout

    July 22, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 2025

    Yuma P&Z Recommends Multifamily General Plan Amendment

    July 23, 2025

    Ariz. Construction Gained 600 Jobs in June

    July 22, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.