State Rep. Parker Fairbairn this week secured the House passage of his House Bill 4774, which would require the state to award engineering and architectural design contracts based on a combination of qualifications, experience, and competence – otherwise known as Qualifications-Based Selection (QBS) –not just whoever submits the lowest bid.

“Michigan’s current law forces the state to prioritize the lowest bid, even if it means passing over more qualified architects and engineers,” said Fairbairn, R-Harbor Springs. “Qualifications-Based Selection brings some common sense back into the process by focusing on experience and competence first, rather than just the initial bid.”

Current law requires the state to accept the lowest bid on facility design, often leading to highly qualified companies losing out on opportunities in favor of other groups who offer lower upfront costs, but may cost more for a lower quality outcome over time.

Fairbairn’s plan would require a QBS process be implemented for all engineering and architectural design projects, allowing the state to always consider the competence and experience of the firm when deciding to whom it will award a contract. The practice is already used by 45 other states and the federal government.

“Qualifications-Based Selection has been the standard for federal projects under the Brooks Act for years,” Fairbairn said. “It focuses on finding the most qualified firm first, then negotiating a fair price, which leads to better work and better results in the long run.”

A recent study by the American Council of Engineering Companies found that QBS saves money and time, while achieving a higher level of client satisfaction, with 89% of QBS projects receiving high or very high satisfaction ratings from project owners.

The legislation now moves to the Senate for further consideration.

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