By Mr. Walsh of Boston, petition (accompanied by bill, House, No. 3685) of Martin J. Walsh for legislation pertaining to fair and responsible contracting practices at the Massachusetts Bay Transportation Authority.  Transportation

 

The Commonwealth of Massachusetts

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PETITION OF:

 


Martin J. Walsh

 

 


 

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In the Year Two Thousand and Seven.

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 An Act pertaining to fair and responsible contracting practices at the Massachusetts Bay Transportation Authority .

 

    Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:


 

   SECTION 1. General Laws, c. 149, s. 44(A)(1), as last amended by St. 1998, c. 194, s. 182 shall be amended as follows:—
The definition of “Public Agency” shall be amended by placing a period after the word “thereof” in the third line and deleting the words “but not including the Massachusetts Bay Transportation Authority”.

   SECTION 2. General Laws, c. 161A, as last amended by St. 199, c. 127, s. 151, shall be amended as follows:—
Add new section 48. “A. Notwithstanding any other provisions of Ch. 161A, all bidders and all subcontractors under the bidders for work performed for the Authority shall be subject to Mass. Gen. Laws Ch. 149, §44A and Mass. Gen. Laws Ch. 30, §39M and all said bidders and all subcontractors referenced above shall, as a condition for being awarded a bid, agree in writing that they affirmatively comply with all of the following obligations, and shall, in fact, comply with the following obligations:
   1. The bidder and all subcontractors under the bidder must comply with the obligations established under
MGL Ch. 149, to pay the appropriate lawful prevailing wage rates to their employees.
   2. The bidder and all subcontractors under the bidder must maintain or participate in a bona fide apprentice training program as defined by Chapter 23, s. 11H and 11I for each apprenticeable trade or occupation represented in their workforce that is approved by the Division of Apprentice Training of the Department of Labor and Workforce Development and must abide by the apprentice to journeymen ratio for each trade prescribed therein in the performance of the contract.
   3. The bidder and all subcontractors under the bidder must furnish, at their expense, hospitalization and medical benefits for all their employees employed on the project and/or coverage at least comparable in value to the hospitalization and medical benefits provided by the health and welfare plans in the applicable recognized by
MGL Ch. 149, s. 26 in establishing minimum wage rates.
   4. The bidder and all subcontractors under the bidder must maintain appropriate industrial accident insurance coverage for all the employees employed on the project in accordance with
MGL Ch. 152.
   5. The bidder and all subcontractors under the bidder must properly classify all individuals as employees rather than independent contractors and treat them accordingly for purposes of workers’ compensation insurance coverage, unemployment taxes, social security taxes and income tax withholding.
   B. The bidder and all subcontractors under the bidder who are awarded or who otherwise obtain contracts on projects subject to
MGL Ch. 149, s. 44A(2) shall comply with the obligations numbered 1 through 5 as set forth in paragraph A above for the entire duration of their work on the project, and an officer of each such bidder or subcontractor under the bidder shall certify under oath and in writing on a weekly basis that they are in compliance with such obligations.

