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HomeMy WebLinkAboutMINUTES - 07282015 - C.46RECOMMENDATION(S): APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a Consulting Services Agreement with The Gordian Group, Inc. d/b/a The Mellon Group ("Gordian") in an amount not to exceed $500,000, to provide Job Order Contracting Program development and implementation services for various County projects for the period from July 28, 2015 through July 28, 2018, which may be extended to July 28, 2020, if elected by the Public Works Director. FISCAL IMPACT: There are no upfront costs to develop the job order contracting program. Gordian charges a 5% License and Job Order Development Fee if and when a job order is issued to a job order contractor, based on the value of the work. BACKGROUND: On March 31, 2015, the Public Works Department participated in a County Building Infrastructure Workshop before the Board. At that time, Capital Projects and Facilities Maintenance staff were reviewing the recommended priority APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/28/2015 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor ABSENT:Federal D. Glover, District V Supervisor Contact: Ramesh Kanzaria, (925) 313-2000 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: July 28, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: PW Accounting, PW CPM Division Manager, PW CPM Clerical, Auditor's Office, County Counsel's Office, County Administrator's Office, County Administrator's Office C. 46 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:July 28, 2015 Contra Costa County Subject:Consulting Services Agreement with The Gordian Group, Inc. for Job Order Contracting Program Development and Implementation Services BACKGROUND: (CONT'D) projects from the 2014 assessment of 81 buildings at 48 sites to present the list of projects to be funded with Facilities Life-Cycle Investment Program (FLIP). On May 12, 2015, the Board approved the FLIP project list for the Fiscal Year 2015/2016. In order to be efficient in delivering projects the County will need to employ a variety of project delivery methods. Certain County repair and remodeling work is performed by County staff, but many projects are bid out through using both informal and formal bidding processes. More complex projects are managed by project managers. The County does not currently use job order contracting and Capital Projects and Facilities Maintenance staff recommend moving forward to implement this project delivery tool. California Public Contract Code Section 20128.5 provides that counties may award individual annual contracts, none of which shall exceed $3,000,000, for repair, remodeling, or other repetitive work to be done according to unit prices. No job order contracts may be awarded for any new construction. This is commonly referred to as job order contracting (“JOC”). A job order contract is a contract that lasts for a fixed term or until the maximum dollar amount of the contract has been expended, whichever occurs first, in which a contractor is selected based on a competitive bid to perform various separate job orders in the future, during the life of the contract. Procurement for job order contracts must still follow the requirements of California Public Contract Code section 22030 et seq.. Job order contracts are typically used for well-defined, recurring or repetitive work where quick execution is essential. It is an appropriate delivery method for any type of repetitive work, especially small renovation jobs. It allows for a longer relationship with the selected contractor as various job orders issued under the contract are performed during the contract term. Because the contractor has been selected and the unit price is fixed (by the project task catalog and the contractor’s adjustment factor), a job order contract allows contractor input prior to design, which can expedite the work. Currently, twenty California Counties have implemented JOC programs including the nearby counties of Alameda, Sacramento, San Francisco, San Mateo, Santa Clara, Sonoma, and Solano. In addition, more than 200 public agencies throughout the United States and Canada are utilizing JOC - these include federal agencies such as the U.S. Department of Defense, and state agencies such as the University of California and California State University systems. JOC has proven to reduce costs, save time, and increase productivity for agencies that utilize JOC as part of their project delivery strategy. The Contra Costa County Board of Supervisors previously approved the use of job order contracting in 2002. From 2002 to 2010, the County successfully utilized JOC as a responsive contracting technique for the accomplishment of maintenance, repair, and remodeling projects totaling more than $15 million. On June 11, 2015, the Public Works Department published a Request for Letters of Interest, seeking letters from firms to furnish, implement, and assist in executing and managing an Indefinite Quantity Contracting/Job Order Contract automated system. One letter was received by the July 7, 2015 deadline from The Gordian Group, Inc. d/b/a The Mellon Group. County staff therefore recommends that the County procure Gordian's services through a Consulting Services Agreement. Gordian's services will include the development and maintenance of a job order contract catalog, also known as a unit price book that contains individual construction tasks for all aspects for general conditions, maintenance, repair and construction of facilities, roads, parking lots, and other construction-related components used by the County. Gordian will also provide training and support to Contra Costa County personnel and contractors for the implementation and success of the JOC program. The JOC program would be implemented for work potentially at any County-owned facility, County-leased facility, or County infrastructure project. CONSEQUENCE OF NEGATIVE ACTION: If the County is unable to procure the services provided by Gordian, we cannot implement the JOC program. The County does not have the resources to complete high priority projects as described in the FLIP report or as required by unforeseeable emergency needs.