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HomeMy WebLinkAboutMINUTES - 12172002 - C.140 TO: BOARD OF SUPERVISORS CONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES I COSTA DATE: DECEMBER 17, 2002 COUNTY SUBJECT: ACCEPT REPORT ON THE JOB ORDER CONTRACTING +l PILOT PROGRAM AND INITIATE CONTRACT BIDDING FOR THE PROPOSED JOB ORDER CONTRACT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION 1, ACCEPT report on the proposed Job Order Contracting (JOC) Pilot Program. 2. APPROVE the JOC bid documents including the contract General Conditions, Technical Specifications, and the Construction Task Catalogue. 3. APPROVE the initial Job Order Contract in the amount of$1,500,000. 4. AUTHORIZE the Director of General Services to initiate the process for the proposed Job Order Contract. 5. DIRECT the Clerk of the Board to advertise for bids to be received on February 20, 2003. FINANCIAL IMPACT There are no initial up-front fees required to implement the JOC pilot program. The consultant retained by General Services to establish the JOC pilot program will receive a licensing fee of five percent (5%) of the first five million dollars of work that General Services authorizes under the JOC program and an additional one and one half percent (1.5%) for any authorized work over five million dollars. The licensing fee is paid as a percentage of authorized work orders on a cumulative basis. When compared with traditional bidding and contracting methods, JOC programs typically report cost savings ranging from 8% to 21%. These cost savings result from reduced time in the administration, procurement, design, and management of construction projects, including post award change orders and claims. If General Services had had a JOC program in place over the past year, it is estimated that approximately $1 million worth of building construction work could have been completed using the JOC program. Based upon this amount of work, the estimated net cost savings would have been between $30,000 and $160,000. CONTINUED ON ATTACHMENT:_14 YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD COMMITTEE "APPROVE OTHER SIGNATURES ACTION OF BOAR ON DECEMBER 17 , 2002 APPROVED AS RECOMMENDED X X OTHER VOTE OF SUPERVISORS X XJNANIMOUS(ABSENT ) AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(3137100) Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE cc: General Services Department AND CORRECT COPY OF AN ACTION TAKEN Administration AND ENTERED ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. County Administrators Office DECEMBER l� 2002 County Counsel ATTESTED , Auditor-Controller(via GSD) JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY \\GSD_FSI\VOLADM\USERSWKING\Board Orders\BO RptJOCPilotProg Auth to InitiateDec172002.doo ML:MAK Page 1 of 3 M382(10188) ACCEPT REPORT ON THE JOB ORDER CONTRACTING December 17, 2002 PILOT PROGRAM AND INITIATE CONTRACT BIDDING FOR THE PROPOSED JOB ORDER CONTRACT BACKGROUND On July 23, 2002, the Board, on referral of the Internal Operations Committee, authorized the Director of General Services to enter into an agreement with The Gordian Group to establish a JOC pilot program for the General Services Department. Since then, General Services staff and Gordian have worked with staff from the County Administrator's Office and County Counsel to develop the JOC bid and contract documents. In addition, three JOC informational meetings were conducted to inform contractors and other interested firms about the proposed JOC pilot program. The informational meetings were advertised in local newspapers, 25 plan rooms, and directly mailed to over 900 firms in the County Administrator's Office SBE Directory and the General Services Department database. The meetings were attended by 24 general contractors, 29 subcontractors, and 10 interested firms. On November 22, 2002, General Services staff provided a JOC program and implementation plan status report to the Contra Costa County Advisory Council on Equal Employment Opportunity. General Services will provide additional updates relative to the JOC pilot program to the Advisory Council as the program develops. Proposed JOC Pilot Program Public Contract Code Section 20128.5 authorizes annual job order contracts, with a maximum contract value of $3 million, for repair, remodeling, or other repetitive work on County buildings. The goals of the proposed JOC pilot program are to assist General Services to provide quality work, competitive costs, and improved responsiveness in completing small to medium-sized building construction projects, while also complying with the County's Outreach Program and SBE Program. The JOC program employs the services of a prime contractor and a network of sub-contractors expert in various building construction tasks. The annual contracts are competitively bid based on firm fixed- unit prices and indefinite quantities. Building repair, remodeling, and other construction projects are accomplished by issuance of individual work orders to the JOC contractor. The JOC pilot program proposed by General Services will utilize an extensive unit price catalog of construction tasks, pricing, and associated technical specifications that contain approximately 120,000 individual items of typical construction and maintenance. The pricing is developed in accordance with local construction costs (prevailing wages, equipment rates, material prices, etc.). The technical specifications, unit price catalog, and the JOC General Conditions are competitively bid, and an annual job order contract is awarded to one JOC prime contractor. Contractors will bid two sets of adjustment factors to the prices in the Construction Task Catalog that will be applied to the unit costs for work performed during normal business hours and for work performed outside of normal business hours. One set of adjustment factors will be for projects under $50,000 and the other set of adjustment factors for projects valued at $50,000 and above. These factors, which include overhead and profit, apply to the designated items in the Construction Task Catalog. The basis for award is the weighted average of the lowest adjustment factors. Thereafter, as individual building construction projects are identified, the County and the JOC prime contractor develop the scope of work for each individual project. All projects must meet the performance criteria, as well as the Outreach Program and SBE Program requirements, defined by the County and included in the General Conditions and specifications of the annual JOC contract. If approved by the Board, the JOC pilot program would be implemented for a period of one year from the date that the County awards the first annual JOC contract. Within the one-year trial period, the General Services Department would submit to the Board a report showing the effectiveness of the JOC program. Outreach Program and SBE Program Requirements The County's Outreach Program and Small Business Enterprise (SBE) Program requirements are part of the General Conditions for the JOC contract. General Services will work with The Gordian Group to enhance the County's existing Outreach and SBE directories from which the JOC prime contractor may choose subcontractors. Gordian also can provide software and develop a website to inform contractors of the General Services Department bidding opportunities. F:tBoard Order31BO RptJUCPitotProg Auth to Initiatebeel72002.doe Page 2 of 3 M382(10/88) ACCEPT REPORT ON THE JOB ORDER CONTRACTING December 17, 2002 PILOT PROGRAM AND INITIATE CONTRACT BIDDING FOR THE PROPOSED JOB ORDER CONTRACT Contractors, subcontractors, and other interested firms will be invited to attend JOC pre-bid informational workshops designed to distribute bid documents and assist prospective bidders on how to participate in the JOC bidding process and comply with the County's Outreach Program and SBE Program requirements. JOC Programs in Other Public Agencies Since 1985, Gordian has successfully implemented JOC programs for over 60 federal, state, and local government agencies, including agencies with Community Business Enterprise and Local Business Enterprise programs. Examples of public agencies that have established successful JOC programs include the California State Universities, the Counties of Sacramento, Ventura, San Diego, Los Angeles, San Luis Obispo, Kern and Fresno. Pilot JOC Program Implementation Schedule If the Board approves the proposed JOC pilot program and authorizes the Director of General Services to initiate the bid process, it is anticipated that the pre-bid meetings and workshops will be scheduled in January 2003, bids will be received in February 2003, and a JOC contract will be presented to the Board for recommended award in March 2003.