   C. Any bidder or subcontractor under the bidder who fails to comply with any one of obligations 1 through 5 as set forth in Paragraph A above for any period of time shall be subject to one or more of the following sanctions: (1) cessation of work on the project until compliance is obtained; (2) withholding of payment due under any contract or subcontract until compliance is obtained; (3) permanent removal from any further work on the project; (4) liquidated damages payable to the Commonwealth of Massachusetts, the City or Town or the Authority for whom the bid or subcontract is being performed, in the amount of 5% of the dollar value of the contract.
   D. In addition to the sanctions outlined in Paragraph C above, a general bidder or contractor shall be equally liable for the violations of its subcontractor with the exception of violation arising from work pursuant to subcontracts that are subject to
MGL Ch. 149, s. 44F. Any contractor or subcontractor who has been determined to have violated any of the obligations set forth in Paragraphs A and B above shall be barred from performing any work on any future projects for six months for a first violation, for three years for a second violation, and permanently for a third violation.
   E. All bidders shall comply with the provisions of Executive Order 390 of 1996. In meeting the requirements of this paragraph the Authority, Board or Agency shall consult with the executive director of minority business enterprise in the executive office for administration and finance.
   (1) The Authority, Board or Agency shall prepare quarterly reports which shall include, but not be limited to: (i) the total dollars expended on the project to date, (ii) the number of contracts entered into to date; (iii) the number of contracts entered into with minority businesses; (iv) the number of contracts entered into with women-owned businesses; (v) the dollar value of contracts entered into with minority businesses; (vi) the dollar value of contracts entered into with women-owned businesses; (vii) the total number of employees working on the project; (viii) the total number of employees working on the project, broken down by race, ethnicity and gender; and (ix) the total number of Massachusetts residents working on the project. Said quarterly reports shall be submitted to the secretary of the executive office for administration and finance, the house ways and means committee, the senate ways and means committee, the clerk of the house, the clerk of the senate, and the house committee on long-term debt and capital expenditures.
   F. The provisions of this section shall not apply to construction projects for which the low general bid was less than $10,000 or to work performed pursuant to subcontracts that are subject to
MGL Ch. 149, s. 44F and that were bid for less than $5,000.
   G. If any provision of this law, or the application of such provision to any person or circumstances, shall be enjoined or held to be invalid, the remaining provisions of this law, or the application of such provisions to persons or circumstances, other than that which is enjoined or held invalid shall not be affected thereby.
   H. Notwithstanding any provisions to the contrary in Massachusetts General Laws, and in addition to all of the foregoing requirements, any contractor seeking to perform construction or maintenance services of any kind under a contract awarded by the Authority shall be required to affirmatively prove that it qualifies as a “responsible” contractor and possess the necessary technical qualifications, financial resources, business integrity and past performance record to successfully perform the contract work.
   I. To ensure the effective administration of this responsible contractor policy, the following rules shall apply:
   1. Contractor Submissions: Each contractor shall submit, with each contract bid or proposal, the documents listed below and designated “Required Documentation” and a completed copy of the “Questionnaire” set forth below. No contract shall be awarded until at least twenty-one (21) days following the deadline for bids or proposals.
   2. Subcontractor Submissions: Where a contractor intends to subcontract any of the contract work, it shall provide the documents listed below and designated “Required Documentation” and the “Questionnaire” set forth below for its subcontractors. Subcontractor information shall be submitted by the contractor at least twenty-one days prior to the commencement of any work by the subcontractor.
   3. Non-Responsibility Finding: Information provided in the submissions may constitute grounds for the issuance of a written non-responsible contractor determination where it shows the contractor/subcontractor lacks the requisite qualifications, past performance record or business integrity to perform the contract work.
   4. False/Inaccurate Submissions: The submission of any false or misleading information shall result in immediate disqualification. Likewise, the failure to submit complete or accurate information shall result in immediate disqualification.
  5. Full Public Disclosure: With the exception of financial statements, contractor/subcontractor submissions (documents and questionnaires) shall be made available for immediate public inspection by either the placement of same in a public documents room, or by disclosures made within ten (10) days upon the submission of a written request.
   6. Updating Submissions: Contractor/subcontractor submissions shall be deemed valid for a period of three months from their date of filing and need not be updated for new projects bid by the contractor/subcontractor, provided there are no material or relevant changes to the information provided therein.
   J. REQUIRED DOCUMENTATION.
  1. Financial Statements: Audited/certified annual financial statements for the past five years, including balance sheets and income/ expense statements.
   2. Bonding: Proof of adequate payment and performance bonding and bonding capacity for the type(s) and amount(s) determined by applicable law.
   3. Licensing: Proof of all contractor/subcontractor licenses as required by applicable law; proof of a licenses and/or certifications for all craft personnel required by applicable law or industry code.
   4. Management Personnel: Resumes of all management personnel responsible for the contract work, including project managers, superintendents and forepersons.
   5. Staffing Capabilities: Proof of adequate staffing capabilities to perform the contract work, including a list of names and classifications of all craft employees currently employed and other available sources of craft personnel.
   6. Apprenticeship Training: Proof of participation in bona fide registered apprenticeship programs for all craft employees employed by the contractor/subcontractor used to perform the contract work.
   7. Health Insurance: Proof of participation in a bona fide health insurance plan which covers all craft employees employed by the contractor/subcontractor.
   8. Pension Plan: Proof of participation in a bona fide pension plan, which covers all craft employees employed by the contractor/subcontractor.
   9. Insurance Coverage: Proof of adequate comprehensive bodily injury, property damage and workers compensation insurance.
   10. Experience Modification Rating: Experience Modification Ratings provided by the contractor/subcontractor in the past five (5) years with names, addresses and telephone numbers for two owner representatives for each project.
   11. Project Listing: A complete list of all current and past projects performed by the contractor/subcontractor in the past five (5) years with names, addresses and telephone numbers for two owner representatives for each project.
   12. Performance Evaluations: All performance evaluation reports prepared on work performed by the contractor/subcontractor at any time during the five (5) year period immediately preceding the date of the contract solicitation.
   K. REQUIRED CONTRACTOR/SUBCONTRACTOR QUESTIONNAIRE.
   A. Instructions.
   1. Applicable Time Period: Answers to the following questions should include any incidents or actions occurring within five (5) years preceding the date of submission, unless otherwise specified.
   2. Affirmative Answers: If the contractor/subcontractor provides an affirmative answer to any of the questions in this questionnaire, it should submit a detailed statement for any such answer explaining the incident or action at issue.
   3. Related Firms/Persons: For purposes of these questions, the term “contractor/subcontractor” shall mean:
   (a) the contractor or subcontractor submitting the bid/proposal;
   (b) any firms related to the contractor/subcontractor through common ownership, common management or common officers or directors; and
   (c) any firms in which any of the owners, officers or directors of the submitting contractor/subcontractor previously participated in as an owner, officer or director.
   B. Questions.
   1. Debarment/Suspension: Has the contractor/subcontractor been debarred or suspended by any jurisdiction or contracting authority (federal, state or local)? Yes ___ No ___
   2. Non-Responsibility Findings: Has the contractor/subcontractor been determined to be non-responsible or otherwise ineligible to submit bids/proposals on any project? Yes ___ No ___
   3. Contract Defaults: Has the contractor/subcontractor been declared in default in any manner for any project? Yes ___ No ___
   4. Contract Terminations: Has the contractor/subcontractor been terminated or otherwise removed from any project? Yes ___ No ___
   5. Liquidated Damages: Has the contractor/subcontractor been subject to any liquidated damage claims in connection with any project? Yes ___ No ___
   6. Legal Claims: Has the contractor/subcontractor had any liens, lawsuits, arbitration claims, or other legal claims filed against it in connection with any project? Yes ___ No ___
   7. Bankruptcy Actions: Has the contractor/subcontractor declared bankruptcy or been in receivership? Yes ___ No ___
   8. Law Violations: Has the contractor/subcontractor been found in violation of any statute, regulation or other law by any local, state or federal administrative agency or court of law? Yes ___ No ___
   9. Charges/Investigations: Has the contractor/subcontractor been accused of, investigated for or charged with alleged violations of any statute, regulation or other law? Yes ___ No ___
   10. Revocation: Has the contractor/subcontractor had any license, permit or certification revoked? Yes ___ No ___
   11. Bonding Denials: Has the contractor/subcontractor been denied bonding or increases in bonding capacity? Yes ___ No ___
   12. Conflicts of Interest: Does any individual serving in a managerial or advisory capacity of the contractor/subcontractor have any relationship with any individual employed by the entity soliciting bids/proposals for the contract work? Yes ___ No ___
   13. Sanctions: Has the contractor/subcontractor had any sanctions imposed on it with respect to its permits or licenses? Yes ___ No ___
   14. Bonding: Has the contractor/subcontractor had any instances where it has been unable to obtain bonding? Yes ___ No ___
   15. Government Judgment: Has the contractor/subcontractor been subject to any government judgment or lien? Yes ___ No ___
   16. Taxes: Has the contractor/subcontractor failed at any time to pay any federal, state or city taxes? Yes ___ No ___
   17. Charges: Does the contractor/subcontractor have any pending administrative, misdemeanor or felony charges against it? Yes ___ No ___
   If the answer to any of the above questions is yes the contractor/ subcontractor must provide any and all documentation documenting the contractor/subcontractor’s affirmative answer.
   I declare under the penalty of perjury that the foregoing information is true and correct to the best of my knowledge, information and belief and that the failure to provide complete, truthful and accurate information shall provide grounds for immediate disqualification of any bid or proposal submitted.

