WHITPAIN TOWNSHIP

ORDINANCE NO. 394

AN ORDINANCE OF THE TOWNSHIP OF WHITPAIN, COUNTY OF

MONTGOMERY, COMMONWEALTH OF PENNSYLVANIA, PROVIDING FOR THE

ADOPTION OF CERTAIN PROCEDURES RELATED TO THE SOLICITATION AND

AWARD OF PUBLIC CONTRACTS; PROVIDING FOR CERTIFICATION

REQUIREMENTS FOR PUBLIC CONTRACTORS AND SUBCONTRACTORS TO

PUBLIC CONTRACTS; PROVIDING FOR PUBLIC CONTRACT REVIEW

PROCEDURES; PROVIDING FOR ASSURANCE ON THE USE OF PROPERLY

TRAINED CONSTRUCTION PERSONNEL; REPEALING INCONSISTENT

ORDINANCES OR PARTS OF ORDINANCES; CONTAINING A SAVINGS CLAUSE

AND PROVIDING FOR AN EFFECTIVE DATE.

CERTIFICATION

I, ROMAN M. PRONCZAK, BEING DULY SWORN ACCORDING TO LAW, DEPOSE

AND SAY THAT I AM THE TOWNSHIP MANAGER IN WHITPAIN TOWNSHIP,

MONTGOMERY COUNTY, PA AND THAT ATTACHED HERETO IS A TRUE AND

COMPLETE CORRECT COPY OF ORDINANCE NO. 394

Roman M. Pronczak, P.E., Township Manager

3/;b j , 2022 , l

ENACTED:

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ORDINANCE NO. 394

AN ORDINANCE OF THE TOWNSHIP OF WHITPAIN, COUNTY OF

MONTGOMERY, COMMONWEALTH OF PENNSYLVANIA, PROVIDING FOR THE

ADOPTION OF CERTAIN PROCEDURES RELATED TO THE SOLICITATION

AND AWARD OF PUBLIC CONTRACTS; PROVIDING FOR CERTIFICATION

REQUIREMENTS FOR PUBLIC CONTRACTORS AND SUBCONTRACTORS TO

PUBLIC CONTRACTS; PROVIDING FOR PUBLIC CONTRACT REVIEW

PROCEDURES; PROVIDING FOR ASSURANCE ON THE USE OF PROPERLY

TRAINED CONSTRUCTION PERSONNEL; REPEALING INCONSISTENT

ORDINANCES OR PARTS OF ORDINANCES; CONTAINING A SAVINGS CLAUSE

AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the Township of Whitpain is a duly organized Township of the second class, existing and operating in accordance with the laws of the

Commonwealth of Pennsylvania; and

WHEREAS, Whitpain Township ("Township") is empowered to enact certain laws needed to protect its proprietary and financial interests relating to major capital investments it makes in public works projects, as well as those relating to the public health, safety, and welfare of its residents; and

WHEREAS, the Township has particular concerns regarding the challenges it faces in planning and executing public works construction projects, especially those relating to its ability to ensure the use of properly qualified contractors and subcontractors and adequate numbers of craft personnel who have industry recognized training in the respective skills and trades needed for future projects; and

WHEREAS, the Township hereby adopts the Responsible Contractor

Resolution No. 1488, attached hereto as Exhibit A ("Resolution"), resolving to address the above-referenced challenges through appropriate procurement and contracting legislation as embodied in this ordinance and wishes to incorporate the terms of the Resolution m their entirety as material terms of this ordinance.

NOW, THEREFORE, BE IT ORDAINED AND ENACTED by the Board of

Supervisors of Whitpain Township, the following requirements are adopted for public works contracts as specified herein:

SECTION 1

§1. Purpose

The Township recognizes there is a need to ensure that all work on public construction and maintenance contracts is performed by responsible, qualified firms that maintain the capacity, expertise, personnel and other qualifications and resources necessary to successfully perform public contracts in a timely, reliable, and cost-effective manner.

To effectuate the purpose of selecting responsible contractors for these public contracts and to protect the Township's proprietary investments in such contracts, prospective contractors and subcontractors, should be required to meet pre-established, clearly defined, minimum qualification standards regarding past project performance in terms of competency, safety and law compliance, technical abilities, experience, and adequacy of resources.

