Construction

Construction Program Guide

Local Labor Hiring Pilot Program Transmittal Email

Sent: Thursday, July 9, 2015

To All Division Administrators:

REQUESTED ACTION: Please share the attached model SEP-14 workplan with your State DOT and local agencies, particularly those who have expressed interest in the local labor hiring pilot program.

BACKGROUND: To assist the State DOTs and Local Public Agencies in drafting their workplans under the Local Labor Hiring Pilot Program, we have developed the attached sample workplan. The sample workplan has the following structure:

1. Title: Workplan to evaluate the use of {insert type of preference or other contracting requirement]
2. Project Information: Project Location, City or county, State, Federal project number, other project numbers as applicable
   1. Introduction. Provide a brief general statement that introduces the basis for the SEP-14 proposal.
   2. Purpose. Provide a description of the reason for developing the proposal.
   3. Scope. Provide a description of the project(s) covered by the proposal. If the proposal is for all projects meeting specific criteria, provide a description of the criteria to be used.
   4. Schedule. Provide key dates for the project(s). If specific projects are not known at the time of the proposal, provide anticipated dates and describe the methods to be used to track projects meeting the criteria.
   5. Evaluation Measures. An important part of the pilot is to measure and evaluate the effectiveness and efficiency of the proposed local preferences. The following six criteria must be addressed within the proposal. Items 1-5 were taken directly from the Federal Register Notice that established the pilot program. See USDOT Q&A # 21.
      1. Describe the project(s), including the amount of FHWA funding involved in the as well as the estimated total project cost.
      2. Describe the proposed contracting requirement that may otherwise be found to be inconsistent with the general requirement for full and open competition.
      3. Describe how the applicant will evaluate the effects of relevant contracting requirements on competitive bidding. In doing so, the applicant should, at a minimum, provide comparisons of bids received for the projects utilizing the relevant contract requirements to other projects of similar size and scope and in the same geographic area not utilizing such requirements. If a reduction in the pool of bidders is evident, explain the potential offsetting benefits resulting from the use of the requirement.
      4. Describe and quantify how the proposed contracting requirement would lead to increases in the effectiveness and efficiency of Federal funding for the project(s).
      5. Describe and quantify how the proposed experimental contracting technique would protect the integrity of the competitive bidding process either in connection with the particular contract or when considered over the long term for that agency’s program.
      6. Describe whether or not the proposed contracting requirement has been the subject of litigation or whether litigation surrounding the use of the requirement has been threatened.
   6. Reporting. Periodic reporting on the status of the SEP-14 proposal is important. Flexibility is provided to the proposer to determine the frequency of reporting. At a minimum, initial and final reports are required.

Please contact Jerry Yakowenko (202-366-1562), John Huyer (651-291-6111), or Norm Stoner (217-502-9215) with any questions.

Thank you.
Tom
Thomas D. Everett, P.E. | FHWA
Director
Office of Program Administration