By:_______________________________
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Print Name & Position of Person Signing
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__________________________________
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Print Full Name & Address of Company

Executed this _____ day of ____________

Notary Information
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   L. Contractors and their subcontractors and their representatives have a responsibility to deal ethically with the Authority and therefore all information provided by vendors to the Authority must be complete and accurate. Accordingly, failure of a contractor or subcontractor to provide relevant information required by this statute or specifically requested by agents of the Authority may be grounds for a determination of nonresponsibility. Failure to meet any of the foregoing criteria shall be grounds for disqualification of a prospective contractor or subcontractor. The Authority shall make all information submitted pursuant to the provisions of this statute available to the public by making it available in written form and on a computer database or website. The Authority shall not enter into a contract with a contractor or subcontractor that is a nonresponsible bidder under the provisions of this statute.
   M. Contracts shall be awarded by the Authority to responsible, prospective contractors only. A responsible contractor is one which is capable in all respects to perform fully the contract requirements and has the business integrity to justify the award of public tax dollars. The factors that shall be considered in determining a contractor’s responsibility shall be:
   (a) a satisfactory record of business integrity;
   (b) compliance with all applicable legal requirements for utilization of small, minority-owned and women-owned businesses as subcontractors;
   (c) a satisfactory record of performance;
   (d) financial resources;
   (e) technical qualifications;
   (f) experience;
   (g) organization, material, equipment, facilities and personnel resources and expertise necessary to carry out the work and to comply with required delivery or performance schedules;
   (h) accounting and auditing procedures adequate to control property, funds or other assets.