Further, due to the critical impact that skilled craft labor has on the execution of public works projects, and the increasingly limited availability of such labor, it is necessary to require contractors and subcontractors to participate in proven apprenticeship training programs as a condition of bidding to promote successful project delivery and help ensure future workforce development.

Therefore, the Township shall require compliance with the provisions of this ordinance by business entities seeking to provide services to the Township as specified herein. The requirements of this ordinance are intended to supplement, not replace, existing contractor qualification and performance standards or other criteria currently required by the Township. However, in the event that this ordinance conflicts with any law, public policy or contracting documents of the Township, this ordinance shall prevail.

§2. Responsible Contractor Requirements

(a) This ordinance shall apply to all public works projects undertaken by the Township for construction, demolition, alteration, renovation, modernization, service or maintenance of buildings, structures, or facilities valued at or above $250,000.00. All contractors and subcontractors of any tier that perform work on such projects, regardless of the value of the individual contract or subcontract package, shall meet the requirements of this ordinance.

(b) All firms engaged in public works contracts subject to this ordinance, including general contractors, construction managers, other lead or prime contractors, and subcontractors at any level, shall be qualified, responsible contracting firms that have sufficient capabilities in all respects to successfully perform contracts on which they are engaged, including the necessary experience, equipment, technical skills and qualifications and organizational, financial and personnel resources.

Firms bidding or otherwise participating in public works contracts shall also be required to have a satisfactory past performance record and a satisfactory record of law compliance, integrity, and business ethics.

(c) The firm will pay all craft employees on the project, at a minimum, the applicable wage and fringe benefit rates, as established for the classification in which the worker is employed, in accordance with 43 PA.

CONS. STAT. § 165-1 et. seq.

§3 Contractor Responsibility Certifications

(a) As a condition of performing work on a public works contract subject to this ordinance, a general contractor, construction manager or other lead or prime contractor seeking award of a contract shall submit a Contractor Responsibility Certification, as specified herein.

Subcontractors used on the contract are likewise required to provide similar Subcontractor Responsibility Certifications as provided by section 7 of this ordinance.

(b) The Contractor Responsibility Certification shall be completed on a form provided by the Township and shall reference the project for which a bid is being submitted by name and contract or project number.

(c) In the Contractor Responsibility Certification, the construction manager, general contractor, or other lead or prime contractor shall confirm the following facts regarding its past performance and work history and its current qualifications and performance capabilities:

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(1) The firm and its employees have all valid, effective licenses, registrations, certificates, or other credentials required by federal, state, Township, or local law.

(2) The firm meets the bonding requirements for the contract, as required by applicable law or contract specifications, as well as applicable insurance requirements for the contract including general liability insurance, workers' compensation msurance and unemployment insurance.

(3) The firm has not been debarred or suspended by any federal, state, or local government agency or authority in the past three years.

(4) The firm has not defaulted on any project in the past three years.

(5) The firm has not had any type of business, contracting or trade license, registration, or other certification revoked or suspended in the past three years.

(6) The firm and its principals/ owners have not been convicted of any crime relating to its contracting business in the past ten years.

(7) Within the past three years, the firm has not been found in violation of any law applicable to its contracting business, including, but not limited to, licensing laws, tax laws, prompt payment laws, wage and hour laws, prevailing wage laws, environmental laws or others, where the result of such violation was the payment of a fine, back pay damages or any other type of penalty in the amount of $5,000 or more.

(8) The firm will employ a sufficient number of craft labor personnel required to successfully perform any project work it self performs or shall use qualified subcontractors to meet this requirement.

(9) The firm will ensure that all craft labor it employs on the project will have completed, prior to working on the project, the OSHA 10-hour training course for safety established by the U.S.

Department of Labor.

(10) The construction manager, general contractor or other lead or prime contractor responsible for the project shall ensure that at least 70 percent of the craft labor workforce employed on the project workforce shall be comprised of either journeyperson, workers who have successfully completed an apprenticeship training program registered with and approved by the U.S.

Department of Labor or a state apprenticeship agency or registered apprentices currently enrolled in such programs.

A. These craft labor requirements that the great majority of the craft labor personnel employed on the project have the requisite skills and qualifications to perform the project work as they will be participants in or graduates of bona fide apprenticeship training programs in each trade or craft in which their services are utilized.

B. For purposes of this subsection, apprenticeship training programs may include those which are subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq. ("ERISA"), or non-ERISA programs.

