DATE: September 10, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
Steven E. White, Director, Department of Public Works & Planning
SUBJECT: Agreement with The Gordian Group, Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive Agreement with The Gordian Group, Inc. dba The Mellon Group, through a cooperative agreement with Omnia Partners, for consulting services, software support, and administrative services for the Job Order Contracting system, not to exceed seven consecutive years, effective April 28, 2024, through January 7, 2026, with five optional one-year extensions, total not to exceed $3,000,000.
REPORT
There is no additional Net County Cost associated with approval of the recommended action, which will allow the Internal Services Department, Facility Services division (ISD-Facility Services) and the Department of Public Works and Planning (PWP) to contract with The Gordian Group, Inc., doing business in California as The Mellon Group (Gordian), through a cooperative agreement, for consulting services, software support, and administrative services for the Job Order Contracting (JOC) system. The JOC system facilitates procurement for repair, remodeling, and other repetitive work to be done according to unit prices in an expeditious and cost-effective manner, in accordance with Public Contracts Code §20128.5. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the County would be without a JOC service administrator, as the County does not have the necessary staff or resources to run a JOC system. The County would also not have an efficient method to procure services for repair, remodeling, and other repetitive work based on pre-determined unit prices and would need to issue public bids for all required work, resulting in higher costs, increased delays, and extended timelines.
RETROACTIVE AGREEMENT:
The recommended agreement is retroactive to April 28, 2024, due to length of time required to prepare the agreement and have it approved by Gordian. Extended contract negotiations sought the inclusion of the County’s insurance terms, specifically the Technology Professional Liability and Cyber Liability clauses, and the Data Security exhibit.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum compensation for the recommended agreement is $3,000,000, funded with ISD-Facility Services and PWP revenues. The County must pay to Gordian a fee totaling 1.95% of the value of construction work awarded to JOC contractors using Gordian JOC Solution® and Gordian JOC Complete Solution®. Sufficient appropriations and estimated revenues are included in the ISD-Facility Services Org 8935 and various PWP Orgs FY 2024-25 Recommended Budgets and will be included in subsequent budget requests.
DISCUSSION:
Pursuant to Chapter 4 of the County’s Purchasing Manual, the County can join other public entities in the collective preparation of specifications and requests for quotations or proposals, and in making an award to a bidder in compliance with the requirements of the Purchasing Manual. On July 1, 2020, the Regents of the University of California, in conjunction with Omnia Partners (Omnia), a contract buying group, issued Request for Proposal (RFP) No. 002013-MAY2020 for JOC administration, maintenance, and consulting services, to establish a national cooperative contract with an initial five - year term expiring on January 7, 2026, with five potential one-year extensions. Gordian and the University of California entered into a competitively awarded agreement, contract number 2021002786 dated January 8, 2021. The Internal Services Department, Purchasing division reviewed Omnia’s RFP process, and determined that its procedures were consistent with the County’s RFP process.
Public Contracts Code §20128.5 authorizes the Board of Supervisors to award individual annual contracts for repair, remodeling, or other repetitive work to be done according to unit prices. The statute specifies that no annual contracts may be awarded for any new construction. The contracts must be awarded to the lowest responsible bidder and shall be based on plans and specifications for typical work.
Gordian’s JOC Solution system is a contracting program that assists in streamlining, tracking, and awarding local contractors to complete capital and maintenance projects. The services will include unlimited use and access to Gordian’s proprietary JOC software, eGordian (formally PROGEN), software support and training, report development and generation, document development, maintenance support, administrative support, and consulting services. The eGordian software system uses an extensive catalog of construction tasks and associated technical specifications, which contain more than 100,000 individual items of typical construction and maintenance tasks, each priced by Gordian based on current local market conditions such as labor, material, and equipment costs for the task to be performed. ISD - Facility Services and PWP use the system to competitively bid and award individual contracts for capital and maintenance service each year. The Gordian JOC Complete Solution includes consulting services supporting its Gordian JOC Solution® product. The ISD and PWP departments do not have the necessary staff or resources to run a JOC program as the JOC process requires a substantial amount of administrative time, effort, and cost. Since May 2002, the County has had multiple agreements with Gordian for JOC Consulting Services. Gordian provides JOC document and software development and testing, contract development, implementation and training, and follow-up technical support.
The recommended agreement with Gordian is effective retroactively from April 28, 2024, through January 7, 2026, with five possible one-year extensions. The initial term of the recommended Agreement has been adjusted to align with the term of the Omnia Cooperative Agreement No. 2021002786. The total compensation for the potential seven-year term is $3,000,000, which includes $550,000 for ISD-Facility Services and $610,000 for PWP for the Gordian JOC Solution services, and $1,840,000 for JOC Complete Solution services for ISD-Facility Services and PWP combined.
Approval of the recommended action will allow Gordian to continue providing JOC consulting, software support, and administrative services which will allow ISD-Facility Services and PWP to use the JOC system to facilitate procurement for repair, remodeling, and other repetitive work to be done according to unit prices in an expeditious and cost-effective manner, in accordance with Public Contracts Code §20128.5.
REFERENCE MATERIAL:
BAI #37, February 26, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with The Gordian Group, Inc.
CAO ANALYST:
Ahla Yang