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Suggested Citation:"BIDDER PRE-QUALIFICATION." National Research Council. 1991. Inspection and Other Strategies for Assuring Quality in Government Construction. Washington, DC: The National Academies Press. doi: 10.17226/1847.
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Page 31

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EXTENSIONS AND ALTERNATIVES TO INSPECTION 31 In addition to the data base, the system includes periodic analysis of contractor performance and interim appraisals. Unsatisfactory appraisals are used to motivate the contractor's management to take corrective action. The Corps has also established29 a board to review CCASS data for initiation of debarment actions, and revised the EFARS to require contracting officers to make a determination on pursuit of debarment action for each final unsatisfactory performance rating. There have been three performance-based debarments and three more were under review in early 1990. Adoption of such a process, including coordinated data exchange, uniform policies, and consistent enforcement by all federal agencies could become a powerful tool for more effective quality management. BIDDER PRE-QUALIFICATION Even in the absence of past performance information, prequalifying contract bidders is a useful quality management tool. It should be more widely used. Criteria for pre-qualification of contractors can include requested references testifying to the bidders management quality and financial strength, visits to the contractors' recently completed projects, and contractors' presentations of their work. The pre-qualification procedure may continue after bids are received by holding interviews and additional reviews. This practice is sometimes criticized as "bid shopping"—inviting a contractor to underbid another's offer—but the committee finds that most contractors will accept this process as a reasonable business procedure. 29 Under Engineer Regulation (ER) 15-1-29.

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This book reports on the costs, effectiveness, and risks associated with agency and private sector inspection practices. It provides advice to senior and mid-level agency managers on the relative merits of alternative strategies in the range of projects typically encountered in federal construction programs.

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