C. To demonstrate compliance with this section, the firm shall provide, with this certification, a list of all trades or classifications of craft employees it will employ on the project and the names and addresses of all applicable apprenticeship programs relating to craft personnel utilized on the project.

(11) The firm shall assign workers to perform only work in their respective craft or trade for which they have sufficient skills and training, or shall use qualified subcontractors to meet this requirement.

(12) The firm has all other technical qualifications and resources, including equipment, personnel, and financial resources, to successfully perform the referenced contract and shall maintain such capabilities throughout the duration of the project, or will obtain same through the use of qualified, responsible subcontractors or vendors.

(13) The firm shall notify the Township within seven days of any material changes in its operation that relates to any matter attested to in this certification.

(14) The firm understands that the Contractor Responsibility Certification required by this section shall be executed by a person who has sufficient knowledge to address all matters in the certification and shall include an attestation stating, under the penalty of perjury, that the information submitted is true, complete, and accurate.

(d) Execution of the Contractor Responsibility Certification required by this ordinance shall not establish a presumption of contractor responsibility, and the Township may require any additional information it deems necessary to evaluate a firm's status as a responsible contractor, including information regarding the firm's technical qualifications, financial capacity or other resources and performance capabilities. The Township may require that such information be included in a separate Statement of Qualifications and Experience or as an attachment to the Contractor Responsibility Certification.

(e) The submitting firm shall stipulate in the Contractor Responsibility Certification that, if it receives a Notice of Intent to Award Contract, it will provide a Subcontractor List and required subcontractor information as specified in Section 5 of this ordinance.

(f) If the submitting firm has ever operated under another name or is controlled by another company or business entity or in the past five years controlled or was controlled by another company or business entity, whether as a parent company, subsidiary or in any other business relation, it shall attach an appendix to its Contractor Responsibility Certification that explains in detail the nature of any such relationship.

Additional information may be required from such an entity if the relationship in question could potentially impact contract performance.

(g) If a firm fails to provide a Contractor Responsibility Certification required by this section, it shall be disqualified from bidding. No action of any nature shall lie against the Township because of its refusal to accept a bid for this reason.

§4. Pre-Qualification Requirements

Each firm subject to the requirements of this Ordinance must submit a Contractor Responsibility Certification at least fourteen (14) calendar days before the specified bid submission deadline. Failure to submit a Contractor Responsibility Certification by the aforesaid deadline will automatically disqualify any firm from submitting a bid or proposal for a contract.

Upon the receipt of the pre-qualification Contractor Responsibility Certification, the Township shall determine whether the firm meets the requirements set forth m this Ordinance. Notice of the Township's determination shall be sent to the proposed firm no less than seven (7) calendar days before the specified bid submission deadline. All firms that are determined by the Township to meet the qualification requirements of this Ordinance shall be entitled to submit a bid or proposal for the project.

§5.Notice of Intent to Award Contract

(a) After it has received bids for a project, the Township shall issue a Notice of Intent to Award Contract to the firm that has submitted the lowest responsible bid.

(b) Such Notice shall be issued immediately or as soon as practicable after bids are opened and shall stipulate that the contract award is conditioned on the issuance of a written Contractor Responsibility Determination for the firm, as required by Section 7 of this ordinance, compliance with Subcontractor Certifications required by Section 6 of the ordinance, and any other qualification standards required by the Township.

§6. Subcontractor Responsibility Requirements

(a) Within fourteen (14) days of receiving a Notice of Intent to Award Contract, the prospective awardee shall submit to the Township a Subcontractor List, which provides the name and address of the subcontractors it will use on the project, the scope of the work assigned to each subcontractor, and Subcontractor Responsibility Certifications as required by this section.

(b) The prospective awardee shall not be permitted to use a subcontractor on any work performed for the Township unless it has identified the subcontractor on its Subcontractor List and provided a Subcontractor Responsibility Certification in accordance with the requirements of Section 3.

(c) At the time a perspective awardee submits the Subcontractor List it shall also submit Subcontractor Responsibility Certifications and applicable supporting information for all listed subcontractors to the Township.

(d) A prospective awardee shall determine whether any firm on its Subcontractor List is organized as a sole proprietership owned and operated by a single person. This shall apply to subcontractors at any tier. For any such entity, the prospectivee awardee shall ensure that the sole proprietership subcontractor is a legimate business entity and not a misclassified employee by requiring the subcontractor to supplement its Subcontractor Certification with its Employer Identification Number and copies of any license, certificate, or registration it is required to maintain in order to do business in the state in which it is located.

