DATE: January 24, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Annual Agreements for Mechanical Job Order Contracting Services
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute Mechanical Job Order Contracting (JOC) Agreements with:
a. ACCO Engineered Systems, Inc.;
b. Mesa Energy Systems, Inc.; and
c. Strategic Mechanical, Inc.;
for repair, remodeling, or other repetitive work to be done according to unit prices, effective upon execution, for a term of 1 year, with each agreement’s total not to exceed $3,000,000; and
2. Approve and authorize the projects described in Attachment A, to be performed under the existing or future JOC agreements in accordance with Public Contract Code 20128.5.
REPORT
Approval of the recommended action will allow the Internal Services Department - Facility Services Division (ISD - Facilities) to fulfill department requests for heating, ventilation, and air conditioning work, utilizing Mechanical Job Order Contracts (Mechanical JOC) using ACCO Engineered Systems, Inc. (ACCO), Mesa Energy Systems, Inc. (Mesa), and Strategic Mechanical, Inc. (Strategic) for the benefit of user departments, as needed. These projects will include heating, ventilation, and air-conditioning upgrades and repairs to ventilation systems in County maintained buildings. The recommended agreements will expire in one year, or when all issued Mechanical Job Orders totaling the maximum agreement value have been completed, whichever occurs first. The second recommended item, in accordance with Public Contracts Code section 20128.5, approves the projects described in Attachment A, to be performed under the existing or future JOC agreements in accordance with Public Contract Code 20128.5. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board choose not to execute the recommended agreements, ISD - Facilities would need to increase staff, and expend staff time and resources on project development and bid solicitation, as prescribed by the Public Contract Code (PPC), on a per-job basis, as requested by departments. Your Board could disallow one or more projects on Attachment A, and instead require that project or projects be competitively bid, and not be accomplished using the recommended Mechanical JOC agreements.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum compensation for each recommended one-year agreement is $3,000,000. ISD - Facilities recovers all costs associated with these services through chargebacks to user departments. Compensation for each contract may be increased up to the sum authorized by PCC section 20128.5 (currently approximately $5,367,122). However, any increase in the maximum compensation would have to be accomplished by amending the specific contractor’s Mechanical JOC agreement, which would come before your Board for approval. Sufficient appropriations and estimated revenues have been included in ISD - Facilities Services Org 8935 FY 2022-23 Adopted Budget and will be included in future budget requests.
DISCUSSION:
PCC Section 21028.5 authorizes the Board of Supervisors to award annual agreement for repair, remodeling, and other repetitive work. Contractors are selected based on competitive bids to perform various job orders during the life of the agreement. JOC is used on a per-job basis as requested by user departments. JOC cannot be used for new construction, and is only 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 selection for each project. Each contractor will apply the various bid 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.
On October 18, 2022, the ISD - Purchasing Division released Request for Quotation (RFQ) No. 23-009 for Mechanical JOC to award annual contracts to up to the four lowest bidders. The closing date of the RFQ occurred on November 9, 2022, and the Mechanical JOC contracts were tentatively awarded to the contractors with the lowest Award Criteria Figure, which are displayed in the table on Attachment B. Award Criteria Figures are determined by totaling the four Adjustment Factors; each factor captures normal and other than normal working hours for jobs in “general facilities” and “secured facilities”.
ISD - Purchasing received three quotations by the closing date, and a tentative award was issued to each of the bidders on November 21, 2022.
Approval of recommended actions will award ACCO, Mesa, and Strategic the recommended agreements, each for a one-year term, and with a maximum compensation of $3,000,000. Approval of the recommended actions will allow ISD - Facilities to meet current departmental needs and demands for work on mechanical systems. This includes projects listed in Attachment A. The items on Attachment A include upgrades to, and full replacement of, HVAC units for multiple County buildings, including multiple Library locations, the Hall of Records, and the Plaza Building.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A - Projects
Attachment B - Award Criteria
On file with Clerk - Agreement with ACCO Engineered Systems, Inc.
On file with Clerk - Agreement with Mesa Energy Systems, Inc.
On file with Clerk - Agreement with Strategic Mechanical, Inc.
CAO ANALYST:
Ahla Yang