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NEW BID PROCEDURE FOR PGW PAVING CONTRACTS

 PHILADELPHIA, June 21 /PRNewswire/ -- The Philadelphia Gas Works (PGW) announced today the results of a bid procedure employed for the first time to select contractors for asphalt and concrete paving throughout the city.
 The new procedure entailed dividing the city into three sections and accepting bid proposals from contractors for each section as well as for the entire city.
 Specifically, if the lowest citywide bid was higher than the total of the low bids for each of the sections, then the bid was awarded to the low bidder in each of the three sections. If, on the other hand, the lowest citywide bid was less than the total of the three sections, then the lowest citywide bidder was awarded the work.
 Commenting on the new procedures, James N. Wade, chairman of the Philadelphia Facilities Management Corporation (PFMC), which sets policy for PGW and approves all contracts in excess of $100,000, said:
 "The old system was in place for at least 30 years, possibly many more and prevented Women's Business Enterprises (WBE) or Minority Business Enterprises (MBE) from bidding as prime contractors.
 "This new procedure continues to assure that PGW will pay the lowest possible price while at the same time creating an opportunity for responsible vendors who may not have the resources to undertake work on a citywide basis or to obtain a portion of the work.
 "The PFMC decision to divide the city into three sections made it possible for the first time for Women's Business Enterprises (WBE) and Minority Business Enterprises (MBE) to move from the status of sub- contractors to prime contractors. We are very pleased with the way the new system operated," Wade said.
 With respect to concrete paving throughout the city, the lowest cost to PGW was realized by awarding the contracts on a section basis. Accordingly, the work was split with Darcel Construction Company being awarded work in the North and Central sections of the city, while the South section was awarded to Arising Construction Company.
 Darcel Construction Company is a Women's Business Enterprise and Arising Construction Company is a Minority Business Enterprise.
 Six companies competed for the concrete paving contracts. Three others failed to respond to the bid invitation.
 The asphalt paving contract was awarded to General Asphalt Paving whose citywide bid was less than the total of the separate bids for the three sections.
 Three firms competed for the asphalt paving contract, 12 others either failed to respond or declined to bid.
 /delval/
 -0- 6/21/93
 /CONTACT: Clifford Brenner of the Philadelphia Gas Works, 215-684-6620/


CO: Philadelphia Gas Works ST: Pennsylvania IN: UTI SU: CON

CC-MJ -- PH015 -- 4080 06/21/93 13:20 EDT
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Date:Jun 21, 1993
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