(e) Subcontractor Responsibility Certifications shall be executed by the respective subcontractors on forms prepared by the Township and shall contain the same information, representations, and supporting information required in Contractor Responsibility Certifications, including verification of apprenticeship qualifications as required by Section 3(c)( 10), for each trade or classification of craft workers it will employ on the project.

(f) Subcontractor Responsibility Certifications shall be executed by a person having sufficient knowledge to address all matters in the certification and shall include an attestation stating, under the penalty of perjury, that all information submitted is true, complete and accurate.

(g) A subcontractor listed on a firm's Subcontractor List shall not be substituted unless written authorization is obtained from the Township and a Subcontractor Responsibility Certification is provided for the substitute subcontractor.

(h) In the event that the Township determines that a subcontractor fails to meet the requirements of this ordinance or is otherwise determined to be non-responsible, it may, after informing the prospective awardee, exercise one of the following options:

(1) Permit the awardee to substitute a qualified, responsible subcontractor in accordance with the requirements of this section, upon submission of a completed Subcontractor Certification for the substitute and approval of the substitute by the Township.

(2) Require the awardee to self-perform the work in question if the firm has the required experience, licenses, and other qualifications to perform the work in question; or

(3) Disqualify the prospective awardee.

(i) In the event a subcontractor is disqualified under this ordinance, the general contractor, construction manager or other lead or prime contractor shall not be permitted to make any type of claim against the Township based on a subcontractor disqualification.

§7. Contractor Responsibility Review and Determination

(a) After the Township has issued a Notice of Intent to Award Contract to the lowest responsive bidder, it shall undertake a contractor responsibility review process to determine whether the firm is a qualified, responsible firm in accordance with the requirements of this ordinance and other applicable laws and regulations. The time frame for conducting this review process shall be as determined by the Township.

(b) As part of the review process, the Township shall ensure that the Contractor Responsibility Certification and Subcontractor Responsibility Certifications and applicable supporting information comply with the requirements of this ordinance.

(c) The Township may conduct any additional inquiries to verify that the prospective awardee and its subcontractors have the technical qualifications and performance capabilities necessary to successfully perform the contract and that the firms have a sufficient record of law compliance, integrity, and business ethics to justify the award of a public contract. In conducting such inquiries, the Township may seek relevant information from the firm, its pnor clients or customers, its subcontractors, or any other relevant source.

(d) After the Township determines that all responsibility certifications have been properly executed and has verified that all other relevant information submitted in response to requests pursuant to the review process indicates that the prospective awardee and its subcontractors are qualified, responsible firms, it shall issue a written Contractor Responsibility Determination for the prospective awardee.

(e) In the event a firm is determined to be non-responsible, the Township shall notify the firm and proceed to conduct a responsibility review of the next lowest, responsive bidder or, if necessary, rebid the project. A Responsibility Determination may be revoked at any time if the Township obtains relevant information warranting any such revocation.

§8. Execution of Final Contract

(a) A contract subject to this ordinance shall not be executed until all requirements of this ordinance have been fulfilled and until a Contractor Responsibility Determination has been issued by the Township under Section 7(d).

(b) Prior to the execution of a final contract under this Section, the Township shall publicly post the Notice of Intent to Award, Contractor and Subcontractor Responsibility Certifications, Subcontractor Lists, related supporting documentation, and the Contractor Responsibility Determination, on the Township website for public inspection for a period of ten (10) calendar days after the issuance of the Contractor Responsibility Determination.

§9. False or Misleading Responsibility Certifications

If the Township determines that a Contractor Responsibility Certification, Subcontractor List, or Subcontractor Responsibility Certification contains false or misleading material information that was provided knowingly or with reckless disregard for the truth or omits material information knowingly or with reckless disregard of the truth, the firm for which the certification was submitted shall be disqualified from the project and shall be prohibited from performing work for the Township for a period of three years. The Township may withhold payment of any monies due to the firm as damages and impose oth er applicable penalties and sanctions, including contract termination, as permitted by law or contract.

SECTION 2

Any and all other ordinances or parts of ordinances in violation or in conflict with the terms, conditions and provisions of this ordinance are hereby repealed to the extent of such irreconcilable conflict.

