DATE: January 23, 2018
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to the Agreement with Velis Engineering, Inc. for Job
Order Contracting
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute First Amendment to Agreement No. 17-177 with Velis Engineering, Inc., to increase the maximum 1-year Agreement amount by $2,000,000, effective upon execution, for a total potential cost not to exceed $4,000,000.
2. Adopt a Budget Resolution increasing the FY 2017-18 appropriations and estimated revenues in Facility Services Org 8935 in the amount of $2,000,000 (4/5 vote).
REPORT
Approval of the first recommended action will increase the maximum agreement value from $2,000,000 to $4,000,000, and allow Facility Services to fulfill requests by departments for capital and maintenance projects in an efficient and timely manner. Approval of the second recommended action will appropriate the estimated funds necessary to meet anticipated requests. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, the County will not have sufficient means to procure design and construction services and department requests for capital and maintenance projects will be delayed.
FISCAL IMPACT:
There is no increase in Net County Cost related to this item. Initial funding for any work covered under this agreement will come from Facility Services Org 8935 and other sources, depending upon the nature of the work to be performed. Departments must have sufficient allocations and appropriations to cover the cost of work requested before work is initiated. The first recommended action increases the potential maximum agreement cost to $4,000,000. Approval of the second recommended action will increase the FY 2017-18 adopted appropriations and estimated revenues by $2,000,000 for Facility Services Org 8935 for capital and maintenance projects.
DISCUSSION:
Job Order Contracts (JOC) are annual contracts that are permitted under the California Public Contract Code to allow local agencies to procure competitively bid maintenance and repair work on a significantly expedited basis rather than using traditional informal and formal bidding procedures. The County utilizes the JOC procurement method for a variety of projects related to design and construction services.
A built-in advantage is the incentive for construction contractors to perform quality and timely work to receive additional job orders, which are issued at the sole discretion of the County. The JOC program has been a successful contracting tool for maintaining facilities because of its flexibility and streamlined ordering process.
On May 2, 2017, your Board approved Agreement 17-177 with Velis Engineering Inc., for capital and maintenance projects. The approved agreement was for a one-year term at a maximum value of $2,000,000. The maximum agreement value may be increased up to the sum authorized by the Public Contract Code Section 20128.5 (currently $4,500,000). As a result of maintenance projects, repairs, and upgrades, the contract will soon reach the maximum agreement value. Due to anticipated future requests, the Department is requesting the maximum agreement value be increased to $4,000,000.
Approval of the first recommended action will increase the maximum agreement value from $2,000,000 to $4,000,000. Approval of the second recommended action will appropriate the estimated funds necessary meet anticipated requests.
REFERENCE MATERIAL:
BAI #30, May 2, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agreement 17-177
On file with Clerk - Resolution
CAO ANALYST:
John Hays