State Of Rhode Island Procurement Regulations

Regulation Authority:

RIGL section 37-2-9

Purpose and Reason:

The regulations detail the procurement, contracting, and administration of road, bridge, and heavy construction transportation projects in the State by adopting sections of the Rhode Island Department of Transportation Standard Specifications for Road and Bridge Construction on an emergency basis. Section 12 contains the additions.

Brief statement of Reason for Finding Imminent Peril:

The Regulation must be implemented immediately to allow the State to continue to award road, bridge and heavy construction transportation contracts. At peril is the maintenance of the State’s infrastructure and economic well-being. Not implementing these regulations immediately on an emergency basis would create an imminent peril to the public health, safety, and welfare of Rhode Island citizens. The issue arose as a result of a legal challenge by a Rhode Island corporation regarding the use of the Rhode Island Standard Specifications for Road and Bridge Construction (as amended) (“Blue Book”) by the Rhode Island Department of Transportation (“RIDOT”) and the Rhode Island Department of Administration (“DOA”) in the procurement, contracting, and contract administration of road, bridge and heavy construction transportation projects in the State of Rhode Island (“Projects”). The majority of the Projects are funded by the federal government at eighty percent (80%) of the total cost. The federal funds for the Projects are allocated on a fiscal year basis. The State of Rhode Island Department of Transportation was awarded $52,932,965.74 for road, bridge and heavy construction transportation projects by the Federal Highway Administration for federal fiscal year 2010 for which the advertising process will commence immediately. If the approved Projects are not awarded, commenced or in some instances completed within the year in which the funds are allocated or a defined time period, the funds may be withdrawn and reallocated to other states’ projects. The Regulation restates and affirms the adoption of Section 100 of the Blue Book which relate to procurement by the Director of the DOA in the existing purchasing regulations. The pending court challenge to the use of the Blue Book has resulted in the DOA and RIDOT being unable to move forward on numerous Projects for over a month. The health and safety of Rhode Island citizens are being threatened as important road and bridge projects will not proceed in a timely fashion if the Regulation is not implemented immediately. The State will be unable to maintain its infrastructure and a backlog of projects will threaten the State’s ability to manage its resources. Moreover, this delay in the award of these funded Projects has and continues to harm the economic welfare of the State and its citizens, especially those local businesses that depend on the Projects for their financial viability and ability to employ a large number of Rhode Islanders in the construction industry. It is common knowledge that Rhode Island is in the midst of a fiscal and economic crisis. As a result of the economic down turn Rhode Island currently has one of the highest unemployment rates in the country. Every Project that is delayed or potentially lost has a real and immediate impact on both the worker who has lost his/her source of income and the family and dependants who rely on that worker’s paycheck. The tens of millions of dollars in Projects that have been delayed by the pending court challenge to the status and use of the Blue Book, which increases the risk that Rhode Island’s federal dollars would be reallocated to other states. It is also important to note that the Blue Book, the majority of which contains specifications which have been incorporated and successfully utilized for many years with all Rhode Island Projects. The Blue Book is a bound volume that is currently, and has been for many years, disseminated to the construction industry. The Blue Book is also currently, and has for many years been, available on line at the RIDOT website. Finally, the Blue Book provisions have been consistently incorporated into every Project by direct reference. Moreover, the Blue Book is available online on the Federal Highway Administration website along with the similar volume for the other forty nine (49) states. The Regulations which relate to the procurement of all RI DOT Projects will allow the State to utilize the federal funds allocated to Rhode Island immediately and will avoid the potential loss of these funds and will have the direct effect of putting Rhode Islanders to work. For the reasons stated above, the Regulation is being promulgated on an emergency basis and will become effectively immediately upon filing with the Office of the Secretary of State. As soon as possible, the Department of Administration will be proposing the promulgation of a permanent regulation in accordance with the standard notice and commenting process provided for in the Administrative Procedures Act, R.I. Gen. Laws § 42-35-3.