SECTION 3

The terms, conditions and prov1s10ns of this ordinance are hereby declared to be severable, and, should any portion, part or provision of this ordinance be found by a court of competent jurisdiction to be invalid, unenforceable or unconstitutional, the Board of Supervisors hereby declares its intent that the ordinance shall have been enacted without regard to the invalid, unenforceable or unconstitutional portion, part, or provision of this ordinance.

SECTION 4

This ordinance shall become ~ffectiv~ days after enactment.

ORDAINED AND ENACTED this ){,a,, day of 111._~ 2022, by the Whitpain Township Board of Supervisors.

[Seal]

Campolongo, Secretary

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WHITPAIN TOWNSHIP

BOARD OF SUPERVISORS

Kimberly J. Koch, Chair

WHITPAIN TOWNSHIP

RESOLUTION NO. 1488

A RESOLUTION OF

WHITPAIN TOWNSHIP,

COUNTY OF MONTGOMERY, COMMONWEALTH OF PENNSYLVANIA,

SUPPORTING THE ENACTMENT OF A RESPONSIBLE CONTRACTOR ORDINANCE

WHEREAS, pursuant to 53 P.S. 68102, the Second Class Township Code requires that most public works contracts be awarded to the lowest "responsible" bidder; and

WHEREAS, notwithstanding the importance of the "responsible" bidder requirement, there is very limited guidance for defining the term "responsible" in relevant statutes, regulations or case law and, therefore, prudent procurement and contracting policy dictates that this term should be more specifically defined; and in doing so, available guidance regarding the general meaning of the "responsible" contractor term should be followed, which typically relates to the technical qualifications and other capabilities relating to a contractor's ability to successfully deliver public works projects; and

WHEREAS, many states and local jurisdictions in the U.S. face critical contracting needs in the future, including those for public works and infrastructure projects, that will require significant efforts to plan, manage and oversee major capital investments in both the short and long term;

see PRESIDENT'S COUNCIL OF ECON. ADVISORS, ECONOMIC BENEFITS AND IMPACTS OF EXPANDED

INFRASTRUCTURE INVESTMENT 3 (2018) (estimating $4.6 trillion in infrastructure investment is needed between 2016 and 2025); and

WHEREAS, in undertaking its infrastructure and other public works projects, Whitpain

Township ("Township") seeks to utilize reliable and efficient procurement procedures that will help ensure that its projects are delivered with reasonable certainty, in a safe, timely manner, and in accordance with contract specifications and applicable industry codes at the lowest overall cost and best value; and

WHEREAS, securing successful delivery of projects in the construction industry is particularly difficult due to the unique, complex, unpredictable and inherently dangerous nature of the industry, wherein errors in project planning or execution can result in serious health and safety risks to project workers and/or the general public, significant and avoidable cost overruns, flawed or inferior projects, and disruptions in performance schedules that delay the availability and use of critical government facilities; MAUREEN CONWAY & ALLISON GERBER, ASPEN INST., WORKFORCE STRATEGIES INITIATIVE, CONSTRUCTION PRE-APPRENTICESHIP PROGRAMS: RESULTS FROM A

NATIONAL SURVEY 6-7 (2009)(discussing complicating factors in successful delivery of construction projects and the risks of using poorly trained workers); and

WHEREAS, to protect its financial and proprietary interests in these projects, and to offset performance risks inherent to public works contracting, the Township must utilize efficient procurement procedures that adequately protect and promote these interests, including clearly defined, pre-established evaluation criteria to address the unique challenges of capital construction and result in the selection of qualified, reputable contractors and subcontractors that are committed to the Township's goals of safe, timely, cost-effective project delivery; and

WHEREAS, to establish efficient procurement procedures, the Township specifically seeks to require that its public works contracts are performed by qualified "responsible" contractors and subcontractors that meet essential performance criteria, including: (a) satisfactory records of past performance, including compliance with applicable laws and industry regulations; and (b) adequate present performance capabilities, including contractor and subcontractor competency and availability of skilled craft personnel; and

WHEREAS, effective contracting procedure must recognize and address unique challenges relating to procurement in the construction industry, including the following:

(a) construction is a transient industry, which requires a careful review of a firm's past performance, as well as its current capabilities;

(b) construction is an inherently dangerous industry that requires craft personnel to receive proper safety training; Geetha M. Waehrer et. al., Costs of Occupational Injuries in

Construction in the United States, 39 ACCIDENT ANALYSIS & PREVENTION 1258 (2007)(construction is a high risk industry and accounts for disproportionate share of work-related injuries); Bureau of

