Regents continue
hospital bidding
policy debate
By BILL SPINDLE
The University Regents, after exten-
sive discussion and a rare closed-door
executive session, delayed a decision
yesterday on whether state contractors
should be given preference in bids for
Replacement Hospital Project con-
struction work.
The present bidding policy of the
University awards construction con-
tracts to firms offering the lowest bid
regardless of their location.
In a report to the Regents, Vice
President and Chief Financial Officer
James Brinkerhoff raised several con-
cerns which the Regents addressed
during their discussion. Those concerns
included:
" The Replacement Hospital Project
already has made a commitment to the
Michigan Department of Health to
complete construction at the lowest
possible cost. Favoring state contrac'
tors may involve rejecting firms with
low bids, which would drive up the cost
of construction and endanger com-
pletion of the project;
" A policy favoring Michigan firms
could provoke surrounding states and
Canada to impose similar restrictions
on their bidding procedure, which
would hinder Michigan firms' bidding
in out-of-state areas, and nullify any
positive effect the original preference
had caused;
" Determining whether a firm is in-
state could become a sticky matter.
Bidding firms could establish special
joint ventures with state contractors, or
obtain new addresses in an attempt to
be considered an "in-state" firm.
Deciding which firms are "in-state"
would increase administrative costs
and could result in legal action by firms
who perceive unfair bidding com-
petition;
" The Replacement Hospital Project
could become a test case for the entire
state. Currently, preferential bidding
policies are being challenged in courts
in New York and Arkansas.
Brinkerhoff said he was opposed to a.
policy which deviated from the "lowest
bidder" procedure currently in effect.
The Regents first expressed
dissatisfaction with the bidding policy
at their April meeting when they were
asked to approve a contract award for
the Canadian-based firm of Beer Prec-
ast Concrete Ltd. The Beer Precast
contract was only $3,000 lessthan a bid
given by a Michigan construction firm,
Gerace Construction Company of
Midland.
THE REGENTS approved the Beer
Precast contract in April, but they
requested that hospital planners look
into a policy for favoring state firms.
After a lengthy discussion of the
policy, Regent Thomas Roach (D-
Detroit) motioned yesterday for a
meeting with University lawyers in a
closed-door executive session to discuss
the legal ramifactions of thepolicy.
Regents indicated that a final
decision would be made sometime this
morning, when their meeting con-
tinues.
Fast or peace Daily Photo by JACKIE BEE
Roughly 30 people participated in yesterday's 'Fast for Peace' on the lawn
between the Rackham and Frieze buildings. Sponsored by the New Jewish
Agenda, the sunup to sundown fast was held to focus concern on tensions in
the Mideast.
Tuition may jump 15-20%,
Frye reports to Regents
for Nwhatever jungle you're in..
ALL MADEWELL PANTS 20% OFF
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(Continued from Page1)
to strengthen the confidence of the
faculty in the well-being of the in-
stitution than t commitment to arrest
further erosion in salaries at this time,
despite our difficult economic circum-
stances," Frye said.
ACCORDING to Frye, a tuition in-
crease of at least 15 percent was needed
to meet the University's minimum
needs, including what he termed a
"grossly inadequate" salary increase
of 3-4 percent. Frye stressed, however,
that no proposal, or even approximate
range, for a salary program had been
established.
In response to a question,,by Regent
Nellie Varner (D-Detroit) about the
state of the financial aid program, Frye
said "the situation for 82-83 looks better
than it didsix months ago."
He also said that University General
Fund dollars designated for financial
aid-Michigan Opportunity Grants,
University Grants and American In-
dian Grants-would "go up propor-
tionally with tuition."
FRYE SAID that a final proposal on
the tuition increase would be presented
for approval at the July Regents
meeting.
He said, however, that due to several
uncertainties in the budgeting process,
a decision to approve a final budget
may be put off until September or later.
Both Frye and University President
Harold Shapiro expressed concern that
state funding could be altered if the
legislature appropriates less than the
present 0 percent increase in funding,
or if the state cannot fully repay the
deferred fourth quarter payments.
Shapiro noted that the University
would likely finish the present fiscal
year 81-82 with a balanced budget,
although he said that did not reflect the
University's financial troubles.
"The difficulties arise not because we
end the year on budget," he said. "The
crises arise because in order to do that,
we can't attend to the necessary assets
of the University as we would like to."