DATE: January 23, 2024
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. Exbon Development, Inc.;
c. Mesa Energy Systems, Inc.; and
d. 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 $2,000,000; and
2. Approve and authorize the Director of the Internal Services Department to use annual Mechanical Job Order Contracting agreements for the implementation of the proposed projects, described in Attachment A.
REPORT
There is no additional Net County Cost associated with the approval of the first recommended action, which will allow the Internal Services Department - Facility Services Division (ISD - Facility Services) to execute Mechanical Job Order Contracts (Mechanical JOC) with ACCO Engineered Systems, Inc. (ACCO), Exbon Development, Inc. (Exbon), 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 action approves the Director of ISD to, in his discretion, use the recommended Mechanical JOC agreements to accomplish the projects described in Attachment A - Projects in accordance with Public Contract Code (PCC) 20128.5. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board choose not to execute the recommended agreements, ISD - Facility Services would need to increase staff, and expend staff time and resources on project development and bid solicitation, as prescribed by the Public Contract Code (PCC), 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 $2,000,000. ISD - Facility Services 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 $5,797,275). 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 2023-24 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. Mechanical JOC is used on a per-job basis as requested by user departments and is only used for repair, remodeling, or other repetitive work related to heating, cooling, and ventilation systems. 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 3, 2023, the ISD - Purchasing Division released Request for Quotation (RFQ) No. 24-010 for Mechanical JOC to award annual contracts to up to the four lowest bidders. The closing date of the RFQ occurred on October 24, 2023, 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. 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 four quotations by the closing date, and a tentative award was issued to each of the bidders on October 30, 2023.
Approval of recommended actions will award ACCO, Exbon, Mesa, and Strategic the recommended agreements, each effective upon execution for a one-year term, and with a maximum compensation of $2,000,000 for each agreement. This will allow ISD - Facilities to meet current departmental needs and demands for work on mechanical systems. This includes proposed projects for 2024 listed in Attachment A. The items on Attachment A include upgrades and full replacement of HVAC units for multiple County buildings, including but not limited to, multiple Library locations, the Hall of Records, and the Plaza Building.
REFERENCE MATERIAL:
BAI #34, January 24, 2023
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 Exbon Development, Inc.
On file with Clerk - Agreement with Mesa Energy Systems, Inc.
On file with Clerk - Agreement with Strategic Mechanical, Inc.
CAO ANALYST:
Ahla Yang