Labor Statistics, Fatalities in the Construction Industry, MONTHLY LAB. REV., July 2014 (industry accounts for 40% of all fatal work-related falls);

(c) under virtually any market conditions, construction projects require assurances of a reliable supply of well-trained craft personnel because it is a highly skil led, labor intensive industry; and

(d) the construction industry is currently facing acute, worsening skill shortages and such conditions pose major risks to the planning and execution of capital construction projects;

CONSTRUCTION LABOR MARKET ANALYZER, CONSTRUCTION USERS ROUNDTABLE (CURT), THE LONG-TERM

OUTLOOK FOR CONSTRUCTION 6 (2017)(estimating an impending deficit of 1.5 million skilled workers through 2022 in the construction industry); see also, Gabriela Rico, Labor Shortage, steel-cost uncertainties halt work on highly anticipated Oro Valley senior community, Arizona Daily Star

(June 9, 2018), https://tucson .com/business/labor-shortage-steel-cost-worries-halt-anticipated oro-valley-senior /a rticle_9c48ee4 f-7a90-5c89-90e2-aedd902738ec.htm 1 (discussing how labor shortage caused cancellation of $100 million senior living center; Anastachiah Ondieki, Skilled labor shortages hit Vogtle as Georgia Power reports progress, Atlanta Journal-Constitution (Apr.

20, 2018), https ://www.ajc.com/ news/loca 1-govt--po I itics/ ski I led-la bo r-sho rtages-hit-vogtle-geo rgia-powe r-reports-progress/xa V da B Lj ix0WXj4v6 jY Fwl/ (discussing how shortage of electricians in Georgia is delaying completion of nuclear power plant; Chirs Ramirez, Labor shortage causes Exxon to shift construction plans, Corpus Christi Caller-Times (Aug. 9, 2017), https ://www .ca Iler .com/ story/ news/2017 /08/09 /la bar-shortage-ca u ses-exxo n-s h ift-co nstruct ion plans/525241001/ (discussing how shortage of welders in the Gulf Coast delayed construction of world's largest ethylene plant); Ben Du Bose, ECF '16: Energy Contractors Need Newcomers to

Ease Labor Shortage, Hydrocarbon Processing (Mar. 1, 2016), http://www. hydrocarbon processing. com/ Article/3533820/ Confe rence-news/E CF-16-E nergy contracto rs-need-newcomers-to-ease-la bo r-s hortage. htm I (discussing how labor shortage contributes to a 65% fai lure rate among mega-projects in Gulf Coast Region); Gavin Aronsen, Labor Shortage Delays DuPont Plant Completion, Ames Tribune (Jan. 9, 2015), http://amestrib.com/news/labor-shortage-delays-dupont-plant-completion (discussing how the shortage of qualified workers delayed the completion of a $200 million DuPont ethanol plant in

Iowa); and

WHEREAS, due to acute labor shortages in construction craft personnel, leading construction industry groups, including trade associations representing project owners, such as the Construction Users Roundtable (CURT), have repeatedly issued strong recommendations to parties purchasing construction serv ices for large capital projects that they should adopt a pre qualification standard that requires contractors and subcontractors to prove their participation in craft labor training programs in order to bid or perform work on projects; and

WHEREAS, the above-referenced recommendations are specifica lly designed to protect the project owner's financial and proprietary interests in capital projects by ensuring that such firms provide skill training to construction craft personnel and have an adequate supply of trained, skilled construction workers to perform their projects; CURT, WP-1101, SKILLED LABOR SHORTAGE RISK

MITIGATION (January 2015)(recommending that, to address skill challenges, project owners require contractors to provide ski lls training as a condition of bidding projects); MATT HELMER & DAVE

ALTSTADT, ASPEN INST., WORKFORCE STRATEGIES INITIATIVE, APPRENTICESHIP: COMPLETION AND CANCELLATION

IN THE BUILDING TRADES 8-9 (2013)(proposing a requirement that all contractors participating in publicly funded projects participate in registered apprenticeship programs); ROBERT LERMAN ET AL., BENEFITS AND CHALLENGES OF REGISTERED APPRENTICESHIP: SPONSORS' PERSPECTIVE ii (2009)(find ing that

97% of employer-sponsors of registered apprenticeship programs would recommend t he program to others and that over 80% of sponsors cited filling the demand for skilled workers as a "very important" benefit of apprenticeship); CURT, CONFRONTING THE SKILLED WORKFORCE SHORTAGE (June

2004)(recommending all owners prequalify contractors on the basis of craft training); DAVID H.

