Not all public construction work goes through traditional competitive bidding. Bid exemptions and piggyback contracts offer alternative paths to government work. Understanding these mechanisms helps you find opportunities others might miss and positions you for work that doesn't require competing against every contractor in the market.
Understanding Bid Exemptions
What Are Bid Exemptions?
Bid exemptions are authorized exceptions to competitive bidding requirements that allow public agencies to award contracts without a full bid process. They're based on specific legal authorizations and conditions.
Common Exemption Categories
Small Purchase Thresholds
- Below certain dollar amounts, no competitive bid required
- Thresholds vary: $10,000 to $100,000+ depending on jurisdiction
- Often require informal quotes
- Most common exemption type
Emergency Situations
- Imminent threat to public health/safety
- Urgency doesn't allow normal process
- Higher-level authorization required
- Subject to post-emergency scrutiny
Sole Source Justification
- Only one source can provide goods/services
- Must be genuinely unique
- Requires written justification
- Often challenged by competitors
Professional Services
- Design and certain technical services
- Often qualifications-based selection
- Different process than construction bidding
- May lead to negotiated contracts
Specialized Equipment
- Proprietary systems
- Compatibility requirements
- Limited suppliers
- Requires documentation
Small Purchase Procedures
How agencies handle below-threshold work:
Informal Quotes
- Agency contacts selected contractors
- Requests price for defined scope
- Usually 3+ quotes sought
- Lowest quote typically wins
Rotation Systems
- Contractors on approved list
- Work rotated among qualified firms
- May be by trade or geography
- Fair distribution of opportunities
Direct Award
- Very small amounts
- Within delegated authority
- Quick turnaround
- Administrative efficiency
Getting on Quote Lists
Position yourself for informal work:
Registration
- Register with agency vendor systems
- Indicate capabilities and trades
- Provide required certifications
- Keep information current
Relationship Building
- Visit agency purchasing staff
- Understand their needs
- Respond when asked for quotes
- Deliver quality work when selected
Geographic Presence
- Local contractors often preferred
- Quick response capability
- Knowledge of local conditions
- Community relationships
Understanding Piggyback Contracts
What Is Piggybacking?
Piggybacking (cooperative purchasing) allows agencies to use contracts competitively awarded by other agencies rather than conducting their own bid process.
How It Works
- Lead agency conducts competitive procurement
- Contract includes cooperative purchasing clause
- Other agencies can use the same contract
- Same terms and pricing extend to participating agencies
- Contractor must agree to serve additional agencies
Types of Cooperative Contracts
State Cooperative Contracts
- State awards contract
- Local agencies can use
- Pre-negotiated terms
- Often for commodities
Cooperative Purchasing Organizations
- OMNIA Partners, Sourcewell, NASPO
- National or regional scope
- Competitively awarded
- Wide range of categories
Regional Cooperatives
- Groups of local agencies
- Combined purchasing power
- Regional pricing
- Shared services
Federal Contracts
- GSA Schedules
- Other federal vehicles
- Certain state/local use allowed
- Subject to specific rules
Piggyback Contract Categories
Construction-related piggyback opportunities:
| Category | Examples | |----------|----------| | Job Order Contracting | Pre-priced task order work | | Equipment | Heavy equipment purchase | | Materials | Building materials supply | | Services | Professional services, testing | | Systems | HVAC, security, communications |
Job Order Contracting (JOC)
What Is JOC?
