Watch millions of dollars sashay away after local contractor loses bid

Eric Sletten was surprised recently to learn he doesn't live here.

The building executive was downright shocked to hear his family's contracting business, Sletten Construction, maintained minimal ties to the community. At least, that's what State Public Works Manager Gustavo "Gus" Nunez would have KNPR "State of Nevada" radio listeners believe.

Earlier this year, Sletten Construction placed an unsuccessful bid on the preliminary management contract for the state's $230 million construction project at High Desert Prison near Indian Springs. At its peak, as many as 500 construction workers will be employed there, and in a recent column I argued that the state should take every reasonable step to ensure a job of that scale goes to a Nevada firm. In tough economic times, I believe it's flat wrong to let big contracts to out-of-state companies without ties to our community.

When Sletten and McCarthy Construction were underbid by Salt Lake City-based Layton Construction, the Southwest Regional Council of Carpenters in late April issued a bruising letter protesting the award to the out-of-state contractor, which often works in Nevada but maintains no office here.

Although on the May 30 radio broadcast Nunez acknowledged the importance of keeping Nevada construction workers on the job, he offered, "However, as I indicated, all three firms, we advertised for this project, and all three firms that applied are from out of state."

While historically accurate, Nunez's statement was laughably disingenuous and misleading. Although Sletten Construction began building homes and businesses in Great Falls, Mont., some 80 years ago and maintains a corporate home office there, Robert Sletten opened his Las Vegas office in 1963. That office has remained open.

Does a 45-year business relationship with a community qualify as local?

It should.

No matter how you carve it, four and a half decades should certify Sletten as an in-state contractor in the eyes of Nevada's public works manager. But apparently not.

"We've held a continuous office in Nevada since 1963," company President Eric Sletten said after reviewing the radio broadcast. "I've been a Nevada resident for 13 years."

Layton keeps an "office" phone line in a local construction trailer, but has never had an office here. Although it had performed on some big projects, as of May, it didn't qualify for a Nevada contractor 5 percent bidder's preference.

Not even Layton Vice President Bruce McDonough was overly confident the company would open an actual Las Vegas office any time soon.

"Probably," he said, "but who knows?"

This is not to slight Layton's ability to do the job. It underbid Sletten by $2 million and has built a long list of successful projects, including several in Nevada over the past 20 years.

McDonough said he believed the union's protest was leveled in large part because Layton works with nonunion subcontractors. He assured the site would be "open" to union and nonunion outfits alike.

But Layton officials admitted that about 25 percent of the job's employees probably will come from out of state. Add to that the fact it has a long working relationship with two Utah-based subcontractors who also work in Las Vegas, and you potentially have a sizable amount of that $230 million contract flowing out of state during a turbulent economic climate.

"I was taken aback by the fact the state wouldn't understand we are a Nevada contractor," Sletten said. "Every person that would be on that job would be a Nevada resident. Our management group doesn't come from out of state to do a job and then leave. Every person we have is a Nevada resident. They hold Nevada driver's licenses. They pay taxes in Nevada. Our money stays in Nevada."

That includes its charitable contributions. Sletten said he's proud of his company's long-term commitment to the Andre Agassi College Preparatory Academy and the UNLV scholarship program.

Sletten will continue to give despite losing a bid on the largest public construction project in the state. It will continue to bid jobs as it has since 1963.

Meanwhile, the Salt Lake City-based contractor couldn't be more pleased with its winning proposal in Nevada.

"We consider Nevada home," Layton's Allan Rindlisbacher told radio listeners. "The only thing that separates us is a state line."

Maybe one day they'll even open an office here.

John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295.