BRADLEY & STEPHEN A. HERZENBERG, CONSTRUCTION APPRENTICESHIP AND TRAINING IN PENNSYLVANIA 3

(2002)(describing "free rider" market failure that incentivizes employers to under-train construction workers in the absence of apprenticeship programs); and

WHEREAS, in seeking to ensure the adequat e development of trained, skilled personnel for the construction industry, as well as other industries, the United States Congress passed the

Fitzgera ld Act, Pub. L. No. 75-308, 50 Stat. 664, which created a syst em in which workers cou ld be properly trained in construction skills and safety procedures through organized, formally registered apprenticeship training programs that meet established quality, safety and performance standards and that such programs are approved and monitored by the U.S.

Department of Labor and stat e labor agencies, including the Pennsylvania State Apprenticeship

Council; and

WHEREAS, numerous constructi on industry organizations, as well as notable public policy groups, support apprenticeship as an effective means for providing craft labor personnel with essential training and skills, while providing t hem with valuable employment opportunities. For example, the Associated Builders and Contractors ("ABC")("ABC has become the world leader in apprenticeship and craft training in the merit shop construct ion industry"), https://www.abc.org/Education-Training/Craft-Training-Apprenticeship; see also, ABC Eastern PA

Chapter ("ABC Apprenticesh ip program has played a critical role i n developing our apprentices into Journey workers. They've ga ined the knowledge and hands on skills needed to be successful in the field and have played an integral part in growing our organization and allowing us the opportunity to expand into different locations and markets."); North America's Building Trade

Unions ("apprenticeship programs train workers to become, highly-skilled ... construction workers through a debt -free, t echnologically-advanced education ... earn -as-you -lea rn programs w ith family-susta ining wages and provide healt h care coverage and retirement benefits"), https://nabtu.org/apprenticeship-and-t ra ining; Center for American Progress ("Apprenticeship is a proven worker train ing strategy that combines on-the-job tra ining with classroom instruction . ..

[f)or workers, apprenticeship means a rea l job that leads to a credential that is va lued in the labor market . Apprentices are paid for their time spent on the job, accumulate little to no st udent debt, and are genera lly retained once they have successfully completed their programs; Aspen Institute

("Efforts to increase the number of apprenticeships have broad bipartisan support with advocates at the federal, state, and local levels. At the federal level, both the Trump administration and Obama administration prioritized expanding apprenticeship programs as a way to align the needs of workers and employers. In Congress, the Apprenticeship and Jobs Training

Act of 2017-seeks to expand the use of apprenticeships through an employer tax credit-has earned bipartisan support" in both the House and Senate), https://www.aspeninstitute.org/blog posts/a p prenticeshi ps-as-model-of-ski I ls-based-training; and

WHEREAS, research from both government and industry underscore the need to expand the use of apprenticeship training across the economy, especia lly in construction, as a means for promoting skills training to address current and future workforce deve lopment needs; such reports include a joint report issued by various agencies of the federal government-U.S. DEP'Ts OF

LABOR, COMMERCE, EDUC., AND HEALTH AND HUMAN SERVS., WHAT WORKS IN JOB TRAINING: A SYNTHESIS OF

THE EVIDENCE 8 (2014); WORKFORCE TRAINING AND EDUC. COORDINATING BD., WORKFORCE TRAINING RESULTS

2015 5, 47-49 (2015)(showing that, compared to other worker training programs in Washington st ate, apprenticeship training was "very successful" and ranked first in: increased annualized earnings for workers, net participant benefits, net public benefits, and present va lue of net returns to taxpayers); U.S. DEPT OF COMMERCE, ECON. AND STATISTICS ADMIN. & CASE WESTERN RESERVE

UNIV., THE BENEFITS AND COSTS OF APPRENTICESHIP: A BUSINESS PERSPECTIVE (showing apprenticeship programs are unanimously supported by participating employers and highly cost-effective due to numerous factors, includ ing higher productivity of trained workers, improved safety, project quality, reliable project staffing, and reduction in employee turnover); COUNCIL OF ECON. ADVISORS, ADDRESSING AMERICA'S RESKILLING CHALLENGE 7-8 (2018)(showing that Federal, state, and loca l governments in the U.S. spend "far less" on retraining and reskilling than other advanced economies); Federal Executive Order promoting greater use of apprenticeship programs to train the U.S. workforce: Exec. Order No. 13,801, 82 Fed. Reg. 28,229 (June 20, 2017); and