Job Order Contracting is a competitively-awarded IDIQ contract based on unit pricing:
- Pre-priced unit costs from published guides
- Adjustment coefficients bid by contractors
- Individual job orders issued against contract
- No project-by-project bidding needed
How JOC Works
Contract Award
- Agency issues RFP for JOC contract
- Contractors bid coefficients (multipliers)
- Award based on price and qualifications
- Multi-year contract established
Project Execution
- Agency identifies project need
- Scope detailed using unit price book
- Price calculated automatically
- Job order issued if within thresholds
- Contractor executes work
Benefits for Contractors
- Steady work flow without project-by-project bidding
- Relationship development with agency
- Predictable pricing mechanism
- Multiple projects under one contract
- Less bid preparation per project
Competing for JOC Contracts
Coefficient Strategy
- Lower coefficient = more competitive
- Must cover overhead and profit
- Balance volume potential vs. margin
- Understand how coefficient affects pricing
Qualifications Requirements
- Demonstrate relevant experience
- Show capacity and capability
- Provide strong references
- Meet bonding requirements
Positioning for Exemption Work
Building Agency Relationships
Know the Buyers
- Identify procurement staff
- Understand their processes
- Learn their thresholds
- Build professional relationships
Demonstrate Capability
- Complete vendor registration
- Provide strong capabilities statement
- Offer references proactively
- Show responsiveness
Responding to Informal Requests
Speed Matters
- Respond quickly to quote requests
- Have pricing readily available
- Don't delay decisions
- Show availability
Quality Responses
- Professional quotes
- Clear scope definition
- Reasonable pricing
- Complete information
Performing Well
Execution Excellence
- Deliver what you promise
- Meet deadlines
- No surprises on billing
- Responsive communication
Building Trust
- Consistent performance
- Fair dealing
- Problem resolution
- Long-term perspective
Competing for Cooperative Contracts
Understanding the Opportunity
Volume Potential
- Multiple agencies = more opportunity
- Can be significant revenue source
- Stable, ongoing work
- Relationship building
Competition Level
- Fewer competitors than individual bids
- But winners get more work
- National or regional competition
- Significant commitment to win
Winning Strategies
Proposal Quality
- Thorough response to RFP
- Demonstrate capacity to serve multiple agencies
- Strong references from similar work
- Geographic coverage capability
Pricing Strategy
- Competitive pricing for volume
- Sustainable margins
- Consider total opportunity
- Not lowest price always wins
Service Commitment
- Show ability to serve broad geography
- Responsive customer service
- Scalability of operations
- Technology capabilities
Legal and Compliance Considerations
Exemption Legitimacy
Agencies must follow rules:
- Statutory authority: Exemption must be authorized
- Proper documentation: Justification required
- Appropriate thresholds: Dollar limits respected
- Good faith: Not manipulation of process
Piggyback Requirements
Valid piggybacking requires:
- Original competition: Lead agency competed properly
- Contract authorization: Language permits use by others
- Similar scope: Work fits contract categories
- Contractor agreement: Contractor accepts additional work
Contractor Responsibilities
Your obligations:
- Verify legitimacy: Don't participate in improper awards
- Match contract terms: Provide contracted pricing
- Document properly: Maintain records
- Meet requirements: Fulfill all contract obligations
Finding These Opportunities
Exemption Work
Where to look:
- Agency vendor registrations: Stay current
- Direct outreach: Visit agencies periodically
- Industry networks: Other contractors, suppliers
- Trade associations: Share information
Cooperative Contracts
Discovery methods:
- Cooperative organization websites: Sourcewell, OMNIA, etc.
- State procurement offices: State cooperative listings
- BidSync, PublicPurchase: List cooperative opportunities
- Agency websites: Reference cooperative contracts available
Conclusion
Bid exemptions and piggyback contracts represent significant opportunities beyond traditional competitive bidding. Small purchase work, job order contracts, and cooperative purchasing agreements can provide steady revenue streams with less bid-by-bid competition.
Success in these markets requires relationship building, registration diligence, responsive service, and quality execution. Agencies remember contractors who make their jobs easier - the ones who respond quickly, price fairly, and deliver reliably.
Invest in understanding how your target agencies use these procurement alternatives, position yourself to be their go-to contractor for appropriate work, and deliver performance that earns repeat opportunities.
ConstructionBids.ai includes JOC and cooperative contract opportunities alongside traditional bids, helping you find the full range of public construction work available.
