DATE: June 5, 2018
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Agreements with Durham Construction Company, Inc., Haus
Construction, Inc., Puma Construction Co., Inc., and Velis Engineering,
Inc. for Job Order Contracting
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize Chairman to execute a Job Order Contracting Agreement with Durham Construction Company, Inc., for County property capital and maintenance projects, effective June 5, 2018 through June 4, 2019, in an amount not to exceed $2,000,000 (minimum of $25,000 guaranteed).
2. Approve and authorize Chairman to execute a Job Order Contracting Agreement with Haus Construction, Inc., for County property capital and maintenance projects, effective June 5, 2018 through June 4, 2019, in an amount not to exceed $2,000,000 (minimum of $25,000 guaranteed).
3. Approve and authorize Chairman to execute a Job Order Contracting Agreement with Puma Construction Co., Inc., for County property capital and maintenance projects, effective June 5, 2018 through June 4, 2019, in an amount not to exceed $2,000,000 (minimum of $25,000 guaranteed).
4. Approve and authorize Chairman to execute a Job Order Contracting Agreement with Velis Engineering, Inc., for County property capital and maintenance projects, effective June 5, 2018 through June 4, 2019, in an amount not to exceed $2,000,000 (minimum of $25,000 guaranteed).
REPORT
The County utilizes the Job Order Contracting (JOC) procurement method for performance of construction services on small and medium size projects involving repair, remodeling and similar type work, utilizing a published unit price book in accordance with the provisions of Public Contract Code Section 20218.5. Although JOC Agreements cannot be used for new construction, the consolidation of procurement under JOC is an attractive option for multiple small and medium size projects of this type, 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. Approval of the recommended actions will allow the County to enter into one-year agreements with Durham Construction Company, Inc., Haus Construction, Inc., Puma Construction Co., Inc., and Velis Engineering, Inc.
ALTERNATIVE ACTION(S):
Should your Board choose not to execute the agreements, the County would then need to expend staff time and resources to develop plans and specifications for each individual project, advertise for bids, conduct bid evaluations, and complete the contracting or award process through the methods prescribed by the Public Contract Code, as appropriate to the size of the project.
FISCAL IMPACT:
Work performed under JOC agreements are on a per-job basis as requested by County departments, therefore, there is no increase in Net County Cost from use of these agreements to the Internal Services Department, Facility Services Division Org 8935. Initial funding for any work covered by these agreements will come from Facility Services Division 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. If additional appropriations are required, staff will return to your Board for approval.
DISCUSSION:
The County utilizes the JOC procurement method for performance of construction services on a variety of projects involving repair, remodeling and similar type work. For each project, the County issues a request for proposal which articulates the required scope of work to one of the awarded JOC Agreement contractors. Standard pricing and specifications for each project utilize the Construction Task Catalog created by the Gordian Group’s published unit price book. This results in efficient and effective estimating, design, and fixed price construction. It also helps to ensure consistency in quality. The JOC contractor prepares an estimate based on the Construction Task Catalog’s unit prices and the adjustment factors provided in the bid. If the County’s representative is satisfied with the contractor’s proposal and believes it represents an accurate estimate for the scope of work, then a fixed price, lump sum work order is issued to the contractor. The work order serves as the contractor’s notice to proceed.
The consolidation of procurement for multiple projects under one JOC reduces the time and cost for developing and soliciting bids for multiple small and medium size projects. With the JOC system, projects can be assigned directly to the JOC contractor. This procurement method facilitates fast and timely delivery of projects.
Request for Quotation (RFQ) #18-022 was issued by the County on January 29, 2018. The purpose of the RFQ was to award one contract to each of the four lowest responsible bidders. Seven bids were received on the March 9, 2018 closing date. Two bids were deemed non-responsive.
The following chart indicates the four (4) lowest responsible bidders’ quotations:
|
Bidder |
|
Award Criteria Figure |
|
Velis Engineering, Inc. |
|
0.8513 |
|
Haus Construction, Inc. |
|
0.8601 |
|
Durham Construction Company, Inc. |
|
0.9698 |
|
Puma Construction Co., Inc. |
|
1.1880 |
Based on the weighing factors prepared to evaluate the responses, it is recommended that your Board approve the recommended actions.
The Maximum Agreement Value may be increased for each of these agreements by up to the sum authorized by the Public Contract Code Section 20128.5 (currently $4,500,000). Should that be necessary, staff will return to your Board recommending an increase in the Agreement maximum for that contractor. The proposed agreements with Durham Construction Company, Inc., Haus Construction, Inc., Puma Construction Co., Inc., and Velis Engineering, Inc., guarantee each Contractor receives a minimum value of total work of $25,000, up to a maximum potential value of total work of $2,000,000. The terms of the agreements are for one year or when issued job orders totaling the Maximum Agreement Value have been completed, whichever occurs first.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with Durham
On file with Clerk - Agreement with Haus
On file with Clerk - Agreement with Puma
On file with Clerk - Agreement with Velis
CAO ANALYST:
Juan Lopez