DATE: May 7, 2019
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Agreements for Job Order Contracting Services
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute a Job Order Contracting Agreement with Durham Construction Company, Inc., for repair, remodeling, and other repetitive projects to be done according to unit prices, effective June 5, 2019 through June 4, 2020, total not to exceed $2,000,000.
2. Approve and authorize the Chairman to execute a Job Order Contracting Agreement with Velis Engineering, Inc., for repair, remodeling, and other repetitive projects to be done according to unit prices, effective June 5, 2019 through June 4, 2020, total not to exceed $2,000,000.
3. Approve and authorize the Chairman to execute a Job Order Contracting Agreement with Haus Construction, Inc., for repair, remodeling, and other repetitive projects to be done according to unit prices, effective June 5, 2019 through June 4, 2020, total not to exceed $2,000,000.
4. Approve and authorize the Chairman to execute a Job Order Contracting Agreement with Newton Construction & Management, Inc., for repair, remodeling, and other repetitive projects to be done according to unit prices, effective June 5, 2019 through June 4, 2020, total not to exceed $2,000,000.
REPORT
Approval of the recommended actions will allow the Internal Services Department - Facility Services Division (ISD Facility Services) to fulfill Job Order Contracts (JOC) with Durham Construction Company, Inc. (Durham), Velis Engineering, Inc. (Velis), Haus Construction, Inc. (Haus), and Newton Construction & Management, Inc. (Newton), to be utilized for the benefit of all departments as needed. These agreements will expire on June 4, 2020. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board choose not to execute the agreements, ISD Facility Services would need to increase its number of staff, and expend staff time and resources on project development and bid solicitation, as prescribed by the Public Contract Code, on a per-job basis, as requested by County departments.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. ISD Facility Services recovers all costs associated with these services through charge-backs to user departments. Sufficient appropriations and estimated revenues are included in the Department’s Facility Services Org 8935 FY 2018-19 Adopted Budget. Appropriations for continued JOC services will be included in future budget requests.
DISCUSSION:
Public Contracts Code §20128.5 authorizes a Board of Supervisors to award annual JOC agreements. Contractors are selected based on a competitive bid to perform various job orders during the life of the contract. JOC is used on a per-job basis as requested by County departments. JOC is used for repair, remodeling, or other repetitive work. It offers a fixed price, fast procurement process, with the ability to accomplish an indefinite quantity of projects. This allows for savings in staff time and resources by avoiding project development and bid solicitation for each project. Although JOC Agreements cannot be used for new construction, the consolidation of procurement under JOC is an attractive option for multiple projects, as it reduces costs to the County for project development and bid solicitation. JOC procurement also allows for fast and timely delivery of projects, and tends to promote consistency, with regard both to estimating and quality of work performed.
The County issued Request for Quotation (RFQ) No. 19-043 on February 8, 2019. The purpose of the RFQ was to award an annual contract to each of the four (4) lowest responsible bidders. The County awarded contracts to the contractors with the lowest Award Criteria Figure, which are displayed in the table below. Award Criteria Figures are determined by totaling four Adjustment Factors. Each Adjustment Factor captures normal and other than normal working hours for federally funded and non-federally funded job orders. Each contractor will apply the Adjustment Factors to the tasks in The Gordian Group, Inc.’s proprietary Construction Task Catalog when submitting bids. A Construction Task Catalog is a pre-priced unit catalog of various construction tasks, which are based on local labor, materials, and equipment costs.
The County received six bids by the closing date, March 19, 2019. One (1) bid was deemed non-responsive. The following chart indicates the Award Criteria Figures for the four (4) lowest responsible bidders’ quotations:
BIDDER AWARD CRITERIA FIGURE
Durham Construction Company, Inc. 0.9370
Velis Engineering, Inc. 0.9413
Haus Construction, Inc. 1.0525
Newton Construction & Management, Inc. 1.1835
Approval of the recommended actions will award Durham, Velis, Haus, and Newton agreements, each with a one (1) year term and a maximum compensation amount of $2,000,000 for each contractor. Compensation for each contractor may be increased up to the sum authorized by the Public Contract Code Section 20128.5 (currently at $4,500,000). However, any increase in compensation would have to be accomplished by an amendment to that contractor’s JOC agreement, which would come before your Board for approval.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with Durham Construction Company, Inc.
On file with Clerk - Agreement with Velis Engineering, Inc.
On file with Clerk - Agreement with Haus Construction, Inc.
On file with Clerk - Agreement with Newton Construction & Management, Inc.
CAO ANALYST:
Yussel Zalapa