Competitive Bids

Preparing bids proposals to keep services in-house

As soon as the issue of contracting out is raised chapters, assemblies and bargaining units must gear up to join the battle to keep public services public. 

First, we must insure locally that public employees have the opportunity to present union arguments to keep a service in-house, before management makes the decision to contract out. 

Proposals should be based on employee experience in the work place. In short, how can the job be done more effectively and efficiently?  This information can be collected in brainstorming sessions with members.

The idea is to show that the service can be provided both economically and by public employees if management makes certain changes that would save money or improve productivity. 

Members, who perform the service, can often come up with such ideas.  Eliminating some unnecessary management positions or changing equipment purchasing procedures are two of the most common suggestions in such situations. 

Members may also be able to come up with other efficiencies regarding schedules, work assignments and other terms and conditions of their employment. 

In that case, the union must be careful to suggest only those changes that the members are comfortable with and agree to the changes as part of collective bargaining.

There are possible disadvantages to this approach in certain cases.  A public employer can sometimes threaten to contract out a service as a way to force the union to agree to concessions on wages or working conditions. 

If the threat is real and the members willing, negotiating reasonable changes in return for guarantees against contracting out may be worthwhile. 

But the union must be careful not to allow a government to brandish the contracting out threat time and again as a way to erode negotiated benefits.  The union must make a careful assessment in each case before deciding whether or not such changes are a good idea.

OCSEA won the right to prepare bids to “contract in” work proposed for outside contractor bidding. 

It will take you some time and practice to develop the ability to prepare accurate bids and budgets – contact the OCSEA Education Department for training on bid preparation and classes on fighting privatization. You should be careful to assess whether or not it is worth the time and energy you will need to invest to fight a particular proposed contract. 

Although it may be difficult to accept, sometimes outsourcing is the most effective way for governments to deliver services, and you want to carefully pick the battles you are willing to wage on this issue.  Make sure you have consensus among members, union leaders, and staff on which contracts are worth fighting.

See Related

Bid preparation and budget forecasting