Klemetsrud questions competitive bidding process at NR-S

Jeff Klemetsrud of Klemetsrud Plumbing and Heating told the Transcript that he wants to “set the record straight” about the competitive bidding process for the school boilers at NR-S.

The Transcript reported in its Aug. 16 edition that the NR-S school board awarded the bid to replace the school’s aging boilers to Minot Plumbing and Heating, even though their bid was $14,313 more than Klemetsrud’s.

The reason given at the Monday, Aug. 9 meeting, as the reporter who covered the meeting understood, was that Klemetsrud was the only contractor who didn’t respond to a request for references. Board members and Superintendent Jill Louters highlighted a reference from an elementary school where Minot Plumbing and Heating had done work, and noted that their communication was key to the board choosing them to complete the work.

However, Klemetsrud says he was not asked to provide references. In fact, according to an email to Klemetsrud from Lucas Niess of Prairie Engineering, “No, the school requested the info from only the other three contractors.”

Klemetsrud said he has yet to be given a reason why the school ignored his bid, choosing instead to pay thousands more, and use Minot Plumbing and Heating.

“You’re saying I’m not responsible, but I am,” he declared, citing North Dakota Century Code Chapter 48, which requires governing bodies to choose the “lowest responsible bidder” for public projects.

“They have nothing to go on if they haven’t even asked us for references,” he added. Devils Lake, Edmore, St. John and Cooperstown are among the schools where Klemetsrud Plumbing and Heating has completed boiler work recently.

“There is nothing in our past that indicates we are not responsible,” Klemetsrud said. “We deal with public money all the time.”

Most larger contractors rely on the competitive bidding process in the state of North Dakota for work, Klemetsrud noted, and most are “in shock” that the New Rockford-Sheyenne school board chose not to accept the lowest bid.

So in what instances can a contractor’s bid be thrown out, you might ask? Doesn’t the school board have the option to “reject any and all bids” as the Century Code states?

Klemetsrud said he’s bid on many public projects, and it’s “simply not done this way.” He said typically a bid will be “rejected” before it’s even opened, for failure to complete necessary paperwork or not including a bid bond, for example.

“It’s just never done that they say people are not responsible,” Klemetsrud said. In his experience, disgruntled former customers are not enough to consider a contractor not responsible.

Klemetsrud has retained an attorney, who sent a letter to Superintendent Jill Louters and the school board dated August 12, 2021. In the letter, the school district was given until Wednesday, Aug. 18 at noon to provide an explanation.

“To date, my client has not been provided with any information regarding a single deficiency with their bid, despite requesting the same. Please immediately provide a transcript and all records regarding the bid reading, bid selection, and bid award.

“Please also be advised that this letter serves as notice that Klemetsrud intends to file a temporary restraining order and preliminary injunction if the above-referenced materials are not received prior to Wednesday, August 18, 2021, by noon,” attorney Jonathon (Jack) Yunker wrote.

We contacted Dr. Jill Louters and board president Mary Kay Price on Wednesday, Aug. 18, and asked them to provide the Transcript with any deficiencies of Klemetsrud they discovered that were not reported. Both deferred to the building committee, who they say reviewed the bids and made the recommendation to the board to accept Minot Plumbing and Heating’s bid.

In a written statement, Price noted, “Our building committee is made up of highly competent members, who to the best of their ability, do what is best for our school. Their decision to go with Minot Plumbing and Heating was approved by the board.”

Klemetsrud told the Transcript this past Wednesday, Aug. 25, that he had not yet received a response from the district. He also stated that he had signed an affidavit to file a motion for a temporary restraining order against the New Rockford-Sheyenne School District.

The school board held two special meetings this past week, on Monday and Thursday respectively, each with only one agenda item: “Executive Session-Negotiations Strategy as per NDCC 44-004-19.2.” The Transcript reached out to Louters and Price again for clarification on the specific legal reason for the negotiations, and no response was given as of press time.

Readers should note that executive sessions of public bodies are closed meetings, and therefore reporters cannot be present to hear the discussions held.

While Russ Hanson, Executive Director of the Associated General Contractors of North Dakota, said he could not comment on this specific situation, he noted, “As an association, we are very supportive of the competitive bidding process when it comes to public dollars. We believe it provides transparency.”

He then referred to the official definition of “lowest responsible bidder,” as per N.D.C.C. 48-01.02, which reads, “‘Lowest responsible bidder’ means the lowest best bidder for the project considering past experience, financial condition, past work with the governing body, and other pertinent attributes that may be identified in the advertisement for bids.”

“Generally, the low bid does get the award, but occasionally we hear instances where it doesn’t. And then, there are some questions,” Hanson added.

There are indeed questions, and as of press time those questions appeared to be waiting for answers in court.

Read the Transcript for more on this developing story.