WHEREAS, in recognizing the value created by apprenticeship training and the significant return-on-investment apprenticeship programs produce for employers, the Executive Branch has taken steps through Executive Orders and the creation of a task force devoted to apprenticeships to support and encourage the expansion of apprenticeship training programs nationwide in conjunction with private and public entities; Exec. Order No. 13,845, 83 Fed. Reg. 35,099 (July 24, 2018) (creating a National Council for the American Worker to promote apprenticeship training programs as a means of addressing the skills crisis facing the nation); TASK FORCE ON APPRENTICESHIP

EXPANSION, FINAL REPORTTO THE PRESIDENT OF THE UNITED STATES 15 (2018) (estimating every dollar spent by employers on apprenticeship programs yields a return of $1.47); and

WHEREAS, the courts have consistent ly recognized that states and loca l jurisdictions seeking to protect substant ial financial and proprietary interests have the right to enact contracting and procurement legislation and/or to impose contract bid specifications designed to ensure the performance capabilities of prospective contractors and subcontractors and their employees, including apprenticeship training requirements and other craft labor qualifications;

see Bldg. & Const. Trades Council of the M etro. Dist. v. Assoc. Builders & Contractors of Moss. and

R.I., Inc., 507 U.S. 218 (1993); Assoc. Builders & Contractors v. Mich. Dept of Labor & Econ.

Growth, 543 F.3d 275 (6th Cir. 2008); Hotel Emps. & Restaurant Emps. Union, Local 57 v. Sage

Hospitality Res., LLC, 390 F.3d 206 (3d Cir. 2004); Assoc. Builders & Contractors, Inc. v. New Castle

Township, 144 F. Supp. 3d 633 (D. Del. 2015); and Allied Constr. Indus. v. City of Cincinnati, No. 16-

4248, 2018 WL 283775 (6th Cir. 2018); and

WHEREAS, the Township finds that apprenticeship training programs which are registered with and approved by federal or state agencies, and mainta ined in accordance with regulations issued pursuant to the Fitzgerald Act, provide the most reliable means for securing a reliable supply of qualified craft labor for capital projects and further recognizes that essential levels of work quality, safety and cost-efficiency on its public works projects w ill be better achieved by requiring the use of contractors and subcontractors that participate in bona fide apprenticeship programs with a proven record of graduating apprentices and providing effective skill training in the construction industry; U.S. DEPT OF LABOR EMP'T AND TRAINING ADMIN., REGISTERED

APPRENTICESHIP FACT-SHEET 1 (2000) (workers that complet e apprenticeships are more motivated, more productive, and have lower worker compensation costs because of training programs' emphasis o n safety); PAUL M. GOODRUM, CONSTRUCTION INDUSTRY CRAFT TRAINING IN THE UNITED STATES

AND CANADA (2000) (finding that for a single capital construct ion project, each dollar invested in craft training yields a return of $1.30 to $3.00); DEBBIE REED ET. AL, AN EFFECTIVENESS ASSESSMENT AND

COST-BENEFIT ANALYSIS OF REGISTERED APPRENTICESHIP IN 10 STATES xiv (2012) (finding that the social benefit of an individual completing an apprenticeship training program exceeds the social costs by

$49,000); and

WHEREAS, the Township wishes to revise its procurement standards for public works construction to address these findings and considerations, limit project delivery risks and protect its financial and proprietary interests, and better ensure efficient procurement and successful delivery of these projects.

NOW, THEREFORE, BE IT RESOLVED that Whitpain Township is committed to addressing the challenges it faces relating to public works projects by enacting necessary and appropriate procurement legislation to protect its proprietary and financials interests and create adequate safeguards to ensure the successful delivery of such projects to the fullest extent possible.

I HEREBY CERTIFY that this Reso lution was adopted by Whitpain Township at its public meeting held on the /S-civ day of _ _,_,_1lf ...... A=tu=~oc=.,_--' 2022.

ATTEST:

polongo, Secretary

WHITPAIN TOWNSHIP

BOARD OF SUPERVISORS

Kimberly J. Koch, Chair